Low Carbon Emissions? Look to Nuclear, Hydro

Ceres has produced a new report called Benchmarking Air Emissions, which shows that the electric generating business has done a significant job in reducing a variety of greenhouse gases, notably nitrogen oxide, sulfur dioxide and carbon dioxide. Nuclear energy does not weigh heavily into the report because new nuclear power is still a few years away, so only uprates can have contributed to the report’s profile. Still:

Among the top 100 power producers, Exelon had the eighth lowest CO₂ emissions rate in 2011, largely due to its large nuclear and renewable energy fleet, as well as its investments in nuclear uprates. Even with a low level of emissions, Exelon reduced its total CO₂ emissions by 32 percent and its CO₂ emission rate by 40 percent between 2000 and 2011.

It’s the “even with a low level of emissions” bit I want to focus on here, because it recognizes that nuclear energy has made a significant contribution.

Southern Company reduced total SO₂ emissions by 63 percent while increasing overall generation by 8 percent between 2000 and 2011 by bringing online approximately 14,000 megawatts of natural gas-fired capacity during the same period.

Those numbers will become even more impressive when the two reactors at Southern Co.’s Plant Vogtle in Georgia go online.

This struck me as interesting, although not in the least counterintuitive:

Based on the latest available data, the report also reveals that Wyoming, Kentucky, West Virginia, Indiana, and North Dakota had the highest CO₂ emissions per megawatt-hour of power produced, while Idaho, Vermont, Washington, Oregon, and Maine had the lowest CO₂ emissions rates.

Of the five with the lowest emissions, Vermont and Washington have nuclear energy facilities, the others do not. Maine, Idaho and Oregon are three of the highest users of renewable energy at about 52 percent, 80 percent and 80.6 percent respectively. (Think hydro here, with wind and/or solar helping out.)

I may have expected nuclear to be a bit more determinative in these rankings, but it’s silly not to realize the prevalence of hydro in some states and regions, notably the Pacific Northwest. Call it an unattractive blind spot. Still, the results are what you want and the great thing about nuclear and hydro both is that they are “elder” technologies, doing the good they do for many years (many, many years in the case of hydro.)

The highest emitters – well, they do not need too much explication. Let give the devil his due, though, and allow that Kentucky, at least, is willing to consider nuclear energy more seriously.

The report itself (you have to provide your email to get it, so caveat emptor) is written in layman’s language and it’s fairly brief at 50 pages.

Here’s how Ceres describes itself:

Ceres is an advocate for sustainability leadership. Ceres mobilizes a powerful network of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy.

Not the most provocative report, but fair and free of cant – even the light nuclear pickup seems right in this context. Ceres performed a good service for its constituency.

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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