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Nuclear Lobby’s convenient amnesia about the sorry history of Small Modular Reaactors (SMRs)

text-SMRsSmall reactors, in fact, date back to the earliest days of atomic power, and this long history shouldn’t
be overlooked as vendors tout new generations of the technology. As the history makes clear, small nuclear reactors would be neither as cheap nor as easy to build and operate as their modern proponents are claiming they would be.

nothing in the history of small nuclear reactors suggests that they would be more economical than full-size ones. In fact, the record is pretty clear: Without exception, small reactors cost too much for the little electricity they produced, the result of both their low output and their poor performance. 

In the end, as an analyst for General Electric pronounced in 1966, “Nuclear power is a big-plant business: it is most competitive in the large plant sizes.” And if large nuclear reactors are not competitive, it is unlikely that small reactors will do any better. Worse, attempts to make them cheaper might end up exacerbating nuclear power’s other problems: production of long-lived radioactive waste, linkage with nuclear weapons, and the occasional catastrophic accident


The Forgotten History of Small Nuclear Reactors
 Economics killed small nuclear power plants in the past—and probably will keep doing so, The Spectrum,  By M.V. Ramana 27 Apr 2015 A tantalizing proposition has taken hold again in the nuclear industry: that small nuclear reactors have economic and other advantages over the standard-size ones being built today. The idea is that by reducing the substantial financial risk of a full-scale nuclear project, small reactors are the best option for kick-starting a much-discussed revival of nuclear power. Continue reading →

May 29, 2015 Posted by | business and costs, technology, thorium | Leave a comment

South Africa’s nuclear company Eskom runs out of money for assessing environmental impact of nuclear energy

nuclear-costs1flag-S.AfricaEskom runs out of money for assessing environmental impact of nuclear energy  SOUTH AFRICA enca.com  23 May 2015 JOHANNESBURG – Government says nuclear power in South Africa is going ahead. Earlier this week Energy Minister Tina Joematt-Peterson said that procurement deals would be signed with prospective partners by the end of 2015.

In the next ten years, government plans to introduce 9600MWs of nuclear energy.

But signing procurement deals is one half of the process. The other half of the process has stalled.

The second version of the environmental impact assessment (EIA) for the site proposed for Nuclear 1, at Thyspunt in the Eastern Cape is not complete.

During a question and answer session in Parliament in March Minister of Public Enterprises Lynne Brown in a written reply said that Eskom had run out of money to complete the report.

“It was put on hold during 2013/14 due to funding constraints in Eskom.  In 2014, additional funds were approved and the finalisation of the Draft Environmental Impact Report (revision 2) was initiated,” noted the reply.

Eskom said this version of the report is due to be released to the public in May 2015 for comment but the Minister of Public Works says this has been put on hold due to the limited funding.

In the Nuclear Energy Policy of 2008,  Eskom was designated as owner operator for nuclear plants in South Africa. The Department of Energy says this means that Eskom is responsible for applying and obtaining various permits including EIA and nuclear licenses.

Eskom has already spent R35 million on the report, which was funded by the income generated from tariffs.

“Eskom, in terms of the electricity regulations, is allowed to budget for and spend money on activities that are deemed prudent for the development of generation project,” noted the power utility in a statement.

However, in 2014 Eskom had to reprioritise its expenditure, “The funding of the EIA was cut in favour of other projects and activities deemed more essential in nature

Costs for the EIA’s specialist studies are now being managed on an individual study and activity level. Still outstanding is the biodiversity offset study, public participation meetings and some still need to go through the independent phase review.

Eskom says this final stage is vital, “This phase of independent review is necessary to ensure that all issues raised have been addressed in an independent and transparent manner.”

The Department Energy says even though it’s not directly involved in the EIA process it is watching Eskom’s progress on the issue……

  • Others watching the process are the Thyspunt Alliance, a group opposing the development in the Eastern Cape.

    Trudi Malan said they are working with their own experts to verify the findings of Eskom’s report, “The problem with the Eskom EIA is that their experts only spend three of four days on the site, when we actually need more information,” she said.

    The first draft of the EIA was thrown out because incorrect methodology was used to do the assessment……..http://www.enca.com/south-africa/eskom-has-no-money-complete-environment-impact-assessment-nuclear-energy-project-site 

May 25, 2015 Posted by | business and costs, South Africa | 1 Comment

Like Japan, South African govt is hiding the true costs of nuclear power

scrutiny-on-costsflag-S.AfricaGovernment hiding nuclear power plant costs: Earthlife Africa http://mybroadband.co.za/news/energy/127160-government-hiding-nuclear-power-plant-costs-earthlife-africa.html

Nuclear critic Earthlife Africa argues that South Africa’s new power plants are another arms deal scandal waiting to happen By  – May 24, 2015 The South African government has done studies on what it would cost to build the planned 6 or 8 nuclear power stations, but it is not releasing the information (Also see: ANC wants to use people’s retirement savings to bail out Eskom).

This is according to nuclear critic and Earthlife Africa project co-ordinator Tristen Taylor, the Sunday Times reported.

Taylor was responding to comments from deputy director general of the Department of Energy, Zizamele Mbambo, who said that it would be premature for government to release figures at this stage, as prices were still being negotiated.

Mbambo’s comments were surprising, Taylor said, adding that government is not releasing the studies because it knows the nuclear power plants are going to cost a lot of money. Continue reading →

May 25, 2015 Posted by | business and costs, politics, secrets,lies and civil liberties, South Africa | Leave a comment

Creative accounting by Japanese govt makes nuclear power LOOK cheap

scrutiny-on-costsThe online magazine Business Journal recently explained the matter in bookkeeping terms. Kansai Electric and other power companies plan to decommission at least five superannuated reactors rather than apply for extensions because their respective output isn’t enough to pay for the government’s new safety measures, which cost about ¥10 billion per reactor. The problem is that once a reactor is shut down permanently, in addition to the cost of decommissioning, the company’s revenue for that plant drops to zero, thus hurting its bottom line even more and making it difficult to borrow money or issue bonds. Consequently, METI is thinking of changing the accounting system so that companies can spread this loss over 10 years, during which they can add a surcharge to every customer’s bill for decommissioning.

Obviously, when METI says nuclear is the cheapest form of energy, they’re not thinking about the user.

highly-recommendedLowball nuclear pitch is fooling no one http://www.japantimes.co.jp/news/2015/05/23/national/media-national/lowball-nuclear-pitch-fooling-one/#.VWJCRtKqpHx BY PHILIP BRASOR  Earlier this month, the Ministry of Economy, Trade and Industry (METI) announced the results of a review of energy production costs, which concluded that nuclear will remain the cheapest alternative for Japan over the next 15 years while pointing out that the calculations took into consideration the government’s new safety measures. By 2030, the cost of producing a kilowatt hour of electricity in a nuclear plant is expected to increase from ¥8.9 to ¥10.1. This estimate also incorporates the presumed savings resulting from those new safety measures, which, METI assumes, will reduce the “frequency” of reactor accidents.

In comparison, energy derived from coal will cost ¥12.9 per kilowatt hour and from LNG ¥13.4, though these figures are based on price increases predicted in 2011. More significantly, the cost of solar will rise from ¥12.4 to ¥16, and wind from ¥13.9 to ¥33.1. Geothermal comes in at ¥19.2. METI said these high costs will “affect development” of renewables, implying that there isn’t much of a future for them.

A few days later, Shukan Asahi ran an article assessing these calculations, pointing out that the figure of ¥10.1 per kW/hour for nuclear is, in the ministry’s statement, followed by the word ijō, meaning “at least,” while figures for other energy sources are not.

The Asahi suggests that METI is trying to assure deniability because it’s almost certain that nuclear-related costs will increase in the future. According to Kenichi Oshima, professor of environmental economics at Ritsumeikan University, the ¥9.1 trillion needed to clean up the crippled Fukushima No. 1 nuclear plant and pay compensation to locals affected by the accident was not factored into the estimate; nor was the cost of decommissioning not only Fukushima No. 1 but other reactors scheduled to go out of service in the next 15 years, and Tokyo Electric Power Co. hasn’t even set a budget for decommissioning Fukushima, a separate procedure from the cleanup. To put matters into perspective, the estimated amount of radioactive material at Fukushima that needs to be processed is equivalent to the amount of radioactive material that would need to be processed from the normal decommissioning of 54 nuclear reactors. Continue reading →

May 25, 2015 Posted by | business and costs, Japan, politics, Reference | Leave a comment

Nuclear reactors to operate for 100 years? That’s what AREVA & Toshiba want

areva-medusa1AREVA,Toshiba  eye 100-year life cycle for nuclear plants  John Downey
Charlotte Business Journal May 22, 2015 Can a nuclear plant run for a century? For
now, federal regulators allow up to 60 years of licensed energy production. But Gary Mignogna, CEO of Charlotte-based Areva Inc.(EPA:AREVA), says it’s time to consider a 100-year life cycle…..He noted that former Duke Energy CEO Jim Rogers had raised questions about whether plants could operate much beyond the 20-year extension the Nuclear Regulatory Commission offers after a plant’s 40-year initial license…….

Reverse engineering Ali Azad, chief executive of Toshiba (TYO:TOSBF) America Energy Systems, also based in Charlotte, says his organization is looking now at 80 years, at least, for existing plants. He says as you prepare to recondition existing plants for extended life, getting replacement parts becomes an issue. In some cases, the original equipment companies are no longer in business, for instance, he said.

So Toshiba is working on reverse engineering to fabricate replacement parts for older plants…..http://www.bizjournals.com/charlotte/blog/energy/2015/05/industry-eyes-100-year-life-cycle-for-nuclear.html

May 23, 2015 Posted by | 2 WORLD, business and costs | Leave a comment

EDF makes an offer to AREVA

flag-franceNuclear: EDF made an offer to over 2 billion euros in the … – Les Echos 23 May 15 As he announced, the president of EDF Jean Bernard Levy has sent this Friday to Areva executives Philippe Varin and Philippe Knoche, its proposal for the resumption of the activity of reactors Nuclear Group (Areva NP, formerly Framatome). Reportedly, this offer values ​​the activities concerned just over € 2 billion, net of liabilities of the company. Specifically, the valuation is calculated on the basis of a multiple of 7.5 times EBITDA (EBITDA) activities occasions, recalculated according to the area concerned and restructurings that have been completed. “ This is an indicative offer, which must be followed by a period of due diligence before being adjusted to become a firm offer, possibly with conditions precedent ,” said a source close to the folder. “ At this point, the offer of EDF covers about a third of the financing needs of Areva, estimated at around 7 billion euros ,” continues the source.

During his public this week, Jean-Bernard Levy was very explicit. If the proposal EDF responds to a request of the State, its majority shareholder…..wseconomymarket.blogspot.com.au

May 23, 2015 Posted by | business and costs, France, politics | Leave a comment

Investors warned ; uranium market still in trouble

The uranium sector DUNDEE CAPITAL MARKETS The Globe and Mail , May. 21 2015 “…..We have concerns regarding negative impact to investor and utility/trader sentiment, which could manifest itself in the already thin spot uranium market. The two other news items might influence investor sentiment but essentially cancel each other out. Uranium stocks retreated yesterday, followed by the price.”

Short Term Warning: One Step Forward,  Two steps BackDundee Capital Markets, 20 May 15 We highlight three short term issues of which investors should be aware, two negative, one positive. Pending TEPCO inventory sales is suggested by media speculation. We have concerns regarding negative impact to investor and utility/trader sentiment, which could manifest itself in the already thin spot uranium market. The two other news items might influence investor sentiment but essentially cancel each other out. Uranium stocks retreated yesterday, followed by the price
1) TEPCO may wish to sell some of its inventory (see link). NEGATIVE IMPACT. TEPCO apparently plans to offload some of its uranium stockpiles by the end of FY2015 in order to cut costs and counteract uncertainty over restart of idled nuclear plants according to media sources. We view this as a supply issue but information is spotty at best, and perhaps a little contradictory when talking about volumes. The article suggests that TEPCO may net US$100 MM by selling half of its excess inventory (defined as being above 2011 levels), yet it also suggests the goal is to sell all excess. This could be in the 6.5 MM lbs range, which is just below 4% of annual demand, but more accurately represents 15% of spot volumes or 3% of total uranium trading volumes last year, based on figures provided in the article. Read-through is fears that uranium may flood the spot market and other nuclear utilities might also sell inventory…….
2) Takahama injunction appeal rejected by Fukui Prefecture Court (see link). NEGATIVE IMPACT. Takahama 3 and 4 reactors are to stay off-line until Kansai Electric Power Co. can prove they are safe to Fukui District Court (previous note). This news is not so much of a demand issue as it is an investor sentiment issue. We also expect lawsuits and injunctions to be normal course of business going forward. Ironically, two other Takahama reactors (1&2) seek 20 year extensions ……

May 23, 2015 Posted by | 2 WORLD, business and costs, Uranium | Leave a comment

Lack of clarity on finances of Bjorn Lomborg’s Climate Action Delaying Centre

Lomborg, BjornIt is unclear that Lomborg himself is a legitimate charity anywhere, but most of the money seems under his control.  One might also wonder where income taxes are paid.

Perhaps with his new $4 million Australia Consensus Center (covered here, here, here) Bjorn Lomborg may pick a better site than a US shipping storefront, since he’ll receive much more taxpayer money, directly, courtesy of the Australian government.  That does seem simpler

Bjorn Lomborg’s Copenhagen Consensus Center – Real Charity Or “Foreign Conduit”? DeSmogBlog  By John Mashey • Sunday, April 26, 2015 Bjørn Lomborg is founder and president of the  Copenhagen Consensus CenterUSA (CCC)), a tax-exempt 501(c)(3) “public charity” whose US physical presence is shown in the image: 262 Middlesex St, Lowell MA. Lomborg and the Copenhagen Consensus Center are known to DeSmog readers for efforts to downplay the importance of addressing climate change, a subset of climate science denialism that has infected the public debate across the English-speaking world.

Despite the name, it has not been based in Copenhagen since 2011. Deputy Director Roland Mathiasson remains there, but Lomborg moved to Prague in 2012.  Workers seem mostly in Hungary, with a few in the US. The Board is Lomborg, Mathiasson, Scott Calahan (Ft Lauderdale) and Loretta Michaels (Washington, DC). Although some money is used for fundraising and PR in the US, much goes abroad to Mathiasson and Lomborg, who is said to travel 200 days a year.

The “real location” of CCC is unclear, and the Internal Revenue Service often cares about this with charities.

Copenhagen Consensus Center is a textbook example of what the IRS calls a “foreign conduit” and it frowns strongly on such things. It may also frown on governance and money flows like this, perhaps “inurement”:

From attached Form 990 summary, more than 60% went directly to Lomborg, travel and $853K promotion of his movie. According to Wikipedia it grossed $63K and the movie poster shows a picture of Lomborg, a light bulb and heading:

“A LIGHT BULB WON’T SOLVE GLOBAL WARMING
THIS GUY’S BRIGHT IDEAS MIGHT“

Even in a simple US charity, poor governance and obvious conflicts of interest are troublesome, but the foreign element invokes stringent extra rules. Legitimate US charities can send money to foreign charities, but from personal experience, even clearly reasonable cases like foreign universities require careful handling.  It is unclear that Lomborg himself is a legitimate charity anywhere, but most of the money seems under his control.  One might also wonder where income taxes are paid.

A foreign group’s creation of a US “shell” charity to gather US funds and funnel them abroad is the most obvious of “foreign conduits” in IRS parlance,  #1 on its list of no-no’s. IRS revocation of 501(c)(3) status not only eliminates tax breaks for ordinary donors, but eliminates entirely crucial major gifts from private foundations like the Randolph Foundation, Ewing Marion Kauffman Foundation and the Paul E. Singer Foundation.

CCC seems to break many rules. Foreign citizen Lomborg is simultaneously CCC founder, president, and highest-paid employee. Most people are a little more subtle when trying to create conduits, as in this example, where the IRS determined someone was not eligible for 501(c)(3) status, despite various stratagems to obscure the relationships.

Perhaps with his new $4 million Australia Consensus Center (covered here, here, here) Bjorn Lomborg may pick a better site than a US shipping storefront, since he’ll receive much more taxpayer money, directly, courtesy of the Australian government.  That does seem simpler…….http://www.desmogblog.com/2015/04/26/copenhagen-consensus-center-real-charity-foreign-conduit

May 23, 2015 Posted by | business and costs, climate change, USA | Leave a comment

New private consortium to decommission nuclear power stations – will cut 1600 jobs

flag-UKMagnox nuclear decommissioning consortium to cut up to 1,600 jobs, Guardian, , 22 May 15  Cavendish Fluor Partnership says plans reflect ‘stepdowns’ in work at nuclear plants around UK The new private consortium that recently won the £4.2bn management contract for the decommissioning of 12 Magnox nuclear power stations has revealed plans to cut up to 1,600 jobs. Cavendish Nuclear, a division of Babcock International, plus its US partner Fluor, said the cuts reflected “planned stepdowns in the work programme” at a number of atomic sites around the UK.

The move comes amid speculation that Babcock is preparing to demand millions of pounds of extra subsidies from the Nuclear Decommissioning Authority (NDA) on the grounds that the workload was much heavier than anticipated.

money-in-wastes-2

Unions expressed shock that staff, agency and contract workers would lose their jobs between now and September 2016, although the Cavendish Fluor Partnership said it would try to find some alternative posts. Eleven of the plants have already shut down and the remaining one in operation – Wylfa on Anglesey in North Wales – is due to stop generating power at the end of the year.

Problems with the decommissioning of the separate Sellafield site in Cumbria have recently led to the private consortium there which includes Amec and Areva of France – being thrown off the management contract.

The 12 nuclear power sites managed by the Cavendish consortium for Magnox include Berkeley, Gloucestershire; Bradwell, Essex; and Hinkley Point A in Somerset.

EDF last month announced plans to cut 400 construction jobs at the site of the planned new atomic plant of Hinkley Point C.

The reduction in workers comes amid continuing delays over a final investment decision on the £24.5bn project as negotiations with potential investors continue to move more slowly than expected. http://www.theguardian.com/business/2015/may/21/magnox-nuclear-decommissioning-consortium-cut-1600-jobs

May 22, 2015 Posted by | business and costs, employment, UK, wastes | , , , , , | Leave a comment

Engie not willing to acquire troubled nuclear company AREVA

scrutiny-on-costsflag-franceEngie will not acquire struggling French nuclear group Areva, Ft.com 21 May 15  Michael Stothard in Paris Engie would consider working with struggling French nuclear group Areva on some business lines but is not looking for any full-blown acquisitions to help rescue the company, according to the chief executive of the utility.

“If we consider something, it would be in co-operation with Areva, not simply an acquisition of some assets,” Gérard Mestrallet told the Financial Times on the sidelines of a business and climate change conference in Paris

The comments come as the French government looks to elicit the aid of French companies to help rescue Areva, which reported a €4.8bn loss last year.

Areva, which is 87 per cent government-owned, has fallen victim to a slump in global demand for new reactors that followed the 2011 Fukushima disaster in Japan, as well as crippling cost overruns at key projects…….

Any deal between Areva and Engie would be likely to come alongside a much larger agreement with EDF, which earlier this week outlined its preference for a broad rescue package to acquire Areva NP, the division that designs, manufactures and maintains nuclear reactors.

“The more ambitious proposal from EDF will preserve the technical expertise of Areva’s reactor business and create the possibility of partnerships with outside groups from France or elsewhere,” said Jean-Bernard Lévy, EDF’s chief executive.

The more ambitious proposal from EDF will preserve the technical expertise of Areva’s reactor business and create the possibility of partnerships with outside groups from France or elsewhere– Jean-Bernard Lévy, EDF’s chief executive

Another option on the table would see EDF, which is 85 per cent state-owned, simply recruit 1,200 Areva engineers who specialise in nuclear safety. This would require a greater injection of capital in the group from the government, however.

It is ultimately up to Paris to decide between these two options. A decision could come as early as June ……….3.http://www.ft.com/intl/cms/s/0/3d592a50-ffb8-11e4-8c46-00144feabdc0.html#axzz3aoqg2DDh

May 22, 2015 Posted by | business and costs, France, politics | Leave a comment

Investors flee Nordic nuclear company Vattenfall

graph-down-uraniumNuclear Shutdowns Are Leaving Vattenfall’s Bond Investors  Cold , Bloomberg,  , 21 May 15 A jump in power prices hasn’t been able to lift Vattenfall AB bonds as investors worry the Swedish utility will write down more nuclear assets.

While Nordic power prices have risen from record lows after Vattenfall said it would close its two oldest reactors, yield spreads on the utility’s bonds are little changed. The closing plans instead directed attention to the poor Nordic market outlook for investors who had focused on Vattenfall’s woes in Germany, according to Ebba Lindahl, an SEB AB analyst.

“We see an increased risk of smaller cash flows from nuclear generation in the future and further write downs of assets that will not be fully compensated by the increase in power prices,” she said in a phone interview…….

A surge in renewable energy output in Nordic region, coupled with demand still below 2008-levels, has pushed power prices so low that the once-steady cash cow of nuclear production has become a liability.

The company is majority owner of seven reactors in Sweden and also owns thermal coal, lignite and gas units in Germany, which are poorly suited to the European Union’s aim for a transition to low-emission energy systems, according to Ingvar Mattsson, a senior analyst at Swedbank AB.

Vattenfall’s plans to close the two reactors early “reflects a tough market situation with low power prices, and thus a lower valuation of nuclear assets,” he said by phone. “Vattenfall is also obviously exposed to political risks in both Germany and Sweden.” http://www.bloomberg.com/news/articles/2015-05-20/nuclear-shutdowns-are-leaving-vattenfall-s-bond-investors-cold

May 22, 2015 Posted by | business and costs, Sweden | Leave a comment

Finland pulls out of building Olkiluoto 4 nuclear reactor

Finland cancelsthumbs-down – is the EPR finished?, The Ecologist,  Dr Jim Green & Oliver Tickell 15 May 15 

This week Finland cancelled its option for a second European Pressurised Reactor as the existing EPR project sinks into a abyss of cost over-runs, delays and litigation, writes Jim Green. It now looks like the EPR is a failed technology and its owner, French nuclear giant Areva, is fast running out of both money and orders as its ‘hot prospects’ evaporate.

There’s been plenty of bad news recently for the European Pressurised Reactor (EPR) nuclear power station design.

And now there’s more. The Finnish electricity company TVO announced this week that it had cancelled plans to build a second EPR at Olkiluoto in western Finland because of delays and problems with the first EPR on the site currently being built by Areva and Siemens.

That plant, Olkiluoto 3, is running severely over time and budget. Construction began in 2005 and it is not expected to commence operating until 2018, nine years late.

The estimated cost has risen from €3.2 billion (US$3.6b) to €8.5 billion (US$9.5b). Areva has already made provision for a €2.7 billion (US$3.0b) writedown on the project, with further losses expected. FTVO and Areva / Siemens are locked ina €10 billion legal battleover the cost overruns.

Finland’s government had given TVO a deadline of 30th June to request a building permit for its planned Olkiluoto 4 plant. TVO said it would not pursue the project due to “the delay of the start-up of Olkiluoto 3 plant unit.”

It added: “In this situation it is impossible to make significant Olkiluoto 4 related decisions necessary for the construction license application.” Continue reading →

May 20, 2015 Posted by | business and costs, France, politics, Reference | Leave a comment

Tough times ahead for the global nuclear industry

nukes-sad-Survival of the fittest? World’s major nuclear builders are in for a long stretch in the red, Bellona, May 18, 2015 by ,  MOSCOW – Judging by the numerous reports on negotiations under way over new reactor construction projects, 2015 should be a pivotal year for nuclear power development across the world. The most vigorous efforts toward expanding their presence on the international markets are applied by the Russian Rosatom and France’s Areva. But all is not so rosy with both companies’ balance sheets. In free market conditions, without generous subsidies from state budget, the industry is as good as paralyzed, and it’s no wonder that its leaders are made of those with access to state coffers. Will the largest nuclear competitors find salvation in their governments’ support? Continue reading →

May 20, 2015 Posted by | business and costs, Russia | 2 Comments

Gloomy financial situation for AREVA in so many ways

Despite the guaranteed increased purchase price for Hinkley Point C’s power, however, investors are not in a hurry to jump on board with a project where Areva will not just build the reactors but is also to bring in funding in the amount of 10% of the project’s total cost. The problem is that last fall, the company admitted it was having serious economic difficulties, which may cause it to fail to deliver on the financial commitments in the Hinkley Point C project.

Areva’s economic troubles have to do with another project the company is pursuing: the highly problematic reactor construction at a new site in Olkiluoto, Finland.

Survival of the fittest? World’s major nuclear builders are in for a long stretch in the red, Bellona, May 18, 2015 by ,  MOSCOW 

“………..The project considered to be the flagship for the French nuclear industry in Europe is the nuclear power plant Hinkley Point C in Great Britain, estimated at €24 billion. The project envisions building two reactors of the EPR – for “European Pressurized Reactor” – design in Somerset, in England’s southwest. No new reactor construction was previously undertaken in Great Britain for a period of many years, and, on account of nuclear energy’s less than perfect reputation from the economic point of view, such a large-scale endeavor in a country with a market economy seemed quite unlikely.

Yet, the project received both the British government’s approval and state guarantees on a fixed purchase price for the power the future plant will be generating. A favorable determination on the project was eventually also handed down by the European Commission, which had been looking into the legality of the state guarantees provided to Hinkley Point C. What the grievances against the project boil down to is that purchase of power from Hinkley Point C at a guaranteed price – one that is substantially higher than today’s energy prices – has too close a semblance to state subsidies, and the latter is prohibited in the EU. This was the reason why far from all the European ministers voted in favor of the project, and litigation is still expected on the matter: Austria, which has voiced its disagreement with the European Commission’s decision, intends to challenge it in court.

Despite the guaranteed increased purchase price for Hinkley Point C’s power, however, investors are not in a hurry to jump on board with a project where Areva will not just build the reactors but is also to bring in funding in the amount of 10% of the project’s total cost. Continue reading →

May 20, 2015 Posted by | business and costs, France | Leave a comment

Trying to cut costs, TEPCO to sell uranium stockpile

Tepco looking to sell some uranium stockpiles to cut costs Japan Times, 19 May 15 Tokyo Electric Power Co. is planning to sell part of its uranium stockpiles for nuclear power generation in the current business year to cut costs amid uncertainty over the restart of idled nuclear plants, a company document obtained by Kyodo News showed Monday.

Tepco has not consumed uranium since the 2011 nuclear crisis started at its Fukushima No. 1 complex that eventually resulted in all of Japan’s nuclear reactors being taken offline amid safety concerns. By reducing the stockpiles, the utility is seeking to slash costs for managing them as it faces funding difficulties stemming from the nuclear crisis.

According to the document, Tepco aims to reduce the amount of uranium to levels prior to the Fukushima disaster by the end of fiscal 2015 through March. The company estimated in the paper it can secure ¥12.3 billion ($103.13 million) by selling around half of the planned amount……..

Major utilities including Tepco procure uranium, which could be diverted to military use, under long-term contracts from overseas suppliers in Canada and elsewhere.

As of the end of March, Tepco had a total of 17,570 tons of uranium (tU), equivalent to the amount used at the Kashiwazaki-Kariwa plant for 10 years, compared with 16,805 tU at the time of the nuclear disaster in March 2011.

The amount would increase to 19,317 tU in fiscal 2015 if the company does not sell some of the stockpile.The utility will likely return it to the suppliers or pay for the costs of uranium enrichment in kind, while it will also consider terminating uranium purchase contracts and reducing purchase volumes to streamline its business, according to the document.

Japan Atomic Power Co. has also taken the rare step of selling some of its uranium, apparently to raise money to repay loans amid its faltering business conditions. http://www.japantimes.co.jp/news/2015/05/19/business/corporate-business/tepco-looking-sell-uranium-stockpiles-cut-costs/#.VVv7z7mqpHw

May 20, 2015 Posted by | business and costs, Japan, Uranium | Leave a comment