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Could Nuclear Be the Answer?

Written by Monica Savaglia
Posted March 22, 2022

You might remember me writing about nuclear energy a few weeks ago. If not, you can read it here

I wanted to get back on the topic today. I believe it’s an important one for you to be aware of, especially with what’s going on in Ukraine. It’s been almost a month since Russia made its brutal invasion into Ukraine. It’s been a war that Russia probably didn’t believe it would be fighting for this long. Russia's actions have had consequences. Most of the world and world leaders have condemned Putin’s decision to invade Ukraine. 

Many governments and businesses around the world have placed sanctions on Russia or removed their businesses from the country, all in hopes to hurt Russia financially so it will be forced to leave Ukraine and end its war. 

However, many European countries are dependent on Russia’s oil supply, which puts them in a dilemma. They need to supply their countries with oil or else their people will be the ones that are affected, but if they continue to buy oil from Russia, that means they're funding Russia. This situation has forced these countries and their governments to acknowledge that finding energy alternatives will need to happen fast.

This is not only because they don’t want to be funding a country that believes invading another country is OK, but also because being dependent on one source for energy isn’t the most feasible option anymore. There should be more options so if a situation like this happens again, a country can have energy alternatives or even have the option of relying on itself.

Removing the Dependency

Russia’s invasion has driven the European Union (EU) to try to reduce the dependency that it has on fossil fuels from Russia. Russia supplies 40% of the EU’s gas, 27% of its oil imports, and 46% of its coal imports. According to the think tank Forum Energii, Russia provides about 55% of Poland's gas imports, 66% of its oil imports, and 75% of its imported coal.

For example, Poland has been focused on reducing those percentages to meet the EU’s target to cut emissions by 55% by 2030. Now the country is even more focused on finding energy alternatives and has been exploring its nuclear options. Poland's Ministry of Energy expects the country to have 10% of its power generation coming from nuclear power by 2043. 

Nuclear energy has become the main focus for many countries including the U.S. In the past (and recently), nuclear energy has been something that many countries and governments have diverted their attention away from, mostly because of disastrous accidents that have happened in the past with nuclear power plants.

However, the Russia-Ukraine conflict has brought to the surface some very important issues on fuel dependency.

Even the United Kingdom is targeting a “nuclear renaissance” as one way to cut off reliance on oil and gas overseas. Downing Street said Prime Minister Boris Johnson believes that nuclear power is "absolutely crucial to boosting U.K. energy security and independence as we move away from Russian hydrocarbons and foreign fossil fuels."

Nuclear power could be the opportunity to redefine how the world gets its energy. Countries will no longer have to be dependent on only one country for their energy supply.

John Kotek, senior vice president for policy development and public affairs at the Nuclear Energy Institute, said:

People realize that nuclear can play a really valuable role in energy security.

Kotek added:

If nuclear were to somehow, you know, be taken off the table or support for it was withdrawn, that’s going to further undermine energy security in Europe, here in the U.S., and beyond, and really plays into the hands of those who want to use energy as a weapon. 

Will Nuclear Be the Answer?

Some people still believe that nuclear technology is dangerous because of the historic nuclear disasters that occurred at Chernobyl and Fukushima. However, that was the past, and there’s a whole new future for nuclear and nuclear technologies. Nuclear has evolved since those disasters and the latest innovations have been able to make nuclear reactors smaller and possibly even safer.

One way is with small modular reactors (SMRs). While these reactors are smaller, they still pack a lot of power. SMRs typically produce 300 megawatts of electricity or less. An SMR can power approximately 1 million homes and can be assembled in factories and transported on trucks. Because the reactors are smaller, they can be delivered quickly and could have less of an impact on local communities if something were to happen.

According to the U.S. Office of Nuclear Energy:

Advanced SMRs offer many advantages, such as relatively small footprints, reduced capital investment, ability to be sited in locations not possible for larger nuclear plants, and provisions for incremental power addition. SMR also offer distinct safeguards, security, and nonproliferation advantages.

Without a doubt, SMRs and nuclear energy are gaining a lot of traction right now. Even the Biden administration has been bullish on nuclear, with more than 70 projects currently underway in the U.S. That’s why my colleague Jason Williams has been working tirelessly on a way that investors like yourself can take advantage of the increasing interests in nuclear. And to no surprise, he found one

I don’t want you to miss out on this. As I mentioned earlier, nuclear has become an even bigger topic in the past month and I believe that it’s going to become even more important in the next few years and decades to come. That's why I need to share with you the rare opportunity that Jason found...

Check out his exclusive report here.

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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