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Re: Record US gas prices breathe life into nuclear power
I saw a few postings saying that utilities are considering both restarting some
mothballed plants and trying to finish uncompleted plants. I'd appreciate it if
RADSAFERS could post any media stories on this.
The opinions expressed are strictly mine.
It's not about dose, it's about trust.
Bill Lipton
liptonw@dteenergy.com
Sandy Perle wrote:
> Record US gas prices breathe life into nuclear power
>
> NEW YORK, Jan 25 (Reuters) - Record high U.S. natural gas prices and
> power blackouts in California this winter have some thinking the
> unthinkable: Tapping nuclear power to meet the country's rapidly
> growing electricity needs.
>
> While no one is expecting a raft of new nuclear power plants any time
> soon -- none have been built here since 1978 -- the recent spike in
> gas prices has put nuclear power back in play.
>
> Nearly every power plant being built here is gas-fired, boosting
> competition for already tight fuel supplies.
>
> "One of the main things holding back nuclear power has been cheap
> natural gas, but with gas prices this high, the nuclear option is
> back on the table. People are running the numbers to see if it makes
> sense," said John Redding at General Electric's <GE.N> GE Nuclear
> Energy division in San Jose, Calif.
>
> Twenty years ago the nuclear industry was plagued by cost overruns
> and safety concerns.
>
> Today, under better and safer management practices, nuclear power
> plants produce electricity about 90 percent of the time at a cost of
> 1.83 cents per kilowatt hour (KWh), outperforming fossil fuels like
> coal, oil or natural gas.
>
> "It does not make much sense to have all your energy eggs in one
> basket. We support a balanced approach to energy policy with a mix of
> fuels," said Vaughn Gilbert, public relations manager of British
> Nuclear Fuel's (BNFL) Westinghouse Electric Co. in Pittsburg, Pa.
>
> Industry experts expect most, if not all, of the nation's 103 nuclear
> plants to extend their operating licenses for 20 years. But some
> utilities are taking a further look at nuclear power, particularly if
> they are able to build at existing sites and use a standardized
> design that could streamline the lengthy licensing process and cut
> construction expenditures.
>
> "The best place to go (to build) is where you already have sites.
> Those communities are generally supportive and the local work force
> is skilled," Westinghouse's Gilbert said.
>
> Westinghouse, one of the nation's largest suppliers of nuclear power
> products and services, had a standardized design for a 600 megawatt
> nuclear plant approved by the Nuclear Regulatory Commission (NRC) in
> 1999.
>
> NO GREENHOUSE GAS
>
> Nuclear plants currently supply about 20 percent of the nation's
> power, with coal still the biggest provider at more than 50 percent.
> Gas comes in third at about 17 percent.
>
> With stricter environmental laws likely to keep upward pressure on
> fossil fuel operating costs, analysts said nuclear power is likely to
> become increasingly competitive.
>
> While the advantages of nuclear have always been obvious to some --
> cheap, stable fuel costs and no greenhouse gas emissions --
> regulatory hurdles that drag out the permitting process and
> environmental concerns over disposing radioactive waste fuel still
> make nuclear a risky option.
>
> But that may be changing.
>
> "The biggest hurdle is the uncertainty in the licensing process and
> we're working with the NRC to ensure that the licensing process is
> more efficient. We also hope to get a decision soon on a nuclear
> waste depository," said Marvin Fertel, senior vice president at the
> Nuclear Energy Institute (NEI), a Washington, D.C.-based policy
> organization for the nuclear power industry.
>
> MAKING A BIG BET ON GAS
>
> There are some 300,000 megawatts of proposed new power generation
> planned for this decade, almost all fueled by gas because it is
> considered environmentally-friendly and plant construction costs are
> cheaper than other alternatives.
>
> A new combined cycle gas-fired plant can can be built for $500-600
> per kilowatt and produce electricity at a total cost of 3.5-4.5 cents
> per KWh, assuming gas prices of $3-4 per million British thermal
> units (mmBtu).
>
> But Henry Hub gas prices last year averaged more than $4 per mmBtu
> and projections for 2001 are in the $5-6 range.
>
> In contrast, a new standard design nuclear plant can produce power at
> about 4.5 cents per KWh assuming capital costs of about $1,500 per
> kilowatt.
>
> Some industry experts said power suppliers may be making a big bet on
> the clean-burning fuel that may not pay off, noting current growth
> rates in production and pipeline capacity may not keep up with
> rapidly rising gas demand.
>
> MIX OF FUELS MAY BE THE ANSWER
>
> GE Nuclear's Redding said a mix of options, including nuclear may be
> the more practical strategy to meet growing electric demand.
>
> "I think what recent experience demonstrates is that there is an
> argument for a portfolio of different fuels. I still leave my
> (nuclear) order book at home, but we've had meetings with several
> U.S. utilities that are exploring their options," Redding said.
>
> New Orleans-based Entergy Corp. <ETR.N> , the nation's third largest
> power producer with more than 30,000 megawatts of generating capacity
> including eight nuclear units, agreed volatile gas prices have put
> nuclear power back in the mix.
>
> "Certainly high gas prices improve the relative economic picture for
> a nuclear power plant. The volatility of gas prices gives validity to
> the need to have a mix of fuels with nuclear as part of it," said
> Diane Park, manager of communications for Entergy Nuclear Southwest,
> adding new nuclear construction was being looked at, but there were
> no definitive plans yet.
>
> But some analysts said deep-seated public concerns about safety may
> be a roadblock to new construction.
>
> "I'm skeptical about the nuclear option. If gas prices stay high,
> utilities are going to look for something else, but it probably will
> be coal first. There's a lot of uncertainty about the public reaction
> to nuclear," said Joe Sannicandro, a director at Massachusetts-based
> consultants Cambridge Energy Research Associates (CERA).
>
> ------------------------------------------------------------------------
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> Director, Technical Extension 2306
> ICN Worldwide Dosimetry Service Fax:(714) 668-3149
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>
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