The Conversation (0)
Jan. 18, 2011 09:39AM PST
Most of mainland China’s electricity is currently produced from fossil fuels, with approximately 80 percent from coal, 2 percent from oil, and 1 percent from gas. At present 13 reactors are in operation producing roughly 10,000 MWe net and the 27 reactors under construction are expected to produce around 27,500 MWe net.Additional reactors are planned, including some of the world’s most advanced, to give more than a tenfold increase in nuclear capacity to 80 GWe by 2020, 200 GWe by 2030, and 400 GWe by 2050.
By Dave Brown – Exclusive to Uranium Investing News
Most of mainland China’s electricity is currently produced from fossil fuels with approximately 80 percent from coal, 2 percent from oil, and 1 percent from gas. Hydropower is also an important source in the energy mix for the country, attributable for 15 percent of electricity produced. Two large hydro projects are recent additions: Three Gorges of 18.2 GWe and Yellow River of 15.8 GWe. In November, analysts were suggesting that a shale gas market will emerge quickly in China as the players ramp up activities in the unconventional gas sector, which is likely to experience double-digit growth year-on-year. China is still seen to be at a preliminary stage of developing unconventional gases such as shale gas.
Urbanization, industrialization and rapid growth in demand have given rise to power shortages; the reliance on fossil fuels has led to much air pollution. The economic loss due to pollution has been estimated by the World Bank to be almost 6 percent of the nation’s gross domestic product (GDP). In 2009, power shortages were most acute in central provinces, particularly Hubei, and last December the Central China Grid Co. posted a peak load of 94.6 GW.
Underlying Disadvantage
Although coal is currently the main source of energy for China, most reserves are in the north or northwest of the country and this presents a significant logistic problem. Nearly half the country’s rail capacity is used in transporting coal. China is well advanced in developing and deploying supercritical and ultra-supercritical coal plants, as well as moving quickly to design and deploy technologies for integrated coal gasification combined cycle (IGCC) plants. The government has forced the retirement of some smaller inefficient coal fired plants with over 60 GWe closed over the last 4 years. This has reduced annual coal consumption by more than 69 million tonnes and annual carbon dioxide emissions by 139 million tonnes; however, because of a continued reliance on old coal fired plants, electricity generation accounts for much of the country’s air pollution. This context provides a compelling reason to increase nuclear share and enables tremendous opportunities for uranium mining companies and investors.
China recently eclipsed the US as the world’s largest contributor to carbon dioxide emissions and the Energy Information Administration (EIA) predicts that China’s share in global coal related emissions will grow by 2.7 percent per year through to 2030, accounting for approximately 52 percent of the projected world total. Total carbon dioxide emissions in China are projected to grow by 2.8 percent per year through 2030, roughly attributable for 28 percent of world total. As a relative comparison, carbon dioxide emissions in the US are projected to grow by 0.3 percent per year.
Nuclear Power
Nuclear power has already become an important role, particularly in coastal areas where the economy is developing rapidly and less accessible to the coal sources. Generally, nuclear plants can be built close to centres of demand, whereas suitable wind and hydro sites are more remotely located. Building nuclear power was initiated in 1970 although the industry has moved into a rapid development phase since 2005. Additional reactors are planned, including some of the world’s most advanced, to give more than a tenfold increase in nuclear capacity to 80 GWe by 2020, 200 GWe by 2030, and 400 GWe by 2050.
Technology has been drawn from France, Canada and Russia, with local development based largely on the French element. Very recent allegations from a source in the French government regarding corporate espionage involving the Chinese obtaining information for electric vehicle technology has followed a general distancing over the last 12 months. Last week China indicated that it had developed technological advancements to reprocess spent nuclear fuel after working on this process for more than two decades. The latest Chinese nuclear technology acquisition was obtained from the US and France. The Westinghouse AP1000 is the main basis of technology development in the immediate future. The company indicates that about 50 percent of global nuclear plants currently operational are based on Westinghouse technology.
Earlier this year, China National Nuclear Corporation (CNNC) announced that it received approval from the government to start preliminary work for the construction of 4 additional nuclear units in China. The units will be located at the existing Tianwan NPP and the new Xudabao nuclear project. It is expected that the first of the newly announced generators based on Westinghouse technology will be operational by 2017. With a sixty-year design life and an eighteen-month fuel cycle uranium investors can expect the implications in growth of this electricity source to yield significant returns. At present in China 13 reactors are in operation producing roughly 10,000 MWe net and the 27 reactors under construction are expected to produce around 27,500 MWe net.
Featured Energy Investing Stocks
Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
