UIC NEWSLETTER # 1, 2005

January - February 2005


ISSUE HIGHLIGHTS



Bipartisan US approach to energy policy

A high-powered commission of 16 members with diverse expertise and affiliations has spent two years developing an energy policy for the USA, something which has been repeatedly attempted in Congress but always frustrated by obtrusive minor interests. The resulting report from National Commission on Energy Policy makes a lot of sense, even if it is blinkered in a couple of places.

The commissioners report that they "found common ground in rejecting certain persistent myths - on the left and on the right - that have often served to polarise and paralyse the national energy debate. These include, for example, the notion that energy independence can be readily achieved through conservation measures and renewable energy sources alone, or that limiting greenhouse gas emissions is either costless or so costly that as to wreck the economy if it were tried at all. Most of all, commissioners rejected the proposition that uncertainty justifies inaction in the face of significant risks. Š. It is time for the stalemate to end."

There are several recommendations which are particularly relevant to the electricity sector. These relate to reducing risks of climate change, expanding energy supplies, strengthening infrastructure, and developing new energy technologies. The recommendations together are revenue-neutral, with the income flowing from sales of greenhouse gas permits being allocated to incentives for early deployment of advanced coal (IGCC) and advanced nuclear technologies as well as doubling RD&D.

On climate change the USA is urged to "adopt a mandatory, economy-wide, tradable-permits system for limiting greenhouse gas emissions, with a safety valve designed to cap costs." The costs would initially be capped at $7 per tonne of CO2-equivalent reduction ($25.67/tC). Further US action should be linked to developed and developing country commitments.

For advanced coal technologies up to $4 billion is recommended over ten years for deployment of 10 GWe of integrated gasification combined cycle (IGCC) coal technology with carbon capture, plus a further $3 billion for commercial-scale geological carbon sequestration. These are designed to maintain the role of low-grade coals.

"Government policies to improve the prospects for expansion of nuclear energy are warranted by the interests of society as a whole Š. in abating the climate change risks by expanding the share of no-carbon and low-carbon energy options in the electricity generating mix", for a variety of reasons including "alleviating pressure on natural gas supplies". In particular $2 billion should be provided to demonstrate advanced nuclear energy technologies including one or two power plants. Also the government should get on with developing the Yucca Mountain high-level waste repository in Nevada.

In addition, "the federal government should also recognise and reward the non-carbon nature of nuclear energy by treating new nuclear generation on a par with renewable energy sources" by extending the Production Tax Credit now available to renewables (currently 1.8 cents/kWh, indexed to inflation). It also recommends "fulfilling existing federal commitments on nuclear waste management, and significantly strengthening the international non-proliferation regime." As well as continuing the moratorium on reprocessing of spent fuel and construction of breeder reactors, the government is urged to strengthen the International Atomic Energy Agency.

For renewables in power generation, better and financially fair integration of their supply into grid systems is required. Hydrogen is seen as 50-year prospect before full development, and only electrolysis and coal sources are considered.

Ending the Energy Stalemate - A bipartisan strategy to meet America's energy challenges, National Commission on Energy Policy, Dec 2004.

German wind report highlights need for base-load plant

In 2003 Germany led the world in wind energy, thanks to provisions made by law. Of the national wind power total of 14,350 MWe, nearly half was connected in E.ON's part of the country, stretching from Denmark to Austria. A report from E.ON has outlined the operational challenges associated with this.

In 2003 some 18.6 billion kWh of electricity was fed in from wind turbines, about 4% of Germany's total (compared with 157.4 billion kWh, 28% from nuclear). For this, grid operators paid out an average of EUR 9 cents/kWh, more than double the normal cost.

In the E.ON area during 2003, maximum wind power infeed was 80% of installed wind capacity, average infeed was 16.4% of average capacity, and for more than half the year it was less than 11% of capacity. Whenever demand was very high because of winter cold or summer heat, wind was unable to provide much help. Also supply from wind turbines can change rapidly, meaning that back up sources - which must amount to over 80% of wind capacity - must be brought on line equally rapidly.

Matching patterns of demand to conventional controllable generating capacity is readily achieved. But with wind, forecasting is unreliable and with the almost random level of input from that quarter, uncontrollable fluctuations occurred on the generating side up to almost half the total wind capacity. This means that reserves of up to 60% of wind capacity must be kept for this load balancing, to be brought on or taken off line quickly, and in 2003 E.ON alone incurred costs of some EUR 100 million for this as fees paid to operators of conventional plants. Guaranteeing the stability of electrical supply (voltage and frequency) for these and other more technical reasons associated with wind infeed has become a major challenge for E.ON.

A further problem not unique to E.ON's part of Germany is grid infrastructure. Most power plants are built near where the power is needed. But wind turbines need to take advantage of the most windy sites, and these are often poorly served by grids. E.ON is facing the need to build 290 km of high-voltage lines at a cost of EUR 190 million. If offshore wind development proceeds as envisaged, costs will be much higher. There is also the question of transmission losses from conveying power long distances.

E.ON Wind Report 2004.

USA

Major US utility merger
Exelon Corp and Public Service Enterprise Group (PSEG) have announced a $79 billion stock merger which will create the largest US power generator - Exelon Electricity & Gas, with 52,000 MWe net capacity, including 20 nuclear units totalling 40% of that. Exelon will take over management of PSEG's nuclear plants in mid January, though the full merger will await regulatory approvals. Cost savings and productivity increases are expected to total some $500 million per year.
Nucleonics Week 23/12/04, Nuclear Energy Overview 27/12/04.

New reactor project changes horses
The Dominion Resources consortium which is pursuing a Combined Construction-Operating Licence (COL) with financial support from the Department of Energy has dropped AECL and its ACR-700 reactor from its team and has switched to General Electric and its ESBWR design. The 1500 MWe ESBWR is also one of two options being pursued by the NuStart Consortium. Of the two other participants in the Dominion group, Bechtel continues and Hitachi drops out. The reason for Dominion's loss of confidence was that the Nuclear Regulatory Commission (NRC) had indicated that approval of the technology would be much slower than that for types more familiar to them. An original estimate of 30-36 months had grown to 60+ months. The 750 MWe ACR-700 was at pre-application stage of NRC design certification, and it appears that while continuing the licensing process in Canada, AECL will now abandon that with the NRC. In future it will focus on its larger but less-developed 1200 MWe ACR design, in order to market that in the USA, China and UK. GE hopes to get design certification for the ESBWR in 2007.
Canada News Wire 14/1/05, Nucleonics Week 20/1/05.

US public support for nuclear power grows
An October poll (N=1000) has confirmed that support for nuclear power in the USA is growing, due to concern about security of energy supplies. Eight in ten believe that nuclear will be important in meeting US electricity needs, 67% personally favour it, and 60% agree that more nuclear plants should be built. Two thirds of self-described environmentalists favour it.
NEI Nuclear Energy Insight Nov-Dec 2004.

Alaska to pioneer small reactor
The town council of Galena in Alaska has asked Toshiba to license and install a 10 MWe integral sodium-cooled nuclear reactor there. The unit will require no refueling over its 30 year life. Galena is a very isolated settlement with high cost power and the proposal has been under intensive review for some time. The 4S (Super-Safe, Small & Simple) 'nuclear battery' system has been developed by Toshiba in cooperation with Japan's Central Research Institute of Electric Power Industry (CRIEPI). It uses sodium as coolant and has passive safety features. The whole unit - some 18 metres tall and 2.5 m diameter - would be factory-built, transported to site by barge and installed below ground level. Fuel is uranium-zirconium alloy enriched to less than 20%, and steady power output over the core lifetime is achieved by progressively withdrawing a graphite reflector around the slender core. Plant cost is about US$ 2500/kW and power cost 6-8 cents/kWh - about one quarter that of Galena's present diesel power. After 30 years the unit is replaced, and the spent one returned to the factory for refueling.
Nucleonics Week 6/1/05, Nuclear Energy Overview 10/1/05.

US extends program to take research reactor fuel
Due to delays in developing new high-density low-enriched uranium fuels to replace high-enriched (HEU) fuels, many of the 107 research reactors using the old fuels will need to continue doing so for some time. An incentive for the changeover was the US offer of taking back US-origin spent HEU fuel up to a 2006 deadline. This has now been extended by ten years and the scope expanded to include low-enriched fuel from the new Australian research reactor. So far the US Department of Energy has received only 35% of the fuel eligible, involving 30 shipments and 27 countries.
DOE 6/12/04, SpentFuel 6/12/04.

Hydrogen production development
One step towards the nuclear-driven hydrogen economy has been demonstrated in the USA by the Department of Energy and Ceramatec Inc, with the laboratory-scale electrolytic production of hydrogen from steam at over 800°C. This increases the efficiency of electrolysis from 25-30% cold to 45-50% and is one way of applying the output of future high-temperature nuclear reactors. Eventually, thermochemical means are likely to be used at about 950°C.
DOE 30/11/04, Nucleonics Week 9/12/04.

US increases nuclear budget
Funding for Department of Energy nuclear energy, science and technology programs was increased 26% to $513 million for fiscal 2005. Funding for the Yucca Mountain waste repository was maintained at $577 million.
NEI Nuclear Energy Overview 6/12/04.

Depleted uranium classified as waste
The US Nuclear Regulatory Commission has ruled that depleted uranium arising from enrichment by Urenco-led Louisiana Energy Services (LES) can be classified as low-level waste, and hence would have to be taken over for disposal by the Department of Energy if LES requested that. The decision has implications for whether the 1.2 million tonnes of depleted uranium stored around the world should be seen as waste or a potentially valuable energy resource for fast neutron reactors in the future.
Platts 18/1/05.

EUROPE

New Russian reactor starts up
Unit 3 of Kalinin nuclear power plant has been connected to the Russian grid. It is a V-320 (VVER-1000) unit of 950 MWe net, a later version of units 1 & 2 which were among the earliest VVER-1000 units, being grid connected in 1984 & 1986. Construction of unit 3 started in 1985 but was suspended for some years.

Three further V-320 units are in various stages of construction in Russia, while Kursk-5 (a 70% complete RBMK unit) is stalled by lack of funds. Beloyarsk-4, an 800 MWe fast breeder reactor, is delayed by a funding disagreement between Rosenergoatom and the government, due to it being the first of possibly several.
Nuclear.Ru 30/11 & 16/12/04.

UK Lords report blasts government on wastes
A report from the House of Lords Science & Technology committee has strongly criticised the UK government for procrastination and ineptitude on radioactive waste and nuclear power. The committee, including considerable relevant experience and expertise, was astonished that the government did not consult its Chief Scientific Adviser in appointing the Committee for Radioactive Waste Management (CoRWM) early in 2004, that it did not include any relevant technical expertise on CoRWM, that despite UK being way behind other countries in grappling with the issue it told CoRWM to start with a blank sheet rather than building on strong international consensus, and that CoWRM seemed more interested in internal procedures than addressing the issue. "Overall we find that CoRWM's terms of reference are dauntingly broad and in some respects astonishingly vague. We judge the composition of CoWRM to be inappropriate for offering advice to the government on technical aspects of their remit." Despite a series of reports since 1976 the government still lacked a coherent policy on wastes or any sense of urgency in developing one.

In conclusion: "The Government must no longer allow delays in developing a long-term radioactive waste management strategy to be used a pretext for deferring decisions on nuclear power. To do so would seriously narrow the range of options open to the Government in meeting their longer term energy and environment goals. The small uncertainties associated with radioactive waste disposal that still exist must be balanced against the spectre of global warming."
HL Report 200, Dec 2004

France decommissioning old reprocessing plant
Organisation and financing of final decommissioning of the UP1 reprocessing plant at Marcoule has been settled, with the Atomic Energy Commission (CEA) taking it over. The total cost is expected to be some EUR 5.6 billion. The plant was closed in 1997 after 39 years of operation, primarily for military purposes but also taking the spent fuel from EdF's early gas-cooled power reactors. It was operated under a partnership - Codem, with 45% share by each of CEA and EdF and 10% share by Cogema. EdF and Areva (for Cogema) will now pay CEA EUR 1.5 billion and be clear of further liability.
NuclearFuel 6/12/04.

European industry call for more nuclear power
The Chief Executives of more than 20 EU energy companies have called upon governments to make nuclear power a central part of their energy policies on the basis of energy security and environmental protection. They point out that all low-carbon and zero-carbon sources will need to be mobilised - notably nuclear and renewables - and hence all should be able to compete equitably. The statement was represented as the opening shot in a new offensive to change policy settings in EU countries to give due credit to the virtues of nuclear power and to remove measures which discriminate against it. In the UK, the head of the Confederation of British Industry earlier called for the immediate construction of six new nuclear plants over the next ten years, since the UK government's reliance on wind would achieve little. A similar call has come from the Swedish forest products industry in relation to that country's policies.
Foratom 25/11/04, Nucleonics Week 2/12/04, Nuclear Issues Nov 2004.

Lithuanian reactor shut down for EU
Unit 1 of the Ignalina nuclear power plant was shut down permanently on 31 December. The RBMK-1500 unit had started up in 1983, followed by unit 2 in 1987. These were the largest of their type in the world, even after de-rating from 1380 to 1185 MWe, and they supplied 80% of Lithuania's electricity. The closure was agreed several years ago as a condition of entry to the EU, and unit 2 is to close in 2009. The EU has provided EUR 315 million toward decommissioning and as compensation, and is scheduled to deliver a further EUR 1052 million by 2013. The government is keen to build replacement nuclear capacity but is presently unable to finance it, and a decision is slated for 2007.
Ignalina NPP 31/12/04, Nucleonics Week 6 & 20/1/05.

Poland revives nuclear plans
The Polish cabinet has decided that for energy diversification and to reduce CO2 and sulfur emissions the country should move immediately to introduce nuclear power, so that an initial plant might be operating soon after 2020. Poland had four 440 MWe Russian units under construction in the 1980s, but these were cancelled in 1990 and the components have been sold. Some 95% of Poland's electricity is from burning coal, and the new energy policy signals a shift in this, with all four scenarios involving nuclear power.
NucNet news #3/05, Nucleonics Week 13/1/05.

Russia signs nuclear agreement with Egypt
A new agreement on peaceful uses of atomic energy has been signed, and will revive Egypt's plans for a nuclear power and desalination plant there, supported by Rosatom. Egypt already has a 1961-vintage 2 MW Russian research reactor serviced by Russia, and a 22 MW Argentinian research reactor partly supported by Russia and which started up in 1997. A feasibility study for a cogeneration plant for electricity and potable water at El-Dabaa, on the Mediterranean coast, has recently been undertaken.
NucNet news in brief 1/12/04, IAEA.

Strong interest in Romania's 3rd Cernavoda unit
Following expressions of interest for building Cernavoda-3, six companies were selected for further negotiations, including those presently completing unit 2. A joint venture project company was then to be set up this year to arrange finance, construct, commission and operate the unit. However, discussions with the companies showed that the proposed public-private partnership was unsuitable and this was exacerbated by the deregulated power market which would not allow a government guarantee of the proposed long-term power purchase agreement. Negotiations continue to set up a project agreement to build the new plant. Only the containment is now built.
Nuclearelectrica 2/12/04, Platts Energy in E.Europe 7/1/05.

EU launches CO2 emissions trading
The EU Emission Trading Scheme (ETS) was launched on January 1 in 21 of 25 EU countries. Each major industrial site in member countries will be allocated an annual quota of emission allowances and can buy and sell allowances as required - EU allowances (EUAs) for 2005 are trading at around EUR 7 per tonne of CO2. Any company exceeding its quota will be fined EUR 40 per tonne. The scheme covers about half of the carbon emitted in the EU, and is focused on 12,000 sites in five sectors: cement, glass, iron & steel, paper & pulp, and electricity generation - the last accounting for 55% of the ETS total. It is intended to reduce the cap on emissions over time.

During 2004 forward trade in carbon emission permits was around EUR 70 million in the ETS, involving more than 8 million EUAs. A spot market will be inaugurated in March. The scheme will be reviewed by the EC in 2006.
FT 31/12/04, Platts 4/1/05, New Scientist 8/1/05, AETF Review Dec-Jan 2004-05.

ASIA & AFRICA

New South Korean reactor on line
Ulchin unit 6, a pressurised water reactor, was connected to the South Korean grid in December, adding 960 MWe to meet rising demand. This is the last of six Korean Standard Nuclear Power Plants (KSNP) incorporating many of the US advanced reactor features. The next four plants ready to start construction - Shin Kori 1 & 2 and Shin Wolsong 1 & 2 - are 950 MWe KNSP+ units incorporating substantial improvements and originally due to come on line 2008-11, but delayed two years. Shin Kori 1 & 2 have now been approved by government. Beyond these, construction start is awaited for the first APR-1400 units - Shin Kori 3 & 4, which represent a further evolution to late Generation III units in world terms.
NucNet news # 7/05, Nucleonics Week 4/11/04 & 13/1/05.

New Japanese reactor starts up
The first unit of Tohoku's Higashidori nuclear power plant has started up. Grid connection of the 1067 MWe BWR is expected in March, commercial operation in October. A second Tohoku unit is planned, and before that two Tepco Higashidori units will be built nearby - all 1385 MWe Advanced BWRs.
JAIF 24/1/05.

Japan's Hamaoka-5 begins commercial operation
Japan's newest and largest Advanced Boiling Water Reactor (ABWR) has commenced commercial operation, after its grid connection last April. The 1380 MWe ABWR unit is the same thermal power as its two predecessors, but has a more efficient turbine. It brings the country's number of reactors in commercial operation to 53, with total 45,275 MWe.
NucNet News #12/05.

Japan looks to double nuclear share by 2050
Japan's Atomic Industrial Forum has released a report on the future prospects for nuclear power in the country. It brings together a number of considerations including 60% reduction in carbon dioxide emissions and 20% population reduction but with constant GDP. Nuclear generating capacity in 2050 is seen as 90 GWe. This means doubling both nuclear generating capacity and nuclear share to about 60% of total power produced. In addition, some 20 GW (thermal) of nuclear heat will be utilised for hydrogen production. Hydrogen is expected to supply 10% of consumed energy and 70% of this will come from nuclear plants.
JAIF Atoms in Japan Dec 2004.

South Korea offers waste incentive
The South Korean government has decided to legislate to pay local governments hosting an intermediate- or high-level waste facility US$ 290 million from the start of its construction, and also allow them to collect fees from users.
Donga.com 25/1/05.

Nigeria proposes nuclear power
To address rapidly increasing base-load electricity demand, Nigeria is seeking the support of the International Atomic Energy Agency to develop plans for two 1000 MWe reactors. Nigeria is Africa's most populous country and last year commissioned its first university research reactor. Power demand is expected to reach 10,000 MWe by 2007 - current grid-supplied capacity is 2600 MWe.
Reuters 24/1/05, TradeTech NMR 21/1/05.

Indian fuel shortages constrain power
From April to November 2004 India's Central Electricity Authority reported a 10% shortfall between peak demand and available capacity of 77 GWe, and that the supply of 362 TWh was insufficient. Shortages of coal, gas, and nuclear fuel gave rise to the problem in the face of rising demand. Coal plants comprise two thirds of India's 144 GWe grid-connected capacity.
Power in Asia 20/1/05, FreshFuel 24/1/05.

Russia declines further nuclear services to India
Acknowledging restrictions set by the Nuclear Suppliers' Group (NSG), Russia has confirmed that it will not supply further enriched uranium for India's two small Tarapur reactors, which were built by GE before the advent of the Nuclear Non-Proliferation Treaty. These boiling water reactors are the only ones in India now requiring enriched uranium. However, Russia is continuing to build the two large V-392 Kudankulam reactors under an agreement which preceded NSG restrictions and it will supply enriched fuel for them, though it seems unlikely to be able to build more of these units for India.

The NSG was set up in 1975 to control exports of nuclear equipment and services. If no further enriched fuel can be imported, the Tarapur reactors may be able to utilise mixed oxide (MOX) fuel which has plutonium as its fissile component. MOX was first fabricated in India in 1979.
The Hindu 5-7/12/04.

India's Kalpakkam nuclear site hit by tsunami
The December 26 tsunami hit the coastal site of Kalpakkam and caused some loss of life, including five Department of Atomic Energy staff at the residential compound. Unit 2 of Madras nuclear power station (MAPS) shut down when water levels rose in the cooling intake, and the foundations of the prototype fast breeder reactor whose construction began recently were flooded. (MAPS unit 1 has been shut down for refurbishment since August 2003.) Despite significant damage to the pumphouse for cooling water, unit 2 restarted after inspections on January 1. A ship carrying the first reactor pressure vessel from St Petersburg for the Kudankulam nuclear power plant weathered the tsunami and berthed on January 3.
NPCIL 28/12/04, Nucleonics Week 6/1/05.

CANADA

Canada licenses Cigar Lake mine construction
Following public hearings, the Canadian Nuclear Safety Commission has issued a licence to Cameco for full construction of the Cigar Lake mine in northern Saskatchewan, the world's largest undeveloped high-grade uranium deposit. Cameco has announced that construction will begin early 2005.

The project is planned as a 450 m deep underground mine in poor ground conditions, using ground freezing and high-pressure water jets for excavation of ore. High-grade ore slurry from remote mining will be trucked for treatment at Cogema's expanded McClean Lake mill, 70 km northeast, and most of the product then to Cameco's Rabbit Lake mill 70 km east, to produce a total of 8200 t/yr U3O8 (7000 tU/yr) from 2007. The McClean Lake mill will be modified in 2005-06 to take the new ore. Some 1.3 million cubic metres of waste rock from Cigar Lake will be emplaced under water in the Sue C pit at McClean Lake.

Cigar Lake's proven reserves are 105,000 tonnes U3O8 at 19% average grade, and with other resources the project is expected to have a life of 30-40 years. It is managed by Cameco which holds 50%, other joint venture parties being Cogema 37%, Idemitsu 8% & TEPCO 5%.
CNSC 20/12/04, Cameco 21/12/04.

Major partners increase share of Canadian mine project
Ownership of the Midwest uranium mine project in Saskatchewan has been consolidated. In September, Denison Mines announced that it had agreed to purchase the 20.7% interest in the project held by Newmont Mining subsidiary Redstone Resources for some C$ 20 million. However, major partner Cogema Resources then exercised its preemptive rights and took three quarters of this, increasing its share to 69.1% and leaving Denison with 25.17% of the project. The orebody contains 12,300 tU as well as nickel and cobalt. Further exploration is under way.
Denison 24/9, 3& 31/12/04.

Canadian 2004 uranium production
Total Canadian uranium production in 2004 was 13,676 tonnes U3O8 (11,596 tU), 11% up on 12,329 tonnes (10,455 tU) in 2003. Areva's subsidiary, Cogema Resources Inc and Cameco Corporation reported uranium production of 4665 tonnes U3O8 (3956 tU) from the McArthur River - Key Lake operation for the half year to end of December, 1357 t U3O8 (1150 tU) production from McClean Lake, and 1261 tonnes (1069 tU) from Rabbit Lake. For the full year, McArthur River thus produced 8490 t U3O8 (7200 tU), Rabbit Lake 2462 t (2086 tU), and McClean Lake 2724 t (2310 tU).

Cameco has budgeted C$ 20 million for uranium exploration worldwide in 2005, to address new market opportunities.
Cameco 25 & 27/1/05, Areva 7/1/05.

Bruce Power seeks licence to restart two old units
Ontario's Bruce Power has sought permission from the Canadian Nuclear Safety Commission to restart units 1 & 2 (shut down since 1995 and 1998 respectively) and run them to 2043. Major refurbishment totalling some C$ 2 billion will be required.
CNSC 14/12/04, Ux Weekly 20/12/04, cf UIC/WNA News 2/04.

AUSTRALIA

Australian 2004 uranium production record
Total uranium production of 10,591 tonnes U3O8 (8981 tU) in 2004 - up 18.6% on 2003 - has set a new record for Australia. ERA has announced production of 5137 tonnes U3O8 (4356 tU) from Ranger mine, WMC Resources produced 4370 tonnes (4406.5 t UOC, 3706 tU) from Olympic Dam, and Heathgate Resources 1084 tonnes (919 tU) from Beverley - now running at full capacity.

ERA has announced that it had now passed all three audits of its compliance with government requirements following incidents at the Ranger mine last year. Its net profit after tax of A$ 38.6 million is almost double that in 2003.
WMC 13/1/05, Heathgate, ERA 31/1/05.

Australian national interest invoked in uranium
Whereas the Australian government has been studiously uninterested in uranium in any energy policy sense, the Xstrata bid for WMC Resources has apparently brought about a change. Senior government ministers are quoted as being uneasy about the prospect of the Olympic Dam mine, with its estimated 1.5 million tonnes of uranium oxide resources (or 31% of world economic resources* under US $40/kgU), being under foreign control, since it could be significant for more than commercial reasons. Australia's Foreign Acquisition & Takeovers Act gives the Treasurer power to block foreign bids on the grounds of national interest. In 2001 Shell's bid for Woodside Petroleum was blocked on the grounds that it would have given a foreign company control of the Northwest Shelf gas project - Australia's largest developed energy resource.
* RAR & EAR-1.
The Age 17/12/04, Australian 15 & 16/12/04.

INTERNATIONAL

2004 a bumper year for new nuclear capacity
During 2004 seven large new reactors were connected to electricity grids and another was restarted after major refurbishment. This added 7529 MWe to world nuclear capacity, and was offset by five reactors closing down - total 1381 MWe, so net 6148 MWe increase.
In S. Korea Ulchin 5 & 6 (960 MWe each),
in China Qinshan 3 (610 MWe),
in Japan Hamaoka 5 (1380 MWe),
in Ukraine Khmelnitsky 2 & Rovno 4 (950 MWe each),
in Russia Kalinin 3 (950 MWe) were new connections and
in Canada Bruce 3 (769 MWe) returned.
In UK Chaplecross 1-4 (49 MWe each) closed, as did Lithuania's Ignalina 1 (1185 MWe).
In addition, uprates of older plants totalled 153 MWe.

Climate change action falters
With the Kyoto Protocol stage 1 (to 2012) now coming into effect in mid February, some of those attending the COP-10 negotiations in Buenos Aires in December were expecting to move ahead in deciding on action post-2012 and involving developing countries. However, little progress was made on this and some observers felt that a realignment occurred, from USA versus the world to the world versus EU.

First, developing countries led by China, India and Brazil - together responsible for a quarter of world emissions, more than the USA - made it clear that they would not entertain any discussion on their reducing emissions. Then Italy broke ranks with the EU, saying it would not accept binding commitments beyond 2012, since if the USA and Asian economies would not do so it would be pointless. While the USA (20+% of world emissions) agreed to take part in a meeting in May 2005 to discuss post-2012 possibilities, it was negative about the idea of any binding agreement going forward. Australia however, was positive about a post-2012 agreement.

The EU emissions trading scheme for carbon credits applicable to heavy industry started in January (see European news item), and the EC says that the EU is on track to achieve its pledged Kyoto emission reductions by 2010. At the same time carbon emission trade in the Clean Development Mechanism (CDM) market under the Kyoto Protocol has been strong and amounted to nearly EUR 200 million in 2004 at an average price of nearly EUR 5 per tonne CO2.
New Scientist 20/12/04, AFR 20/12/04, Reuters 21/12/04, AETF Review Dec-Jan 2004-05, FT 26/1/05.



Briefing & mines papers updated in last two months include:

Reactor table
Small nuclear power reactors
Advanced reactors
Waste management in nuclear fuel cycle
Military warheads as source of nuclear fuel
US nuclear power industry
Nuclear power in Korea
Nuclear power in Russia
Canada's U production and nuclear power
Decommissioning
Thorium
Hydrogen economy
Nuclear power plants & earthquakes
Research reactors
Australian research reactors
Australia's electricity


Published Uranium Prices


Ux: 24 January: US$ 21/lb U3O8, (US$ 54.60/kgU)

See also Ux Consulting graphs

World reactor changes
By 1/1/05
Russia: Kalinin-3 950 MWe grid connected
S,Korea: Ulchin-6 960 MWe grid connected
Lithuania: Ignalina-1 1185 MWe shut down permanently


URANIUM INFORMATION CENTRE Ltd. A.B.N. 30 005 503 828

GPO Box 1649N, Melbourne 3001, Australia
phone (03) 9629 7744
fax (03) 9629 7207


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