White House Chronicle

News Analysis With a Sense of Humor

In Nuclear, U.S. Is Still the Gold Standard

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In nuclear industry parlance the “gold standard” has special significance and there is real concern the world may slip below that standard as the U.S. industry falters.

Gold standard is the term applied globally to the U.S. regulation and licensing of nuclear power plants. It is a term of respect for American standards of excellence. It was widely used at a meeting of the Nuclear Infrastructure Council in Washington Tuesday and Wednesday; and surprisingly, coming from French and Chinese lips, was an affirmation of the whole licensing and regulatory apparatus that exists in the United States.

The fear is that as the United States lags in the construction of reactors and while it continues to eschew fuel reprocessing, the gold standard will lose its luster to a world that is building new nuclear at breakneck speed and is, or plans, to reprocess the used fuel.

Most of today’s concern is about China, now committed to the fastest growth in nuclear. But India is also building and others like the United Arab Emirates, Jordan, Brazil and Argentina are thinking about it.

Will a deterioration in the quality of construction, regulation and operation occur? Not if the gold standard continues to be respected and reflects the latest innovations, according to industry sources in Europe and America. Otherwise, a slew of new reactors could be less safe than they might be.

At present, according to the companies involved in China including Westinghouse Electric, the Shaw Group, a U.S. construction firm and the French giant Areva, they are maintaining the gold standard. The term embraces total quality assurance from licensing integrity to concrete and steel specifications, to analysis of components and certification of welds.

What is surprising about the idea of the gold standard is how long it has endured. It goes back to the Eisenhower administration and the Atoms for Peace program. This was an ambitious idea that the civilian benefits of atomic power would be spread across the world. Implicit in the program was the assumption that the U.S. nuclear industry would control world nuclear commerce and, as a result, safety standards would be the highest. Proliferation and accidents would be guarded against by the gold standard, exercised through the dominance of the U.S. industry.

The world’s fledgling nuclear industry accepted this U.S. technological hegemony happily. No one wanted a nuclear accident; and those who wanted to build a weapon would do so clandestinely, as Saddam Hussein tried to do in Iraq.

The gold standard regime was first challenged when President Jimmy Carter — a nuclear engineer who was ambivalent about nuclear — yielded to the left wing of the Democratic Party and decided that the United States would unilaterally not process used nuclear fuel. Carter’s point man in this folly was Joseph Nye of Harvard. The industry and those interested in maintaining the gold standard were appalled.

I crossed swords with Nye, highly regarded as an academic and intellectual, at the Uranium Institute (now the World Nuclear Association) annual meeting in London in September 1977. So heated was our discussion that Nye followed me out of the hall into the street, urging me to accept his point of view.

 

Although that was decades ago, it was the first blow to the gold standard. Other countries proceeded with reprocessing: Areva and British Nuclear Fuels claim it is a very profitable business, as well as greatly reducing waste volumes.

Despite this insult to nuclear, the gold standard held — possibly at 18 carats rather than 24 carats.

But the Obama administration is doing what Carter did all over again.

Carter tepidly endorsed nuclear, while opposing reprocessing and a demonstration fast breeder reactor authorized by Congress. Obama has been less severe, but he has nixed the Yucca Mountain waste repository in Nevada — and $15 billion spent there — and set back a waste-storage solution by as much as 50 years.

Now the world will store and reprocess waste without a gold standard to guide it.

It matters because slipping standards — anywhere from China to Jordan — endanger all nuclear power and a lot of people. A meltdown in Japan has battered nuclear acceptance and that was because of a once-in-history natural event. The next one could be because of lower licensing standards, bad concrete, fake parts or a bribed inspector. — For the Hearst-New York Times Syndicate

 

 

 

 

The Shocking Truth about Future Electric Supply

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TORONTO — “Nobody knows de trouble I see,” goes the Negro spiritual. It could have been playing as background music in Toronto, where the Edison Electric Institute (EEI) held its annual convention this week. Things are not terrible for the U.S. electric utility industry at the moment. But the industry’s future is more uncertain than it has ever been.

The challenge facing the industry is that we are using more electricity than ever before, with our bigger homes that have more appliances and gadgets. To meet future demand, according to Jeffry Sterba, chief executive officer of Albuquerque-based PNM Resources, the industry will need to spend $800 billion. Not only is it unclear whether it can raise this amount of money, in a time of constrained credit, but it is also unclear what expenditures public policy will sanction. Consider:

l The future of coal, which accounts for more than half of U.S. electricity production, is uncertain. It is the largest contributor to greenhouse gases, and the future promise of “clean coal” is yet to be realized on a large scale at an affordable price.

The second hope for coal, carbon capture and sequestration is a hot topic in electric utility circles. But David Ratcliffe, chief executive officer of Southern Company, confesses that it has been oversold, and it will be many years—if ever—before the technical and legal issues of diverting carbon dioxide and storing it by the millions of tons underground. The uncertainty has already caused 60 new coal-fired power plants to be canceled, according to speakers at the EEI convention.

l Nuclear power, a longtime favorite of utility executives, still faces public antipathy, and the cost of building the plants has gone up as the American engineering base has declined. The large steel forgings that are required for the construction of nuclear power plants can no longer be made in the United States. They must be imported from Japan at great expense.

Also the U.S. nuclear industry, thriving in the 1960s, has been sold off. Where once there were four U.S. companies that offered nuclear power plants, now General Electric is the only one, and it is in partnership with Japan’s Hitachi. The once mighty Westinghouse Electric is owned by Japan’s Toshiba. And the other vendor is France’s Areva. Only Ratcliffe’s Southern Company is sure that it is going to build two nuclear units. Other companies, including Baltimore-based Constellation Energy, have expressed interest in about 14 new plants—only about half of these are likely to be built.

The Nuclear Energy Institute reckons the nation needs a whopping 65 new nuclear plants to meet new demand and to allow for the retirement some of the more than 100 operating reactors.

l Wind is a bright spot. Wind power has proved more effective for most utilities than they thought, and they are now scrambling to find ways to store wind power as compressed air. But while the West and the North have good wind conditions, the Southeast suffers stagnant air at the time it most needs electricity: the summer. It is an energy option that is not open to every utility and because of its dispersed nature, it is not as manageable as a large coal-fired or nuclear plant.

l Then there is natural gas, which is the most desirable fossil fuel. In the past 25 years, the use of natural gas to turn utility turbines has grown exponentially, from 0 to 30 percent of generation. The trouble is that there is not that much indigenous natural gas around, and there are demands on it for home heating, cooking and fertilizer manufacturing, which are seen as higher uses than making electricity.

This has led to a boom in the import of liquefied natural gas from Asia and the Middle East. But James Rodgers, chief executive officer of Duke Energy, which is a large gas seller as well as a major electric utility, says that this is a dangerous route. By the time the gas gets here, after it has been liquefied and transported in an oil-burning tanker, Rodgers says it is only 20 percent less polluting than coal. Worse, he says this will harness U.S. electric rates to the global cost of oil and gas. That way he sees ruin.

Like their compatriots in the oil industry, utility executives talk a lot about technology coming to the rescue. But so far, there has been nothing that suggests a revolution akin to the one that transformed telephony is in sight. The only really happy thing here in Toronto is the realization that the plug-in hybrid car is coming, and that it will boost utilities’ revenues by recharging overnight when there is a surplus of electricity.