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EnigmaDude (87.04)

going nuclear

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December 07, 2011 – Comments (8) | RELATED TICKERS: GHM , EXC , DUK

Nuclear power in the USA is making a comeback.  Did you know that the USA is the world's largest producer of nuclear power,  accounting for more than 30% of worldwide nuclear generation of electricity!

The country's 104 nuclear reactors produced 807 billion kWh in 2010, over 20% of total electrical output. 

And did you know that at least 4-6 new nuclear reactors in the US are either under construction or planned for construction?

Following a 30-year period in which few new reactors were built, it is expected that 4-6 new units may come on line by 2020, the first of those resulting from 16 licence applications to build 24 new nuclear reactors made since mid-2007. 

And did you know that the federal government is encouraging this expanded growth of nuclear energy?

Government policy changes since the late 1990s have helped pave the way for significant growth in nuclear capacity. Government and industry are working closely on expedited approval for construction and new plant designs. 

There has also been consolidation in the industry, narrowing the playing field.  For example, in January 2011 Duke Energy agreed to purchase Progress Energy, and after shareholders in both companies overwhelmingly approved, this $26 billion deal is likely to be finalized by the end of the year. The combined company will operate 12 power reactors, the largest regulated nuclear fleet in the USA.

I am personally not a fan of nuclear energy and glad that most facilities are not anywhere near Colorado (where I live), however, it seems to me that some businesses involved in the nuclear sector could benefit substantially from this renewed emphasis on nuclear power. 

8 Comments – Post Your Own

#1) On December 07, 2011 at 1:28 PM, miteycasey (31.29) wrote:

How are you going to plug in your electric car without nuclear energy?

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#2) On December 07, 2011 at 5:10 PM, ContraryDude (32.42) wrote:

I'm thinking of starting a company to make little rooftop solar panels for electric cars to act as mobile charging stations.  I'm betting on a $500M grant from the government for seed capital.  Who's interested in getting in on that action?

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#3) On December 07, 2011 at 5:38 PM, selfdestruct2 (39.56) wrote:

What's your opinion on UEC ?

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#4) On December 07, 2011 at 5:53 PM, EnigmaDude (87.04) wrote:

I have not done a lot of research on UEC but I do think that uranium demand in general will be rising for the next 10-20 years.  One article I read had this to say:

China is in the process quadrupling its uranium consumption to 50 million-60 million pounds a year, and says it plans to build 10 nuclear power plants a year for the next decade.

So UEC may very well be a good bet if you can ride out the ups and downs that are likely to occur as nuclear energy goes in and out of "vogue". They may also be an acquisition target.

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#5) On December 07, 2011 at 8:18 PM, devoish (98.05) wrote:

Wow.  Very impressive.

In just the last two months, about 7,000 megawatts of new solar projects were added to the U.S. pipeline. That’s the equivalent of seven nuclear reactors, which is seven more than we’ve built in the last three decades. And that doesn’t include residential projects, like the unprecedented “Solar Strong” effort to install photovoltaic panels on 160,000 rooftops on military housing that was just announced last week. The U.S. solar market doubled last year, and it’s expected to double again this year, even though many states are reducing their subsidies. How many other industries are growing that fast in this economy?

Best wishes,

Steven

PS. Fukushima.

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#6) On December 08, 2011 at 10:18 AM, EnigmaDude (87.04) wrote:

Steven,

Why be so antagonistic?  I was merely making an observation that could have investment potential.  This is not an endorsement of nuclear power.  Did you miss the part where I said, I am personally not a fan of nuclear energy?

I think solar has its place in both energy production and possibly as an investment.  But this blog is about nuclear power.  If you don't like it, don't invest.

Best wishes to you as well.

EDude

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#7) On December 11, 2011 at 9:33 AM, devoish (98.05) wrote:

Enigma,

That was not "so antagonistic", certainly not by the standards of civility you didn't call out on Travis' anti nuclear post.

I apologise though, for using sarcasm to make the point that if nuclear is an investing opportunity based upon its pipeline, using that criteria solar is a better one.

This blog is also about energy; nuclear, solar, gas, wind, wave, tidal, coal, oil, efficiency, etc.

There is one thing that is 100% certain about nuclear energy. There will be more accidents and some of them will be big. The same is true of oil, which is also a carbon spill intended to happen, even if everything goes right. Solar panels will have accidents too, and break and release there components into the air and onto the ground too.

Solar will not cause an evacuation of 1800 square miles and leak waste into the oceans for decades to come though.

Best wishes,

Steven

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#8) On December 20, 2011 at 10:12 AM, EnigmaDude (87.04) wrote:

fwiw - The writers at Smart Money agree with me.  I wrote this blog before I received the December issue.  In the cover story on where to invest in 2012 the author suggests Exelon for many of the same reasons that I mention here as well as the fact that they currently pay a 5% dividend.

Or you could go with solar stocks - CSIQ is up big today!

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