Light At The End Of The Tunnel For Lightbridge

Debra Fiakas profile picture
Debra Fiakas


  • EPA's Clean Power Plan sets standards for low-carbon electric grid and opens door of opportunity for energy industry players.
  • Nuclear fuel developer Lightbridge could be a beneficiary of new emphasis on low-carbon fuel sources.
  • Lightbridge's all-metal nuclear fuel rod offers greater efficiency, better safety to nuclear power plant operators.

The U.S. Environmental Protection Agency is preparing to execute on the Clean Power Plan aimed at reducing carbon emissions from U.S. power generation facilities. Each state has to meet a set of standards set by the EPA based that state's particular circumstances in electrical generation. The carbon pollution limits begin in 2022 and ramp to full effect by 2030.

In the meantime, the power generation industry must begin preparation in order to be ready for the initial standards. The lower-carbon emitting power sources will clearly be in favor as a consequence of the new standards. That could mean a new lease on life for the nuclear industry, which has been out of favor due to safety concerns. Most investors might first think of the uranium mining industry as a beneficiary of a nuclear renaissance. However, there is another contestant in the game that could be a big winner in the drive to clean up the electrical grid.

Lightbridge Corporation (NASDAQ:LTBR) is a developer of nuclear fuel technologies. The company has long been known for its efforts to perfect thorium-based fuels as an alternative to uranium. However, it is an all-metal fuel that could be the light at the end of the tunnel for Lightbridge as it navigates the evolving nuclear power industry. The company has developed and patented a novel design that replaces conventional tubes filled with ceramic uranium pellets now used by pressurized water reactors. Lightbridge's fuel rods are also produced differently. A co-extrusion technology is used to shape a single piece of solid fuel rod from a metallic matrix composed of a uranium and zirconium alloy.

The Lightbridge fuel rod affords a number of advantages. Most important for nuclear power plant operators is the potential for a 10% to 17% increase in power generating capacity from existing reactors. For new reactors the "power

This article was written by

Debra Fiakas profile picture
Ms. Fiakas is an experienced investment professional with a diversified and successful track record as a research analyst and as an investment banker. Her career includes experience in all aspects of the equity capital markets with particular emphasis on emerging growth companies operating in technology, energy and conservation sectors. Ms. Fiakas is Managing Member of Crystal Equity Research, LLC. Visit the Crystal Equity Research site: (

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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