Platts - Friday, March 28, 2008 http://www.platts.com ------------ Swedish SKB plans 12,000 mt nuclear storage site: report London (Platts)--28Mar2008 Swedish radioactive waste company SKB plans to build a nuclear waste storage site in Oskarshamn, southern Sweden, the northern German regional newspaper Ostseezeitung reported Friday. According to the report which cites company sources, the storage site is to have a capacity for 12,000 mt of highly radioactive waste and it is planned to store the waste of 10 Swedish nuclear power plants as of 2018. The report also said another site is being considered in Forsmark, 150 km north of the capital Stockholm. ------------ NRC cites Callaway for security guard violation Washington (Platts)--27Mar2008 NRC cited Callaway for a "deliberate" violation by a security guard at the AmerenUE plant. According to a March 20 letter, released March 27, the former employee of security contractor Wackenhut Corp. willfully violated NRC requirements. The guard, who was armed, "was aware of being drowsy and was aware of the direction provided by Wackenhut Security Services that when drowsy, he should stand up or call for assistance, but he decided to do neither," the letter said. NRC said it is taking "escalated enforcement" action in response to the violation. Escalated enforcement can include civil penalties such as fines. According to the letter, details of the violation are contained in a notice of violation, an inspection report, and a report by NRC's Office of Investigations, but those documents were not released. ------------ Uranium explorer Bannerman lists on Namibian Stock Exchange Barcelona (Platts)--27Mar2008 Uranium exploration company Bannerman Resources will list on the Namibian Stock Exchange April 2, the company said Thursday. Perth, Australia-based Bannerman will be listed on the "mining" sector of NSX's Development Capital Board. Bannerman, which already is listed on the Australian and Toronto stock exchanges, plans a bankable feasibility study this year on the Goanikontes uranium deposit in Namibia, with production targeted for 2011. The Goanikontes deposit is adjacent to the Rio Tinto-controlled Rossing uranium mine in Namibia. Bannerman said its NSX listing will affirm its commitment to Namibia, its people and economy and enable Namibian investors the opportunity to participate in the company's projects. Bannerman also has a uranium project in Botswana and an exploration license in Australia. --David Stellfox, david_stellfox@platts.com ------------ Britain is model for new nuclear, says Spanish nuclear lobby Barcelona (Platts)--27Mar2008 Britain's decision to renew its nuclear generation park should be a model for Spain, Spanish Nuclear Forum president Eduardo Gonzalez Gomez said Thursday. He said that the example of the UK, a country with an advanced economy that is dependent on imports of energy resources, is applicable in Spain where imported energy dependency reaches 85% and energy consumption is increasing at 3%/year. Energy planning in the UK is based on two principles, Gonzalez said in a statement, combating climate change and ensuring the supply of electricity on a competitive basis. To answer these needs the UK has decided to build new nuclear plants using the latest technology reactors, Gonzalez said. The political support and consensus among the different parties that have been instrumental in undertaking this new energy strategy in the UK showed that agreement on matters of national interest was possible, Gonzalez said. The Socialist government in Spain, re-elected earlier this month, opposed new nuclear construction and has promised to replace the country's eight existing nuclear units with "cleaner, sustainable" options at the end of their useful lives. --David Stellfox, david_stellfox@platts.com ------------ UK net gas imports jump 74% to 20.3 Bcm in 2007: government data London (Platts)--27Mar2008 The UK's net imports of gas jumped to 20.3 billion cubic meters in 2007, an increase of 74% on the year, according to statistics published by the government Thursday. The Department for Business Enterprise and Regulatory Reform said the UK produced 79.56 Bcm of gas last year, 9.5% less than in 2006. Gas exports rose 2.1% to 11.64 Bcm, but this was outweighed by a 38.5% jump in imports to 31.95 Bcm. The UK's total gas demand was up 1.5% on the year to 100.4 Bcm. Some 33.72 Bcm of this demand came from power generators, a 15.2% rise on 2006 figures and a new record level, 5% above 2004's previous high. Gas consumption by the domestic sector fell 4.3% in 2007 to 32.98 Bcm. Gas-fired power plants produced the most power in 2007, at 161.7 TWh, a 17% rise on the previous year. Coal-fired power accounted for 129 TWh of output, a 9.6% decrease on the year. Nuclear output was also down, falling 17.3% to 57.3 TWh in 2007. The UK's power demand fell by 0.4% in 2007 as a whole compared with 2006. Non-business use was down 0.8%, industrial use was up 0.1 per cent and consumption by other final users was down by 0.4%. ------------ Tepco: Operation of four new reactors delayed a year Washington (Platts)--26Mar2008 Commercial operation of four new nuclear units will be delayed by one year, Tokyo Electric Power said March 26. Tepco said in its fiscal 2008 business management plan that the new dates for commercial operation for Fukushima Daiichi-7 and -8 are now October 2014 and October 2015, respectively, and for Higashidori-1 and -2, December 2015 and fiscal 2018 or later, respectively. At the same time, Tepco said it was moving up the commissioning of two coal-fired units by one year and one LNG unit by four years. Tepco is currently struggling to bring the seven-unit Kashiwazaki-Kariwa nuclear station back into service, following last July's earthquake. Separately, Japan's Ministry of Economy, Trade and Industry announced March 25 that it had accepted unspecified "corrections" to the application for J-Power's Ohma nuclear power plant in Aomori prefecture, which unconfirmed news reports said would delay construction start of that reactor, an ABWR, until May because of seismic safety evaluations by the Nuclear Safety Commission. The news reports said J-Power still hopes for a 2012 commissioning of that unit. ------------ UK nuclear power revival could be UK's new North Sea: minister London (Platts)--26Mar2008 Britain's plans to build a new generation of nuclear power plants could turn into "the most significant opportunity for our energy economy since the exploitation of North Sea oil and gas," Business Secretary John Hutton said Wednesday. But Hutton acknowledged that the United Kingdom faced tough competition for new nuclear investment from such countries as the United States, China, India and France. "Getting companies to commit real cash--billions of it--at a difficult time for the global banking system will be the most important test of our resolve," Hutton said in a speech to the Unite trade union. He added, however, that there was interest from potential investors, generated in part by Britain's "competitive" energy market, which was already "delivering essential infrastructure investment" to ensure security of energy supply and which he said now offered the UK its best chance to make new nuclear a reality, on time and to budget. "In recent months, I've met with potential investors from the US, Europe and Japan. And there are powerful signals from them and others in the industry that the UK is now one of the world's most viable new build markets," Hutton said. "Their interest is built, in part, on the openness of our energy market and our strong commitment to work with business to help make new nuclear happen in the UK." Hutton said replacing the UK's existing nuclear capacity alone could equate to around GBP 20 billion ($39.96 billion) worth of business for British companies. Furthermore, he said, "with no artificial cap to constrain the potential of new build in the UK, there is every reason to believe that the industry could be contributing a significantly higher proportion of the UK's energy in the decades ahead." Hutton said the issues of energy security and climate change should "provide the push for a significant expansion of nuclear in the UK in the coming decades," though he did not say what "significant" meant in terms of the percentage of UK power generation accounted for by nuclear, currently around 19%. The UK in January gave the go-ahead for a new generation of nuclear power stations that would be funded by energy companies rather than government. Hutton said at the time that he did not intend to set an "artificial cap" on the proportion of electricity generated either from nuclear power or from any other source of low carbon energy because "that would not be consistent with our long-term national interest." Hutton also said in January that he hoped the first new plant would be built "well before 2020." In an interview with the Financial Times newspaper earlier this month, he said the first new plant could be operational by 2017. Earlier this month, Britain published its first-ever National Security Strategy, listing increasing competition for energy supplies as one of the threats the country faces in the future. Competition for energy, the document said, "is one of the biggest potential drivers of the breakdown of the rules-based international system and the re-emergence of major inter-state conflict, as well as increasing regional tensions and instability." UK oil output has been falling steadily since reaching a peak around the start of this decade, with the country becoming a net importer in the second half of 2005, according to official government data. Gas production is also in decline and the UK became a net importer of gas in 2004. Production of oil and gas peaked at a combined 4.5 million b/d of energy equivalent in 1999 before declining to 2.94 million boe/d in 2006, according to figures provided by UK Oil & Gas, formerly known as the UK Offshore Operators' Association. The drop in oil production has been particularly steep, from a 1999 peak of 2.85 million b/d to 1.61 million b/d in 2006. The National Security Strategy document noted that Britain was "encouraging investment in nuclear facilities" for energy production, although it added that "this has security implications of its own." ------------ Russia, Egypt sign nuclear cooperation agreement Washington (Platts)--25Mar2008 Russia and Egypt signed a nuclear cooperation agreement March 25, setting the legal basis for Russian companies to tender for construction of a nuclear power plant in Egypt, Russian state corporation Rosatom said. The accord was signed by Sergey Kiriyenko, director general of Rosatom, and by Hassan Younes, Egypt's minister of electricity and energy, during the visit of Egyptian President Hosni Mubarak to Moscow. The RIA Novosti wire service quoted outgoing Russian President Vladimir Putin as saying the deal "opens up new horizons for bilateral cooperation." Mubarak was quoted as saying Egypt would develop nuclear energy with "our international partners" and the IAEA. Ria Novosti said the agreement envisions Russian help in training nuclear facility staff in Egypt as well as supply of nuclear fuel. Egypt is expected to launch a tender for its first nuclear power plant this year. ------------ US, Bahrain sign MOU pledging to cooperate on nuclear energy Washington (Platts)--25Mar2008 The US and Bahrain have signed a memorandum of understanding on nuclear energy, the US Department of State said in a statement Monday. The MOU gives "tangible expression" to the US' desire to support countries that "serve as models for the responsible pursuit of the benefits of nuclear technology," the statement said. State said that Bahrain said in the MOU it would "forgo sensitive fuel cycle technologies"--a term that covers uranium enrichment and spent-fuel reprocessing--and rely on existing international markets for nuclear fuel. The MOU was signed by Secretary of State Condoleezza Rice and Sheik Khalid, the foreign minister of the Persian Gulf island nation. --Daniel Horner, daniel_horner@platts.com ------------ Ur-Energy resubmits uranium recovery application to NRC Washington (Platts)--24Mar2008 Ur-Energy Inc. resubmitted an application March 20 to the NRC to operate an in-situ uranium recovery facility in Wyoming, the company said March 24. Ur-Energy submitted an application in October 2007 to extract uranium ores using in-situ recovery, or ISR, at the Lost Creek property, according to NRC. But the company voluntarily withdrew the application in late February to change its operational plans based on changes in radiation protection technology. Ur-Energy spokeswoman Dani Wright declined to discuss the updates but said March 24 that the facility would be operational by the end of 2009. Wright said the Lost Creek facility, which she described as a small-to-moderate operation, has about 9.8 million pounds of uranium ores that "we believe are minable." ------------ India premier says government will expand nuclear energy New Delhi (Platts)--24Mar2008 Indian Prime Minister Manmohan Singh, who has championed the proposed civil nuclear cooperation deal with the US, on Monday said his government was commited to develop nuclear technology to ensure energy security. "We must widen our energy basket to ensure energy security," Singh said. "Our government is committed to further development of nuclear energy both as an environment-friendly source of power and as a means of widening the energy basket available to us." He made the comments on the outskirts of New Delhi to mark the start of the Phase-III expansion of the 1,500 Mw Pragati Power Corp. gas-fired power plant. State-run Petronet LNG Ltd. will arrange the LNG for the power plant. "We do not have the luxury of depending on only one or two sources," Singh said. "Our energy needs are bound to grow. We will be failing in our duty to our nation, and to posterity, if we do not look ahead and take steps not just for today or tomorrow, but for future generations." Singh said he strongly supports the need for India to sign a nuclear cooperation deal with the US and reach an accord with the International Atomic Energy Association to end the global ban on the transfer of nuclear technology to India. The communist and left-front parties, which provides the crucial legislative support to Singh's government, has opposed any nuclear deal with the US, saying it would withdraw the legislative support if the government signs such a deal. --Shiva Lingham, newsdesk@platts.com ------------ TVA seeks extension of Watts Bar-2 construction permit until 2013 Washington (Platts)--20Mar2008 The Tennessee Valley Authority is seeking to extend until March 31, 2013 the construction permit for the Watts Bar-2 nuclear reactor. TVA, which has decided to finish the unit, says it expects to complete construction and request an operating license before April 2012. Its goal is to have the reactor at full power by October 2012. The US Nuclear Regulatory Commission approved the federal utility's 1999 request to extend the construction permit until December 31, 2010. TVA said in a March 6 letter, which the NRC released Wednesday, that the extension would provide it time for any needed schedule adjustments. ------------ LME exploring possible launch of physical uranium contract Barcelona (Platts)--20Mar2008 The London Metals Exchange is exploring launching a physical uranium contract that could involve setting up a storage area for traded uranium. According to industry sources, global mining giant BHP Billiton is one of the companies that have approached the LME about setting up a contract. One major issue yet to be addressed is where the product would be stored. Uranium is currently sent from mines around the world to one of the several major commercial uranium conversion facilities in Europe, Russia and North America. Because nearly all uranium for nuclear power plants is funneled through one of these conversion facilities, some market players believe the conversion operators have too much market information. They believe an LME contract would help jump-start the moribund uranium spot market, but add that if a uranium market is to develop as have other commodity markets, there will need to be a level playing field for all participants. Except for Springfields in the UK and the ConverDyn facility in the US, the major conversion facilities are run by companies that also are big players in the uranium market, such as Cameco, Areva and units of Russia's Atomeneregoprom. To overcome market edge, industry sources said LME is exploring establishing a "neutral" uranium storage area to ensure the market is not dependent on uranium stored at the world's few conversion facilities or at mines. The sources added that industry backers of the idea are shopping for a storage area in the UK. At least one of the sites said to be under consideration is an old conversion facility once operated by British Nuclear Fuels, and now by Westinghouse, at Springfields in Lancashire, England. "They have heaps of storage space at Springfields," one source said. Westinghouse spokesman Vaughn Gilbert said Wednesday that he had no knowledge of any discussions about use of the site for uranium storage. --David Stellfox, david_stellfox@platts.com ------------