America's 'Least-Loved' Green Energy Source

Benzinga recently had the chance to speak with Steve Antony, CEO of the largest U.S. uranium miner, Energy Fuels UUUU. 

Mr. Antony discussed a range of topics, including nuclear energy headwinds, misconceptions about the environmental impact of nuclear energy, the U.S.’s reliance on uranium imports and Energy Fuels’ recent $100 million acquisition of Uranerz Energy Corp URZ.

Fears Of A Nuclear Disaster

When asked if fears of nuclear disasters such as those that occurred at Chernobyl, Three Mile Island and Fukushima have kept Americans leery of nuclear energy, Antony concurred that fear has certainly played a role in U.S. nuclear policy. “The U.S. was dedicated to a massive nuclear buildup coming out of the 70s, and then along came Three Mile Island, which produced the first upset in the nuclear buildout.”

While Antony acknowledged that the public has the right to be concerned about nuclear disasters of years past, the U.S.’s modern safety regulations and its nuclear power track record are stellar. There has never been a single U.S. life lost to radiation exposure at U.S. nuclear power plants in the history of the industry.

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Misconceptions

According to Antony, one of the biggest misconceptions that exists about nuclear energy is the costs associated with production. “With the exception of hydro, nuclear is the most economic fuel for power generation,” he said. “Nuclear power is the least-loved source of green baseload generation.”

Political Support

Benzinga asked Antony how big of a role he sees nuclear power playing in U.S. energy production in decades to come, and he explained that the single biggest determining factor will be political support.

“We certainly have support from the scientific and academic community, and they wield a pretty good pen when it comes to public opinion. And the environmentalists can’t argue from the standpoint of health, safety and environmental impact,” he added.

U.S. Uranium Imports

The U.S. currently imports over 90 percent of the uranium used in its nuclear power plants. Antony was also asked if the U.S.’s dependence on uranium imports is a problem.

“The biggest increased production centers in the past 10 years have been in highly geopolitically unstable countries,” Antony explained, noting that the U.S.’s recently-gained oil independence from the Middle East has been seen overwhelmingly as a positive for the country.

Uranerz

When asked about the recent acquisition of Uranerz, Antony explained that Uranerz’s specialization in in situ recovery (ISR) would provide an excellent complement to Fuel Energy’s traditional uranium mining business.

“We thought that it would be a good idea to team with an ISR producer. We looked around the space, and Uranerz was by far the best candidate. They had the best technical management, they have a track record of surviving in the industry, and they had the best upside to the properties they control in the state of Wyoming.”

The market seems to agree that the acquisition is a good move for Energy Fuels, as the company’s stock has spiked more than 19 percent since the deal closed on June 18.