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Highlights
- At present, around 63% of nuclear plants are more than 30 years old
- Nuclear power capacity must increase by 10 GW each year till 2030 to meet net-zero emissions targets
- Toro Energy has secured a firm commitment to raising AU$5 million
Nuclear energy can complete the transition from fossil fuels faster and even more securely. To achieve net-zero carbon emissions by mid-century, we require rapid decarbonisation of the generation of electricity and heat production. Historically, nuclear power has been one of the largest contributors to carbon-free electricity. It still faces major challenges in some countries, but with time, its role in decarbonising the power sector will be realised.
On the global level, nuclear energy contributes to nearly 10% of electricity generation, increasing up to 20% in advanced economies. At present, 32 countries are operating in the nuclear energy industry and producing 413 gigawatts (GW) of electricity from it.
Growing urbanisation and rapidly increasing demand for energy while reducing greenhouse gas emissions are not easily achievable. In 2021, nuclear plants with more than 8 GW capacity will be retired for various reasons. The newly completed reactors could not meet the shortages, and a decline of 3 GW was observed in nuclear power capacity.
Wind power and solar photovoltaics will have a vital role in replacing fossil fuels, but dispatchable resources will have to complement them. Extending the lifetime of existing nuclear power plants is one of the most effective ways to produce low-emission electricity. Currently, around 63% of nuclear plants are more than 30 years old and close to the end of their operating licences.
It is expected that 25% of existing nuclear capacity in advanced economies will be shut down by 2025. In the last 50 years, nuclear power alone reduced nearly 55 Gt of carbon dioxide emissions.
China and India have led strong growth in nuclear power in developing economies and have helped cut approximately 9 Gt of emissions. In order to stay on track with the net-zero emissions target, nuclear power capacity must increase by 10 GW each year till 2030 and will also require an investment of US$100 billion per year in the late 2020s.
Having explored the nuclear energy sector, now let's look at the performance of some ASX nuclear energy stocks.
Data: ASX as of 30 December 2022
Alligator Energy Limited (ASX:AGE)
Australia-based exploration company Alligator Energy Limited focuses on developing uranium projects with clear pathways. The company has a strategic relationship with Traxys North America, under which Traxys will provide uranium marketing services along with finance and assistance in acquisition opportunities. Alligator Energy is also interested in the Piedmont Project of Northern Italy, which is rich in nickel, copper and cobalt mines with significant gold and platinum group elements.
Alligator Energy recently announced the success of extensive bench-scale uranium leaching and ion exchange (IX) extraction tests of core samples from the Samphire Uranium project. The leaching tests showed more than 98.6% uranium extraction in all tests. The IX tests confirmed the occurrence of uranium loading in all scenarios. The Scoping Study is progressing well, and the latest results are being used for economic models. The results are expected in January 2023.
Image: © Iofoto | Megapixl.com
Toro Energy Limited (ASX:TOE)
ASX-listed Toro Energy Limited is a uranium development and exploration company. Toro has projects in Western Australia containing prospects for uranium, gold and base metals. The Wiluna Uranium Project is the flagship project with environmental approvals from the federal and state governments to mine uranium at various deposits. The Wiluna region is also rich in gold and nickel.
Toro Energy recently secured firm commitments from new and existing investors to raise nearly AU$5 million. The funds will be used to extend a scoping study, plan a pilot program for a pre-feasibility study, evaluate the vanadium resource at the Lake Maitland uranium project and further evaluate the Wiluna uranium project.
Elevate Uranium Limited (ASX:EL8)
Uranium exploration and ASX-listed company Elevate Uranium Limited has resources in Namibia and Australia. The company continues to make discoveries through active exploration. Elevate has developed a counter-cyclical strategy for exploring uranium tenements in Namibia. U-pgrade is the company’s patented beneficiation process that can increase ore grades from 93 ppm to 5000 ppm U3O8.
Elevate Uranium recently discovered a new uranium mineralised zone, which extends further 6.6 kilometres to the south of Koppies 2. It is now called Koppies 4. The continuity of uranium mineralisation was also confirmed at Koppies 3 by a closely spaced drilling program. The discoveries have extended uranium mineralisation to a total length of 19.2 kilometres at Koppies.
