The plan to make Australia carbon-neutral by 2050 is already starting to fail. We think that could prompt a move back to ‘traditional’ energy sources.
Here are five stocks that could see an upside when this happens (and they’re NOT oil and gas companies…)
Get our report, ‘Five ASX Uranium Stocks to Watch in 2023’
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Read the FREE report and you’ll discover:
- The reason uranium is hitting a 12-year high after a decade of stagnation. This is why now’s the time to consider a uranium play for your portfolio…
- Why uranium could be about to enter a NEW bull market. Despite the controversy, nuclear power holds an advantage in the energy transition. If more governments embrace it, uranium prices will skyrocket.
- How net zero will ruin our Aussie way of life (just ask Germany). And why uranium could be the country’s saving grace.
- Greenpeace is lying to you. The whole ‘nuclear is unsafe’ claim is a myth — one chart inside the report proves it.
- Five promising uranium stocks you should add to your watchlist. They could help you benefit from what could be the biggest ‘energy rebound’ in history.
Dear Reader,
‘A dangerous fantasy’
That’s what Greg Canavan, Chief Strategist at Fat Tail Investment Research, says about net zero — the plan to make Australia carbon-neutral by 2050.
And he’s not alone in saying this…
Australian energy minister Chris Bowen believes that the ‘2050 plan is a fantasy invented by the Morrison Government.’
While a group of climate scientists have declared that ‘the concept of net zero is a dangerous trap.’
So why are smart people turning their back on a plan that’s supposed to save our planet?
Well, here’s the ugly truth:
Net zero cannot happen.
The transition to 100% renewable energy that’s supposed to solve climate change and improve Aussie lives…
Is actually going to make us poorer…lower our standard of living…curb our freedoms…and (believe it or not) even HARM the planet.
You only need to look at Germany to see the disastrous future Australia is headed to.
From powerhouse economy to the new ‘sick man’ of Europe
For years, Germany was the poster child of net zero. They even had advanced plans to have 80% of their energy grid renewable by as early as 2030.
So why did they suddenly abandon ship and make a U-turn back to traditional fossil fuels?
The short answer — renewables are making Germany’s energy costs so high that it’s destroying them.
According to a CNBC report:
‘The “sick man of Europe” moniker has resurfaced in recent weeks as manufacturing output continues to stutter in the region’s largest economy and the country grapples with high energy prices.’
Right now, Germany is set to lose up to 3% of its industrial capacity to the US and Saudi Arabia where gas and electricity are cheaper.
The country even grappled with the possibility of a nationwide blackout…and had to restart 20 coal-fired power stations just to get them through winter.
Germany’s energy woes reveal the obvious problem with ‘green tech’ that no one seems to admit:
Net zero will actually take us backwards
And the reason for this is simple:
Renewables are the most inefficient and unreliable energy sources we have.
Deustche Welle, Germany’s national broadcaster, explains why:
‘Take grid security: This is much easier to guarantee in a power network with just a few dozen large power stations than in a decentralised network with multiple small-scale electricity producers such as rooftops with solar panels or wind turbines.
‘Another problem is reliability. Because the sun doesn’t always shine and the wind doesn’t always blow, there might be too little power available on particular days and at particular times of the year.’
Germany realised this. And so did other net-zero countries like the UK, France, and Sweden.
Net zero is also incredibly expensive…and frankly impossible to pull off.
Just look at how many critical materials we need to achieve 100% renewable by 2050, according to a peer-reviewed study by the Geological Survey of Finland:
- 9,920 years’ worth of lithium production
- 1,733 years’ worth of cobalt production
- 3,287 years’ worth of graphite production
- 189 years’ worth of copper production
- and 400 years’ worth of nickel production
All in the span of just 20–30 years!
Now, don’t get me wrong…
I don’t think we should abandon efforts to reduce our carbon footprint. After all, climate change is a threat.
But the way we’re doing it — forcing our way to 100% renewable energy — is wrong and dangerous.
Instead, we should consider a solution that’s been staring us in the face all this time.
Nuclear energy.
Because the truth is…and politics aside…
Nuclear is the ONLY viable solution for net zero
I know it’s a controversial statement, and some people may hate me for saying this.
But it doesn’t change the fact that nuclear energy is one of the cleanest and most efficient energy sources we have.
A study published by EDP Sciences compared different energy generation technologies using a metric called EROI or ‘energy return on energy invested’.
A high EROI means it’s a cheap and efficient source — meaning you get far more energy than you put in.
And guess which technology had the highest?
The Konvoi PWR — a German-built nuclear reactor.
Check the chart below:
Source: Semantic Scholar
No wonder the World Nuclear Association claimed:
‘Almost all reports on future energy supply from major organizations suggest an expanded role for nuclear power is required, alongside growth in other forms of low-carbon power generation, to create a sustainable future energy system.’
And according to the International Energy Agency, our nuclear energy output would need to double by 2050 if we’re going to meet our targets.
But what about nuclear’s reputation of being unsafe?
Well, that’s largely untrue, despite what Greenpeace would want you to believe.
In fact, an Oxford University study found that nuclear causes roughly 99% fewer deaths than coal, oil, and gas!
If governments finally accept the facts and take nuclear energy seriously…
Demand for uranium would likely soar
In fact, it’s already happening.
Sweden, once a staunch net-zero supporter, is now shifting back to nuclear power. Wind and solar, they say, are too unstable to meet their energy requirements.
France also followed suit with plans to build 14 new nuclear reactors by 2050 after previously vowing to close all of theirs.
This is causing uranium to trend higher with prices hitting a 12-year high.
It could even send uranium into a bull market after a decade-long bear brought about by the 2011 Fukushima disaster.
I believe the smart move is to have a few ASX uranium stocks on your watchlist right now…so you’re ready to pull the trigger when a potential uranium bull hits.
Our report reveals five promising stocks to get you started in his report, ‘Five ASX Uranium Stocks to Watch in 2023’.
To get a free copy, subscribe to Fat Tail Daily by entering your email address and hitting ‘Subscribe Now’.
You’ll get a downloadable PDF file delivered to your inbox within the next five minutes.
Get our report, ‘Five ASX Uranium Stocks to Watch in 2023’
straight to your email inbox for FREE.
Simply join our free daily Australian investment e-letter Fat Tail Daily by entering your email address in the box below and hit ‘Subscribe Now’.
Aussie investors are sitting on an ‘untapped advantage’
Australia might be only fourth in uranium production…
But we currently have the world’s largest uranium reserves — roughly 28% of the global supply.
It’s a huge untapped advantage…one that we could exploit if the world decides to embrace nuclear energy.
That could put Australia’s uranium miners front and centre in the energy transition…and provide early investors with exciting opportunities.
A great way to get in on this trend is through the five stocks listed in our FREE report.
Get our report, ‘Five ASX Uranium Stocks to Watch in 2023’
straight to your email inbox for FREE.
Simply join our free daily Australian investment e-letter Fat Tail Daily by entering your email address in the box below and hit ‘Subscribe Now’.
