Cameco uranium company cuts production in view of nuclear industry slowdown
Cameco outlook sours amid doubts on nuclear’s future * Company sees 2012 revenue flat to down 5 percent
* Eyes lower production in 2012
* Shares down 1 pct at C$23.12
TORONTO, Feb 10 (Reuters) – Uranium producer Cameco forecast lower sales and highlighted doubts about the takeup of nuclear power in its stronger than expected quarterly results, and its shares edged lower on Friday, ……
Cameco, the world’s No.1 publicly-listed uranium producer, also lowered its 2012 uranium production outlook by 3 percent to 21.7 million pounds and said delays and cancellations after last year’s Fukushima nuclear disaster could hit prices.
Germany, which represents about 5 percent of the global market for uranium, plans to phase out its reactors by 2022.
Japan shut down most of its reactors for testing after the March 2011 earthquake and tsunami that crippled the Fukushima Daiichi power plant, and is expected to take its remaining three reactors offline for maintenance in the next few months.
“It remains unclear what level of nuclear power Japan itself – which represents 12 percent of global nuclear generating capacity – will depend on in the future,” Cameco said.
Safety and financial woes of USA nuclear reactors
the Public Utilities Commission last week denied a request by Pacific Gas & Electric to bill customers $85 million for its attempt to extend the license of Diablo Canyon, California’s other active nuclear plant.
More Concerns Over San Onofre Safety, San Diego Reader, By Dave Rice February 7, 2012 Concerns about safety and the durability of components at San Onofre Nuclear Generating Station are continuing to surface as the plant approaches a full week of complete shutdown. Continue reading
Russia is privatising its State nuclear corporation Rosatom
Russia Prepares Privatization of State Nuclear Giant Rosatom, Publics BG 6 Feb 12, Russia has compiled a plan for the reorganisation of each state holding company and their subsequent entry into the market Having spent five years combining its nuclear power, engineering and research enterprises into the single entity of Rosatom, the Russian government now sees privatisation of the firm as part of a plan for industrial modernisation…
… its civil nuclear assets – for example nuclear fuel, reactor technology, supply chain, power plant operation, services and waste management – are to become a “public liability
company” with its shares “subsequently sold off….
….. Rosatom had a preliminary agreement with Siemens to partner in nuclear energy in
2009, but this faltered and in 2011 it signed with Rolls-Royce to consider possibilities “for mutually beneficial cooperation in a comprehensive series of activities in Russia, the UK and third countries.”, World Nuclear News reported. http://www.publics.bg/en/news/7037/Russia_Prepares_Privatization_of_State_Nuclear_Giant_Rosatom.html
Dim prospects for global nuclear industry
Prospects for Nuclear Power in 2012, Platts a leading global provider of energy, metals and petrochemicals information., London, 30 January 2012 Even before the Fukushima disaster, the long-awaited nuclear renaissance in the West seemed to be running out of steam. There were two main factors behind this failure; the new Generation III+ reactors produced to take account of the lessons of Chernobyl that would spearhead the revival were not living up to their promises, and, more importantly, banks were proving unwilling to provide finance
Energy Economist – Report.
The key markets for the renaissance were the US and the UK. As pioneers of nuclear power, potentially large markets and countries that seemed to have abandoned plans for new nuclear plants, a successful revival in these countries would have been a powerful endorsement for these new technologies. Continue reading
France, no new nuclear reactors, and can’t afford to shut down existing ones
France must extend nuclear reactor lifespans-audit Jan 31, 2012 Some 22 nuclear reactors will reach 40 years old by 2022
* EDF wants to extend reactors lifespan to 60 years
* Heavy investments needed in short, medium term
PARIS, Jan 31 (Reuters) – France has no option but to extend the lifespan of existing nuclear plants, because any investments in new nuclear capacity or an increase in its reliance on other forms of energy would be too costly and come too late, the French Court of Audit said.
The French independent government body, which is charged with conducting financial and legislative audits, said in a report that a lack of investment decisions to build new reactors meant there were few choices left. Continue reading
Iowa citizens to pay up even if nuclear company walks away!
MidAmerican’s nuclear plant proposal puts risk on consumers, Des Monies Register, 29 Jan 12, Sonia Ashe, Iowa Public Interest Research Group, Des Moines Beyond the lack of public protection against the financial risks and uncertainties associated with the development of new nuclear power, some provisions in Iowa’s nuclear construction work in progress bill, H.F. 561, actually incentivize behavior contrary to the public interest.
The Iowa Utility Board staff recently released a memo that makes clear that H.F. 561, as written, “would shift nearly all of the construction, licensing and permitting risk associated with one or more nuclear plants from the company to its customers.” That certainly
doesn’t provide proper motivation for a utility company like MidAmerican Energy to keep costs low or even follow through with completion of the project.
The memo also warns that H.F. 561 would prevent the Iowa Utility Board from offering traditional protection to consumers in the case of cost overruns, project cancellation or mismanagement.
MidAmerican Energy CEO Bill Fehrman keeps emphasizing that this bill lays all the responsibility and power at the feet of the IUB, but it certainly doesn’t sound like the IUB staff agrees.
If bringing new nuclear power to Iowa means forcing already strapped Iowans to bear all the cost and risk involved, with few protections, I say it’s not worth it. We have other, more cost-effective options that don’t require a blank check in advance….
http://www.desmoinesregister.com/article/20120129/OPINION04/301290080/-1/becker_trial/MidAmerican-s-nuclear-plant-proposal-puts-risk-consumers
Australia’s ailing uranium industry
In short, the deal with India is seen by some as little more than a short term means to prop up an industry breathing its last gasp……
[For uranium explorers] the 52 week highs and lows paints the same picture as we saw for the producers – market participants doubt the viability of exploring for a product whose demand may be in jeopardy.
Share market participants have spoken and they clearly doubt the future of nuclear energy.
URANIUM STOCKS HIT HARD BUT BULLS ARE BELLOWING, The Bull, By Bob Kohut | 30.01.2012 As the dismal trading in 2011 global share markets ground down to its agonising year-end finish, some Australian investors were heartened by the news that our government was about to lift the ban on uranium sales to India.. Continue reading
AREVA’s nuclear sales losses partly offset by renewable energy profits
Areva Reports Fall In 2011 Revenue On Nuclear Concerns –Areva reported full year revenue hit by the effects of Fukushima on the nuclear industry – WSJ By Nadya Masidlover 26 Jan 12, PARIS (Dow Jones)–French state-controlled nuclear engineering firm Areva SA Thursday reported 2011 consolidated revenue down 2.6%, as nuclear operations were hit by growing concern on atomic energy following the Fukushima nuclear accident in March 2011.
The company said that revenue fell to EUR8.87 billion from EUR9.1 billion a year earlier, below analysts’ expectations of EUR8.99 billion.
Areva posted a full-year revenue down 1.2% on a like-for-like basis however revenue in the fourth quarter was stable at EUR2.92 billion, falling 0.5% on a like-for-like basis…. The company said that a decrease in nuclear operations revenue was partly offset by growth in renewable energies business which rose 98.2% to EUR297 million.
EDF’s nuclear plans for Britain are fraught with problems
No easy ride for EDF’s plans for new nuclear, Greenpeace by Richardg – 25 January 2012 Despite the growing shift of support away from nuclear energy in Europe, EDF is stubbornly pushing forward plans to build a new nuclear reactor in the UK, without sufficient consideration for all the relevant risks….. the French state-owned company EDF Energy is trying to build a new nuclear reactor at Hinkley Point in Somerset.
EDF applied for planning permission in late October, less than three weeks after Britain’s nuclear watchdog – the Office of Nuclear Regulation – published a long list of improvementsneeded to protect Britain’s nuclear reactors. Given the scale of the recommendatons in the list, it is not possible for EDF to have incorporated all those improvements into its proposals in just three weeks. Lessons are still being learned following Fukushima (such as ‘don’t delete the minutes of the disaster response meetings’). EDF’s rush to apply for planning permission betrays their cavalier attitude and suggests they can’t have fully considered the implications of the Fukushima disaster.
We are seriously concerned that the flood defences, the emergency response plans and other vital safety features (such as a secure supply of off-site electricity during an emergency) aren’t fit for purpose. There’s a distinctly slap-dash feel to the application: as though EDF were more concerned with keeping the wheels on their nuclear gravy train than with making sure their plans stood up to scrutiny.
We’re not the only ones with concerns about the proposals. EDF’s planning application is also facing fierce opposition from local campaign groups, nuclear experts and Members of Parliament. Local councils have made their own representations, pointing out problems withtraffic levels, waste storage and the impact on tourism.
With 1,200 people registering to comment on their ill-thought out proposals, EDF shouldn’t expect an easy ride. We’ll keep you posted. http://www.greenpeace.org.uk/blog/climate/no-easy-ride-edfs-plans-new-nuclear-20120125
Nuclear company AREVA sales fell in 2011
Areva sales slip as mining cushions Fukushima blow Jan 26 (Reuters) – French nuclear group Areva posted a 2.6 percent fall in 2011 sales as strength in its mining unit helped cushion declines in its core reactor businesses as it restructured following the nuclear disaster in Japan.
Revenues at the world’s biggest maker of nuclear reactors, which in December disclosed a massive write-down tied to three of its African mines, reached 8.87 billion euros ($11.67 billion), with the reactors and services unit showing a 3.6 percent drop…. Since the nuclear disaster at Japan’s Fukushima power plant in March, order cancellations have been 464 million euros.
Reactors and services, which designs and builds nuclear reactors and is Areva’s biggest division, saw revenues slide to 3.26 billion euros as fewer engineering studies were undertaken in the United States.
Areva has been grappling with construction delays at two of its new-generation EPR reactors, while the Fukushima crisis has sparked a global debate about the future of nuclear power and led some governments to review their energy mix.
On top of that, Areva, the world’s biggest uranium mining producer, is bogged down by the $2.5 billion acquisition of Canada’s UraMin in 2007 and allegations of spying on the long-serving Lauvergeon.
Despite the dark cloud of Uramin, Areva’s mining unit had the most robust sales growth of any unit aside from its much smaller renewable energy business, which nearly doubled
Iowa Utilities Board warns on nuclear power cost burden on ratepayers
IUB staff raises red flags about nuclear power plant legislation, Bettendorf.com, January 25, 2012 The Iowa Utilities Board (IUB) staff has raised several warning flags about legislation sought by MidAmerican Energy to shift the risk of building a new nuclear power plant to utility ratepayers.
In a memo sent to the IUB and state legislators in December, the IUB staff warns that “some of these (bill) provisions could create incentives for the company to engage in behavior that could be contrary to the public interest in certain situations.”
To illustrate what might happen, the staff report gives this possible scenario: Continue reading
Cameco uranium company talks big, but future is doubtful
Uranium miners still waiting on that rebound, TIM KILADZE, Globe and Mail , January 24, 2012 When stocks of uranium miners plummeted after last March’s traumatizing Japanese earthquake, some people expected a rebound once the market’s initial shocks and fears subsided.
They’re still waiting.
Close to a year after the earthquake, shares of Cameco Corp. (CCO-T23.54-0.25-1.05%) are still down 40 per cent and smaller rivals are faring just as badly, with Denison Mines (DML-T1.89-0.12-5.97%) down about 50 per cent. The death knell apparently came when Germany declared a retreat from nuclear energy.
Are these miners doomed for good? Depends on who you ask. Investors are clearly too scared to go near the industry, considering the stocks have moved very little since their initial free fall. (Check out a stock chart for the past year.
Quite scary.) But the companies themselves keep saying that everyone has it wrong.
Cameco chief financial officer Grant Isaac repeated this view when he sat down at CIBC World Market’s Whistler conference last week….. there’s still a major problem. Even if Cameco is bullish over the next decade, its consumers, particularly utilities, like to secure long-term supply contracts, and Cameco can’t talk long-term contracts when they would have to lock-in at today’s prices.
So for now, Cameco is touting plans to increase production. Mr. Isaac said Cameco is sitting on 1 billion pounds of reserves and resources, and the firm wants to bump production from 2 per cent of this a year to 4 per cent.
On this front, investors are cautious. Much of this growth centres on developing the second shaft of Cameco’s Cigar Lake project in northern Saskatchewan, and it’s been plagued with problems…..
http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwise/uranium-miners-still-waiting-on-that-rebound/article2313513/
Solar and wind energy investment by Warren Buffett
Buffett’s MidAmerican Starts Renewable-Energy Business, Fox Business By Cassandra Sweet January 24, 2012 The MidAmerican Energy unit of Warren Buffett’s Berkshire Hathaway Inc. (BRKA, BRKB) said Tuesday it has started a new company to oversee a growing stable of solar, wind and other renewable-energy projects.
MidAmerican Energy Holdings Co., of Des Moines, said it has placed solar and wind farms, geothermal power plants and its interest in a small hydroelectric project into a new company called MidAmerican Renewables LLC.
MidAmerican’s president and chief executive, Greg Abel, said the company expects U.S. demand for renewable energy to continue growing and that the company wants “to be a leader in this area.”
On Monday, MidAmerican said it plans to buy an 81-megawatt wind farm in Illinois from Invenergy Wind LLC as part of the company’s growing wholesale renewable-energy business. ……. MidAmerican Renewables said it is considering acquiring more renewable-energy projects that would generate electricity for the wholesale power market to meet growing demand for clean energy.
“We’ll be looking for opportunities to grow this business,” said Tina Potthoff, a spokeswoman for MidAmerican. “We think there’s a growing desire by utilities and other companies to green up their business.”
http://www.foxbusiness.com/news/2012/01/24/buffetts-midamerican-starts-renewable-energy-business/#ixzz1kVVVLdW0
Netherlands nuclear plan shelved
Utilty Shelves Nuclear Plans In The Netherlands –...– Move highlights tough climate for nuclear energy programs… WSJ, By Maarten van Tartwijk, JANUARY 23, 2012 AMSTERDAM (Dow Jones)–In the latest example of waning appetite for atomic power in Europe, Dutch utility Delta NV said Monday it has shelved its plan to build a second nuclear plant in the
Netherlands….
.. The move comes against a backdrop of waning appetite for new nuclear power programs. Last year’s disaster at the Fukushima plant in Japan has prompted many European governments to review their atomic power policies on renewed safety concerns. Germany even decided to fully exit nuclear power, and offset the lost electricity with a
massive buildup of renewable energy….
The nuclear boondoggle – plans for consumers to pay upfront for nuclear power build
Regulators: Nuclear plan could cost Iowa residents By MIKE GLOVER, Chicago Tribune, January 23, 2012, DES MOINES, Iowa— A proposal to shift the expense of building a nuclear power plant from the utility to consumers by billing them in advance for construction costs isn’t in the public interest, Iowa regulators said.
The proposal, which didn’t clear the Legislature last year but could be considered again this session, would let MidAmerican Energy begin billing customers for the plant’s $1 billion or more construction long before it begins providing power.
An analysis by the Iowa Utilities Board summarized in a Dec. 23 internal memo and provided Monday to The Associated Press warned that the plan placed all the risk on consumers, who would pay to research the project before MidAmerican even committed to construction.
“The company would be guaranteed a profit on all spending up to this point,” it said. “This could create a stronger incentive to walk away form a plant than complete it.” ….
It also says the proposed changes could affect more than just nuclear power in Iowa.
“While the current bill restricts those changes to nuclear power, staff believes some provisions may go beyond leveling the playing field and could give a nuclear power plant unintended advantages over alternative sources of electric power,” it said.
Sonia Ashe, of the Iowa Public Interest Research Group, said the analysis merely underscores worries that consumers have had all along.
“The notion that Iowa ratepayers should foot the bill and shoulder the risk for new nuclear plants is pure folly,” Ashe said. “Let’s hope the Iowa Utilities Board staff analysis opens lawmakers eyes to the real risks they’d be passing on to their constituents and puts the final nail in the coffin of this nuclear boondoggle.” …. http://www.chicagotribune.com/news/chi-ap-ia-iowanuclear-analy,0,5049950.story
1 This Month
PLEASE OPPOSE HR 8255 AND S.3639 – bills would accelerate satellite deployment, with no environmental review or safeguards – https://ncstd5li.quorum.us/campaign/169331/
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