Platts - Tuesday, September 27, 2005 http://www.platts.com ------------ EU can phase out nuclear power, cut CO2 by 30% by 2020: report London (Platts)--27Sep2005 Europe could phase out nuclear power and reduce its carbon dioxide emissions by 30% by 2020 to avoid "catastrophic climate change," Greenpeace said in a report launched Tuesday. The "Greenpeace Energy Revolution Senario" report shows that half of Europe's energy demand could switch to renewable energy sources and CO2 emissions could be reduced by nearly 75% by 2050. It also shows that if the European Union fails to reform its energy sector, CO2 emissions would increase by nearly 50% by 2050, Greenpeace said. "This blueprint maps out how to build a future based on clean, renewable energy sources, independent of imported fossils and nuclear fuels. This will not only protect the climate, it will insulate national economies from the fluctuations of the global markets for fossil and nuclear fuels, benefit the economy and provide secure access to energy for future generations," Greenpeace International expert, Sven Teske said. According to the report, the power sector will continue to be the forerunner of renewable energy. In 2050, more than 70% of the electricity is to be produced from renewable energy sources, followed by renewables in the heating sector, which will produce more than half of the needed energy. "There is no quick fix when it comes to the power sector--investments and solutions are long-term. Renewable energies have slightly higher costs now, but most of them will be cheaper in less than 15 years," said Teske. For more nuclear stories, request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ ------------ NEI reorganizes, aims to focus on key policy issues Washington (Platts)--26Sep2005 The Nuclear Energy Institute (NEI) said today it was reorganizing to better focus on key policy issues and future energy challenges. NEI President/CEO Frank "Skip" Bowman said in a statement that industry members provided input for the restructuring. Angelina Howard, previously the executive vice president of the member relations and external affairs division, was named vice president in the Office of the President and executive adviser to Bowman. Federal, state, and local government affairs and coalition-building will be integrated under the government affairs division, which will be temporarily headed by John Kane until he retires April 30 or until his replacement is hired. Phyllis Rich, currently vice president of the corporate services division, will add member relations to her duties and also will become treasurer. Richard Meyers was named executive director and special assistant to the president. NEI also created a new post for vice president for used fuel management. The post is currently vacant. The new structure takes effect Oct. 1. ------------ NRC expects Vermont Yankee uprate review to go past February Washington (Platts)--23Sep2005 NRC staff says it is unlikely to complete Vermont Yankee's uprate request by late February, as it had tentatively projected in August. In its latest status report on the review of Entergy's 20% extended power uprate application, the staff said it will take time to review two recent supplements filed by Entergy and that additional information from Entergy is likely to be required. The staff said in the status report, which was released yesterday on NRC's document system Adams, that it no longer believed it would be able to issue a final safety evaluation report by Feb. 24 but did not want to try to revise the schedule until its review progresses over the next several weeks ------------ Gas demand uncertain as powergen priorities change: Eon gas boss Brussels (Platts)--23Sep2005 Emissions trading and the re-opening of the nuclear power debate in Europe is creating uncertainty about future gas demand, the chairman of Germany's Eon Ruhrgas, Burckhard Bergmann, told an industry seminar in Brussels Thursday. "We don't know how much gas we need for power generation," he said. Some European Union member states are considering new nuclear plant, while the EU's emissions trading scheme is another factor changing the economics for power stations--and not necessarily consistently. "National allocation plans are different in each EU member state and so have different consequences for the relative competition between different power generation fuels," said Bergmann. UK-based Centrica's managing director Jake Ulrich agreed that the way member states had allocated free permits to emit in the first phase of the EU ETS (2005-2007) was a "mess." But it is the second phase, from 2008-2012, which is critical. "At Eur30 for carbon, clean coal looks good and Centrica would be interested," said Ulrich, "but it depends how the free allowances are allocated in the second phase--we don't want to be penalized as a new entrant." It would take about four to five years to bring on new clean coal plant--hence the need to know soon how the free allowances are to be allocated. Ulrich also saw the uncertainty about future gas demand as one of the few things to have changed in the EU gas markets over the past few years. In the 1990s analysts saw power generation as the main driver for future gas demand, with quick to build, flexible and efficient combined cycle gas turbine plant the industry darling. But with high oil prices pushing up gas prices and environmental policies creating a price for carbon, gas is facing competition from clean coal and nuclear. "Gas prices are so high that CCGT is no longer a 'miracle' technology," Bruno Lescoeur, senior executive vice president of Electricite de France's international businesses, told a Brussels seminar earlier this month. GAZPROM HEDGING ITS BETS ON SUPPLY ROUTES The uncertainty about future EU gas demand has led Russia's gas company Gazprom to hedge its bets on new supply routes. The agreement on Sep 8 between Eon Ruhrgas, German industrial group BASF and Gazprom to commission jointly a 27.5-bil cu m/y offshore pipeline by 2010 direct from Russia to Germany "marked a new stage in Russia-EU cooperation," a member of Russia's parliament told Thursday's seminar. With major customers in Germany and Italy Gazprom had no alternative but to develop customer relations in the EU, said the Russian MP. "The North European Gas Pipeline makes it possible to diversify Russian gas export flows and connect directly to the EU internal gas market by bypassing transit states,' said the Russian MP. But some analysts believe the cost of the NEGP is not justified given that it would be cheaper to build a second onshore Yamal pipeline through Belarus and Poland. Eon Ruhrgas estimates the NEGP would cost Eur2-4-bil for the first line, and much more if the companies decided to add a second line to double capacity to 55-bil cu m/y, if demand warranted it. But it would not be all new demand, said one industry observer. The Germans have asked Gazprom to transfer 18-bil cu m from the first Yamal line to NEGP, he said. However it is the future demand which is driving the investment decisions, he said. "If the demand is in the UK, Gazprom will get the best return from the NEGP," he said. "Gazprom wants to keep it as an upstream line to avoid it falling under EU third party access rules--and so it doesn't want to build spurs to Sweden or Norway." But if the demand came from the east then it would be worth building the second Yamal line, he said. He personally expected demand to be enough to justify building both eventually. Siobhan Hall, siobhan_hall@platts.com For more information, take a trial to Platts European Power Daily at http://europeanpowerdaily.platts.com. ------------ US NRC expects no nuke plant closures under Rita's current path Washington (Platts)--23Sep2005 None of the three nuclear power plants closest to the projected path of Hurricane Rita will be required to shut down if the hurricane stays on its current course, a US Nuclear Regulatory Commission spokesman said Friday. The three nuclear stations are the two-unit South Texas Project near Bay City, Texas, with a total capacity of 2,500 MW, the 936-MW River Bend reactor 25 miles outside of Baton Rouge, Louisiana, and the 1,104-MW Waterford 3 reactor 20 miles west of New Orleans. NRC Region IV spokesman Victor Dricks said that if Rita follows its currently projected path, the closest it will come to the South Texas Project is 121 miles at 7 am Saturday. The path would take the storm within 160 miles of River Bend at 5 am Saturday and within 167 miles of Waterford at 4 pm Friday. NRC requires nuclear plants to begin shutting down seven hours before they expect hurricane force winds of 75 miles per hour or greater. Dricks said given the current path of Rita, the three plants are outside of projected hurricane force winds but would experience tropical storm winds of 39 miles per hour or greater. ---Brian Jordan, brian_jordan@platts.com For more information, take a trial to Platts Gas Daily at http://www.gasdaily.platts.com. ------------ Yucca Mt. repository opening not likely before 2016, panel told Washington (Platts)--22Sep2005 The Yucca Mountain waste repository is not likely to be open before 2016, former NRC Commissioner Edward McGaffigan told the Senate Environment & Public Works Committee today. Ten years would be required for NRC review and hearings, assuming DOE submits its application early in 2006, McGaffigan said. The committee is reviewing his nomination for a third term at NRC. ------------