Decommissioning

Companies and organisations mentioned in this week’s brief include: US Nuclear Regulatory Commission, Uranium Energy Corporation, Dounreay Industry Event, National Decommissioning Authority. Markets include: US, India, Chile and the UK

Democrats and Republicans unite on big nuclear plans                             

US President Barack Obama’s recent state of the union speech has helped to unite Democrats and Republicans agree on the future development of nuclear energy in the US. 

There is a call from Republican Minority Leader Mitch McConnell to push ahead the construction of 100 new nuclear power plants.

The Republican leader, who sharply opposes Obama's broad strategy for battling climate change, warmly welcomed the president's insistence that increasing the number of "clean energy jobs" meant investments in new nuclear plants.

"We should build a new generation of clean nuclear plants in this country," said McConnell, who underlined Republican support for "building 100 new plants as quickly as possible."

In a Raw Story report, it was reported that he also “cheered Obama's call for increased offshore exploration for oil and natural gas, as well as developing more so-called ‘clean coal’ technologies -- both controversial among environmental activists.”

"This is an area with a huge opportunity for American jobs that can't be sent overseas," the Kentucky Republican said.

But McConnell stuck to his opposition to creating a "cap-and-trade" system for curbing greenhouse gas emissions, stressing that "increased American energy without a new national energy tax will grow good jobs."

He pointed out that nuclear power plants generate almost 20% of America's electricity, highlighting the hard reality that for years, the industry has been on hold with the “ last of our 104 commercial reactors to come on line was in 1996.”

He believes that a “nuclear revival” is imminent, and not just because the president says so.

“The US Nuclear Regulatory Commission has received applications to build 26 new reactors, and it has a few more pending.

“Six new plants have actually been ordered. As these plants come on line, demand for uranium to run them will certainly grow.”

According to Amir Adnani, CEO of Uranium Energy Corporation, this offers a huge commercial opportunity.

In a Business Wire report it was reported that he said: "The US has the fourth largest deposits of uranium, yet it imports approximately 95% of the uranium we use. We import a much smaller percentage of oil, and we are concerned about being dependent on oil sheikdoms.

“We have the ability to reduce uranium imports from places like Russia and Kazakhstan by exploiting our own deposits to meet the increased demand we will experience as these new plants come on line," he said.

India Minister calls for enhanced nuclear usage

Union Minister of Commerce and Industry Anand Sharma has emphasized the need to enhance the usage of renewable and nuclear energy in the fuel mix, according to local reports.

Speaking at the World Economic Forum at Davos he said that India had developed a National Action Plan on climate change, which laid a special thrust on solar technologies.

He further stated that food security, climate change and energy security cannot be treated in isolation and are integrally linked, according to an ANI report.

He said in his speech that India's civil nuclear energy initiative is a major milestone for ensuring sustainable and clean development path for an emerging economy such as India.

Sharma also highlighted that the world needs to work in a collaborative manner in developing and disseminating technologies which not only assure that the concerns of climate change are addressed, but also respond to the aspiration of billions in the developing world.

He mentioned that the energy security had a completely different connotation for the poor and deprived in the developing world that still are denied access to grid based electricity.

Chile still says no to nuclear

Chile’s Energy Minister Marcelo Tokman Chile said the South American country is not ready for nuclear power because of legal and regulatory gaps as well as public resistance, according to a Reuters report.

Nuclear capability could take as long as 15 years if resistance to the power source continues he said.

"At the moment the country is not in a position to implement a nuclear program with the proper security standards," Tokman told a nuclear energy conference in the Chilean capital, Santiago.

"There is enough time to close the gaps required (to build a reactor) by 2024," he added.

If legal and regulatory hurdles are dealt with by 2016, construction of a reactor could feasibly begin by 2018 and join Chile's power grid six years after that, he estimated, said the report.

"This can't be the decision of just a government, but requires a much broader consensus," Tokman said.

The majority of Chile’s electricity is generated through hydroelectric power, the remaining by diesel and coal-fired plants.

But like all nations power diversity is no longer a luxury, but a necessity, especially in a market such as Chile where mining resources could eventually be depleted.

President-elect Sebastian Pinera, a conservative billionaire who won a January run-off and takes power in March, has said he would look at the possibility of nuclear energy, but aides have said it is not part of his energy plan and is "a long way off".

Bidders to attend NDA Dounreay event

Caithness with welcome a raft of first-time visitors  as nuclear industry representatives arrive for the launch of the two-part Dounreay Industry Event on February 5^th, according to the UK’s National Decommissioning Authority.

During the event prospective Parent Body Organisation (PBO) bidders will have the opportunity to meet with local stakeholders, and hear about the potential socio-economic impacts of the closure of the Dounreay site on the local area and opportunities for their mitigation.

Bidders will also receive an update on the NDA's emerging contracting and procurement strategies for the competition.

The NDA has also announced its planned forward funding assumptions for Dounreay.

Feedback from market engagement has reinforced the importance of having clarity and certainty on future funding for the site, said the NDA.

The NDA is planning to maintain funding for Dounreay at a capped level of up to £150m per annum for the duration of the contract to achieve the site Interim End State, currently planned to be achieved by 2025.

This has been termed Planned Assured Funding.

These funding arrangements will mean re-phasing some major projects, which will in turn provide the PBO bidders with the opportunity to bring their own ideas and innovations to these projects, the NDA said in a statement.

“It will provide the funding necessary to deliver all the essential components of the programme at Dounreay, and provides stability for the decommissioning skill base and capability which has been created at the site.”

Randall Bargelt, the NDA's Dounreay Site Director, said: "It is important to all of us to achieve the best possible outcome for Dounreay through the competition process.

And the fact that we can now present a stable, attractive, package to potential bidders is really good news, particularly in the current financial climate."

He continued: "The Dounreay site has been widely recognised for its excellent decommissioning progress – and the agreed funding will offer the opportunity to improve short term affordability at the site, whilst at the same time maintaining the momentum of the Dounreay decommissioning programme."

Information on supply chain and workforce capabilities, regeneration work already underway and prospects for partnership working will also be available at the Caithness event.

The NDA will host the second part of the Industry Event which will be held in Glasgow on the 9 March 2010.

This will provide the market with key information about the specific requirements of the competition.