America Technology Gets Ready to Go Big Again with New Nuclear Projects

I hear it all the time lately.

“What’s happening to American technology? Are we losing our edge?”

No more space shuttle. Steve Jobs logging off for good. The next generation space telescope on the chopping block.

So, it was with no small satisfaction last week that I listened into an NRC hearing on combined construction and operating license for new reactors at the V.C. Summer site in South Carolina. Perhaps the best bit was Stephen Byrne, executive vice president of South Carolina Electricity and Gas, explaining why a utility executive would opt to build a new nuclear power plant.

“We choose nuclear over other energy alternatives for four main reasons. First, the need for baseload power. The new units will help meet state regulatory reserve margin requirements. Second, cost. Nuclear is competitive with other baseload options when evaluated over its 40-year design life. Third is fuel diversity, adding units 2 and 3 [at V.C. Summer] will increase the share of nuclear in our fuel portfolio from approximately 11 percent to approximately 30 percent…Fourth is its low greenhouse gas emissions.”

But more than that, it was nice knowing that, after a 30-year break, America is (pending final NRC approval) going to be building a nuclear power plant again.

Think about it. Upwards of 1,000 megawatts of generating capacity all produced with a small amount of uranium. In a facility with a relatively small physical footprint, especially compared to the equivalent space renewables would use. (One of the things that struck me about my first visit to a plant was how small it was.) And it all happens without combustion, so no greenhouse gases are produced.

The AP1000 reactor design for the facilities comes from Westinghouse. Westinghouse, based in Pennsylvania, was acquired by Toshiba Corporation and other partners in 2006. But at the end of the day, a U.S. company will play a major role in building a reactor on American soil creating American jobs.

There has also been a lot of talk lately on what counts as a shovel-ready project. Both the V.C. Summer project in South Carolina and the Vogtle project in Georgia [another subject of a recent NRC mandatory hearing on its combined operating license] fit the bill. In fact, the shovels have already started digging in early work at the sites. Southern Company—which is heading up the Vogtle project—can’t wait to get started.

“We will be in a position to implement the rule-making as soon as it is affirmed,” Joseph “Buzz” Miller, executive vice president for nuclear development of Southern Nuclear Operating Co., said...

The NRC is expected to approve the Vogtle COLs sometime “very early next year.” The Summer COLs, presumably, would not be far behind.

When the COLs get issued, I will be heading over to Southern’s website on the progress at Vogtle to keep track of what’s going on. And right after that, I’ll be checking in with NASA on its next missions.

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