TerraPower accelerates transition to net zero: How are ASX uranium stocks placed?

Highlights 

• TerraPower raised US$750 million for research and development in the nuclear technology space.
• Once developed, Natrium™ Reactor and Integrated Energy Storage are expected to be amongst the first commercial advanced nuclear technologies.
• Process Heat technology can convert low-rank coals into high-value coal oils and low-cost carbon fibre.
• ASX-listed companies like Deep Yellow and Boss Energy are developing projects that are expected to make a major contribution to net-zero carbon emissions.

In a recent development, multi-billionaire Bill Gates-backed TerraPower raised nearly US$750 million to develop and innovate possibilities of nuclear science in the field of safe and abundant carbon-free energy. The project is also inclined to research and develop new nuclear medicinal isotopes. Out of this US$750 million, South Korea's leading energy provider SK Group invested US$250 million.

TerraPower in collaboration with the government, international organisations, government laboratories, and private sector entities, is working on clean energy to curb the menace of global warming. The aim is to help address the issue of climate change and other associated calamities.

Another vertical of TerraPower, TerraPower Isotopes (TPI™), is working on developing Actinium-225 as a cancer treatment, expected to be more effective and cause less damage to healthy tissues.  

1. NATRIUM™ REACTOR AND INTEGRATED ENERGY STORAGE: TerraPower and GE Hitachi Nuclear Energy developed this 345 MWe reactor with a gigawatt-hour-scale, molten salt energy storage. It is a flexible, cost-competitive technology that supports load following, energy storage and industrial process heat applications. It will be available in the late 2020s and is expected to be among the first commercially advanced nuclear technologies.

2. MOLTEN CHLORIDE FAST REACTOR (MCFR) TECHNOLOGY: This technology offers high operating temperatures, thus increasing the plant's efficiency. The technology requires no operator action as it is very stable. The technique also eliminates the risk of weapon proliferation as the refuelling does not require ongoing enrichment or reprocessing facilities. 

3. TRAVELING WAVE REACTOR (TWR) TECHNOLOGY: This technology is a primary long-term goal of the Natrium™ program. Capital and operational costs for running this reactor are low due to its atmospheric pressure operation and exceptionally low fuel costs. The reactor does not require fuel procurement and other interruptions for decades as it can sustain a fission chain reaction because of the travelling wave. It will reduce the waste produced and ease the waste disposal process, thus further reducing the operating cost. 

4. TERRAPOWER ISOTOPES® PROGRAM (Other Technologies): Researchers' assessment at TerraPower found that Actinium-225 (sourced from Thorium-229) can be used to treat acute myeloid leukaemia, colorectal, prostate and other cancers more effectively as compared to conventional cancer treatment methods. The TerraPower Isotopes (TPI™) program is working on extracting Thorium-229 from Uranium-233, managed by the US Department of Energy. It will also assist in reducing the clean-up time and the cost of Uranium-233’s disposal.
5. PROCESS HEAT (Other Technologies): Coal, one of the most abundant resources in the United States, is used in the production process of electricity, steel and cement. All these products are of low value; hence, TerraPower has developed technology that can transform low-rank coals such as sub-bituminous coal into high-value coal oils. This process also creates heavy molecules’ material that can be used to manufacture low-cost carbon fibre. 

6. ADVANCED REACTOR MODELING INTERFACE (Other Technologies): A team at TerraPower collaborates with developers via open-source software from various institutions, which are also working on these types of advanced reactor technologies. This open-source framework will help lay the foundation for a strong regulatory basis for new reactors.

How are ASX-listed uranium companies faring

1. Deep Yellow (ASX:DYL) recently successfully merged with Vimy Resources, creating a significantly larger uranium company with the Tumas uranium mine in Namibia and the Mulga Rock Uranium Project in Western Australia. With TerraPower developing low-cost, efficient and clean nuclear energy, possibilities are enormous in the African continent and other second and third world countries. Due to capital issues, only 32 countries produce energy from nuclear reactors.

2. Boss Energy Limited (ASX:BOE) is investing AU$113 million in rebuilding the Honeymoon uranium mine in South Australia. Based on this statement, the mine is expected to run in full production by 2027 with an annual output of 2.45 million pounds.

Based on these production forecasts and increasing uranium prices, Australia’s uranium export earnings are expected to grow from AU$511 million in 2021–22 to AU$815 million by 2023–24, as per the Resources and Energy Quarterly report released in June 2022.

These numbers along with the pathbreaking developments of TerraPower are expected to keep uranium stocks stay in the limelight for next couple of years or more.