On Wednesday (July 6) local time, the EU voted to confirm nuclear energy and natural gas as green energy, and included nuclear power and natural gas-related projects into the list of sustainable investments recognized by the EU. This resolution may enable related investment projects to attract billions of euros in the future. In other words, this new EU policy will benefit nuclear energy, and some nuclear energy companies may benefit from it. The development prospects are promising. The following will focus on Investors who prefer energy stocks may focus on several nuclear energy companies with promising growth potential:
- Industry leaders that have made great progress in the field of clean nuclear energy: Centrus Energy (LEU)
- Operating in Europe The nuclear energy innovator: Nuscale Power (SMR)
- The EU-based company is finally getting the catalyst it needs for growth: EDF (ECIFY)
At a time when the world is trying to shake off its obsession with Russian energy The dependence comes as the European Union has just taken a historic step by voting in favor of a policy proposed by the European Commission that states that some gas and nuclear energy projects can be considered green and sustainable, so These projects have the opportunity to receive more lower-cost loans and state-backed project support.
As reported by The New York Times : "The policy, known as 'classification,' is intended to stop 'greenwashing,' Greenwash refers to organizations declaring their commitment to environmental protection while actually doing so. The opposite is true. "Before the Russo-Ukrainian war, the EU mainly obtained energy from Russia, so the EU needed to develop greater energy self-sufficiency to replace these imported energy sources.
The New York Times also pointed out that the classification policy adopted by the EU is likely to become a global benchmark. Indeed, if its feasibility is proven, other countries are likely to follow suit. But even just further progress in the EU could be a catalyst for growth in nuclear stocks globally.
This means now is the time to start paying attention to this area, and here is a detailed analysis of 3 nuclear energy stocks that are most likely to benefit from this development.
1, Centrus Energy (LEU)
Centrus Energy, headquartered in Maryland, has a unique advantage in the oil and gas sector: it supplies the fuel and services required by nuclear power plants.
The company’s predecessor was the United States Enrichment Corporation, which was established in 1992. The predecessor company mainly produced enriched uranium for the U.S. Department of Energy. After going through several changes, the company was finally reorganized into Centrus Energy in 2014, but the reorganized Centrus Energy is still the parent company of Enrichment Corporation, and its contracts for the supply of nuclear fuel are wide-ranging and even extend to 2026. Year.
While some have questioned whether the classification policy is actually an environmental policy, Centrus's supply of high-isolation low-enriched uranium (HALEU) has won praise. "Market Pulse" reported: "The HALEU fuel supplied by Centrus Energy is more efficient and cleaner than previous nuclear fuels, giving the company a competitive advantage." This may make it easier for the company to obtain fuel supply contracts from EU companies.
2, NuScale Power (SMR)
NuScale Power (SMR)'s stock ticker is undoubtedly an interpretation of one of the products it produces: small modular reactors (SMRs), nuclear reactors capable of producing large amounts of low-carbon electricity.
NuScale Power's mission is to "improve the quality of human life through continuous improvement of nuclear energy," and now it seems to be on its way to achieving this ambitious goal. Like Centrus, the company is committed to making nuclear energy cleaner and safer and advancing it as an important means of future energy.
Analyst Josh Enomoto ranks NuScale as the most bullish energy stock for June 2022, while noting: "Of all other energy sources, nuclear energy has the highest capacity factor at 92.5%." Here's what he thinks about SMR stocks Reasons why there could be a big jump. The company may have more room to grow thanks to the EU's already adopted classification policy. So far, NuScale has launched projects in multiple EU countries, including Poland and Romania.
3, EDF (ECIFY)
Until recently, this penny stock seemed like a highly speculative investment, but Europe's energy crisis is a major positive for EDF. The French government has announced plans to fully nationalize the debt-ridden company to help France weather a period of energy supply turmoil. According to Bloomberg, the French government plans to increase its shareholding in the company from the current 84% to 100%, but has not yet made any decision on how to operate. ”
So it’s no surprise that EDF’s share price has risen by more than 10% in recent days on the news. The former industrial giant has been on the back foot for years due to negative attitudes towards nuclear energy, but as With the intervention of the French government, the company may finally be able to provide the growth catalyst it needs to stage a comeback.
With the classification policy implemented in the European Union, EDF is ushering in the spring of undertaking nuclear power projects, and its stock price is below $2 per share for investment. It may be quite tempting for readers.
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Author: Linggu Weibu
Compiler: Cai Caijun
