I’ve been talking about this sector throughout 2023 and its set to gain even more momentum in 2024… Nuclear and Uranium.

2024 has already kicked off for Uranium.

The fuel that powers nuclear, Uranium has reached another high at +$92 – taking its one year gain to +87%.

What’s more, governments have increased interest in adding nuclear to their energy mix.

This time…it’s the UK.

UK plans its biggest nuclear expansion…

Last week, the UK announced its biggest nuclear power expansion in 70 years. Dubbed, “The Civil Nuclear Roadmap”, it details plans to increase nuclear generation by up to four times to 24GW by 2050.

Approval will be given for one or two new reactors every five years from 2030 to 2044. To achieve this, the UK will invest up to £300 million for production of the fuel required to power high-tech new nuclear reactors, known as HALEU.

HALEU is high-assay low-enriched uranium. Conventional low-enriched uranium has about 3-5% of uranium. HALEU has 5-20%.

The greater concentration of uranium allows reactor designs to be smaller and they don’t need to be refuelled as often. Most small modular reactors designs will run on this fuel as a result.

Currently, HALEU is only commercially produced in Russia.

But one company is set to change all that…

The US company developing the next-generation nuclear fuel

Centrus Energy (NYSE: LEU).

Centrus is a supplier of nuclear fuel and services for the nuclear power industry.

Back in December 2022, Centrus finalised an agreement to build a HALEU facility in Ohio.

It is the only Nuclear Regulatory Commission (NRC)-licensed HALEU facility in the US.

It’s also the first new US-owned, US-technology uranium enrichment plant to begin production since 1954.

Centrus is the only US company currently building the infrastructure necessary to supply this fuel.

The plant’s production capacity is about 900 kilograms of HALEU per year.

With funding, the company could significantly expand production to approximately 6,000 kilograms of HALEU per year.

It counts the US government and US utilities as customers. It is also highly diversified with European and Asia customers.

Now with the UK looking to invest in HALEU production, Centrus is in a perfect position to score another supply agreement.

For investors who haven’t taken the leap yet into nuclear, Centrus could be the perfect stock to start. For more on nuclear investment opportunities get my latest Renewable Energy report.

PS. This megatrend in renewables, nuclear and all the critical resources that support this trend is growing exponentially. Make sure you have allocated a portion of your investment portfolio to this space.

Not a subscriber to Money Morning?
You can get free daily recommendations like these with Money Morning eletter. Just sign up here.