Summary of Nuclear Renaissance – Key Questions For 2026 Industry Overview - The report focuses on the nuclear energy sector, highlighting the potential for a nuclear renaissance in 2026 and the investment opportunities within the nuclear value chain [2][12]. Key Questions and Insights 1. **Conventional Nuclear Supply** - Incremental nuclear supply is expected in the US, Japan, and China, with a more positive outlook for the US and Japan. The fastest pathways to add capacity are restarts and life extensions of existing reactors [13][14]. - Japan's nuclear policy is supportive, with recent approvals for reactor restarts, while the US has several plant restarts underway, including Palisades and Crane Clean Energy Center [15][16]. 2. **Small Modular Reactors (SMRs)** - The SMR market is becoming selective, with only projects that have clear regulatory pathways and credible financing likely to succeed. Demand from hyperscalers is strong, but execution risks remain [3][17]. - Currently, only four SMRs are operational globally, with many still in the design phase [20]. 3. **Nuclear Fuel Supply Chain** - Uranium is highlighted as a preferred commodity for 2026, with utilities returning to the market and spot buying remaining robust. The expected price is projected to reach US$90/lb by Q3 2026 [4][23]. - The supply chain is constrained, with long-term contracting activity improving as US utilities re-engage in the uranium market [24][30]. 4. **Fusion and Thorium Technologies** - Fusion and thorium remain long-term technologies with limited near-term impact on power supply. However, they are gaining attention and funding, indicating potential future relevance [5][31]. - China is advancing thorium technology with active projects, while the US is restarting research on molten salt reactors [33][36]. Investment Opportunities - The report identifies 26 Overweight-rated stocks across the nuclear value chain, including: - **Nuclear Power Generation**: Talen Energy, Public Service Enterprise Group, Hokkaido Electric Power [2][11]. - **Uranium Mining**: CGN Mining, Paladin Energy [4][11]. - **Equipment & Plant**: Curtiss-Wright, GE Vernova, Rolls-Royce [3][11]. Market Performance - Uranium mining stocks have shown significant outperformance, indicating strong investor interest and potential for growth in this sector [6][11]. Monitoring Signals for 2026 - Key signals to watch include: - Japan's safety review processes and government support for nuclear projects [16]. - Progress on US nuclear plant restarts and regulatory streamlining [16]. - Long-term uranium contracting trends and advancements in enrichment capacity [30][31]. Conclusion - The nuclear sector is poised for growth, driven by increasing demand for clean energy and supportive policies in key markets. Investors are encouraged to focus on companies with strong fundamentals and clear pathways to capitalize on the nuclear renaissance [2][12].