UIC NEWSLETTER # 1, 2006

January - February 2006


ISSUE HIGHLIGHTS


Energy policy captive to wishful thinking

The last few years have seen several national energy policy documents attempt to grapple with the need to diminish carbon dioxide emissions, cater for future growth and replace geriatric electricity generation plant. But most have been populist rather than pragmatic or even principled in any intelligent sense, and so we have extravagant projections of what renewables are supposed to contribute, regardless of their intrinsic limitations. Wishful thinking has prevailed over workable solutions.

For instance the UK's 2003 energy White Paper was designed to set policy for decades ahead, and was launched with much fanfare about the target of achieving 60% reduction in carbon emissions by 2050. The priority was to strengthen the contribution of energy efficiency and renewables, with £1 billion per year being poured into the latter to attempt to reach the target of 10% of power by 2012, despite acknowledged uncertain outcome. This was widely seen as a populist policy which ignores a number of practicalities, notably the need for base-load power - continuous, reliable supply on a large scale. The importance of energy security was ignored in complacent reliance on gas.

Recent public opinion polls in UK and elsewhere have shown that most people believe that the way forward is primarily with energy efficiency and renewables. It matters not whether these hopes and wishes are realistic, or even achievable at any price. That has not stopped weak governments from echoing them in policy however.

Environmental groups have been foremost in asserting that the use of renewables, particularly sun and wind, is morally superior to using what is in the Earth's crust, and is also practical on the scale required. Those who wished that to be true have lent their weight to public opinion.

In a recent Eurobarometer survey Attitudes towards Energy, 48% said that they would prefer to meet their needs from solar energy and 31% from wind power, while only12% preferred nuclear power. The issue of practicality was not canvassed, though other surveys show a steadily increasing European public acceptance on nuclear over the last decade, driven by consideration of energy security and greenhouse gas emissions in the context of pragmatic realism. Another Eurobarometer survey shows a marked difference between the small countries with no direct experience of nuclear power and those with a well established nuclear capacity, which generally have a majority in favour of it. A significant finding from this mid 2005 survey was that three times as many EU citizens now agree that a major virtue of nuclear power is its low greenhouse gas emissions (62%, up from 21% in 2002).

Patrick Moore, a founder of Greenpeace, recently spoke out on environmentalist influence on energy policies at a Canadian conference. "It's the environmental movement that is actually a major obstacle to the realistic achievement of carbon dioxide reductions around the world because they oppose all reasonable alternatives (to fossil fuels) including nuclear energy. We need not 440 nuclear reactors, but maybe 5000 Š to really make a dent in (consumption of) fossil fuels." "Greenpeace says we can phase out fossil fuels and nuclear energy and not build any more hydro dams, and do the whole thing with windmills and solar panels. Not possible."

With reference to consultation on the latest version of UK energy policy, the Chemical Industries Association said that the UK needed "a clear and concise energy policy" which "gave nuclear energy full consideration" and "demonstrated realism about the potential offered by renewable energy". It called for "a sensible mix of energy sources, minimizing dependence on imports." On both the potential for renewables and on energy security, the industry is concerned to see UK policy get past the wishful thinking of recent years which has resulted in soaring energy prices and increasingly insecure supplies.

The issue is thus the extent to which individuals in many countries balance their wishful thinking with a sense of what is needed to provide reliably for their energy needs. The recent gas supply situation in Europe has focused attention on the need for realism concerning sources of gas and electricity, and at a geopolitical level, on energy security more broadly.

Regina Leader-Post 19/1/06, Foratom 25/1/06.


USA

Major utility merger
FPL Group and Constellation Energy have agreed to merge, retaining the Constellation name and bringing together 11 reactors at seven sites. This involves over 8200 MWe of nuclear capacity in 45,000 MWe total. The two companies have been purchasers of 3474 MWe of nuclear capacity at four plants since 2001, and continue to look for opportunities. Both are involved with proposals for new nuclear build, through the NuStart consortium. Also Constellation has formed Unistar Nuclear, a joint venture with Areva, to promote the US EPR advanced reactor in USA.
Nucleonics Week 22/12/05.

New Westinghouse reactor gets tick
The US Nuclear Regulatory Commission has granted design certification for the Westinghouse AP1000 nuclear power reactor, a late 3rd generation 1100 MWe design. It joins its smaller predecessor and two other types certified in 1999 and 1997 respectively as the only reactors with this formal approval, though it is significantly more advanced than them - designated Generation 3+. It means that they can be built in the USA subject only to site considerations. Several applications for combined construction-operating licences (COL) are expected to incorporate the design, notably NuStart for Bellefonte in Alabama, Progress Energy for Harris NC and Duke Power.

It represents the culmination of a 1300 man-year and $440 million design and testing program. Overnight capital costs are projected at $1200 per kilowatt and modular design will reduce construction time to 36 months. Its generating costs are expected to be below US$ 3.5 cents/kWh and its has a 60 year operating life.
NRC 30/12/05, Nucleonics Week 5/1/06.

Further US licence extensions
The US Nuclear Regulatory Commission has renewed the licences for Dominion's Millstone 2 & 3 nuclear power reactors in Connecticut, taking their operation to 2035 and 2045 respectively. It also renewed those for Point Beach 1 & 2 reactors for 20 years, to 2030 and 2033. The Nuclear Management Company operates the small Wisconsin plant on behalf of WE Energies. This brings to 39 the total number of US licence renewals so far.
NRC 28/11/05, NucNet news # 201/05.

US reprocessing plans outlined and commended
Under the US Advanced Fuel Cycle Initiative the Argonne National Laboratory is planning an engineering-scale demonstration of the Urex1a process for reprocessing used fuel. This will separate out uranium, transuranic elements (plutonium, neptunium, americium & curium together), and fission products. From the last, technetium, cesium and strontium may be further separated for transmutation. The transuranics will be burned in fast neutron reactors. It is estimated that using this process, the effective capacity of the Yucca Mountain repository could be increased fivefold and much better utilisation of uranium achieved.

Congruent with this the US Nuclear Energy Institute has said that the US nuclear industry needs to change course and plan for recycling used fuel. The objective must be to reduce the long-lived radioactivity arising from used fuel so that in a relatively short time high-level wastes become no more toxic than the original uranium ore. This means recycling and burning all the long-lived actinides, which is most efficiently done in fast neutron reactors such as four of the six generation-IV designs. However, such change of policy must not detract from the need to commission the Yucca Mountain repository, and there is more R&D to do to identify new reprocessing technologies.

The American Nuclear Society has also released a position statement saying that it "believes that the development and deployment of advanced nuclear reactors based on fast-neutron fission technology is important to the sustainability, reliability and security of the world's long-term energy supply." This will enable "extending by a hundred-fold the amount of energy extracted from the same amount of mined uranium". The statement envisages utilising used fuel from conventional reactors and the 1.2 billion tonnes of depleted uranium from enrichment, as well as on-site reprocessing of used fuel from fast reactors. It points out that "virtually all long-lived heavy elements are eliminated during fast reactor operation, leaving a small amount of fission product waste which requires assured isolation from the environment for less than 500 years." The time frame for implementation is about two decades.
NuclearFuel 16/1/06, Platts 12/12/05, ANS Nov 2005.

EUROPE

Ukraine gas dispute chills Europe
Russian gas supplier Gazprom briefly cut off Ukraine's supply of natural gas in a dispute over pricing, when it sought to raise prices fourfold. Europe imports about a quarter of its gas from Russia, and 80% of this transits Ukraine en route from Siberia. EU dependence on Russian gas is expected to increase substantially to three quarters of its needs by 2020, and Gazprom's action has focused attention on the corresponding vulnerability involved for most of Europe - notably Germany, France, Italy and in future, UK - as North Sea reserves decline. Russia has become increasingly explicit about using its energy resources as a foreign policy tool.

Gazprom increased the price to Ukraine - the world's sixth largest consumer of natural gas - from US$ 50 to $230 per 1000m3. This is in line with average prices charged to European customers, and in accord with EU insistence that CIS subsidies be phased out. A condition of Russia's World Trade Organisation accession is that Russian domestic gas prices double by 2010, and other CIS prices from Gazprom are already $110-125, with only Belarus boasting of $47 as a "reward for loyalty". A compromise deal means that Ukraine for the time being pays only half the increase due to trade-off with cheaper Turkmenistan gas. Low gas prices have allowed and entrenched great inefficiencies in use.

When OPEC quadrupled the price of oil in the early 1970s it had a major impact on energy policies in the developed world, including substantial development of nuclear power. Some commentators are suggesting that a similar effect is likely now, making energy security a prime consideration. Following the Russian-Ukrainian gas dispute the EU's Energy Commissioner vowed to make securing energy supplies his priority and said that the EU should consider greater power diversity and ensure a strong internal energy market.
FT 2 & 5/1/05, Australian 3 & 5/1/06, Spectator 4/1/06.

UK energy debate kicks off
The UK government has launched a public consultation, soliciting views on medium and long-term energy policy issues to be considered by its 2006 Energy Review, commissioned in the light of concern about impending energy shortages with corresponding high prices, longer-term security of supply, and the need to tackle climate change more effectively. The 2003 White Paper on energy is looking increasingly inadequate for UK's electricity future, with its reliance on gas and renewables. Gas is becoming unaffordable and imports of it are insecure and uncertain, while renewables deliver little, at high cost.

The review is expected to confirm the need for urgent investment in new base-load capacity, which in the context of UK's Kyoto commitments will inevitably be nuclear. The need for "further options" such as nuclear power to deliver non-carbon base-load power is increasingly obvious. Carbon sequestration in relation to a return to using coal is another option, albeit further out. However, to finance new base-load plant, some form of long-term power purchase agreements will be needed at around 3p/kWh (US 5.3c/kWh), which looks increasingly attractive in the light of present high prices.

Industry sources have pointed out that the UK has the highest gas prices in Europe and the second highest electricity prices after Italy, so manufacturing is increasingly uncompetitive. The Chemical Industries Association, representing UK's most energy-intensive sector, said the country needed "a clear and concise energy policy" which "gave nuclear energy full consideration" and which "does not unilaterally put UK manufacturing out of business."

Meanwhile the Health & Safety Executive has been asked to report to the Energy Review on potential risks associated with new energy developments, and its Nuclear Installations Inspectorate will advise on "the potential for pre-licensing assessments of candidate designs" of new reactors, similar to the rigorous US design certification procedure. This then means that only site considerations need to be assessed in any proposal for a new plant.

A November MORI public opinion poll (N=2035) shows that the main environmental issue of concern to Britons is global warming. While renewables are still seen as the most important sources for the future, 59% of Britons expect nuclear energy to be part of their future supply, though only 41% support construction of new nuclear power plants to maintain this (with 28% opposed to new construction). On energy security, 76% are concerned about increased reliance on imported gas for electricity generation.

A November survey YouGov (N=2041) for Deloitte showed that 62% of Britons would support replacing UK's nuclear capacity along with increased emphasis on renewables, though only 36% (55% male, 19% female) support nuclear on its own. The survey showed a low level of awareness regarding sources of future generation, with 35% expecting the majority of UK power to be from renewables in 15 years time. Only 11% said they would be prepared to pay significantly (15%) more for power to reduce greenhouse gas emissions, though 92% thought the government should do more to find ways to reduce those emissions form power generation. The main public concern with nuclear (52%) related to wastes.

A poll on the UK Institution of Electrical Engineers web site (N=1010) showed 52% support for nuclear power to "plug the energy gap to 2020" plus 26% opting for a balanced mix including nuclear. A corresponding 74% said "nuclear generation is necessary to cut carbon emissions".
FT 30/11/05 & 27/1/06, MORI 1/12/05, Deloitte 2/12/05, Utility Week 16/12/05, IEE, DTI 23/1/06, Platts 23/1/06.

EdF eyes UK and USA for expansion
Electricite de France, the 85% state-owned utility which is the world's largest nuclear operator, has indicated its interest in investing in new nuclear plants in UK and the USA. EdF is already part of the NuStart consortium in USA, which is focused on Westinghouse and GE plants. It is there essentially as observer, and in Europe has a stake in Framatome's EPR, which that company hopes to sell in UK. Framatome ANP sees a market for about 100 of its 1600 MWe EPRs over the next 20 years.
Nucleonics Week 15/12/05.

French eagerness for next generation reactors
The French President has announced that the Atomic Energy Commission (CEA) is to embark upon designing a prototype Generation IV reactor to be operating in 2020, bringing forward the timeline for this by some five years. France has been pursuing three Gen IV technologies: gas-cooled fast reactor, sodium-cooled fast reactor, and very high temperature reactor (gas-cooled). While Areva has been working on the last, the main interest in it has been in the USA, as well as South Africa and China. CEA is likely to focus on the fast reactors on the basis that they will produce less waste and will better exploit uranium resources, including the 220,000 tonnes of depleted uranium and some reprocessed uranium stockpiled in France.

If the CEA embarks on the sodium-cooled design, there is plenty of experience to draw on and they would go straight to a demonstration plant - the main innovation would be substituting gas for water as the intermediate coolant. If the gas-cooled fast reactor is selected, that is entirely new and would require a small prototype as first step - the form of its fuel would need to be unique. Neither would operate at a high enough temperature for hydrogen production, so pursuing either of them would leave the very high temperature R&D to the USA and east Asia. The CEA's current plan is to spend about EUR 40 million per year on Gen IV R&D, about half of this on the gas-cooled design, but the new emphasis will require a considerable increase in budget, even with some foreign involvement.
Nucleonics Week 12/1/06.

New reactor for Lithuania
With involvement of Estonia and Poland, a new nuclear power reactor is to be built at Lithuania's Ignalina plant, site of two large Soviet-era units - one now closed and the other to do so in 2009 at the insistence of the EU.
Nucleonics Week 8/12/05.

Dutch confirm life extension for nuclear plant
The Dutch government has confirmed that EPZ's Borssele nuclear power reactor will be allowed to run until 2033, giving it a 20-year life extension to 60 years. However, under a proposed covenant yet to be approved by parliament, the operator must contribute EUR 250 million to sustainable energy projects - conservation, clean fossil energy and renewables - matched by the same sum from government over the next eight years. The objective is to double the CO2 saving from operation of Borssele. In addition, the atomic energy act will be amended to simplify licensing procedures and issue new plant licences for 40 years, setting the stage for revival of nuclear power in Netherlands.
Nucleonics Week 12/1/06.

Sweden doubles nuclear tax
The Swedish government has almost doubled its special tax on nuclear power from SKR 5514 (EUR 584) to 10,200 per MW thermal per month. It formerly amounted to about EUR 0.3 cents/kWh, this is now apparently over 0.55 cents/kWh, relying on the lower operating costs of Sweden's nuclear power plants in the European environment where carbon costs are starting to affect power prices from fossil fuel plants.
NucNet WNR 23/12/05.

Common EU energy policy proposed
As the EC prepares to outline a common energy strategy to member states, France has put forward a proposal for a common EU energy policy which would integrate nuclear power into a coordinated response to supply and environmental threats. This coincides with energy policy discussions in several EU countries. The French proposal highlights the strategically important role of nuclear energy.
Nucleonics Week 26/1/06.

Russian-Framatome fuel contract
In November, TVEL subsidiary Mashinostroitelny Zavod (machine engineering works - MSZ) and Framatome ANP extended the umbrella fuel supply contract for west European nuclear plants. In particular MSZ was selected as fuel supplier for Swiss plants Gosgen and Beznau to 2016 and 2020 respectively. MSZ has been cooperating with Framatome ANP for more than 10 years and currently supplies fuel to nine nuclear plants in Germany, Switzerland, Sweden and the Netherlands.
TVEL 13/12/05.

ASIA & AFRICA

China starts up new Russian reactor, and works at Lingao
The first Russian-built AES-91 power plant at Jiangsu Tianwan in Liangyungang province has started up. Two units with 1060 MWe VVER reactors are being built under a cooperation agreement between China and Russia's Atomstroyexport at a reported cost of US$ 3.2 billion, China contributing $1.8 billion of this. They incorporate Finnish safety features and Siemens instrumentation and control systems. This unit is expected to be grid connected in January.

Near Shenzhen in Guangdong province work has started on sites of two indigenous (but French-based) CNP-1000 nuclear reactors as phase 2 of the Lingao nuclear power plant. Cost is reported as US$ 1500/kW. The units are expected on line in 2010-11.
AFP 19/12/05, NucNet news # 198/05.

Toshiba to buy Westinghouse
Toshiba has bid almost US$ 5 billion to buy Westinghouse from BNFL, more than doubling the price predicted earlier due to what Toshiba called "the tremendous growth potential" of the business. The US-based nuclear reactor and fuel fabrication company was bought by BNFL in 1998 for $1.2 billion. Its reactor designs derive from early nuclear submarines and equip more than half the world's nuclear power plants. Toshiba's bid won over those from GE and Mitsubishi, though the former is a partner with Toshiba in new Japanese BWR plants, and the latter a partner with Westinghouse in developing new PWR plants and in its bid for new units in China. The sale places Toshiba in a strong position for the future in China. The US Shaw Group is reported to be a partner in the deal, which will reassure US government interests.
FT 24/1/06, Nucleonics Week 26/1/06.

New Japanese reactors
Tohoku's Higashidori-1 nuclear reactor is in commercial operation, the 1067 MWe BWR having been grid connected in March.

Chugoku Electric Power has announced the official start of construction for Shimane unit 3, a 1373 MWe advanced boiling water reactor, though main site works will not start until next December. Commercial operation is scheduled for December 2011.
Ux Weekly 5/12/05, JAIF 22/12/05.

Japan plans reprocessing and MOX use
Japan Nuclear Fuel Ltd plans trial operation of its Rokkasho reprocessing plant through to March 2007, using 430 tonnes of actual used fuel and producing some 2.3 tonnes of reactor-grade plutonium (1.6t fissile Pu). The Federation of Electric Power Companies has announced that nine member companies will use this plutonium as mixed oxide (MOX) fuel from 2012, as soon as JNFL's new MOX plant is able to make it into fuel. The 130 t/yr plant is expected to be completed in 2011. Meanwhile MOX fuel fabricated in Europe from some 40t separated reactor-grade plutonium (25.6t Puf) from Japanese used fuel can be used.
Atoms in Japan 22/12/05 & 10/1/06, Nucleonics Week 19/1/06.

Japanese reactor restarts after 'quake
Tohoku's Onagawa-2 nuclear power reactor has restarted after comprehensive checks following an earthquake on 16 August. All three Onagawa reactors shut down automatically in the Richter 7.2 event. Geotechnical analysis and safety evaluation have proceeded under Japan's Nuclear & Industrial Safety Agency, which approved a report from the company. Tohoku is expected to report on units 1 & 3 soon.
Atoms in Japan 26/12/05 & 10/1/06.

New Pakistan reactor starts construction
First concrete has been poured at the second 300 MWe Chinese-supplied Chashma nuclear reactor in Pakistan. The plant is reported to cost PKR 51.46 billion (US$ 860 million, $350 million of this financed by China) and grid connection is expected in 2011. Like its predecessors, it will be under international safeguards. The Pakistan Atomic Energy Commission has been charged under the country's Energy Security Plan 2005 with bringing 8800 MWe of nuclear capacity on line by 2030, and is planning to construct up to eight further Chinese reactors of 600 MWe each.
APPakistan 28/12/05, Daily Times 29/12/05.

South Korea flags power uprates
Korea Hydro & Nuclear Power Co Ltd (KHNP) has applied for power uprates on Yonggwang units 1 & 2 and Kori units 3 & 4 of 5.0% and 3.5% respectively. The regulatory decision will depend a safety evaluation of design margins in the steam supply system. Periodic safety reviews have been carried out on both plants, and the Korea Institute of Nuclear Safety is still reviewing one of them - a 12-month process. A 15 year licence extension for Kori-1, KHNP's oldest unit, is also envisaged.
Nucleonics Week 5/1/06.

South Korean power reactor for Indonesia
Korea Electric Power Corp. has signed an agreement with Indonesia's PLN power utility to conduct a feasibility study - with Korea Hydro & Nuclear Power Co. - for Indonesia's first nuclear power plant. This will probably be one or more OPR-1000 units, built in South Korea as the Korea Standard Nuclear Plant or KSNP+. The Indonesian government earlier confirmed in principle approval of four 1000 MWe units on the Muria peninsula, 450 km east of Jakarta in central Java, with a view to commissioning in 2016. There is also proposed a small power and desalination plant for Madura, using the S. Korean SMART reactor.
Korea Times 13/12/05.

India joins ITER
India has joined the USA, EU, Russia, Japan, South Korea and China as a full partner in ITER - the EUR 10 billion International Thermonuclear (fusion) Experimental Reactor project being built in France.
NucNet news # 186/05.

New power reactor for Iran
Iran has announced that a new indigenous 360 MWe nuclear power plant is to be built in Khuzistan province, where two Framatome 900 MWe plants were about to be constructed in 1970s. It has also said that bids for two further 1000 MWe units would be invited soon. The long-awaited 950 MWe Bushehr plant, being constructed by Atomstroyexport, is expected to start up this year, with fuel supplied by Russia.
Reuters 5/12/05.

Turkey revives nuclear power plans
The Turkish government is reported to be set to announce plans to build 5000 MWe of nuclear power capacity to come on line in 2012. It will be largely private-financed. Earlier plans were abandoned in 1997.
Reuters 19/12/05.

Rossing mine to continue
After three years study and deliberation Rio Tinto (owning 68.6%) has decided that US$ 112 million will be invested in extending the life of the Rossing uranium mine in Namibia to 2016 and returning its annual output to 4000 t U3O8. Half the expenditure will be on new mine equipment and half on the mill refurbishment.
Rossing 13/12/05.

CANADA

Ontario review affirms nuclear power
A major energy review by the Ontario Power Authority has said that the province needs to spend C$ 83 billion on refurbishing its electricity supply over the next twenty years, and expand the contribution of nuclear power so that its share remains 50%. While renewables and energy efficiency need to play a much increased role also, the emphasis is on reliability. Some C$ 40 billion spent on nuclear plant is envisaged among 24,000 MWe of new and replacement capacity overall, though this is within context of less than 1% annual demand growth. Nuclear is acknowledged as having less environmental impact than gas and operates at lower cost. Investment in new base-load capacity is urgent. The report assumes nuclear construction cost of C$ 2600/kWe giving a levelised cost of 5.2 cents/kWh at 5% discount rate. Public opinion polls show significant support for nuclear power, with 72% in favour of refurbishing old plants and 52% supporting new build.
OPA 9/12/05, Toronto Star 10/12/05, Nucleonics Week 15/12/05.

AUSTRALIA

Australian cash for energy projects
The Australian government has offered A$23 million to ten projects under the Renewable Energy Development Initiative. The largest sum, $5 million, is towards a small demonstration power plant at Geodynamics' Cooper Basin Hot Fractured Rock (HFR) project in South Australia. This Innaminka Power Plant is stage 2 of the HFR project, using hot brine from the granites (at 250°C) 4-5 km beneath the surface.
Macfarlane media release 5/12/05, Geodynamics 5/12/05.

ERA shareholding changes
Following the equity rearrangement announced earlier, almost one third of Energy Resources of Australia shares are now publicly held.
ERA 6/12/05.

INTERNATIONAL

Progress slow at UN Climate Change Conference
The latest UN climate change conference took place in December in Montreal, and highlighted the question of future agreements, both under the Kyoto Protocol (to which the USA and Australia are not signatories), and under the longer-term UN Climate Change Convention.

The Kyoto Parties agreed to start discussions on emissions targets to follow the first compliance period, which ends in 2012. However, no deadline was set for reaching agreement on these future targets. Parties to the Convention also agreed to meetings to discuss future actions, but only after strong caveats were inserted to address US objections. These caveats clarify that it isn't the purpose of these meetings to discuss future emissions targets.

A resolution reaffirmed the Clean Development Mechanism whereby developing countries assist carbon-reducing projects in developing countries, and another resolution moved towards a global emissions trading scheme. It was also resolved to promote carbon capture and sequestration technologies - the focus of AP6 in January.

Overall there was very little progress towards any type of future agreement to address climate change after 2012.

Asia-Pacific Climate Partnership kicks off
The inaugural meeting of the Asia-Pacific Partnership on Clean Development and Climate (AP6) was held in Sydney during January. It draws together Japan, China, India, South Korea, USA and Australia, together accounting for about half the world's CO2 emissions, energy consumption, GDP and population. The group set up eight taskforces to pursue technological means of reducing carbon dioxide emissions in areas such as power generation, aluminium, steel and cleaner use of fossil fuels including geosequestration of carbon dioxide.

The final communique indirectly acknowledged the growing role of renewables and nuclear power but said that "It is critical that we work together to develop, demonstrate and implement cleaner and lower emissions technologies that allow for the continued economic use of fossil fuels while addressing air pollution and greenhouse gas emissions." The USA and Australia have committed some US$ 350 million to AP6 projects over several years.

The AP6 is not promulgating or working within any overall mandatory emission targets. However, for the deployment of any technology to avoid emissions from fossil fuels an economic incentive will be required, which in many cases may mean an international emissions trading scheme or carbon taxes.
Australian 11-13/1/06.

Uranium production to increase
Areva plans to invest up to EUR 600 million to double its uranium production by 2010, probably extending operations to further countries. In 2004 its Cogema subsidiary produced 5317 tU in Canada, Niger & Kazakhstan.
Ux Weekly 5/12/05.

Progress with first pebble bed demo reactors
The Chinese government has approved the primary feasibility study for construction of a 200 MWe high-temperature pebble bed reactor, the HTR-PM. This demonstration unit at Weihei in Shandong province is to pave the way for an 18-module full-scale power plant on the same site, using the steam cycle. China Huaneng Corp., one of China's major generators, is the lead organization involved with 50% share, China Nuclear Engineering & Construction will have a 35% stake and Tsinghua University INET 5%. Projected cost is US$ 375 million and start-up is scheduled for 2010. The HTR-PM rationale is both eventually to replace conventional reactor technology for power, and also to provide for future hydrogen production. It will use 9% enriched fuel (520,000 elements) in an annular core with low power density but high temperature (up to 900°C). Plant life is envisaged as 60 years with 85% load factor. It will have a high level of inherent safety, proved last year in a small experimental version. The licensing process is under way with the National Nuclear Safety Administration.

Meanwhile PBMR Ltd in South Africa has awarded the first contracts for major components of its demonstration power plant - a 165 MWe pebble-bed modular reactor (PBMR) at Koeberg. Mitsubishi Heavy Industries will undertake some work in Japan, but is negotiating with a local manufacturer for future units. Then a EUR 39 million contract for the 2000 tonne pressure boundary containing 12 subsystems in the reactor unit, including the reactor vessel itself, was awarded to Equipos Nucleares SA (ENSA) in Spain for completion in 2009. Much of this fabrication is likely to be in South Africa.
CNNC 2/12/05, Zang Zouyi INET 15/2/05, PBMR 6/12/05, Nucleonics Week 26/1/06.

Environmental awareness high
The latest data - mostly 2005 - from Roy Morgan International shows that Australia and UK lead the USA in environmental consciousness. Australians (89%) and Britons (85%) agree that 'If we don't act now we'll never control our environmental problems' while they disagree that 'Threats to the environment are exaggerated' (73% of Australians, 71% of Britons). These responses were higher than those of Americans (75% & 65% respectively). N=23,500 in Australia, 5300 in UK, 4000 in USA.
Roy Morgan 20/1/06.

WNA New Economics of Nuclear Power report
The World Nuclear Association has had an international expert industry group analysing seven significant economic studies published since 2003, together with recent construction experience, mainly in Asia. A new WNA report from this group - The New Economics of Nuclear Power - describes the studies' premises and parameters, summarises their findings, and assesses their conclusions against the economics of alternatives. Despite variations in the published studies, the new report shows that the economic case for building new nuclear power capacity is now almost universal, without beginning to consider or quantify energy security, price stability or carbon emissions. In passing, the report identifies the need for governments to combine their regulatory and safety oversight with efficient licensing procedures for advanced designs of new plants. It shows that nuclear power does not, over the long term, requires subsidy, and that incentives for transition to clean-energy technologies of any kind should be without discrimination.

The report finds that the increased competitiveness of nuclear power is the result of cost reductions in all aspects of nuclear economics: construction, financing, operations, and waste management and decommissioning. Among the cost-lowering factors are the evolution to standardized reactor designs, shorter construction periods, new financing techniques, more efficient generating technologies, increased capacity factors, and longer plant lifetimes.
WNA 1/12/05.


CONFERENCES

World Nuclear Fuel Cycle 2006, Hong Kong, 3 - 7 April. World Nuclear Association (WNA) and Nuclear Energy Institute (NEI). Contact: WNA. Tel: +44-20-7451-1520; Fax: 44-20-7839-1501 E-mail: wna@world-nuclear.org


Briefing & mines papers updated in last two months include:

Reactor table
Nuclear power in world today
Economics of nuclear power
Safety of nuclear power plants
Energy subsidies and external costs
Safeguards appendix (N.Korea etc.)
Small nuclear power reactors
Advanced reactors
Civil liability for nuclear damage
Fast neutron reactors
Processing used nuclear fuel for recycle
Renewable energy & electricity
Glossary
Nuclear power in USA
Nuclear power in Russia
Nuclear power in Sweden
Nuclear power in Denmark
Nuclear power in UK
Nuclear power in China
Uranium and Nuclear power in Kazakhstan
Nuclear power in Italy (new)
Australia's uranium mines (UIC mines paper)


Published Uranium Prices


23 Jan US$ 37/lb U3O8, US$ 96.00/kgU.

See also Ux Consulting graphs

World reactor changes
USA Palo Verde 1 & 3: uprate each 43 MWe net to 1313 - Nov
Pakistan: Chasma 2 construction start - Dec 2005
Sweden uprates: adjust up 34 MWe - Dec


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

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


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