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Nuclear ‘renaissance’ could end in a welcome nuclear abortion

Even with government support, the Maryland project could be shelved….For investors, the collapse of both projects could come as welcome news because of the high costs, myriad of uncertainties and lengthy development schedule.

Constellation To Reduce Spending On Nuclear Project , WSJ.com, By Mark Peters, Dow Jones Newswire28 July 2010, Constellation Energy Group Inc. (CEG) will reduce spending on a new reactor planned for a nuclear-power plant in Maryland as its bid for a federal loan guarantee for the multibillion-dollar project drags on.

The Baltimore company said it will slow design and other work on the project under way by contractors such as France’s Areva SA (ARVCY, CEI.FR) and Bechtel Group Inc., of San Francisco. Constellation and partner Electricite de France SA (EDF.FR) likely will stop the project planned for Calvert Cliffs Nuclear Power Plant at the end of the year if it hasn’t received a guarantee.

“We can’t keep going at the rate we’re going without clarity on the loan guarantee,” Constellation Chief Executive Mayo Shattuck said Wednesday…..

Even with government support, the Maryland project could be shelved. The viability of the project hinges on supportive market prices for power, which have fallen in recent years on weak demand and slumping natural-gas prices. The difficulty of signing contracts with contractors and the lack of a federal energy policy backing nuclear development could stymie the project as well.

NRG Energy has run into similar frustrations with the loan-guarantee process. The company is planning to build two reactors at an existing plant in Texas, but also needs federal backing to move forward……….

For investors, the collapse of both projects could come as welcome news because of the high costs, myriad of uncertainties and lengthy development schedule.

“Whichever company receives the loan guarantee will see a temporary decline in share price as investors for the most part are not keen on investing in new nuclear in this weak natural gas price environment,” analysts at Simmons & Co. International wrote in a note to clients this week.

In recent trading, shares of Constellation were down 4% at $33.52 on the New York Stock Exchange.

UPDATE: Constellation To Reduce Spending On Nuclear Project – WSJ.com

July 29, 2010 - Posted by Christina Macpherson | business and costs, USA | antinuclear, AREVA, EDF, energy efficiency, France, nuclear, nuclear costs, nuclear spin, nuclear technology, reactors, uranium