4

Million Tons

UEC is fully permitted to produce 4 million tons of U₃O₈, a compound of uranium, annually

580000

Pounds

of uranium was processed at Uranium Energy’s Hobson Processing Facility in Texas, 2010 - 2020

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The Path to Drawdown: Nuclear

Addressing climate change and staying below 1.5ºC of global warming compared to pre-industrial levels means that the majority of the world’s electricity source needs to switch from fossil fuels to 100% emissions-free sources by 2050. Nuclear power needs to be a significant component in the energy mix of that decarbonized future.

Extremely powerful and efficient in generating electricity, nuclear power has reduced CO2 emissions by over 60 gigatonnes over the last five decades -- equivalent to nearly 2 years’ worth of global energy-related emissions. In contrast to solar and wind, electric generation from nuclear power is stable. The cost of building new plants is still very high, but once built, the energy is relatively cheap. With Generation III reactors on the horizon, nuclear power is becoming safer, cheaper, and more efficient.

Nuclear power accounts for 10.5% of global electricity generation today. To be on a path to remain under 1.5C° of warming, nuclear power needs to grow mildly in the next three decades:

  • <::marker> 6,093 TWh of nuclear electricity generated in 2018
  • <::marker> 6,245.3 TWh needed by 2050

CAGR of 0.08% from 2018-2050

What We Want to See Improve

Achieve Profitability

Uranium Energy reported (p. 71) that since 2015, their mining activities have not generated positive cash flow and that they haven’t achieved profitability. We’re eager to see their sales increase to the point of profitability in the near future.

Disclose Sustainability Metrics

As of now, Uranium Energy doesn’t make any sustainability information available. As investors become more aware of and concerned about the carbon footprint of their portfolio, companies need to increase their disclosure around sustainability. In particular, we want to see Uranium Energy track and report their direct and indirect GHG emissions, emissions avoided and reduced through sustainability initiatives, and the level of energy consumed by source. These metrics should be included in an annual sustainability report.

Set Emissions Reduction Targets

In the fight against climate change, we need companies to cut their GHG emissions drastically both in their own operations and throughout their supply chain. While supporting nuclear energy is a valuable Drawdown solution, Uranium Energy’s processing facility, mining equipment and vehicles (p. F-17) emit significant amounts of emissions. We want to see them set aggressive targets to reduce these emissions by the end of this decade. These targets should be accompanied by practical strategies for how to achieve them.

Related Nuclear Energy Stocks in the Climate Index

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Allocated Company Description

0.61%

Cameco Corp. (CCJ)

Cameco is one of the largest uranium producers in the world. Uranium is the metal used in generating nuclear power, an important clean energy source

0.05%

Centrus Energy Corp. (LEU)

Centrus sells low-enriched uranium and technical solutions to the nuclear power industry in the US. Nuclear power is a key part of the future energy mix

0.05%

Uranium Energy Corp. (UEC)

UEC explores, mines and processes uranium through in-situ recovery mining. Uranium is needed for nuclear energy, a key part of a zero-emission energy mix

0.03%

Ur-Energy Inc. (URG)

Ur-Energy identifies, acquires, explores, and processes uranium in the US. Nuclear power is a key element in the decarbonized energy mix

0.02%

Lightbridge Corp. (LTBR)

Lightbridge Corporation makes an all-metal fuel for nuclear reactors. Nuclear power is a key part of a zero-emissions energy mix

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