S M R 'S \\/// 3-mile island \\/// Uranium bears have been playing the “I told you so” game most of the year, but they’re about to get crushed.
You see, early this week, uranium prices inched up after Constellation Energy (NASDAQ: CEG) announced a
20-year power purchase agreement with Microsoft (NASDAQ: MSFT) to restart one of the units at Three Mile Island.
As a child of the 80s, I remember learning about the partial meltdown at Three Mile Island.
Of course, the nuclear power plants back then were a lot different than what we have today. And that makes all the difference.
Better than Uranium Stocks
20 years ago, re-opening Three Mile Island wouldn't have even been a remote possibility. Not just because the fear of meltdowns still remained strong with those who were alive when the Three Mile Island accident happened. But because nuclear power technology wasn’t much different than it was when Three Mile Island was first commissioned in 1974.
To this day, I still have concerns about these old nuclear power plants. Not because nuclear fission is inherently unsafe. But because people are. Poor planning, lax policies, and sub-par safety procedures are the result of human error.
I’ve even written about my disinterest in nuclear power in the past. But that has changed for two reasons:
Given the increased demand for electricity as a result of AI, crypto, and energy-intensive data centers, the world simply can no longer operate without a larger contribution from nuclear power. It’s quite literally impossible.
Today’s modern nuclear power plants are so far advanced compared to those of the 1960s and 1970s. It’s barely the same technology.
Point #2 is particularly true when you recognize that the future of nuclear power is not in traditional power plant technology. But instead, SMRs. Also known as Small Nuclear Power Plants.
SMRs are, without a doubt, the future of nuclear power technology, for a number of reasons.
You see, compared with traditional reactors, these SMRs are:
Smaller — SMRs only need about 17 acres of land space compared to the 640 acres typically needed for a traditional reactor plant...
Cost-efficient — SMRs come at a fraction of the cost, with an estimated price tag of $303 million compared to the hefty $5.5 billion investment required for a traditional nuclear plant...
Low maintenance — SMRs are designed to operate for up to 30 years without the need for refueling, in stark contrast to traditional nuclear plants that must be refueled every 1–2 years.
Safer — SMRs are equipped with advanced safety features, operating at much lower temperatures to prevent risks such as meltdowns and explosions...
Flexible in terms of their location — SMRs can be built closer to where energy is needed, reducing power transmission losses and the likelihood of energy outages compared to traditional nuclear power plants.
For energy-intensive industries, like AI for instance, companies can integrate SMRs directly into their operations.
In fact, some of the richest tech billionaires focused on AI right now have already invested in these SMRs. And they’ve collectively ponied up billions.
Bill Gates has raised $830 million to build an SMR called the "Natrium" facility in Kemmerer, Wyoming.
Open AI CEO, Sam Altman invested $375 million into a firm called Helion Energy.
Peter Thiel joined Altman on that venture by the way, and put up $500 million of his own money, and Jeff Bezos is in for $130 million.
To date, there are 65 SMR nuclear plants in development across the globe. And there are more coming.
So as you can imagine, not only are we bullish on uranium stocks, given the increased demand for nuclear power, but we’re also extremely bullish on a new type of nuclear fuel that SMRs need to operate. Because that, dear reader, is the sweet spot. Particularly in this case, where we’ve identified a company that holds a monopoly on the essential fuel tech required for SMRs to operate.
It’s already secured a partnership with the Department of Energy to expedite the deployment of SMRs. And thanks to its breakthrough technology, AI firms in particular, can now tap directly into nuclear energy. Even bypassing the traditional hurdles of decades of development and billions of dollars in investment typically associated with building power plants.
As well, it paves the way for the potential construction of hundreds, possibly even thousands, of nuclear facilities nationwide. All at a fraction of the usual cost and in a fifth of the time typically required.
Our in-house nuclear power guru Keith Kohl just published a new report outlining his case for SMRs. And more importantly, this one company that holds the key to SMR development across the globe.
AI
