A New Era For Nuclear Power In America?

By Robert Rapier - Apr 06, 2023

• Two new nuclear reactors are expected to come online at Georgia Power's Vogtle plant.
• 
  
• The new reactors will give a boost to U.S. nuclear power growth, which has stalled for the past 20 years.
• 
  
• The Vogtle project has experienced years of delays and cost overruns.

Nuclear power has been a source of electricity in the United States for more than 60 years. The first nuclear power plant in the U.S. was the Experimental Breeder Reactor I in Idaho, which started up in 1951.

The Atomic Energy Act of 1954 established a regulatory framework for the development of nuclear power, and in 1957 the Shippingport Atomic Power Station in Pennsylvania became the first commercial nuclear power plant in the world.

The early years of nuclear power in the United States were marked by significant growth. During the 1960s, nuclear power plants were built across the country. In 1973, the United States had 29 operating reactors, producing over 16,000 megawatts (MW) of electricity. By the end of the decade, that number had grown to 60 operating reactors, producing over 50,000 MW.

However, the industry would suffer its first major setback in 1979, when the Three Mile Island nuclear power plant in Pennsylvania experienced a partial meltdown. This accident resulted in a small release of radioactive material into the environment. While there were no deaths or injuries from the incident, it led to increased scrutiny and regulation, and it increased opposition of nuclear power plants.

Since Three Mile Island, there have been major accidents at Chernobyl in 1986 and Fukushima, Japan in 2011 that had a significant impact on global nuclear power growth.

Global Nuclear Power Generation 1965 to 2021. ROBERT RAPIER

The U.S. has consistently been the world’s leading producer of nuclear energy, with a 29% global share in 2021. Nuclear energy is responsible for 8% of all U.S. energy consumption. However, after rapid growth from 1965 t0 2000, nuclear power growth in the U.S. has been stalled for the past 20 years.

U.S. Nuclear Power Production 1965-2021. ROBERT RAPIER

Prior to this year, only one new nuclear reactor come had online since 1996. The Watts Bar Unit 1 came online in 1996 in Tennessee, and the Watts Bar Unit 2 came online in 2016.

That should change this year, as Georgia Power, a subsidiary of Atlanta-based Southern Co. prepares to start up two new reactors. The reactors at Plant Vogtle, southeast of Augusta, Georgia, were approved by the Georgia Public Service Commission in 2009. The reactors are two Westinghouse AP1000 nuclear units with a capacity of about 1,117 MW each.

The first reactor was supposed to start generating power in 2016, but the project has suffered years of delays and billions in cost overruns. But, last month Vogtle Unit 3 began to split atoms, as startup testing got underway. Commercial operation is expected to commence in May or June. Unit 4 could start up as early as November of this year. So, nuclear power should finally see a boost in the U.S. this year.

According to the U.S. Nuclear Regulatory Commission (NRC), a number of new reactors were approved in the U.S. over the past decade or so. But most of those were cancelled by the applicants in the wake of the Fukushima disaster. Beyond Vogtle, there are no more nuclear reactors under construction in the U.S.

Given the significant delays and cost overruns seen in the Vogtle project, it may be a long time before we see another conventional nuclear reactor built in the U.S.

The next generation will likely see the rise of Small Modular Reactors (SMRs). SMRs are designed to be more flexible than traditional nuclear reactors. They can be used to generate electricity in remote locations or to replace retiring coal-fired power plants. SMRs are also designed to be safer and more efficient than traditional nuclear reactors.

In January 2023, GE Hitachi Nuclear Energy (GEH), Ontario Power Generation (OPG), SNC-Lavalin and Aecon announced a contract for the deployment of a BWRX-300 SMR at OPG’s Darlington New Nuclear Project site. This is the first commercial contract for a grid-scale SMR in North America, and it represents a significant step towards the adoption of SMRs.

By Robert Rapier for Oilprice.com

Vogtle Nuclear Unit Begins Producing Power

By Leonard Hyman & William Tilles - Apr 06, 2023

Last Saturday, April 1, (yes we’re aware of the date) Southern Company’s largest operating subsidiary, Georgia Power, announced that the first of its two nuclear plants under construction, Unit 3 of the new Alvin W. Vogtle nuclear power station, had been synchronized to the grid and was producing electricity for consumers. All technicalities aside this means the plant is now complete, loaded with fuel, irradiated, and producing electricity for commercial customers. Its companion, unit 4, presently undergoing hot functional testing, is expected to enter commercial operation either later this year or early next year. Together these two Westinghouse-designed AP 1000 reactors (four loop PWRs) will contribute about 2400 MWs to Southern Company's existing nuclear generating fleet which includes Plant Vogtle Units 1&2,  Plant Hatch (also in Georgia) as well as Alabama Power’s Farley unit.

As an aside, we should point out that Southern Company has a tradition of naming these facilities after its CEO’s and Board Chairmen. Georgia Power’s website notes that, Mr. Vogtle, apart from his years of executive service to the company, was a POW in the second world war. His numerous, ultimately successful escape attempts were incorporated into the movie, The Great Escape. One would’ve thought that being portrayed by Steve McQueen would’ve been enough. Apparently not.

Much has already been written (including by us) about how costly the plant is and how lengthy the construction process. Stated simply the build time was twice what they expected and the final costs look to be triple the initial estimates. All we know publicly is that the co-owner, Municipal Electric Authority of Georgia (MEAG )complained a year ago about the plant costing in excess of $30 billion. To that figure we have to add the $3.7 billion paid by Westinghouse as a settlement to the co-owners as part of Westinghouse’s bankruptcy. Let’s call it a $36 billion plant costing  $15,000 per kw installed.  (A new, large natural gas fired power plant by comparison would cost about $2500 per kw.) No matter what you compare it to this is an extremely expensive power plant. One major mitigating financial factor is that Georgia Power only owns about 50% of the unit. The remainder is split between three municipal entities: Oglethorpe Power (30%), Municipal Electric Authority of Georgia (17.7%), and Dalton Utilities (2.2%). A similar sharing arrangement exists for the other nuclear stations as well. In all fairness, we should point out that both of Southern Company's previous nuclear projects, which were completed in the mid to late 1970s, came in at a cost of well under $1,000 per kw. In fact, Georgia Power’s website boasts that the two GE Mark 1 BWRs at Plant Hatch cost $938 million for 1800 MWs. Our point here is that going into the Plant Vogtle construction process, Southern Company had strong municipal partners, a relatively favorable construction experience, as well as considerable operating expertise in nuclear power.

But before we move on we should recall that this nuclear construction episode was responsible for: 1) the bankruptcy of Westinghouse and Toshiba (for signing fixed price contracts), 2) the cancellation of its twin- —the VC Summer nuclear plant in South Carolina owned by SCANA— after spending $8 billion, 3) several senior SCANA executives were sent to prison (presumably for lying to investors about escalating plant costs), 4) SCANA was soon sold to Dominion Resources shortly thereafter, 5) the governor of SC threatened to privatize the Santee Cooper Electric Co-op (Summer’s co-owner) and fired its chief executive, 6) while exposing Georgia regulators as being highly prejudicial in favor corporate versus the public’s interest (the regulatory disallowances Southern Company would face for a financial boondoggle of this magnitude would be financially crippling in many other state jurisdictions). Co-op leaders in both South Carolina and Georgia felt confident in 2008 that they would get a piece of a new, larger nuclear unit that would cost $10 billion or less.

One major impact of a nuclear construction program gone awry like this is that it makes the rest of the utility industry skittish about following suit with additional new, gigawatt scale nuclear projects. Georgia Power notes that Plant Vogtle is the first US nuclear power station to be completed in thirty years. The real question for us is who’ll agree to finance the second? We don’t think it’s a coincidence that small modular reactors (SMRs) are receiving considerable attention since they literally portray themselves as the opposite of Plant Vogtle’s experience with on time and rapid construction. Part of the appeal of SMRs right now are in reaction to construction and financing difficulties at huge nuclear megaprojects in the US, France, and the UK. But this is not necessarily a good thing. We may want large scale nuclear power plants in the mix if we want low-carbon, gigawatt scale base load options. All we can say is that the nuclear power industry continues to alter its appeal, now presenting itself as the best utility scale, low carbon option. 

By Leonard Hyman and William Tilles for Oilprice.com

Tesla's Pivot Away From Rare Earths Could Push Other Automakers To Follow Suit

By Ag Metal Miner - Apr 06, 2023

• Rare Earths MMI dropped by 15.5% in March, but prices began to rise again by the end of the month.
• 
  
• Tesla's shift away from rare earth metals in their motors could impact the automotive industry by hastening the development of alternatives for rare earth magnets.
• 
  
• The US is establishing regulations to secure a "made in America" supply chain for rare earth minerals which are considered strategic and critical materials due to their necessity in many modern technologies.

Via AG Metal Miner

The Rare Earths MMI (Monthly MetalMiner Index) dropped drastically again this month, suffering a 15.5% decline. Despite this, downward price action began to slow down and flatten around March 16. As of March 30, prices began to rise again.

Further adding to the confusion was the fact that some components in the index traded flat. This included yttrium, samarium oxide and europium oxide. However, virtually every other part of the index dropped in price, some drastically. Ultimately, the ride between the beginning of March and April proved to be a roller coaster ride.

Tesla Could Impact the Rare Earths Industry

In last month’s MMI, MetalMiner discussed Tesla’s announcement that they will eliminate the use of rare earth elements in their engines. Instead, they plan to create a permanent magnet electric vehicle motor using zero rare earth elements. According to reports, Tesla’s primary reason for the decision is to battle ongoing, problematic supply chain issues.

However, some theories have since arisen. Some believe that Tesla’s shift away from rare earth metals could impact the automotive industry in multiple ways. For one, the race to develop alternatives for rare earth magnets, especially Chinese-sourced rare earths, could hasten dramatically. Unfortunately, China’s monopoly on the whole rare earth chain of supply, production, and workers will make it difficult to reduce dependency on the country entirely. However, a cadre of countries and companies remain determined to ween off Chinese rare earths, Tesla being a prime example.

Still, rare earth suppliers remain concerned that Tesla’s move could impact the rest of the EV industry. The main worry is that Tesla will influence other automotive companies relying on rare earths for their EV models to make a similar switch. Currently, the EV industry accounts for about 12% of global rare earth magnet use. Tesla’s next-gen motor will utilize a new power train that uses 75% less silicon carbide to produce. This technological leap forward could inspire other EV manufacturers to seek similar solutions, significantly reducing dependency on China across the industry.

U.S. Creating its Own Rare Earth Supply Chain

In other news, the U.S. has begun putting together its own rare earth supply chain network. The Biden administration considers rare earths to be a strategic, critical materials due to their necessity in many modern technologies. The U.S. government has established regulations to secure a “made in America” supply chain, and that includes commodities like rare earth minerals. The recent discovery of rare earths in southern Bitterroot Valley, Montana will contribute to this goal. Indeed, if the U.S. can continue to foster projects like this, a new domestic rare earths supply chain could arrive sooner than expected.

While the decisions to locate homegrown rare earths will likely prove the best option in the long run, the switch will not be easy. China currently supplies over 80% of the world’s refined rare earth supply. Neodymium, for example, is one of the world’s most commonly used rare earth types. Right now most neodymium is produced and exported by China. It could prove tricky to find enough non-Chinese neodymium to sustain the growing EV movement and power cell phones, headphones, and other electronics.

The U.S. also lacks many fully operational rare earth mines. Therefore, the focus should be on finding and developing more deposits like Bitterroot Valley, as such discoveries will prove crucial for developing a sustainable domestic supply chain.

By Jennifer Kary

 

Davie Named Third Shipyard in Canada’s National Shipbuilding Strategy

Canada's Prime Minister Justin Trudeau announcing that Davie would be added to the shipbuilding program (Davie)

PUBLISHED APR 4, 2023 4:59 PM BY THE MARITIME EXECUTIVE

 

Canada officially added Davie to its National Shipbuilding Strategy (NSS) as the third shipyard designated to participate in the effort to renew and expand the Canadian Coast Guard and Royal Canadian Navy. The shipyard based in Quebec reports that the agreement will provide a minimum of 20 years of work with a minimum of C$8.5 billion (US$6.3 billion) in work. 

“Today’s announcement is an important step in the government’s ongoing efforts to ensure that Canada has the modern and reliable ships it needs, especially as we adapt to the continued growth of commercial shipping and the increasing impacts of climate change on our communities,” the Prime Minister’s office said in the official announcement. “We will continue to create opportunities for workers and businesses in Canada’s marine industry while ensuring the brave members of the Canadian Coast Guard and the Royal Canadian Navy can continue to carry out their important work in the years to come.”

The designation as the third strategic partner is the first step for Davie to begin formal negotiations with the Canadian government for contracts under the shipbuilding initiative. The federal government announced in 2019 that it would seek to add a shipyard in addition to Seaspan Shipyards in British Columbia and Irving Shipbuilding in Nova Scotia to the long-term plan. 

The initial phase of the program called for the construction of six icebreakers and one polar icebreaker for the Canadian Coast Guard as part of a plan that provides for the renewal of up to 18 new large ships built in Canadian shipyards. In 2019, the federal government said it planned to devote at least C$15.7 billion in funding to the shipbuilding program.

Speaking during a ceremony at the Davie shipyard, Canadian Prime Minister Justin Trudeau said “Today’s announcement is bringing us one step closer to building the fleets for Canada’s future. Our strategic partnership with Chantier Davie will help ensure our Coast Guard is supported by modern, made-in-Canada vessels so it can continue to save lives, keep our waters secure, and protect the environment.”

The addition of Davie to the program comes after a multi-step qualification process. The government ran a competition requesting submissions and conducted third-party assessments of the shipyard’s infrastructure. The government calculates that Davie has already received over C$2.2 billion in contracts over the past decade, including the conversion of three medium interim icebreakers for the Coast Guard, refits for the Coast Guard and Navy, and currently the design and construction of two ferries for Transport Canada.

“This historic agreement puts the ‘National’ in National Shipbuilding Strategy and the federal government deserves much credit. Together, we will bridge a strategic shipbuilding gap and create guaranteed capacity for future fleet renewal at Canada’s largest shipbuilder,” said James Davies, President and CEO of Davie. “We can now get to work delivering the icebreakers Canada urgently needs to meet its growing responsibilities as an international Arctic presence, while fulfilling its critical southern wintertime mission to keep our economy flowing.”

Davie had already been pre-qualified as it was moving through the certification process and in May 2021 the federal government announced plans for a second polar icebreaker. Construction of the second ship was reportedly earmarked for Davie pending completion of the process. Seaspan had previously been awarded the contract for the first polar icebreaker.

The Canadian government estimates that it was awarded more than C$21 billion in shipbuilding-related contracts since 2012. Contracts awarded under the NSS are estimated to contribute on average nearly $2 billion annually to Canada’s GDP.

 

First US-Built SOV for Offshore Wind Marks 50% Completion Milestone

Ceremony marking the 50% completion milestone of the American-built SOV for offshore wind operations (Edison Chouest Offshore)

PUBLISHED APR 5, 2023 2:39 PM BY THE MARITIME EXECUTIVE

 

Louisiana shipbuilder Edison Chouest Offshore along with Ørsted and Eversource celebrated the construction progress on the first American-built offshore wind service operations vessel (SOV) during an event in Houma, Louisiana on April 4. The shipyard was marking the 50 percent completion milestone for the ECO Edison while the wind farm developers highlighted the benefits for the U.S. shipbuilding industry from the emerging wind power industry and the use of the expertise in offshore operations from the U.S. Gulf Coast.

The companies reported a year ago that work had begun on the first SOV which will be 262 feet long. It will provide accommodations for approximately 60 technicians and engineers for the operation and maintenance of Ørsted and Eversource’s Revolution Wind, South Fork Wind, and Sunrise Wind projects in the Northeast United States. 

Edison Chouest reports that approximately 400 people are working on the construction of the vessel with more than 275,000 work hours having been logged to date. The vessel is being built at the assembly hall in Houma with support from the company’s yards in Florida and Mississippi. The two energy companies entered into a long-term charter agreement with Edison Chouest in October 2020 that provides for the shipyard to undertake the engineering, construction, and ultimately operate the U.S.-registered SOV.

“This first American service operations vessel represents the ingenuity of businesses like Edison Chouest to build upon their legacy in offshore energy and to supply a cutting-edge vessel that will allow workers to safely and effectively operate offshore,” said David Hardy, Group EVP and CEO Americas at Ørsted during yesterday’s event. “The offshore wind energy industry is utilizing the talented and expert Gulf Coast workforce, and we’re proud that this first-of-its-kind vessel will support the production of more American energy.”

 

Rendering of the completed ship due to enter service in 2024 (Ørsted)

 

According to the companies, the ECO Edison’s design focuses on passenger safety and comfort, enhanced maneuverability, extended offshore endurance, and reduced emissions. The steel for the vessel is coming from North Carolina while the main engines are being built in Illinois. The vessel will be powered by four Caterpillar 3512E EPA Tier 4 gensets, each rated for 1700 ekW. Voith Schneider was contracted for the propellers with rapid thrust and steering response that include roll reduction and other features to maximize station-keeping capabilities. 

Features for the crew include private staterooms, an exercise room, cinema/training room, internet café, and lounges. The vessel also has a warehouse for palletized storage of wind farm tools, components, and supplies. The vessel has both a walk-to-work capability and daughter crafts for infield turbine repair operations.

“We’re proud to put our expertise to work on such an important vessel for the offshore wind industry’s future American fleet,” said Gary Chouest, President and CEO of Edison Chouest Offshore. “Thanks to our decades of experience in offshore industries, our in-house engineers, and the hard work of more than 400 of our shipbuilders, we’re now more than 50 percent complete on this historic, specialized vessel that will serve as a model for the U.S. offshore wind industry and a homebase for American offshore wind technicians for years to come.” 

The vessel, which is expected to be the first Jones Act-compliant wind farm SOV, is due to enter service in 2024. It will be based in Port Jefferson, New York to service the three wind farms. 

Ørsted and Eversource highlighted that in addition to the charter for the ECO Edison, they will also be the first offshore wind developers to charter the Charybdis, the wind turbine installation vessel currently under construction at the Keppel AmFELS shipyard in Brownsville, Texas. The vessel is due for delivery later this year and will be owned by a subsidiary of Dominion Energy.

Brexit Passport Checks Lead to Lengthy Delays at Port of Dover

File image courtesy Port of Dover

PUBLISHED APR 3, 2023 4:00 PM BY THE MARITIME EXECUTIVE

 

Three years after Britain left the European Union, the reimposition of customs checks at the Channel crossing is still upending port operations at peak travel times. 

When Britain opted to leave the EU customs union, French officials began thoroughly checking the passports of British travelers, much as they would check the documents of any foreign nationals arriving from third countries. That manual process has had an impact on the throughput rate for cross-channel passenger transport, according to the Port of Dover, contributing to delays during surges in travel activity.

This occurred over the weekend as thousands of Britons headed to Europe by bus and ferry for their spring break vacations. The Port of Dover declared a state of emergency when a combination of bad weather, higher-than-expected traffic volume and customs delays on the French side led to some passenger buses experiencing a wait of up to 18 hours. 

Port officials at Dover cited "lengthy French border processes and sheer volume" for the delays. 

In an interview on Sky News on Sunday, Home Secretary Suella Braverman played down the disruption as a weather event. "I don’t think it’s fair to say that this is an adverse effect of Brexit . . . We’ve had many years now since leaving the EU, and there’s been, on the whole, very good operations and processes at the border," she said. Braverman was a leading proponent of the Brexit "Leave" campaign in the run-up to the referendum in 2016, and continued to run on delivering "Brexit opportunities" in the Tories' leadership contest last year. 

On Monday, a spokesman for the administration of UK Prime Minister Rishi Sunak allowed that passport controls played a role in the delay. 

"We recognize there are new processes in place - that's why authorities were given a long time to prepare for the new checks," the spokesman said. "And we are in discussion with our French counterparts about how we can further improve the flow of traffic."

Another pro-Brexit leader, former Brexit transition negotiator Lord Frost, admitted in a statement Monday that "since Brexit the processes have got a bit more laborious."

"If we want to control movement into the UK . . . then we must expect the EU to control movement into the EU. We can't have it both ways and we should be honest about that," he said. 

This coming November, France will also institute fingerprint and biometric scans for arriving UK nationals, the same protocol it plans to apply to other citizens of third countries. This is expected to add further to processing times for inbound travelers from Britain. 

CRIMINAL CAPITALI$M

Europol Says Corruption is Enabling Criminal Gangs to Infiltrate Ports

Europol highlights corruption by the organized gangs to infiltrate ports (file photo)

PUBLISHED APR 5, 2023 5:08 PM BY THE MARITIME EXECUTIVE

 

Europol, the EU agency charged with preventing and combatting international and organized crime, issued its first report exploring how organized crime infiltrates the ports of Europe. Detailing its findings and releasing the 24-page report today in The Hague, Europol said that it believes criminal networks are constantly evolving in their techniques as they are increasingly working toward infiltration of and control over major logistical points. The agency is calling for increased cooperation and awareness and focused efforts to address the challenges of crime in Europe’s ports.

“The Europol report on criminal networks in ports illustrates what we are up against. It lays bare the sophistication of criminal drug gangs, their strength, and their savagery,” said Ylva Johansson, Commissioner for Home Affairs for the European Commission. “The drug traffickers promote corrupt actions and practices sometimes by bribery, sometimes by intimidation. We are working with authorities at all levels to strengthen systems in the fight against the criminal activity this report outlines.”

The analysis was conducted with the Security Steering Committee of the ports of Antwerp, Hamburg/Bremerhaven, and Rotterdam. Europol said that Europe’s three biggest ports are among the most targeted for criminal infiltration although organized crime networks are also expanding into smaller ports as a means of avoiding enforcement. In the last few years, they estimate that at least 200 tons of cocaine have been trafficked through the ports of Amsterdam and Rotterdam alone.

The report finds that the structure of the ports and the nature of their operations makes them vulnerable to infiltration. They highlight the open structure, need for access, growing automation, and a large number of companies and personnel involved in port operations. 

However, they point to the volume of goods moving through the ports and the fact that the percentage of containers and imports inspected is low. For example, in 2021, the report highlights that a total of 3.5 billion tons was imported through Europe’s main ports with containers accounting for a quarter of the goods handled or some 90 million TEU. Authorities are only able to inspect between 2 and 10 percent of the containers. 

“Corruption is a key enable for criminal infiltration of ports,” the report concludes. “This includes port workers and personnel of shipping companies, freight forwarders/shipping agents, importers, transport companies, terminals, security companies, law enforcement, and customs. Bribery fees may reach hundreds of thousands of euros. The highest fees are paid to essential links in the extraction chain, often crane operators, planners, or employees providing access to information via IT systems. Coordinators of extraction teams receive between 7 to 15 percent of the value of the illicit load.”

They also point to the gangs seeking new modus operandi that require the corruption of fewer individuals. In 2018, law enforcement in Rotterdam detected a new technique involving the misappropriation of container reference codes. This has also been detected in Antwerp and they believe is being used more broadly as it requires the corruption of just one individual to gain the code and the possible use of “extraction teams,” to gain access and remove the contraband.

The report identifies a few common techniques used in smuggling including “rip-on/rip-off” where the drugs or other items are hidden with legitimate imports and retrieved in or outside the port at the destination. A newer switch method involves moving the drugs between containers during inter-community transport from one EU country to another. However, the gangs are also becoming more sophisticated by cloning containers by using the same registration number of multiple boxes. “Trojan horse containers,” are used to get extraction teams into the port often hidden inside an export container sometimes days before the arrival of the illicit goods.

The main recommendations of the report include better international information exchange as they note the gangs have infiltrated ports on all the continents. They said ports must integrate security features into the design of their infrastructure and public-private partnerships need to be implemented to involve all port actors essential for tracking the infiltration.

As the first cooperation between ports, the report is seen as a first step in building common efforts. Europol is also calling for legislative initiatives at the European level to support the ports and streamline security measures.

Robbers Board Evergreen Boxshp in Manila Anchorage 

Ever Boomy which was boarded in one of 20 ships in the line's B-type class with the first of the class Ever Bliss in this photo (Evergreen file photo)

PUBLISHED APR 6, 2023 2:34 PM BY THE MARITIME EXECUTIVE

 

Evergreen Lines confirmed to the media in Manila in the Philippines that one of its containerships was briefly boarded by robberies while in the port’s anchorage. While none of the crew was seriously injured, it is being considered an unusual incident and is being investigated by the authorities.

One of the line’s smaller containerships, a B-Tyle vessel was boarded by an unknown number of robberies. The vessel, the Ever Boomy (37,300 dwt) arrived in the Manila anchorage on April 3 on her normal route which had included port calls in China and Taiwan. The vessel was laying in the outer anchorage waiting for its berth. Built in 2018, the vessel is 695 feet long with a capacity of 2,880 TEU.

The robbers came aboard the vessel and were discovered around 0200 on the morning of April 5 while the containership remained at anchor. An able seaman on watch on the deck was accosted by the boarders. He was assaulted and tied up. Unconfirmed reports in the newspapers said at least one crewmember was also threatened with a knife and that the sailor who was tied up feared they might attempt to throw him overboard. The media indicates that the crewmember was able to free himself.

Evergreen in its statement said that the captain of the Ever Boomy immediately notified the Philippine Coast Guard and Panama as the ship’s flag state. The Coast Guard and local authorities came to the vessel and confirmed the safety of the crew. Evergreen said that no one was injured, and a search of the ship showed that there was no major property loss.

The Ever Boomy was able to proceed to the terminal. The vessel departed, today, April 6, on its normal route bound for Thailand.

These types of boardings by robbers are more common in other parts of Asia and other anchorages around the world. ReCAAP ISC, which is the reporting agency for maritime incidents in Asia, issued an update at the end of March showing that there were four boardings reported in the last five days of March in the eastbound lanes of the Singapore Strait in an area near Indonesia. Engine spares were stolen in one incident and spare parts for the fuel pumps were stolen in another incident. ReCAAP and other security agencies have repeatedly warned of the dangers in the area. The agency highlights that a total of 18 incidents were reported in the Singapore Strait since January 2023 and the danger remains as none of the perpetrators have been arrested.

 

Euronav Tanker Departs for Yemen to Replace Decaying FSO Safer

Euronav's VLCC Nautica departed China on the first leg of its voyage to Yemen to replace the FSO Safer (UNDP photo)

PUBLISHED APR 6, 2023 11:54 AM BY THE MARITIME EXECUTIVE

 

Euronav’s VLCC tanker the Nautica has departed for Yemen in the first step toward transferring the oil stored aboard the decaying FSO Safer to a new storage arrangement. UN officials are calling the tanker's departure a key step while however cautioning that they still need to raise a significant amount of money to complete the first, emergency phase of the operation.

Euronav and the UN Development Program reached an agreement at the beginning of March for the acquisition of the VLCC and for Euronav’s assistance in the effort to complete the transfer of more than one million barrels of oil from the Safer to the new tanker. 

The Nautica is a 15-year old VLCC built in China and is 307,000 dwt. She entered service in 2008 as the Maersk Nautica and was acquired by Euronav in 2014. The vessel is 1,055 feet long and currently registered in Liberia.

The tanker was drydocked in Zhoushan, China where she has been since early March. She underwent regular maintenance as well as some necessary modification for her new assignment. The Nautica departed China today, April 5, and is currently sailing to Singapore where she is scheduled to make a stopover on April 15. UN officials are saying the tanker is expected to arrive in Yemen in early May. 

“The departure of the Nautica, and its onward journey to the Red Sea, is a significant next step in the complex operation to take on the oil from the Safer. This moment marks the culmination of many months of preparation and coordination,” said Achim Steiner, UNDP Administrator.

A team from SMIT has begun preliminary work and planning for the operation. They were to survey the Safer and prepare the vessel for the operation. The Safer (406,639 dwt) was built as a supertanker in 1976 and converted a decade later to be a floating storage and offloading facility moored about 4.8 nautical miles off the coast of Yemen. The vessel holds an estimated 1.14 million barrels of light crude oil.

Production, offloading, and maintenance operations on the Safer were suspended in 2015 because of the war in Yemen. Maintenance was continued by a skeleton crew with limited resources with the UN reporting that the Safer’s structural integrity has significantly deteriorated. It is believed the tanks have not been properly ventilated since 2017. Assessments indicate that the vessel is beyond repair.

Announcing the agreement with the UN, Hugo De Stoop, CEO of Euronav said the company was proud to be a part of the effort and committed to providing the necessary expertise with its operational staff to support the salvage procedure. “This critical operation requires dedicated support from Euronav for at least nine months and reflects our wider sustainability and environmental credentials,” he said.

The emergency phase of the plan, which is currently underway, called for stabilizing the Safer and preparing it for the transfer. As well as preparing it to be towed away. The second phase of the UN plan calls for the installation of a catenary anchor leg mooring (CALM) buoy to which the replacement VLCC will be connected as a safe, long-term replacement, and the towing and scrapping of the Safer.

“The sailing of the vessel that will take on the Safer’s oil brings us closer to preventing a catastrophe,” said David Gressly, the UN Resident and Humanitarian Coordinator for Yemen, who has led the UN efforts since September 2021. “We have the best available technical expertise and political support from all sides. Donors have been generous. We just need the final piece of funding this month to ensure success.”

UNDP officials highlight that the war in Ukraine and changes in the oil market drove up the estimated cost of the replacement tanker. As outlined in the UN’s initial plan in April 2022, the budget for the two-track operation was $144 million, with current reports saying they will now need $129 million for the first phase. As of the beginning of April, the UN reports commitments for $95 million with efforts continuing to cover the gap of $34 million. The private sector provided $12 million with another $200,0000 from individuals with the majority coming from UN member states.

To fill the budget gap, the UN is appealing to member states and private entities, and the global public through a crowdfunding appeal. They are also exploring internal means of temporarily covering the budget shortfall while the fundraising continues.