AUA NEWSLETTER # 4, 2007

ISSUE HIGHLIGHTS

• Areva plans new US enrichment plant
• US weapons uranium released for fuel bank
• Four applicants for UK reactor design approval.
• Ten bidders for 49% stake in Bulgarian plant
• Third proposal for 6th Finland reactor
• Japan earthquake shuts reactors
• Cameco steps more fully into Kazakhstan
• Canada commits to waste plan
• Alternative treatment strategy for Olympic Dam
• Australian emissions trading policy announced
• Climate change resolution marks wider consensus
• USA - Russian cooperation agreement

Russia sets course for major nuclear expansion

In September 2006 Russia's federal atomic energy agency Rosatom announced a target of nuclear power providing 23% of electricity by 2020, up from 16% now. This would mean commissioning some 31 GWe of new plant to give about 44,000 MWe of nuclear capacity then after shutting down a few old plants.

Then in October Russia formally adopted a US$ 55 billion nuclear energy development program, with $26 billion of this to 2015 coming from the federal budget. The Minister of Finance strongly supported the program to increase nuclear share to 18.6% of total by 2015, hence improving energy security as well as promoting exports of nuclear power technology. After 2015 all funding for the accelerated expansion will be from Rosatom revenues.

Apart from completing units under construction there would be three or four standard third-generation VVER reactors built: at Leningrad (two units as stage 2) and Novovoronezh (unit 6 & 7) to be commissioned 2012-13. The first pair of units at each site is expected to cost US$ 3.0 - 3.7 billion. This leads to an accelerating program of building from 2009 (apart from export plants) through to 2020. By 2015 ten new reactors totalling at least 9.8 GWe should be operating.

In April 2007 the government approved in principle a construction program to 2020 for all electricity-generating plants, including nuclear. It is designed to reduce dependence on gas and envisages starting up one nuclear unit per year from 2009, two from 2012, three from 2015 and four per year from 2016. Present nuclear capacity is to increase at least 2.3 times by 2020. In respect to units identified in the April announcement, the picture now is:

However, after 2015 this list is less than the target of four new units per year. South Urals, Kalinin and Tomsk were mentioned as being "among potential new sites." This may be clarified in September. On the basis of the above figures we have listed those units to Kursk II-2 and Leningrad II-4 as planned, and the balance of 18 units - total 21,600 MWe to 2020 - as proposed.

A construction contract for Novovoronezh phase II was signed with AtomEnergoProekt in June. Unit 1 of this (unit 6 at the site) is now under construction and is expected to be commissioned in 2012, with unit 2 following a year later at a total cost of US$ 5 billion for 2136 MWe net. These are the first of the new 1200 MWe class reactors which are to become standard. Novovoronezh is on one of the main hubs of the Russian grid.

UES, which controls Russia's electricity supply, is reported to support construction of new nuclear plants in the regions of Yaroslavl, Chelyabinsk (South Urals) and Vladimir, with two to four units at each.

A revised draft General Scheme of Power Generators Deployment until 2020 is to be available by September 2007 and submitted to the government for approval of US$ 21.6 billion involved.

At the same time as these plans were being firmed up, the creation of a single vertically-integrated state holding company for Russia's nuclear power sector has proceeded, separate from the military complex. The corporation - called AtomEnergoProm (AEP) - was formally established on 7 July. It will include uranium production, engineering, design, reactor construction, power generation and research institutes in its several branches, but not used fuel reprocessing or disposal facilities for the time being. The decree specifies nuclear materials which may be owned exclusively by the state, lists Russian legal entities allowed to possess nuclear materials and facilities, existing joint stock companies to be incorporated into the AEP, and federal unitary enterprises to be corporatized first and incorporated into the AEP at a later stage. The holding company is to be set up by the end of 2007. Exclusive state ownership of nuclear materials has been seen as a barrier to competitiveness and other Russian corporate entities will now be allowed to hold civil-grade nuclear materials, under state control.

Entities from AEP itself down to various third-level subsidiaries will be joint stock companies eventually. Public investment in the bottom level operations is envisaged, and the joint venture between Alstom and Atomenergomash to provide large turbines and generators is cited as an example. The general idea is to create a world-class corporate entity which will match any western vertically-integrated nuclear company.

USA

US reactor returns to service
Tennessee Valley Authority's 1155 MWe. Browns Ferry-1 reactor, which started up again in May following a 5-year refurbishment program, has been connected to the grid and run at full power. It had been idle since 1985. TVA is now studying the possible completion its half-built 1167 MWe Watts Bar-2 reactor, suspended in 1985, which could be on line about 2013.
NEI 15/6/07.

Areva plans new US enrichment plant
Areva NC has told the US Nuclear Regulatory Commission that it plans to build a 3 million SWU/year enrichment plant in the USA, to be fully operational in 2017. This $2 billion plant would have the same Urenco centrifuge technology as at Areva's new French plant, under similar licence arrangements from Enrichment Technology Company, the joint venture between Urenco and Areva. Site selection is expected later this year and a licence application in mid 2008, with a US partner. The USA's 104 operating reactors require 13.2 million SWU per year, almost half of which currently comes from Russian high-enriched uranium, the rest from an obsolete US plant. Two other new enrichment plants are under construction in the USA.
NRC 21/6/07, WNN 29/6/07.

US weapons uranium released for fuel bank
The US Department of Energy's National Nuclear Security Administration has awarded contracts to Wesdyne International and Nuclear Fuel Services to downblend 17.4 tonnes of high-enriched uranium from dismantled warheads. NFS will dilute the material in Tennessee to yield some 290 tonnes of low-enriched uranium (4.95% U-235) by 2010. Wesdyne, the prime contractor, will then store the LEU at the Westinghouse fuel fabrication plant in South Carolina to be available for the Reliable Fuel Supply program. The fuel will be available for use in civilian reactors by nations in good standing with the International Atomic Energy Agency that have good nonproliferation credentials and are not pursuing uranium enrichment and reprocessing technologies. The fuel - worth some $1 billion at current prices - would be sold at the current market price. To cover the cost of the project, Wesdyne will sell a small part of the LEU on the market over a three to four year period.
NNSA 29/6/07.

Areva and Mitsubishi lead US push
Areva and Mitsubishi Heavy Industries are leading a consortium which has bid to construct major elements of the new technology for the Global Nuclear Energy Partnership (GNEP). Others involved are Japan Nuclear Fuels, Washington Group International, BWX Technologies and Batelle. Areva would focus on the Consolidated Fuel Treatment Centre - an advanced reprocessing plant, and Mitsubishi the fast neutron reactor which will burn actinides with the uranium and plutonium - the Advanced Recycling Reactor. In this connection the company has also set up Mitsubishi FBR Systems (MFBR).
WNN 25/6/07.

EUROPE

Four applicants for UK reactor design approval.
As soon as the Energy white paper was published, Westinghouse applied to the UK's Nuclear Installations Inspectorate for generic design assessment (GDA, or pre-licensing) of its AP1000 reactor design, based on its 2005 US design certification.

Areva NP, in conjunction with EdF, then applied for GDA of its 1600 MWe EPR design by the UK regulator. Areva will also involve five other European utilities interested in building it in UK: British Energy, E.On, Iberdrola, RWE npower and Suez. This will mean that all six utilities will be up to speed and able to support any site licence application for EPR units, though only EdF will share costs of the GDA with Areva. EdF has said that it wants to build several EPR units in the UK. The EPR received French design approval in 2004.

GE-Hitachi Nuclear Energy has also applied for GDA of its ESBWR type, supported by Iberdrola, RWE npower and BE. Atomic Energy of Canada Ltd has also applied for GDA for its ACR1000 design.

The assessments will be done by experts belonging to three nuclear regulatory authorities - the Nuclear Installations Inspectorate, the Office for Civil Nuclear Security, and the Environment Agency. Each GDA will cost up to £10 million and take some three years.

Separately, British Energy has said that it is conducting its own review of reactor designs from the four vendors which have submitted documentation to the regulator. It controls many of the likely sites for new plants.
Nucleonics Week 31/5/07, Areva 20/6/07, BE 19/6/07, Platts 21/6/07.

UK government sells down British Energy
The UK government has sold 25% of British Energy, reducing its share (acquired in the major restructuring 2003-5) from 64% to 39%. The £2.08 billion proceeds go into the Nuclear Liabilities Fund to be applied to future decommissioning of BE's eight nuclear plants. Further share sales down to about a 30% holding are envisaged.
DTI 30/5/07, FT, Guardian 31/5/07, FT 2/6/07.

UK contemplates using recycled resources
For some years the UK has had an ambivalent attitude to the plutonium resulting from reprocessing its own used fuel, not to mention the depleted uranium arising from enrichment and the reprocessed uranium. A new report for the Nuclear Decommissioning Authority (NDA) focuses on the 100 tonnes of plutonium and 60,000 tonnes reprocessed and depleted uranium which will be available in 2012. Three options are considered: treating the materials as wastes destined for deep geological disposal, storing them long-term, or using them as fuel (or selling them to others for this purpose). In the last case, the energy content is enough to run 3 GWe of new PWR reactors for 60 years, or 12 GWe of fast reactors for 700 years.
NDA 26/6/07.

Ten bidders for 49% stake in Bulgarian plant
Ten companies including most major European utilities bid for a 49% stake in the Belene nuclear power plant in Bulgaria. Six of these were shortlisted. Atomstroyexport is contracted to build two 1000 MWe AES-92 reactors there, to come on line in 2014-15.
WNN 7 & 20/6/07.

Third proposal for 6th Finland reactor
A consortium of industrial and energy companies has announced plans to establish a joint venture company, Fennovoima Oy, to construct a new nuclear power plant in Finland. The group consists of metals, mining and smelting companies, regional energy utilities and major utility E.On Suomi which is leading the project. Fennovoima aims to construct a new 1000-1800 MWe nuclear power plant, to start operating between 2016 and 2018, which will provide electricity for its owners at production cost. Fennovoima will immediately proceed with site selection, then an environmental impact assessment (EIA) which will prepare the way for government approval.
WNN 6/6/07.

Sweden nuclear plant uprate
Vattenfall have announced a 40 MWe uprate, to 1006 MWe, of Ringhals unit 4, following replacement of its low pressure turbines.
Vattenfall 19/7/07.

Belgian and German phase-outs challenged
A major report commissioned by the Belgian government to guide energy policy to 2030 has backed retaining nuclear power as an economic and low-carbon source of base-load electricity. Belgium's Energy Challenges towards 2030 by the Commission on Energy said that continuing the current policy would lead to doubling of electricity prices, greatly diminish the country's potential for reducing carbon dioxide emissions and lead to import dependency. It said that Belgium must scrap its policy of phasing out nuclear power.

Earlier, the OECD International Energy Agency had warned that Germany's decision to phase out nuclear power would limit its full potential to reduce carbon emissions "without a doubt." The agency urged the German government to reconsider the policy in the light of "adverse consequences."
WNN 4/6/07, Foratom 25/6/07.

Central Europe uranium from coal ash
Australia's WildHorse Energy has signed an agreement with Sparton Resources Inc to investigate producing uranium from coal ash in Europe, starting with some prospective material containing 75-125 ppmU. The coal ash project is linked with WildHorse's exploration efforts in SW Poland, in the Sudetes Mountains bordering Czech Republic, where several Soviet uranium mines operated.
Wildhorse 22 & 25/5/07.

EAST ASIA

Japan earthquake shuts reactors
The Richter 6.8 earthquake near Niigata in northwest Japan on July 16 caused four Kashiwazaki Kariwa nuclear power reactors close to the epicentre automatically to shut down safely. This is as they are designed to do at a ground acceleration at less than half of the "keep operating" design basis for each reactor. Three other units at the plant were not operating at the time. All will be checked for damage before returning to service. Some 1.2 cubic metres of water containing radioactivity equivalent to three household smoke detectors (and well within regulatory limits) was spilled from a fuel storage pool and drained away. Oil from an electrical transformer at the plant caught fire and was not extinguished for two hours. In the city, ten people were killed and there was major damage to houses and infrastructure.

At this stage the most notable feature of the event has been the media attention implying significant radiation leaks and damage, of which there has been no evidence, and corresponding local government nervousness.
WNN 16 & 18/7/07, Nucleonics Week 19/7/07.

China weighs in on carbon emissions and raises nuclear target
China's authoritative National Development and Reform Commission in a policy report has targeted a 20% reduction in energy intensity per unit of GDP and said China will move to increased use of clean and low-carbon energy sources. However, the main priority remains economic development and NDRC says that the primary responsibility for reducing greenhouse gas emissions lies with the developed nations which have been responsible for most of the historic emissions. One international report said that China had now overtaken the USA in carbon emissions.

China will intensify its promotion of nuclear power as well as focusing on renewable energy (including large hydro) and utilization of coal bed methane. Earlier NDRC announced that its target for nuclear generation capacity in 2030 is 120-160 GWe, up from 40 GWe target in 2020 (and 8.5 GWe today). Present world total is 370 GWe.
Kyodo News 27/5/07, NDRC June 07.

Thailand commits to nuclear power
Following a feasibility study, Thailand's Energy Minister has announced that to avoid undue reliance on gas, the Electricity Generating Authority of Thailand will proceed with plans to build a 4000 MWe nuclear power plant. Construction is to commence in 2015 and operation from 2020. The capital cost is expected to be US$ 6 billion and electricity cost about USD 6 cents/kWh, slightly less than from coal.
Xinhua 11/6/07, WNN 11/6/07.

North Korea shuts down Yongbyon reactor
Responding to a long series of negotiations and political pressure, North Korea has shut down its Yongbyon plutonium-producing reactor. After a four year absence, a UN International Atomic Energy Agency (IAEA) team was able to verify the event and in addition that other nuclear facilities at the site are also closed, notably the reprocessing plant ("Radiochemical Laboratory") and fuel fabrication plant. These have been sealed and will be subject to ongoing monitoring by IAEA. The second phase of measures under the February agreement will involve establishing a full inventory of nuclear materials and actually disabling the offending plants. Phase 3 is when North Korea hands over fissile materials and weapons gear. There remains a question about uranium enrichment capacity.

The Yongbyon reactor is a 25 MWt Russian "experimental reactor" which started up about 1985 and has been used for producing weapons plutonium. North Korea had been largely uncooperative in relation to its international non-proliferation obligations since it was called to account in 1992. The recent developments are "an important step in the right direction but only the first in a long journey", according to IAEA.

Meanwhile the IAEA reached agreement with Iran about inspecting its 40 MWt heavy water reactor, under construction at Arak and due for completion about 2009. It also appears to be a plutonium production unit.
IAEA 13 & 18/7/07, Reuters 13/7/07.

CENTRAL/SOUTH ASIA, AFRICA, S. AMERICA

Cameco steps more fully into Kazakhstan
Canada's Cameco has signed an agreement with Kazatomprom to investigate setting up a uranium conversion plant, using its technology, and also increasing uranium production at its 60% owned Inkai mine.
Cameco 28/5/07.

India opens new mine and mill
A new uranium mine at Banduhurang in Jharkand state has been opened by Uranium Corporation of India Ltd, and also a new mill at Turamdih, which more than doubles processing capacity in the region.
WNN 26/6/07.

South Africa moves to build new nuclear plants
The Eskom board has approved investigating construction of up to 20 GWe of new nuclear capacity by 2027, starting with a firm plan for 4 GWe of conventional capacity to be built from 2009-10, with the first unit commissioned in 2016. The environmental assessment process is now under way, considering five sites, and selection of technology will follow - Areva and Westinghouse are likely favourites.
Eskom 30/5/07

Brazil confirms renewed nuclear effort
Brazil's president has confirmed the earlier Energy Policy Council recommendation to complete the 1245 MWe Angra-3 nuclear power plant. However, at this stage it is only making available $540 million over eight years towards the $1.8 billion project. About 70% of the equipment is on site, but construction has not started.
WNN 11/7/07.

CANADA

Canada commits to waste plan
The Canadian government has accepted the 2005 recommendation of its Nuclear Waste Management Organisation (NWMO) that the country's used nuclear fuel should be disposed of in a deep geological repository, retrievably, after storage at reactor sites. Earlier this year NWMO said that the repository would probably be in a uranium mining or nuclear power province and host localities would need to volunteer for the role. The site selection process will now get under way. At this stage some 36,000 tonnes of used fuel has accumulated, mostly at reactor sites, along with funding of almost C$ 1 billion from utilities.
Nuclear Canada 18/6/07.

AUSTRALIA

BHP Billiton floats alternative treatment strategy for Olympic Dam
BHP Billiton, in the process of evaluating a A$5 billion plus proposal to expand the Olympic Dam (OD) operation, has floated an alternative treatment strategy. This would involve exporting copper concentrate rather than refined copper, and hence some uranium contained in it.

Because the OD ore contains copper, uranium, silver and gold in close association, the common procedure of simply selling a copper concentrate with precious metals has not been viable, since some of the uranium would be in it, creating both processing and safeguards complications for the smelter operator. Most of the uranium is removed at the flotation stage when the copper sulfide is separated from the remainder of the ore, which is then tailings and the main uranium recovery is from acid leaching of these tailings. Secondary uranium recovery is from acid leaching the copper concentrate, which then goes on to be smelted, containing about 45% copper and 0.01 to 0.15% uranium. At present smelting is done at OD, followed by electro refining, and the further traces of uranium are recovered at these stages.

The new proposal being considered would export the copper concentrate with enough uranium still present to require the application of safeguards, so that it was all accounted for. Hence smelting could only be undertaken in one of 36 countries with which Australia has a bilateral safeguards agreement, plus the heavy industry infrastructure required. China has been mentioned, but Japan and South Korea might also be candidates.

If all the copper from the expanded OD operation were exported as concentrate, an average of 1.2 million tonnes per year would be involved, containing up to 2000 tonnes of uranium. The major part of the uranium - about 13,000 t/yr, would be recovered and processed as at present. The alternative strategy for the expanded production from OD would greatly diminish the investment cost of the expansion since smelting and refining for the copper increment would not be required. The infrastructure needed to operate it - notably electricity - would also be less.
Australian 12 & 13/7/07.

Australian proposal for enrichment plant
A new company, Nuclear Fuel Australia Limited (NFAL), has been set up to undertake a feasibility study for a multinational uranium enrichment plant in Australia. The proposal envisages a 3 million SWU per year plant using Urenco centrifuge technology, and an associated conversion plant. Urenco's National Enrichment Facility (NEF) under construction in New Mexico, USA, is the "reference model" for the plant. NFAL intends using all publicly-available information on the NEF, including environmental impact assessment and the US Nuclear Regulatory Commission's own environmental report. Urenco supports the NFAL preliminary feasibility study over the next year, but without commitment. A detailed feasibility study involving site selection, environmental assessment and regulatory approval would follow. NFAL's final objective is to obtain government and technology suppliers' approvals to construct the project, including a conversion plant.

It is envisaged to start construction in 2010 and reach full capacity in 2015. NFAL is essentially repeating an exercise undertaken in 1982 by an industry consortium, the Uranium Enrichment Group of Australia which was aborted after a change in government.

The 2006 Uranium Mining, Processing and Nuclear Energy Review identified opportunities but was sceptical of value-adding conversion and enrichment developments for Australia's exported uranium - about 20% of world supply. It referred to "the high barriers to entry and the large technological, economic and political investments required" and the need to remove legal and regulatory prohibitions "to enable normal commercial decision-making." The 2006 House of Representatives standing committee report supported the establishment of such facilities on a multinational basis.
NFAL 14/6/07 & May briefing paper.

Aboriginal council nominates land for wastes
Australia's Northern Land Council, an elected Aboriginal body in the Northern Territory, with the Ngapa clan who are the traditional owners, have nominated the Muckaty pastoral holding as a potential site for the national radioactive waste facility. If the site is suitable the traditional owners will sign over 1.5 square kilometres for a long lease and receive A$ 12 million in benefits. A low-level waste repository and an intermediate-level waste store are planned, to open in 2011.
DEST 25/5/07.

Australian emissions trading policy announced
The recent emissions trading taskforce report said that Australia cannot afford to wait upon a global emissions trading regime and should devise its own so as to avoid the shortcomings of present schemes and also to articulate with other schemes internationally. Both emission reduction targets and carbon price should be low initially and ramp up. In endorsing the report the Prime Minister said that "Australia will move to implement a comprehensive cap and trade emissions trading scheme no later than 2012." This will be "more comprehensive, more rigorously grounded in economics and with better governance than anything in Europe" - and also designed to appeal to developing nations.
ETT Report 1/6/07, Australian 2 & 6/6/07, PM APEC speech 6/6/07.

INTERNATIONAL

G8 climate change resolution marks wider consensus
With stronger language than previous years and the prior support of the USA, the 2007 G8 Declaration appears to set a new course of action under the UN's Framework Convention on Climate Change (FCCC). This will prospectively involve countries currently outside the emission constraints under the Kyoto Protocol, and will build on national and regional agreements and policy initiatives in the lead up to December's UNFCCC gathering in Indonesia. See also attached supplement.

USA - Russian cooperation agreement
The USA and Russia, having each made strong explicit commitments to the future of nuclear power in their own economies, have signed a significant bilateral nuclear energy cooperation agreement which expresses a robust approach to leading global nuclear energy development. This builds on initiatives in each country over the last two years to strengthen non-proliferation measures while enhancing nuclear power developments in other countries, and takes further a preliminary agreement reached at the G8 summit last year. The list of objectives concludes with "Providing nuclear fuel services, including taking steps to ensure that the commercial nuclear fuel market remains stable and that states are assured of reliable access to nuclear fuel and fuel services for the lifetime of reactors, including through establishment of international nuclear fuel cycle centres Š. including uranium enrichment, under IAEA safeguards; and: Supporting negotiation of long-term contracts for power reactors and research reactors, including assured supply of fuel and arrangements for management of spent fuel."

Rosatom's director said that the agreement when it enters into force would enable Russia to gain direct access not only to the US market but also to other countries under US influence and be able to trade equipment and fissile materials (under safeguards) more widely.
WNN 3/7/07, Nuclear.Ru 4/7/07.

IAEA pursues multilateral fuel vision
A new IAEA report on a multilateral framework for nuclear energy presents a range of options that seek to guarantee supplies of nuclear fuel while minimizing proliferation risks. It addresses proposals put forward over the past two years by various States and institutions. These include proposals for creation of an actual or virtual reserve fuel bank under IAEA auspices, for conversion of national facilities into international enrichment centres and for construction of new multinational enrichment facilities under IAEA control. All this would need to be approached gradually and without infringing the rights of member states, though with a view to limiting future enrichment and reprocessing to multilateral operations.
IAEA 15/6/07.

Hopes high for US-India agreement
After nearly two years of negotiation as well as US legislation on the issue, finalizing the agreement on US-India nuclear energy cooperation seems near. A key implementation agreement reached on 20 July now needs to be reviewed by both governments and then approved by the 45-nation Nuclear Suppliers Group. This could then give India de facto status equivalent to that of a nuclear weapons state under the Nuclear Non-Proliferation Treaty, so on a similar basis to China. A major sticking point was India's insistence on being allowed to reprocess used fuel, which is fundamental to its nuclear energy strategy as it develops a fuel cycle to utilize thorium as a fuel.
Herald-Sun 21/7/07, FT 22/7/07

Kazatomprom to buy 10% of Westinghouse
Agreement on the sale of 10% of Westinghouse to Kazatomprom is reported to be close, with a price of $486 million being quoted. Toshiba bought the company from BNFL for $5.4 billion early in 2006, and the Shaw Group then took 20% and IHI Corp. 3%. Toshiba originally envisaged holding only 51%, and this deal would reduce its holding to 67%. The new ownership would strengthen the company's upstream links for fuel supplies, enhancing its marketing of nuclear reactors (the vendor usually supplies the first core for a new reactor, and ongoing fuel services may be offered in addition). It would also bring Kazatomprom more fully into the industry mainstream, with fuel fabrication in particular. A bilateral nuclear cooperation agreement between Kazakhstan and Japan is under negotiation, following on from less formal agreements signed in April.
AFP 7/7/07, Nucleonics Week 12/7/07.

Utilities swing towards nuclear
PricewaterhouseCoopers' latest annual survey of 114 utilities in 44 countries "reveals a complete shift in the extent to which energy efficiency, renewables and nuclear power are at the top of company agendas." Last year only 19% were looking towards nuclear power, but now 45% are. For wind, the change is from 17% to 48%. However, "economic signals and incentives will be critical for utility companies to make a big shift. An effective signalling of carbon prices will need to exist across all regions."
PWC 14/6/07.

Increased nuclear power inevitable
The executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), said that he had never seen a credible scenario for reducing emissions that did not include nuclear energy. A few days later the US Deputy Energy Secretary said that USA should work towards "a world where nuclear power becomes the primary global source of electricity." He added that "no person can be serious about climate change without being serious about greatly expanding nuclear power."

The chair of a World Energy Council (WEC) Study Group and President Emeritus of the Electric Power Research Institute (EPRI) said that there was no way the world would combat climate change without "a strong dose of nuclear power." He said that the technologies were available to address issues of waste management and proliferation, and governments must get on with the job of developing nuclear power so that future generations can make use of it.

The WEC Energy and Climate Change report concluded that "all governments should give serious consideration to the potential of nuclear power for reducing greenhouse gas emissions" since countries with high proportions of nuclear power had greenhouse gas emissions much lower than comparable nations with less or no nuclear contribution. As an emissions-free energy source capable of producing electricity on a large scale, the report considered nuclear energy a prime means of achieving CO2 emissions stabilisation.
WNN 21/6/07, Platts 26/6/07.

GE-Hitachi alliance implemented
The first and major part of the global realignment between GE Energy and Hitachi Power Systems came into effect in June with the launching of GE-Hitachi Nuclear Energy. Led by GE's current nuclear executives, it is 60% owned by GE and 40% by Hitachi and will operate worldwide outside Japan.

The second half of the alliance, covering operations within Japan, commenced in July as Hitachi-GE Nuclear Energy. It is 80% Hitachi and 20% GE and is led by Hitachi's nuclear team. GE and Hitachi have collaborated closely for 40 years and jointly developed the Advanced Boiling Water Reactor, the first Generation III design to come into operation.
WNN 5/6 & 20/7/07.

Uranium One buys Energy Metals
Continuing its acquisition momentum, Canada's sxr Uranium One has agreed with Energy Metals Corp of USA to take it over in a US$ 1.5 billion deal, giving it access to significant US uranium assets. In February Uranium One bought UrAsia for US$ 3.1 billion, opening up major Kazakh interests.
Uranium One 4/6/07.

Areva bids for Uramin
Areva NC has bid over US$ 2.5 billion in cash for UraMin Inc which it says has 92,000 tonnes of identified uranium resources at three deposits in Africa. It anticipates reaching 7000 tU/yr production from them by 2012. The UraMin board has recommended acceptance of the bid.
WNN 18/6/07.

Panel:

Emerging world consensus on countering climate change

Leaders of G8 developed countries meeting in Germany agreed in stronger language then previous years to address climate change as part of "resolute and concerted international action Š urgently needed in order to reduce global greenhouse gas emissions and increase energy security." "We commit ourselves to Š the further development of the international regime to combat climate change, especially in the run-up to the UN Climate Change Conference in Indonesia at the end of this year."

In the light of recent IPCC reports, "We are Š committed to taking strong and early action to tackle climate change in order to stabilize greenhouse gas concentrations at a level that would prevent dangerous anthropogenic interference with the climate system. Taking into account the scientific knowledge as represented in the recent IPCC reports, global greenhouse gas emissions must stop rising, followed by substantial global emission reductions. In setting a global goal for emissions reductions Š involving all major emitters, we will consider seriously the decisions made by the European Union, Canada and Japan which include at least a halving of global emissions by 2050. We commit to achieving these goals and invite the major emerging economies to join us in this endeavour.

"We reaffirm, as G8 leaders, our responsibility to act." While developed economies should lead, their efforts "will not be sufficient" and the emerging economies with rapidly increasing emissions need to participate "by reducing the carbon intensity of their economic development."

"We acknowledge that the UN climate process is the appropriate forum for negotiating future global action on climate change. We are committed to moving forward in that forum and call on all parties to actively and constructively participate in the UN Climate Change Conference in Indonesia in December 2007 with a view to achieving a comprehensive post 2012 agreement (post Kyoto-agreement) that should include all major emitters. To address the urgent challenge of climate change, it is vital that major economies that use the most energy and generate the majority of greenhouse gas emissions agree on a detailed contribution for a new global framework by the end of 2008 which would contribute to a global agreement under the UNFCCC by 2009. We therefore reiterate the need to engage major emitting economies on how best to address the challenge of climate change" with "long term strategies."

Having stood back from the Kyoto process, this is the first time since inception of that process that the USA has credibly accepted an international priority on limiting carbon emissions. While no targets have been set, and US commitment is contingent upon China and probably India signing on to reductions, the resolution is a very positive preliminary to the December UNFCCC meeting which will attempt to craft a post-2012 successor to the Kyoto Protocol.

In a clear implicit nod to nuclear energy: "Technology is a key to mastering climate change as well as enhancing energy security. We have urgently to develop, deploy and foster the use of sustainable, less carbon intensive, clean energy and climate-friendly technologies in all areas of energy production and use" - including "in emerging and developing economies." Later paragraphs note various international fuel cycle and nuclear technology initiatives and reiterate the importance of "safety, security and non-proliferation in using nuclear power."

Almost coincident with the changed US attitude towards emission reduction, Australia - also not ratified Kyoto - announced that it would bring in a cap and trade emissions trading scheme no later than 2012, with low targets initially but ramping up in line with international targets - hence probably halving emissions by 2050. China has announced a policy of 20% reduction in energy intensity of GDP and a move to more clean and low-carbon energy sources. These three countries, with India, Japan and South Korea are members of the Asia-Pacific Partnership (AP6) set up in 2005 to address climate change, with an emphasis on technology rather than targets. Another international forum focusing on the issue is the Asia-Pacific Economic Cooperation grouping, with the next leaders' meeting hosted by Australia in September. This means that there is for the first time an emerging move from those countries outside of the Kyoto process to take serious action on climate change and join whatever post-2012 international arrangement is set up.

Conference:

Reactor table
Nuclear power in world today
Economics of nuclear power
World energy needs and nuclear power
World uranium mining
Safeguards to prevent proliferation
Nuclear plants and earthquakes
World uranium mining
Nuclear weapons as source of fuel
Cooperation in nuclear
Decommissioning nuclear facilities
Processing used nuclear fuel for recycle
Advanced reactors
Radioisotopes in medicine
The nuclear debate
Renewable energy & electricity
Australia's electricity
Country papers:
Africa,
Australia,
Belgium,
Bulgaria,
California,
Canada,
China,
Finland,
India,
Italy,
Japan,
Lithuania,
Namibia,
Niger & Gabon,
Russia,
Slovenia (new),
South Africa,
UK,
Ukraine,
USA,
Emerging nuclear countries
Uranium exploration in Australia (AUA mines paper)

Published Uranium Prices

See also Ux Consulting graphs

World reactor changes in last two months:
US: Browns ferry-1 grid conn 1155 MWe gross
France: construction start Flamanville EPR 1630 MWe
Russia: Novovoronezh-6 1200 MWe start const
Sweden: Ringhals 4 uprate of 40 MWe

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