Infrastructure Update – The Nuclear Option

Hey Influence Traders,

A quick note on this Easter Sunday …


As you know (I hope), the big news of the week was infrastructure. 

President Biden’s $2.3 trillion infrastructure plan touches a broad swatch of American business.

Many sectors will benefit from the bill, including auto manufacturers, semiconductor makers and fiber-optic companies. 

But renewable-energy producers deemed vital to addressing climate change might also get a windfall. 

Renewable energy

The proposed infrastructure bill, known as the American Jobs Plan, is President Biden’s attempt to make a lasting impression on the economy — and the nation — by revamping the energy sector.

He wants to cut down on fossil fuels and transition the country to green energy and the use of renewables.

Part of the plan includes the formation of a “clean electricity standard” that would force utilities to cease the use of carbon fuel sources by 2035.

In addition to ordering federal buildings to use clean power, he will be asking for money to promote research and development for clean forms of energy generation and storage.

To fast track his plans, Biden will also eliminate “billions of dollars in subsidies, loopholes, and special foreign tax credits for the fossil fuel industry.”

Nuclear Power

As I noted during the Option Pit Round Robin, many people pushing a climate change agenda do not support nuclear power, including AOC and her Green New Deal.

But John Kerry does, and Kerry is running climate point for the Biden administration as its czar. 

It’s all about who’s in what position folks!

Back in 2017, Kerry did a very public about-face on nuclear power …

He stated, while recalling his own opposition to nuclear power during the first Earth Day in 1970, that addressing the challenge of climate change will require greater use of nuclear power plants in addition to wind and solar energy sources.

Now, pushing nuclear might not take center stage so as not to alienate the climate base, but you will see some subtle, behind-the-scenes #PowerMoves.

For example, just this week, Nuclear Fuel Services, Inc., a subsidiary of Lynchburg, Va.-headquartered BWX Technologies, Inc. (Ticker: BWXT), was awarded a $57.5 million contract from the National Nuclear Security Administration to convert natural or depleted uranium to purified highly enriched uranium metal.

Nuclear Fuel Services will provide a bridge for the NNSA until the Y-12 National Security Complex re-establishes a future oxide conversion capability.

Nuclear is coming!

Cutting Through the Noise for You.


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