Weekly Intelligence Brief 15 - 22 February

Companies and organisations included in this week’s news round-up include: IBM, Energy Solutions, American Association for the Advancement of Science, Swedish Nuclear Fuel and Waste Management Co, US Department of Energy, NDA

Nuclear popularity on rise among public, says IBM survey

Consumer acceptance of nuclear power as a viable alternative energy source is on the increase, according to a recent survey by IBM into consumer attitudes to nuclear power.

Two thirds of consumers polled in the independent survey supported a greater nuclear capability if it meant that the risk of losing energy supplies was greatly reduced. However, the same consumers polled are currently unwilling to absorb the extra cost incurred by the development of the plants – only one in five respondents expressed a willingness to pay more, even in order to reduce carbon emissions. 

The survey findings suggest that attitudes to nuclear have changed over the years as around half of the consumers polled believe that nuclear power is a safe form of energy and 65% see it as inevitable that the UK will rely more on nuclear power in the future, said the report.

Further results demonstrate the importance of the environment to the man-on-the-street. The consumers surveyed were keen to take action on curbing carbon emissions – 33% felt it is essential, while over 70% replied positively to this point. Over a third of Britons polled feel it’s very important to make significant reductions in carbon (38%) with over 77% replying positively.

Only one third of the public surveyed feel any drawbacks they see outweigh the UK employment opportunities created by a build programme.

Onus on nuclear to take on construction risk

The UK Government’s draft National Policy Statement for Energy confirmed that the UK needs to invest in new generating capacity to ensure adequate electricity supplies and reduced carbon emissions with nuclear power making a significant contribution.

However, the expectation is on the nuclear industry to take the lead in bringing proposals to market and shoulder the majority of the risk for each project, including funding the design, construction, operation and eventual decommissioning of each nuclear power station.

Nuclear message to public still weak

Further results from the IBM survey have proved surprising. While there is general acceptance of nuclear power as an alternative power source, nearly 75% of consumers polled believed that the case for new nuclear power hasn’t been delivered with any great clarity despite publication of the National Policy Statement for Energy.

Those in the youngest group, aged 18-24 years old, are least convinced that there is a requirement for new nuclear power stations given other renewable sources of energy such as wind, wave and solar. At present, nearly twice as many people surveyed rate public consultation ahead of ensuring the plants are built on time - 47% compared to 24% .

This supports views expressed at the recent IBM Nuclear Industry Forum held in December 2009. Leaders and influencers from across the industry discussed the need to communicate and share information, securely, safely and in timely fashion with the public, the regulators, and the supply chain, using a variety of tools and channels.

“The IBM survey demonstrates that the UK public is open to the idea of nuclear power as an alternative power source,” said Steve Hornsby, Nuclear Power Lead, IBM Global Business Services UK & Ireland.

“However, there is still a lack of communication as to the needs for and the implications of a new-build programme. Consumer perceptions are not yet aligned with the industry’s plans.”

“At the same time, we are talking to companies around the world about the nuclear renaissance - nearly 400 nuclear power stations being built, planned or proposed, with over 30 countries progressing or exploring the use of nuclear power. As a result, the UK faces competition with other countries for resources– people, equipment and expertise.” 

He continued: “The application of advanced technology and business processes can enable the industry to become smarter. In an era where the UK industry will be fighting for resources, this capability is key if the UK is to be at the centre of a global smarter energy revolution.”

Energy Solutions CEO resigns

Salt Lake City Utah’s Energy Solutions has made an unexpected announcement that its chief executive officer, Steve Creamer has resigned. The board has appointed Val John Christensen as its Chief Executive Officer and President, effective immediately.

The news that came out last Friday affected the company’s stock grade, according to reports with FBR Capital Markets downgrading the company stock over concerns that a CEO’s departure just days before company results are due to be made public was not a positive sign.

The nuclear waste company has been in turmoil over its future role within the nuclear waste sector, especially n regards to its handling of imported radioactive waste, which has been put on hold, but would have been part of its future revenue generation.

Mr. Christensen has been serving as President of the Company since December 2008 and previously served as the Company's Executive Vice President and General Counsel.

Mr. Creamer also resigned as Chair of the Board and Steven Rogel, one of the Company's independent directors, and formerly Chairman of the Board of Directors and CEO of Weyerhaeuser Company, has assumed the role of Chair of the Company's Board of Directors.

"Steve Creamer had the unique vision and energy to create a strong public company based in Utah that plays a critical role in America's nuclear industry," said Val Christensen, CEO, EnergySolutions.

"Steve will continue to be an important sounding board and a strong supporter of the Company."

US turns to Sweden for nuclear repository model

The US Congress and the Department for Energy are looking at how Sweden has successfully streamlined its nuclear waste repository plans.

After feasibility studies were conducted and a straight forward message of ‘we need a solution now’ was presented to Swedish local governments and citizens, two Swedish municipalities came to see the repository as a source of jobs and international prestige and were eager to be selected, according to a Los Angeles Times report.

Unlike the US, the national government in Sweden, once it enacted a law allowing a repository, maintained a hands-off policy as to its location, allowing industry officials to make the decision, in consultation with local government.

In the US, by contrast, the process is led by the Department of Energy, with Congress still having veto power.

The US model also is trying to isolate the geographic responsibility instead of spreading several depositories across the country given that nuclear energy supplies 50% of the country’s electricity needs.

Because the nuclear industry is ultimately responsible in Sweden, things are fast tracked and not put through the motions of political agendas.

US Geologists, such as Allison Macfarlane, have been  appointed to Obama's Blue Ribbon Commission on America's Nuclear Future, and are likely to be given the authority to make decisions on repository construction rather than just provide advice.

According to estimates, Sweden’s crystalline bedrock repository will be built in ten years time.

Iran selects two sites for uranium enrichment

According to a CNN report, Iran has picked potential sites for uranium enrichment plants and could begin planning for two of them this year, an Iranian nuclear energy official confirmed.

"Close to 20 locations have been chosen and presented to President (Mahmoud) Ahmadinejad. However, these are all potential locations," Ali Akbar Salehi, head of Iran's Atomic Energy Organization told the semi-official Iranian Students News Agency.

"God willing, next (Iranian) year, we will ... start the construction of two uranium enrichment plants," Salehi said.

The next Iranian year begins in March.

"We plan to use new centrifuges at these two plants," Salehi said.

The United States and its allies have urged the United Nations to impose new sanctions on Iran over its enrichment plans.

Last week, Iran's supreme leader said the Islamic republic does not believe in pursuing nuclear bombs.

Ayatollah Ali Khamenei made the remarks a day after a draft report from the UN nuclear watchdog said Iran may be working secretly to develop a nuclear warhead for a missile.

"Iran will not get emotional in its response to these nonsensical statements, because we have often said that our religious tenets and beliefs consider these kinds of weapons of mass destruction to be symbols of genocide and are, therefore, forbidden," the supreme leader said.

NDA says first part of Dounreay event a success

Nuclear industry representatives from many countries visited Caithness for the first part of the Dounreay Industry Event, said the NDA.

During the event stakeholders were given the chance to speak directly to bidders about opportunities in the area, as well as what they would like to see from a new Parent Body Organisation (PBO).

Bidders were also given an outline of how the competition will be run - including ensuring an ethical and fair competition.

In addition to NDA representatives, there were several other speakers from across the region, including local MP John Thurso, Eann Sinclair (Caithness & North Sutherland Regeneration Partnership), Trudy Morris (Caithness Chamber of Commerce), David Whiteford (North Highland Initiative), Donald MacBeath (North Highland College), and Davie Alexander from UNITE.

John Thurso MP had this to say: "The day fulfilled both its purposes - firstly to ensure that bidding companies understood the vital importance of socio-economic regeneration in the decommissioning process and that the successful bidder must actively engage in it and, secondly, to demonstrate that the North is a great place to do business offering real economic opportunity, a great environment and a skilled and committed workforce.  The companies I talked to went away with a clear concept of what was needed."

 Graeme Rankin, NDA Competition Project Manager, said: "It was a successful and interesting day – and a great way to formally kick off the competition process.

“We felt it was important that stakeholders had the opportunity to have their say and talk to potential bidders about their concerns and aspirations for the area – and I believe that bidders found this grassroots insight very useful.

"One of the overriding themes of the day was the stakeholders' desire to work in partnership with the successful PBO to ensure a sustainable future for the region.”

The next part of the industry event will take place in Glasgow, Scotland on 9 March, where more details of the competition process will be discussed. "