Some of the world’s most influential nations have recently joined forces to create new supply chains for nuclear energy – a monumental development that stands in stark contrast with Germany’s decision to completely move away from the energy source in the same weekend.
At the G7 summit, representatives from the US, Canada, Japan, UK and France agreed to build nuclear fuel supply chains that have little to no reliance on Russia. This strategic decision was made in response to Moscow’s unlawful acts against Ukraine as well as the climate crisis. It aims to improve the depth and resiliency of nuclear fuel supply systems, while also reducing long-term reliance on Russia in the nuclear energy industry.
Russia is a major contributor to the global nuclear industry. Its supply chains are among the most prevalent and important in the world. In fact, Russia accounts for 6% of global mined uranium, and 40% of conversion capacities, plus 46% of enrichment capacities. Plus, of the 439 reactors in working today, 38 are based in Russia, 42 use Russian technology and 15 reactors currently being built also rely on Russian technology.
In a recent study by the Columbia Center for Global Energy Policy, it was revealed that many non-Russian countries have plenty of potential to produce their own nuclear fuel. But due to low market prices, the full capacity of their enrichment and conversion capabilities is rarely utilized. The report suggests that if most international countries agree to reduce or completely eliminate the involvement of Russia in the nuclear market, there could be a major reallocation to the supply chain.
On the same weekend, however, Germany announced it has officially cut ties with nuclear energy for good, shutting down its last three plants. This decision has been highly anticipated for decades, since the rise of an anti-nuclear movement in the 70s and the subsequent growth of the Green Party. Initially, the country paused a nuclear transition plan in 2009, until the Fukushima disaster occurred in 2011. At the start of the decade, Germany had 17 nuclear reactors that supplied a quarter of their electricity.
There are, certainly, pros and cons to relying on nuclear energy. While it comes with waste disposal and safety concerns, it is carbon-free and presents a valuable source of baseload electricity as a complement to sources like solar and wind energy. Last summer, the European Union voted to define nuclear energy as a “green” energy source, yet this continues to be a big point of discussion in Europe, as the country struggles with a divided opinion between green groups and those who think nuclear energy should be incorporated into climate change solutions.
The shift from Germany and the new multinational alliance to create viable, sustainable and reliable nuclear supply chains marks an important turning point for the industry. While Germany has made its intentions clear, it remains to be seen how much it will impact the global roll-out. Whatever the case may be, this weekend’s events are certain to leave a lasting mark on the energy future of nations around the world.
