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In Stunning Post-Fukushima Shift, Japan To Build More Nuclear Power Plants

Tyler Durden's Photo
by Tyler Durden
Wednesday, Aug 24, 2022 - 01:05 PM

Following the Fukushima disaster in 2011, nuclear power fell out of favor in Japan. But with global energy markets in turmoil and electricity bills skyrocketing, Prime Minister Fumio Kishida is revisiting the debate over nuclear and perhaps the need to increase investments in next-generation power plants.

FT reported Kishida had announced plans to examine the construction of new plants that would break more than a decade of energy policy following the Fukushima disaster, which led to an effort to eliminate nuclear. 

More recently, however, the Russian invasion of Ukraine disrupted global energy markets has forced Tokyo to reconsider nuclear because most of its energy needs are imported, with at least 9% of LNG from Russia. 

Kishida said energy officials would draw up concrete plans for future nuclear power plant projects by the end of this year. He also instructed officials to consider extending the lifespan of existing reactors beyond the current maximum lifespan of six decades. 

Japan's energy policy is coming out of a decade of paralysis. The prime minister announced the restart of some plants to ensure grid stability earlier this year. 

... and here's where the ears of uranium bulls perk up:

"Nuclear power and renewables are essential to proceed with a green transformation," Kishida said. "Russia's invasion changed the global energy situation."

Since December 2020, we have recommended Uranium stocks because nuclear will sooner or later be accepted as one of the most stable "clean energy" sources of power in the green energy push. Unlike solar, wind, and hydro, which the world is figuring out this year, these renewable power sources aren't as stable as previously thought. Nuclear will be the big winner in the decades ahead to decarbonize grids worldwide. 

Shares of uranium stocks from Cameco Corp. to Denison Mines Corp. are rising in US premarket trading on the news. The Global X Uranium ETF (URA) jumped as much as 4.5% in premarket. 

There's a reason why Asia is rapidly building nuclear power plants: because it's the future of decarbonized power grids. 

Infographic: Asia's Going Nuclear | Statista

Here are the countries that are most reliant on nuclear power

Infographic: The Countries Reliant On Nuclear Power | Statista

Environmental Advocate Michael Shellenberger recently noted in a piece called "Nations Go Nuclear As Prices Spike & Renewables Fail" that nuclear is one of the "safest ways to make reliable power." 

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