White House Chronicle

News Analysis With a Sense of Humor

Rare Earths Are a Crisis of Government Neglect

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An old adage says “a stitch in time saves nine.” Indeed. But it is a lesson seldom learned by governments.

As you struggle through TSA screening at the airport, just consider this: It didn’t have to be this way. If the government had acted after the first wave of airplane hijackings in the early 1960s, we might never have had the Transportation Security Administration.

The government and the airlines should have done something very simple: Put locks on the cockpit doors. It was discussed among the airlines, at the Federal Aviation Administration, and at the White House Office of Science and Technology.

Then came Sept. 11, 2001, and governments acted. Massively — even too much too late.

When it comes to the emerging crisis over rare earths, whose supply and processing is almost totally controlled by China, successive administrations have sighed and done nothing. 

As the uses for rare earths have increased dramatically, the calls for the United States to do something to alleviate this dependence have been constant and loud. Action hasn’t corresponded.

The modern world runs on the 17 rare earths which are great enhancers.

Notable for sounding the alarm has been John Kutsch, executive director of the Thorium Alliance, which promotes the use of thorium as a nuclear reactor fuel.

The need for rare earths is huge in the United States — as is our attendant vulnerability.

“There is no piece of modern technology that does not use rare earths or other technology metals. There are no drones, windmills, electric cars, computers, lasers, radar systems, magnets of quality, or medical devices, which are not 100-percent reliant on China for components using their critical materials,” Kutsch told me.

It is a giant vulnerability and Kutsch and his colleagues have been drawing attention to it for 15 years.

“We have been telling the decision makers in Washington and at the Pentagon for 15 years that China will use rare earths as an economic weapon. And we were always told that they would not. Well, now the U.S. is cut off,” he said.

According to Kutsch, and others, “rare earths aren’t rare at all.” They are difficult to mine and process and, as with much else, it has just been easier and cheaper to import them from China. 

Additionally, production in the U.S. has been hampered because rare earths are found in conjunction with thorium. Thorium is a fertile but not fissile nuclear material. That means that it can’t be used in a reactor, without having the reaction initiated by a fissile material, like uranium.

But its classification as a nuclear source material means it must be inventoried and stored as a nuclear material and is classified by the Nuclear Regulatory Commission as such. This makes mining and processing rare earths challenging and expensive in the U.S.

Kutsch lamented, “Every year, Florida produces enough rare earth ore to supply the western world’s needs. We choose not to process any of that rare earth material because it would create a small amount of slightly radioactive material.

“So, we have given up on any materials refining in the U.S. and have decided to put our entire economic and national security fate in the hands of our number one adversary.”

Even if the limiting factors of associated thorium were dealt with — a national thorium bank and registry has been proposed — rare earths wouldn’t begin to flow  overnight.

We simply don’t have the expertise in mining but especially in processing rare earths. Hell, it is hard enough to get our mouths around some of the names. Try saying Praseodymium and Neodymium.

The near-future looks like this:

1. We probably have enough stockpiles held by rare earth-using companies to last for several months, but shortages will start appearing after that.

2. The military is believed to have a better stockpile, enough for a year or longer.

3. Users initiate elaborate workarounds, like using a more plentiful but less effective metal.

3. Manufacturers may reduce the size or efficiency of systems that use rare earths, like a smaller motor in an electric car.

The essential role of rare earths is as a multiplier. A wind turbine produces at least five times more electricity because of the use of exceedingly small amounts of rare earths.

What does seem outrageous, is that the U.S. has embarked on a nasty trade war with China without understanding the People’s Republic has a grip below the belt. Ouch!

Big Tech Needs to Step Up and Take the Risk on New Nuclear Plants

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If it gets too hot or too cold for long next year or sometime in the next several years, you may find yourself in the dark, without air conditioning or heat, depending on the nature of the crisis. The electricity system is under stress — more so in some areas than others.

The electricity demand is rising rapidly. Onshoring of manufacturing, EVs (both private and commercial), and, most important, data centers serving the demand for AI are all staking their claim to more electricity.

AI gets most of the attention, and deservedly so. Data centers, essential to AI, are appearing everywhere, with a profusion in Virginia, Texas and California.

There is a critical need for more generation, and there is a general agreement that it should be provided, at least in part, by nuclear power. Seldom does an industry executive or a political figure talk about the electricity shortfall than they mention nuclear power and small modular reactors as a solution.

The big tech companies — think Amazon, Google, Facebook, Microsoft — are aware they may have to play a significant role in the future of the electricity supply, but they are selective.

The electricity-hungry tech giants — those building or have contracted to build data centers — are picky about the electricity they want.

The tech giants are keen to signal virtue. They want to be seen as using only carbon-free power, which means abundant and reliable natural gas isn’t an option for them.

They are buying all the wind and solar generation that is available. But for the great new additions that are going to be needed to support the exploding number of data centers and the nearly insatiable needs of AI, nuclear has to be the answer.

Despite the considerable attention given to Microsoft’s planned restart of Three Mile Island Unit 1, the tech giants have yet to really step up.

James Schaefer, senior managing director of Guggenheim Securities Investment Banking, thinks with their vast wealth and great electricity hunger, they should be leading the deployment of mall modular reactors and providing a path to the future. If not, there will have to be government-guaranteed insurance for the cost overruns that construction will likely face for the early generations of these reactors.

The solution is for the big tech companies to sign agreements with the developers to buy their power at generous and, maybe, flexible rates. In other words, they need to take the risk to bring their wealth to bear; otherwise, the risk will have to be taken by the government, which is unlikely to be favored in a conservative administration.

New nuclear plants face two problems: the risk of building the first-of-a-kind, always high, and the fact that the nuclear construction industry in America has been allowed to run down.

This was apparent with the delays and runaway costs experienced by the Southern Company when it added two old-style, big reactors at its Plant Vogtle near Waynesboro, Georgia. The costs and delays were wildly underestimated for the first unit, and the contractor, Westinghouse, went bankrupt during construction. The costs for the second unit also ran over its estimates, but less so than the first. Lessons had been learned, workers trained.

Schaefer believes the electric utility industry, acting in unison, needs to agree with the tech giants on how to provide a serious path to bring these exciting new reactor designs to market.

If the tech companies don’t shoulder a large part of the risk in new nuclear generation, that risk will fall on the industry and its customers and will be reflected in higher electricity rates when inflation has already taken a toll on household income.

Without a new path forward, the state commissions, which regulate electricity pricing, will be fighting for rates to remain low, well aware that inflation has already eaten into family budgets and a rise in the cost of electricity will have political consequences.

The can-do attitude of the incoming Trump administration will be seriously tested in the electricity field. It won’t want people sweating or shivering, and it may have to nudge tech biggies into doing more than peripheral things — and looking green — to provide for a demand they are creating.

Fusion Power Is Now a Possible Dream

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Fusion power, the Holy Grail of nuclear energy for decades, may finally be within our grasp.

If the scientists and engineers at Commonwealth Fusion Systems (CFS), a company with close ties to the Massachusetts Institute of Technology Plasma Science and Fusion Center, are right, fusion is nearly ready for power market entry. In Devens, Mass., CFS says it will be ready to ship its first devices in the early 2030s.

That is astounding news, which has been so long in the making that much of the nuclear industry has failed to grasp it.

I first started writing about fusion power in the 1970s. Having been on hand for many of its false starts, I was one of the doubters.

However, after I visited the CFS factory in Devens and saw the precision production of the giant magnets, which are the key to the company’s system, I am on my way to being a believer.

I think CFS can likely manufacture a device it can ship to users — utilities or big data centers — in the early 2030s. If so, the news is huge; it is a moment in science history, like the first telephone call or incandescent light bulb.

Governments, grasping the potential for clean and essentially limitless power without weapons proliferation or radioactive waste, have lavished billions of dollars on fusion energy research worldwide. Intergovernmental efforts in recent years have concentrated on the Joint European Torus, which has wrapped up in Britain, and the International Thermonuclear Experimental Reactor, a mega-project involving 35 nations. Both are firmly in the category of scientific research.

However, in the commercial world, there is a sense that fusion power is at hand, and many companies have raised money and are pressing forward. CFS is on the front of that pack.

There are two technologies chasing the fusion dream: magnetic fusion energy (MFE) and inertial fusion energy (IFE). The former contains plasma at millions of degrees in a magnetic bottle. The trick here isn’t in the plasma but in the bottle.

A version of MFE, called the tokamak, is the technology expected to produce the first fusion power plant. Worldwide, dozens of startups are looking at fusion, and in the United States, eight are considered frontline.

The other method, IFE, consists of hitting a small target pellet with an intense beam of energy, which can come from a laser or other device. It is still in the realm of research.

CFS has raised more than $2 billion and is seen by many as the frontrunner in the fusion power stakes.  Italian energy giant ENI supported it from its inception in 2018. Bill Gates’ ubiquitous Breakthrough Energy is an investor. Altogether, there are 60 investors, mostly looking for a huge return as CFS begins to sell its devices.

According to Brandon Sorbom, co-founder and chief scientist at CFS, the big advance has been in the superconducting magnets that create containment bottles for plasma. He told me this had enabled them to design a device many times smaller than had previously been possible.

What makes CFS magnets different and revolutionary is the superconducting wire wound to make the magnets.

Think of the tape in a tape recorder, and you have an idea of the flat wire, called HTS, that is wound into each magnet. The HTS tape is first wound into VIPER cable, or NINT pancakes — acronyms for two types of magnet technology developed by MIT in conjunction with CFS. Then, the VIPER cable, or NINT pancakes, are assembled into magnets that make up the tokamak.

This superconducting wire enables a large amount of current to course through the magnet at many times the previously unavailable levels. This means the device can be smaller — about the size of a large truck.

The next stage is completing the first full demonstration device at CFS, known as SPARC. It is already half-built and should become operational next year.

After that will come the first commercial fusion device, called ARC, which may be deployed in a decade. It will contain, as Sorbom said, “a star in a bottle using magnetic fields in a tokamak design,” and perchance, bring abundant zero-carbon energy to users near you.

The Case for Saving Nuclear Is Not the Case for Saving Coal

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Coal and nuclear power have been yoked together for decades. Nuclear power and nuclear science have both paid the price for this double harness. Now it looks as though nuclear will pay again.

The electric utilities in the 1950s and 1960s were faced with runaway demand for electricity as air conditioning was deployed and new home construction boomed. This was before acid rain became a problem and when global warming was just a minor scientific theory.

As the utilities struggled to deal with electricity demand that was doubling every 10 years, nuclear appeared as the brave new fuel of the future. They loved nuclear, the government loved nuclear and the public was happy with it.

So, utilities went hellbent into nuclear: In all, starting in the 1950s, utilities built over well over 100 reactors for electricity production.

Then opposition to nuclear began to appear, at first in the late 1960s and then with intensity through the 1970s.

Horror stories were easy to invent and hard to counter. Being anti-nuclear was good for the protest business. The environmental movement — to its shame — joined the anti-nuclear cavalcade. Indeed, in the 1970s and 1980s, environmentalists were still hard against nuclear. They advocated advanced coal combustion, particularly a form of coal boiler known as “circulating fluidized bed.”

For their part the utilities defended nuclear, but never at a cost to coal. They were worried about their investments in coal. They would not, for example, sing the safety, reliability and, as it was then, the cost-effectiveness of nuclear over coal.

They said they were for both. “Both of the above” meant that the nuclear advocates in the industry could not run serious comparisons of nuclear with coal.

Now the Trump administration is seeking that history repeat itself. To fulfill the president’s campaign promises to the coal industry and to try to save coal-mining jobs, the administration is invoking national security and “resilience” to interfere in the electric markets and save coal and nuclear plants, which the utility industry is closing or will close.

The predicament of these plants is economic; for coal, it is economic and environmental.

Both forms of electric generation are undermined by cheap natural gas, cheap wind power and cheap solar power. In a market that favors the cheapest electricity at the time of dispatch, measured to the second, these plants do not cut it financially. The social value or otherwise is not calculated.

The fight between coal and nuclear, and more realistically between nuclear and natural gas, misses the true virtue of nuclear: It is a scientific cornucopia.

Nuclear science is reshaping medicine, enabling space travel and peering at the very nature of being. In 100 years, nuclear science will be flowering in ways undreamed of today. A healthy nuclear power industry grows the nuclear science world, brings in talent.

Even without the science argument, there is a case for saving the nuclear plants: They produce about 20 percent of the nation’s electricity without hint of carbon effluent, which gas cannot say.

A fair market allows for externalities beyond the cost of generation and dispatch at that second. Clean air is a social value, scientific progress is a social value, and predicting the life of a plant (maybe 80 years) is a social value.

Natural gas, the great market disrupter of today, does not meet these criteria.

As electricity is unique, the national lifeblood, it deserves to be treated as such. That cries out for nuclear to be considered for a lifeline in today’s brutal market.

If it embraces a long-term solution through carbon capture and use, then coal may hold a place in the future. But the industry is cool to this solution. Robert Murray, CEO of Murray Energy Corporation, denounced it to me.

The administration has put money into a new nuclear through incentives and subsidies for small modular reactors even while linking established nuclear to the sick man of energy, coal.

Electricity is a social value as well as a traded commodity. The administration is working against itself with its coal strategy.

China’s Not-So-Secret Weapons — Rare Earths

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In October 1973, the world shuddered when the Arab members of the Organization of Petroleum Exporting Countries imposed an oil embargo on the United States and other nations that provided military aid to Israel in the Yom Kippur war. At the same time, they ramped up prices.

The United States realized it was dependent on imported oil — and much of that came from the Middle East, with Saudi Arabia the big swing producer. It shook the nation. How had a few foreign powers put a noose around the neck of the world’s largest economy?

Well, it could happen again and very soon. The commodity that could bring us to our knees isn’t oil, but rather a group of elements known as rare earths, falling between 21 and 71 on the periodic table. This time, just one country is holding the noose: China.

China controls the world’s production and distribution of rare earths. It produces more than 92 percent of them and holds the world in its hand when it comes to the future of almost anything in high technology.

Rare earths are great multipliers and the heaviest are the most valuable. They make the things we take for granted, from the small motors in automobiles to the wind turbines that are revolutionizing the production of electricity, many times more efficient. For example, rare earths increase a conventional magnet’s power by at least fivefold. They are the new oil.

Rare earths are also at work in cell phones and computers. Fighter jets and smart weapons, like cruise missiles, rely on them. In national defense, there is no substitute and no other supply source available.

Like so much else, the use of rare earths as an enhancer was a U.S. discovery: General Motors, in fact. In 1982, General Motors research scientist John Croat created the world’s strongest permanent magnet using rare earths. He formed a company, called Magnequench. In 1992, the company and Croat’s patents were sold to a Chinese company.

From that time on it became national policy for China to be not just the supplier of rare earths, but to control the whole supply chain. For example, it didn’t just want to supply the rare earths for wind turbines; it insisted that major suppliers, such as Siemens, move some of their manufacturing to China. Soon Chinese companies, fortified with international expertise, went into wind turbine manufacture themselves.

“Now China is the major manufacturer of wind turbines,” says Jim Kennedy, a St. Louis-based consultant who is devoted to raising the alarm over rare earths vulnerability. A new and important book, “Sellout” by Victoria Bruce, details the way the world handed control of its technological future to China and Kennedy’s struggle to alert the United States.

At present, the rare earths threat from China is serious but not critical. If President Donald Trump — apparently encouraged by his trade adviser Peter Navarro, and his policy adviser Steve Bannon — is contemplating a trade war with China, rare earths are China’s most potent weapon.

A trade war moves the rare earths threat from existential to immediate.

In a strange regulatory twist the United States, and most of the world, won’t be able to open rare earths mines without legislation and an international treaty modification. Rare earths are often found in conjunction with thorium, a mildly radioactive metal, which occurs in nature and doesn’t represent any kind of threat.

However, it’s a large regulatory problem. The Nuclear Regulatory Commission and the International Atomic Energy Agency have defined thorium as a nuclear “source material” that requires special disposition. Until these classifications, thorium was disposed of along with other mine tailings. Now it has to be separated and collected. Essentially until a new regime for thorium is found, including thorium-powered reactors, the mining of rare earths will be uneconomic in the United States and other nuclear non-proliferation treaty countries.

Congress needs to look into this urgently, ideally before Trump’s trade war gets going, according to several sources familiar with the crisis. A thorium reactor was developed in the 1960s at the Oak Ridge National Laboratory in Tennessee. While it’s regarded by many nuclear scientists as a superior technology, only Canada and China are pursuing it at present.

Meanwhile, future disruptions from China won’t necessarily be in the markets. It could be in the obscure but vital commodities known as rare earths: China’s not quite secret weapon.

Electricity Is the Gift That Can Keep on Giving in Africa

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Photo: South Africa – August 24, 2014: African woman with child collecting water from the river on the road leading to local Game Reserve.

He is generic Africa Man. You can see him everywhere, walking barefoot across the Savannah and desert landscapes. He is on a mission that gets harder as time goes on.

His mission is to find enough wood — a few dry sticks here, some roots there — to make a fire for a hot meal and to bathe. He walks and walks, adding a stick and a piece of scrub wood to the bundle carried, in the traditional way, on his head.

Generic Africa Woman is busy, too. Her mission is to draw water. She carries a container on her head, filled with water from a distant well, to make dinner — a meal of maize (corn) porridge with maybe a stew of some meat or even caterpillar — and to bathe.

African life is picturesque, but it is not pretty. Hardship is in daily attendance in much of Africa, blighted from deforestation and polluted water.

Yet Western aid has not been easily delivered. Much of it has been stolen, some of it has been misapplied and some of it has led to aid dependency.

So, as an old Africa hand (I was born in what is now Zimbabwe, and left when I was 20 years old), I was elated to learn of a new and critical partnership just announced between the Edison Electric Institute (EEI) and the U.S. Department of State’s Power Africa initiative. Electricity anywhere is the gift that gives and gives, but especially when it begins to transform lives of hard struggle to ones that are less so.

When I was a boy, the opening of a power station or the building of a power line were events that brought forth celebration. Electricity signaled a better tomorrow.

When a village — whether it is in Bolivia, India or Uganda — is electrified, good things flow. A simple hotplate replaces days of firewood collection and those who can read can do so after the sun sets: hygiene improves, education is facilitated and expectations soar.

When the shantytowns that surround Johannesburg, South Africa, were electrified, the productivity of workers who flood into the city every day went up. Simply, they were saved from the drudgery of collecting animal droppings, wood scraps and other combustible stuff to burn.

The colonizers of Africa realized the need for electricity. Hence, in my part of the continent, two great dams were built on the Zambezi River: the Kariba, between Zimbabwe and Zambia, and the Cahora Bassa in Mozambique.

As a very young reporter, I covered the construction of the Kariba Dam, and its near destruction by unusually heavy flooding, in 1957. It has been the backbone of electricity supply for Zimbabwe and Zambia for more than 50 years.

But in recent years the dam, holding back the world’s largest, man-made impoundment of water, has begun to show deterioration in the concave wall, but especially behind the wall. The outflow has been eroding the plunge pool and threatening the wall. Hundreds of millions of dollars have had to be raised internationally for remediation, which is yet to begin in earnest. If the dam should fail, about 4 million people would die downstream.

The dam also has been producing much less electricity than it had been previously due to multi-year drought in the region. Copper production in Zambia, a vital industry, has had to be curtailed because of severe electric shortages. Blackouts are routine throughout the region.

Electricity is also a problem in South Africa, the industrial and commercial giant of Africa. Delay in ordering new generation, political interference in the decision processes and other problems, stemming from the end of apartheid, have damaged the system. Blackouts are affecting South Africa’s competitive posture.

Now the government is being romanced by Russia, hoping to sell it a new nuclear plant on favorable terms. It would join the two-unit, 1,860-MW Koeberg Nuclear Power Station, which has been operating since 1984. Unfortunately emerging countries have a fascination with big, showy projects, like the national airlines and steel mills that have cost them so dearly in their post-colonial phase.

EEI and the State Department need to guide the countries of Africa to today’s energy solutions, not yesterday’s. Africa needs to turn to its most abundant resource: sunshine. In North Africa, Morocco is building the world’s largest solar installation. Way to go.

An Open Letter to Rick Perry, U.S. Energy Secretary Nominee

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Dear Gov. Perry:

Welcome to the Department of Energy. It is a cornucopia of scientific wonders, brilliant people and, to be true, some duplication and wasted effort.

Oil, natural gas and coal are not the overriding concern of the DOE. Until President Jimmy Carter created it in 1977, fossil fuels were the province of the Department of the Interior.

The DOE was preceded by the Energy Research and Development Administration. This was a short-lived agency that combined the non-regulatory functions of the Atomic Energy Commission with the fossil fuel responsibilities of the Interior Department.

To be sure, DOE has had a manful role in coal gasification, fracking and carbon capture and storage.

But its main role is to be the nation’s armorer; to build and maintain the U.S. stockpile of nuclear weapons, and to detect bad guys testing weapons in places like North Korea and Iran.

The department has 17 major laboratories, headed by the three big weapons labs: Los Alamos, Sandia and Lawrence Livermore.

In your own state of Texas, as you must know, is the Pantex facility. That is where the weapons are constructed and dismantled. That is ground zero, if you will, of weapons making. That where the “pits” are assembled and disassembled. Weapons are designed and engineered in the weapons laboratories.

You will find that cleanup of nuclear waste — much of it from earlier weapons production — in places like Hanford, Wash., and Los Alamos, N.M., is a continuing and seemingly endless task that chews up talent and money.

Some of the other work of the DOE may surprise you. It was a major player in the human genome project and it helps U.S. companies improve their manufacturing technology. It has developed ceramics for all sorts of non-nuclear uses, like car engines. Its work with 3-D seismic and advanced drill bits has made the fracking revolution possible.

You are, in fact, about to lead the largest science department anywhere in the world.

When you get the feel of the place, one hopes that talk of disbanding it will disappear. Likewise wild talk about rooting out climate science, which has the department in shock. The DOE is not part of climate science conspiracy. Please examine your charge before you trash it.

The DOE national laboratory system is a national treasure, the science mind of the nation. It collaborates with dozens of universities.

If President-elect Trump is determined to renegotiate the Iranian deal, you will be a player. The present secretary, Ernie Moniz, handled the negotiations brilliantly for the treaty we have with Iran. He knew as much about the workings of a hydrogen bomb and its supply chain as his opponent, Ali Akbar Salehi, who also went MIT. If there is another negotiation as the president-elect has suggested, you will have to support the chief negotiator, the secretary of state, with expertise from your department.

First and foremost, the DOE is a nuclear agency, charged with making the weapons that protect the nation. But it also does some amazingly disparate things at its labs, from improving coal combustion to studying cancer to examining the very nature of matter. And, of course, climate science. It has been said that it takes a new secretary a year to find out what the department does.

Because the DOE operates in many states through the laboratory system, Congress rides it hard. Congressmen fight for dollars and projects in their states. An example — and one you will have to adjudicate — is the battle over whether to continue with the construction and operation of the mixed oxide fuel fabrication facility at the Savannah River Site. The Obama administration has said it should be terminated; Congress says no.

As there is throughout government, there is waste in the lab system. But it is a small problem compared with its huge value to the nation. A suggestion: work on making it even more user friendly to technology transfer. That is how we assure the future of U.S. competitiveness: science and more science.

You have a great charge, Gov. Perry, and it has very little to do with oil.

For InsideSources

The Efficient, Stupid Market for Nuclear Electricity

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By Llewellyn King

The market is a wondrous place. It ensures you can drink Scotch whisky in Cape Town and Moscow, or Washington and Tokyo, if you prefer. It distributes goods and services superbly, and it cannot be improved upon in seeking efficiency.

But it can’t think and it can’t plan; and it’s a cruel exterminator of the weak, the unready or, for that matter, the future.

Yet there are those who believe that the market has wisdom as well as efficiency. Not so.

If it were wise, or forward-looking, or sensitive, Mozart wouldn’t have died a pauper, and one of the greatest — if not the greatest architecturally — railway station ever built, Penn Station, wouldn’t have been demolished in 1963 to make way for the profit that could be squeezed out of the architectural deformity that replaced it: the Madison Square Garden/Penn Station horror in New York City.

End of the line

End of the line

Around Washington, Los Angeles and other cities are the traces of the tracks of the railroads and streetcar lines of yore. These were torn up when the market anointed the automobile as the uber-urban transport of the future. As Washington and Los Angeles drown in traffic, many wish the tracks — now mostly bike paths — were still there to carry the commuter trains and streetcars that are so badly needed in the most traffic-clogged cities.

Now the market, with its concentration on the present tense, is about to do another great mischief to the future. An abundance of natural gas is sending the market signals which threaten carbon-free nuclear plants before their life is run out, and before a time when nuclear electricity will again be cheaper than gas-generated electricity. World commodity prices are depressed at present, and no one believes that gas will always be the bargain it is today.

Two nuclear plants, Vermont Yankee in Vernon, Vt. and Kewaunee in Carlton, Wisc., have already been shuttered, and three plants on the Exelon Corp. system in the Midwest are in jeopardy. They’ve won a temporary reprieve because the Federal Energy Regulatory Commission (FERC) says the fact that they have round-the-clock reliability has to be taken into account against wind and solar, which don’t. In a twist, solar and wind have saved some nuclear for the while.

Natural gas, the market distorting fuel of the moment, is a greenhouse gas producer, although less so than coal. However gas, in the final analysis, could be as bad, or worse, than coal when you take into account the habitual losses of the stuff during extraction. Natural gas is almost pure methane. When this gets into the atmosphere, it’s a serious climate pollutant, maybe more so than carbon dioxide, which results when it is burned.

Taken together — methane leaks with the carbon dioxide emissions — and natural gas looks less and less friendly to the environment.

Whatever is said about nuclear, it’s the “Big Green” when it comes to the air. Unlike solar and wind, it’s available 24 hours a day, which is why three Midwest plants got their temporary reprieve by the FERC in August.

When President Obama goes to Paris to plead with the world for action on climate change in December, the market will be undercutting him at home, as more and more electricity is being generated by natural gas for no better reason than it’s cheap.

As with buying clothes or building with lumber, the cost of cheap is very high. The market says, “gas, gas, gas” because it’s cheap – now. The market isn’t responsible for the price tomorrow, or for the non-economic costs like climate change. 

But if you want a lot of electricity that disturbs very little of the world’s surface, and doesn’t put any carbon or methane into the air, the answer is nuclear: big, green nuclear. — For InsideSources.com

Obama’s Second Blow to a Nuclear Waste Solution

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When the Obama administration came into power, one of its first actions was to end work on the Yucca Mountain nuclear waste repository in Nevada. In so doing, it delivered a shuddering blow to the U.S. nuclear industry, trashing the project when it was nearly ready to open. The cost to taxpayers was about $15 billion.

Now the administration is going through the motions to suspend another costly nuclear waste investment when it is about 67 percent complete. Money expended: $4.5 billion. Shutdown cost: $1 billion.

The object of its latest volte face is the Mixed Oxide Fuel Fabrication Facility (MFFF) on the Department of Energy’s Savannah River site in South Carolina. Work started on the facility in 2007, with a 2016 startup envisaged.

But unlike Yucca Mountain, few people outside of the nuclear industry know about the genesis and purpose of the MFFF project.

The project was initiated as a result of a 2000 agreement with the Russians, later amended, in which both countries agreed to dispose of no less than 34 metric tons of excess weapons-grade plutonium — the transuranic element that is the key component of a modern nuclear weapon, and remains radioactive essentially forever.

The DOE’s plan was for the facility to mix the plutonium with uranium to create a fuel for civil nuclear reactors to produce electricity. This recycling technology, developed in the United States originally, has been used in France since 1995.

The DOE has not yet taken a wrecking ball to the MFFF, but it is taking the first steps toward demolition. On June 25, the DOE issued a press release that the industry read as a precursor to a death warrant. The department announced that it was creating a “Red Team,” headed by Thom Mason, director of the Oak Ridge National Laboratory in Oak Ridge, Tenn., to review “plutonium disposition options and make recommendations.”

The DOE statement said the team would “assess the MOX [mixed oxide] fuel approach, the downblending and disposal approach, and any other approaches the team deems feasible and cost effective.”

Industry sources say the choice is between the MOX approach and so-called downblending. In that application, the plutonium is not burned up but is spiked and mixed with a modifier that makes it unusable in weapons. Then it would be disposed either in the Waste Isolation Pilot Plant in Carlsbad, N.M., or in a new repository, if one is commissioned.

The American Association for the Advancement of Science has been pushing the downblending option. But it is using numbers that many believe to be extremely speculative. They come from a private consulting firm hired by the DOE, Aerospace Corporation.

The first number is that the life-cycle cost of the MFFF would be $30 billion, while the life-cycle cost for downblending would be only $9 billion. These numbers are contested by the contractor building the facility, a joint venture between the construction firm Chicago Bridge & Iron Company and the French nuclear technology giant Areva. They point out that plutonium has never been downblended and that the WIPP in New Mexico has had its own problems. On Feb. 5, 2014, the plant closed after a salt truck caught fire; there was an unrelated radiological release nine days later. The plant is still closed.

It is believed that Secretary of Energy Ernest Moniz favors the MFFF approach as a permanent and scientifically attractive solution, rather than burying the plutonium in New Mexico or elsewhere. However, he may be overruled by the White House and the military chiefs, who know that they are going to have to raise money on a huge scale for nuclear weapons modernization, in light of the deteriorated relationship with Russia and China’s continuing military buildup.

If the MFFF is canceled, it will join a long list of nuclear projects that the government has ordered up and canceled later, often with a huge waste of public money. Another negative is the wastage of engineering talent. Families move to sites, buy houses and send their children to local schools. Then come the pink slips and years of demanding engineering effort are nixed by policy, politics and general incoherence in Washington.

Nuclear Teetering on the Economic Precipice

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This will be a bleak Christmas for the small Vermont community of Vernon. It is losing its economic mainstay. The owner of its proud, midsize nuclear plant, which has sustained the community for 42 years, Entergy, is closing the plant. Next year the only people working at the plant will be those shuttering it, taking out its fuel, securing it and beginning the process of turning it into a kind of tomb, a burial place for the hopes of a small town.

What may be a tragedy for Vernon may also be a harbinger of a larger, multilayered tragedy for the United States.

Nuclear – Big Green – is one of the most potent tools we have in our battle to clean the air and arrest or ameliorate climate change over time. I've named it Big Green because that is what it is: Nuclear power plants produce huge quantities of absolutely carbon-free electricity.

But many nuclear plants are in danger of being closed. Next year, for the first time in decades, there will be fewer than 100 making electricity. The principal culprit: cheap natural gas.

In today’s market, nuclear is not always the lowest-cost producer. Electricity was deregulated in much of the country in the 1990s, and today electricity is sold at the lowest cost, unless it is designated as “renewable” — effectively wind and solar, whose use is often mandated by a “renewable portfolio standard,” which varies from state to state.

Nuclear falls into the crevasse, which bedevils so much planning in markets, that favors the short term over the long term.

Today’s nuclear power plants operate with extraordinary efficiency, day in day out for decades, for 60 or more years with license extensions and with outages only for refueling. They were built for a market where long-lived, fixed-cost supplies were rolled in with those of variable cost. Social utility was a factor.

For 20 years nuclear might be the cheapest electricity. Then for another 20 years, coal or some other fuel might win the price war. But that old paradigm is shattered and nuclear, in some markets, is no longer the cheapest fuel — and it may be quite few years before it is again.

Markets are great equalizers, but they're also cruel exterminators. Nuclear power plants need to run full-out all the time. They can’t be revved up for peak load in the afternoon and idled in the night. Nuclear plants make power 24/7.

Nowadays, solar makes power at given times of day and wind, by its very nature, varies in its ability to make power. Natural gas is cheap and for now abundant, and its turbines can follow electric demand. It will probably have a price edge for 20 years until supply tightens. The American Petroleum Institute won't give a calculation of future supply, saying that the supply depends on future technology and government regulation.

Natural gas burns cleaner than coal, and is favored over coal for that reason. But it still pumps greenhouse gases into the atmosphere, though just about half of the assault on the atmosphere of coal.

The fate of nuclear depends on whether the supporters of Big Green can convince politicians that it has enough social value to mitigate its temporary price disadvantage against gas.

China and India are very mindful of the environmental superiority of nuclear. China has 22 power plants operating, 26 under construction, and more about to start construction. If there is validity to the recent agreement between Chinese President Xi Jinping and President Barack Obama, it is because China is worried about its own choking pollution and a fear of climate change on its long coastline, as well as its ever-increasing need for electricity.

Five nuclear power plants, if you count Vermont Yankee, will have closed this year, and five more are under construction in Tennessee, South Carolina and Georgia. After that the new plant pipeline is empty, but the number of plants in danger is growing. Even the mighty Exelon, the largest nuclear operator, is talking about closing three plants, and pessimists say as many as 15 plants could go in the next few years.

I'd note that the decisions now being made on nuclear closures are being made on economic grounds, not any of the controversies that have attended nuclear over the years. 

Current and temporary market conditions are dictating environmental and energy policy. Money is more important than climate, for now. — For the Hearst-New York Times Syndicate