ASX uranium shares haven't joined in the broader energy stock rally in 2022.
Though 2023 could present a different picture.
Soaring fossil fuel prices have sent the S&P/ASX 200 Energy Index (ASX: XEJ) up 39% year to date.
Yet most ASX uranium shares remain in the red.
For example, in 2022:
- The Paladin Energy Ltd (ASX: PDN) share price is down 7%
- Bannerman Energy Ltd (ASX: BMN) shares are down 35%
- The Deep Yellow Limited (ASX: DYL) share price has lost 27%
- And Boss Energy Ltd (ASX: BOE) shares have fallen 2%
Now, it's worth noting that all of the ASX uranium shares named above enjoyed very strong share price gains in 2021. Paladin shares, as one example, soared 267% over the full year. So a bit of a pause or retrace this year wasn't entirely unexpected.
But with nations across the world revisiting nuclear power as a reliable baseload source with negligible carbon emissions, ASX uranium shares could shine brightly again in 2023 and the years ahead.
Could this new UK plan help boost ASX uranium shares?
The United Kingdom doesn't make the list of nations with the most nuclear power plants in the pipeline. That honour goes to China, which has some 17 large-scale nuclear power stations under construction.
However, the UK is eager to extricate itself from the global energy crisis while moving away from coal and gas-fired power.
As The Times reports, Business secretary Grant Shapps is this week expected to announce the proposed creation of a new body called Great British Nuclear.
Great British Nuclear intends to develop 20 to 30 small modular nuclear reactors, built by Rolls-Royce.
The modular reactors are significantly cheaper to develop than traditional large-scale plants, with each reported to be able to power a million homes.
Australia's uranium trove
On completion, the modular reactors will need uranium to provide that power, as will the score of large-scale reactors being constructed in China and other nations the world over.
And with Australia sitting on the world's largest proven uranium reserves, ASX uranium shares could see the good times of 2021 come knocking once more.
