Platts - Friday, June 15, 2007 http://www.platts.com ------------ Perma-Fix buys Nuvotec USA, subsidiary PEcoS Washington (Platts)--14Jun2007 Perma-Fix Environmental Services Inc. said it has completed the acquisition of Nuvotec USA Inc. and subsidiary Pacific EcoSolutions Inc. for $11.2 million. In a June 14 statement, Perma-Fix Chairman/CEO Louis Centofanti said the acquisition increases Perma-Fix's waste treatment capacity and secures additional radwaste and hazardous waste permits and licenses. PEcoS operates a low-level radwaste and mixed LLW treatment facility adjacent to DOE's Hanford site in Richland, Washington. Perma-Fix already operates one mixed LLW treatment facility in Florida and two in Tennessee. ------------ Canadian government approves nuclear waste storage proposal Washington (Platts)--14Jun2007 The Canadian government on Thursday decided to adopt a hybrid approach to nuclear waste storage that an agency charged with coming up with the solution to the problem has recommended, it said. In 2002, Canada passed the Nuclear Fuel Waste Act and required waste owners to set aside funding for the long-term management of used nuclear fuel and establish a Nuclear Waste Management Organization to study the issue. As required by the act, the NWMO studied three possible options: deep geological disposal in the Canadian shield; storage at reactor sites; and centralized storage, either above or below ground. The NWMO also studied and recommended a fourth option -- the Adaptive Phased Management approach -- that combines technical advantages of the three methods with a management approach that engages citizens in decision making throughout the process. The APM approach offers centralized containment and isolation of used fuel in a deep repository with the option of an interim shallow-underground storage facility at the site. The government approved this choice. Canada's used nuclear fuel is currently stored where it is produced at reactor sites in Ontario, Quebec and New Brunswick. "Good governance depends on responsible decisions, and today we are taking steps toward a safe, long-term plan for nuclear power in Canada for future generations," said Canadian Natural Resources Minister Gary Lunn. The Canadian Nuclear Association noted the approach is consistent with that of France, the UK, Finland, Sweden, Japan and the US. ------------ Fenoc tells US NRC Davis-Besse vessel head analysis was correct Washington (Platts)--14Jun2007 FirstEnergy's Fenoc unit on Thursday said its analysis of severe vessel-head degradation at the Davis-Besse nuclear plant was correct and suggestions in a report that the corrosion was occurring at a faster rate than Fenoc had intimated were wrong. In a letter Fenoc sent Wednesday to the US Nuclear Regulatory Commission, Fenoc -- which operates three nuclear plants in Pennsylvania and Ohio -- said it "reaffirms the validity of its own analysis of the event's root causes and corrective actions." Fenoc added it "continues to believe that if it would have properly implemented the boric acid corrosion control program, leaks from control rod drive nozzles would have been visible in 2000 or before." Davis-Besse was shut down in 2002 because of the vessel-head problems. The Wednesday letter was in response to a May "demand for information" from NRC after the report -- known as the "Exponent report," after the consulting firm that prepared it for Fenoc in connection with arbitration of an insurance claim -- said the corrosion occurred much faster than Fenoc had estimated in a root-cause report it submitted to NRC. NRC spokesman Scott Burnell said May 14 that the agency sees a "contradiction" between the Exponent report and Fenoc's root-cause report. NRC previously had asked Fenoc for information on the Exponent report, but the company's response was insufficient, Burnell said. One particular concern, Burnell said, was Fenoc's delay in submitting the report to NRC, given the potential implications for the safety of the US presssurized water reactor fleet. Fenoc received the report in December 2006, but did not provide it to NRC until March, he said. Fenoc also said it does not endorse all the conclusions of a separate arbitration-related report, by Roger Mattson, adding that some of his conclusions are "his personal opinion that the company is unable to endorse or validate." Fenoc did slap itself on the wrist, however, over its communications with the regulator, saying it should have been more open with NRC about the two reports' findings. "To ensure close and early communications with the NRC, the company will develop a formal process to review technical reports regarding its nuclear stations that are prepared as part of a commercial matter," it told NRC. ------------ UK's nuclear body appoints Martin O'Neill as new chairman London (Platts)--14Jun2007 The UK's Nuclear Industry Association said late Wednesday it had appointed Martin O'Neill, a member of the House of Lords, as its chairman. O'Neill has taken over from Bill Bryce of Doosan Babcock, who had been interim chairman since the beginning of the year, it added. O'Neill said: "We are at a crucial point for the future of the UK's energy mix with real and challenging issues over delivering security of supply and a low-carbon future for Britain...I am delighted to be joining the NIA, one of the country's most effective trade associations." The new chairman is a member of the Lords Select Committee on Science and Technology and is vice-chair of the All Party Group on Energy Studies. He was a Labour Party MP from 1979 to 2005, and chaired the Trade and Industry Select Committee for 10 years from 1995. He has been in the Lords as Lord O'Neill of Clackmannan since 2005. ------------ PPL may build third unit at Susquehanna site Washington (Platts)--13Jun2007 PPL Corp. said it may build a third unit at Susquehanna, but wouldn't undertake the project alone. In a June 13 statement, PPL said it had sent NRC a letter notifying the agency of its intent to submit a combined construction permit-operating license application. The company does not have a schedule for filing the submittal, PPL spokesman Daniel McCarthy said. McCarthy said PPL is continuing to consider its options on reactor technology. PPL Chairman, President and CEO James Miller said in a statement that, "Given the market, construction and regulatory uncertainties, along with the large capital commitment for a nuclear project, we would proceed with construction only in a joint venture arrangement." PPL is looking at other options for future generation, including the acquisition or construction of coal, hydro, natural gas and renewable energy facilities, he said. Susquehanna-1 and -2, rated at 1,202 MW and 1,207 MW, respectively, are General Electric BWRs. ------------ PPL says it is exploring building nuke plant under joint venture Washington (Platts)--13Jun2007 PPL on Wednesday said it is preserving the option to build a third nuclear generating unit at its Susquehanna plant near Berwick, Pennsylvania, and has sent a letter to the US Nuclear Regulatory Commission saying it intends to file an application for a combined construction and operating license for a new plant. PPL said given the uncertainties associated with such a large capital investment, the company would only proceed with construction of a new nuclear unit as part of a joint venture arrangement. PPL said it has not decided whether to proceed with construction of a nuclear unit and said a construction decision "could take as long as four years given the lengthy application process," James Miller, chairman, president and CEO of PPL said in a statement. PPL estimates that the licensing phase would cost about $70 million, most of which would be incurred by the end of 2008. Although it is still evaluating the issue, PPL said it does not expect such costs to affect its forecasts of earnings from ongoing operations. The company also filed a request with PJM Interconnection for preliminary transmission interconnection studies for the Susquehanna site, which is one of many studies necessary for PPL to evaluate any expansion of the Susquehanna facility. If PPL moves forward on a new nuclear unit, it would be just one element of its plan for adding generation resources, Miller said. Other elements include the acquisition or construction of coal-fired or natural gas-fired plants, hydropower facilities and other renewable resources. Earlier this year, PPL said it is committed to spending $100 million over the next five years to build generation using renewable resources. ------------ India building two reprocessing plants London (Platts)--12Jun2007 India is constructing two more reprocessing plants in addition to the three already operating at Tarapur, Kalpakkam and Trombay, S. K. Munshi, chief superintendent of reprocessing facilities at the Bhabha Atomic Research Center at Trombay, said June 12. In an interview following a talk given at the IBC Global Conferences' radioactive waste management conference in London, he said two new plants were being built at Tarapur and Kalpakkam which should start operating within the next few years. "Reprocessing is a must to meet our closed nuclear fuel cycle program," Munshi said. ------------ US NRC 'torn' on how to proceed with GNEP: Commissioner Lyons Washington (Platts)--12Jun2007 The US Nuclear Regulatory Commission is "torn" on how to proceed with the Department of Energy's Global Nuclear Energy Partnership, NRC commissioner Peter Lyons said Tuesday. In remarks before the Global Nuclear Fuel Reprocessing and Recycling conference in Seattle, Lyons said the agency does not have "sufficient certainty" from the Bush administration and Congress to know what resources need to be assigned, and on what time scale, to develop a framework for licensing facilities under GNEP, an initiative to develop new types of reprocessing plants and fast reactors. In determining fiscal 2008 funding levels, there have been differences between the administration and Congress, as well as within the administration, over the urgency of GNEP work. Lyons also emphasized that spent fuel is now safely stored at reactor sites, although there could be debates over whether such an approach is "desirable." NRC commissioners now are considering a staff proposal for a two-phased approach to setting up a GNEP licensing regime. --Daniel Horner, daniel_horner@platts.com ------------ Spot uranium price seen rising after Tuesday, Friday auctions Washington (Platts)--12Jun2007 The spot price of uranium will most likely rise Wednesday based on the results of Tuesday's auction of 125,000 pounds of U3O8 by Canada's Denison Mines, market sources said. Ux Consulting has pegged the current spot price over the past week at $135/lb U3O8, while TradeTech put the price at $138/lb U3O8 over that period. Later this week the price may again rise when London-based Nufcor International auctions 20,000 to 100,000 kilograms of uranium as UF6 on Friday. That material is located in Europe and is available for delivery June 29, Nufcor International told prospective bidders. Mike Knapik, newsdesk@platts.com ------------ EIA: Renewables requirement would cut nuclear by 5% Washington (Platts)--11Jun2007 A national renewable portfolio standard would reduce US nuclear generation by less than 5% by 2030, DOE's Energy Information Administration said in a report released June 11. EIA said it was asked by Senator Jeff Bingaman, a New Mexico Democrat who chairs the Senate Energy and Natural Resources Committee, to "analyze a renewable portfolio standard (RPS) requiring that 15% of US electricity sales be derived from qualifying renewable energy resources." If such an RPS were implemented, EIA said, the increase in renewable generation would primarily displace coal-fired generation. With an RPS, nuclear generation would be reduced to 856 billion kilowatt-hours in 2030, it said. Without an RPS, nuclear generation would be 896 billion kWh in 2030, EIA said. The report is online at: (www.eia.doe.gov/oiaf/servicerpt/prps//pdf/sroiaf(2007)03.pdf). ------------ Belgian nuclear prospects improve after elections London (Platts)--11Jun2007 Sunday's election victory in Belgium of the Christian Democrats in the majority Flanders region bodes well for the future of nuclear power in Belgium, but the prospect of the Green parties in both Flanders and Wallonia returning to the new coalition government does not, according to a nuclear industry official in Brussels. The Christian Democrats were the only party to openly support plant life extension--currently banned under a 2003 nuclear phase-out law--for the nation's seven nuclear power units. The party did, however, officially oppose building new nuclear units. The unexpected defeat of the socialist parties in both Flanders and Wallonia will weaken their staunchly anti-nuclear position in the new government and the increasing power of the Reform Movement party in Wallonia could also help, the official said. The socialists' share of the vote "was very low. It was a big surprise of the election," the nuclear industry official said. However, energy issues are not likely to resurface on the political agenda until September, he said, after the horse trading that now begins over the formation of a coalition government based on Sunday's results. The Flemish Christian Democrat party is pushing for greater autonomy for the majority Flanders region and that issue could dominate discussions over the formation of the new government, which, historically, could take several weeks to months to complete. ------------ BNFL to release a confidential prospectus for business unit sale London (Platts)--11Jun2007 BNFL is about to release a confidential prospectus for the sale of its Project Services business, British Nuclear Fuels plc CEO Mike Parker told the Adam Smith Institute's Nuclear Industry Forum conference in London June 7. "We've had a lot of interest," he said, and the sale is expected to be concluded sometime "over the next few months." The prospectus is to give potential purchasers detailed information so they can decide on the value of the business. Project Services Ltd. is BNFL's specialist decommissioning and remediation contracting and consulting business. It has 730 employees and operates in the UK, Continental Europe, the former Soviet Union and Japan. It became a limited liability company April 1, 2005 and has annual sales of about Eur 250 million. ------------ Browns Ferry-1 reaches 100% power Washington (Platts)--8Jun2007 Browns Ferry-1 reached 100% power June 8, joining units 2 and 3 at full power at 2:57 am Central time, Tennessee Valley Authority spokesman Terry Johnson said. Power at unit 1 was reduced later in the morning to 96% for some instrument work, he said. Browns Ferry-1 returned to the grid June 2 after achieving criticality May 22. All three Browns Ferry units were shut in March 1985 to address various performance and management deficiencies. Unit 2 went critical on May 24, 1991; unit 3 returned in November 1995. ------------ US House panel votes to deny loan guarantees to nuclear reactors Washington (Platts)--8Jun2007 The nuclear power industry would be unable to qualify for US Department of Energy loan guarantees for new reactors in fiscal 2008 under a funding bill approved by the House Appropriations Committee this week. Deputy Energy Secretary Clay Sell Friday said the decision, should the full House and Senate agree with it, would hurt Bush administration and industry efforts to revive nuclear power in the US. In an interview Friday, Sell said DOE was concerned about the committee's decision to cut DOE's funding requests for the Nuclear Power 2010 and the Global Nuclear Energy Partnership programs, two other initiatives that the administration considers critical to nuclear power expansion. "There is an increasing consensus in this country and in this Congress, among Republicans and Democrats, that nuclear power must be an increasing part of the energy future. And that's progress," Sell said. "Yet on the issue of new plant construction, which we're desperately trying to get going, there are critical problems." In passing the bill on Wednesday, the committee approved $7 billion for loan guarantees in the fiscal year that begins on October 1, $2 billion less than DOE requested. Of the $7 billion, the panel allocated $2 billion to coal power plants that employ carbon sequestration, $4 billion to plants that manufacture biofuels and "clean" transportation fuels and $1 billion for new technologies for electric transmission facilities and renewable energy power systems. "The committee specifically cut nuclear projects out of the loan guarantee program," Sell said. The Energy Policy Act of 2005 authorized the loan guarantee program to support commercial application of innovative technologies, including advanced nuclear energy facilities. Congress allowed $4 billion in loan guarantees this year, pending completion of a DOE rulemaking spelling out how the program will operate. While DOE has called the loan guarantees key to the construction of advanced reactors, the department excluded them from the program's inaugural, 2007 round to allow more time for the devolpment of nuclear technologies. The department has received 143 pre-applications requesting more than $27 billion in loan guarantees for biomass, solar, energy efficiency and other projects. --Bill Loveless, bill_loveless@platts.com ------------