UK nuclear decommissioning debacle costs government nearly £100m
Business secretary orders inquiry into flawed tendering process for dismantling old reactors at 12 sites as US firms get paid for out of court settlement, Guardian, Adam Vaughan, 27 Mar 17, The government has been forced to pay nearly £100m in a settlement with two US companies for mishandling the way it awarded a £6.1bn nuclear decommissioning contract.
Ministers have ordered an inquiry headed by the former boss of National Grid to find out why the procurement process was so flawed. Labour said the payout showed “dramatic levels of incompetence”.
The government body tasked with decommissioning old reactors will also terminate the contract it awarded for cleaning up a dozen of the UK’s old nuclear sites nine years early……..
The government now has the daunting task of starting a new tendering process for the 12 sites, as the deal with Cavendish Fluor Partnership will end early, in September 2019 instead of 2028…….
The contract is being terminated early because the NDA underestimated the scale of the decommissioning required to clean up the Magnox sites, which form part of the UK’s first generation of nuclear power stations.
The share price of Babcock International Group, which has a stake in the Cavendish Fluor Partnership, has fallen by more than 3% since the government announcement…….
The NDA has an annual budget of £3.1bn, two thirds of which is spent on Sellafield in Cumbria, which stores most of Britain’s nuclear waste. https://www.theguardian.com/business/2017/mar/27/uk-nuclear-decommissioning-debacle-costs-government-100m
Trump’s budget could help get rid of the nuclear waste along the San Onofre coastline http://www.latimes.com/business/la-fi-nuclear-waste-20170320-story.html Rob Nikolewski
A sense of momentum is building about finding a way to deal with the massive amounts of radioactive waste from nuclear power plants, including Southern California’s San Onofre Nuclear Generating Station.
Last week’s Trump administration “skinny budget” proposal, which calls for boosts in defense spending but cuts in domestic funding and federal agencies, found $120 million for starters to “initiate a robust interim storage program” while also looking at reviving the Yucca Mountain nuclear waste repository in Nevada.
Decommissioning San Onofre Nuclear Generating Station
A president’s budget proposals are ultimately subordinate to what Congress decides. But David Victor, chairman of the SONGS Community Engagement Panel, said the appropriation for nuclear waste may be one of the only topics in the current political environment that can generate support from members of both parties.
There are 3.6 million pounds of nuclear waste sitting along the coastline at the San Onofre plant, part of the 76,000 metric tons of spent fuel at sites nationwide.
“There’s a lot of Trump’s proposed budget that horrifies me, in particular around cutting funding for science and energy, but [long-term nuclear storage] is an area where I think the nation is now starting to make some progress,” Victor said.
“You have an active group of members, some of whom are Democratic members, who have a vested interest” in moving legislation forward, Issa said. “And … the fingerprints of whoever wanted to force it out would show all over.”
“As a budget line item it’s not a bad number at all,” Issa said in a telephone interview from Washington. “It’s sufficient to do the feasibility of these sites.”
Consolidated interim storage sites are designed to be built in isolated locations where multiple nuclear facilities could deposit their waste.
Two potential interim storage locations have been discussed — one in western Texas and another in eastern New Mexico.A company in Andrews, Texas, has filed an application to accept 5,000 metric tons of nuclear material. The district is represented by Republican Rep. Mike Conaway, who has co-sponsored Issa’s bill.
Getting the massive nuclear waste repository at Yucca Mountain, located about 100 miles from Las Vegas, back on track assuredly would involve a battle on Capitol Hill.
Democrats as well as Republicans from Nevada blasted the Trump proposal. “Washington needs to understand what Nevada has been saying for years: We will not be the nation’s nuclear waste dump,” said Sen. Dean Heller (R-Nev.).
The federal government spent about $15 billion to build the facility at Yucca Mountain to house nuclear waste from sites across the country. But then-Sen. Harry Reid (D-Nev.) led the fight to shut the repository down, and in 2010 President Obama suspended licensing for the site.
Yucca Mountain was scheduled to open in 2017.
While taking a tour of San Onofre last month with Issa, Rep. John Shimkus (R-Ill.), who is chairman of the House subcommittee that reviews nuclear sites, was asked if Yucca Mountain was coming back onto the bargaining table.
“It’s never been off the table,” Shimkus said.
Issa’s bill would be paid for by using part of the federal government’s Nuclear Waste Fund, which is worth upward of $40 billion and was funded by ratepayers in areas powered by nuclear plants.
A 2014 court order stopped the federal government from taking fees from electricity customers because, with Yucca Mountain sidelined, the government had no place to send nuclear waste.
“We’re paying a lot of money for the privilege of not having a solution that we were obligated to have,” Issa said. “It’s not free. It’s going to cost every taxpayer money until there’s a working solution.”
But even if Congress adopts a plan roughly similar to the White House proposal, there are a series of practical and regulatory hurdles to clear.
For example, sites such as San Onofre, which closed in 2013, would still need to place some of their spent fuel into canisters. Then federal law would need to be changed to install a reliable funding mechanism for interim sites, and a strategy would need to be adopted in order to move the waste from one place to another.
“There is still a long way to go,” Victor said. “We could have troubles on any of those fronts, but I think what’s encouraging is that on every single one of those fronts, we’re starting to see progress.”
Millions of people live within 50 miles of San Onofre, which hasn’t produced electricity since January 2012 after a steam generator leaked a small amount of radiation.
Southern California Edison is the majority owner of the plant, which is in the process of being decommissioned.
Edison officials said they were heartened by the news of $120-million proposal.
“We are pleased to see funding proposed to restart the Yucca licensing process, and continue to also support interim storage proposals that would enable [Southern California Edison] to move San Onofre’s used fuel to an off-site location,” spokeswoman Maureen Brown said
Lobbyists debate responses to the nuclear power crisis, Online opinion, .By Jim Green – , 27 March 2017The Era of Nuclear Decommissioning (END) “……….The ageing of the global reactor fleet isn’t yet a crisis for the industry, but it is heading that way. The assessment by the ‘Environmental Progress’ lobby group that 151 GW of worldwide nuclear power capacity could be shut down by 2030 is consistent with figures from the World Nuclear Association (132 reactor shut-downs by 2035), the International Energy Agency (almost 200 shut-downs between 2014 and 2040) and Nuclear Energy Insider (up to 200 shut-downs in the next two decades)
It looks increasingly unlikely that new reactors will match shut-downs. Another 20 years of stagnation is possible, but only if China continues to do the heavy lifting. And if China’s nuclear program slows, worldwide nuclear decline is certain.
Perhaps the best characterisation of the global nuclear industry is that a new era is approaching – the Era of Nuclear Decommissioning (END). Nuclear power’s END will entail:
- a slow decline in the number of operating reactors (unless growth in China can match the decline elsewhere);
- an increasingly unreliable and accident-pronereactor fleet as ageing sets in;
- countless battles over lifespan extensions for ageing reactors;
- many battles over the nature and timing of decommissioning operations;
- many battles over taxpayer bailouts for companies and utilities that haven’t set aside adequate funding for decommissioning;
- more battles over proposals to impose nuclear waste repositories on unwilling or divided communities; and
- battles over taxpayer bailouts for companies and utilities that haven’t set aside adequate funding for nuclear waste disposal.
Nuclear power is likely to enjoy a small, short-lived upswing in the next couple of years as reactors ordered in the few years before the Fukushima disaster come online. Beyond that, the Era of Nuclear Decommissioning sets in, characterised by escalating battles â€’ and escalating sticker-shock â€’ over lifespan extensions, decommissioning and nuclear waste management.
In those circumstances, it will become even more difficult than it currently is for the industry to pursue new reactor projects. A positive feedback loop could take hold and then the industry will be well and truly in crisis………http://onlineopinion.com.au/view.asp?article=18929&page=0
TEPCO to decommission 1 reactor at Fukushima No. 2 plant, mulling fate of 3 others http://mainichi.jp/english/articles/20170317/p2a/00m/0na/024000c
March 17, 2017 (Mainichi Japan) Tokyo Electric Power Company Holdings Inc. (TEPCO) has informally decided to decommission the No. 1 reactor at its Fukushima No. 2 Nuclear Power Plant, it has been learned.
TEPCO had avoided stating a clear position on the No. 2 plant’s reactors, but there had been pressure from the government and ruling coalition for it to make a decision. The company accordingly decided to decommission the plant’s No. 1 reactor, which suffered the most damage, and will consider what to do with the other three reactors in the future.
The No. 1 reactor of the Fukushima No. 2 plant began operating in 1982. It was flooded by tsunami on March 11, 2011, and all four reactors at the plant remain idled. The No. 2 plant suffered less damage than the No. 1 plant, and if it passed screening by the Nuclear Regulation Authority, its reactors could be restarted. But the Fukushima Prefectural Government and all 59 local assemblies have asked TEPCO and the government to decommission all reactors in the prefecture.
TEPCO has remained busy handling compensation claims relating to the Fukushima nuclear disaster and the disaster cleanup. If it were to decommission all of the No. 2 plant’s reactors, they would lose value and it would have to write down huge losses. Company president Naomi Hirose has therefore avoided taking a clear position on the issue, saying, “I would like to consider it and make a decision as a business operator.”
Last year, however, officials decided to create a fund to cover the huge cost of handling the nuclear disaster, which is expected to reach 21.5 trillion yen, nearly double the original prediction. There was accordingly pressure from the government for TEPCO to reach an early decision on the fate of the No. 2 plant’s reactors.
The No. 1 reactor at the No. 2 plant is the oldest of the plant’s four reactors. It temporarily lost its cooling functions in the March 2011 disaster, and suffered the most damage among the four reactors. TEPCO believes that by limiting decommissioning to one reactor for the time being, it will be able to hold the decommissioning cost below 100 billion yen, minimizing the impact on company finances and on decommissioning work at the Fukushima No. 1 plant. However, a decision to decommission only one reactor at the No. 2 plant is unlikely to win public approval.
Nuclear Power Is In Crisis As Cost Overruns Cripple Industry Giants, New Matilda., By Jim Green on February 26, 2017 “………‘Rapidly accelerating crisis’
Shellenberger has recently written cataclysmic assessments of nuclear power’s “rapidly accelerating crisis” and a “crisis that threatens the death of nuclear energy in the West“.
Likewise, Dan Yurman says that a “sense of panic is emerging globally” as Toshiba exits the reactor construction industry. He adds: “After nine years of writing about the global nuclear industry, these developments make for an unusually grim outlook. It’s a very big rock hitting the pond. Toshiba’s self-inflicted wounds will result in long lasting challenges to the future of the global nuclear energy industry. Worse, it comes on top of the French government having to restructure and recapitalize Areva, its state-owned nuclear power corporation, so that it can complete two 1650 MW EPR reactors that are under construction in Europe and to begin work on the Hinkley project the UK.”
Ironically, Westinghouse, the villain in Toshiba’s demise, may have made the best strategic decision of all the nuclear utilities. In 2014, Westinghouse announced plans to expand and hopefully triple its nuclear decommissioning business. Decommissioning is undoubtedly a growth area.
The average age of the global reactor fleet now stands at 30 years. The World Nuclear Association anticipates 132 reactor shut-downs by 2035. The International Energy Agency anticipates a “wave of retirements of ageing nuclear reactors” and an “unprecedented rate of decommissioning” ‒ almost 200 shut-downs between 2014 and 2040. Up to 200 reactors are set to go offline in the next two decades according to a recent Nuclear Energy Insider article……… https://newmatilda.com/2017/02/26/nuclear-power-is-in-crisis-as-cost-overruns-cripple-industry-giants/
Japan’s Nuclear Regulation Authority approves closure of Monju nuclear reprocessing reactor by next April
Nuclear watchdog approves scrapping Monju reactor https://www3.nhk.or.jp/nhkworld/en/news/20161228_19/ Japan’s Nuclear Regulation Authority has approved the government’s decision to scrap the Monju prototype fast-breeder nuclear reactor. The education, science and technology ministry briefed the NRA on Wednesday about the government’s decision last week about the troubled reactor in Fukui Prefecture on the Sea of Japan coast.
NRA Chairman Shunichi Tanaka said the decision is in line with the recommendation it made in November last year.
In it, the NRA urged an overhaul of a research and development project involving the reactor. It said scrapping the reactor would be an option unless a new operator were found for it.
The ministry also told the NRA on Wednesday that it will draw up a basic plan for decommissioning the reactor by next April.
It added that to eliminate possible safety risks soon, it will instruct reactor operator Japan Atomic Energy Agency to remove nuclear fuel from the reactor in about 5 and half years.
Decommissioning Palisades nuclear plant a lengthy process, NRC says http://www.mlive.com/news/kalamazoo/index.ssf/2016/12/decommissioning_palisades_nucl.html COVERT, MI — When nuclear plants open, they are required to provide for their eventual closing.
Entergy Corp., owner of the Palisades nuclear plant in Covert Township near South Haven, had set aside $384.16 million in 2014, according to the most recent report submitted to the Nuclear Regulatory Commission in 2015. (The next report, due in 2017, will show the numbers for 2016.).
Entergy Corp announced Thursday that it plans to close the Palisade plant in October 2018.
Viktoria Mitlyng, spokesperson for the NRC Midwestern Region near Chicago, said Entergy has 30 days from Thursday’s announcement to formally notify the NRC of its intentions.
Closing nuclear plants is a complicated process with “lots of moving parts,” she said. “Our role as a nuclear safety regulator, is to oversee that process, including the removal of all fuel from the reactor to a “spent fuel pool” withing the facility, to its eventual placement, for an indefinite period, in dry cask storage.”
Throughout the process, Mitlyng said, the NRC requires that security is maintained and that detailed safety protocols are The very last phase of decommissioning requires that radiation levels in the area meet NRC requirements for decommissioning.
There is not yet a site, nationally, for long-term storage of spent fuel, an ongoing policy issue in which the NRC is not involved, Mitlyng said.
Until such a facility is planned – “and there is nothing on the drawing board at this point as far as we know,” she said — spent fuel remains in dry cask storage on site.
The storage is monitored by the NRC.
During final decommissioning, plant is taken apart — all radioactive systems are removed — and the plant has 60 years to get to final phase where the decommissioning is complete and meets NRC requirements.
After the plant is totally decommissioned, only the dry cask storage remains.
Some companies perform decommissioning activities themselves, others hire another company to take down the plant. If that is done, though, the license must be transferred, with NRC approval, Mitlyng said. The NRC also monitors the status of the decommissioning fund, which cannot be used for any other operations, she said.
“I want to emphasize that our responsibility as the Nuclear Regulatory Commission is to ensure that a plant is safe, whether in operation or during decommissioning,” she said. “We have inspections for all stages of that process to assure that it is done in a way to protect people.”
Safety requirements do not change, whether a plant is operational or closing, Mitlyng said. “There is no change in the NRCs posture, none at all.”
Critics Question Plans For Nuclear Waste Storage At San Onofre Nuclear expert says it’s a “witches brew of radioactivity” 7 San Deiego By JW August , 30 Sept 16 The threat of a nuclear meltdown is no longer a concern at the San Onofre Nuclear Generating Station because it’s shut down.
A shuttered nuclear plant does present another potential threat to public safety, according to an editorial in the April 2016 edition of Scientific American Magazine. The article warns of a greater danger, and says “more threatening than a meltdown, it’s the steady accumulation of radioactive waste.”
The San Onofre Nuclear Generating Station was permanently retired by its owners, Southern California Edison, SCE, and SDG&E in 2013. The plant’s operations left 3.6 million pounds of radioactive waste behind.
If all goes as planned that radioactive waste is headed to bluffs just north of the dead reactors above San Onofre State Beach. It will sit near Interstate 5 in Southern California between two major metropolitan areas, San Diego and Los Angeles, where 17 million people call home.
Fifty canisters of radioactive leftovers, from fuel burned before the plant closed, are already in storage on the plant’s property. It accounts for about 30 percent of the radioactive waste on site. In the spring of 2017, the remaining radioactive waste will begin to be moved out of the pools of cooling water where it is currently stored and into 100 stainless steel dry casks which will also be encased in a cement pad.
Daniel Hirsch, the Director of the Program on Environmental and Nuclear Policy at UC Santa Cruz, said it is imperative the fuel rods be moved out of the pools and into dry casks as soon as possible.
“It is the most dangerous stuff on earth; a witches brew of radioactive material,” he said.
A fuel rod is a long zirconium metal tube containing pellets of fissionable material, which provide fuel for nuclear reactors.
“Those pools are so densely packed, that if you lose the coolant you could have a fire in them,” Hirsch said.
According to a report from Robert Alvarez, a former policy advisor to the U.S. Department of Energy, a pool fire would release more radioactivity than a reactor meltdown. Hirsch, a long-time critic of the industry told NBC 7 Investigates the clock is ticking, something the plant’s owners agree with.
The location of the waste storage is something the plant’s owners and nuclear waste critics do not agree with.
“They’re going to be stored on the beach in the worst possible location you can imagine,” Charles Langley, who opposes the storage plans at San Onofre, said. Langley tracks all things related to San Onofre and the nuclear waste storage plans for Public Watchdogs, a San Diego based non-profit website.
The proposed storage site is northwest of the plant’s units one and two; the two reactor domes that can be seen from the freeway.
Currently, the San Onofre Nuclear Generating Station is the largest privately-owned coastal nuclear storage site in the country. When compared to government owned sites, it’s the second largest in the country, behind the Hanford Site in Washington where the first plutonium reactor was built and the bomb dropped on Nagasaki, Japan was created.
Langley said the location selected is all about money. “It’s the cheapest alternative,” he said. “It’s what’s best for the stockholders. It’s not what’s best for the people of Orange and San Diego County.”
SCE does not agree. Neither does the Nuclear Regulatory Commission, NRC, and the California Coastal Commission, which both approved the Pacific coastline location.
It’s not a case of no risk, the utilities argue, but low risk.
In January, due to El Nino weather conditions, there was considerable erosion of the beaches and bluffs around the San Onofre plant, the same area where the canisters will be stored.
Nina Babiarz, a transportation consultant and former journalist, said the location for the nuclear waste storage is a poor one. “It’s on an earthquake fault in a tsunami zone,” she said. NBC 7 Investigates reviewed weather reports and found rising sea levels at and around the nuclear waste storage location could continue.
A Pacific Institute report on sea level rise, with contributions by the Scripps Institution of Oceanography, found “flooding and erosion” risks will increase. According to the report, “in areas where the coast erodes easily, sea level rise will likely accelerate shoreline recession” and “may expose previously protected areas to flooding.” The United States Geological Service found the same dynamics: extreme bluff, cliff and beach erosion, accelerating over time.
The City of Del Mar, located 33 miles from San Onofre and with a similar coastline, did its own risk assessment of projected impact from sea level rise, storm surges and coastal flooding. In its assessment it describes the potential for extensive flooding and cliff collapses. …………http://www.nbcsandiego.com/news/local/Critics-Question-Plans-For-Nuclear-Waste-Storage-At-San-Onofre-395305981.html
Hinkley Point C developers face £7.2bn cleanup bill at end of nuclear plant’s life
French and Chinese developers will be the first nuclear operators in the UK that will have to pay to decommission the site, Guardian, Adam Vaughan, 30 Sept 16 , The French and Chinese companies that are to build the £18bn Hinkley Point C nuclear power station will have to pay up to £7.2bn to dismantle and clean it up.
Documents published yesterday reveal for the first time how much the developers, EDF and China General Nuclear Power Group (CGN), will have to pay to decommission the plant, beginning in 2083.
The new reactors in Somerset will be unique in British nuclear history, as they are the first for which the operator will have to pay to make good the site afterwards.
“Waste transfer contracts signed today mean that, for the first time in the UK, the full costs of decommissioning and waste management associated with the new power station are set aside during generation and are included in the price of the electricity,” EDF said in a statement.
Decommissioning costs ate up around half the budget for the now-disbanded department of energy and climate change, after the liabilities for cleaning up old nuclear plants were effectively nationalised in 2004 and 2005 when two companies faced financial problems.
The Hinkley Point C decommissioning costs are estimated at £5.9bn to £7.2bn, with the dismantling of the plant expected to begin in 2083. The government, EDF and CGN anticipate the winding up of the new reactors will continue well into the 22nd century. The plant is expected to be fully decommissioned “from 2138” when the final spent fuel is disposed of.
Experts said the cost estimate was likely to be on the low side. “The reality in terms of decommissioning is that it always costs more than people say,” said Dr Paul Dorfman, of the Energy Institute at University College London.
He claimed that the precedent of the government taking ownership of the liabilities of British Nuclear Fuels Limited and British Energy more than a decade ago showed that the government would be forced to shoulder the costs if Hinkley’s developers had a shortfall.
The body charged with dismantling 17 of Britain’s old nuclear power plants puts the cost of cleanup at £117bn over 100 years in its latest annual report, more than twice the cost estimated a decade ago. A large proportion of the cost is due to the complexity of Sellafield……..https://www.theguardian.com/environment/2016/sep/30/hinkley-point-c-developers-face-72bn-cleanup-bill-at-end-of-nuclear-plants-life?CMP=twt_a-environment_b-gdneco&utm_content=buffer99004&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
JAPAN SIGNALS END FOR $10BN NUCLEAR PROTOTYPE, Eyewitness News, 30 Sept 16 Tokyo believes it would be difficult to gain public support to spend several hundreds of billion yen. Reuters |
TOKYO – Japan signalled on Wednesday it would scrap a costly prototype nuclear reactor that has operated for less than a year in more than two decades at a cost of 1 trillion yen (£7.6 billion).
Tokyo believes it would be difficult to gain public support to spend several hundreds of billion yen to upgrade the Monju facility, which has been plagued by accidents, missteps and falsification of documents.
There is also a strong anti-nuclear sentiment in Japan in reaction to the 2011 Fukushima atomic disaster and calls to decommission Monju have been growing in the ruling Liberal Democratic Party, with scant results from using around 20 billion yen of public money a year for maintenance alone.
Monju was designed to burn plutonium from spent fuel at conventional reactors to create more fuel than it consumes…….A formal decision to decommission Monju is likely to be made by the end of the year, government officials said. http://ewn.co.za/2016/09/30/Japan-signals-end-for-10-billion-nuclear-prototype
Nuclear liabilities of the largest eight nuclear plant operators in Europe totaled €100bn at the end of last year, representing around 22 per cent of their aggregate debt, according to credit rating agency Standard & Poor’s.
Operators are legally responsible for decommissioning nuclear power plants, a process which can take several decades to implement, meaning the associated costs are high. Europe’s main nuclear operators include France’s EDF, Germany’s E.ON and RWE. They are legally responsible for decommissioning nuclear power plants, a process which can take several decades to implement, meaning the associated costs are high.
While the analysis by S&P treats nuclear liabilities as debt-like obligations, it recognises that several features differentiate them from traditional debt. But given the size of the liabilities against a company’s debt, they can impact a company’s credit metrics, and their credit rating.
The report noted that a company’s nuclear provisions are difficult to quantify, as well as cross compare, because accounting methods vary between different countries.
It also foresees many operational challenges ahead, including a reality check on costs and execution capabilities.
EU auditor sees nuclear decommissioning funds shortfall, Reuters, By Alissa de Carbonnel, 20 Sept 16, | BRUSSELS European Union plans for financing the decommissioning of nuclear plants in Bulgaria, Lithuania and Slovakia are inadequate and more resources need to be put aside, the European Court of Auditors said in a report.
The report criticizing costly delays and warning of technical hurdles ahead shines a spotlight on the challenges facing Germany and other nations within the bloc that are planning to retire their nuclear reactors.
The EU’s spending watchdog said the estimated cost of decommissioning the three Soviet-era plants closed more than a decade ago had risen 40 percent since 2010 to at least 5.7 billion euros ($6.4 billion) by 2015. That figure doubles if the cost of disposing spent fuel once and for all is included.
The EU auditors said while the bloc’s budget covered the vast majority of the costs of shutting down the reactors in the three member states, significant funding was still needed to take the plants offline completely.
They said the reactor buildings at Bulgaria’s Kozloduy, Lithuania’s Ignalina and Slovakia’s Bohunice had yet to be dismantled and no solution had been found for the disposal of spent nuclear fuel……..
The only repository for spent fuel being dug deep underground in Europe has been under construction in Finland for nearly 40 years and won’t be ready until after 2020…….
A working paper by the European Commission, seen by Reuters in February, showed the bloc was short of more than 118 billion euros needed to dismantle its nuclear plants. ($1 = 0.8945 euros)(Editing by David Clarke) http://www.reuters.com/article/us-eu-nuclearpower-idUSKCN11Q12A
Future nuclear supply chain worth billions, report finds, WNN 14 September 2016 “……..The market for decommissioning is also substantial, with decommissioning work on projects involving immediate dismantling by 2035 potentially worth up to $111 billion. This includes at least $12.4 billion as the estimated cost for cleaning up the Fukushima Daiichi site, and at least $24.2 billion for decommissioning as Germany moves to phase out its nuclear power plants.
Eleven consolidated technology vendors from Canada, China, France, India, Japan, Russia and the USA today offer their services across much of the nuclear fuel cycle, and other significant technology vendors – such as BWX Technologies, Doosan and OMZ-Skoda – are internationally active. Each has built up a supply chain that is increasingly global in scope, and the leading vendors are, for the most part, internationally diversified in terms of their corporate make-up and supplier base…..http://www.world-nuclear-news.org/NN-Future-nuclear-supply-chain-worth-billions-report-finds-1509167.html
US operators urged to decommission immediately to prevent cost hikes, Nuclear Energy Insider, Sep 7, 2016 Nuclear plant operators should start decommissioning activities of shutdown reactors as early as possible as the deferral of decontamination and dismantling (D&D) exposes operators to delay-related costs, investment risks and loss of crucial expertise as workers leave the industry, Geoffrey Rothwell, Principal Economist at the OECD’s Nuclear Energy Agency, told Nuclear Energy Insider.
There are currently 17 U.S. nuclear power plants being decommissioned and this will soon increase following a recent spate of plant closure announcements due to sustained low power prices.
Operators have announced the early closures of California’s Diabolo Canyon, Nebraska’s Fort Calhoun and Illinois’ Clinton and Quad Cities plants in recent months as low gas prices, rising renewable energy capacity and energy efficiency measures pressure electricity prices.
The majority of current U.S. decommissioning projects are being carried out under the deferred “SAFSTOR” method of deferred decontamination, but this process incurs the risk of cost hikes, Rothwell said.
U.S. operators build up nuclear decommissioning trust funds (DTFs) based on estimated costs but data from completed projects shows the actual cost of decommissioning has varied substantially, as operators have faced fresh site-specific challenges and regulation which can differ between states.
The variance in costs of three completed ‘immediate’ D&D projects was highlighted earlier this year in a report by the Nuclear Energy Agency (NEA), co-authored by Rothwell, which cited figures from a Pacific Northwest National Laboratories [PNNL] study.
The chart below shows actual costs for the Haddam Neck, Main Yankee and Trojan plants, laid out alongside estimated costs for 14 other reactors, showed large differences in spending on Project Management, Decontamination and Dismantling (D&D) and Waste Management.
Project management costs tend to be a function of the duration of D&D activities, rather than plant size and this is highlighted by the data from completed projects, Rothwell noted.
Portland General Electric (PGE), licensee of the 1.2 GW Trojan plant, decided to perform the decommissioning of the plant itself and conducted the project efficiently and without major changes or setbacks.
In comparison, the licensees for the 582 MW Haddam Neck plant in Connecticut and the 900 MW Maine Yankee plant chose to contract the D&D work to a decommissioning operations contractor (DOC) and then later in the process they chose to resume execution of decommissioning activities themselves.
In both cases, the management changes led to complications and delays and escalated costs, NEA said in its report.
A major advantage of carrying out D&D activities immediately is that current operations staff have in-depth knowledge of plant specifics, including previous incidents and undocumented facility detail, which avoids unnecessary work-arounds, Rothwell said.
“The maintenance crew have all sorts of implicit, tacit knowledge…If you wait for 60 years they are all gone,” he said.
Actual D&D costs have varied substantially as a lack of identical reference projects has meant operators have had to perform “first of a kind” operations such as the time-consuming task of dismantling main reactor components, Rothwell said.
“It’s cutting up the reactor and the steam generator, these are big pieces of equipment and we are just learning how to do this,” Rothwell said.
PG&E was able to limit the D&D costs for its Trojan plant through its access to the U.S. Ecology low-level waste facility at Hanford, Washington. PG&E was permitted to ship reactor internals to the Hanford facility as one package and avoid some of the on-site cutting-up of components.
At Haddam Neck, the segmentation of the internals proved challenging and took approximately 29 months, according to NEA’s report. Regulations also required the operator to store the internals on-site at the ISFSI.
The duration of D&D activities at Haddam Neck exceeded original estimates, as did the total radiation exposure accrued during the operations, NEA said.
“Decontamination of exposed faces of buildings and foundations were also extensive tasks,” it said.
The results of an environmental survey at the Trojan plant site indicated no radioactivity had spread to the environment, including surface water and groundwater, which also limited costs.
By deferring D&D activities for a substantial time, operators raise the chance of chemical or radiation leaks spreading, which can require further D&D work and incur higher costs, Rothwell said.
According to the NEA’s report, waste management costs do not necessarily depend on the capacity of the plant.
“Waste costs appear to be more sensitive to the management strategies and solutions selected or assumed, for the specific plant, and the related unit costs individually applied. The accessibility of waste management routes can even determine the way the decommissioning of the reactor is undertaken,” NEA said.
PG&E’s ability to ship the reactor vessel for the Trojan plant as a single package reduced the volume of waste and the number of radioactive shipments, and also reduced personnel exposure. However, NEA noted that without regulatory changes, the single package approach will not be available to other commercial nuclear plant decommissioning projects in the US.
In contrast, waste management costs for Haddam Neck were driven up by high volumes of waste produced, “mostly attributable to the release criteria and clean-up levels adopted by the State of Connecticut,” the report said.
Regulatory risk is another reason to commence D&D immediately as regulation is more likely to increase if there is a long time period before SAFSTOR facilities are decommissioned, Rothwell said.
Operators choosing to defer D&D also face investment risks for DTFs, in addition to escalating cost estimates, Rothwell noted.
Rates of return for DTFs have been lower than expectations, and operators which have accelerated closure plans should leverage current staff expertise and optimize decommissioning schedules to allocate decommission fund portfolios so the “liquidity matches your plans,” he said…….http://analysis.nuclearenergyinsider.com/us-operators-urged-decommission-immediately-prevent-cost-hikes?utm_campaign=NEI+07SEP16+Newsletter+B&utm_medium=email&utm_source=Eloqua&elqTrackId=ce386029dbb04d9db19579ed2046a746&elq=f4dbaf77167c423b93658800346bc887&elqaid=22066&elqat=1&elqCampaignId=9714
‘Dead Plant Society’ lobby group booms as reactors close Hannah Northey, E&E reporter Greenwire: September 6, 2016 “……..Reactors are closing as nuclear utilities struggle to compete with cheap natural gas, low demand for power and no national energy policy. And when the behemoth nuclear plants close, the Dead Plant Society grows.
As the teacher played by Robin Williams in the movie famously tells his young students, “We are food for worms, lads. Because, believe it or not, each and every one of us in this room is one day going to stop breathing, turn cold and die.”
The group of doomed-reactor owners has doubled from its original five members to 10 and now includes Exelon Corp., the nation’s largest nuclear utility.
Operators who climb aboard are eager to weigh in on a high-profile rulemaking at the Nuclear Regulatory Commission for decommissioning reactors and to find solutions — on or off Capitol Hill — for growing amounts of radioactive waste piling up across the country, said Smith, the president of Governmental Strategies Inc.
Exelon came to the society five years ago. The nuclear giant is deactivating reactors — or is planning to do so — at three sites in Illinois and one in New Jersey, Smith said. Entergy Corp. signed after it bought the shuttered Big Rock Point nuclear power plant near Charlevoix, Mich. And Pacific Gas & Electric Co. was next when it decided to close the Diablo Canyon nuclear reactors in California.
Following years would see Southern California Edison join with the closure of the San Onofre reactors in California and Duke Energy Corp. as it shuttered the Crystal River nuclear plant in Florida.
All told, the tight-knit club represents more than a dozen reactors that have been closed or are about to be snuffed out in eight states. And nuclear executives have warned that an additional 15 to 20 reactors could close in coming years.
Many of the companies are either suing the federal government or involved in legal settlements after the Department of Energy failed to uphold its 1980s agreements and take possession of spent reactor fuel destined for the stalled repository at Yucca Mountain, Nev. So far, DOE has paid out more than $5 billion, and the lawsuits are still mounting.
And like the industry implementing cost-cutting measures to keep reactors afloat, Smith said the Dead Plant Society is on a tight budget, spending under $160,000 a year on lobbying since its inception, according to the Center for Responsive Politics. Working with Smith is Michael Callahan, president of CCMSC Corp. and a former NRC congressional affairs officer….
‘Real security and safety issues’
Smith isn’t thrilled about the group’s growth.
The former Hill staffer and Nuclear Energy Institute executive said he’d rather be promoting a growing industry, not burying cooling waste.
“I hope not to grow it; I don’t like being in the nuclear trash burial business,” said Smith, who worked for former Louisiana Sen. John Breaux (D), a former Entergy lobbyist. “I had a lot more fun when I was lobbying to get new plants up and running.”
Then again, most members of the Dead Plant Society would rather not belong to the group, either.
Owners of the three Yankee reactors in New England, for example, recently sued the federal government after DOE failed to pick up spent reactor fuel stored in concrete casks at the site of former reactors in Connecticut, Maine and Massachusetts.
Connecticut Yankee Atomic Power Co., Maine Yankee Atomic Power Co. and Yankee Atomic Electric Co. said they existed as corporations only because DOE had failed to pick up the waste, forcing the companies to build, staff and oversee on-site storage. The court awarded the companies $76.8 million in damages.
Tim Smith, a lobbyist and president of Governmental Strategies Inc., has represented the Decommissioning Plant Coalition since 2001, better known in industry as the “Dead Plant Society.” Photo courtesy of Governmental Strategies Inc.
The dispute, like many others, stems from the Nuclear Waste Policy Act, which required DOE to remove spent nuclear fuel and high-level radioactive waste from reactors. The agency signed contracts with the companies to remove the waste by January 1998 and store it in a permanent repository, but the department failed to do so. The Obama administration later pulled support for building a waste repository under Yucca Mountain, forcing utilities across the nation to store spent nuclear fuel in wet pools or dry storage casks on-site……
DOE will see its legal problems grow should more reactors go dark.
The department could face between $29 billion and $50 billion in legal fees if it begins accepting waste by 2025, according to a recent study by the Kleinman Center for Energy Policy at the University of Pennsylvania. If the decadeslong debacle slips past that date, costs could continue to grow by $500 million a year, said Christina Simeone, the report’s author. There are currently 19 lawsuits pending in federal court, according to a DOE report.
But the real losers are the ratepayers and taxpayers who have paid for a repository and may not realize that radioactive waste may live in their communities for ages, long after a reactor is snuffed out, she said.
What’s more, federal funds to move the process forward are off-limits unless the law is changed, she added. The $34 billion Nuclear Waste Fund — a cache nuclear customers have fed over years — is untouchable under statute for repository-related activities, and DOE legal fees are taken out of a federal fund made up of taxpayers’ contributions, she said.
“I don’t think these communities realize that when these plants close, the waste is going to stay there,” Simeone said. “The plant may be remediated, but there’s a portion of the land that’s going to remain under license at the NRC and is going to store waste indefinitely. There are real security and safety issues.”……..
The commission’s work — slated to be complete by 2020 — has spurred passionate debate between the industry and host communities, public advocates and environmental groups over funding for multibillion-dollar cleanups. Central to those discussions is what happens to pools and casks full of radioactive waste, the sizes of security forces and evacuation zones, and what role the host communities play.
As it stands, there are no such federal rules for dead nuclear plants.
Instead, companies must seek “exemptions” from regulations for operating plants as they power down the units.
Smith said the Dead Plant Society is supporting the NRC’s work to streamline the process and make it transparent, adding that operators set aside money to ensure they can remove or reduce radiation from the former plant sites so the land can be released or repurposed — a process that can cost as much as $400 million……..
The Vermont Yankee decommissioning panel has said host communities — people living near the nuclear plant within the 10-mile evacuation zone — need a voice on par with industry. The group has called on the NRC to take a closer look at the effect on communities hit by the multimillion-dollar loss in tax revenues after reactors close.
In their comments to the NRC, neighbors of nuclear reactors are asking the agency to ensure that decommissioning funds aren’t used for lobbying or operating expenses, and not to reduce evacuation zones. ……http://www.eenews.net/stories/1060042350
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