Platts - Friday, December 21, 2007 http://www.platts.com ------------ Lithuania gov't to hold 61.7% stake in investment co for Ignalina London (Platts)--21Dec2007 The Lithuanian government plans to hold a 61.7% stake in the national investment company being set up to handle financing of a new Ignalina plant, the government said in a statement December 20. The private company NDX Energija is expected to hold the remaining stake. In order to organize the investment company, the government said the law on a new nuclear plant will have to be amended and that it would bring a motion to do so to the Seimas (parliament) as soon as possible. ------------ Cameco keeps 2011 production target at Cigar Lake Washington (Platts)--20Dec2007 Cameco is still targeting 2011, at the earliest, for production startup at the Cigar Lake uranium mine in northern Saskatchewan, the company said in a statement December 19. "Site crews continue to make progress on the remediation plan and we believe that the water inflow has been essentially sealed off. The next major milestone is dewatering the mine," which is targeted for second-half 2008, pending regulatory approvals and other activities, Cameco said. Production was originally planned to start in 2008, but flooding in October 2006 pushed the date to late 2010. Most recently, Cameco said startup would not occur until at least 2011. ------------ Areva delays US uranium enrichment plant site decision until Q1 Washington (Platts)--20Dec2007 French nuclear company Areva has postponed its choice of a site for a US centrifuge uranium enrichment plant until the first quarter of 2008, a company spokeswoman said late Wednesday. When the company told the US Nuclear Regulatory Commission of its plans earlier this year, Areva said it would choose a site by the end of 2007. Company officials reaffirmed that schedule as recently as November. But the spokeswoman said Areva is still "sifting through details." Areva has not identified the candidate sites. --Daniel Horner, daniel_horner@platts.com ------------ Pipe bomb posed no 'credible threat' to Palo Verde nuke: APS Washington (Platts)--20Dec2007 A pipe bomb found in early November in the bed of a Palo Verde nuclear plant worker's pickup truck posed "no credible" threat to the three-reactor station, plant operator Arizona Public Service told the US Nuclear Regulatory Commission. In a notice on the NRC's web site, APS retracted the security-related event notification and notification of an unusual event it issued November 2 when plant guards discovered the explosive device in the employee's truck. The discovery led officials to placed a security lockdown on the facility and prompted investigations by the FBI, the Maricopa County, Arizona, Sheriff's Office and the Palo Verde security department. In the latest notice, APS told NRC that the investigations "revealed that the previously reported explosive device was placed in the owner's truck bed without his knowledge. Therefore, there is no reason to believe that a person has committed or caused, or attempted to commit or cause, or has made a credible threat to commit or cause: theft or unlawful diversion of special nuclear material; or significant physical damage to a power reactor; or interruption of normal operation of a licensed nuclear power reactor." ------------ Bush says more nuclear power key to US GHG emission reductions Washington (Platts)--20Dec2007 President Bush on Thursday said he is "amazed" the US is not more "robust" in its support of nuclear power, and called the technology the "best solution" for ensuring continued economic growth while cutting greenhouse gas emissions. In remarks delivered during a Washington news conference, Bush said increased use of nuclear power -- along with elements of the recently enacted energy bill that include a planned 40% increase in automotive fuel efficiency -- is the key to the administration's policy for addressing climate change. "We do have a [climate change] strategy," Bush said, adding that the administration wants "to bring others to the table and develop our own plan to meet international goals." ------------ Russia's TVEL aims to sell fuel in the US market by 2014 London (Platts)--20Dec2007 Russia's TVEL aims to sell fuel in the US market by 2014 in cooperation with General Electric, TVEL President Yuri Olenin told a press conference December 18 in Moscow, according to the Nuclear.ru Internet news agency. Olenin was quoted as saying agreements would be signed in January-February 2008 to qualify TVEL's TVS-kvadrat fuel assembly with General Electric, as well as with an unnamed European company for deployment in the western European market. The TVS-kvadrat fuel would be fabricated in the US under license, he said. The TVS-kvadrat is a square fuel assembly design, developed for Western reactors from the traditional hexagonal assembly used in Russian-design reactors. Olenin predicted that TVEL's share of the world nuclear fuel market would rise from the current 17% to 30% in 2010. ------------ PPL goes with Unistar design for possible new nuclear unit Washington (Platts)--19Dec2007 PPL on Wednesday said it will file a combined construction permit and operating license application with the US Nuclear Regulatory Commission for a third unit at the Susquehanna nuclear plant site in Pennsylvania and will use a design by UniStar Nuclear Energy. PPL said it intends to file the application before the end of 2008, which would preserve the potential for federal production tax credits and federal loan guarantees. The Allentown, Pennsylvania-based company also emphasized, as it has in the past, that because of the large capital costs required, it will not move forward with construction of a new nuclear unit without forming a joint venture with another company. While PPL has been in talks about possible joint venture arrangements, "it would be premature to discuss details of those initiatives at this time," the company said. UniStar, a joint venture of Constellation Energy and Electricite de France, will prepare the NRC application based on Areva's evolutionary power reactor design, PPL said. PPL said it chose the design based on several factors, including its robust safety systems, and that as other companies select the design for new nuclear units, it could be part of a standardized fleet of evolutionary power reactors with similar operating systems. "This standardization will enhance prospects for safe and reliable operation because it will allow for sharing of best practices and other information across a wide industry base," PPL said. PPL said it does not expect the cost of the NRC licensing effort to impact its forecasts of earnings from ongoing operations. A possible third unit at the Susquehanna plant, near Berwick, Pennsylvania, is just one part of PPL's comprehensive plan to expand its generation portfolio, the company said. It also is considering acquiring or constructing plants using coal, hydroelectric, natural gas and renewable energy resources. ------------ PPL, UniStar to seek COL for new unit near Susquehanna Washington (Platts)--19Dec2007 PPL signed a contract for UniStar to prepare a combined construction permit-operating license, or COL, application for a possible third reactor, an Areva US-EPR, to be built adjacent to the two-unit Susquehanna station near Berwick, Pennsylvania, the companies said December 19. The COL application is expected to be submitted to NRC by late 2008, in time to qualify for production tax credits and federal loan guarantees, should the project move forward, PPL said. The companies said the license applicants would be PPL Nuclear Development LLC, a subsidiary of PPL Corp., and UniStar Nuclear Energy, the Constellation Energy-Electricite de France joint venture. PPL has not yet ordered any long-lead time components, and it has made no decisions about the operating company for the new unit, or even if the unit will be constructed, said company spokesman Dan McCarthy. The new unit, an Areva US-EPR, would be outside the fence line of the existing two-unit Susquehanna plant, McCarthy said. ------------ Defense company VT to acquire BNFL's project services business London (Platts)--19Dec2007 Defense company VT will acquire BNFL's project services business for up to 75 million pounds (US$151 million), the two companies said in separate statements December 18. British Nuclear Fuels plc put its specialist group up for sale in March 2007. Project Services has about 750 employees with technical waste and decommissioning expertise in the nuclear and hazardous waste industries. Project Services reported revenues of 86.9 million pounds in the financial year to March 2007. Its UK involvement includes work on 14 of public sector cleanup body Nuclear Decommissioning Authority's 20 civilian nuclear sites. Internationally, it is working for Electricite de France, Rosatom in Russia and Japan Nuclear Fuels Ltd. VT Group is a defense and support services group. VT Group Chief Executive Paul Lester said VT's purchase of the company will provide VT "with entry to a new market where our core competencies in engineering services and the management of other critical assets for government customers are well suited." The acquisition is scheduled to be completed next month. The final purchase price is dependent on a profitability calculation. ------------ Exelon selects Victoria County, Texas for possible plant Washington (Platts)--18Dec2007 Exelon nuclear has selected Victoria County in Texas as the site for a possible two-unit nuclear plant, the company announced December 18. The site will be referenced in its combined construction permit-operating license application to the NRC. Exelon Nuclear spokesman Craig Nesbit said the company plans to submit the application in September 2008, and will make a "go or no" decision in 2009 on whether to build a two-unit plant at the site. The company said December 11 that it had contracted with GE-Hitachi Nuclear Energy for long lead-time components for possible construction of two new units in Texas using GE-Hitachi's ESBWR design. Thomas O'Neill, Exelon Nuclear's vice president of new plant development, said December 18 that Exelon has made no decision about when or if it will build on the site. Issues that must be resolved before making a formal decision to build include "a solution to used fuel disposal, broad public acceptance of a new nuclear plant and assurances that a new plant using new technology can be financially successful," the company said. ------------ Spot uranium price falls to $90/pound, reporting firms say Washington (Platts)--18Dec2007 The spot price of uranium dropped to $90/pound U3O8, based on lower offer prices by one and possibly several sellers looking to move material within the next 30 days, market analysts said. Both TradeTech and Ux Consulting lowered their spot price indicators to $90. TradeTech, which lowered its price $3, said late Friday that sellers with both U3O8 and UF6 were active in the market and that "mismatches between form and delivery location prompted some sellers to lower their offer prices in order to attract buyers." Ux Consulting, which lowered its spot price indicator $2, said late Monday that the lower offer prices are a result of very limited demand. Some analysts suggested that to attract buyers, sellers may now have to offer prices below $90. That, however, could change if Cameco on Wednesday provides a bearish update on progress at getting its flooded Cigar Lake uranium mine into service. Separately, Westinghouse is said to be offering enriched uranium product for delivery in March 2008 (about 600,000 pounds U3O8 equivalent). Bids are said to be due to the company January 25. The Platts NuclearFuel range for the week was $89-$95/pound U3O8. --Mike Knapick, newsdesk@platts.com ------------ Atomstroyexport begins delivery of nuclear fuel to Iran's Bushehr London (Platts)--18Dec2007 Atomstroyexport began delivering nuclear fuel to Iran for the first core of the Bushehr PWR, ASE said December 17. Atomstroyexport, or ASE, said the first shipment of 163 fuel assemblies and 17 reserve assemblies arrived at the plant site December 16 and the fuel was put into a special storage facility. All the assemblies have enrichment at or below 3.62% U-235. The fuel delivery will be in several shipments spread over about two months. The fuel containers were previously sealed by IAEA inspectors at the fuel fabrication plant at Novosibirsk, and the fuel storage facility is subject to international safety monitoring, ASE's press service said. According to Rosatom Agency, last week Russians and Iranians agreed on the terms and dates for completing construction of the VVER-1000 at Bushehr. Under an agreement between Russia and Iran, the fuel is to be delivered six months before the reactor's commissioning. The agreement also provides that spent fuel is to be returned to Russia. ------------ Congress' spending bill would offer nuclear plant loan guarantees Washington (Platts)--17Dec2007 A fiscal 2008 catch-all spending bill Congress made public late Sunday would offer loan guarantees for new nuclear power plants, but cut funding for US Department of Energy programs to help deal with spent nuclear fuel. The Global Nuclear Energy Partnership, an experimental DOE program that seeks to reprocess nuclear spent fuel by burning it in commercial power reactors, would receive less than half the $395 million the president requested for fiscal 2008. Nuclear energy proponent Senator Pete Domenici of New Mexico, who serves as ranking Republican on the subcommittee that drafted the energy and water development section of the omnibus spending measure, applauded the $179-million allotment. "Just two years ago, DOE only budgeted $67 million for the Advanced Fuel Cycle Initiative," he said Monday in a statement. "Today, the conferees have provided nearly 2.5 times that level." Domenici is the senior Republican on the Senate Appropriations Energy and Water Development subcommittee. Domenici, however, acknowledged that the bill would cut funding for DOE's program to develop an underground repository for high-level nuclear waste at Yucca Mountain, Nevada. Under the measure, the program would receive a $189-million allotment, down from the $494.5 million the department had requested. Domenici predicted that the shortfall would cause DOE to miss its June deadline to submit a license application to the Nuclear Regulatory Commission. But DOE on Monday said the funding reduction would not affect its ability to meet the June deadline. Investors in new nuclear power plants fared well in the bill. Where the House-passed measure would have excluded the technology altogether from its $7 billion loan-guarantee budget, the omnibus measure would provide $20.5 billion to guarantee loans for new nuclear plants only. An additional $18 billion would be provided for other technologies, including renewable energy and energy efficiency, and clean coal. While the proposed spending level far exceeds the Bush administration's $9 billion request, it is smaller than the $45 billion figure that was circulating late last week. --Jean Chemnick, jean_chemnick@platts.com ------------ University of California agrees to pay fine at Los Alamos Washington (Platts)--17Dec2007 The University of California on December 17 agreed to pay a $2.8 million fine stemming from security problems discovered at Los Alamos National Laboratory in October 2006, the National Nuclear Security Administration said. In September, NNSA which oversees US nuclear weapons labs, imposed a $3 million fine on the university after classified information from Los Alamos was discovered in a trailer park during a drug raid. Under the agreement, the university will pay $2.8 million and accept responsibility for the incident, NNSA said. The university also agreed to forgo any further appeals, according to NNSA. The university managed the lab from 1943 until May 2006, when, after a series of security problems, DOE shifted control to a management consortium called Los Alamos National Security, which includes the University of California as well as Bechtel, BWX Technologies and Washington Group International. ------------ Russia Defence Ministry, NRPA sign agreement on nuclear safety London (Platts)--17Dec2007 A bilateral agreement on nuclear safety and radiation protection has been signed by the Russian Defense Ministry's radiation division and the Norwegian Radiation Protection Authority, or NRPA, the Norwegians said in a statement December 14. Although NRPA has long had cooperation with civilian Russian radiation agencies, it is the first time officials there will work with the Russian military. The agreement is intended to help the division meet international nuclear safety and radiation protection standards. ------------ Exelon Nuclear to replace Wackenhut security force Washington (Platts)--14Dec2007 Exelon Nuclear will replace Wackenhut Nuclear Services with an in-house security force at its 10 nuclear plants, totaling 17 units, by July 2008, the company announced December 14. In September, Exelon Nuclear canceled its contract with Wackenhut for security services at Peach Bottom after a former Wackenhut guard publicly released videotapes of 10 guards sleeping or otherwise inattentive while on duty at the plant. The tapes led to an NRC investigation that is ongoing. Wackenhut was informed of the decision December 3 and "pledged full cooperation to ensure a smooth transition," Exelon Nuclear said in a statement. Exelon Nuclear said it has previously "evaluated establishing an internal security operation and performed a comprehensive assessment of Wackenhut's security operations again this fall, concluding that future security requirements could best be met by bringing security management and operations in-house." The latest assessment "found no significant deficiencies beyond those identified" at Peach Bottom, Exelon Nuclear said. Wackenhut said in a statement December 14 that it "remains firm in its commitment to be the premier provider of quality security solutions," and said it will "expedite the implementation" of a new business model at the other US nuclear facilities where it provides security. This model includes, among other elements, "clear accountability for results" and "an enhanced focus on maintaining a safety conscious work environment that encourages employees to voice their concerns," Wackenhut said. The company said that "there have been no security breaches or infiltrations by any terrorist faction" at any Wackenhut-protected facility since the company entered the industry in 1984. ------------