Only twelve years ago, in the aftermath of the Fukushima accident in Japan, the world turned its back on nuclear power.
But after Russia's invasion of Ukraine last year forced every nation to reconsider its energy security, all of a sudden generating power by splitting atoms didn't sound so bad.
A popular fuel used by nuclear reactors is uranium.
The global price for the element languished throughout the 2010s. However, it has recently climbed due to the renewed interest in nuclear energy.
And more than one expert reckons the demand is only just beginning.
The Motley Fool equity research analyst Trevor Muchedzi pointed to the latest World Nuclear Association projections to back up his bullishness for the sector.
"Global demand for uranium is set to double from ~65,000 tonnes in 2023 to almost 130,000 tonnes by 2040 under the base case scenario.
"On the contrary, WNA's reference case shows supply only growing to 54,000 tonnes in 2030 and a withering 26,000 tonnes in 2040. Such [a] structural deficit will support high uranium prices in the medium term."
So if you want a piece of this action, which ASX uranium shares should you consider buying right now?
The best uranium investments on the ASX
Shaw and Partners portfolio manager James Gerrish was asked exactly this in a recent Market Matters Q&A.
"We are bullish towards uranium and its respective stocks/ETFs," he said.
"The ideal vehicle will depend on an investor's specific needs. Currently Market Matters holds Paladin Energy Ltd (ASX: PDN) in two portfolios and Cameco Corp (NYSE: CJJ) in our International Equities Portfolio."
Considering that global uranium prices have surged more than 50% over the past few weeks, Gerrish was asked whether the large miners might seek to produce the element.
"A very hot/topical subject… BHP Group Ltd (ASX: BHP) already is a producer of uranium but it's a by-product of their copper production at Olympic Dam," he said.
"In Q4 of 2022, BHP chair Ken MacKenzie said 'while uranium and nuclear energy need to be part of the discussion en route to net-zero, the company had no interest in uplifting its uranium capacity at this time'."
BHP's indifference seems to be for the same reason as why it's not rushing to extract lithium.
"It's all about relative revenue for the Big Australian, with uranium not moving the dial.
"But never say never, as we move toward a clean world."
