NUKE NEWZ

Fuel transfer trolley in place at Finnish encapsulation plant

13 February 2024

The transfer trolley for moving used fuel transport casks has been installed at Finnish waste management company Posiva's encapsulation plant under construction at Olkiluoto.

The transfer trolley in place on its rails (Image: Posiva)

The trolley - measuring about five metres by four meters and weighing some 30 tonnes - was manufactured by the French company CSI and delivered to the encapsulation plant in early February.

The trolley has now been moved from the fuel reception hall one floor down and placed on the rails on which it will operate.

The transfer trolley plays both a central and versatile role in the final disposal process, Posiva said. It not only receives the transport casks upon arrival but also transfers, lifts, and inserts them into the docking station. One challenge is that all of this takes place in a rather compact space within the transfer corridor.

The transfer trolley (Image: Posiva)

The fuel transport cask transfer trolley is the first link in the used fuel handling phase. The used fuel is transported to the encapsulation plant from Teollisuuden Voima Oyj's (TVO's) interim fuel storage using a transport cask. A docking preparations station is provided between the reception point and the docking station, where maintenance activities and measures that prepare the cask for docking and undocking are carried out on the cask.

"This is yet another important milestone at the encapsulation plant," said Installation Manager Veijo Ruotanen, who is in charge of the installation of the main equipment at the encapsulation plant. "Having the equipment specifically designed for this purpose ready for operation and in place and installation work progressing at a good pace is a major accomplishment."

The encapsulation plant is part of Posiva's final disposal facility complex. Once the final disposal operation starts, used nuclear fuel will be transported from interim storage to the encapsulation plant where it will be packed into final disposal canisters made of copper and spheroidal graphite cast iron. From the encapsulation plant, the cannisters will be transferred into the underground tunnels of the repository, located at a depth of 400-450 metres, and further into deposition holes lined with a bentonite buffer.

Skanska Talonrakennus Oy, the contractor responsible for construction of the used fuel encapsulation plant, handed over the building - some 72 metres in length and about 40 metres wide - to Posiva at the end of May 2022 for installation of the nuclear systems and commissioning of the process systems of the encapsulation plant.

The site for Posiva's repository at Eurajoki, near the Olkiluoto nuclear power plant, was selected in 2000. The Finnish parliament approved the decision-in-principle on the repository project the following year. Posiva - jointly owned by Finnish nuclear utilities Fortum and TVO - submitted its construction licence application to the Ministry of Employment and the Economy in December 2013. Posiva studied the rock at Olkiluoto and prepared its licence application using results from the Onkalo underground laboratory, which would be expanded to form the basis of the repository. The government granted a construction licence for the project in November 2015 and construction work on the repository started a year later. The repository is expected to begin operations in the mid-2020s.

Finnish firms to be technical advisors for Polish plant

13 February 2024

Fortum and TVO - owners and operators of nuclear power plants in Finland and Sweden - have signed a two-year framework agreement with Polskie Elektrownie Jądrowe (PEJ) to provide technical support in the design, engineering and preparation for operation of Poland's first nuclear power plant.

(Image: PJE)

The scope of the framework is to support state-owned PEJ in the development of operation and maintenance processes of the new nuclear power plant in Pomerania. Following a competitive procedure, TVO subsidiary TVO Nuclear Services (TVONS) and Fortum's Nuclear Services have been selected to provide technical support, for example in the licensing and design phase of the plant and assist PEJ in developing its own internal capabilities to become an operator of a nuclear power plant.

"The agreement assumes support in terms of addressing the needs of the future operator starting already at the NPP design stage, in the performance of contracts with the consortium of Westinghouse, as the technology vendor, and Bechtel, as the main contractor, as well as cooperation and exchange of experience in the development of a fuel strategy and radioactive waste management strategy," PEJ said.

TVO and Fortum will also support PEJ in developing a training plan for employees and an action plan covering detailed scopes of tasks executed by the operator.

"Fortum and TVO differ from many other professional service providers in that we have unique experience as owners and users of nuclear power over decades," said Anni Jaarinen, Fortum's director responsible for nuclear power services. "We are satisfied that together we can contribute to Poland's energy breakthrough with strong Finnish nuclear power expertise."

"We appreciate the opportunity to support the customer and utilise our long-term expertise in planning, implementation, operation and life cycle management of nuclear power plant projects, most recently the 1600 MW pressurised water plant Olkiluoto 3," added TVONS CEO Ari Leppänen.

PEJ - a special-purpose vehicle 100% owned by the State Treasury - is responsible for the construction project of the first nuclear power plant in Poland.

In November 2022, the then Polish government selected the Westinghouse AP1000 reactor technology for construction at the Lubiatowo-Kopalino site in the Choczewo municipality in Pomerania in northern Poland. An agreement setting a plan for the delivery of the plant was signed in May last year by Westinghouse, Bechtel and PEJ. The country's Ministry of Climate and Environment in July issued a decision-in-principle for PEJ to construct the plant. The aim is for Poland's first AP1000 reactor to enter commercial operation in 2033.

Bulgaria and USA sign nuclear cooperation agreement

13 February 2024

The USA and Bulgaria have signed an intergovernmental agreement to cooperate on the development of the European country's civil nuclear programme, including the plan for new units at the Kozloduy nuclear power plant.

(Image: US Embassy in Bulgaria)

The agreement, signed by US Assistant Secretary of Energy for International Affairs Andrew Light and Bulgarian Minister of Energy Rumen Radev, builds on a 2020 memorandum of understanding.

In addition to creating a working group to support plans to design, construct and commission the new units at Kozloduy, the two countries will also "explore collaboration on research and training programmes and developing Bulgaria's nuclear supply chain resilience".

The agreement also proposes the two countries "work together to promote transparency and public awareness as Bulgaria develops civil nuclear energy as a safe, sustainable, and carbon-free source of energy".

Light said: "This agreement will play a vital role in promoting energy security and decarbonisation for Bulgaria and the region. Together, we will support Bulgaria’s efforts to strengthen all aspects of its civil nuclear power programme, including nuclear safety and security, nuclear fuel supply, and nuclear project development."

Radev said: "This agreement is an expression of our shared vision for the development and role of nuclear energy as a key element in achieving the goals of carbon neutrality. For us, a very important aspect is cooperation in the field of training and the exchange of experience, the exchange of personnel and knowledge, and last but not least, the development of a supply chain in which many Bulgarian companies are actively involved."

The Bulgarian News Agency (BTA) quoted Radev as saying: "The financial framework for the construction of units 7 and 8 at Kozloduy should not exceed 14 billion (he did not specify if this is USD or EUR) ... the idea is to implement the project entirely on public funds with up to 25-30% self-financing. The rest is to be loan-financed for part of which State guarantees will be furnished."

Five companies have expressed a formal interest in construction of the two new Westinghouse AP1000 reactors planned for the Kozloduy nuclear power plant. When the decision to move ahead with AP1000 units at Kozloduy was given approval by the country's council of ministers in October, the target date for the completion of the first unit was 2033, with the second unit to follow "two or three years after the first one".

Kozloduy units 1-4 were VVER-440 models which the European Commission had classified as non-upgradeable and Bulgaria agreed to close them during negotiations to join the European Union in 2007. Units 5 and 6 feature VVER-1000 reactors that were connected to the grid in 1987 and 1991, respectively. Both units have been through refurbishment and life extension programmes to enable extension of operation from 30 to 60 years

Cylinder shortages hit Centrus HALEU plans

12 February 2024

The US nuclear fuel and services company expects the shortages to be temporary but says it will no longer be able to deliver the anticipated 900 kg of material under the second part of its contract with the US Department of Energy.

The HALEU Demonstration Cascade was activated in October 2023 (Image: Centrus)

Centrus made its first delivery of 20 kg of high-assay, low-enriched uranium (HALEU) produced at the American Centrifuge Plant in Piketon, Ohio, to the Department of Energy (DOE) in November, marking the end of the first phase of a cost-share contract signed in 2022. The company then moved forward to the second phase of that contract - a full year of HALEU production at the 900 kg per year plant.

The contract is part of DOE efforts to ensure the availability of HALEU - uranium enriched to between 5% and 20% uranium-235 - for advanced nuclear fuel for next-generation reactor designs and to build a domestic HALEU supply chain. The material is to remain on site in Piketon in a specially constructed storage facility until it is needed.

DOE is contractually required to provide the storage cylinders needed to collect the output from the Piketon cascade, but "supply chain challenges have created difficulties" for the department in securing the necessary 5B cylinders the entire production year, Centrus said in its Fourth Quarter and Full Year 2023 Results, released on 8 February. "Centrus anticipates that the delays in obtaining 5B Cylinders will be temporary, but no longer will deliver 900 kilograms of HALEU UF6 originally anticipated for Phase 2 of the contract, which extends to November 2024," the company said.

Type B cylinders are regulator-certified casks that can maintain shielding from gamma and neutron radiation used for materials including enriched uranium. The Type 30B cylinders are used to transport low-enriched uranium to fuel fabricators cannot be used for HALEU, which is enriched above 5% uranium-235.

Japan demonstrates floating seismic isolation system for SMRs

12 February 2024

A team led by the Japan Atomic Energy Agency has concluded a series of large-scale demonstration tests for an innovative new floating seismic isolation system intended for pairing with small modular reactors to enable siting feasibility, including in areas of high seismicity.

Testing of the FSIS (Image: JAEA)

The series of tests - which ran from 29 January to 9 February - used a 1/15-scale mockup of the structure of a small modular reactor (SMR) plant design (measuring 9 metres in length, 3 metres wide and 5 metres high) floating in a water tank mounted on the world's largest shaking table, operated by the National Research Institute for Earth Science and Disaster Resilience (NIED) in Miki City, Hyogo Prefecture, Japan.

NIED and IHI Corporation, a major nuclear equipment vendor, cooperated with Japan Atomic Energy Agency (JAEA) in the testing. The seismic waves input to the shaking table are based on some of the largest earthquakes observed, including the March 2011 Great East Japan Earthquake. Multiple accelerometers installed on the floating body and in the surrounding water pool measure the characteristic response of the floating seismic isolation structure and demonstrate its seismic isolation performance.

Japan's proprietary floating seismic isolation system (FSIS) technology is focused on the use of a series of air cavities for seismic response damping and associated orifices for energy dissipation of seismic motion as seismic isolators in a structural platform paired to the base of an SMR plant that floats in a water pool. JAEA says it is a passive system with design adaptable to a broad range of site seismic conditions and capable of reducing the seismic response of the paired SMR in the horizontal and vertical directions.

A schematic showing the pairing of the FSIS technology with an SMR (Image: JAEA)

JAEA claims the system provides such effective and omnidirectional seismic isolation that it is expected to yield increases in design margin and enhanced design standardisation for an SMR because the seismic damping will permit a single reactor/seismic isolation pairing design to be safe against seismic hazards even for sites with challenging seismic design conditions.

"The FSIS paired reactor plant is supported by buoyancy while the isolators of the cavities and orifices resist seismic load," JAEA said. "The effective and relatively simple concept is intended to greatly enhance both safety and reliability for the paired SMR."

The tests are part of a national project funded by Japan's Ministry of Economy, Trade and Industry through its nuclear energy innovation programme (NEXIP). In parallel, the project is evaluating specific safety and regulatory approaches to pairing of the FSIS and SMR plant concepts in cooperation with industry partners. The data acquired in the current tests will be used for validation of the seismic design and safety analysis methods for the FSIS-paired SMR concepts.

JAEA and its industry partners have begun pre-application engagement with the US Nuclear Regulatory Commission (NRC) with the expectation that JAEA's industry partners will eventually submit a Standard Design Approval application for an SMR design paired with the FSIS. The current test will provide supporting data for the regulatory engagement. The NRC observed the tests in progress and audited quality assurance program for the FSIS testing.

The FSIS is potentially deployable with reactors of any type and with a plant containing single or multiple reactor units, JAEA said. The FSIS paired SMR design concept as described by the JAEA will withstand the terrestrial ground accelerations associated with high seismic risk zones that may not be suitable for conventional nuclear plant construction.

"Nuclear energy is expected to play a key role of decarbonisation in many countries," JAEA said. "Offering the FSIS will enable potential deployment of SMRs in Japan and elsewhere, where challenging seismic conditions would otherwise limit siting availability for new builds."

In February last year, Japan's Cabinet approved a policy that calls to develop and construct "next-generation innovative reactors." Under the new policy, Japan will also collaborate with overseas projects by maintaining and strengthening domestic supply chains and contributing Japan`s technology and expertise.

Naarea and Thorizon team up on molten salt reactors

12 February 2024

Naarea of France and Thorizon of the Netherlands have signed a strategic partnership agreement to advance the development of molten salt reactors (MSRs) in Europe.

The signing of the partnership (Image: Thorizon)

Both Naarea and Thorizon envision MSRs as key enablers to a stable, carbon-free and future-proof energy system. In this context, the two companies have decided to join forces to accelerate the development of MSRs in Europe.

The partnership aims to create the best conditions to: pool resources for safety and security demonstrations and chemical, industrial and strategic knowledge in molten salt technology; develop shared laboratories and test facilities; secure access to reprocessed fuel materials needed for molten salt fuel synthesis; provide the market with a range of complementary energy solutions with a common technology basis; and increase political and public support for MSR technology.

Together, both companies work for optimal modularity in their design: Naarea through modular manufacturing, Thorizon through its modular core made of molten salt cartridges produced offsite. This collaboration will ensure a complete cooperation in the development of their two technologies and their specific features.

Naarea - formally established in November 2021 - says its ultra-compact molten salt fast neutron reactor uses "the untapped potential of used radioactive materials, and thorium, unused mining waste". Once it develops the XSMR reactor design, the company intends to target applications in areas such as transportation, agriculture and smart buildings. Naarea says that, because of the compact size of its reactor and because there is no need for it to be grid-connected, the XSMR can "be deployed as close as possible to regions, to match energy demand as closely as possible and allow the control of security of supply, at the service of industries and communities". It expects the first units of XSMR - which can generate 80 MWt/40 MWe - to be produced by 2030.

Thorizon - a spin-off from NRG, which operates the High Flux Reactor in Petten - is developing a 250 MWt/100 MWe MSR, targeted at large industrial customers and utilities. The Thorizon concept is unique due to its patented cartridge-based core. Thorizon aims to construct a pilot reactor system before 2035.

"This strategic molten salt cooperation completes the recent strategic and industrial partnership launched by Naarea and Newcleo to optimise, thanks to fast neutrons technologies, the re-use of spent fuel from conventional reactors, ensuring complete closure of the fuel cycle," the partners said in a joint statement. "It also complements Thorizon's partnership with Orano to develop a production process for the re-use of spent fuel."

"This strategic industrial partnership will help speed up the development of molten salt and will create the conditions to build a European champion alliance in fast neutrons molten salt technology for the benefit of decarbonising urgently our planet," said Naarea founder and CEO Jean Luc Alexandre. "I'm grateful to say that this collaboration will offer new perspectives on recycling spent fuels from conventional reactors. Thorizon has extensive expertise and has been working on their technology for many years, which is a strong asset for our partnership."

"Building an innovative reactor is not something you can do on your own, this requires strong partnerships and strong teamwork," added Thorizon CEO Kiki Lauwers. "We opened an office in Lyon to connect to the rich nuclear experience and expertise in France. Now, with this partnership with Naarea, we can leverage the French and Dutch ecosystems ... I see a mutual commitment to bring the molten salt reactor to the market urgently and a strong willingness and open mindset to share knowhow to advance this course."

MSRs use molten fluoride salts as primary coolant, at low pressure. They may operate with epithermal or fast neutron spectrums, and with a variety of fuels. Much of the interest today in reviving the MSR concept relates to using thorium (to breed fissile uranium-233), where an initial source of fissile material such as plutonium-239 needs to be provided. There are a number of different MSR design concepts, and a number of interesting challenges in the commercialisation of many, especially with thorium.

Akkuyu's first unit hits fresh landmarks

12 February 2024

The reactor compartment of Akkuyu nuclear power plant unit 1 in Turkey has been prepared for controlled assembly of the reactor - and the generator stator has also been installed in its pre-design position.

All four units are under construction at Akkuyu (Image: Rosatom)

Turkey's Nuclear Regulatory Agency issued permission for Akkuyu's first power unit to be commissioned in December and Rosatom says that a "clean area" has been established, with all construction materials removed and personnel access limited, which will now be in place for the lifetime of the unit

Sergei Butckikh, first deputy CEO of Akkuyu NPP, said: "There is currently active preparation for controlled assembly of the reactor - the clean area's ... creation means completion of general construction works in the containment of the reactor building ... we are commencing the installation of reactor components for loading dummy fuel assemblies and the cold-and-hot run-in phase."

Meanwhile, the generator stator and the base of the generating system are being installed in the turbine hall. The turbine generator stator weighs 430 tonnes, is 12 metres long with a 4.2 metre diameter, and Rosatom says it is the heaviest piece of equipment in the plant. A hydraulic rigging system was used, and a rail track built, as part of the process of transporting it to its design position. Pumps, pipelines and other equipment are also being installed in the turbine hall.

Alexei Likhachev, director general of Rosatom, who visited the site with Turkey's Energy Minister Alparslan Bayraktar, said: "The construction readiness of the first block is more than 90%. All equipment of the nuclear island has been installed. The installation of the stator and the base of the generating system is under way in the turbine room."

Akkuyu, in the southern Mersin province, is Turkey's first nuclear power plant. Rosatom is building four VVER-1200 reactors, under a so-called BOO (build-own-operate) model. According to the terms of the Intergovernmental Agreement between the Russian Federation and the Republic of Turkey, the commissioning of the first power unit of the nuclear power plant must take place within seven years from receipt of all permits for the construction of the unit.

The licence for the construction of the first unit was issued in 2018, with construction work beginning that year. Nuclear fuel was delivered to the site in April 2023, with Likhachev saying that the aim was to carry out a physical start-up in 2024. The 4800 MWe plant is expected to meet about 10% of Turkey's electricity needs, with the aim that all four units will be operational by the end of 2028.

Kakrapar 4 gets go-ahead to increase power

12 February 2024

The Indian regulator has given the go-ahead for the 700 MWe pressurised heavy water reactor (PHWR) to move to the next stage of commissioning and increase power to 50%. The unit reached first criticality in December.

The Kakrapar site is also home to two operating 202 MWe PWHR, seen here on the right (Image: DAE GODL-India)

"The Atomic Energy Regulatory Board (AERB) issued Permission for the Phase-C Commissioning stage of Kakrapar Atomic Power Project Unit-4 (KAPP-4) on February 09, 2024, after a satisfactory Safety Review," the Atomic Energy Regulatory Board said. The permit is valid until 30 June.

Phase-C commissioning will see the power of the reactor gradually increased in three stages as the reactor undergoes testing. The first stage - C-1 - allows the unit to increase power to 50%. Phase C-2 will allow the power to be increased to 90%. The final stage will allow the power to be increased to 100%. Regulatory permission will be required to move from one stage to the next.

KAPP 4 is an Indian-designed and built 700 MWe pressurised heavy water reactor and is the second in a series of sixteen units such units, the first of which - Kakrapar unit 3 - was declared in commercial operation in mid-2023.

Researched and written by World Nuclear News

 

UK initiative to expand nuclear workforce

12 February 2024

The UK civil and defence nuclear sectors have launched a "first-of-its kind collaborative cross-sector initiative" - known as Destination Nuclear - aimed at boosting the workforce to help deliver the country's nuclear expansion ambitions.

(Image: Nuclear AMRC)

The sector is launching the initiative to attract and recruit people over the next two decades, as it enters a new era of government-backed expansion. The civil and defence nuclear workforce will need to double over the next 20 years - supporting around 80,000 additional skilled jobs across the UK.

The new initiative - which brings together government, private sector organisations and their supply chains, education institutions - aims to deliver against the UK's nuclear ambition by attracting and recruiting more people into the industry to help fill critical skills gaps.

The Destination Nuclear campaign will target those considering a career change with transferrable skills, as well as supporting a commitment to apprenticeships and graduate schemes and increasing the opportunity for PhD students across industry-leading organisations. The nuclear sector will work with other sectors and develop training programmes to re-skill people who may be transferring from other industries.

Techniques already being used by those working in other sectors including construction and manufacturing – digital, robotics and artificial intelligence - will also be harnessed to fill nuclear roles such as welding, systems engineers, project planning and civil and structural engineers.

The campaign will also benefit national and regional employment, as well as supporting broader EDI (equality, diversity and inclusion) and social mobility goals through reaching a much broader audience.

"Destination Nuclear has provided a focal point where the sector has come together to deliver this vital campaign programme," said Lynne Matthews, Head of Destination Nuclear. "To deliver our nuclear ambition we need to significantly grow the workforce. Many potential candidates may have not considered nuclear as a career. Destination Nuclear will help show the wealth of opportunities the sector has to offer and help a broader range of people explore and venture into a career that is challenging, rewarding and sustainable."

"For those of us who have been in the industry for a while and passionate about its future contribution to society, Destination Nuclear is a game changer," added Great British Nuclear Chairman Simon Bowen. "It demonstrates how a united effort can result in delivering huge benefit with everyone collaborating for the future success of the industry."

EDF Energy CEO Simone Rossi commented: "EDF's nuclear businesses aim to hire more than 1000 people this year, to work at power stations, new build projects and in technical and support roles. It is an exciting time to be working in the sector but finding enough of the right people is challenging. That is why we are supporting Destination Nuclear to help more people realise the wealth of opportunities in this vital sector."

In January, the British government launched a roadmap for reaching its ambition for the UK to have 24 GWe of nuclear generating capacity by 2050, representing about 25% of the country's projected electricity demand. It said the Civil Nuclear Roadmap "outlines plans for the biggest expansion of nuclear power for 70 years to reduce electricity bills, support thousands of jobs and improve UK energy security - including exploring building a major new power station and investing in advanced nuclear fuel production". Nuclear's share of energy in the UK is currently about 16%, however all but one of its existing reactors are due to retire by 2030. The nuclear workforce will expand further following the AUKUS nuclear submarine partnership.

"The UK has begun the biggest nuclear power expansion in 70 years, with our world leading SMR competition and plans for a new mega nuclear plant similar in scale to Sizewell or Hinkley," said Minister for Nuclear Andrew Bowie. "To meet our ambitions, we need to rapidly ramp up recruitment in the sector, making sure we have enough people from engineers to welders to design and build new nuclear. Nuclear has fantastic career opportunities, and we want people of all ages to consider joining a key industry of the future."

Westinghouse begins UK licensing process for AP300

13 February 2024

The company has formally submitted an application to the UK Department of Energy Security and Net Zero for approval to enter the Generic Design Assessment (GDA) for the AP300 small modular reactor.

Westinghouse's vision of an AP300 plant (Image: Westinghouse)

Westinghouse is one of six small modular reactor (SMR) suppliers shortlisted in October 2023 to bid for support from the UK government as part of plans to quadruple the country's nuclear energy capacity to 24 GW by 2050, and earlier this month announced it has signed an agreement with Community Nuclear Power Limited to build four AP300s in northeast England. This would be the UK's first privately-financed SMR fleet.

The 300 MWe reactor design is based on Westinghouse's AP1000 technology, a design which is already licensed in the UK. AP1000 units have regulatory approval - and are in operation - in China and the USA and the design is also compliant with European Utility Requirements standards for nuclear power plants. Westinghouse says this brings licensing advantages and substantially reduces delivery risk for customers.

"The AP300 SMR builds on the pedigree of the already approved AP1000, and we are very optimistic that the Department of Energy Security and Net Zero will approve our GDA application," Westinghouse Energy Systems President David Durham said. "The UK regulators are already very familiar with the AP300 SMR's underpinning technology, so we look forward to working with them to progress the timely development and deployment of this advanced, proven technology in the UK."

Utilising the AP1000 engineering, components and supply chain enables streamlined licensing and leverages available technical skills, the company says. The projects will also leverage Westinghouse's 75-year history of nuclear manufacturing operations in the UK at its facility in Springfields, Lancashire.

The GDA process is carried out by two UK regulators - the Office for Nuclear Regulation and the Environment Agency - to assess the safety, security, and environmental protection aspects of a nuclear power plant designs. It allows the regulators to assess the safety, security and environmental implications of new reactor designs, separately from applications to build them at specific sites.

Generic Design Assessments have previously been completed for the EDF/AREVA UK EPR, the Westinghouse AP1000, the Hitachi-GE UK ABWR and the CGN/EDF/GNI UK HPR1000 designs. A GDA assessment is currently ongoing for Rolls-Royce SMR Limited's Small Modular Reactor design, and GE Hitachi Nuclear Energy in January announced that its BWRX-300 SMR design is to enter the GDA process.

Researched and written by World Nuclear News

Abandoned Coal Mines Are Being Repurposed Into Renewable Energy Hubs

By Felicity Bradstock - Feb 12, 2024

• Governments globally are investing in assessing the potential of old coal mines for renewable energy, including geothermal operations and solar farms.
• 
  
• Successful projects like the Gateshead mine in the UK and solar operations in Virginia, USA, demonstrate the feasibility and benefits of repurposing former coal sites for clean energy.
• 
  
• Repurposing coal sites not only supports the transition to green energy but also creates jobs, revitalizes communities, and reduces CO2 emissions.

In the U.K., the government is investing in the assessment of the potential for old coal mine sites to be converted into renewable energy hubs. As many governments around the globe aim to phase out the use of coal, researchers are exploring the potential for old mining sites. Rather than be left abandoned, ex-coal production sites could be used for a multitude of purposes, from solar energy to geothermal operations, supporting a green transition and reinvigorating the economies of previous energy hubs. 

In the U.K., the metro mayor for the west of England, Dan Norris, is investing £1.5 million in the exploration of over 100 coal mines in Somerset and South Gloucestershire to explore the potential for supplying renewable heat sources in the region. The mines in this region were emptied of coal and then closed and flooded, as the pumps were turned off. The water in the mines is heated by geothermal energy, with heat coming from the Earth’s core, allowing it to reach temperatures of around 20oC. The idea is that the water is extracted, and the heat is separated from the water to be used in heat pumps in homes and businesses across the country. New geothermal operations in existing coal mines could provide vast amounts of low-carbon heat. In addition, the water is pumped back into the mines to be recycled, making it a highly efficient process. 

There has been an increasing focus on the potential use of heat pumps in the U.K., as well as other countries around the world. Heat pumps can replace furnace and air conditioning equipment, providing low-carbon heating. Several cities worldwide have already introduced bans on furnaces in new buildings, starting later in the decade, thereby increasing the demand for greener alternatives such as heat pumps. The U.S. and France are both now developing their heat pump manufacturing industries to respond to this demand. 

Dan Mallin Martin, a hydrogeologist with the Coal Authority, the public body responsible for managing the effects of past coal mining, explained, “The transition to heat pumps as an energy source is very important and that’s one of our options for decarbonising our heating requirements across the U.K..” He added, “With heat pumps, ground source options and mine water, we can feed into that decarbonisation, especially if we couple it with green electricity like solar panels and wind.” 

There have already been successful geothermal projects on old coal sites in the U.K., including the Gateshead mine in the north of England. In March 2023, the Gateshead Energy Company launched geothermal operations at the site, making it the largest mine water heat network in Great Britain and one of the largest in Europe. The project, funded by the Heat Network Investment Project (HNIP) and the Gateshead Council, took three years to develop.  Now, heat can be extracted from 150 metres underground to provide hot water to hundreds of homes and businesses across the region. The company hopes to grow the network for use in a new conference centre, a hotel development, and an additional 270 privately owned homes. This could help reduce CO2 use by around 1,800 tonnes a year. 

And it’s not just the geothermal energy potential that researchers are exploring when it comes to repurposing old coal sites. With many coal operations covering vast amounts of land, they are ideal for conversion into solar farms. Installing solar energy infrastructure on degraded lands like mining sites and landfills is a low-cost way of transforming the sites into clean energy hubs. Using ex-mining sites can help save time and costs associated with project development, as many sites already have vital infrastructure, such as transmission lines and roads. It can also revitalise the economy of former energy hubs, creating jobs and providing clean energy for communities. 

In Virginia, USA, the Nature Conservancy – an NGO, has converted several abandoned coal mines into solar energy operations, big enough to provide renewable energy to the grid. It was one of the first examples of transforming coal sites into solar farms and the organisation hopes it will encourage the rollout of similar projects countrywide. The Nature Conservancy partnered with solar developers, such as Dominion Energy and Sun Tribe to develop the projects. The mine sites are well-suited to the transformation as they are situated on vast flat areas exposed to sunlight. 

Daniel Kestner from the Virginia Department of Energy explained, “In the coalfield region, there are about 100,000 acres that’s been impacted from mining… better to build on a lot of these mine sites than some prime farmland or some areas that maybe don’t want solar in their community.” 

As governments look to increase their renewable energy capacity and reinvigorate former energy hubs, the repurposing of coal sites could provide the perfect opportunity for transformation. There is huge potential for the development of both geothermal and solar energy operations, which could help bring jobs and revenue back to long-neglected mining communities, as well as support a green transition.  

By Felicity Bradstock for Oilprice.com

 

Diamondback Energy’s $26 Billion Endeavor Acquisition Shakes Up Permian Basin

By ZeroHedge - Feb 13, 2024

• Diamondback Energy agrees to purchase Endeavor Energy for $26 billion in cash and stock, becoming the third-largest oil producer in the Permian Basin.
• 
  
• The deal reflects a trend of consolidation in the US energy sector, following recent megadeals involving Exxon, Chevron, and other major players.
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• The acquisition is expected to enhance efficiency and productivity in crude oil production, positioning the combined company as an attractive investment opportunity in the market.

Last year, when the full extent of the unprecedented consolidation wave in the shale sector gradually became apparent, we speculated that when it's all said and done, US energy companies would have more production discipline than the OPEC+ cartel, and sure enough, today we got the latest confirmation when Diamondback Energy agreed to buy fellow Texas oil-and-gas producer, the closely privately-held Endeavor Energy, in a $26 billion cash-and-stock deal that will create the third-largest oil producer in the Permian, behind only Exxon and Chevron. It would also be the largest oil producer operating exclusively in the Permian.

Diamondback will fund the deal with 117.3 million shares and $8 billion in cash, the two Midland, Texas-based companies said in a statement Monday. Diamondback shareholders will own 60.5% of the company after the deal closes. Shareholders of Endeavor, which isn’t publicly traded, will own the rest. The WSJ was the first to leak the deal over the weekend.

The agreement is the latest in a string of massive deals transforming the US energy landscape as companies push to line up future drilling sites and cut costs. Over the past four months, Exxon struck a deal to buy another shale giant, Pioneer Resources, for about $60 billion, Chevron Corp. agreed to buy Hess Corp. for about $53 billion and Occidental Petroleum Corp. agreed to buy CrownRock LP for about $10.8 billion.

The Financial Times noted that the deal would be a win for Diamondback over Conoco, which has also been a candidate for Endeavor, which the news outlet described as one of the most sought-after shale oil independents.

Acquiring Endeavor is a resounding coup for Diamondback after its failed attempt to acquire CrownRock last year. Instead, the independent was acquired by Occidental. Endeavor, which was founded by shale pioneer Autry Stephens, is one of the last remaining closely held producers in the Permian. It has attracted the interest of Exxon, Chevron and ConocoPhillips.

Stephens, who grew up on a watermelon-and-peanut farm and had to shut down almost all his rigs during the 2008 financial crisis, had a net worth of $14.8 billion before the sale to Diamondback was announced, according to the Bloomberg Billionaires Index.

Diamondback and Endeavor’s assets compliment each other very well, paving the way for the combined company to produce crude more efficiently, said Dan Pickering, who is founder and chief investment officer of Pickering Energy Partners and helped finance the shale revolution.

"Their (drilling) inventory is extremely high quality that will make the combined companies a very attractive investment on Wall Street. I imagine it will be well received by the market on Monday," Andrew Dittmar, senior vice president at Enverus, told Reuters.

The two companies, headquartered across the street from one another in Midland, the heart of the Permian, will have a combined 838,000 net acres and have net production of 816,000 barrels of oil equivalent, according to the statement.
The move also appears to be somewhat defensive for Diamondback, putting the company in better position to survive the ongoing merger wave as an independent operator, according to Bloomberg Intelligence.

The deal, which includes Endeavor’s net debt, has been approved by Diamondback’s board. The company will fund the cash portion of it through a combination of cash on hand, its credit facility, term loans and bonds. Diamondback expects the deal to close in the fourth quarter.

As expected, Wall Street was quite excited about the transaction:

KeyBanc Capital Markets analyst Tim Rezvan

• A possible Diamondback-Endeavor merger has “industrial logic and the reporting is credible”
• “A reasonably priced acquisition could support current FANG valuations and merit another upward re-rate”

ROTH MKM analyst Leo Mariani

• Endeavor’s $25 billion valuation is lower than earlier reports for a “highly sought after set of assets”
• “Endeavor is one of the most highly sought after deals remaining in the Permian Basin, so this is a bit of a coup for FANG”

Stifel analyst Derrick Whitfield

• The deal would be fairly valued, given “the modest productivity uplift demonstrated by Endeavor’s wells”
• Bottom line is that “we’re positively inclined on the rumored transaction”

RBC Capital Markets analyst Scott Hanold

• “If this transaction occurs, we expect FANG to rationalize some of its less core focus assets, such as the Delaware Basin”

The Diamondback-Endeavor merger extends a series of megadeals that began with Exxon’s acquisition of Pioneer Natural Resources last year, followed by Chevron’s purchase of Hess Corp., and several smaller-scale but still nine-figure deals.

According to oil analysts, the shopping spree in the Permian play will continue as drillers rush to secure future production by expanding their acreage inorganically through acquisitions.

The Permian Basin, straddling West Texas and New Mexico, is the cornerstone of oil-production growth in the US. The nation’s output surged to a record high last year — besting Saudi Arabia by about 45% — thanks largely to wells in the Permian that can be drilled and fracked cheaper and faster than those in many other regions.  Oil remains in high demand globally despite efforts to transition away from it, with consumption expected to rise through 2030 — and perhaps beyond.

By Zerohedge.com