Platts - Wednesday, August 17, 2005 http://www.platts.com ------------ Head of German industry group calls for scrapping Kyoto treaty Bonn (Platts)--17Aug2005 The head of the German Federation of Industry has called for scrapping the Kyoto Protocol. Carsten Kreklau, executive director of BDI, said in an internal paper that the the protocol cannot achieve its goals on climate change. He said the US administration's approach, which is aimed at developing technology and including China and India in greenhouse gas reductions, is a better approach. This approach also will provide business for German firms to develop emissions-reduction technology and create German jobs, he said. He said the current Kyoto mechanisms cannot achieve their goals, with most participants already unable to adhere to their limits. BDI is the leading German industry lobby group and is influential in government policy-making circles on energy and environment. Kreklau's statement is the first time a German business leader has broken ranks and questioned implementation of the Kyoto Protocol, which enjoys widespread support among all German political parties. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ NRC rejects Nevada petition to change 1990 waste decision Washington (Platts)--16Aug2005 NRC rejected Nevada's requested change to the 1990 waste confidence decision, saying it didn't find the state's arguments persuasive enough to reopen the issue. That Waste Confidence finding stated that the commission believed there was reasonable assurance that at least one mined geologic repository would be available by 2025. Nevada asserted in its March 1 petition that the rule prejudges the outcome of the adjudicatory proceedings for a repository at Yucca Mountain, Nev. because DOE would not have enough time to develop another repository by that date if NRC denied the department's application. In an Aug. 10 decision, the commission said it would reevaluate the 2025 availability date if it denied a license for Yucca Mountain and DOE abandoned the site. ------------ US NRC pushes back early site permit review for three reactors Washington (Platts)--16Aug2005 The US Nuclear Regulatory Commission is to push back its early site permit (ESP) review schedule by several months for three applications, primarily to resolve a greater-than-expected volume of public comments on the staff's draft environmental impact statements, it said Tuesday. Exelon Generation's Clinton application, which was submitted to NRC in September 2003, is now expected to be the last review completed. NRC said Exelon had referenced a previously unreviewed seismic methodology that will take the additional NRC resources. A commission decision on Exelon's application, previously anticipated for late August 2006, is expected to slip by seven to nine months. The review schedules for Dominion Nuclear's North Anna site and System Energy Resources Inc's Grand Gulf site, which had been targeted for completion in June 2006 and October 2006 respectively, are each expected to be delayed by about four months, NRC officials said. An ESP allows a company to reserve space on a site for 20 years or longer while deciding whether to actually build a new reactor there. For more information, take a trial to Platts Inside NRC at http://insidenrc.platts.com. ------------ NRC EIS gives Point Beach nuke license renewal the thumbs-up Washington (Platts)--16Aug2005 The US Nuclear Regulatory Commission said Tuesday in a final environmental impact statement that there would be no environmental impact that would preclude a 20-year license renewal for units one and two at the Point Beach nuclear power plant in Wisconsin. Nuclear Management Co, which operates the 1,036-MW plant for Wisconsin Electric Power Co, submitted the renewal application for the plant on Feb 25, 2004. The current operating licenses expire on Oct 5, 2010 for the 519-MW unit one and March 8, 2013 for the 517-MW unit two. The Point Beach plant is located on the western shore of Lake Michigan in Two Rivers, Wisconsin, about 30 miles southeast of Green Bay. For more information, take a trial to Platts LNG Daily at http://www.LNGdaily.platts.com. ------------ Hardliner Larijani to run Iran's nuclear policy London (Platts)--15Aug2005 Iran President Mahmood Ahmadinejad Monday appointed hardliner Ali Larijani, former head of the state broadcast media, to take charge of the country's nuclear policy. The appointment suggests tough negotiations between Iran and the European Union on the former's nuclear program. Larijani, a former Revolutionary Guards deputy commander who stood in the first round of the June presidential election, will replace Hassan Rowhani as head of the Supreme National Security Council and Iran's top nuclear negotiator. AFP quoted him as saying in March that "making the least concession on nuclear technology would be tantamount to high treason." AFP reported that he had been dismissive of incentives offered by the EU earlier this month in return for agreeing to cease fuel cycle work. The UK, France and Germany in November persuaded Iran to suspend uranium enrichment, holding out the lure of a lucrative trade pact. But Iran resumed uranium conversion, the precursor to enrichment, last week at its Isfahan facility. The governing board of the International Atomic Energy Agency, the United Nations' nuclear watchdog, passed a resolution Aug 11 expressing "serious concern" at the decision to resume uranium conversion at Isfahan and urged Tehran "to re-establish full suspension of all enrichment-related activities ...and to permit the director-general (of the IAEA) to reinstate the seals that have been removed at that facility." The resolution also called for IAEA director-general Mohamed ElBaradei to provide "a comprehensive report on the implementation of Iran's (Non-Proliferation Treaty) safeguards agreement and this resolution" by Sep 3. The resolution did not, however, threaten to refer Iran to the UN Security Council for possible sanctions. Outgoing Foreign Minister Kamal Kharrazi said Sunday that the IAEA resolution had been issued "under the pressure of big powers." Tehran is ready to negotiate, he said, quoted by IRNA. "But if Iran's case is to be sent to the UN Security Council, it would bring about some restrictions for us," he warned. For more information, take a trial to Platts Oilgram News at http://oilgramnews.platts.com. ------------ Bruce-7 ends maintenance inspection outage Washington (Platts)--15Aug2005 Bruce-7 returned Saturday from a planned maintenance inspection that began May 7, Bruce Power said. A larger-than-normal work program was completed during the more than (Cdn)$50-million mid-life inspection, the company said. Work included installation of three new low-pressure turbine rotors that are expected to help add up to 15 megawatts to the unit's output, Bruce Power said. Bruce-7 is rated at 840 MW. ------------ OPG won't return Pickering-2, -3 to service Washington (Platts)--12Aug2005 Ontario Power Generation (OPG) won't proceed with refurbishment of Pickering-2 and -3, utility President/CEO Jim Hankinson announced today. OPG said its board of directors accepted a management recommendation that the units not be refurbished. After months of study, OPG doesn't "see a sound business case" for returning units 2 and 3 to service, Hankinson said.The four units at the Pickering A station (units 1-4) were shut in 1997 as part of a restructuring by OPG predecessor Ontario Hydro. OPG returned unit 4 at a cost of (Cdn)$1.25-billion, nearly three times the original estimate. Pickering-4 began operating again in September 2003, two years behind schedule. Late last month, Canadian regulators cleared the way for OPG to restart unit 1. Its recovery is expected to cost $1-billion; it is expected to return to full power in September or October. ------------ Shell says takes long-term view on Iran business amid nuclear row London (Platts)--12Aug2005 Shell said Friday it remained interested in business in Iran, whose decision to restart nuclear work has heightened tensions with the West. "We recognize there are differences within the international community," said a spokesman for Shell, Europe's second-largest oil company. "Like other energy companies, we take a long-term view of our operations. We believe Iran offers a number of potential business opportunities and we are interested in developing these in the longer term." The International Atomic Energy Agency Thursday adopted a resolution expressing "serious concern" at Tehran's decision and set a Sep 3 date for an IAEA report on Iran's compliance. Iran's failure to stop the work could lead to the IAEA bringing the country before the UN Security Council for sanctions. Iran sits on the world's second-largest deposits of oil and gas, and Shell is among the European companies working at Iranian fields to boost output. Iran's new president, Mahmood Ahmadinejad, has said he would favor Iranian firms in awarding future oil and gas developments. Shell developed two Iranian oil fields, Sorush and Noruz, under an $800-mil contract, which are now being handed back to Iran, and the company is looking for more Iranian projects. Last September, Shell and Repsol signed a preliminary agreement to build a liquefied natural gas plant at Assaluyeh in Iran. Shell at the time said the deal would take the project into the next stage of design. Iran's constitution does not allow foreign ownership of oil and gas reserves. Instead, the country has developed buyback contracts, whereby an investor pays for a project, hands it back to Iran and receives an agreed rate of return from its output. Shell's approach to Iran contrasts with that of rival BP, whose chief executive, John Browne, this year ruled the company out of investing in Iran because of US sanctions on the country. BP is the largest US oil and gas producer. Total of France and Italy's Eni are also working at fields in Iran. Spokesmen for both companies declined immediately to comment on Iran, citing national holidays in France and Italy. For more information, take a trial to Platts Oilgram News at http://oilgramnews.platts.com. ------------ Ontario Power scraps plans to refurbish Pickering-2, -3 nukes Washington (Platts)--12Aug2005 Ontario Power Generation Friday said it has scrapped plans to refurbish its Pickering-2 and -3 nuclear plants. OPG President and CEO Jim Hankinson said the company's board accepted a management recommendation that the units not be refurbished. OPG doesn't "see a sound business case" for returning units 2 and 3 to service, Hankinson said. He said OPG will instead devote its resources to maximizing the performance of its 10 existing units (six Pickering units and four Darlington units). The four units at the Pickering A station (units 1-4) were shut in 1997 as part of a restructuring by OPG predecessor Ontario Hydro. OPG had planned to return all the units to service. Returning unit 4 cost C$1.25-bil, nearly three times the original estimate, and made OPG a target for political and nuclear industry critics. Pickering-4 began operating again in September 2003, two years behind schedule. In March 2004, OPG halted work on units 2 and 3 and focused on returning Pickering-1 at an estimated cost of C$1-bil. The unit is expected to reach full power by October. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------