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The science-based case for excluding Nuclear Fission Technologies from the EU Taxonomy 

The question whether nuclear fission energy complies with the ‘do no significant harm’ (DNSH) criteria of the EU Taxonomy was the focus of the Technical Expert Group (TEG) DNSH assessment on nuclear fission technologies which recommended to the Commission that nuclear should not be included in the EU Taxonomy of environmentally sustainable activities.  

The independent scientific evidence which the TEG presented to the European Commission, shows evidence of adverse impacts to the natural environment arising from the many processes involved in the nuclear power lifecycle (from uranium mining to waste disposal) that are operational today. 

The Argument against Nuclear Power as Sustainable for FinancePetitions.net, 26 Dec 21, Europe’s ‘science-based’ Sustainable Finance Taxonomy is politicised to include nuclear power. 

The Science-based case for excluding Nuclear Fission Technologies from the EU Taxonomy One of the most influential policy initiatives of the European Commission in the past years has been the “EU Taxonomy”, essentially a shopping list of investments that may be considered environmentally sustainable across six environmental objectives. 

To be deemed EU Taxonomy aligned, the activity must demonstrate a substantial contribution to one environmental objective, such as climate change mitigation, whilst causing no significant harm to the remaining five environmental objectives (climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems). 

All eligible activities are required to comply with technical screening criteria (TSC) for ‘substantial contribution’ and ‘do no significant harm’ and to demonstrate that social safeguards are in place. 

The EU Taxonomy provides a common language for sustainability reporting, a foundation for green bond reporting and much more. It is intended to be used by international financial markets participants whose products are sold within the EU in order to evaluate the sustainability of their underlying investments.  The use of the EU Taxonomy is furthermore compulsory for the EU and member states when introducing requirements and standards regarding environmental sustainability of financial products, such as an EU ecolabel for investment products or an EU Green Bond Standard. 

It will also apply to 37% of activities earmarked as ‘climate-friendly’ financed by the EU COVID-19 recovery funding. Its science-based approach is designed to give confidence to a wide range of international stakeholders that environmental claims are not greenwashing.

The question whether nuclear fission energy complies with the ‘do no significant harm’ (DNSH) criteria of the EU Taxonomy was the focus of the Technical Expert Group (TEG) DNSH assessment on nuclear fission technologies which recommended to the Commission that nuclear should not be included in the EU Taxonomy of environmentally sustainable activities.  

Taking into account the significant financial implications of adopting the TEG recommendations, it became the starting point of intense behind-door lobbying. France led a coalition of 10 EU Member States arguing that nuclear fission as well as gas-fired power plants should be included in the Taxonomy. Together with Finland (Olkiluoto-3), France is at present the only EU country constructing a new nuclear power plant (Flamanville-3). The Finnish and French construction sites were meant to be the industrial demonstration of an evolutionary nuclear technology (the “European Pressurised water Reactor” or EPR). Olkiluoto-3 was meant to start generating power in 2009, followed by Flamanville-3 in 2012. Instead, the projects turned out to have multiple engineering difficulties and financial constraints that resulted in significant delays culminating in missed deadlines for various production start dates and tripling unit cost……………………. the independent scientific evidence which the TEG presented to the European Commission, shows evidence of adverse impacts to the natural environment arising from the many processes involved in the nuclear power lifecycle (from uranium mining to waste disposal) that are operational today.  …………

Does the present generation of nuclear fission power plants ‘do no significant harm’? To answer this question, two specific issues for nuclear power stand out: the risk of a catastrophic accident and the management of high-level nuclear waste (HLW)………………………………

Especially relevant for nuclear fission power is the fact that the liability of the operator in the case of a severe accident is limited and the remaining costs are (largely) taken on by the state (privatization of profits, socialization of risks).

The Taxonomy architecture is not designed to cater for such risks that carry an intergenerational impact lasting for thousands of years, making it an unsuitable instrument to decide on the sustainable nature of nuclear power. The characteristics and nature of HLW generated by the nuclear fission process presents long-term intergenerational risks and thereby challenge the principle of  ‘do no significant harm’ to the extent that nuclear fission energy may not be considered eligible for the EU Taxonomy. 

This was made abundantly clear to the Commission in the TEG’s recommendations, which were not published in their entirety. Independent, scientific, peer-reviewed evidence compiled by TEG provided confirmation of the risk of significant harm arising from nuclear waste. The back end of the fuel cycle is currently dominated by the containment of spent fuel rods and waste from nuclear power facilities. Safe and secure long-term storage of nuclear waste remains unresolved and has to be demonstrated in its operational complexity. ……….

The fact that a ‘solution’ has to be found for the existing quantities of waste (as well spent fuel as conditioned high level waste forms), and that geological disposal is the least bad solution for this, does not imply that nuclear power can suddenly be classified as a ‘green’ energy source. 

Other concerns with regard to DNSH criteria Nuclear fission power plants require about three cubic metres of cooling water per megawatt hour (MWh) produced. A nuclear plants’ cooling water consumption is higher than that of fossil-fuel plants. Throughout the world, new nuclear plants and existing plants increasingly face cooling water scarcity induced by heat waves, a situation that is likely to be aggravated by climate change…..

For reasons of having access to enough cooling water, nuclear plants are mostly sited in coastal or estuarine locations, but this makes them vulnerable to flooding and extreme events that climate change may occasion. The siting of nuclear power plants along coastal zones presents adaptation risks associated with sea-level rise, water temperature rise, coastal erosion as well as natural catastrophes such as the Fukushima disaster demonstrates. ………………..

when major nuclear plant accidents occur significant land areas become unsuitable for human habitation (e.g. Chernobyl, Fukushima). …….

Surface or underground mining and the processing of uranium ore can substantially damage surrounding ecosystems and waterways. The huge volumes of associated mining waste in developing countries are normally not considered in life cycle waste inventories of nuclear energy producing countries. More critically, the adverse effects on local environmental conditions of routine discharging of nuclear isotopes to the air and water  at reprocessing plants have not been considered thoroughly enough. A number of adverse impacts (of radiation) on soil/sediment, benthic flora and fauna and marine mammals has been demonstrated.  

Should nuclear fission power be included in the taxonomy as a transition activity? According to Article 10 (2) of the Taxonomy Regulation, which is the law underpinning the EU Taxonomy, activities that are incompatible with climate neutrality but considered necessary in the transition to a climate-neutral economy can be labelled and supported as ‘transition activities’…………

 A key principle of the EU Taxonomy is to avoid environmentally harmful ‘lock-in’ effects of activities. Lock-in describes the phenomenon whereby it is difficult to set a technical and political system on a new path once it has developed a momentum of its own and once it is ‘locked-in’ on a certain path. ……

Nuclear fission plants require at least 10 years to be built (with recent experience even pointing in the direction of 20 years for the EPR), while they have to remain operational for 50-60 years. Decommissioning will then take another 20-50 years. This means that a decision to build new nuclear power plants will lock in societies for some 80-130 years, not counting the years needed to store spent fuel or dispose of high-level waste. …

 A decision to include nuclear fission into the energy mix of the EU Taxonomy sustainable activities will during this period therefore channel much needed capital away from renewable energy technologies, which do not present long-term and catastrophic risks to humans and the environment as nuclear fission does. ……………………………………..

Signed by EU Taxonomy subgroup DNSH TEG members and expert supporters:

Dawn Slevin, Dr. Erik Laes, Paolo Masoni, Jochen Krimphoff, Fabrizio Varriale, Andrea Di Turi, Dr. Ulrich Ofterdinger, Dr. Dolores Byrne, Dr. Petra Kuenkel, Ursula Hartenberger, Kosha Joubert  

Link to PDF Version of the Statement of Concern sent to the Commission on 21 Dec 21: 

 https://www.petitions.net/the_argument_against_nuclear_power_as_sustainable_for_finance .petitions.net/the_argument_against_nuclear_power_as_sustainable_for_finance

December 27, 2021 Posted by | climate change, EUROPE | Leave a comment

Julian Assange’s lawyers start process for UK Supreme Court appeal against his extradition to America

Julian Assange’s lawyers start process for Supreme Court appeal to stop WikiLeaks founder being extradited to US and tried on espionage charges

  • Fiancee Stella Moris said application to bring appeal filed after 11am Thursday
  • Judges must now decide whether to hear the case before any appeal takes place
  • He is wanted in the US over alleged conspiracy to disclose national defence information

Daily Mail. By TOM PYMAN FOR MAILONLINE, 24 December.   Julian Assange‘s lawyers have started the process for a Supreme Court appeal to stop the WikiLeaks founder being extradited to the US and tried on espionage charges, his fiancee has said.

Stella Moris said Assange filed an application to bring an appeal shortly after 11am on Thursday.

As his lawyers have applied to take his case to the Supreme Court, the UK’s highest court, judges must now decide whether to hear the case before any appeal takes place.  Ms Moris, a lawyer and the mother of his two children, said in a statement on Thursday the High Court must first ‘certify that at least one of the Supreme Court appeal grounds is a point of law of general public

importance’ before the application has a chance to be considered by the Supreme Court.

A decision is not expected before the third week of January, Ms Moris added.

Birnberg Peirce Solicitors, who are representing Assange, said in a statement: ‘We believe serious and important issues of law of wider public importance are being raised in this application.

They arise from the Court’s judgment and its receipt and reliance on US assurances regarding the prison regimes and treatment Mr Assange is likely to face if extradited.

‘Because this application is now the subject of judicial consideration, his lawyers do not propose to comment further at the moment.

‘We hope and trust the High Court will grant a certificate on the questions raised as well as giving permission to appeal in order that they can thereafter be fully argued before the Supreme Court.’……………….. https://www.dailymail.co.uk/news/article-10341045/Julian-Assanges-lawyers-start-process-Supreme-Court-appeal.html?ito=social-twitter_dailymailUK

December 27, 2021 Posted by | Legal, UK | Leave a comment

Germany steadfast in rejecting nuclear power, aims for 100% renewables


 The Germans persist and sign against nuclear power and for renewables.
Across the Rhine, the debate pushed by France on nuclear power, presented
as “green” energy, is clearly not taking hold. The consensus remains
around the bet made by the new government that a direct switch to “all
renewable” is possible and will ultimately pay off much more, even if it
involves painful decisions.

 Mediapart 25th Dec 2021

 https://www.mediapart.fr/journal/international/251221/les-allemands-persistent-et-signent-contre-le-nucleaire-et-pour-le-renouvelable

December 27, 2021 Posted by | Germany, politics international, renewable | Leave a comment

Belgium to shut down all 7 nuclear reactors in 2025

 Nuclear: the Belgian government confirms the shutdown in 2025 of the
country’s seven reactors. As planned, Belgium will shut down its two power
plants, but is not closing the door to new generation nuclear power. An
agreement was torn off on Thursday after a night of negotiations between
the partners of the government coalition.

 Liberation 23rd Dec 2021

https://www.liberation.fr/environnement/nucleaire/nucleaire-le-gouvernement-belge-confirme-larret-en-2025-des-sept-reacteurs-du-pays-20211223_5HUXXHO645DKBPEHJZUGINMR3M/
 Les Echos 23rd Dec 2021

https://www.lesechos.fr/industrie-services/energie-environnement/la-belgique-confirme-sa-sortie-du-nucleaire-des-2025-1374495

December 27, 2021 Posted by | decommission reactor, EUROPE | Leave a comment

Radiation Free Lakeland joins the call against watering down safety regulations for nuclear fusion reactors.


Radiation Free Lakeland add our voice to the call from Nuclear Free Local
Authorities that the already inadequate nuclear regulations are not watered
down when it comes to dangerous fusion reactors. Fusion experiments require
enormous amounts of heat and energy. The nuclear wastes from the fusion
experimental reactors already amounts to 3000 cubic metres of nuclear
wastes from the Culham experimental reactor alone. Nuclear Free Local
Authorities say the following and RaFL agree that: Public safety must come
before profit: Nuclear Free Local Authorities call for ‘no watering
down’ of nuclear regulation for fusion reactors.

 Radiation Free Lakeland 23rd Dec 2021

 https://mariannewildart.wordpress.com/2021/12/23/fusion-licensed-to-kill/

December 27, 2021 Posted by | safety, UK | Leave a comment

France’s Environmental Authority requires a list of all the problems encountered in building the Flamanville EPR nuclear reactor

 An inventory of incidents on the EPR required according to the
Environmental Authority. In its latest opinion, the Environmental Authority
recommends a listing of all the problems encountered during the
construction of the EPR, as well as an update on the various solutions
provided.

 France Bleu 23rd Dec 2021

https://www.francebleu.fr/infos/environnement/un-etat-des-lieux-des-incidents-sur-l-epr-necessaire-selon-l-autorite-environnementale-1640277425

 Science & Avenir 23rd Dec 2021

https://www.sciencesetavenir.fr/nature-environnement/nucleaire-l-autorite-environnementale-reclame-plus-d-informations-sur-flamanville_160059
Le Figaro 23rd Dec 2021

https://www.lefigaro.fr/flash-eco/nucleaire-l-autorite-environnementale-reclame-plus-d-informations-sur-flamanville-20211223

December 27, 2021 Posted by | environment, France, safety | Leave a comment

Belgian government to close its nuclear plants by 2025

The Belgian government agreed in principle on Thursday to close its
nuclear power plants by 2025, but left open the possibility of extending
the life of two reactors if it could not otherwise ensure energy supply.
The seven-party coalition has wrestled for months with the topic, with the
Greens adamant that a 2003 law setting out a nuclear exit be respected,
while the French-speaking liberals favoured extending the life of the two
newest reactors. The government had given itself an end-2021 deadline to
settle the matter.

 Reuters 23rd Dec 2021

https://www.reuters.com/markets/commodities/belgian-government-reaches-deal-nuclear-exit-media-2021-12-23/
 The Belgian government agreed in principle on Thursday to close its
nuclear power plants by 2025, but left open the possibility of extending
the life of two reactors if it could not otherwise ensure energy supply.

 Globe and Mail 23rd Dec 2021

https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-belgian-government-reaches-agreement-in-principle-to-close-its-nuclear/

 Euro News 23rd Dec 2021

https://www.euronews.com/2021/12/23/belgium-to-shut-down-all-seven-of-its-nuclear-reactors-by-2025

 BBC 23rd Dec 2021

https://www.bbc.co.uk/news/world-europe-59768195

December 27, 2021 Posted by | decommission reactor, EUROPE, politics international | Leave a comment

France short of electricity, as it shuts down 2 nuclear reactors due to safety concerns

In the face of a continent-wide energy
crisis, France has resorted to using fuel oil to meet its power needs in
order to avoid a blackout. Despite the fact that Paris is usually a major
power exporter, it has recently increased electricity imports and even
burned fuel oil to “keep the lights on” in the country.

This energy shortage has arisen as a result of EDF Energy’s decision to shut down two
nuclear power plants due to safety concerns. At its Civaux nuclear power
station, the state-owned energy company discovered flaws in a safety
system’s pipes. It also stated that another plant, which used the same
type of reactors, would be shut down. In the two reactors in Western
France, the problem was discovered near the welds on the pipes of the
safety injection-system circuit.

 Brinkwire 22nd Dec 2021

December 27, 2021 Posted by | ENERGY, France | Leave a comment

European Commission experts call on EU not to label nuclear ‘green’.

Commission experts call on EU not to label nuclear ‘green’,  https://euobserver.com/climate/153891, BWESTER VAN GAAL 22 Dec 21

BRUSSELS, Thirteen members of the EU Commission’s Technical Expert Group (TEG) put out a petition on Tuesday (21 December) calling on nuclear energy not to be labelled as ‘green’.

“We recommend that nuclear fission has no place on the EU taxonomy of sustainable activities,” the group, led by Dawn Slevin, a financial expert and core member of the commission’s financial stability TEG, wrote.

Dealing with the “do no significant harm” principle in the taxonomy, they concluded nuclear may damage the environment due to the need to store it in underground bunkers for thousands of years, and “because the risk of a severe nuclear accident cannot be excluded, even in the best commercially available nuclear power plants.”

They also warn against politicisation of the rules. “Proponents of nuclear energy use the taxonomy to put a ‘scientific’ stamp on what is primarily a political position on nuclear fission energy aiming to satisfy the few EU member states that wish to promote the associated technologies,” the petition states.

France is spearheading an alliance of 10 member states that argue that nuclear fission and gas-fired power plants should be included in the taxonomy.

The TEG members point out that France and Finland are currently the only EU countries actively building nuclear facilities.

The Finnish Olkiluoto-3 was meant to start generating power in 2009, followed by the French Flamanville-3 in 2012.

However, both are still not operational, tripling anticipated costs, the group wrote. The group includes Paolo Masoni, a nuclear engineer, and Eric Laes, a post-doctoral researcher specialising in atomic energy at the Technical University of Eindhoven.

Politicised debate

In recent months, the decision on whether to include nuclear and gas in the taxonomy has become politicised.

Last week, EU internal market commissioner Thierry Breton told five European newspapers, including Die Welt, that “it is a lie that the EU can become CO2-neutral without nuclear power.”

French president Emmanuel Macron said last week that France and Germany will try to find a compromise on whether the EU should label nuclear and gas as green investments.

But on Monday, the German Greens, part of the new ruling coalition, came out strongly against nuclear, reiterating their opposition to the inclusion of nuclear in the taxonomy.

“The German government’s stance is that nuclear power is not one of the sustainable forms of energy [that] remains,” environment minister Steffi Lemke told fellow EU environment ministers in Brussels on Monday.

German climate and economics minister Robert Habeck later echoed his colleague on German radio Deutschlandfunk, saying: “I do not think nuclear power is the right technology.”

However, chancellor Olaf Scholz (SPD) did not make such a clear statement at the last EU summit on Friday – and admitted Germany will probably not be able to stop the French push for nuclear.

“France is taking a different path [than Germany]. Other countries do as well,” he said.

“That is why it’s important that you can follow your paths and at the same time stay together across Europe,” he added.

The commission planned to present its decision on nuclear and gas on Wednesday, but this has been postponed until mid-January next year.

It now plans to consult a draft version of the taxonomy with member states before the end of the year or at the start of January 2022 – a process that will be clarified on Wednesday.

The Sustainable Finance Platform, a group of 57 NGOs, scientific and financial experts will also be consulted.

The commission has faced backlash in the past from some of its members, including one of the signatories of the petition, for allowing gas an nuclear to be considered in what was meant to be a science-led exercise.

December 24, 2021 Posted by | climate change, EUROPE | Leave a comment

European Commission facing a backlash from Greta Thunberg and environmentalists over plans to include nuclear and gas in the EU ”green” taxonomy.

The European Commission is facing a backlash from Greta Thunberg and
fellow climate activists over plans to include gas and nuclear energy in a
“green” investment guidebook

. Both energy sources are expected to
feature in the next part of the EU’s “taxonomy for sustainable
activities”, which is expected at the end of the year, following a period
of intense political bargaining between the commission president, Ursula
von der Leyen; the French president, Emmanuel Macron; and Germany’s new
chancellor, Olaf Scholz.

The EU taxonomy is a green classification system
that is intended to guide investors to projects that are in line with
Europe’s goal of net zero emissions by 2050 and better protection of
nature.

 Guardian 21st Dec 2021

https://www.theguardian.com/world/2021/dec/21/eu-in-row-over-inclusion-of-gas-and-nuclear-in-sustainability-guidance

December 24, 2021 Posted by | climate change, EUROPE | Leave a comment

Depleted uranium exports to Russia are not a ”resource” – they are radioactive waste

Our conclusion is that this form of TENORM (technically enhanced naturally occurring radioactive material) should be considered in principle as a waste material, for which full transparency should be assured over its complete chain of management,

DU Exports to Russia – A case of lack of transparency and research Nuclear Transparency Watch By Jan Haverkamp (Greenpeace, WISE) December 21,

From 1996, the uranium enrichment facilities URENCO Almelo (Netherlands) and URENCO Gronau (Germany) regularly sent shipments of depleted uranium (DU) in the form of UF6 (uranium hexafluoride) to TENEX, later TVEL, in Russia, where this was stored in the open air in Seversk in the Krasnoyarsk region. Protests in Europe then halted these transports in 2009. TVEL is since 2007 a subsidiary of the Russian nuclear giant Rosatom. URENCO carries out enrichment for nuclear fuel production from natural uranium to low-enriched uranium for clients all over the world and has facilities in the Netherlands, Germany and the UK.

In 2019 and 2020, these transports were resumed from the enrichment facility of URENCO Gronau and URENCO UK in Capenhurst.

URENCO Almelo currently has a permit for export, but does not use it. Its DU is sent to France for conversion into stable U3O8 (depleted tri-uranium-octo-oxide or uranium oxide), which is returned to the Netherlands and handed over to the waste management organisation COVRA for interim storage in the VOG facility, awaiting final disposal after 2100.

The claim is that the DU is sent to TENEX, later TVEL, for re-enrichment to natural level and reuse of the resulting double depleted uranium (DDU). Rosatom furthermore claims[2] that DDU and DU are used industrially and that the UF6 also delivers fluorine for reuse purposes. It furthermore, describes in detail how it wants to convert its UF6 stockpile into uranium oxide for waste treatment before 2057.

Continue reading

December 24, 2021 Posted by | depleted uranium, Russia, wastes | Leave a comment

The design fault in the Taishan nuclear reactor could affect other EPR reactors, including Finland’s Olkiluoto station.

 Finnish Nuclear Safety Authority STUK has given its approval to start the
reaction nuclear and low power tests for the EPR OL3 reactor built with a
lot of difficulties by the Areva Siemens consortium in Olkiluoto.

The start took place on Tuesday 21 December 12 years behind the initial project and
with a budget multiplied by 3. The serious malfunctions that affected the
Taishan 1 EPR reactor in China show that this technology is not developed.

Information transmitted to CRIIRAD by a whistleblower indicate that the
nuclear fuel assemblies for the Taishan 1 reactor were severely damaged
during the second irradiation cycle. This situation is probably related to
a fault in design that is reasonably expected to affect other RPEs.

 CRIIRAD 22nd Dec 2021

December 24, 2021 Posted by | Finland, safety | Leave a comment

Slovenia and Croatia: lack of transparency on radioactive waste , on intake of international nuclear waste.

The transformation of RW TCT from the exclusively national facility to an international radioactive waste treatment provider was done without prior consultation with, and approval by the public and municipalities.

More than 3000 citizens signed a petition against capacity increase of the RW TCT and demand a prohibition of foreign radioactive waste treatment in Slovakia.

Slovakia is not legally or morally responsible for foreign radioactive waste

Slovenia and Croatia – radioactive waste, transparency, shared responsibilities, shared problems, Three case studies on radioactive waste, By Nadja Zeleznik – Nuclear Transparency Watch   9 Dec 21, 

These are case studies in a larger report on radioactive waste and transparency, currently under preparation for the Euratom EURAD programme by Nuclear Transparency Watch.
Publication was expected in October 2021.

Slovenia and Croatia share the nuclear power plant Krško (NEK) which was constructed as a joint venture during 1970-ties in the socialist Federal Republic of Yugoslavia as part of the larger nuclear programme on the use of nuclear energy. 

Continue reading

December 24, 2021 Posted by | EUROPE, wastes | Leave a comment

Swedish environmental groups sound a warning on the government’s plans for a new radioactive waste dump.

On 22 December, the Government decided to approve the extension of the
repository for short-lived radioactive waste in Forsmark (SFR) with a new
repository (SFR 2).

SFR is the current repository for short-lived
radioactive operational waste from the nuclear power plants and is located
under the seabed outside the Forsmark nuclear power plant.

SFR 2 is a new repository for short-lived radioactive waste from the decommissioning of
the Swedish nuclear reactors, and the repository will be built next to the
old one. The government decided to grant permissibility according to the
Environmental Code and a license according to the Nuclear Activities Act.

The decisions can be found in the news story on the MKG Swedish web page
(link below on original)).

The Swedish Society for Nature Conservation, The Swedish
Friends of the Earth and the Swedish NGO Office for Nuclear Waste Review
(MKG) have stated that the government should say no to the new repository.
The organisations recently told the government in an opinion that it has
not been shown that the new repository will be safe enough.

The environment risks being damaged by the repository leaking radioactive particles into
the Öregrundsgrepen outside Forsmark faster than expected, perhaps already
within 50 to 100 years after closure. In addition, there is already a
relatively unexpected and extensive breakdown of the technical repository
barriers in the existing repository.

The organisations believe that the
government should have conditioned the decision on leaving the repository
open under supervision for the 400 to 500 years required for the
radioactive content to have decayed to less dangerous levels.

 MKG 22nd Dec 2021

 https://www.mkg.se/en/the-government-approves-the-expansion-of-sfr-in-forsmark

December 24, 2021 Posted by | environment, Sweden, wastes | Leave a comment

ROLLS ROYCE FALLS 3% ON QATARI INVESTMENT IN SMALL NUCLEAR BUSINESS

  https://www.asktraders.com/analysis/rolls-royce-falls-3-on-qatari-investment-in-small-nuclear-business/ 22 Dec 21,

  • Rolls Royce Holding PLC (LON: RR) has fallen 3% on news of the Qatari investment into the small nuclear reactor business
  • It may well not be the investment itself that is the catalyst for the price change but Omicron
  • The £85 million Qatar investment isn’t really a material number for Rolls Royce, even as it’s a vote of confidence in the programme.

Rolls Royce shares have continued their recent decline even as the news comes through of a Qatari investment in the small nuclear reactor programme. This could be seen as a surprise – investment in such a programme is likely to be a good deal for Rolls Royce after all. On the other hand, £85 million, the size of the investment, isn’t a large number compared to Rolls Royce – it’s not, as they say, a material number.

The likelihood is therefore that it is wider events driving the Rolls Royce share price, Omicron continues to rage around the world, air travel becomes increasingly restricted and so on. It’s worth pointing out that the RR incomes do not depend, particularly, on actually selling engines to people. There are fees involved in that, most certainly, but there’s an element of selling razors in how the business work. Once you’ve sold someone a razor then you’ve a capitve market for razor blades. Once you’ve got an engine in an aircraft then there’s a decades-long maintenance and repair income flow. That Rolls Royce income stream though depends upon hours in the air – exactly the thing being depressed by Omicron.   

Rolls Royce shares have continued their recent decline even as the news comes through of a Qatari investment in the small nuclear reactor programme. This could be seen as a surprise – investment in such a programme is likely to be a good deal for Rolls Royce after all. On the other hand, £85 million, the size of the investment, isn’t a large number compared to Rolls Royce – it’s not, as they say, a material number.

The likelihood is therefore that it is wider events driving the Rolls Royce share price, Omicron continues to rage around the world, air travel becomes increasingly restricted and so on. It’s worth pointing out that the RR incomes do not depend, particularly, on actually selling engines to people. There are fees involved in that, most certainly, but there’s an element of selling razors in how the business work. Once you’ve sold someone a razor then you’ve a capitve market for razor blades. Once you’ve got an engine in an aircraft then there’s a decades-long maintenance and repair income flow. That Rolls Royce income stream though depends upon hours in the air – exactly the thing being depressed by Omicron.  https://www.asktraders.com/analysis/rolls-royce-falls-3-on-qatari-investment-in-small-nuclear-business/

December 24, 2021 Posted by | business and costs, Small Modular Nuclear Reactors, UK | Leave a comment