Weekly Reports | 10:00 AM
Energy for AI-driven demand for data centres continues
From a macro perspective, it was a big week for the US nuclear energy industry. While discussions hinted at Pennsylvania becoming an AI-energy hub, last week President Trump attended an inaugural Energy and Innovation Summit in Pittsburgh, which was held at Carnegie Mellon University and is aimed at positioning the state as an AI leader.
Between US$90bn-US$100bn in private investment was announced for AI, data centres, and energy infrastructure using nuclear energy alongside coal, gas, and hydropower.
Westinghouse also announced plans to build ten large nuclear reactors in the US, with its AP1000 reactor capable of generating enough electricity to power more than 750k homes. Ten such reactors would underpin US$75bn in value across the US, with US$6bn to be invested in Pennsylvania.
In the last thirty years, the US has built two new reactors, both of which were Westinghouse AP1000s at Plant Vogtle in Washington, Georgia. That project was delivered seven years behind schedule and US$18bn over budget.
Google Cloud and Westinghouse are collaborating on AI applications to transform the construction of advanced reactors into an "efficient, repeatable process" and enhance operations of existing nuclear power plants using data-driven insights.
Utilities' requests for proposals take a step up
Utilities have re-entered the U3O8 mid- and long-term delivery windows, as highlighted by industry consultants TradeTech. A formal Request for Proposals for 400klbs U3O8 per annum between 2029 and 2033, with an optional 300klbs U3O8 annually between 2034 and 2036, was placed. Offers are due by July 31.
Another US utility is seeking 50k to 200klbs per annum of U3O8 between 2028 and 2031 and is evaluating offers, while another has a due date of July 22 for offers of 500klbs for delivery between 2029 and 2033.
These proposals come amidst a backdrop of rising geopolitical tensions with President Trump threatening tariffs on Russia and potential supply issues from Niger and Kazakhstan, against rising demand for energy and security.
The TradeTech U3O8 spot price indicator slipped by -US$1/lb last week to US$71/lb, bringing the decline to -9.7% from the 2025 high of US$78.65/lb on June 27.
The spot price is down -15.5% from the prior year and down -6.6% since the start of 2025.
Three transactions were undertaken in the spot market: one early last week for 100klbs for July delivery to Cameco's Canadian facility; another on Thursday for 50klbs for delivery at Orano's Comurhex facility in France; and another 100klbs at US$71/lb for Cameco in July.
TradeTech's U3O8 Mid-term price indicator is US$83/lb and Long-term price indicator is US$80/lb.
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