It's Time to Invest in Nuclear Power

I've been all about renewable energy this week...

Yesterday, I shared my interview with former Governor and Secretary of Energy Rick Perry about the future of the energy industry. And today, I want to dive into that idea even further.

But first, let's talk about a groundbreaking development that just took place outside our capital city.

It wasn't legislative action... but its ripple effects could be even more important for long-term investors.

Headline No. 1:

Dulles International Airport is getting a big renewable-energy makeover.

McCall's Call: On Tuesday, Dominion Energy (D) officially broke ground on the largest renewable-energy project at Dulles International Airport just outside of Washington, D.C. The company is developing a huge solar project that will include a battery-storage system and electric-vehicle ("EV") charging station.

Once completed, the system will generate up to 100 megawatts ("MW") of solar energy and store up to 50 MW of power. That's enough clean energy to power more than 37,000 homes.

As part of its agreement with local agencies, Dominion will build out 18 electric transit buses, 50 electric fleet vehicles, and EV charging stations. It will also construct two 1 MW solar carports that will provide power to Dulles airport facilities. You can see a rendering of them below...

In total, the Dominion project will span about 835 acres on the edge of Dulles Airport and be made up of 200,000 solar panels. Construction is expected to start at the end of this year with a completion date of late 2026.

Once complete, the airport will be able to run its facilities and transportation services with little to no energy costs. That will save it a ton of money over the long run that it can use for other purposes.

And based on the last time I flew through Dulles, it could use some of that cash to remodel!

In all seriousness, this is another good sign for the solar industry. And if it's successful, I suspect we'll see many other airports follow in Dulles' footsteps. That will only add to the massive amount of capital pouring into this sector.

But right now, solar stocks are beaten down...

As you can see below, the Invesco Solar Fund (TAN) – which holds a basket of 50 solar-related stocks – has fallen 23% since it topped out on July 17.

It's down almost 24% year to date, too – underperforming the S&P 500 Index's 14% gain by a wide margin.

I expect the tide to turn soon. The odds of solar stocks bouncing back from today's levels are high. And the massive project just beginning at Dulles Airport is a step in the right direction.

Headline No. 2:

The VanEck Uranium+Nuclear Energy Fund (NLR) just broke out to a 12-year high.

McCall's Call: Uranium stocks are breaking out this week. So far this year, the Uranium+Nuclear Energy Fund is up about 15% to its best level since 2011. Spot uranium prices are up, too. They're up 22% so far in 2023 and just hit $58.25 per pound – their highest price since April 2022.

I'm not surprised. I've been a believer in nuclear power for years. And even though the naysayers highlight safety and cost issues, I still think nuclear power will play a huge part in the energy industry in the future.

In fact, nuclear power is currently the most reliable form of "clean" energy.

Given the massive worldwide push toward renewable sources of power – and the fact that uranium is fuel for nuclear power plants – higher uranium prices are coming.

In 2022, about 49,000 metric tons of uranium were produced globally. That's down 19% from 2017's production of about 60,500 metric tons. This supply crunch alone could push prices higher.

But it's coming at a time when demand is rising...

Last month, the U.S.'s first newly constructed nuclear unit began producing power. And another new nuclear facility in Georgia will come online at the end of this year or in early 2024. That means we're using more nuclear power – and therefore, more uranium as well.

In total, 486 nuclear reactors are either planned, proposed, or under construction across the globe. That's enough to produce about 66 billion watts of electricity – the most capacity under construction for the nuclear power industry since 2015.

All of this new nuclear capacity will create a huge increase in uranium demand. And that could make supply issues even worse...

Right now, uranium production is about 40 million pounds short of the annual demand.

Money will have to keep flowing into both nuclear power and uranium production to keep this trend alive. And if the government has any hope of reaching its clean-energy goals, it has no choice but to focus more on nuclear power.

And that makes now the time to increase your portfolio's exposure to uranium.

NLR is a great way to do that. It holds a basket of uranium miners and energy companies focused on nuclear power. So as the world increases its reliance on nuclear power in the years to come, the stocks that make up this fund should benefit.

But individual stocks hold a lot of upside, too.

In fact, my MegaTrend Investor subscribers own an industry leader in this space. It specializes in a niche of the nuclear power industry and made history earlier this decade with its plant designs. It will make history again when its designs come to fruition.

Click here to find out how to claim a trial membership to MegaTrend Investor and learn the name and ticker symbol of this company – plus the 30-plus others that make up our model portfolio.

Here's to the future,

Matt McCall
Editor, Daily Insight
August 25, 2023

Did You Miss My Latest Podcast?

Last weekend, I attended an energy summit in California. I had a great time and heard from a lot of fantastic speakers. But one of my favorites was Rick Perry – the former governor of Texas and secretary of energy. I was blown away by his discussion on nuclear energy. Regular readers know that I believe there's massive upside in this trend. And clearly, I'm not the only one. I sat down one-on-one with Perry to discuss the energy space and am sharing my interview on this episode of Making Money With Matt McCall.

Our discussion covers all things energy – from the current energy market to why the Strategic Petroleum Reserve is so low to the current political situation and upcoming presidential election. But of course, we talk about nuclear energy and small modular reactors. Like me, Perry sees a lot of opportunity in this space. This is a megatrend with so much room for growth. So whether you're against nuclear energy, for it, or on the fence... it's not something you should be ignoring.