Centrifuge crash report allegedly delayed until after financing deadline. SONG (the Southern Ohio Neighbors Group) disclosed on July 6 that a power outage and centrifuge crash happened at USEC's project site near Piketon, Ohio. As reported in that newsrelease, Osiris Siurano, the NRC project manager for USEC's centrifuge project license, told SONG in an interview on July 5 that USEC had notified NRC and DOE "within 24-hours as required." According to NRC's "Event Notification Report" of that day, July 5, however, NRC was not actually notified of the situation until July 1.
July 1 just happened to be one day after USEC's original financing deadline of June 30, by which time USEC needed to secure a "conditional commitment" for a loan guarantee from the Department of Energy. That is, there is now evidence that USEC waited nineteen days before reporting a serious safety incident to NRC, in hopes that DOE would provide the "conditional commitment" before the incident became known. Silence from USEC, from DOE, and from USEC's two financing agents in the United States Senate, as the June 30 deadline neared, is now explained. In nuclear industry lingo, Mr. Siurano's statement that the 24-hour notification requirement had been met could be characterized as having "suboptimal veracity."
There is no decision yet on the Department of Energy's US$2 billion loan guarantee for USEC Inc. to complete the American Centrifuge Project at Piketon. USEC says it is now “most likely” looking at further cutbacks and a reduction of future investment in its planned American Centrifuge Project at Piketon. “We are reaching a critical point regarding continued funding for the American Centrifuge Project. We need to obtain a conditional commitment for the loan guarantee from DOE,“ the company said already in May.
Portsmouth Daily Times, 1 & 13 July 2011 / HuntingtonNews.net, 8 July 2011
Germany’s phase-out by 2022 sealed (again). On July 8, Germany's upper house of parliament, the Bundesrat, passed the amendment to the atomic energy bill sealing Germany's exit from nuclear power by 2022. Ten days before, on June 30, the Bundestag, Germany's lower house of parliament, approved with an overwhelming majority plans to phase-out nuclear power by 2022. The nuclear phase-out bill cleared the lower house with only the far-left voting against, while the opposition Social-Democrats and Green party both supported the bill.
Germany's new energy strategy reverses the extension of nuclear run-times, which became law earlier this year. Seven reactors built before 1980 as well as the Kruemmel reactor, which has not been online since 2007, will remain shut permanently, according to the bill. The nine remaining reactors will be gradually phased-out between 2015 and 2022.
Germany's E.ON feels no pressure to replace nuclear power plants with alternatives after the policy shift. "There is no strategy to replace lost nuclear capacity one-to-one. As an entrepreneur I always ask myself is my investment profitable?," Chief Executive Johannes Teyssen said on June 30. It is one of the four utilities with German nuclear power plants.
E.ON, which in an outcry earlier in June had demanded damages from the government for the closures, was holding on to the legal pursuits but had in the meantime adopted a more conciliatory stance, Teyssen said. But the group will now respect the change in policy towards renewables.
Reuters, 30 June 2011 / Platts, 30 June and 8 July 2011
Finland: inviting bids for construction npp. Finnish company Fennovoima has invited Areva and Toshiba to bid for the construction of a new nuclear power plant, which will be built at one of its greenfield sites Pyhäjoki or Simo, in northern Finland. Bids will be for the delivery and construction of the reactor and turbine islands. Infrastructure work during the first phase of construction and preparatory work such as earthmoving and excavation are excluded from the bid.
Fennovoima has already selected three alternatives for the plant design: Areva’s 1700 MW EPR, its advanced boiling water reactor the 1250 MW Kerena and the 1600 MW ABWR by Toshiba Corporation. The plant supplier and the model of delivery is due to be decided in 2012-2013. Fennovoima is planning to select the site for its nuclear power plant in 2011 and preparatory work could start by the end of 2012.
Nuclear Engineering International, news 5 July 2011
Citygroup: nuclear “uninvestable for public equity markets”. According to Peter Atherton, Citygroup’s head of European utilities research, Britain's nuclear strategy is "uninvestable" for private clients, who are only likely to put money into new plants if the government shoulders more of the risks involved. He says the investment environment is "dire." "Investors are demanding more of their returns up front in cash rather than dividends, indicating they don't trust the capital growth of the sector. "As we stand today, is (new nuclear) an investable option for Centrica, RWE? Simply put, no. The cost of capital based on those risks would be way too high to give you an electricity price which is affordable. "You would be looking at a project cost of capital of at least 15 percent. That would require a power price of about 150-200 pounds per megawatt hour (based on 2017 money) to make that project work," Atherton said, which is three to four times as much as current UK spot power prices.
"If we want (plants) built, the state will have to take on the risks," he added, saying the government could do this through direct subsidies, taxes or building new plants itself. Shares in the European utility sector have fallen about 30 percent since February 2009, according to Citigroup, as EU utilities have been more exposed to commodity price rises than in Asia or the U.S., and, most recently, due to the impact Japan's nuclear crisis.
Reuters, 6 July 2011
U.S.: Reactor proponents are batting 0-6 in state legislatures in 2011. Deep-pocketed nuclear power lobbyists may pack a big punch in Washington, D.C., but they are getting knocked out altogether at the state legislative level. So far in 2011, the nuclear power industry has a record of zero wins and six losses in Iowa, Kentucky, Minnesota, Missouri, North Carolina, and Wisconsin. The nuclear power industry’s dismal track record is in keeping with its history of state legislative failures in 2010 (when it went 0-8) and 2009 (0-6).
The nuclear power industry’s 2011 state legislative failures:
* Minnesota – A heavily lobbied bill to overturn the state’s moratorium on additional reactors died in conference committee.
* Wisconsin – A push to reintroduce a bill to overturn the Badger State’s moratorium on new reactors failed.
* Kentucky – A bill to overturn the state’s moratorium on new reactors died in the House.
* Missouri – Despite a major industry push, a bill to charge utility customers in advance to pay for an “Early Site Permit” for the proposed new Callaway reactor died.
* North Carolina – A “Super Construction Work in Progress (CWIP)” bill to eliminate prudence review of CWIP expenses was proposed but never introduced due to strong on-the-ground opposition.
* Iowa – A bill pushed by MidAmerican to charge utility customers in advance for “small modular reactors” as well as potentially larger reactors stalled in the state Senate and cannot be taken up again until 2012.
In 2010, nuclear power lobbyists failed in legislative pushes in Arizona, Illinois, Iowa, Kentucky, Minnesota, Vermont and West Virginia and Wisconsin. In 2009, the industry enjoyed no success whatsoever in its lobbying efforts in Kentucky, Minnesota, Hawaii, Illinois, West Virginia and Wisconsin.
Safe Energy Program at Physicians for Social Responsibility, www.NuclearBailout.org, 6 July 2011
Khan: North Korea paid Pakistan for nuclear secrets. In a letter released by Abdul Qadeer Khan, the disgraced nuclear scientist and ‘godfather of Pakistan's atomic bomb’, the North Korean ruling party appears to confirm that it paid more than US$3.5m (2.5m euro) to the serving army chief and at least one other senior general for transferring nuclear weapons technology to North Korea. The 1998 letter, was released as part of an attempt by Khan to establish that he was not working on his own when nuclear secrets were passed on to Iran, North Korea and Libya before his fall from grace. The two generals named in the letter fiercely denied the allegation, and denounced the letter as a forgery.
But opinion is divided not just over the authenticity of the documents, but also whether they establish that Khan was not acting alone. The Washington Post quoted unnamed US officials as saying that the letter's contents were "consistent with our knowledge" of the events described. But David Albright, a nuclear proliferation expert with the Institute for Science and International Security in Washington, disputes Khan's claims that top military officials were complicit. "[The letter] shows that Khan was a rogue agent and he colluded to provide centrifuge components to North Korea without Pakistani official approval," the AP quoted him as saying. More on Khan at www.laka.org/info/publicaties/Khan/Khan.pdf
Independent (UK), 8 July 2011