nuclear-news

Cut-throat competition between nuclear companies to export reactors

Survival of the fittest? World’s major nuclear builders are in for a long stretch in the red, Bellona, May 18, 2015 by Vladimir Slivyak, Translated by Maria Kaminskaya MOSCOW  “……..Rosatom: not much to brag about, either

In Arab countries and in Asia, in South Africa, and even inside the European Union borders, the French nuclear industry regularly bumps into competition: Russia’s state corporation Rosatom. The Russian company is selling the VVER-1200, a reactor type similar to – though less powerful than – the EPR. The official price cited for a VVER-1200 is around €5 billion. But independent observers, in the case of Rosatom’s new project in Finland, Hanhikivi NPP, estimate expenses per one reactor at over €7 billion. This is close to the current cost of the troubled EPR project in the same country……….

Beyond the EU borders

The confrontation between Russia and Ukraine that started last year has made it essentially impossible for Rosatom to complete the construction of Units 3 and 4 of Khmelnitsky NPP in Western Ukraine. Still, at the end of last year, the Russian corporation claimed it had a sheaf of orders to the tune of over $100 billion – 27 new reactor orders, predominantly, in developing countries. At the end of 2013, $74 billion’s worth of new orders was cited.

These figures should be taken with a grain of salt. In most cases, what is meant is not specific contracts, but rather agreements of a general nature. Effectively, these are obligations that are yet to be committed to paper. For instance, one such agreement on a strategic partnership in the development of nuclear energy was signed last fall with South Africa – something that Russian media presented as an order for eight new reactors and a range of nuclear power infrastructure sites to a total amount of approximately $40 billion.

But when details of the deal – which the government of South Africa kept secret – eventually found their way to the public, a scandal broke out: The document stipulates no liability on the part of Russian suppliers in case of a nuclear accident, provides for tax exemptions, and includes a restriction that forbids South Africa’s cooperation with any other countries without Russia’s permission. The country’s government so far insists it has not yet chosen the future contractor and claims agreements have been signed with France, South Korea, China, and other countries besides Russia. Last February, meanwhile, reports surfaced in the media that the implementation of the South African nuclear program was being postponed by several years due to political opposition.

If any new construction is happening at all in Rosatom’s projects, it’s only the new plants in China and Belarus (not long ago, it was also India, with Kudankulam-2, which was recently reported by the Russian media as completed). Back home, Rosatom promised to launch three new reactors in 2014, but only one started operation, at Rostov NPP in Southern European Russia. All new Rosatom construction sites where any work is being done are plagued by lengthy delays that translate into substantial cost rises. In Belarus, official statements made recently said the new NPP in Ostrovets would be completed at a later date than was scheduled initially.

One other important aspect is that Rosatom’s resources – including the corporation’s production capacities – are limited. It is very doubtful that Rosatom is capable of building dozens of new reactors across the world, as its claimed order book would suggest, within the next decade. Even in Russia, actual reactor construction rates are perpetually behind those stated in project schedules. Additionally, in the next several years, Rosatom is going to face the same problem that awaits France: decommissioning old reactors. ……….

Distress or demise?

Rosatom’s circumstances are unenviable. Last year, generous promises were given by the corporation to build dozens of new reactors in many different countries. India, China, Iran, Algeria, Jordan, Saudi Arabia – these are just some of the purported customers on the list. In 2015, Rosatom was planning to sign contracts in South Africa and, possibly, in Kazakhstan. A new addition is Egypt, though there is little clarity as to what documents exactly were signed there and whether they imply any specific commitments. It remains just as unclear how Rosatom is going to fulfil its promises if an order for a new reactor is actually made……..http://bellona.org/news/uncategorized/2015-05-survival-fittest-worlds-major-nuclear-builders-long-stretch-red

May 20, 2015 - Posted by Christina Macpherson | 2 WORLD, marketing of nuclear