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                                             Stock Market News updates            Dated:-23-11-2024

Nuclear power in the United States is expected to increase significantly in the future due to two main factors: localizing the supply of enriched uranium and increasing domestic capacity.

Daiwa Capital Markets claims that these advancements have the potential to transform the energy landscape and open up billions of dollars in new markets.

 

Nuclear apparatus

The US Department of Energy (DOE) wants to install 35 gigawatts (GW) of additional nuclear power by 2035, a 36% increase from 2023 levels, according to Daiwa's research note to clients. According to reports, this is a component of a larger goal to triple capacity by 2050, which was declared during COP29.

 

According to the company, reaching this milestone will necessitate 15 GW of yearly additions starting in 2040, helping to meet net-zero emissions targets. According to Daiwa, makers of nuclear power equipment stand to gain $101 billion from this growth trajectory.

With the United States aiming to build 35GW of capacity by 2035, Daiwa thinks the "long-term growth narrative [is] reaffirmed; a USD101bn market to be unlocked."

They go on to say that, considering the estimated $6,041 per kilowatt capital cost, businesses including GEV, BWXT, and Fluor (NYSE:FLR) are well-positioned to gain.

 

Uranium that has been enriched
The company points out that efforts to localize the supply of nuclear fuel have accelerated after Russia has counter-banned enriched uranium exports to the US.

According to reports, 44% of the world's uranium enrichment capacity is currently in Russia. Domestic demand for enriched uranium is down 27% as a result of the US ban on Russian uranium, which was implemented in May.

With businesses like Centrus Energy (NYSE:LEU) and Honeywell (NASDAQ:HON) highlighted as benefactors, Daiwa projects a $443 million market for domestic enrichers.

 

"Localization of nuclear fuel is likely now a priority," Daiwa stated, despite the fact that uranium oxide (U3O8) supplies are still strong and can meet demand for 2.9 years. In the foreseeable future, enrichment growth will probably surpass miners' benefits.

Daiwa sees a bright future for the nuclear industry and believes that the U.S. nuclear comeback is a part of a worldwide trend. He is equally optimistic about China's nuclear aspirations.

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