Carbon Reduction and The Dutch Road Forward

Here’s what the International Energy Agency has to say about carbon reduction ambitions in the Netherlands:

The head of the International Energy Agency urged the Dutch government Monday to expand its nuclear power base, but the country's environment minister said that's not in the energy equation for now.

Nobuo Tanaka, the IEA executive director, said the Netherlands will find it tough to reach its target of slashing carbon emissions 30 percent below 1990 levels within the next dozen years without building more nuclear power stations.

We’ve made the same argument (a lot) about the most efficacious way to achieve carbon reduction. We do wonder why IEA focused on the Dutch. A look at its Web site shows it does reports (for a price) focused on individual countries and how plans shape up versus goals. IEA seems neutral on energy generators, so it isn’t recommending nuclear because that’s what it always does.

Here’s a bit more on where the Dutch are on this issue:

The cabinet has agreed that no new nuclear power plants will be built during its term, although debate about the future of nuclear power was reignited last year as Dutch utility Delta said it would apply for a permit to build a new plant [this would replace a soon-to-be-shuttered plant].

The Dutch has a coalition government with Greens a part of the mix, so that probably explains the official silence – Germany is in a holding pattern with it’s current coalition, too. It may be that this report will find use as encouragement to move forward.

The little Dutch boy. He’s even holding tulips and wearing wooden shoes. It’s not every country that has a collection of recognizable traits that can be merged into horrid tchotchkes.

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

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