An Arizona Highway to Thorium and Recycling

The Senate Committee on Water and Energy narrowly passed SB 1134, a bill that classifies "nuclear energy from sources fueled by uranium fuel rods that include 80 percent or more of recycled nuclear fuel and natural thorium reactor resources under development" to be a renewable-energy source.

That’s pretty specific, since Arizona’s nuclear plant Palo Verde uses neither recycled nuclear fuel or thorium – in fact, no American nuclear plant does. And about labeling nuclear renewable: while it does some of the same things that hydro, solar and wind do, it’s not renewable. Rather, it’s sustainable, meaning that uranium is not depleting at a rate that’s worth worrying about, but it’s not (essentially) infinite, either. It makes sense to consider nuclear energy as part of a “renewable” energy plan, because they are focused on an energy source’s emissions profile, but the semantics can get a little knotty if you let them.

Anyway, the specifics of the bill suggest a bit of micromanaging, but it really isn’t a directive to Palo Verde at all. The goal here is different. Note the second paragraph:

As it stands now, the Arizona Administrative Code R14-2-1801 says nuclear and fossil fuels are not renewable resources. But Senator Steve Smith, a Republican from District 23, and the main sponsor of SB 1134, would like that to be changed.

He told the committee that by not recycling nuclear fuel rods like some European countries do, Arizona is missing out on a lot of potential energy. "Basically we just want to burn that energy twice," he said, and should Arizona decide to incorporate that technology in the future, this bill would allow us to count that as a renewable energy source.

Smith definitely has the right idea here, but it’s more aspirational than practical currently and I’m not sure using recycled fuel or thorium is any more helpful to reaching the goal Smith is pursuing than what Palo Verde does now – recycling can be a goal in itself, of course, but that doesn’t seem to be the main idea. Ensuring that Arizona pushes the EPA to include existing nuclear energy plants in the agency’s carbon emissions rules would be more of the moment (which may be happening, of course). Still, support for expanding nuclear energy is always welcome and Smith’s effort is certainly welcome. Let’s see what happens with this.

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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