Surran reported on May 5, 2021 that uranium mining companies move higher on the stock market following a Reuters report that the Biden administration has signaled privately to lawmakers and stakeholders in recent weeks that it supports subsidies to keep existing nuclear plants from closing, needing the plants to meet U.S. climate goals.
NexGen Energy NXE +11.8%,
Denison Mines +10.2%,
Uranium Energy Corp. +6.9%
Energy Fuels, Inc. +6.5%,
Ur Energy, Inc. +5.8%,
Cameco Corporation +5.1%,
OTCQX: Fission Uranium Company +2.8%.
ETFs: XLU, URA, NLR
The new subsidies will be in the form of "production tax credits" - which wind and solar power producers already receive - and likely would be part of President Biden's multi-trillion-dollar legislative effort to invest in infrastructure, according to the report.
The U.S. has more than 90 nuclear reactors, the most in the world, and the business is the country's top source of emissions-free power generation, but the aging plants have been closing due to rising security costs and competition from natural gas, wind and solar power, which are rapidly becoming cheaper. [For industry perspectives, see World Nuclear News (2020)]
Entergy's (ETR -2.6%) Indian Point nuclear power plant in New York closed its last reactor on April 30, and Exelon (EXC -3.3%) has threatened to shut down two nuke plants in Illinois by November if the state does not implement subsidies.
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