Energy Secretary Bodman on Biofuels

U.S. DOE Secretary Samuel Bodman spoke at DOE's Biomass Conference on April 18. In his prepared remarks the Secretary acknowledged concerns about corn-based ethanol and the importance of developing the "next generation" of ethanol made from biomass products that are outside the food chain:

In all areas of our research and development, the impact on our global environment – including the impact of energy diversification on land and water resources and world food supplies – is an important part of the discussion. And it is an important consideration in our technical research. This has absolutely been the case when it comes to biofuels.

We’ve looked at the research and we’ve concluded that a diverse, sustainable set of biofuels-technologies will measurably improve our energy security and the health of our environment.

But to do this we must develop, produce, deliver and consume biofuels in an intelligent way and with an urgent focus on sustainability.

So, as we pursue diversity in our overall energy mix we must also pursue diversity in our biofuels. This means moving away gradually from ethanol produced from food stocks like corn.

Let me be clear: I am not minimizing the importance of ethanol made from corn - it is critical to our energy security and America’s farmers make an important contribution to our energy security.

But what I am saying is that we need to develop and deploy the next generation of ethanol - ethanol and other products made from biomass products that are outside the food chain.

In my view, this means cellulosic fuels made from agricultural waste products and crops like switchgrass, which can be grown and regenerated on less desirable lands.

The Wall Street Journal's Environmental Capital blog describes Secretary Bodman's remarks as "astride the fence", midway between the view of some U.N. officials that producing biofuels is a "crime against humanity" and the view of Brazilian President Luiz Inacio Lula da Silva that denying the developing world alternative fuels would be the real crime.

From our point of view, Secretary Bodman is right to focus on diversity in energy supply and to recognize that energy and environmental policies are inextricably linked. The Wall Street Journal's Environmental Capital blog reminds us that both are also linked to economic policy. That's why we favor producing copious amounts of reliable baseload electricity from an inedible, incombustible rock - uranium.

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...

NEI Nuclear Notes

Search This Blog