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Despite its limitless potential, nuclear energy is stuck in a precarious situation.

Decades of controversy, leftover bitterness from multiple wars, and a few infamous accidents have left quite an impression.

Now, the public has made it clear that massive, insanely expensive reactors aren’t the way to go, especially with renewable energy making huge strides in reducing costs.

These bloated projects simply can’t keep up.

But while nuclear energy may appear to be struggling in the new energy economy, the solution is a groundbreaking feat of engineering.

Allow me to explain…

THE NUCLEAR ADVANTAGE

Nuclear power is a miracle of modern science. The energy output is truly incredible compared with the relatively tiny amount of fuel needed, and every watt of power generated is completely emissions-free.

At their core, nuclear reactors are basically glorified water heaters. Using radioactive elements as fuel, nuclear fission reactions split atoms apart and release enormous quantities of energy.

Energy is transferred as heat, and the heat then boils water and produces pressurized steam, which is utilized in a turbine.

That’s pretty much the nuts and bolts of it.

The U.S. nuclear industry alone generates billions of kilowatt hours of power every year, accounting for roughly 20% of our total energy production.

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To put that into perspective, U.S. nuclear plants generate enough clean energy each year to offset the carbon pollution from around 100 million cars.

And since plants run constantly, with minimal downtime every few years for refueling, nuclear plants ARE the most reliable energy source on the grid today.

So what’s stopping us from switching over to a nuclear-powered society?

Well, nuclear energy can’t shake one nasty stigma...

Historically, the public has been apprehensive about expanding the nuclear industry, with fears and negative sentiment fueled by high-profile disasters that have taken place.

We both can probably name several right off the bat...

Disastrous reactor meltdowns occurring in Chernobyl, Three Mile Island, and most recently Fukushima have all damaged the environment in ways we may not even fully understand.

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And as countries begin shifting their energy consumption to cleaner sources, everyone holds at least some reservation for fear of another disaster.

Surprisingly, however, statistics rank the nuclear industry as one of the overall safer methods of power generation.

Other production methods are exponentially dirtier and more dangerous. Even accounting for differences in scale, fossil fuel energy generation kills and sickens far more people worldwide.

Take a look for yourself:

Despite this, nuclear receives far more than its fair share of public backlash.

Pop culture hasn’t been especially kind either. Genetic mutations, giant monsters, and barrels full of glowing green waste all spring to mind for the average citizen should you even hint at a future powered by nuclear energy.

Public fear over nuclear power lies in the unknown. However, there are a few common nuclear myths that can be dispelled.

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MYTHS VERSUS FACTS

Nuclear energy is powerful and complicated. I certainly won’t contradict that. The physics behind it can be pretty inaccessible to those outside academia.

However, a few inaccuracies can be explained away without diving too deeply into atomic science.

For example, the most common concern is that nuclear energy gives off harmful radiation, whether it be straight from the reactor or later in the form of radioactive waste.

In truth, modern nuclear energy generation releases completely negligible levels of radiation. You are constantly bombarded by far greater levels of radiation from the ground, outer space, and even from eating.

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Put it this way: The coal industry produces about 100 times more radiation on a daily basis. Smokestacks take concentrated amounts of thorium and uranium and spit them out directly into the air.

In fact, coal ash is far more radioactive than nuclear waste itself.

Modern nuclear energy is actually one of the safest methods of power production.

Over the last 50+ years, there hasn’t been a single industry-related death from nuclear energy in the United States.

Nuclear has far less blood on its hands than any other power industry — even solar!

Granted, most solar-related injuries are due to technicians falling off rooftops. But the risk exists nonetheless.

PROFIT POWER: NEXT-GEN NUCLEAR REACTORS

In the past, massive reactors were a necessity.

The only way to offset the massive investment and operating costs behind a reactor was to scale up the facility until power was cheap enough to compete.

Now, a cutting-edge class of reactor is challenging some of the outdated laws of the nuclear industry.

These new reactors are smaller, smarter, and safer than ever before. And the nature of their design means upfront costs are almost nonexistent compared with traditional reactor costs.

The new powerhouses are referred to as small modular reactors (SMRs).

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They’re much smaller than traditional reactors, with each unit producing up to 300 megawatts (MW). They’re also modular, referring to the unit’s ability to operate either independently or chained together with multiple units.

SMRs are flexible, cheap, and low maintenance. They require very little installation site preparation, reducing upfront cost considerably. Off-grid applications and groups that prioritize energy independence will definitely want to take advantage of SMR technology.

As with any new generation of technology, SMRs need an ecosystem to function. Fuel production, equipment, and installation all require different expertise. The company that earned this report’s recommendation is a leader in a new fuel that could cause experts to reevaluate their stance on nuclear energy.

If the nuclear industry is going to survive and stay competitive, it needs the flexibility and versatility that only SMRs can provide.

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NEW RECOMMENDATION: LIGHTBRIDGE CORP. (NASDAQ: LTBR)

Lightbridge Corp. (NASDAQ: LTBR) is a U.S.-based nuclear fuel company that develops next-generation nuclear fuel technology that boosts the output of commercial reactors, which in turn lowers the cost of electrical generation.

Today, the company is making headlines with its completely redesigned Lightbridge Fuel.

Its design uses a uniquely shaped fuel rod to optimize heat transfer and reduce risk of overheating. And since internal temperatures stay almost 1,000 °C cooler than current uranium rods, fuel lasts longer with less risk.

Lightbridge’s design is compatible with both new and old reactors. Its newly demonstrated manufacturing process proved more cost-effective for producing different size fuel rods.

This breakthrough also enables the company to use cheaper surrogate materials, removing expensive uranium rods from the process entirely.

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In the case of SMRs, the increased safety measures are invaluable.

Think about it…

Smaller facilities and fewer personnel are able to operate these reactors, saving huge costs on engineering. However, less supervision can lead to increased risk.

With Lightbridge’s fuel rod, passive safety features kick in to ensure that the system never even approaches a meltdown. The pronged design allows excess space in case the rod swells from heat, and increased metallic cladding guarantees that the fuel is safely isolated.

New contracts and new technology are creating some much-needed buzz around these new reactors. Earnings reported a Q1 EPS of just $0.33, down significantly from $0.77 this time last year.

So far, around 50 different SMR designs have been announced globally, but we’re still in the early stages of this technology, which provides us with a significant growth opportunity.

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You see, Lightbridge is uniquely positioned to capture a massive portion of this market and dominate it due to its top-of-the-line fuel rods. While other companies scramble to perfect the design of their own SMR units, Lightbridge will already be inking deals and locking in new contracts.

And in order to secure a foothold in tomorrow’s incredibly competitive energy market, SMR players are going to need support from companies like Lightbridge.

Lightbridge Corp. (NASDAQ: LTBR) is rated a “Buy” under $9.

Good investing,

Keith KohlEnergy Investor

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