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The First U.S. Nuke Since Three Mile Island

Written By Nick Hodge

Posted February 10, 2012

Without attracting much attention, the nuclear and uranium market is quietly gaining steam.

Last month, a federal court quietly yet sternly prevented the state of Vermont from closing the Vermont Yankee nuclear reactor owned by Entergy (NYSE: ETR).

You see, Vermont wanted to shut down the nuclear reactor when its license expires in March.

But the Feds made clear that Vermont — or any state, for that matter — is in no position to make decisions about nuclear plant operation, sending a bullish nuclear message in the process.

It ruled safety concerns and plant life fall solely under the jurisdiction of the Nuclear Regulatory Commission, which has already granted a 20-year license extension to the Vermont Yankee nuclear plant.

The New York Times noted: “The ruling is almost certain to be appealed by the state and an array of private groups… ”

But that’s kind of the point here…

The federal government is saying even with resistance from states and interest groups, nuclear energy is too vital to the mix to be wantonly dismissed.

In this case, the Yankee reactor generates more than 70% of the electricity generated in Vermont, with no way to replace that generation readily accessible.

The decision is good for the nuclear industry — and its investors — because it sets a precedent for similar situations, like the Indian Point debate currently brewing in New York.

Georgia on Its Mind

Weeks after the federal court ruled the NRC has jurisdiction over plant safety, operational life, and contracts, the commission is out with favorable rulings for two reactors at Southern Co.’s (NYSE: SO) Plant Vogtle in Georgia.

This story has been a long time in the making.

Two years ago I told you Obama awarded $8.3 billion in loan guarantees to help get this plant built.

And now, for the first time in more than three decades, the NRC will approve the construction of a new nuclear power plant — two of them, in this case.

They are the first to be approved since Three Mile Island.

Together, the two Westinghouse AP 1000 reactors will cost $14 billion and generate 2200 MW, enough to power one million homes. One would come online in 2016 and the other a year later.

In addition to these two plants, applications have been filed to build 22 new reactors in the United States.

Fueling the Resurgence

Of the 24 applications that have been filed, here’s how the type of planned reactor breaks down:

  • Westinghouse AP1000 – 12 Units

  • Areva EPR – 4 Units

  • GE (ESBWR & ABWR) – 6 Units

  • Mitsubishi Heavy Industry US-APWR – 2 Units

That’s just in the United States.

Elsewhere in the world, 475 reactors are either planned or proposed.

And as I’ve been telling you, supplying all those reactors with uranium is creating a major investment opportunity.

One company I’ve been following is capitalizing on this opportunity for itself and its shareholders. It’s developed a patented fuel that instantly makes power plants operate up to 25% to 50% more efficiently, saving billions upon billions of dollars in annual operating costs.

And because it absorbs more heat and extracts more nuclear energy, this additive can help prevent any Chernobyl- or Fukushima-like accidents from ever happening again, while also reducing the radioactive life of spent uranium.

The fuel has such promise that GE and Westinghouse have already signed on and are currently evaluating the fuel for commercial use.

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street’s Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor’s page.

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