There’s a Renewed Interest in Nuclear Power, and One Country Rich in Uranium Is Poised to Capitalize on It: Canada

Since major technology companies have invested heavily in nuclear energy, all funding and attention are now directed toward this energy source. One significant drawback is the competitive bidding for uranium, with China and Russia as the leading contenders. However, they likely didn’t expect Canada to emerge as a force in the market.

Context. Following the Fukushima nuclear accident in 2011, nuclear energy suffered a significant decline in public opinion, leading to a lack of investment. However, this trend has notably reversed in the past five years, with major investors reaffirming their commitment to nuclear energy.

Moreover, prominent figures such as Microsoft co-founder Bill Gates and projects like his Natrium plant have played a crucial role in promoting nuclear energy. Additionally, with the rise of AI and the demand for data centers, big technology companies, including Amazon, Google, Microsoft, and Meta, are increasingly viewing nuclear energy as a reliable and sustainable power source.

Canada and its uranium deposits. In the context of global power dynamics, Canada is notable for having one of the largest uranium deposits in its Athabasca Basin mines, located in Northern Saskatchewan.

The deposit, operated by NexGen, is valued at $4 billion but isn’t expected to begin commercial operations until 2028. By the time it’s fully regulated, it has the potential to surpass Kazakhstan and become the world’s largest uranium producer.

Why Canada? Unlike Kazakhstan, the largest producer of uranium, Canada doesn’t enrich the uranium it mines. As a result, countries often rely on Russia and China for enriched uranium to fuel their nuclear reactors. However, Canada is capable of fulfilling both mining and enrichment functions.

For this reason, Canada is regarded as a top-tier nuclear nation. According to the Canadian government, the country is currently the second-largest producer of uranium, accounting for 13% of total global production.

It’s important to note that Canada enforces strict regulations regarding the sale of its uranium, mandating that it can only be used for nuclear power generation.

Criticism of nuclear energy. Despite the agreement at COP28, where various countries committed to increasing their nuclear capacities, nuclear energy has faced criticism.

First, environmental groups have raised concerns about the high costs of nuclear projects and their timelines, which they believe don’t address the urgency of climate change. Additionally, they worry about the waste generated by nuclear reactors. British Columbia, which possesses its own uranium supply, hasn’t permitted any nuclear power plants to operate since 1980. Moreover, some people fear that a disaster akin to the Fukushima nuclear accident could occur again.

The U.S. is observing the situation closely. After President-elect Donald Trump’s victory, the future of nuclear energy in the U.S. will likely continue along the path established by President Joe Biden, albeit with some minor adjustments. In the search for alternatives to Russian uranium, Canada has emerged as a safe and reliable neighbor and supplier.

Image | Lukáš Lehotský

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