Friday, September 30, 2005

Decision on UK nuclear power by end of 2006

FT.com / Energy Utilities Mining / Renewable energy - Decision on UK nuclear power by end of 2006

By Jean Eaglesham, Political Correspondent
Published: September 28 2005 22:05 | Last updated: September 28 2005 22:05

The government will give a “yes or no” to nuclear power by the end of next year following a decision by Tony Blair to inject “greater urgency” into the nuclear debate.


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Malcolm Wicks, energy minister, said on Wednesday a government review of energy policy next year would “have to include a proposal about nuclear”. He added: “The proposal could be no it could be yes.”

At this week's Labour party conference, the prime minister appeared to give a strong signal of support for replacing the UK's ageing nuclear power stations, all but one of which is due to be decommissioned by 2023.

Previously, Mr Blair had committed to making a decision on new nuclear stations by the end of this parliament.

The acceleration of the timetable reflected the importance Mr Blair attached to energy policy, Mr Wicks said in an interview with the Financial Times. Mr Blair is chairing a new cabinet committee on energy and the environment, which will drive next year's review.

In his speech to the party conference, Mr Blair referred explicitly to nuclear power and emphasised two planks of energy policy climate change and security of supply. On both counts nuclear power is seen as having an edge on alternative energy sources.

Mr Wicks also suggested that nuclear and renewable energy were complementary. “Some people are fearful that what Tony Blair said undermines the renewables industry. Well, it doesn't. I'm confident that by 2020, we're going to be getting 20 per cent [of electricity] from renewables.”

The decision to build new nuclear stations was not a foregone conclusion. “I happen to be nuclear-neutral and so is Alan Johnson [trade and industry secretary]. I think that's helpful.”

Majority of Europeans oppose nuclear power

Majority of Europeans oppose nuclear power

Published: Thursday 29 September 2005 | Updated: today 12:43


Majority of Europeans oppose nuclear power


In Short:

Results from a Eurobarometer survey reveal that EU citizens remain uninformed about radioactive waste and are sceptical about the credibility of information from national governments and the media on nuclear energy.

Background:

Fear of climate change and the crisis surrounding diminishing oil supplies has revived the debate on the future of nuclear power. Growing economies in China and India have led to radically increased levels of fuel consumption and accelerated the speed with which resources will run out.

Since the early 19th century the world's economy has relied on the use of cheap fossil fuels such as oil, gas or coal. However, with oil prices surging above $65 per barrel the EU is becoming progressively more concerned about the effects of high oil prices on its economy. The threat of climate change, which scientists largely attribute to the excessive burning of fossil fuels, has also renewed interest in the use of nuclear power as an alternative energy source.

Issues:

A Eurobarometer survey conducted in February and March 2005 analysing EU public opinion on nuclear energy has revealed an underlying lack of knowledge concerning nuclear power, alongside a growing distrust of governments and the media on radioactive waste management issues. The survey results included the following findings:

On radioactive waste

Three quarters of EU citizens (74%) claim that they are ‘not well informed’ about radioactive waste.
Citizens in Sweden consider themselves to be most informed on this issue, with one in two respondents (51%) answering positively, followed by Slovenia (46%) and Finland (43%).
Respondents from Greece, Italy, (16%) Spain and Portugal (15%) were the least informed about radioactive waste.
Approximately eight respondents out of ten (79%) answered that they believed ‘all radioactive waste’ to be ‘very dangerous’.
In Finland, projects are already underway to construct more nuclear power plants and plans to develop further reactors are being discussed. Faring only slightly better than the EU southern states in terms of knowledge possessed on nuclear energy, France (22%) - the world’s largest nuclear power generator per capita - is also committed to expanding its nuclear reliance. Other nations choosing to pursue the nuclear route are Poland, Slovakia and the UK.

On nuclear energy

Only four out of every ten interviewees (37%) answered that they were in favour of nuclear energy.
While 30% of participants said that they were ‘fairly in favour’, only 7% of the EU citizens interviewed claimed to be ‘totally in favour’ of nuclear energy.
31% of the people interviewed said they were 'fairly opposed' to energy produced by nuclear power stations while 24% stated that they were 'totally opposed'.
Nuclear energy proved to be most popular in Hungary (65%), followed by Sweden (64%), the Czech Republic (61%) and Lithuania (60%).
Nuclear energy was least popular in Austria where 88% of interviewees stated that they were opposed to this type of energy.
61% of interviewees believed that the nuclear option would reduce dependency on oil and 62% of EU citizens interviewed agreed that nuclear power is advantageous in terms of producing fewer greenhouse gas emissions.
Replicating results from a similar survey taken in 2001, NGO’s (39%) and independent scientists (38%) remain the two most trusted sources of information regarding the impact and effects of nuclear energy.
In comparison to four years ago, latest opinion demonstrates a significant loss in confidence with both national governments (down from 29% to 19%) and the media (down from 23% to 13%) as reliable sources of information on nuclear issues.
Despite being the nation that proved most informed on the issue and one of its biggest supporters, Sweden has proposed abandoning the nuclear route within the next forty years. Along with Belgium, Germany and Spain, the Swedish government has decided to phase out nuclear power altogether and rely purely on hydro and bio-energy. Austria has adopted a law prohibiting the operation of nuclear power stations for the production of electricity, thus abandoning the use of nuclear energy and setting itself the task of creating a nuclear energy free zone in central Europe. Conversely, the Czech Republic is planning to build two new reactors.

Positions:

According to FORATOM – the trade association of the European nuclear industry, the survey shows that “the opinions expressed are not really based on knowledge of the subject, which remains very low. Instead, they are based more on personal conviction or political affiliation. Opinions expressed on the question of risk remain grounded in basic anxieties and, therefore, are unavoidably negative.” However, FORATOM emphasise the importance of engaging the public in the nuclear debate as “the greater the level of knowledge, the more favourable the opinion that citizens have of nuclear energy”.

On the results of the survey, Mark Johnston, EU Energy Policy Campaigner for Greenpeace said: “as expected, most people in Europe are still against atomic power, despite the nuclear industry heavily promoting itself. It would be good to put these results alongside a survey on clean energy options, especially renewables and efficiency, which we know are popular”. Johnston revealed little surprise about the minimal level of knowledge interviewees claimed to have on nuclear energy: “Both the industry and most governments are habitually secretive about such issues. Even when we ask the European Commission for the nuclear data it holds, often it is refused and we have to really push to get it.” Johnston was critical of the survey for deliberately reflecting the Commission’s political agenda and its 2003 ‘nuclear package’.

Announcing their position on the survey, Friends of the Earth said: “The most important fact is: there is still a majority of European Union's citizen against nuclear power.” According to Friends of the Earth, the lack of knowledge concerning nuclear waste issues is: “a clear reference to the European Commission, European governments and the nuclear industry to provide comprehensive information about the real dimension of the nuclear waste problem. Then it would become clear, that there is still no safe solution (and might never be) for what to do with the tremendous amounts of radioactive waste generated in a nuclear reactor.”

Nuclear power: Americans still haven't warmed up to it

Lahontan Valley News and Fallon Eagle Standard - Opinion

September 30, 2005

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Is it time to seriously think about nuclear energy as the nation's primary power supply?

The future of electrical generation is assuredly not in fossil fuels, which most scientists and even politicians agree are the source of global warming and greenhouse gas emissions. So what does that leave us? Solar and geothermal, while clean and renewable sources of energy, fall far short in supplying the nation with the power it voraciously consumes. Coal is not found in quantities large enough and also produces pollution.

While nuclear energy is certainly renewable, it can be argued that it really isn't green power in the true sense of the word. Why? Well, Yucca Mountain ought to suffice as the answer. Nevada politicians are fighting the repository's development to see that the byproduct of nuclear energy and weapons development is not stored in Nevada.

That's the problem with nuclear power, it produces waste and not just any waste, but potentially dangerous and long-lived waste. Nuclear energy also has a terrible image problem that has not been rehabilitated much since the Three Mile Island reactor meltdown in 1979.

There are certainly proponents of a greater use of nuclear power generation. An organization pushing for nuclear energy that calls itself, literally, Nuclear Power Now, argues that splitting atoms is the world's largest source of emission-free energy, and the nuclear industry generates only a fraction of the solid waste that is produced by power plants burning coal.

The organization notes that nearly 20 percent of electricity generated in the United States today comes from nuclear power plants, and in 40 years not a single death has been attributed to the operation of a civilian nuclear power plant.

According to the International Atomic Energy Agency, there are more than 400 nuclear plants located around the world.

No county has embraced nuclear energy quite like France, which generates 75 percent of its electricity from nuclear reactors. It has achieved a high level of self sufficiency that has greatly reduced its dependence on foreign energy sources and fossil fuel.

Maybe France and its widespread use of nuclear power is the future as the clamor about greenhouse emissions grows louder. But we're not quite there yet.

This country certainly has to find a way to deal with nuke waste beyond entombing it in the earth. Only then will nuclear power gain acceptance as a relatively benign source of power.

Thursday, September 29, 2005

Has Blair got the guts to take the nuclear option?

Telegraph | Opinion | Has Blair got the guts to take the nuclear option?

By Bernard Ingham
(Filed: 29/09/2005)

Is Tony Blair about to discover the courage that has eluded him for eight years? Is he, for a change, going to do the right thing for Britain? I ask because he has just given Greens the vapours by telling his party conference all options are open for tackling climate change, including building a new generation of nuclear power stations.








In fact, this does not take us much further forward. Blair, reputedly pro-nuclear, has led a government that for years has ruled the development of nuclear power neither in nor out.

The most we have been promised is a decision in this Parliament. Superficially, events are moving towards a conclusion. The Government is reviewing the various elements of its strategy, including renewable sources of energy, progress with reducing greenhouse gases - or lack of it, since volumes are up for the third year running - and the nuclear option.

It has appointed a Nuclear Decommissioning Agency to clean up old nuclear sites, though its strategy, now out for consultation, implies the end of nuclear power in Britain. And its much-derided Committee on Radioactive Waste Management promises us a report next July on the favoured method of disposing of longer-term radioactive wastes, though not where to put them.

So, we have to ask if Blair, in the second half of his final term, could overcome the policy paralysis that afflicts most democratic governments as an election looms and what such a decision might be worth when he is no longer there to carry it out.

Even though the Green Party polled little more than one per cent of the vote at the last election, Labour's energy policy has been dominated by obeisance to an environmentalism that irrationally regards nuclear as deadly poison. Indeed, it can hardly be said that we have an energy policy. The dominating consideration of the Energy Policy White Paper of 2003 was reducing greenhouse gas emissions by 60 per cent by 2050. Without consulting engineers, it chose the Green route to achieve this: a combination of renewable sources of energy - wind, waves, tides, solar, geothermal, biomass, chicken muck - energy conservation and natural gas.

Coal and nuclear, which still generate about half of our electricity, were to be allowed to disappear - "dirty" coal for environmental reasons and nuclear for dogmatic ones, unless it were proved there was no alternative.

There is some evidence that the realisation is dawning that we cannot do without nuclear power - and not just because it emits next to no greenhouse gases. Renewables, required to produce 10 per cent of our electricity by 2010, can now scarcely manage four per cent and most of that is large-scale hydro-electric. Intermittent wind, effectively the only substantial renewable generator, struggles to produce 0.5 per cent after 15 years' development at enormous expense, as the Commons' Public Accounts Committee has just revealed.

Energy conservation is getting nowhere. As Fells Associates have pointed out, it has been high on the agenda for 30 years and demand has risen by 60 per cent. Electricity demand rises at 1-1.5 per cent a year.

This leaves natural gas, which is now having to be imported, since North Sea production is falling. The strategic risks of importing 80-90 per cent of our energy from such politically unstable areas as Russia, the Middle East, Algeria and Nigeria, at unknown but probably soaring prices, are concentrating minds.

So is the realisation that clean coal technology - sulphur scrubbers plus the possible sequestration of carbon dioxide, the main greenhouse gas, in old North Sea oil wells - could double the price of electricity.

In short, the Government's energy policy is up the spout. And thanks to its regulation of the electricity market to squeeze prices, nobody is keen to build any sort of new power station. We are left with an impaired power supply industry that would struggle to keep the lights on in the cold winter being forecast by the Met Office.

Since it could take 10 years to build a nuclear power station, nuclear offers no immediate salvation either in terms of supply or CO2 reduction. In the longer term, it would provide security of supply at competitive prices, and it would be clean into the bargain.

The first step is to remove all the Government logs that are in danger of jamming the British economy. Is Blair the man to do it? Hmm...

Sir Bernard Ingham's paper on nuclear energy, "A failure to act inspired by political cowardice?", is published today by the Centre for Policy Studies

Wednesday, September 28, 2005

Japan Sets Its Sights On Nuclear Power

WSJ.com - Japan Sets Its Sights On Nuclear Power

By SHIGERU SATO
DOW JONES NEWSWIRES
September 13, 2005

TOKYO -- Japan is taking a very long-range look at energy. By the end of this century, under the Ministry of Economy, Trade and Industry's road map to 2100, nuclear, hydrogen, solar, wind, and wave power will likely be the main energy sources replacing oil and natural gas.

The plan, which centers on nuclear power, faces obstacles from political and commercial interests. Behind the vision are such risks to Japan's traditional energy supplies as the potential for sustained high oil prices and the possibility that global reserves will be depleted. Also, as a signee of the Kyoto protocol international climate treaty, Japan is trying to cut emissions of greenhouse gases.

"Technology is the key to creating a new form of energy security, and, at the same time, a troubleshooter for environmental issues," says Kazuya Ashida, deputy director of general policy at the Agency for Natural Resources and Energy.

Japan's long-term plan is based on the assumption that global oil output will peak in 2050 and natural-gas output will reach its zenith in 2100, Mr. Ashida says. The backbone of Japan's future energy security will be nuclear generation, he says.

Nuclear power should represent at least 30% or 40% of Japan's overall electricity output starting in 2030, the Atomic Energy Commission says in its draft nuclear-policy plan. Producers are forecast to generate a tiny 4.9% of electricity output from oil-fired thermal-power plants in 2030, compared with 28.6% in 1990.

Hajimu Maeda, AEC commissioner, suggests Japan cut its reliance on natural uranium and prepare to switch to recycled nuclear fuel, saying global uranium prices will climb in the long term as China and India embark on their own nuclear-power-plant projects.

The AEC's draft plan encourages use of plutonium-thermal-power generation and development of nuclear-fuel-reprocessing plants. "Pluthermal" generation burns plutonium-uranium mixed oxide fuel, known as MOX, which is made from nuclear reactors' spent fuel.

The trade ministry has granted three power utilities the use of pluthermal generation at five reactors. By 2011, the industry aims to use it at 16 to 18 reactors.

Meanwhile, Japan Nuclear Fuel Ltd. will enter the final phase of test operations in December to separate plutonium from spent nuclear fuel. Commercial operation is slated to begin in May 2007.

Still, "There are challenging issues to tackle before pushing further ahead with nuclear projects," says Satoru Tanaka, quantum engineering professor at the University of Tokyo.

Public mistrust of nuclear energy lingers from a 2002 scandal over falsified inspection data by Tokyo Electric Power Co. and the 2004 accident at Kansai Electric Power Co.'s Mihama nuclear station.

The slowing growth of electricity demand is another potential deterrent to investment in new nuclear plants and technology, says Mr. Tanaka, who is also the head of the Nuclear Energy Subcommittee of the Advisory Committee for Natural Resources and Energy.

Japan's electricity demand is set to peak in 2022, due partly to the shrinking population, says the latest study by the independent Central Research Institute of the Electric Power Industry. Leading power utilities are reluctant to invest heavily in new nuclear-power plants, due in part to the liberalization of the retail electricity market that is under way.

However nuclear its future, Japan needs imported oil and gas to keep its economy pumping in the short term. The government is promoting energy conservation by households and industry to cushion increased hydrocarbon costs.

Also, Japan's shrinking population means it will have much-sought-after spare capacity to refine crude oil into gasoline and other products that will be in demand from China and other importers. To that end, the country is still working to secure supplies abroad, such as with an East Siberian pipeline to ship crude oil to the port of Nakhodka on Russia's Pacific Coast, and a liquefied-natural-gas production project on Russia's Sakhalin Island.

Some companies are turning to nonnuclear technologies to secure energy for the future, but it isn't clear yet whether they will be commercially viable.

This month, Fuji Heavy Industries Ltd. and Tokyo Electric agreed to jointly make electric vehicles that can run 80 kilometers a day on a single charge. But the companies say the size of demand is unclear, and they have just begun to determine the project's viability.

Mitsubishi Corp. has developed technology to produce pressurized hydrogen through the electrolysis of water, but hasn't yet commercialized it.

Meanwhile, oil refiner Showa Shell Sekiyu KK will start making solar-power panels for household generation at a factory in southern Miyazaki prefecture in 2007

Total May Use Atomic Power At Oil-Sand Project

WSJ.com - Total May Use Atomic Power At Oil-Sand Project

Alternative to Costly Gas
Is Sought for Canada Fields;
Fear of Environmentalists
By DAVID GAUTHIER-VILLARS
DOW JONES NEWSWIRES
September 22, 2005; Page B6

PARIS -- French oil giant Total SA, amid rising oil and natural-gas prices, is considering building a nuclear power plant to extract ultraheavy oil from the vast oil-sand fields of western Canada.

This comes as oil prices -- driven even higher by Hurricane Katrina and now the threat of Hurricane Rita -- are removing lingering doubts about the long-term profitability of extracting the molasseslike form of oil from sand, despite the fact that the output is much more expensive to produce and to upgrade than is conventional crude.

At the same time, prices of natural gas -- which oil-sands producers have relied on to produce the steam and electricity needed to push the viscous oil out of the ground -- have risen 45% in the past year. That is prompting Total, which holds permits on large fields in Alberta that contain oil sands, to consider building its own nuclear plant and using the energy produced to get the job done.

Despite the attraction of abundant electricity, industrial companies have been reluctant to install nuclear devices, however small, on their premises because of safety and cost concerns. Small nuclear reactors have been used for purposes other than generating commercial electricity, but mainly to power ships -- submarines, icebreakers and aircraft carriers, for example.

A notable exception was the Soviet Union, which built four small nuclear reactors at Bilibino, inside the Arctic Circle, in the mid-1970s to operate a gold mine. The plant still is in operation.

Even now, despite wanting to cut production costs, few oil-sands producers have been willing to talk openly about the nuclear possibility for fear of protests from environmentalists. Nuclear power doesn't bring back good memories in Alberta, where in the 1950s U.S. and Canadian scientists looked into the possibility -- later abandoned -- of detonating an atomic bomb to bring oil to the surface.

Total would speak about its plan only in general terms. "It's not foolish to look into the nuclear option," Yves-Louis Darricarrère, Total's director for natural gas and power, said in a recent interview. "We have a team looking into it."

Total's interest is the latest sign that nuclear energy is making a global comeback. Finland commissioned a new reactor in 2003, the first such order in Western Europe in 13 years. France has chosen a site in Normandy where a reactor will be built. The U.S. hasn't commissioned a new nuclear plant for three decades, but the industry is talking seriously about a revival, encouraged by the Bush administration and the rising cost of fossil fuel.


In Canada, Total holds half of an oil-sands permit in Alberta and has secured more heavy-oil acreage with the purchase of Deer Creek Energy Ltd., located in the same western province. Total said it plans to invest $7 billion in Deer Creek, on top of the $1.4 billion it expects to pay for the company. The company says it could one day produce 200,000 barrels of heavy crude a day, close to 8% of Total's current global output.

Canada's oil sands contain 174 billion barrels of recoverable reserves, the world's second-largest oil resource behind those of Saudi Arabia, according to Canadian government estimates.

Oil sands, a mixture of grit and a tarlike grade of crude oil known as bitumen, were discovered more than a century ago but have been considered economical to produce only in recent years as the price of oil has surged. In addition to nuclear power, producers are considering burning oil-sands residue and coal as alternatives to natural gas to make the steam needed for extraction.

Mr. Darricarrère said a nuclear power plant would help Total comply with tougher constraints on carbon dioxide and other so-called greenhouse-gas emissions. Although they generate toxic, radioactive waste, nuclear reactors don't emit greenhouse gases that scientists believe contribute to global warming.

The government of Alberta said that although there are no nuclear power plants in the province, there is no moratorium on nuclear energy. "We don't favor one form of energy over another," said Alberta Energy Ministry spokeswoman Donna McColl. "We let the market decide."

Atomic Energy Canada Ltd., the Canadian government-owned nuclear-power developer, has proposed building a regional nuclear power plant in northern Alberta to provide electricity and steam to oil-sands projects, according to company spokesman Dale Coffin. He said the proposal has been received with "great interest" by Alberta oil-sands producers.

Still, Jerry Hopwood, Atomic Energy Canada's general manager of product applications, said it would take several years to get a regulatory application on the table. Among other hurdles, any new nuclear project in Canada would face rigorous environmental scrutiny, from both provincial and national authorities.

Such reviews also would apply to any application for a Total nuclear plant. "I'm not confident that the public in Alberta would be supportive of opening Alberta to the nuclear industry," said Dan Woynillowicz, an oil-sands expert with Pembina, an environmental policy research institute based in the province.

Mr. Darricarrère said Total is relying on Areva SA, the French state-run nuclear engineering company, to define what type of reactor might suit its needs in Canada. Research is focusing on a dedicated reactor significantly smaller than those used by utility companies to produce electricity for large city grids.

Areva said discussions with Total are centering on a new type of reactor, known as a High Temperature Reactor, with a capacity of around 500 megawatts, about a third of the size of a traditional reactor. Areva also has been approached by other oil companies but discussions are most advanced with Total, Jean-Jacques Gautrot, Areva's director for international operations and marketing, said.

A spokesman for Imperial Oil Ltd. of Canada, an affiliate of Exxon Mobil Corp., which operates some of the world's largest oil-sands operations, said it looked into the nuclear option in the past but didn't pursue it because of cost and technology challenges.

Shell Canada Ltd. said it isn't considering nuclear power as part of its oil-sands plans. Rather, the company said it is looking into the possibility of turning asphaltene, very heavy oil, into gas to save on its natural-gas bill.

Decision on UK nuclear power by end of 2006

FT.com / Home UK - Decision on UK nuclear power by end of 2006

By Jean Eaglesham, Political Correspondent
Published: September 28 2005 22:05 | Last updated: September 28 2005 22:05

The government will give a “yes or no” to nuclear power by the end of next year following a decision by Tony Blair to inject “greater urgency” into the nuclear debate.


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Malcolm Wicks, energy minister, said on Wednesday a government review of energy policy next year would “have to include a proposal about nuclear”. He added: “The proposal could be no it could be yes.”

At this week's Labour party conference, the prime minister appeared to give a strong signal of support for replacing the UK's ageing nuclear power stations, all but one of which is due to be decommissioned by 2023.

Previously, Mr Blair had committed to making a decision on new nuclear stations by the end of this parliament.

The acceleration of the timetable reflected the importance Mr Blair attached to energy policy, Mr Wicks said in an interview with the Financial Times. Mr Blair is chairing a new cabinet committee on energy and the environment, which will drive next year's review.

In his speech to the party conference, Mr Blair referred explicitly to nuclear power and emphasised two planks of energy policy climate change and security of supply. On both counts nuclear power is seen as having an edge on alternative energy sources.

Mr Wicks also suggested that nuclear and renewable energy were complementary. “Some people are fearful that what Tony Blair said undermines the renewables industry. Well, it doesn't. I'm confident that by 2020, we're going to be getting 20 per cent [of electricity] from renewables.”

The decision to build new nuclear stations was not a foregone conclusion. “I happen to be nuclear-neutral and so is Alan Johnson [trade and industry secretary]. I think that's helpful.”

Nuclear plant delight at Blair nuclear power peldge

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CUMBRIA moved a step closer to getting a £1bn replacement power station at Sellafield after Prime Minister Tony Blair gave his most public thumbs-up yet for the nuclear industry.

Mr Blair told delegates at the Labour Party Conference in Brighton that the government would publish proposals on energy policy next year.

Mr Blair said: “For how much longer can countries like ours allow the security of our energy supply to be dependent on some of the most unstable parts of the world?

“For both reasons the G8 agreement must be made to work so we develop together the technology that allows prosperous nations to adapt and emerging ones to grow sustainably, and that means an assessment of all options, including civil nuclear power.”

Amicus trades union convenor at Sellafield, John Tear, said today: “What Tony Blair said fits in with all that we have been saying as a trades union. That we need a balanced energy policy and that we can’t rely on gas from unstable parts of the world.

“It is good news for the nuclear industry and good news for the country.”

Industry experts say each new nuclear power station could cost between £1bn to £2bn.

Why nuclear power is not the answer

Friends of the Earth: Press Releases: Why nuclear power is not the answer

Sep 28 2005

Following the Prime Minister's announcement at the Labour Party Conference that nuclear power must be considered as a way of tackling climate change, Friends of the Earth spelt out why it is not the solution.

There are more cost effective and far safer ways to reduce UK greenhouse gas emissions - the UK has a significant renewable energy resources.

The Government could show global leadership on developing renewable resources, rather than promoting nuclear power which would increase the risk of nuclear weapon proliferation around the world

Nuclear power is expensive and has consistently proved more expensive than industry claims. In 2003, the Cabinet Office estimated that nuclear power would cost more per KWh than either on-shore or off-shore wind.

Nuclear power does not necessarily offer substantial reductions in carbon dioxide emissions. Indeed doubling nuclear power generation in the UK would cut our carbon dioxide emissions by no more than eight per cent.

Nuclear power would not make the UK self-sufficient in energy so will not guarantee security of supply. It won't replace gas, which we will increasingly get from Norway and the Netherlands. Nor will it replace oil, with much of our imports coming from Norway. We have significant renewable sources, including biomass, with which we can produce all our electricity.

Nuclear power creates nuclear waste which poses a threat to public safety for generations to come because no solution has been found for its disposal. Management of the waste is also expensive.

Nuclear energy only produces electricity and will not replace petrol or diesel as a fuel for cars, lorries, ships and planes - road transport is currently the source of around 22 per cent of UK carbon dioxide emissions, and aviation is the fastest growing source of CO2 emissions

Nuclear power will not replace gas for heating our homes and for business - natural gas currently accounts for 33 per cent of our total final energy use [1].

Nuclear energy will not meet our short-term energy needs. Even if give the go-ahead, according to the nuclear industry, new nuclear power stations would not come on-line for an estimated 10-15 years [2].

Nuclear power has a poor safety record and is a potential target for terrorists.
Friends of the Earth Executive Director Tony Juniper said:

"Nuclear power is not a solution to climate change. It could only ever provide for a tiny proportion of our energy needs and this would be at great cost to the taxpayer, the environment and would pose a threat to the safety of the public. Clean technologies are available and they need the Government's support. Tony Blair must stop talking to the nuclear lobby and speed up investment low -carbon, renewable and efficient energy technologies."

Friends of the Earth's Big Ask campaign is calling on the UK Government to set legally binding targets to cut carbon dioxide emissions by three per cent each year. For more information see www.thebigask.com

Why nuclear power is not an achievable and safe answer to climate change (PDF†)

[1] www.dti.gov.uk/energy/inform/dukes/dukes2005/01main.pdf (PDF†)

[2] www.energy-choices.com/page.aspx?pageId=7

Sky-high power prices give British Energy a boost

Latest Business News and Financial Information | Reuters.co.uk

LONDON (Reuters) - Sky-high power prices helped to cement a first quarter profit at British Energy Group Plc following January's financial restructuring, the country's biggest electricity maker said on Wednesday.

The nuclear power generator, which pushed back into the black a few months ago, also said that as of September 25 it had sold some 85 percent of its planned output for the year to March 31 at an average 31.80 pounds per megawatt hour.

In July, British Energy said it had fixed around 75 percent of its planned output for the 2005/06 financial year at an average contracted price of 29.80 pounds.

However, the firm said levels could have been better were it not for problems at its Hartlepool and Heysham 1 facilities, which the firm hopes will be back to normal later next month.

British Energy runs eight nuclear power stations and one coal plant across the country.

It maintained its forecast for 63 terawatt hours of nuclear output for the next two years but admitted this goal was "more challenging" after upping its expected output loss from the two problem plants from 1.0 terawatt hours to 1.5 terawatt hours.

"The company's improved profitability and positive cash contribution in the first quarter reflects higher realised prices for summer power contracts and underlines our confidence in British Energy's prospects," Chief Executive Bill Coley said.

"We remain tightly focussed on improving the operational reliability of our plant -- and resolving the current issues at Hartlepool and Heysham 1," Coley added.

British Energy relisted its shares in January after a debt for equity swap which wiped 1 billion pounds debt off its balance sheet and transferred nuclear liabilities, including certain decommissioning costs, to the British government.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for the first quarter was 121 million pounds on revenues of 521 million pounds, ahead of some analysts' expectations.

The company said recent restructuring and accounting rule changes meant comparisons were difficult to make.

In the 2-1/2 months to March 31, following the restructuring, EBITDA was 129 million pounds.

British Energy said it had 510 million pounds in cash and liquid funds and a net debt of 166 million pounds at the end of the period. Pretax profit was 45 million pounds.

Total power output for the quarter was 17.4 million terawatt hours against 16.4 TWh the year before.

WARY ON OUTPUT

Analysts were pleased with the financials but wary on output projections.

"In our view, the impact of results above expectations will be dampened by the increased loss of output from the current outages," UBS analysts Vincent Gilles and Siobhan Andrews said in a note.

Earlier this month, British Energy said it was extending the life of its 1,110 megawatt Dungeness B nuclear power plant in Kent by 10 years to 2018.

The UK's largest generator has a total capacity of 12,000 megawatts - 10,000 from nuclear and 2,000 from the coal-fired power station at Eggborough.

Shares were 0.4 percent weaker at 482p by 0934 GMT, valuing the business at around 2.7 billion pounds.

Nuclear Power Needs Government Incentives, Says Task Force

Nuclear Power Needs Government Incentives, Says Task Force - Physics Today May 2005

A high-profile US government task force says it is in the national interest to use nuclear power as a clean and increasingly economical way to meet the growing demand for electricity.

Citing economics, climate change, and the projected growth in global energy demand, a US Department of Energy (DOE) task force cochaired by former Nuclear Regulatory Commission (NRC) chairman Richard Meserve and former New Hampshire Governor John H. Sununu has recommended that the federal government help revitalize the US nuclear power industry by sharing the up-front costs of the first few of a new generation of nuclear power plants. After citing three decades of increasing efficiency, decreasing operating costs, and solid safety records at the 103 existing US nuclear power plants, the task force noted that "despite this . . . achievement, and the fact that nuclear power generation does not result in greenhouse gas emissions, no new US nuclear power plants have been ordered and subsequently built since 1973."

Economic case
To restart the nuclear industry, the authors of the report—the nuclear energy task force of the Secretary of Energy Advisory Board (SEAB)—say "there should be government-supported demonstration programs and financial incentives to overcome the uncertainties and economic hurdles that would otherwise prevent the first few new plants from being built." Their key recommendation is a cost-sharing program for "first-of-a-kind engineering" (FOAKE) costs "inherent in building the first facility of a new design."

The task force recommended fifty-fifty cost sharing up to a maximum of $200 million in government money "for each of three major competing design types, with the secretary of energy being given discretion to select the types to be supported." While the report does not call the cost-sharing program a government loan to industry, it does say that much of the money could be repaid from the profits of future nuclear power plants built using the designs.

Although the report is essentially a document making an economic case for government subsidies to restart the US civilian nuclear power industry, task force member C. Paul Robinson, the former director of Sandia National Laboratories in Albuquerque, New Mexico, said the economic arguments "are just becoming very timely in terms of electrical needs. We have looked at all the alternatives and certainly if you believe in the threats of greenhouse gases, then it is important to have something that can produce electricity with good efficiency and cost, and be emission free."

Another task force member, physicist Burton Richter, former director of SLAC, said that the FOAKE recommendation for cost sharing came because it "looks very much as if, once you get past the extra costs of a first-of-a-kind plant, then the costs of nuclear power are competitive with coal. That's a surprise to most people. If you can replace coal, you do good for air pollution, the economy, energy supply, and competitiveness."

Richter noted that the US, along with the rest of the globe, is "due for a big expansion in electricity demand, and we're better off for environmental and other reasons if we do it with nuclear power instead of coal. Government should lead industry to do the right thing rather than the wrong thing."

In addition to urging legislative support and funding for FOAKE, the task force made two other recommendations to help rejuvenate the nuclear power industry:

Early site permit and combined construction and operating license demonstration programs jointly funded by DOE and industry. In the past, one of the more significant barriers to new nuclear power plant construction was the two-step licensing process. The NRC issued a construction permit, and only after construction was substantially completed was an operating permit issued. Outside parties had numerous opportunities to intervene and delay or halt a project, which made the process of building a nuclear power plant a risky, high-stakes affair. The NRC has established a streamlined combined licensing procedure that significantly cuts the financial risk of building a nuclear plant, but the procedure has never been tested. The report recommends that DOE share the licensing costs with early applicants so that a real-world model can be developed.
A "basket of support programs for the first few reactors of each new supported design to provide efficient financial options." This basket would include secured loan guarantees, tax credits, accelerated depreciation, and other economic incentives from which a nuclear power plant builder could pick and choose. The incentives package could not exceed $250 million in government money for each nuclear reactor.
In the leadership issues section of the report, the task force warns nuclear-industry leaders that they must "recognize that the federal government should not and cannot eliminate all the risks and vagaries of the energy markets for them." The nuclear industry, the report says, "must clarify its needs and prioritize its requests" and "must also convey information to federal policymakers in clear, sharply defined terms with specific recommendations."

Industry reaction
Richard Myers, senior director of business and environmental policy at the Nuclear Energy Institute, said the task force report was a "well thought out piece of work." The nuclear industry, which NEI represents, is looking at $400 to $500 million as the FOAKE cost of a new nuclear plant, he said, so the report's fifty-fifty cost-sharing proposal with a $200 million limit was reasonable. "We think the report, on balance, is pretty sensible.. . . Once the first ones are done, we think Wall Street and the companies will recognize the licensing process is manageable, costs are predictable . . . and we can move forward from that point on and finance them conventionally."

Policymakers in both the administration and Congress must develop "a clear commitment to a national energy policy" that gives nuclear power a strong role, the report says. "We urge that the president identify this as a critical priority for the nation and that Congress take the necessary steps to meet this priority." The report doesn't mention the controversy surrounding the Yucca Mountain radioactive waste storage project in Nevada (see the story on page 32), but it does say the waste storage problem must be resolved. But the authors make clear that "the absence of a licensed repository is not a valid reason for postponing additional nuclear construction."

Another critical aspect of encouraging a new generation of power plants is the concern over nuclear proliferation, especially in the wake of September 11th. The task force's bottom-line conclusion is that the rest of the world is going to move forward with energy generation from nuclear power regardless of what the US does, and the US would be better off participating than sitting on the sidelines.

An increase in the use of nuclear power in the US would actually "serve our non-proliferation objectives," the report says, because "one of the most efficient and certainly the most thorough ways of disposing of that nuclear material is to burn it as fuel in commercial nuclear reactors."

Robinson said task force members "had several discussions with the folks over at the White House to understand what the traffic would bear" in terms of government support for the nuclear industry. "We've been getting the right words to do at least one such [reactor construction and startup]." That would shore up the confidence that all of the work that was done to speed up the regulatory process has worked, he said. "The object is . . . to show that nuclear power is a good investment."

And it is economics, not safety, that killed nuclear power development in the US, Robinson said. "Nuclear power was grossly overbuilt because of predictions that energy growth was going to double every seven or eight years," he said. When that didn't happen, it became uneconomical, especially with the uncertain licensing procedures, to invest in nuclear power, he said.

"So it's going to take a big infusion of courage for the next person in the finance community to take the first step," he said. That courage will be easier to find if it is bolstered by a federal cost-sharing program, the report concludes.

Jim Dawson

Nuclear power 'will help combat global warming'

Independent Online Edition > UK Politics : app5:

By Marie Woolf, Chief Political Correspondent
Published: 28 September 2005
The Government gave its clearest signal yet that it is considering expanding nuclear power in Britain.

Tony Blair made it clear that "all options" would be considered to tackle climate change, including building a new generation of nuclear power stations.

The Government is to hold a full review of nuclear power and renewable energy sources - including clean coal - next year.

Malcolm Wicks, the Energy minister, said yesterday that it would be "more difficult" for Britain to meet its targets on cutting carbon emissions without nuclear power.

Speaking at a fringe meeting organised by the nuclear industry, Mr Wicks said the government was "keeping options open" about expanding the nuclear industry as a way of reducing global warming. "I think, in principle, we can meet our climate change targets without going down the nuclear route but it would be more difficult," Mr Wicks said. "I think it would help us tackle our challenge of climate change, all things being equal. But there is no silver bullet."

Mr Wicks is to lead the review into energy sources that will examine the cost of nuclear power and the role it can play in securing future energy supplies and tackling climate change.

Mr Blair has put his personal authority behind a fresh look at nuclear power as a way to cut carbon emissions. He also indicated it could help guarantee the security of future energy supplies in Britain, reducing reliance on oil and gas piped in from abroad.

His speech drew a furious reaction from green campaigners who said the Government would be foolhardy to presume nuclear power was the answer to reducing carbon emissions.

"There are far better solutions to our climate change problems than nuclear power that are cheaper, more sustainable and less dangerous," said Tony Juniper, executive director of Friends of the Earth.

The Prime Minister is understood to want to resolve the issue of whether to build more nuclear power stations before he leaves office. Many of the unions are believed to be on board and, yesterday, Jack Dromey, the deputy general secretary of the T&G, indicated he favoured a fresh look at nuclear power to tackle climate change.

Mr Wicks said the civil nuclear issue would be resolved within three or four years. But he said the Government would not provide direct state subsidy to the nuclear industry to renew its ageing stock of nuclear power stations.

The nuclear issue has divided the Government, with Margaret Beckett, the Environment Secretary, expressing concern that the question of how to deal with tons of nuclear waste has yet to be resolved. Others have raised fears that expanding nuclear energy could encourage nuclear proliferation worldwide and make it more difficult to criticise nuclear expansion in countries such as Iran.

Mr Blair has ordered his strategy unit to examine whether nuclear could be an answer to tackling global warming and is said personally to favour pursuing the technology.

The Government gave its clearest signal yet that it is considering expanding nuclear power in Britain.

Tony Blair made it clear that "all options" would be considered to tackle climate change, including building a new generation of nuclear power stations.

The Government is to hold a full review of nuclear power and renewable energy sources - including clean coal - next year.

Malcolm Wicks, the Energy minister, said yesterday that it would be "more difficult" for Britain to meet its targets on cutting carbon emissions without nuclear power.

Speaking at a fringe meeting organised by the nuclear industry, Mr Wicks said the government was "keeping options open" about expanding the nuclear industry as a way of reducing global warming. "I think, in principle, we can meet our climate change targets without going down the nuclear route but it would be more difficult," Mr Wicks said. "I think it would help us tackle our challenge of climate change, all things being equal. But there is no silver bullet."

Mr Wicks is to lead the review into energy sources that will examine the cost of nuclear power and the role it can play in securing future energy supplies and tackling climate change.

Mr Blair has put his personal authority behind a fresh look at nuclear power as a way to cut carbon emissions. He also indicated it could help guarantee the security of future energy supplies in Britain, reducing reliance on oil and gas piped in from abroad.

His speech drew a furious reaction from green campaigners who said the Government would be foolhardy to presume nuclear power was the answer to reducing carbon emissions.
"There are far better solutions to our climate change problems than nuclear power that are cheaper, more sustainable and less dangerous," said Tony Juniper, executive director of Friends of the Earth.

The Prime Minister is understood to want to resolve the issue of whether to build more nuclear power stations before he leaves office. Many of the unions are believed to be on board and, yesterday, Jack Dromey, the deputy general secretary of the T&G, indicated he favoured a fresh look at nuclear power to tackle climate change.

Mr Wicks said the civil nuclear issue would be resolved within three or four years. But he said the Government would not provide direct state subsidy to the nuclear industry to renew its ageing stock of nuclear power stations.

The nuclear issue has divided the Government, with Margaret Beckett, the Environment Secretary, expressing concern that the question of how to deal with tons of nuclear waste has yet to be resolved. Others have raised fears that expanding nuclear energy could encourage nuclear proliferation worldwide and make it more difficult to criticise nuclear expansion in countries such as Iran.

Mr Blair has ordered his strategy unit to examine whether nuclear could be an answer to tackling global warming and is said personally to favour pursuing the technology.

Tuesday, September 27, 2005

Energy Group Plans to Build Nuclear Plants in Gulf States - New York Times

Energy Group Plans to Build Nuclear Plants in Gulf States - New York Times

By MATTHEW L. WALD
Published: September 23, 2005
Correction Appended

WASHINGTON, Sept. 22 - A consortium of eight companies said on Thursday that it would spend about $100 million to prepare applications to build two nuclear reactors, in Mississippi and Alabama, a step that seems to move the industry closer to its first new reactor order since the 1970's.

The announcement was made by NuStart Energy, a consortium of companies that has substantial government financing. The consortium selected a site in Claiborne County, Miss., adjacent to Entergy Nuclear's Grand Gulf reactor, and another in northern Alabama, next to the Tennessee Valley Authority's long-abandoned Bellefonte nuclear construction project.

The Energy Department is committed to sharing costs to develop the two applications, and has agreed to pay the application fee, about $30 million, for one of them; the consortium is asking the department for money for the other. At the same time, Entergy announced that it would act on its own to develop an application for a reactor at a site next to its Waterford plant, in Louisiana.

The government, the reactor manufacturers and companies that own and operate existing reactors are testing a reformed licensing procedure, established by the Nuclear Regulatory Commission in the 1990's to avoid the pitfalls of the 1970's and 80's, when several reactors were ordered and construction begun before design was completed or regulatory approval obtained.

Under the program, designs for the Grand Gulf reactor, to be made by General Electric, and the Bellefonte reactor, to be made by Westinghouse, will be mostly completed and also approved by the Nuclear Regulatory Commission before substantial work is done at the sites.

CorrectionTuesday, Sept. 27, 2005
An article in Business Day on Friday about a decision by a consortium to sponsor applications to build two nuclear reactors misstated the location for which one company, Entergy, is planning a third application. It is the company's River Bend plant, near St. Francisville, La., not its Waterford plant, near Taft, La.

ITALIANS' ATTITUDE TOWARDS NUCLEAR POWER CHANGED

Agenzia Giornalistica Italia - News In English: "ITALIANS' ATTITUDE TOWARDS NUCLEAR POWER CHANGED"

(AGI) - Vienna, Sep 27 - In Italy, people's attitude towards the nuclear power has changed. According to the undersecretary for foreign Affairs, Giuseppe Drago, the new attitude might lead to a change in Italy's position on this issue. Speaking at the 49th conference of the International Atomic Energy Agency (IAEA), Drago said that "Italy has actively pursued security also with regard to the civil use of nuclear power, following the tragic incident of Chernobyl" and that now "plans are being discussed for the treatment of nuclear fuel" with special attention to "non-technological factors" like the involvement of the local communities concerned. "However", Drago added "we are witnessing a change in people's attitude towards the issue of nuclear energy, especially in the young people". , "The construction of new nuclear plants in Italy is not on the government's agenda right now. However, we are in favour of a strengthened cooperation and international participation of Italy in new European and international programmes and projects focused on nuclear power". (AGI) .

Monday, September 26, 2005

Birt reported to be seeking 300,000 pounds nuclear power job

Guardian Unlimited Politics | Whitehall | Birt reported to be seeking �300,000 nuclear power job: "Birt reported to be seeking �300,000 nuclear power job"

David Hencke, Westminster correspondent
Monday September 26, 2005
The Guardian


John Birt, the prime minister's unpaid adviser, is reportedly seeking a £300,000 a year job as head of one of the world's biggest uranium enrichment companies.
The Anglo-Dutch-German company Urenco owns one of Britain's nuclear enrichment research plants in Capenhurst, Cheshire, and is bidding for a licence to open a nuclear enrichment plant in the US.

Lord Birt appears to have applied to become chairman of Urenco after leaving his paid post with management consultants McKinsey. This followed suggestions that he could be perceived to have a conflict of interest because a number of its consultants were advising ministers, particularly after one consultant, David Bennett, became chief policy adviser to Tony Blair.

Lord Birt, who is known to support the controversial policy of expanding nuclear power, would join the company at a crucial time.
His position in government has been controversial ever since he left the BBC, where his costcutting made him unpopular with many staff.

He always keeps his advice to the prime minister confidential, but it has been known to upset senior civil servants, particularly in the Home Office and the Department for Transport, where he made a number of controversial proposals. These included policies on defeating crime by actively targeting the worst 100,000 criminals in Britain and backing a private high-speed rail link from London to Edinburgh.

Urenco is seeking a bigger role for nuclear power now that oil and other fossil fuels are beginning to run out and there are growing concerns about global warming. It already has nearly 20% of the world market and if it gets a licence to build a US plant it will be a big player in supplying uranium in America.

The company is also at the forefront of the technology used to enrich uranium and has a stake in an energy company in Louisiana.

Part of the state-owned assets of the company is due to be privatised, which could bring a windfall for its six directors. The directors' package already includes performance bonuses, which can be worth up to half their salaries, a final salary pensions scheme, private health insurance and a company car.

Downing Street yesterday denied reports in the Mail on Sunday that the prime minister was pushing Lord Birt for the job to replace the present British chairman, Neville Chamberlain.

A spokeswoman said she was "unaware of the application".

The Cabinet Office said it was up to the company to comment on the application but there was no one available at Urenco's British headquarters in Marlow, Buckinghamshire, to discuss it.

Lord Birt never confirms or denies any story written about him.

to begin constructing its biggest nuclear power plant next year

People's Daily Online -- China to begin constructing its biggest nuclear power plant next year

The construction of a nuclear power plant in Yangjiang, a port city in south China's Guangdong Province, is expected to begin early next year, said Zhong Yi, vice mayor of the city.

It will be the largest nuclear power plant in China.

The plant will have six reactors with a total installed capacity of six million kilowatts and a budget of 80 billion yuan (about 9.86 billion US dollars). According to Zhong, 93 percent of preparatory infrastructure for the the plant, which was approved by the State Council, has been completed. International bidding for plant equipment supplies was announced last September and remains open.

So far, a dozen international nuclear power giants have placed bids. Winners of the bidding will be chosen and announced before the end of the year. China currently operates nuclear power plants at Daya Bay and Ling'ao, both in Guangdong Province, and Qinshan, in eastern Zhejiang Province, and has been building a fourth one at Lianyungang, in east China's Jiangsu Province.

Source: Xinhua

U.K. Favors `Clean' Fossil Fuel Over Nuclear Power, Morley Says

Bloomberg.com: U.K.

Sept. 26 (Bloomberg) -- The U.K., Europe's third-largest power market, should turn to technologies that remove carbon dioxide from fossil fuels rather than nuclear generation, Environment Minister Elliot Morley said.

Nuclear reactors cost as much as 2 billion pounds ($3.8 billion) to build, Morley said. So-called ``clean'' coal and gas, being developed by BP Plc and Royal Dutch Shell Plc, may be a cheaper way of reducing emissions blamed for global warming.

``You do have to look at costs and benefits,'' Morley, 53, said in an interview in London. ``Nuclear plants are expensive and if you're looking at the energy mix, then at the moment I think you'll probably get more value from investment in clean coal.''

Aging nuclear and coal-fired stations that generate 40 percent of Britain's power will be closed in the next decade, and the government has to decide how to replace them. Prime Minister Tony Blair said April 28 the government has no plans to build a new generation of nuclear plants and is encouraging alternative sources of carbon-free electricity to curb greenhouse gases.

Morley's department will publish a review of energy policy by year-end that may include tax breaks for companies developing so- called carbon capture and storage technologies including BP, Europe's biggest oil company, and Royal Dutch Shell, the second- biggest. Chancellor of the Exchequer Gordon Brown said in March he would ``examine the potential'' for incentives.

``Nuclear may have a role down the line,'' Morley said in the interview Sept. 7. ``Modern nuclear plants are much less complex than older ones, but the problems with nuclear energy are not really resolved yet.''

Low Emissions

Carbon capture technology uses chemical reactions with steam, oxygen, and carbon monoxide at extreme heat to separate carbon dioxide from fossil fuels such as coal or gas, producing a power source with few or no carbon emissions. Carbon dioxide is responsible for pushing up the earth's temperature, according to the U.S. National Academy of Sciences.

BP, Royal Dutch and ConocoPhillips, the third-largest U.S. oil company, are jointly developing a $600 million project in the North Sea to separate methane natural gas into hydrogen and carbon dioxide. The hydrogen would fuel a carbon-free power plant operated by Scottish & Southern Energy Plc in Northeast Scotland, BP spokesman David Nichols said in an interview.

The U.S. government and nine companies, including American Electric Power Co. and BHP Billiton, the world's largest mining company, are jointly building a $870 million clean-coal plant. The location has yet to be decided.

Kyoto Targets

The technology may help U.K. efforts to cut carbon emissions to 80 percent of 1990 levels by 2010 and to 40 percent by 2050, targets that go beyond international commitments under the 1997 Kyoto Protocol. Britain's carbon emissions have risen in the past three years.

In a 2003 consultative paper, the government set a target of raising the share of renewable energy sources such as wind, solar and hydro electricity to 10 percent of total supply by 2010 and to 20 percent by 2020.

Eighteen of Britain's 23 nuclear reactors, some of them as old as 60 years, are due to be taken out of service by 2015. The government report said concerns about the cost of building new plants and safely storing nuclear waste make replacing them an ``unattractive'' option.

At stake are potential contracts for companies including General Electric, Munich-based Siemens AG, Areva SA of France and British Nuclear Fuels Plc's Westinghouse unit, which build the reactors, and Essen, Germany-based RWE AG and Dusseldorf-based E.ON AG, which operate the plants.

Government Aid?

Setting-up costs for nuclear reactors are three times those of gas-fired plants, so government guarantees would be needed to persuade utilities to put up money that may take decades to recover, according to nuclear policy analysts including Malcolm Gristom at Chatham House, a London-based research group.

Blair has refused to rule out the possibility that some new nuclear plants will be needed to meet energy requirements in the U.K., which uses 340,000 gigawatt hours a year, the third highest in Europe after Germany and France.

Companies such as E.On say nuclear energy is no more expensive than alternatives, providing costs aren't driven up by excessive regulation.

``We think there's actually quite a strong case to argue for nuclear power from an economic point of view,'' said Simon Skillings, head of head of strategy and regulation at E.On U.K., a unit of Europe's largest publicly traded utility.

Demand for clean-coal plants may increase in countries such as India and China, both reliant on coal to fuel their surging economic growth.

China is now the world's largest energy user after the U.S. On Sept. 5, the European Union agreed to give the nation a coal- fired plant that emits small amounts of carbon dioxide so Chinese engineers can copy it when they build their own power stations.

Sunday, September 25, 2005

A new venture toward more nuclear power

http://www.newsadvance.com/servlet/Satellite?pagename=LNA/MGArticle/LNA_BasicArticle&c=MGArticle&cid=1031785225257&path=

Lynchburg News & Advance
September 23, 2005


AREVA’s announcement last week of a joint venture with a Baltimore-based electricity supplier comes as good news on two fronts - the future of nuclear energy for the nation and the addition of jobs down the road for the Lynchburg area.
The joint venture with Constellation Energy would put AREVA on the path to building new nuclear plants in the United States. Known as UniStar Nuclear, the new company will offer a “one-stop shop” for utilities interested in building new nuclear plants, according to Mike Wallace, executive vice president of Constellation Energy.
Reflecting the France-based AREVA’s international presence in the nuclear energy field, the nuclear reactors would be designed in the United States based on AREVA’s European pressurized water reactor. One plant is under construction in Finland and another will be built in France. UniStar Nuclear hopes to sell at least four such plants to U.S. utilities.
Tom Christopher, chief executive officer of AREVA, said those sales could come as early as 2008 “and we will be ready.” Construction on the new plants could begin as early as 2010 with operation beginning by 2015.
The new energy policy bill approved in August by Congress gave a fresh start to nuclear power in the United States with a series of loans and tax credits to utilities that turn to nuclear reactors to generate their power.
Part of AREVA’s work now is upgrading and maintaining some of the 104 nuclear power plants operating in this country.
Some 200 engineers at the firm are now working on converting the European reactor design to American specifications. They will then seek approval of the design from the Nuclear Regulatory Commission, which oversees the nuclear industry at the federal level.
In terms of new jobs here, the firm plans to hire another 200 engineers next year to work here and in Charlotte, N.C., along with another 100 in 2007. Christopher said earlier this year that a contract to build a new plant would mean a $2 billion to $3 billion investment in AREVA, including $400 million to $500 million worth of work subcontracted to local manufacturers.
Building a new nuclear plant hinges on the NRC’s approval of the plant’s design and finding a utility that wants to build it.
As Matt Busse of The News & Advance reported last week, AREVA and the other firms associated with UniStar Nuclear are not alone in the nuclear power industry. They have competition from Atlanta-based GE Energy and Pittsburgh-based Westinghouse Electric, both of which have designed their own “next generation” nuclear plants.
Fossil fuels (oil, gas, coal), the dominant energy today, are being rapidly exhausted, and are the cause of wide scale environmental pollution, while nuclear and renewable energies are much cleaner. Experts say nuclear fuels have no global effect, produce relatively small amounts of waste and, since they don’t produce emissions similar to oil and coal, don’t affect the planet’s climate. Further, proponents of nuclear energy say, if well managed, it is sustainable for the long term.
No new nuclear power plant has been ordered in the United States since 1973 and interest soured after the Three Mile Island nuclear accident in Pennsylvania in 1979. That reactor was designed in Lynchburg by Babcock and Wilcox, which eventually gave way to AREVA.
Disposal of waste from nuclear power plants is one factor that has kept a damper on increasing the number of such plants across the United States. The U.S. Department of Energy, the Bush administration and Congress are pushing a plan to dispose of the nuclear waste in tunnels under Yucca Mountain in Nevada.
The people of Nevada have opposed the plan. In the meantime, nuclear waste is currently being stored in temporary facilities scattered across 39 states.
Nuclear energy for electricity, nonetheless, has to be the way of the future for more Americans. With oil prices hovering at $70 a barrel and rising, America may not have any choice.

Reactors? We'll Take Thirty, Please

http://www.businessweek.com/magazine/content/05_40/b3953066.htm

Westinghouse, GE, and their nuclear rivals are chasing $50 billion in Chinese power-plant deals Power to the People's Republic! That could easily be the slogan of the nuclear power executives winging their way to Beijing these days to pitch next-generation reactor designs, downplay rivals' plans, and woo the Communist Party leadership. President Hu Jintao's government is committed to spending $50 billion to increase nuclear power generation capacity from 8.7 million kilowatts today to 40 million kilowatts by 2020. That's one of the largest buildouts in the industry's history. And by the time that $50 billion is spent, some 30 new reactors will be pumping power to China's most important cities, in addition to the nine operating today. Most are to be built along a rapidly industrializing coastal arc stretching from Shandong province in the northeast to Guangdong province in the south.
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The sheer scale of the ramp-up has global energy players salivating, including such giants as France's Areva Group, the world's biggest nuclear engineering firm with $13.5 billion in sales, Westinghouse Electric, Mitsubishi Heavy Industries, and Russia's Atomstroyexport. General Electric Co.'s (GE ) nuclear division is in the chase as well, while Paris-based Alstom and Germany's Siemens hope to cash in on contracts for reactor turbines and control and instrumentation systems.The first contract up for grabs, valued at roughly $8 billion, is for four reactors in southern China: two in Zhejiang province's Sanmen and another pair in Yangjiang in Guangdong province. Beijing is expected to make its decision in October, and right now it looks like a two-way race between Areva and a consortium led by Westinghouse, which is owned by British Nuclear Fuels. It has been years since an order for a reactor came from a U.S. utility, and even orders from nuke-friendly countries such as France have been skimpy. "It's pretty critical," says Westinghouse CEO Stephen R. Tritch. "If you are not selected early, you could be locked out of the market."BROWNOUTS AND SMOG It is no secret that China needs a massive infusion of new energy to keep the juice flowing to its manufacturing sector. Electricity brownouts are a regular feature of life in Shanghai and Guangzhou. And nuclear power only kicked in about 2% of China's total power supply last year, vs. 30% in Japan. Even so, nuclear plants are just one part of a much larger Chinese push to expand and upgrade the country's power grid.In fact, demand for power is growing so fast that even if China builds all the nuclear plants on the drawing board, industry officials say atomic energy will account for only about 4% of total electricity generation. That's because the country is also building dozens of conventional power plants. But China wants to move away from the high-sulfur coal-fired plants blamed for its world-class smog and acid rain woes, a goal that increases the value of nuclear power. "Nuclear is clean and environmentally sound," says Wu Zongxin, a professor at the Institute of Nuclear and New Energy Technology at Beijing-based Tsinghua University.Areva and Westinghouse were thrilled when China opted for their type of pressurized water reactors in the current contract bidding. In doing so, the Chinese ruled out rival technology such as GE's boiling water reactors and the heavy water plants sold by Atomic Energy of Canada, two of which are already operating in China. GE and AEC say they hope to win over the Chinese in future plant orders. "We have been asking if we can bid, but unfortunately they want pressurized water reactors," says Andy White, president & CEO of GE Energy's Wilmington (N.C.)-based nuclear business. "China should move to a two-technology model, like other countries."Yet Beijing is extracting a hefty concession from the bidders by insisting on massive transfers of nuclear knowhow to local partners. Both Areva and Westinghouse have committed to sharing their technology with the Chinese to clinch deals. China is following a well-worn path: Japan, South Korea, and even France used technology provided by GE and Westinghouse to build their own nuclear industries. "If they are interested in becoming totally self-sufficient, we will help them do so," says CEO Tritch. "We are always inventing better technology." The pressurized water reactor Westinghouse wants to sell to China is its new AP1000, which the company advertises as much safer than the 1970s-era reactors that dominate in China and elsewhere.The French also have pulled out all the stops to snag contracts. Areva already has four Chinese reactors up and running, and it has won points for providing technical assistance for the construction of a pair of Chinese-designed reactors that came online in 2002 and 2004. The company's latest pressurized water reactor has 1,700 MW of capacity per unit, vs. 1,000 for the proposed Westinghouse reactor. "We have a product that is quite advanced,"says Arnaud de Bourayne, head of China operations for Areva.Westinghouse's sales job has been complicated by a decision earlier this year by parent British Nuclear Fuels to exit the power plant business and sell Westinghouse. Rivals think this uncertainty could taint its bid. Another issue: U.S. congressional opposition to extending loans and loan guarantees from the U.S. Export-Import Bank. One reason is that Westinghouse, though based in Monroeville, Pa., is British-owned and will probably be sold to another foreign outfit, so critics say it doesn't deserve help from U.S. taxpayers.THE POLITICS OF POWER An appropriations bill passed by the House of Representatives removed Ex-Im Bank financing authorization, but Westinghouse is hopeful the Senate will restore it in upcoming conference committee meetings. The company, which has the Administration's support, points out that Westinghouse still employs 5,000 workers in the U.S. To bolster their case, company officials indicate that the lack of such financing may be a dealbreaker. And fat orders for nuclear plants could help ease the U.S. trade imbalance with China.The other big potential player is Japan's Mitsubishi Heavy Industries, which already supplies the Chinese with coal- and gas-fired plants. Mitsubishi is a longtime partner of Westinghouse and may even buy the company from the British. "Nuclear reactors are becoming a core business," says President Kazuo Tsukuda. "We need the Westinghouse brand to grow." Whoever wins this first round, count on foreign energy executives' mad dash to China to continue for many years to come.

Nuclear future

http://www.smh.com.au/news/world/nuclear-future/2005/09/25/1127586747151.html

Despite the cost and the dangers of nuclear power, climate change is strengthening the case for its more widespread use, writes Tim Flannery.
We hear the Secretary of State [John Foster Dulles] boasting of his brinksmanship - the art of bringing us to the edge of the nuclear abyss.
Adlai Stevenson,The New York Times,February 26, 1956.
It's often said that the sun is nuclear energy at a safe distance. In this era of climate crisis, however, the role of Earth-based nuclear power is being reassessed, and what was until recently a dying technology may yet create its own day in the sun.
The revival began in earnest in May 2004, when environmental organisations around the world were shocked to hear the originator of the Gaia Hypothesis, James Lovelock, deliver a heartfelt plea for a massive expansion in the world's nuclear energy programs. Lovelock did so, he said, because he believed that climate change was advancing so rapidly that nuclear power was the only option available to stop
it. He compared our present situation with that of the world in 1938 - on the brink of war and nobody knowing what to do. Organisations such as Greenpeace and Friends of the Earth immediately rejected his call.
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Yet Lovelock has a point, for all power grids need reliable "baseload" generation, and there remains a big question mark over the capacity of renewable technologies to provide it. France supplies nearly 80 per cent of its power from nuclear sources, while Sweden provides half and Britain one-quarter. Nuclear power already provides 18 per cent of the world's electricity, with no carbon dioxide emissions. Its proponents argue that it could supply far more, but even the Bush Administration's energy forecasters believe that its share will in fact fall - to just 10 per cent of production - within a decade.
In discussing nuclear power as a means of creating electricity, we must keep in mind that nuclear power plants are nothing more than complicated and potentially hazardous machines for boiling water, which creates the steam used to drive turbines.
As with coal, nuclear power stations are very large, about 1700 megawatts, and with a starting price of $US2 billion ($2.6 billion) apiece they are expensive to build. The power they generate, however, is at present competitive with that generated from wind. Because they are large, and many factors relating to safety must be considered, the permitting process for a nuclear power station can take up to a decade, with construction taking about five years. With a 15-year gestation period before any power is generated, and even longer before any return on the investment is seen, nuclear power is not for the impatient investor. It is this, as much as concerns about safety, which explains why no new reactors have been built for 20 years in either the US or Britain.
Three factors loom large in the minds of the public, however, whenever nuclear power is mentioned - safety, disposal of waste and bombs. The horror of the 1986 Chernobyl disaster in Ukraine was a catastrophe of stupendous proportions whose consequences keep growing. Thyroid cancer is a rare illness, with just one in a million children developing it spontaneously. But a third of children under four years old who were exposed to fallout from Chernobyl will develop the disease. Seven per cent (some 3.3 million people) of the population of Ukraine have suffered illness as a result of the meltdown, while in neighbouring Belarus, which received 70 per cent of the fallout, the situation is even worse. Only 1 per cent of the country is free from contamination, 25 per cent of its farmland has been put permanently out of production, and nearly 1000 children die each year from thyroid cancer. Currently, 25 per cent of the Belarus budget is spent on alleviating the effects of the disaster.
In the US and Europe, safer reactor types predominate but, as the Three Mile Island incident shows, no one is immune to accident, or to sabotage. With several nuclear reactors in the US located near large cities, there are real concerns about a terrorist attack. In summarising the situation for nuclear power as it stood late last year, the US National Commission on Energy Policy said: "One would want the probability of a major release of radioactivity, measured per reactor per year, to fall a further tenfold or more [before considering a doubling or tripling of nuclear power capacity]. This means improved defences against terrorist attack as well as against malfunction or human error."
The management of radioactive waste is another issue of concern. The nuclear industry in the US long looked to the proposed high-level radioactive waste dump at Yucca Mountain, Nevada, as a solution. But the waste stream has now reached such proportions that even if Yucca Mountain were opened tomorrow it would be filled at once and another dump would be needed. In reality, the opening of the Yucca Mountain dump looks to be delayed for years as challenges drag on through the courts. And the problem of what to do with old and obsolete nuclear power plants is almost as intractable: the US has 103 nuclear plants that were originally licensed to operate for 30 years, but are now slated to grind on for double that time. This ageing fleet must be giving the industry headaches, especially as no reactor has ever yet been successfully dismantled, perhaps because the cost is estimated to be about $US500 million a pop.
The majority of new nuclear power plants are being built in the developing world, where a less tight-laced bureaucracy and greater central control make things easier. China will commission two new nuclear power stations a year for the next 20 years, which from a global perspective is highly desirable, for 80 per cent of China's power now comes from coal. India, Russia, Japan and Canada also have reactors under construction, while approvals are in place for 37 more in Brazil, Iran, India, Pakistan, South Korea and Finland. Providing the uranium necessary to fuel these reactors will be a challenge, for world uranium reserves are not large; at the moment a quarter of the world's demand is being met by reprocessing redundant nuclear weapons.
This brings us to the issue of nuclear weapons getting into the wrong hands. As the current dispute over the proposed Iranian reactor indicates, anyone who possesses enriched uranium has the potential to create a bomb. As reactors proliferate and alliances shift, there is an increasing likelihood that such weapons will be available to those who want them.
The nuclear industry hopes that technological developments will lead to foolproof reactors that produce electricity at a cost equivalent to coal. New reactor types include pebble-bed reactors, which utilise low-enriched uranium and can be built on a smaller scale than conventional plants, and pressurised water reactors, one of which will be built soon in Normandy, France, a plant which promises to produce power more cheaply than coal. As with geosequestration, however, these technologies are still to be developed.
What role might nuclear power play in averting the climate change disaster? China and India are likely to pursue the nuclear option with vigour, for there is currently no inexpensive, large-scale alternative available to them. Both nations already have nuclear weapons programs, so the relative risk of proliferation is not great. In the developed world, though, any major expansion of nuclear power will depend upon the viability of new, safer reactor types.
Humanity is at a great crossroads. Trillions of dollars will need to be invested to make the transition to the carbon-free economy and, once a certain path of investment is embarked upon, it will gather such momentum, it will be difficult to change direction.
So what might life be like if we choose one over the other? In the hydrogen and nuclear economies the production of power is likely to be centralised, which would mean the survival of the big power corporations. Pursuing wind and solar technologies, on the other hand, means that people could generate most of their own power, transport fuel and even water (by condensing it from the air).
If we follow this second path, we will have opened a door to a world the likes of which have not been seen since the days of James Watt, when a single fuel powered transport, and industrial and domestic needs, with the big difference being that the fuel will be generated not by large corporations, but by every one of us.

Nuclear power makes sense now

http://www.billingsgazette.com/index.php?id=1&display=rednews/2005/09/24/build/opinion/42-guest-opinion2.inc


Not since the energy crisis in the 1970s has interest in Canada's tar sands oil deposits been so strong. High oil prices, traumatic events in Louisiana, problems in major oil-producing countries and rapid depletion of the world's easy-to-produce petroleum have coincided with rising global demand for oil.
The Athabasca tar sands deposits in Alberta hold an estimated 1.8 trillion barrels of low-grade oil. Since 1996, major oil companies have invested $23 billion to convert this enormous resource into synthetic crude oil. And the oil industry has announced plans to spend an additional $37 billion to expand production from the present level of 500,000 barrels a day to 2.5 million barrels by 2010. By comparison, the United States today imports about 2.4 million barrels a day from Saudi Arabia.
Producing hydrogen
What's remarkable about the prospect of obtaining gasoline from tar sands oil is that the refining process requires another energy source that's usually not linked to oil - nuclear power. With synthetic crude oil from tar sands coming south from Canada, U.S. refineries will need large amounts of hydrogen to convert the synthetic crude into gasoline. At present, the hydrogen is produced from natural gas, but it's safe to assume that high-priced natural gas will not be used for this purpose much longer. Nuclear power can substitute for natural gas in producing hydrogen that will keep refineries at full throttle.
Technology is already available for the production of hydrogen at existing nuclear power plants. Hydrogen can be produced easily from water anywhere electricity is available. The process is called hydrolysis, in which electricity is used to separate water into hydrogen and oxygen. The best way to make the large amounts of hydrogen needed for refining gasoline - and eventually for fuel cells to run cars - is with electricity made from nuclear power because it's the only energy source that can produce abundant electricity without emitting global warming gases.
Congressional incentive
Congress recently authorized projects to get hydrogen production under way. The newly-enacted energy legislation provides $100 million to produce hydrogen at two operating nuclear power plants. And the measure earmarks $1.25 billion for construction of a large, high-temperature gas-cooled reactor at the Idaho National Engineering and Environmental Laboratory to produce both electricity and hydrogen.
Because they are closest to the Canadian tar sands, it seems likely that one or more nuclear power plants in the upper Midwest will be equipped with electrolyzers to make hydrogen for distribution to nearby refineries.
The idea that nuclear-generated electricity could be used to extend the world's oil supplies might have seemed improbable at one time. But it no longer does. The key to hydrogen production - and opening up the enormous deposits of tar sands oil found not only in Canada but also in Venezuela and other countries - is nuclear power. With an expansion of nuclear power, we can provide the electricity we need, combat the greenhouse effect and maintain our energy security. Every country would be better off.
Robert A. Grimesey, a retired scientist who worked at the National Engineering and Environmental Lab, lives in Libby.

Power to the people has to be nuclear

http://www.timesonline.co.uk/article/0,,2088-1795999,00.html

AS a former professor of physics for many years at the University of London, I welcome the article by Michael Portillo (Comment, last week). The case for building new nuclear power stations on existing sites as the old ones are phased out, is overwhelming if we are serious about reducing our effects on global warming. The contributions of wind and wave power, while welcome, can never be enough to replace our present nuclear power output.
Unfortunately I believe that while Tony Blair is prime minister, he is going to avoid all the difficult decisions he can. These include nuclear power, council tax revision, the future of the European Union etc. Will Gordon Brown do any better?
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Professor Roland DobbsWadhurst, East Sussex
SORRY MESS: Portillo’s article was a comprehensive analysis of the utter bankruptcy of the government’s energy policy. The whole sorry mess has been festering since privatisation in 1989. No large power stations of any kind are being constructed as the electricity pricing mechanism is not giving power companies the signals for long-term investment.
His views of the cost of new nuclear plants are not up-to-date. Plants are now much more standardised and Canadian-designed ones are being built in China in about 50 months. The new plant in Finland should be quite straightforward, as will the new ones in France.
The principal advantage of using uranium is that, with a breeder cycle, we can produce controllable power and dramatically reduce our dependence on imported energy with inexhaustible fuel and very small quantities of waste.
Paul SpareChartered EngineerDavenham, Cheshire

Nuclear power auction has Bush blowing hot

http://www.timesonline.co.uk/article/0,,2095-1795835,00.html

THE sale of Westinghouse, the nuclear-power company, has all the makings of a nasty little dust-up between Whitehall and Washington. BNFL, the British government’s nuclear arm, bought it for a song six years ago when atomic power was about as fashionable as flares.
Now high oil prices and climate change — two giant trends neatly embodied in hurricanes Katrina and Rita — have put nuclear power firmly back on the agenda. China wants to build new reactors, as does the US, and I would not bet against Britain doing the same once the main refuseniks in the cabinet have been booted upstairs to the Lords.
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All this makes the once- unloved Westinghouse something of a hot item. Not only did it build half the reactors in operation round the world today, but it is the only company with a design that has received the stamp of approval from US regulators. No wonder it has attracted a dozen bids from a who’s who of international power, including General Electric, Mitsubishi Heavy Industries, Toshiba and Korea’s Doosan, as well as private-equity players.
Westinghouse was valued at about $1 billion (£563m), but with so many bidders, the final price could end up well north of that, and provide a welcome injection to Gordon Brown’s overstretched budget.
But there could still be a fly in the ointment. Although it is British-owned, the American government is likely to regard Westinghouse as a US corporation because its headquarters are there, its employment of American nationals, and its possession of some very sensitive nuclear technology.
That means the deal will probably have to be cleared by the US Committee on Foreign Investment, the panel that recently played a role in the Chinese attempt to buy the American oil company Unocal. If the committee blocks the highest bid, just because it happens to be from an Asian company that the US doesn’t want to see gaining too much nuclear expertise, it will be a sore test of the transatlantic relationship. BNFL’s job is to get the highest possible price for the British taxpayer, and Blair should insist to Bush that it is left free to do so.

The pendulum swings back toward nuclear power

http://www.boston.com/business/articles/2005/09/25/the_pendulum_swings_back_toward_nuclear_power/

By Charles Stein September 25, 2005
I spent more years than I would care to admit writing about the Seabrook nuclear power plant in New Hampshire. The Seabrook story was exhausting, but it taught me a valuable lesson: When it comes to energy, especially the price of energy, the future is very hard to see.
Seabrook was conceived in the late 1960s, a time of great optimism about nuclear power. Nuclear plants, the utilities promised, would produce electricity that was ''too cheap to meter." When oil prices shot up in the 1970s, eventually reaching the unheard of price of $30 a barrel, Seabrook had another selling point: it would reduce New England's dependence on costly foreign oil.
Things turned out differently. Like many of the nuclear plants in that era, Seabrook ran into engineering and political problems. Construction advanced at a snail's pace. Every year, the plant's estimated cost got higher and its completion date got pushed further into the future. When Seabrook finally went on line in 1990, its price tag had reached $6 billion.
The owners had to eat some of that money, because regulators refused to pass the costs along to consumers. Changes in the price of oil made Seabrook's economics even worse. By 1990 oil was selling for less than $23 a barrel and the price fell even lower in the years that followed.
The verdict was clear: Nuclear power was a financial disaster; oil was a bargain.
Fast-forward to today. In case you hadn't noticed, the price of oil has gone up a lot -- to about $64 a barrel. The price of natural gas -- the most popular fuel source in New England's power plants -- has gone up even more sharply. Utilities that venture out to buy electricity in the spot market are paying three times as much for power as they did a year ago. Consumers could pay about 20 percent more for electricity this winter, largely because of higher oil and gas prices.
And those ''white elephant" nuclear plants like Seabrook? It turns out they are sitting in the catbird seat. Their steep initial costs have been written off over time. Their cost of fuel is minuscule, according to Steven Taub, an executive at Cambridge Energy Research Associates, a consulting firm. Even with all other costs thrown in, nuclear plants today produce power at less than half the cost of plants that burn natural gas or oil.
Like the Saudi Arabians, the owners of nuclear plants have plenty of cheap power that they can sell at high prices in deregulated energy markets, earning big profits in the process. Many of the plants, Seabrook included, were purchased by new owners in recent years who paid relatively little for the assets. In 2002, FPL Energy, a Florida company, bought a controlling interest in Seabrook for $836 million. ''In today's market, many of those plants are worth significantly more," Taub said.
The verdict is clear: Nuclear power is a bargain; oil and gas are a financial disaster.
There are plenty of specialists around who are firmly convinced that high oil and gas prices are here to stay. Richard Lester suggests we should be wary about such pronouncements. ''Smart people don't get this right," said Lester, a Massachusetts Institute of Technology professor of nuclear science and engineering. In 2003, Lester and some colleagues wrote a report on the future of nuclear power. They assumed natural gas prices -- the main competition -- would stay in a range of $3 to $6 per million BTUs. Last week natural gas was selling for more than $12 per million BTUs.
The solution here is obvious: We need to be diversified. Investors spread their bets around because they don't know which stocks will do well and which will do poorly. We need to do the same with sources of energy because, in truth, we don't have a clue what will happen to their prices in the future. The cheap may become expensive and the expensive cheap.
When it comes to the energy future, a little humility goes a long way.
Charles Stein is a Globe columnist. He can be reached at stein@globe.com.