4 Ways to Invest in Nuclear Energy


Nuclear energy stocks

Make a nuclear energy investment can be a very risky endeavor. The nuclear industry is surrounded with risks; much more than other areas of the power sector. If you are considering investing in energy companies, then you might want to take a minute to make sure you know what you are doing. Nuclear energy stocks can be a great investment but you have to be prepared to lose it all. Here are some of the reasons why the nuclear industry is risky.

  1. The plants cost a lot of money and take a very long time to build.

  2. Most of the new designs for reactors are waiting for the certification by the U.S. Nuclear Regulatory Commission and there’s no telling when they are going to get that. Recently no one has been granted permission.

  3. There is a decreased demand for electricity. People are more concerned with energy conservation and the recession to need electricity.

  4. With natural gas prices being so low, nuclear plants seem really expensive because they are being compared with other types of plants that can be powered by fossil fuels.

Having said that, there are many investors who say that nuclear power is going to make a comeback. Their reason for believing this is because the reactors are able to produce so much electricity that they are able to cut pollution by standing in for plants that are powered by coal. Their beliefs are backed up by the Obama administration which has proposed almost $54 billion to start new construction for new plants. Almost 25 applications are being processed by the Nuclear Regulatory Commission. So, how should one approach the sensitive industry?

Find the Best
Do not just buy a bunch of stocks that are related to the nuclear industry and hope for the best. You should take the time to learn about each company and see what they have to offer. Find out what their radiation survey meters predict and what kind of position each company holds in their market segment. Which company has a design that is most likely to succeed? Which company has the most successful engineering department?

Look for Support for Projects
It is recommended to pick companies that have projects that have gained regulatory support. If a company that wants to build reactors is able to garner money from loan guarantees at the Department of Energy, this can make the company seem likely to succeed. Favorable views by utility regulators is also important. A utility company will be more likely to give support if they think they are able to recover their investment even if the plant is not completed. Radiation survey meters showing the people the low level of exposure will also gain support from residents in the area. Without that, the plant will not open.

Consider the Long Term
Some investors have a long term plan and if a nuclear service business fits into that plan, then consider companies that have a plan to bring down costs, diversify and grow over time. Long view companies that want to bring down radiation levels and install radiation survey meters and the like, are much more likely be to around for awhile and give you a return on your investment. It’s great to be excitable and passionate but when you are dealing with something as dangerous and serious as nuclear power, it’s important to stay grounded and realistic.

Look for Local Plans
Local doesn’t necessarily mean in your city, it simply means in country. For decades not very much has been done to increase cars and trucks in ways of efficiency but fuel economy standards have risen. Local plans mean more jobs and more focus on our country and how to make it better. The truth is, in order to prevent climate change, we’ll have to meet energy needs which equates out to an increase in nuclear power. One plant to cut carbon pollution by almost 16 million tons every single year. That’s equivalent to three and a half million cars. Doing that over seas is great, but we need to bring some of that year. There are incredibly benefits to using radiation survey meters and ensuring that radiation levels are decreased and the nuclear power benefits are rising in our own country.

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