TOKYO, Jan. 8 (UPI) -- Japan will heavily subsidize uranium exploration as the global demand for the nuclear plant fuel increases, tightening the supply of imports Japan relies on.
Kyodo News International reports Japan's energy agency will foot half the bill of private companies looking for and exploiting uranium reserves worldwide.
Japan imports all its fuel for its nuclear plants.
As the price of fossil fuels remain high and the threat of global warming has highlighted the need for less polluting sources of energy, nuclear energy looks to expand worldwide.
On top of that, worldwide energy demand continues to grow, led by a continued disproportionate U.S. appetite and the expanding economies of India and China.
Even the United States, which hasn't approved a new nuclear plant license since the late 1970s, expects at least 30 new reactors in coming years.
Japan's Ministry of Economy, Trade and Industry's Natural Resources and Energy Agency will funnel more than $8.4 million in 2007 to companies finding and mining uranium.
"We want to secure concessions in large uranium deposits to improve the level of self-reliance in nuclear fuel cycle," the energy agency said in a statement. The money will head to "six to seven locations, including Australia, which produces more than half of the world's uranium consumption, in addition to Canada and Kazakhstan."
Lack of supply and increased demand pushed the price of uranium to $72 a pound in December, according to Ux Consulting Co., a nuclear fuel consulting firm based in Roswell, Ga. It was $7.10 a pound in 2000.
Japan says government investment in finding the fuel will be crucial in maintaining enough supply.
