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Nuclear power plants just not getting built in USA, despite govt loans

President Obama even proposed another $36 billion in federal loan guarantees for the industry in February of this year.

Yet last year, only one application was filed. And none at all this year…

Obstacles to Nuclear Construction in the United States, by Tony D’Altorio, Investment U Research  November 2, 2010 Electricite de France or EDF ADR (PINK: ECIFY) just got dumped by Constellation Energy (NYSE: CEG). And that could spell some big changes to its plans.The French state-owned utility and its U.S. partner were going to build at least four nuclear plants in the U.S. And they were going to use EPR, created by another French firm Areva ADR (PINK: ARVCY), to do so.

A third-generation pressurized water reactor, EPR is the first of its kind to hit the markets. But it seems less exciting now than it did when EDF and CEG first joined forces in 2007.

Less exciting, at least, in the U.S. The natural gas glut and resulting low prices have seen to that, along with the cost of building EPRs has skyrocketed.

And now EDF has to find a new U.S. partner for its costly and complex project, which has already experienced repeated delays and cost overruns. Originally estimated at €3.5 billion, projections now sit at €5-6 billion……

President Obama even proposed another $36 billion in federal loan guarantees for the industry in February of this year.

Yet last year, only one application was filed. And none at all this year…

Blame natural gas prices or the recession if you want. Analysts certainly expect U.S. 2010 power demand to fall below 2007 levels, which lessens any immediate need for reactors…..

November 3, 2010 - Posted by | business and costs, USA | , , , , , , , ,

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