Skip to main content

Texas at the Forefront of the Nuclear Renaissance

That's a story that's running in today's Houston Chronicle:
The number of nuclear-powered generators in Texas could triple in the next decade with several new projects in the works.

Expansions at the state's two existing plants — Comanche Peak [pictured to left] south of Dallas and the South Texas Project near Bay City — took steps this past week when TXU Energy said it will likely buy two reactors from Mitsubishi for the Dallas-area expansion, and NRG Energy said it will work with a Tokyo utility as an adviser for two reactors at Bay City.

Illinois-based Exelon Energy has also said it is considering sites in South and East Texas for a new two-unit plant, while a private firm in Amarillo hopes to build two new nuclear units.

[...]

The four announced projects in Texas may only be the tip of the iceberg.

TXU has indicated it may build more than just two new reactors and may place them at sites previously planned for the coal plants.

And according to the state's main power grid operator, the Electric Reliability Council of Texas, power companies have expressed interest in hooking up as much as 25,000 megawatts of nuclear-generated power to the grid. That's some 14,000 megawatts more than have been announced.
Our CEO, Skip Bowman, had some thoughts on this issue when he addressed the Houston Forum back in January 2006:
In 2004, South Texas Project and Comanche Peak produced about 11 percent of the state’s electricity.

Replacing the South Texas Project (STP) and Comanche Peak generating capacity with fossil fuel sources would mean an additional 31.6 million tons of carbon dioxide. That’s the equivalent of emissions from six out of every seven cars in the state.

By building emission-free generating capacity such as new nuclear power plants to meet growing electricity demand, we reduce the clean-air compliance costs that otherwise would fall on other types of generating capacity that do produce emissions. Nuclear power plants create headroom underneath emissions caps for the industrial sector and for transportation, and to allow continued economic growth.

To the extent we build new nuclear power plants, we also reduce the demands placed on natural gas supply. This time last year, as many of you know, the Texas Institute for the Advancement of Chemical Technology proposed construction of a new nuclear power plant in the Texas Gulf Coast region. That study was inspired, in part, by the desire to free up natural gas supplies used in the electric sector for hard-pressed industrial users.

The idea deserves your consideration.
Looks like the state was listening. For more, see the WSJ.com Energy Roundup. Related news, here.

Comments

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...