Nikkei Asian Review 11th May 2018 The British government has proposed to arrange all 2 trillion yen ($18.2
billion) in lending that Hitachi says is needed to build a nuclear power
plant in Wales, as the Japanese side seeks to reduce its risk and encourage
the U.K. to put more skin in the game.
London had previously suggested that it guarantee 1 trillion yen in lending, but to get the project moving it
changed its offer to include approaches such as direct financing in order
to reduce Hitachi’s financial exposure.
The plan also calls for a totalinvestment of 900 billion yen, with Hitachi as well as Japanese and British
public-private interests each taking a one-third stake, and guarantees for
corporate loans. The total cost of the plant, to be built on the Isle of
Anglesey, is expected to swell to 3 trillion yen.
Hitachi Chairman Hiroaki Nakanishi met with Prime Minister Theresa May in London last Thursday to
ask for greater backing. The original plan called for the loans to be
provided by private lending institutions from both countries and guaranteed
equally by each government. State funding would come at a lower cost than
borrowing from private institutions and would demonstrate the U.K.’s
increased involvement as a backer of Hitachi’s nuclear power business,
which would ease raising funds and help secure investors.
The offer reflects the U.K.’s strong desire to proceed with the project, since
bankruptcy could place a burden on British taxpayers. The U.K. government
will submit a formal proposal to the Japanese side soon. Hitachi will then
make a final decision on whether to continue with the project at a board
meeting at the end of the month.
Some at Hitachi and in Tokyo have expressed concern about Japanese interests retaining leadership of the
project with two-thirds control. Hitachi and the U.K. are thought to be
discussing ways to prevent Hitachi’s exposure risk from rising, such as by
raising London’s stake or issuing dual class shares. But the British
Parliament is likely to oppose expanding the government’s stake, which
could throw a wrench in the project’s final shareholding structure or
allocation of costs. Hitachi is also requesting that the electricity’s
purchase price be raised, but the U.K. is opposed. It hopes to satisfy
Hitachi by covering all loans and raising its stake in the project. https://asia.nikkei.com/Business/Business-Deals/London-offers-18bn-in-loans-for-Hitachi-s-UK-nuclear-plant
A senior executive at engineering giant Bechtel told CNBC on Thursday that U.S. businesses should be involved in Saudi Arabia’s civilian nuclear energy ambitions.
The presence of American firms would likely be welcomed by the Saudis and should also be welcomed by the U.S. government, according to Stuart Jones, regional president for Europe and Middle East at Bechtel.
Saudi Arabia has plans to construct 16 nuclear power reactors over the next 20 to 25 years, costing more than $80 billion.
South Carolina’s state utility paid bonuses to private execs WP, By Christina L. Myers and Jeffrey Collins | APMay 9 2018 COLUMBIA, S.C.— South Carolina’s state owned utility paid $9 million in performance bonuses to executives of a private utility for two nuclear reactors that were never finished, according to the public utility and emails turned over to state and federal investigators.
SCANA Corp. even billed taxpayer-supported Santee Cooper $3.2 million for bonuses in August, a month after the utilities abandoned 10 years of construction and planning for the reactors, according to the emails released by Gov. Henry McMaster’s office on Wednesday.
Santee Cooper refused to pay, utility spokeswoman Mollie Gore said.
“I will not approve this invoice,” Senior Vice President for Nuclear Energy Michael Crosby wrote in one email. “I may get over-ridden … but if SCANA cares to push this … CFOs & CEOs will need to get involved.”
Crosby also suggested letting SCANA CEO Jimmy Addison know his company was still seeking performance bonuses after the reactors were abandoned, and suggested that other executives “man-up and ask if he wants to push this,” according to the emails……..
The invoices indicated at least $5 million of bonuses paid to SCANA executives, but Gore said Santee Cooper’s records showed the public utility paid $8.9 million to the executives at the private firm.
The governor also sent the emails to legislative leaders, asking senators to confirm his nominee to run the Santee Cooper board as soon as possible.
“Santee Cooper’s customers, including individuals and the electric cooperatives of our state, deserve to know how their hard earned money is being spent by the utility, and now, we know that much of it was going to pay SCANA executives’ bonuses related to the failed reactors,” Symmes said in a statement.
……. Also on Wednesday, South Carolina lawmakers made a last-minute push to pass several bills to give ratepayers temporary relief and pass regulations to prevent anything like this from happening again.A committee of House members and senators could not reach a compromise on how much to cut a charge that customers of South Carolina Electric & Gas — a SCANA subsidiary — pay for the abandoned reactors.
The solar industry accounts for the largest share of jobs in renewable energy, with nearly 3.4 million people employed in research, production, installation and maintenance of solar panels — an increase of 9 percent from 2016. The solar sector is followed by liquid biofuels, with 1.9 million jobs, and hydropower, with 1.5 million. The IRENA report finds that employment in the global wind industry decreased slightly from 2016 to 2017, shrinking to 1.15 million. China is home to 65 percent of the world’s solar jobs, and 43 percent of all renewable energy jobs. Due to the region’s robust manufacturing sector, four-fifths of all renewable energy jobs are located in Asia.
“The data underscores an increasingly regionalized picture, highlighting that in countries where attractive policies exist, the economic, social and environmental benefits of renewable energy are most evident,” said Adnan Z. Amin, director general of IRENA.
Cracks in nuclear reactor will hit EDF Energy with £120m bill, Guardian, Adam Vaughan , 7 May 18 Problems at Hunterston B in Scotland trigger doubts over six other 1970s and 80s plants
The six month closure of one of Britain’s oldest nuclear reactors will burn a £120m hole in the revenues of owner EDF Energy and has raised questions over the reliability of the country’s ageing nuclear fleet.
EDF said this week that it was taking reactor 3 of Hunterston B in Scotland offline for half a year, after inspections found more cracks than expected in the graphite bricks at the reactor’s core.
Radiation Detection, Monitoring & Safety Market Worth 2.26 Billion USD by 2022 PUNE, India, May 8, 2018 /PRNewswire/ —
According to a new market research report “Radiation Detection, Monitoring, & Safety Marketby Product (Detection & Monitoring, Safety), Composition (Gas-filled detectors, Scintillator, Solid-state detector), Application (Healthcare, Homeland Security & Defence, Industrial) – Global Forecast to 2022“, published by MarketsandMarkets™, the global market is expected to reach USD 2.26 Billion by 2022 from USD 1.71 Billion in 2017, at a CAGR of 5.7% during the forecast period (2017-2022).
The key factors propelling the growth of Radiation Detection, Monitoring and Safety Market are growing security threats, growing prevalence of cancer worldwide, increasing safety awareness among people working in radiation-prone environments, growing safety concerns post the Fukushima disaster, growing security budgets of global sporting events, growth in the number of PET/CT scans, increasing usage of nuclear medicine and radiation therapy for diagnosis and treatment, and use of drones for radiation monitoring.
….The healthcare segment dominated the market on the basis of applications in 2017
The Radiation Detection, Monitoring and Safety Market is segmented on the basis of applications into healthcare, homeland security and defense, industrial applications, nuclear power plants, and other applications (environmental monitoring and academic research). In 2017, the healthcare segment accounted for the largest share of the global market. Factors such as the growth in the number of PET/CT scans and increasing usage of nuclear medicine and radiation therapy for diagnosis and treatment, increasing research activities, and growing incidence of cancer are driving the growth of this segment.
North America held the largest share of the market in 2017
Times 6th May 2018, The entire £15bn-plus cost of Hitachi’s nuclear power station on Anglesey
could land on the government’s balance sheet, even though taxpayers are expected to hold only a minority stake. The Japanese industrial giant has warned it will walk away from the 2.7 gigawatt plant at Wylfa unless it
secures UK state support.
Hiroaki Nakanishi, the chairman of Hitachi, met Theresa May and the chancellor, Philip Hammond, last week to urge progress on the project after more than two years of talks.
The final deal may see taxpayers take an equity stake in the Horizon plant, possibly as much as
33%, alongside Hitachi and the Japanese government. Direct state exposure to the construction of a nuclear plant has faced stiff resistance from the Treasury because of fears about cost overruns and the impact on government
debt.
Industry insiders said a minority taxpayer stake could result in the entire liability landing on the state’s books, despite the Japanese partners, because official statisticians now take a more conservative approach to accounting for risk where the government is concerned. In 2014, Network Rail’s debt burden of £34bn was reclassified as national debt
after an EU decree. Any state stake in Horizon would be sold on once construction was completed. https://www.thetimes.co.uk/edition/business/taxpayers-on-the-hook-for-15bn-hitachi-nuclear-plant-qnbx0s9xm
Regulators terminate Duke Energy’s Levy County nuclear licenses, Malena Carollo, Tampa Bay Times staff writer, 4 May 18
ST. PETERSBURG — Regulators have finally closed the books on the Levy County nuclear project that never was. The Nuclear Regulatory Commission terminated Duke Energy Florida’s licenses last week for the proposed nuclear reactors at the utility’s request — more than a decade after the project was first proposed.
“Southern Alliance for Clean Energy applauds Duke Energy Florida for formally terminating the licenses for the Levy site,” said Sara Barczak, regional advocacy director for the alliance, in a statement.
The action comes nine months after Duke announced it would no longer make customers pay for the nuclear facility. Duke customers had already paid $800 million on the plant that was never built. The St. Petersburg utility decided to shoulder the remaining $150 million for the project instead of passing it on to customers, saving rate payers about $2.50 on their monthly bills.
Instead of nuclear, the utility will turn its focus to solar and natural gas
We anticipate an increase in solar energy in Florida and have included plans for the addition of over 700 megawatts of solar capacity in the next 10 years,” Ana Gibbs, spokesperson for Duke, said in an email. …..Progress Energy had asked customers to pay up front for the facility, promising the plant would reduce energy costs down the line. But after nearly $1 billion was sunk into the nuclear project, it was never built. In 2013, the venture was canned.
FoE Japan 2nd May 2018, Urgent Joint Statement: Hitachi’s nuclear export transfers risks to both Japanese and British people while companies get profits. Hitachi’s
Chairman Nakanishi is reportedly going to visit British Prime Minister
Teresa May on 3rd May to ask the U.K. government to take a direct stake in
Wylfa Newydd nuclear power project in Anglesey, Wales.
Hitachi’s struggle just shows the risks of the nuclear power project is simply huge. While
putting huge risks and cost onto both Japanese and British people, it is
unacceptable that companies and banks take profit. Friends of the Earth
Japan jointly with People Against Wylfa B released an urgent statement.
The report says Hitachi is going to ask not only for direct investment but also
an assurance for a power purchase agreement. Hitachi’s struggle just
shows the risks of the nuclear power project is simply huge. In February,
Mr. Nakanishi already expressed the view that the project would not happen
without government commitment and stated “Both UK and Japanese
governments understand that the project would not go on without the
commitment by the governments”.
To reduce the risk of the project, the project is said to be insured by Nippon Export and Investment Insurance
(NEXI), 100 percent Japanese government owned export credit agency. In
addition to huge construction cost, nuclear projects are associated with
various risks such as accidents, increased cost for tougher regulations,
opposition from local people, radioactive waste management and so on.
Risks are too huge to manage. Thus, it is clear that companies should decide to
retreat from the project. While transferring risks of the project to
people, it is unacceptable that the companies and banks take profits.
The Spokesperson from People Against Wylfa B, Dylan Morgan says; “Don’t pour
good money in to the bottomless black hole of nuclear power. This is an old
fashioned, dirty, dangerous and extortionately expensive technology. The
Fukushima triple explosions and meltdowns has and will continue to cost the
people of Japan greatly. There is no end in sight for this continuing
tragedy, which means that no new nuclear reactors are going to be built in
Japan. It is unacceptable that Japan wish to export this deadly technology
to another state in order to keep Japan in the nuclear club.”
Climate Change Turns Coastal Property Into a Junk Bond, The returns can be great, unless the investment winds up under water. Bloomberg, By Noah Smith, May 3, 2018 “……… Even in the worst-case scenario, sea level rise will be moderate by 2050 — perhaps 1 or 2 feet along most U.S. east coast locations. And there’s a good chance it will be much less.
A rise of that magnitude doesn’t sound like a lot. But it would inundate a number of low-lying coastal areas. The National Oceanic and Atmospheric Administration’s sea level rise viewer app lets you play around with the data and look at maps. Even a moderately bad climate-change scenario could swamp some pieces of coastal real estate within a few decades.
But sea level rise isn’t a gradual, steady thing. The ocean is not a still bowl of water, but a roiling mass tossed around by winds and tides. Long before coastal areas are permanently underwater, they’ll experience increased risk of catastrophic flooding. Hurricane Harvey, which last year flooded much of the city of Houston and became the second most expensive natural disaster in U.S. history (behind another wind-induced coastal flood, 2005’s Hurricane Katrina), is probably a harbinger of more frequent storm-driven disasters.
So for the next few decades, climate change probably won’t send coastal real estate prices crashing, but it does create a tail risk for buyers. Increased probability of coastal flooding makes waterfront real estate a bit like a junk bond — something that will probably go up in value, but has a small to moderate chance of going to zero. Junk bonds generally don’t have a value of zero, but the risk of devastation definitely does depress their selling price.
Recent research confirms that the climate threat is already showing up in prices. Economists Asaf Bernstein, Matthew Gustafson and Ryan Lewis have a recent paper showing that houses exposed to sea-level rise of between 0 and 6 feet have been selling at a 7 percent discount relative to houses a similar distance from the beach that aren’t exposed. The time period they look at is 2007-2016 — before the damage from Harvey. They also confirm that the discount is higher in locations where people report more worry about climate change.
Another recent study, by environmental researchers Jesse Keenan Thomas Hill and Anurag Gumber, shows something similar. Focusing on Miami-Dade County, they show that higher-elevation locations have risen in price faster than similar locations at low elevations. That’s consistent with the theory that wealthy buyers pay a premium to escape flooding risk. High-elevation areas could also have other benefits, of course, such as increased safety from crime — but with crime down dramatically in Miami, this is a less convincing explanation of the increased elevation premium.
In fact, the price differences these economists find may be understating people’s worries about climate change, because of flood insurance. The U.S. government insures many coastal properties against floods, mostly in Texas and Florida. The National Flood Insurance Program charges below-market premiums to many of the riskiest houses, effectively subsidizing owners of the properties most vulnerable to coastal flooding.
Daily Record 30th April 2018, Dozens of elite gun cops tasked with protecting Britain’s nuclear weapons
at Faslane and other military sites are too unfit to carry firearms, it
emerged yesterday. A shocking report into the Ministry of Defence Police
reveals “concern” at the growing number who have been sidelined. The
crisis has emerged after tougher fitness tests equal to those taken by
other armed officers were introduced. Some MoD police – whose jobs include
guarding the nuclear submarine fleet at Faslane, SAS headquarters in
Hereford and GCHQ’s Cheltenham base – have failed the new tests. Others
have simply refused to take part, the Mail on Sunday reported. https://www.dailyrecord.co.uk/news/scottish-news/gun-cops-faslane-too-unfit-12451711
Times 29th April 2018, New nuclear power plants are likely to blow their budgets and arrive late unless their designs are completed before construction starts, a report has warned. Ministers, wary of cost hikes and delays, are wrestling with how to financially support replacements for ageing coal-fired and nuclear plants across the UK.
Hitachi is trying to strike a deal with ministers to build a £10bn-plus plant at Wylfa on Anglesey, where taxpayers are likely to take a stake.
Researchers at Energy Technologies Institute found that most high-cost projects had started construction with incomplete designs, whereas work on low-cost plants had begun only once design and planning had been finalised.
Amsterdam, Netherlands – The “Akademik Lomonosov”, the world’s first floating nuclear power plant, has this morning left St. Petersburg and will be towed through Estonian, Danish, Swedish and Norwegian waters towards Murmansk, warned Greenpeace.
The floating nuclear power plant was initially supposed to be loaded with nuclear fuel and tested on site in the centre of St. Petersburg. However, due to pressure from the Baltic states and a successful petition organised by Greenpeace Russia, Rosatom, the state-controlled nuclear giant that owns and operates the floating nuclear power plant, decided on 21 July 2017 to move loading and testing to Murmansk.
“To test a nuclear reactor in a densely populated area like the centre of St. Petersburg is irresponsible to say the least. However, moving the testing of this ‘nuclear Titanic’ away from the public eye will not make it less so: Nuclear reactors bobbing around the Arctic Ocean will pose a shockingly obvious threat to a fragile environment which is already under enormous pressure from climate change,” said Jan Haverkamp, nuclear expert for Greenpeace Central and Eastern Europe.
Having reached Murmansk, a city of 300,000, the “Akademik Lomonosov” — first in a series of floating nuclear plants planned — will be fuelled, tested and, in 2019, towed 5,000 km through the Northern Sea Route and put to use near Pevek, in the Chukotka Region.
According to Russian media, Rosatom is currently planning a production line, which will be capable of mass producing floating nuclear reactors. Backed by its owner, the Russian State, the company has already been in talks with potential buyers in Africa, Latin America and South East Asia.
“This hazardous venture is not just a threat to the Arctic, but, potentially, to other densely populated or vulnerable natural regions too,” said Jan Haverkamp.
There are indications that 15 countries, including China, Algeria, Indonesia, Malaysia and Argentina, have shown an interest in hiring floating nuclear plants. Among other purposes, the floating nuclear plant is intended to provide power for oil and gas exploration.
“The floating nuclear power plants will typically be put to use near coastlines and shallow water. Contrary to claims regarding safety, the flat-bottomed hull and the floating nuclear power plant’s lack of self-propulsion makes it particularly vulnerable to tsunamis and cyclones,” said Jan Haverkamp.
TOKYO — Hitachi will ask the U.K. government to take a direct stake in the company that is to build and operate a nuclear power plant in Wales which is now 100% owned by the Japanese industrial company. Hitachi expects the U.K. government will invite private British companies to participate and hopes to reduce its own stake to less than 50%.
Nikkei has learned that Hitachi Chairman Hiroaki Nakanishi will shortly travel to the U.K. to discuss the ownership issue and other project terms with British Prime Minister Theresa May.
Hitachi has recently concluded that the risk of proceeding with the Anglesey project, at an estimated cost of more than 3 trillion yen ($27.5 billion), is too great to manage on its own as a private company. It plans to withdraw from the project if restructuring negotiations fall through. Such a move would have significant repercussions for nuclear power policy for both Britain and Japan.
Hitachi acquired complete ownership of the U.K.’s Horizon Nuclear Power in 2012 for 89 billion yen as part of its plan to expand its nuclear business from Japan to foreign markets. It has spent about 200 billion yen preparing for Horizon’s first project, the construction of a plant on the Isle of Anglesey in Wales.
Hitachi hopes to lower its stake in Horizon to less than 50% before construction begins at Anglesey. It has requested that the British government take a direct stake in Horizon and then invite local enterprises to invest.
In response to Hitachi’s concerns, the British government earlier this month proposed that U.K. interests and Japanese public and private interests join with Hitachi to move Anglesey forward. The three sets of shareholders would each put 300 billion yen into the project, giving each a one-third stake. According to sources, the company and the Japanese government see it as too risky for Japanese interests to retain a majority shareholding and hope that British interests will acquire a controlling stake.
London has been leery up to now of taking a direct stake in any new nuclear construction. Hitachi will likely seek in direct talks a commitment to U.K. government investment as well as to additional support that may be necessary to sustain the operation.
Other key project terms also remain unsettled, including the degree to which London would guarantee the 2 trillion yen in loans Hitachi sees as needed to finance the Anglesey development and the price to be paid to Hitachi for the electricity from the plant. London’s proposed price is 20% lower than what Hitachi has requested. The Japanese government plans to guarantee the project’s loans.
The U.K. in December approved the design of the reactor that Hitachi plans to use in Anglesey. The project is now in its final pre-construction phase. The company has targeted to begin construction next year.
With its domestic nuclear industry still crippled by the legacy of the 2011 Fukushima nuclear accident, Japan has been eager to promote nuclear exports. The drive for overseas orders however has struggled as many governments reconsider nuclear power’s merits.
