Nuclear

IAEA’s El-Shanawany joins Lloyd’s Register as nuclear chief

Tue, 29 May 2012 16:35:00 GMT

Lloyd’s Register has appointed the atomic safety expert Professor Mamdouh El-Shanawany as its business leader for new nuclear.

El-Shanawany will help to lead the organisation’s technical support programme for countries looking to expand their nuclear programmes and those who want to develop civil nuclear energy for the first time.

He joins Lloyd’s Register from the International Atomic Energy Agency (IAEA), where he most recently was the agency’s head of safety assessment for the Division of Nuclear Installations Safety. In that global role, he was responsible for strengthening the ability of IAEA member states’ to assess the safety of their nuclear installations. The team were awarded the Nobel Prize for Peace in 2005.

“Our industry is growing more complex,” said Prof El-Shanawany. “Demand for safe and sustainable energy supply and the introduction of new nuclear reactor designs and plant technology is driving change. Owners, operators, builders and regulatory authorities require independent assurance and verification during the design development and construction phases – as well as in-service.”

Prior to joining the IAEA, El-Shanawany worked for the UK’s Nuclear Installations Inspectorate, where he was responsible for managing, assessing and approving the licensees’ arrangements and safety cases for operating plants.

EDF and Centrica deliver blows to UK nuclear

Tue, 29 May 2012 10:39:00 GMT

French nuclear company EDF has put on hold plans for a new power station in the UK, plunging Britain’s atomic agenda into fresh doubt.

EDF was due to take a decision on the civil engineering contract for Hinkley Point in England in the past week, but it was revealed at the weekend that it has deferred the decision until next year at the earliest.

It is now believed that the earliest that the new reactor will be built will be in 2021, which is four years later than the UK government had hoped.

The news comes as Centrica – owner of British Gas and EDF’s partner in the consortium to build Hinkley Point – also said this week that it was concerned that the government’s plans for paying for nuclear power may breach European Union rules on state aid.

Under its Electricity Market Reform, the government intends to offer contracts for difference (CfDs) to generators of low carbon energy – basically a guaranteed fixed price.

However precise details of these payments are not due until next year and in the interim, power producers are being offered ‘letters of comfort’ to act as a stop-gap until the CfDs kick in.

But Centrica is wary that this arrangement may EU breach state aid regulations and has said it cannot make any firm commitment until it knows what it might be paid and when.

Earlier this month UK Energy Minister Charles Hendry conceded that the CfD’s could fall foul of European state aid rules.

He told the UK’s Energy and Climate Change Committee that the mechanism which the industry wanted was undeliverable under EU rules.

“We have put forward a package which we believe most complies with EU requirements, while industry has other thoughts, and we will try to find a balance that gives certainty and comfort to investors,” he said.

But committee chairman Tim Yeo said: “There will be serious alarm politically if it appears that some interpretation of EU state aid rules prevents Britain from having the best market structure.”

The news this week from EDF and Centrica could not come at a worse time for the government. In March, German companies RWE and E.ON pulled out of the Horizon nuclear project to build new reactors in the UK, citing financial constraints in their native country, constraints caused by hefty early decommissioning costs brought about by the Merkel government’s decision to withdraw from nuclear power following the Fukushima disaster. With Francois Hollande taking the presidency in France – following strong anti-nuclear sentiment from him during his election campaign – there is concern that any drive to shut French reactors early will hit the pockets of EDF and in turn scupper the company’s spending plans in Britain.

Since the RWE/E.ON decision, Hendry and his boss, Energy Secretary Ed Davey, have tried to calm fears that the wheels are coming off the UK nuclear new build programme by stressing that the EDF-Centrica consortium is on-board and set to deliver on time.

RWE and E.ON are looking for new buyers to step in to the Horizon project, with interest said to be coming from Russia and China.

Minister says up-for-sale Horizon is a ‘prized asset’

Thu, 24 May 2012 14:32:00 GMT

UK energy minister Charles Hendry today visited the headquarters of Horizon Nuclear Power, the project now seeking new owners after its founders – RWE and E.ON – pulled out of the programme.

Since the two German firms quit the project in March citing financial constraints, Horizon has continued operating at its base in Gloucester, England, while RWE and E.ON look for new backers.

Horizon was set up to build two new nuclear power plants at Wylfa in Wales and Oldbury in England.

Hendry said: “Horizon Nuclear Power represents an extremely attractive investment opportunity. Horizon’s team is a prized asset. A group of very talented and experienced staff who have worked extremely hard over the past three years to make Wylfa and Oldbury two of the most attractive sites in Europe to invest in new nuclear.

“While this is a commercial process, I am confident everyone involved is working to ensure a swift sale can be achieved, which will protect the jobs of those working here.”

He said there has already been “strong interest” in Horizon. Already it is known that companies in Russia and China are eyeing the project and last week Hendry told the UK’s Energy and Climate Change Committee that the government had no objection in principle to players from those countries moving into the UK market.

Germany has ‘Herculean task’ to make energy policy work says new environment minister

Wed, 23 May 2012 14:52:00 GMT

Germany’s move away from nuclear in favour of renewable energy has been described as a “Herculean task” by the country’s new environment minister Peter Altmaier.

Altmaier took up his post on Tuesday after Chancellor Angela Merkel last week fired his predecessor, Norbert Roettgen, after he took the blame for a heavy regional election defeat for the Christian Democrats party.

He said that Germany’s new strategy – decided in the wake of the Fukushima nuclear disaster last year – was “a Herculean task, but it is achievable”.

He was speaking as Merkel met with the leaders of 15 other European states to thrash out her energy blueprint and its implications on other countries. Their agenda was believed to include talks on wind and solar power, grid upgrades and possible sites for storing nuclear waste.

The push to significantly boost renewable power has met with industry opposition in Germany, with transmission companies in particular stating that they cannot keep pace with the urgency to integrate wind and solar power into the grid.

Ansaldo Nucleare boss shot by masked gunman

Wed, 23 May 2012 13:58:00 GMT

The boss of Italian nuclear engineering company Ansaldo Nucleare was shot as he left his home this week.

Roberto Adinolfi was hit in the leg by a shot fired by a gunman wearing a motorcycle helmet who escaped on a stolen moped.

Adinolfi's right knee was fractured but he is not in a serious condition.

The attack harks back to shootings carried out by the Italian Red Brigades in the 1970s, when the terrorist group tried to destabilise the government by kidnapping and sometimes murdering businessmen and politicians. During this time, three executives at companies in the Ansaldo group were executed and another kidnapped.

Controversial US NRC chairman stands down

Mon, 21 May 2012 15:54:00 GMT

Chairman of the Nulcear Regulatory Commission in the US, Gregory B. Jaczko, has announced his resignation, after a stormy three year tenure.

The New York Times reports that Jaczko’s time had been marked by bitter battles with colleagues and with Congress, after he helped to kill a proposal for a nuclear repository and worked to address longstanding safety problems.

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EDF boss stresses UK nuclear commitment

Mon, 21 May 2012 10:33:00 GMT

The boss of French nuclear giant EDF’s UK arm, Vincent de Rivaz, has said the UK is “demonstrating consistency and continuity” in its nuclear policy.

And he also stressed that EDF (Euronext: EDF) is committed to building new plants in the UK following the withdrawal of RWE and E.ON from the Horizon nuclear programme.

EDF, in partnership with British Gas owner Centrica, has invested �650m so far in proposals to build new nuclear power stations in the UK, beginning with Hinkley Point.

De Rivaz said: The current, and I hope temporary, uncertainty around Horizon puts even more emphasis on getting Hinkley Point across the finish line.” He said he hoped that this would be done by the end of the year and vowed: “We will not be distracted.”

If there be to be a distraction to EDF’s plans, it is likely to come from its home country, where the energy industry is waiting to see what plans new president Francois Hollande has for the nuclear sector.

Any proposals for early decommissioning will hit the pockets of EDF – it was this scenario following the Merkel government’s decision to abandon nuclear that left RWE and E.ON without the cash to carry on with the Horizon project.

And de Rivaz said that any potential buyer of Horizon – and talk so far has centred around interest from Russia and China – must have a “need to protect and nurture four precious attributes for the success of new nuclear in the UK:cross party consensus; widespread public acceptance; a strong, credible and independent safety authority; and an engaged UK supply chain”.

Meanwhile, EDF is to open visitor centres for all of its nuclear power plants in the UK, in a move it says will improve public accessibility.

“EDF Energy is committed to improving the transparency and openness surrounding our nuclear operations,” said Jim Crawford, Sizewell B power station director, adding that he expects 7500 and 10,000 visitors each year.

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Lithuanian nuclear plant runs into further trouble

Thu, 17 May 2012 14:54:00 GMT

There was further bad news for the 1300 MW Visaginas nuclear power plant in Lithuania, as the project is now predicted to cost $2.6bn more than originally expected.

The plant will now cost in the region of $8.7bn, according to a statement from the government's Ministry of Finance, having previously been estimated to cost $6.2bn.

Last month, the project took a positive step forward when the government signed a Concession Agreement with Hitachi Ltd.

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Merkel dismisses environment minister

Thu, 17 May 2012 10:13:00 GMT

German Chancellor Angela Merkel has dismissed her Environmental Minister, Norbert R�ttgen.

AFP reports that in an unusual, hastily arranged statement on national television, Merkel said she had spoken to President Joachim Gauck “to ask him to release Norbert Roettgen from his functions as environment minister to allow a change in personnel”.

She added that Germany’s “Energiewende” policy, the term used to describe both the end of nuclear power and the promotion of renewable energy sources, was a key plan for this legislative period, but that work remained to be done.

Roettgen was criticized for failure to form a consensus amongst coalition parties to enable changes on the renewable energy act pass through the Upper House last week.

More crucially R�ttgen led the conservative party in the election last Sunday in North Rhine-Westphalia and thus was made responsible for the big losses the party suffered there.

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EU state aid threat to UK electricity reform

Wed, 16 May 2012 16:23:00 GMT

UK Energy Minister Charles Hendry has conceded that part of the government’s Electricity Market Reform plans could fall foul of European Commission state aid rules.

A cornerstone of the EMR – which is designed to stimulate growth in low carbon power generation – is a contracts-for-difference mechanism, by which operators of new plant get a guaranteed price for the electricity they generate. That price would differ between types of generation, be it nuclear, gas or a form of renewables.

But Hendry told the UK’s Energy and Climate Change Committee that the mechanism which the industry wanted was undeliverable under EU rules.

“We have put forward a package which we believe most complies with EU requirements, while industry has other thoughts, and we will try to find a balance that gives certainty and comfort to investors,” he said.

Committee chairman Tim Yeo was aghast: “There will be serious alarm politically if it appears that some interpretation of EU state aid rules prevents Britain from having the best market structure,” he said.

“Why on earth does this rather important aspect of our quite sensible market reform run foul of the European Commission?”

“We are putting it forward in a way in which we believe it won’t fall foul of those rules,” replied Hendry.

Earlier the minister had outlined how the race was on to find new backers to replace RWE and E.ON in the Horizon nuclear project. In March the companies bailed out of the programme to build two new nuclear reactors in the UK, citing financial constraints in their native Germany.

Hendry said the decision by the firm’s was “certainly disappointing, but I don’t think it derails the government’s nuclear programme”.

He said the sale of Horizon “needs to happen soon” and it would not matter to the government if a buyer came from within or outside the EU.

Any potential investor needs to meet al of our safety and security concern. They must have experience of nuclear generation.

“What we are looking for are companies with experience and expertise in the sector,” he said, adding that there was no objection in principle to players from Russia, Japan or China coming in to the UK market.

The committee, which was meeting to discuss the future of nuclear new build in Britain, heard evidence from Volker Beckers and Tony Cocker, the chief executives in the UK of RWE and E.ON respectively, and Beckers stressed that there was “no question of the decision being reversed”.

Cocker said that the decision to withdraw from Horizon was not influenced at all by any concerns over the UK government’s plans for electricity reform, stating: “We believe the investment framework in the UK is one of the best in Europe – or the best in Europe.”

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Head of EDF says Hollande will not upset UK nuclear plans

Wed, 16 May 2012 11:39:00 GMT

Vincent de Rivaz , the head of EDF Energy (Euronext: EDF), has rejected predictions that France’s new president could force it to ditch its big investment in new nuclear reactors in the UK.

“Our plans in the UK are not going to be impacted by the change in France,” said de Rivaz, chief executive of EDF Energy, the UK subsidiary of the French utility Electricite de France, in an interview quoted in the FT. “There’s nothing in what Mr Hollande said in his campaign to suggest that they will.”

With its partner Centrica, the owner of British Gas, EDF intends to build two nuclear reactors at Hinkley Point in Somerset by 2019.

However during his election campaign, Mr Fran�ois Hollande proposed reducing the country’s dependence on nuclear power from 75 per cent to 50 per cent and shutting 24 of France’s 58 reactors by 2025.

Following pull-outs by Eon and RWE from commitments to UK nuclear reactor builds a further opt out by EDF would represent a serious blow to the UK nuclear strategy.

Despite the new president’s anti-nuclear rhetoric, Mr de Rivaz said he was confident Mr Hollande would back EDF’s plans. “This project is a formidable opportunity for French and British industry,” he said.

But he added that 2012 would be a “defining year” for British nuclear power, and it was crucial to keep up reforms of Britain’s electricity market to make it more attractive for renewables and nuclear investments. “A lot remains to be done,” he said.

The UK government included a new energy bill in last week’s Queen’s Speech that provides incentives for low carbon generation.

The bill would create “contracts for difference” – top-up payments to nuclear and renewables operators if wholesale power prices fall below an agreed strike price.

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Japan backtracks and re-starts two nuclear reactors

Tue, 15 May 2012 11:45:00 GMT

A Japanese town’s local assembly has voted in favour of enabling a nuclear power plant to re-open.

Ohi, a town that hosts a nuclear plant agreed it was necessary to restart two off-line reactors, its chairman said, the first such nod since all the country’s stations were halted after the Fukushima crisis.

But further discussion lies ahead before two reactors at Kansai Electric Power Co’s Ohi plant in western Japan can be reconnected to the grid, reports City AM.

With power shortages looming in the region when demand peaks this summer, the central government has been trying to win approval from towns and prefectures that host reactors.

The government is working on an energy mix policy it hopes to unveil this summer, replacing a programme that had aimed to boost the share of atomic power to more than 50 per cent by 2030.

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E.ON to shut down unprofitable gas plants

Tue, 15 May 2012 10:21:00 GMT

German utility E.ON AG FWB: EOAN plans to shut down three large gas-fired power plants in southern Germany, because the plants don't operate profitably.

In total, E.ON plans to permanently shut-down gas power generation capacity of around 1500 MW, the Financial Times Deutschland has reported.

It adds that the E.ON plans could have serious consequences in terms of security of supply for southern Germany, where power generation capacity is relatively scarce following last year's decision by the federal government to accelerate the planned nuclear energy exit.

Overall, German power generation capacity is adequate in terms of meeting demand, but power grid capacity to transport the electricity to customers is limited at present

The FTD also says that E.ON is in talks with the German energy grid regulator--the Bundesnetzagentur--over the possibility of retaining the three power plants that the company wants to shut down as reserve capacity.

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Power CEO says European energy policy is self-destructive

Mon, 14 May 2012 09:33:00 GMT

The new CEO of Franco-Belgian Solvay, has accused Germany, France and Belgium of acting in isolation on nuclear and gas policy and failing to come up with a coherent strategy to keep Europe’s companies competitive.

In an interview with the Financial Times, Jean-Pierre Clamadieu says European failure to replicate the US approach is seeing the continent lose ground.

Soaring energy costs and the failure of the continent’s governments to be “rational” about nuclear power and shale gas, the head of one of the world’s biggest chemicals groups has warned.

The chief executive of one of Europe’s largest power groups told the FT that the continent’s political leaders were paying “zero attention to competitiveness” when deciding energy policy.

Natural gas in the US is three times cheaper than in Europe because of its decision to exploit shale gas through the environmentally-controversial process of “fracking” – the high-pressure injection of water and chemicals to free up trapped gas.

“The fact that energy is cheap in the US, and probably will be for a long time, is changing the game,” Mr Clamadieu said. “Electricity’s getting more and more expensive in Europe, and some of the decisions that have been announced regarding nuclear energy production will certainly move the price in the wrong direction. For industry this is really a concern.”

He added that US industry’s advantage on energy prices also meant “you can’t just close the book and say we’ll never look at whether Europe has shale gas”, despite vocal environmental opposition.

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Lithuania to build new nuclear power plant

Thu, 10 May 2012 12:47:00 GMT

Lithuania's government have given its final approval to the development of a new nuclear power plant which could cost up to $9.10bn to build.

Reuters reports that the nuclear plant is just one of several plans aimed at reducing its dependency on Russian energy sources.

Lithuania has already initialled an outline plan for a 1350 MW nuclear power plant with Hitachi-GE Nuclear Energy with an aim to build it by 2020-2022.

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China look to solar power nuclear free Japan

Thu, 10 May 2012 09:58:00 GMT

With Japan opting out of nuclear power following Fukushima, Chinese solar producers are keen on exploiting the gap in power generation in the country.

At least five Chinese solar panel manufacturers, including Hebei-based Yingli Green Energy, Jiangsu-based Hareon Solar Technology Co. Ltd. and Shanghai-based Chaori Solar Energy Science & Technology Co. Ltd, have set up offices in Japan since the beginning of 2012, state-run news agency Xinhua reports.

The end of nuclear reactors in Japan "will definitely give the Chinese photovoltaic industry a new opportunity," Wang Liusheng, an analyst with China Merchants Securities, told Xinhua.

Wang said the Japanese government is expected to adopt an electricity consumption subsidy policy this year, a step he says would make Japan "a very attractive market" for solar, reports UPI.

Meanwhile Greenpeace have called for Japan's solar power and wind energy generation to increase from the current level of 3500 MW to 47200 MW by 2015.

Last year Japan ranked fifth in worldwide installed photovoltaic panel module capacity, accounting for about 5 per cent of the world's 24 GW solar power installed capacity, says IMS Research.

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Brazil decides to opt out of nuclear until at least 2020

Thu, 10 May 2012 09:35:00 GMT

Brazil has announced that no new nuclear power plants are to be built in the country for at least the next ten years.

Marcio Zimmermann, Executive Secretary of Brazil's Ministry of Mines and Energy, was quoted as saying at a public meeting that a moratorium will be in place on nuclear build during this time.

RTT reports that the government expects that power demand for the coming years can be met by hydro-electric power generation, and complementary energy sources such as wind, thermal and natural gas.

"The 2021 plan, as far as I know, will not consider nuclear power stations either," he added, although he did not rule out construction of such facilities in the longer term.

Brazil's former President Luiz Inacio Lula da Silva had plans to build some 50 nuclear reactors, while the current Dilma Rousseff government shelved her predecessor's nuclear ambition.

Nuclear energy constitutes just around three percent of the total power generation in Brazil, which relies overwhelmingly on hydro-electric projects.

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Japanese government in $12.5bn Tepco takeover

Wed, 09 May 2012 16:22:00 GMT

Beleaguered Tokyo Electric Power Co, owner of the Fukushima power plant, will be taken over by the Japanese government after a $12.5bn bailout was approved today.

Without state intervention, Tepco – Japan’s biggest utility which supplies power to 45 million people – would certainly collapse.

The bailout money means that since the Fukushima nuclear power plant disaster last year the government has pumped more than $36bn into Tepco.

“Without the state funds, Tepco cannot provide a stable supply of electricity and pay for compensation and decommissioning costs,” Trade and Industry Minister Yukio Edano said after approving the bailout.

The government will have more than half of Tepco's voting shares, according to the plan approved by Edano. It will also take convertible stock that, when converted, will increase the government's control to more than two-thirds.

Tepco chairman Tsunehisa Katsumata will be replaced by a government-chosen official. Already this week the company has appointed a new president - Naomi Hirose's – the second since Fukushima.

Japan currently has no operational nuclear plants, following a wave of safety checks in the wake of last year’s reactor disaster.

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E.ON records positive first quarter

Wed, 09 May 2012 16:07:00 GMT

German utility E.ON (FWB: EOAN) has turned around its heavy losses of a year ago by posting a positive first quarter performance to 2012.

The Dusseldorf-based company increased its EBITDA by 9 per cent year on year to around €3.8bn ($4.9)and its underlying net income by 27 per cent to around €1.7bn.

“As we described in March, we’re now past the worst,” said chief financial officer Marcus Schenck. “Our first-quarter results confirmed this trend. We’re making good progress. But we still need to be resolute about meeting our current challenges and implementing the changes we’ve initiated.”

E.ON’s sales rose by 28 per cent year on year to €35.7bn, owing in particular to higher sales in the Optimization & Trading segment. The renewables, German, and Russian segments also posted higher sales. Sales were significantly lower in the generation segment due to the absence of output from nuclear power stations in Germany that were shut down in 2011 after the Merkel government decision to withdraw from nuclear power.

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French nuclear future uncertain under new president

Wed, 09 May 2012 10:52:00 GMT

The election of Fran�ois Hollande as president of France has led to uncertainty about the future of the nuclear power sector in the country.

During his campaign Hollande, who takes over from Nicolas Sarkozy, had pledged to reduce France’s dependence on nuclear power.

Nuclear Engineering International reports that the new president wanted to reduce the share of nuclear energy in the power supply to 50 per cent from 75 per cent by 2025, and promised to close the ageing Fessenheim nuclear plant.

If Hollande is good to his word it could mean difficult times for the nuclear sector for firms such as EDF and Areva.

“A victory by Francois Hollande in the French Presidential election means a more uncertain outlook for EDF than under a maintained Sarkozy government. With the campaign promise to shut the Fessenheim nuclear plant in the next five years, there is now an earnings overhang on our forecasts,” analysts from Goldman Sachs told the Wall Street Journal.

Shares in EDF were down 3 per cent on the news of Hollande’s victory.

The French nuclear regulator, ASN, has given EDF permission to run the 900 MW Fessenheim 1 reactor for a further ten years provided it carries out works to improve the reactor building foundations before June 2013.

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