While oil has traditionally been the most interesting commodity to investors in the past, the green energy sector is reliant on the unique electrical and physical properties of many different metals to work optimally. To build more renewable capacity and to store that energy efficiently, we will need to increase the available supply for these specific raw materials, or face higher costs for each material.
Metal Bull Cases
Ahead of Cambridge House’s annual Vancouver Resource Investment Conference on January 20-21, 2019, we thought it would be prudent to highlight the “bull case” for relevant metals as we start the year. It’s important to recognize that the commodity market is often cyclical and dependent on a multitude of factors, and that the above cases are not meant to be predictive in any sense. In other words, the facts and arguments above sum up what we think investors may see as the most compelling stories for these metals – but what actually happens in the market, especially in the short-term, may be different.
Overarching Trends
While we highlight 12 minerals ranging from copper to lithium, most of the raw materials in the infographic fit into four overarching, big-picture stories that will drive the future of green energy: Which of these stories has the most potential as a catalyst for driving the entire sector? Based on these narratives, and the individual bull cases above, which metal has the most individual potential? Let us know in the comments below, or visit Booth #1228 at #VRIC19. on
#1: High Reliability
Nuclear power plants run 24/7 and are the most reliable source of sustainable energy. Nuclear electricity generation remains steady around the clock throughout the day, week, and year. Meanwhile, daily solar generation peaks in the afternoon when electricity demand is usually lower, and wind generation depends on wind speeds.As the use of variable solar and wind power increases globally, nuclear offers a stable and reliable backbone for a clean electricity grid.
#2: Clean Electricity
Nuclear reactors use fission to generate electricity without any greenhouse gas (GHG) emissions.Consequently, nuclear power is the cleanest energy source on a lifecycle basis, measured in CO2-equivalent emissions per gigawatt-hour (GWh) of electricity produced by a power plant over its lifetime. The lifecycle emissions from a typical nuclear power plant are 273 times lower than coal and 163 times lower than natural gas. Furthermore, nuclear is relatively less resource-intensive, allowing for lower supply chain emissions than wind and solar plants.
#3: Stable Affordability
Although nuclear plants can be expensive to build, they are cost-competitive in the long run. Most nuclear plants have an initial lifetime of around 40 years, after which they can continue operating with approved lifetime extensions. Nuclear plants with lifetime extensions are the cheapest sources of electricity in the United States, and 88 of the country’s 92 reactors have received approvals for 20-year extensions. Additionally, according to the World Nuclear Association, nuclear plants are relatively less susceptible to fuel price volatility than natural gas plants, allowing for stable costs of electricity generation.
#4: Energy Efficiency
Nuclear’s high energy return on investment (EROI) exemplifies its exceptional efficiency. EROI measures how many units of energy are returned for every unit invested in building and running a power plant, over its lifetime. According to a 2018 study by Weissbach et al., nuclear’s EROI is 75 units, making it the most efficient energy source by some distance, with hydropower ranking second at 35 units.
#5: Sustainable Innovation
New, advanced reactor designs are bypassing many of the difficulties faced by traditional nuclear plants, making nuclear power more accessible.
Small Modular Reactors (SMRs) are much smaller than conventional reactors and are modular—meaning that their components can be transported and assembled in different locations. Microreactors are smaller than SMRs and are designed to provide electricity in remote and small market areas. They can also serve as backup power sources during emergencies.
These reactor designs offer several advantages, including lower initial capital costs, portability, and increased scalability.
A Nuclear-Powered Future
Nuclear power is making a remarkable comeback as countries work to achieve climate goals and ultimately, a state of energy utopia. Besides the 423 reactors in operation worldwide, another 56 reactors are under construction, and at least 69 more are planned for construction. Some nations, like Japan, have also reversed their attitudes toward nuclear power, embracing it as a clean and reliable energy source for the future. CanAlaska is a leading exploration company in the Athabasca Basin, the Earth’s richest uranium depository. Click here to learn more now. In part 3 of the Road to Energy Utopia series, we explore the unique properties of uranium, the fuel that powers nuclear reactors.
