Platts - Thursday, February 22, 2007 http://www.platts.com ------------ French, Russians sign MOU to develop uranium deposits in S Africa London (Platts)--22Feb2007 French and Russian industry wooed South Africa's energy leaders this week in a bid for access to the country's uranium resources and potential nuclear plant supply business. Russian federal nuclear agency Rosatom head Sergey Kirienko said after talks in Pretoria February 21 that Russia's Renova group and South Africa's Harmony Gold had signed a memorandum to develop gold and uranium deposits in South Africa, and that Russia could extend its enriched uranium supply contract with South Africa's Eskom until 2020. Renova, an investment group, is partnering with Rosatom subsidiary Techsnabexport in the uranium deal. Kirienko said Russia could share nuclear technology with South Africa as well. Separately, French industry minister Francois Loos offered French cooperation in building new nuclear power plants for Eskom. South Africa's minerals and energy minister Buyelwa Sonjica said her country ultimately seeks a complete nuclear manufacturing industry. France's Areva, Russia's Atomstroyexport, and Westinghouse are said to be candidates to build a new nuclear plant planned for the Cape region by 2014. ------------ Spurgeon: US likely to need nuclear for future energy demands Washington (Platts)--21Feb2007 It's doubtful the US can meet projected electricity demand increase without new power reactors, according to DOE Assistant Secretary for Nuclear Energy Dennis Spurgeon. Speaking at a meeting of DOE's Nuclear Energy Research Advisory Committee February 21 in Idaho Falls, Idaho, Spurgeon said the US will need to generate 50% more electricity in the next 25 years to meet demand. Coal-fired generation can be increased by 50%, but what happens if generating companies are required to sequester carbon? Spurgeon asked. He added that neither natural gas, a substantial portion of which is imported, nor hydroelectric dams could generate 50% more electricity. The amount of wind power could be increased but even if the amount were doubled or tripled, it would barely put a dent in the amount needed, he said. Spurgeon told the advisory panel that he believes there is "a much greater appreciation" in Congress now of nuclear's role in reducing greenhouse gas emissions. ------------ Uranium prices continue to rise, reaching at least $85/pound Washington (Platts)--21Feb2007 The spot price of uranium has reached at least $85 a pound U3O8, market sources said. The price increased $10/lb this week based on the results of an auction of 100,000 lb U3O8 February 20 by Texas-based Mestena Uranium. Ux Consulting said in its latest weekly report said the auction "tapped into some pent-up demand, especially on the part of those that don't want to purchase on a market price basis." --Mike Knapik, newsdesk@platts.com ------------ Need for new US reactors to withstand aircraft hit: NRC London (Platts)--21Feb2007 New US reactors should be designed to withstand a hit from a large commercial aircraft, NRC Commissioner Gregory Jaczko said in a proposal circulated February 20 to other commissioners. Jaczko asked for a vote on his proposal (COMGBJ 07-01), which would require the staff to expedite a rulemaking containing the new requirement. The commission recently approved a final rule that excluded a deliberate attack by a large aircraft from the design basis threat requirements for existing plants. The DBT describes threat scenarios that nuclear plants must be capable of enduring. The rule did not address the next generation of reactors, and another rule pending before the commissioners would require that specific security features be assessed for inclusion in a new facility's design. Joshua Batkin, Jaczko's chief of staff, said Jaczko wants to "require new plants to be designed not just to mitigate the damage from, but rather to actually withstand such an impact." The proposal is on NRC's Adams system under accession number ML070510565. ------------ Forsmark-2 restart approved, expected online February 21 Stockholm (Platts)--20Feb2007 The Swedish Nuclear Power Inspectorate approved restart of Forsmark-2, saying it was satisfied with the way the testing for leak-tightness of rubber containment seals was done and documented. But Lars Skaanberg, head of Reactor Technology and Structural Integrity at SKI, said February 20 that although the unit can go back into operation, the seals will have to eventually be replaced, because they will degrade as did a seal at Forsmark-1. Forsmark management said it expected to have the second unit back online by the afternoon of February 21. ------------ UKAEA fined GBP140,000 by Scottish court for illegal dumping London (Platts)--19Feb2007 The UKAEA was fined 140,000 pounds (US$275,000) by a Scottish court February 15 for illegal dumping of radioactive waste at its Dounreay site and discharging tiny radioactive fuel fragments to the nearby sea. It admitted four charges at the Wick Sheriff Court under the Radioactive Substances Act 1960 on February 6. Sentencing was deferred until February 15. The illegal activities dated back to various times between 1963 and 1984. The Scottish Environment Protection Agency originally brought the incidents to the attention of the Scottish court prosecution service. The agency said the environmental consequences of the discharges had taken a long time to investigate and fully evaluate. UK Atomic Energy Authority's director of safety John Crofts, said at the end of the court's proceedings that the UKAEA expects to announce in May the preferred option for retrieving the radioactive particles from around Dounreay. UKAEA's consultation with the public on a short list of 11 cleanup options ends February 23, he said. ------------ US senator wants Entergy to support Indian Point safety review Birmingham, Alabama (Platts)--16Feb2007 US Senator Hillary Clinton is asking Entergy, the operator of the Indian Point nuclear plant in New York, to support her request that the Nuclear Regulatory Commission conduct an "independent" safety assessment of the unit. Clinton also reintroduced legislation that would require the NRC to conduct the assessment before the 34-year-old plant is relicensed. "Restoring public trust in the facility will depend on a more thorough examination of the plant than the NRC is currently conducting," the New York Democrat said in a statement. Clinton said the assessment would be a top-to-bottom review of the plant's safety systems and emergency response. Clinton asked the NRC to conduct the assessment last year, but the agency refused. The legislation she introduced Thursday requires the completion of the review within six months of enactment. Scott Burnell, an NRC spokesman, said the agency has been corresponding with several members of the New York congressional delegation about the plant and has informed them that the work it is "currently doing at Indian Point and all nuclear plants exceeds the level of assessment they are asking for." Entergy reported a sudden drop in cooling water at Indian Point on February 5, a development that was considered by NRC to be an "unusual event," the lowest level of emergency declarations. Clinton at the time said she believes Congress, now led by Democrats, would be willing to force a more extensive review of the plant. A similar bill was introduced in the House on February 12. Westchester County, New York, officials filed a lawsuit February 1 against the NRC after the agency refused its request to consider the population growth around the plant in its investigation of whether the plant's operating license should be extended for 20 years. Entergy expects to file for relicensing of the plant in March. Licenses for the two operating units at the plant expire in 2013 and 2015. ------------ NRC commissioners reject additional inspection at Indian Point Washington (Platts)--16Feb2007 Indian Point's performance does not warrant additional inspection, NRC Chairman Dale Klein told three New York lawmakers in a February 15 letter. New York Representatives Maurice Hinchey, Nita Lowey and Eliot Engel, all Democrats, had requested last year that NRC conduct an independent safety assessment, or ISA, similar to the one at Maine Yankee in 1996. But Klein said he and his fellow commissioners believe that NRC's routine oversight process provides a more comprehensive review of plants than the agency's ISA. Klein said the staff performed an analysis comparing the ISA and the current reactor oversight process, or ROP. He said the commissioners believe the ROP "provides better oversight than an ISA since an ISA is a one time, 'snapshot' inspection whereas the ROP provides continual evaluation." In a February 15 vote, the commissioners rejected an ISA at Indian Point. ------------