Companies mentioned in this week's brief include: British Energy, National Audit Office, EDF, Federation of Electric Power Companies of Japan, Japan Nuclear Fuel, Korea International Cooperation Agency, Hydro-Quebec, Point Lepreau Nuclear Facility, United Nations

Nuclear popularity could wane if taxpayers foot decommissioning costs

The Government received a good price when selling its interest in British Energy, but uncertainty still looms as to whether the Government can achieve its strategic objective of ensuring nuclear operators are able to build and operate new nuclear power stations from the earliest possible date and with no public subsidy, according to a report by the National Audit Office.

"The Government sold its stake in British Energy when energy prices were at a peak, and got a good price,” said Amyas Morse, head of the National Audit Office.

“The biggest priority for the Government was, however, to ensure new nuclear power stations could be built from the earliest possible date and with no public subsidy.

“Whether it will achieve this remains to be seen. The Department of Energy and Climate Change now needs to make real progress on its contingency plans should EDF be unwilling to build new nuclear power stations."

British Energy was the largest independent energy generator in the UK and owner of sites viewed by industry as the most suitable for new nuclear power stations.

The Government sold its 36 per cent interest in the company to EDF Energy for £4.4bn in January 2009.

The final cash offer from EDF was 774 pence per share – 10 per cent higher than the valuation by the Shareholder Executive, the Government agency that managed the sale. Movement in energy prices after completion of the sale show that EDF put forward its offer when energy prices were at a peak.

The Government’s primary objective for the sale was to ensure nuclear operators are able to build and operate new nuclear stations from the earliest date with no public subsidy.

The Department of Energy and Climate Change did not seek, and EDF did not offer, any binding commitment to build new nuclear power stations as a condition of the sale. But EDF’s acquisition of British Energy has improved the prospect of investment in new nuclear power stations.

While the Government no longer has a direct financial interest in British Energy, it remains responsible for funding any shortfall in the future cost of decommissioning British Energy’s existing nuclear power stations.

The Shareholder Executive did not carry out a formal assessment of the impact of the sale on the risks that taxpayers might have to bear if, for example, the new owner- operated British Energy’s power stations in a way that required earlier decommissioning.

 

UK to return vitrified waste to Japan

In the near future vitrified packages of high-level radioactive waste (HLW), reprocessed in the UK from spent fuel sent by Japanese nuclear power plants, will be returned to Japan, according to the Federation of Electric Power Companies of Japan and Japan Nuclear Fuel.

This would mark the first time that vitrified waste will be transported from the UK to Japan.

Reprocessing spent nuclear fuel recovers 97% of valuable, reusable materials, according to japannuclear.com, and separates out the remaining 3%, which is ultimately high-level radioactive waste (HLW).

"The HLW is conditioned by turning it into a solid glass form by a process called vitrification. It is widely accepted around the world that vitrification of HLW is a safe and secure method of treating, transporting and storing these forms of nuclear waste.

"In Japan, vitrified waste is stored at a vitrified waste storage center at theJNFL facilities  in Rokkasho Village in northern Japan. These vitrified wastes will be stored at the center for 30 to 50 years before being transferred to a final subterranean disposal facility, also to be located within Japan.”

The first vessel, transporting 28 vitrified packages prepared at the Sellafield reprocessing plant in northwestern England, is expected to arrive in Japan in March.

Ten Japanese utilities signed contracts signed in 1977 and 1978 with Cogema (now Areva NC) of France and British Nuclear Fuels Limited for the reprocessing of Japanese spent nuclear fuel in France and the UK.

Under the terms of the contracts, Japan is obliged to take back waste from its reprocessed spent fuel.

Vitrified packages of HLW, created after reprocessing in France, were all returned between 1995 and 2007, transported in 12 installments.

The Japan Atomic Industrial Forum (JAIF) said the vitrified packages from the UK will be transported over the course of the next decade.

The route of each ship and the date of its arrival in Japan will not be announced until after it has departed from the UK.

Egypt turns to Korea to train nuclear energy technicians 

In preparation for its planned introduction of nuclear energy, Egypt has made a formal request to South Korea to train its nuclear engineers as part of the Korea International Cooperation Agency’s support program for developing countries, according to the World Nuclear Association and World Nuclear News.

Since 1992, KOICA's nuclear energy sector training course, conducted in cooperation with the International Atomic Energy Agency (IAEA), has trained over 400 engineers from developing countries, including Vietnam, Indonesia and Nigeria.

South Korea recently successfully won the tender to supply four power reactors to the United Arab Emirates (UAE), which has boosted its confidence in the export market for reactors.

The country's Ministry of Knowledge Economy says that South Korea aims to export 80 nuclear power reactors - worth some $400bn - by 2030, to give it a 20% share of the global market. It considers the Middle East and developing countries as key markets.

The training news comes at a time when Egypt is considering six bids from international firms to provide support and advice on setting up the country's nuclear safety regulatory framework.

In August 2009, Hassan Younis, minister of energy and electricity, said that bids had been received from undisclosed Canadian, French, German, South Korean, UK and US and companies.

The six were shortlisted from a total of 17 gathered after a request put out in April 2008.

The government also intends to create an Egyptian nuclear regulatory body, which will be formed in parallel with international standards, in advance of the country’s construction of its first nuclear power plant, said the report.

 

Hydro-Quebec buys Point Lepreau nuclear facility for $1.4bn

Canadian Premiers Shawn Graham and Jean Charest have said that a conclusion has been made on an energy agreement between the provinces of New Brunswick and Québec, which will see Hydro-Quebec acquire most of NB Power's generation assets including the Point Lepreau nuclear power station.

As part of a global transaction worth $3.2bn, Hydro-Québec will acquire most of NB Power's generation assets for $1.8bn.

This will include the 7 hydroelectric generating facilities, the 2 diesel peaking units located on the main grid and firm transmission rights associated with the acquired generation assets, including 670 MW of transmission rights with New England.

Hydro-Québec will also acquire the Point Lepreau nuclear facility for $1.4bn upon its successful refurbishment, on or about January 1, 2011.

The transmission and distribution arms of NB Power and the deferral account associated with the Point Lepreau refurbishment will be retained by New Brunswick.

Approximately two-thirds of the utility’s employees will continue to work for NB Power and employees of Holdco will continue to offer services to the operating companies of NB Power.

 

Hydro-Québec will act as an electricity wholesaler to NB Power

Under a long-term power contract, Hydro-Québec will provide NB Power with an annual supply of 14 TWh of electricity.

For the first five years, that supply will be provided at a price of 7.35¢ per kWh.

As previously announced, after that period the price will change only according to New Brunswick’s Consumer Price Index (CPI).

The transaction is expected to close on or about March 31, 2010 for the assets acquired, with the exception of the Point Lepreau facility, which will be transferred upon the successful completion of its refurbishment and the issuance of the necessary operating permits, expected to be on or about January 1, 2011.

"Our partnership with Québec will secure lower energy costs for our province, leave NB Power as a New Brunswick-owned entity, and reaffirm our province’s control over decisions affecting energy policy," said Premier Shawn Graham.

"We are proud of a partnership that allows us to create jobs and a better economic future for New Brunswick, and to do our part in reducing greenhouse gases."

"In a world where access to clean renewable energy sources is an issue, where energy needs are strong and continue to grow, Québec and New Brunswick are leading the way.

The changes we are announcing today, along with firm transmission rights to New England, allow us to achieve the goals set out in the agreement reached with New Brunswick," said Charest.

"Hydro-Québec will acquire quality assets allowing it to maximize its export capacity, while New Brunswickers will benefit from a reliable source of energy with important economic and environmental benefits," he concluded.

Iran rejects deal to export its uranium abroad

Iran has notified the United Nations nuclear watchdog that it rejects key parts of a draft deal to send abroad most of its enriched uranium to ease fears it could be used to make nuclear weapons, diplomats said last week.

It was Iran's first apparently formal answer to the proposal originally hatched in October and echoed months of dismissive or ambiguous remarks made through the media.

The United States rejected Tehran's reply as "inadequate," according to Reuters reports.

Under the deal, Iran would transfer 70 percent of its stock of low-enriched uranium (LEU) abroad and in return receive fuel for a medical research reactor, said the report. The deal aimed to reduce Iran's LEU reserve below the quantity needed for the fissile core of a nuclear weapon, if it were enriched to a high degree of purity.

Washington State Department spokesman P.J. Crowley said: "I am not sure that they have delivered a formal response but it is clearly an inadequate response," he told reporters. "I am not sure that whatever they have done, perhaps today, is any different than what they have done previously."

The country’s failure to meet the US deadline of December 31 to accept the October plan devised by then-IAEA chief Mohamed ElBaradei has prompted six world powers to start considering tougher sanctions against Tehran.