Nuclear Lives

Having trouble viewing this issue? Click here. Refer a Friend to Energy and Capital.

Nuclear Lives By Nick Hodge | Tuesday, July 26th, 2011 So you think the disaster at Fukushima has nuclear energy on the ropes in the energy heavyweight title bout... You say this is the event that finally changed global opinion. You point to Germany and its plan to close all nuclear power plants by 2022... And you sound like an optimistic young child. The truth is the events in Japan didn't deliver a death knell. To the contrary, they inspired a new dedication to build safer, more sustainable nuclear plants. Don't get caught up in the “this is the end of nuclear” hype. You'll miss out on some serious profits. Advertisement China's Drooling Over This The energy industry has never seen anything like it... The big financial institutions don't even know it exists yet... One man — and a single $22 million mining company — are about to reset the world's energy clock. Be there when it happens. Addressing Germany Yes, Germany voted to phase out all 17 of its nuclear plants by 2022. I did some math, and I found out that means another decade worth of nuclear operation there. After I did that math, I figured I'd keep going... There are 441 nuclear reactors in the world. Germany's 17 gives them 3.8% of the world total — hardly industry-ending stuff. And once I knocked out that complex equation, I did another... There are currently 60 reactors being built worldwide, none of which have been canceled as a result of Fukushima. It was difficult, but I determined that's enough to offset Germany's eventual loss 3.5 times over. And companies operating in Germany are already picking up business elsewhere. Hitachi is filling the void by committing to projects in other areas. It's just submitted a proposal to Lithuania, which is still desperately seeking nuclear. I think Prime Minister Andrius Kubilius was looking right at Merkel when he uttered: For Lithuania and the whole region it is important to have independent capacity to generate electricity. We are choosing a path that we believe is the best for Lithuania and for the whole region. And then there's all this... It's Relatively Safe Compared to other mainline fuels, nuclear actually offers a pretty safe track record. The human brain has evolved to latch on to big events and not the mundane. So one explosion in the Ukraine with 31 direct deaths resonates more than the 500,000 people per year in China whose deaths are attributed to coal pollution. Human thought and decision-making expert Seth Godin crunched the numbers on deaths per fuel by terrawatt-hours generated. You can find the full rationale and data here, but this was the ultimate result: Nuclear  even came out safer than hydro and rooftop solar. The IEA Says So Every year, the International Energy Agency releases its World Energy Outlook. The 2012 edition is due out in November, but Executive Director Nobuo Tanaka (who I've spoken to directly at private conferences) recently appeared before the European Parliament to give a preview. I wasn't there, so I'm going to give you the summary from New Europe, which has been covering the bloc since it was created in its current form in 1993. According to them, the IEA will tell the world in November it: ... expects that nuclear power plants (NPPs) currently under construction will stay on track, while older plants will be decommissioned. However, the political debate is proving detrimental only in OECD countries, which are more likely to reduce the use of atomic energy, while others such as China, will remain determined to exploit it. Tanaka added that a complete phaseout of nuclear power would create enormous risks for Europe’s energy security. Advertisement The Piece of Paper that Solved the Energy Crisis I don't blame you if you think this sounds far-fetched... If I hadn't seen it with my own eyes, I wouldn't have believed it, either. But once you take a peek at the technology, the prestigious award it's been presented, and the reasons it could make you rich... I have no doubt you'll change your mind.  No Caution Flag But the most convincing evidence the nuclear industry will keep on chugging is the fact that the nuclear industry has kept on chugging. Construction on new plants in the United States continues to move forward, with two scheduled to come online in Georgia in 2016. Westinghouse says its first AP1000 reactor is scheduled to come online in China by 2014, at the latest. China currently has 10.8 gigawatts of nuclear; the goal is 80 GW — a 640% increase — by 2020. Indian President Pratibha Patil flew to South Korea this week and signed a nuclear cooperation agreement. Keep an eye on Korea Electric Power (NYSE: KEP) as it makes more connections like this. India currently has 20 reactors, but wants to double that in the next two decades. Necessity and Innovation And, of course, let us not forget about the mother of all invention. Dealt a serious blow of lemons, the global nuclear industry is adding sugar and water. In the United States, the Nuclear Regulatory Commission has already formed a task force to identify possible safety improvements. They've already made improvement recommendations, like having greater levels of backup power, better ventilation, and cooling spray for spent fuel, that could start to be enacted as soon as November. To prove its nuclear ambitions haven't been muted, China is continuing with advanced research at its Institute of Atomic Energy. Last week, it announced it's hooked up a “fast breeder” reactor to the power grid outside Beijing. The advantage of a “fast breeder” reactor is that it produces more plutonium than it needs to run while reducing radioactive waste. Only eight countries have developed this type of reactor, and this latest nuclear advancement came after it learned how to reprocess spent fuel in a reactor this past January. These advancements are without mentioning things like modular reactors and new fuel additives (specifically beryllium, which I'll be telling you more about shortly) that will make nuclear safer and easier to deploy in a world that facing larger and larger gaps between energy demand and supply... Allow me to make a statement without any qualifiers: The nuclear industry is not dead. I've talked to some insiders who see uranium supply problems by the end of the year. The time to buy is now, while the sheeple still think Germany's on to something. Start with currently undervalued uranium stocks like Uranium Energy (AMEX: UEC) and Uranerz (AMEX: URZ), and keep an eye out for the new nuclear report I'll be issuing shortly. Call it like you see it, Nick Hodge Editor, Energy and Capital Related Articles Nuclear Investing Nuclear Commitment Pentagon: Oil Supply Disruption Plausible and Likely Invest In Materials of the Future Today From the Archives... Game Changer: The 600-Mile Electric Car 2011-07-25 - Jeff Siegel Uruguayan Agricultural Landholder Goes Public 2011-07-25 - Brianna Panzica Energy and Capital's Weekend Edition 2011-07-23 - Nick Hodge High Demand Strains Power Grid 2011-07-22 - Brianna Panzica When Big Oil Packs Up and Goes Home 2011-07-22 - Keith Kohl Economic Releases for the week of Monday, July 25th, 2011: Jul 26 - Case Stiller 20 City Index Jul 27 - MBA Mortgage Purchase Index Jul 29 - Chicago PMI Jul 26 - Consumer Confidence Jul 28 - Pending Home Sales Jul 26 - New Home Sales Jul 27 - Durable Orders Jul 27 - Fed's Beige Book Jul 29 - Michigan Sentiment Brought to you by Wealth Daily

You can manage your subscription and get our privacy policy here. Energy and Capital, Copyright © 2011, Angel Publishing LLC, P.O. Box 84905, Phoenix, AZ 85071. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of Angel Publishing may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription.