Annual report and accounts 2020
|Classification||1.01.8.30/70 (URENCO/UCN ALMELO - GENERAL)|
From the publication:
Global enrichment market In the US and Europe, nuclear generated electricity output has closely followed last year’s trends, albeit lower due to depressed electricity demand during the pandemic. The impact has been particularly felt in Europe, where a few nuclear reactors were idle due to low power prices or reduced demand. The market price for enrichment has continued to increase in 2020. Prices are back above $50 per SWU from their low point of $34. Uranium prices also increased as a result of COVID-19 measures and a reaction to the production restrictions and mothballing of mines and milling operations. Despite this, our view is that market prices need to increase in the long run. They are not sufficient for investment in new enrichment plants or reinvestment in existing facilities. While we continue to significantly reduce operating and capex costs, the investment required or managing depleted uranium and the eventual dismantling and decommissioning of our plants continues to rise. However, we remain positive about the future and Urenco’s long term sustainability, and in 2020 we increasingly saw long dated business being contracted at price levels which will enable us to plan for reinvestment in our plants. Nuclear is also the second largest source of clean energy used today and will continue to play a critical role in providing baseload electricity. Current and next generation reactors require diverse and reliable uranium enrichment services, which Urenco has a key role in providing.