Monday, January 20, 2025

 World Nuclear News


US companies join forces to accelerate SMR deployment


Monday, 20 January 2025

A TVA-led coalition including BWRX-300 developer GE Hitachi Nuclear Energy is applying for federal funding to support the US deployment of small modular reactors. Subsidiaries of American Electric Power are also seeking funding for the early stages of SMR development at sites in Indiana and Virginia.

US companies join forces to accelerate SMR deployment
GE Vernova's vision of a BWRX-300 plant (Image: GE Vernova)

The TVA-led coalition has submitted an application for USD800 million in funding from the US Department of Energy's Generation III+ SMR programme. As well as the Tennessee Valley Authority (TVA), the coalition includes Bechtel, BWX Technologies, Duke Energy, Electric Power Research Institute, GE Hitachi Nuclear Energy (GEH), American Electric Power company Indiana Michigan Power, Oak Ridge Associated Universities, Sargent & Lundy, Scot Forge, other utilities and advanced nuclear project developers and the State of Tennessee.

"Nuclear power has a key role to play in reaching a cleaner and more secure energy future," Scott Strazik, CEO of GEH parent company GE Vernova, said. "Funding from this grant would play a critical role in the path forward," he added.

The Department of Energy (DOE) opened the applications for the grant funding to spur the first deployments of Gen III+ SMR in the USA last October. In the solicitation, a Gen III+ SMR is defined as a nuclear fission reactor that uses light water as a coolant and low-enriched uranium fuel, with a single-unit net electrical power output of 50-350 MWe, that maximises factory fabrication approaches, and the same or improved safety, security, and environmental benefits compared with current large nuclear power plant designs.

TVA is planning to deploy SMRs at Clinch River near Oak Ridge in Tennessee, for which it already has an early site permit. According to TVA President and CEO Jeff Lyash, this funding would accelerate construction of an SMR at Clinch River by two years, with commercial operation planned for 2033. By working with these partners, the funding would also help establish a domestic supply chain and support future deployments of advanced nuclear units in the USA and beyond, he noted.

"We believe advanced nuclear technologies will play a critical role in our region and nation's drive towards greater energy security," Lyash said. "Enabling and accelerating this technology will take innovation and partnership, as well as discipline and hard work. Nuclear is the most reliable and efficient energy the world has ever known, and TVA is uniquely positioned to help drive this forward. We are committed to working with partners and this grant would expedite our work as we invest in America's nuclear future."

Duke Energy President Harry Sideris said the company's participation in the grant reflects its commitment to nuclear energy's role in its long-term generation strategy. "Public-private partnerships such as this accelerate technology development and increase our access to industry learnings and best practices, so we can deliver the best value for our customers, communities and investors," he said.

The coalition would work as a collective group to assess risks and foster US heavy manufacturing and supply chain capabilities that could result in cost reductions and collaboration across deployments, and would also seek input from local communities, including those impacted by retired fossil plants, Duke Energy said.

As well as its role in the proposed coalition, Duke also announced that it has entered into an agreement with GEH to invest in activities to advance the standard design and licensing for the BWRX-300. "This agreement, along with participation in the potential US SMR coalition, will provide another avenue for Duke Energy to exchange valuable insight and best practices with TVA and other collaborators as they implement GE Hitachi's SMR technology. This work will help inform Duke Energy's near-term evaluation and early development activities for new nuclear, which supports the company's energy transition and will deliver value to its customers and communities," the company said.

Indiana site identified
 

In addition to the coalition funding application, American Electric Power (AEP)'s company Indiana Michigan Power (I&M) announced it is also applying for USD50 million of federal funds under the same DOE programme to begin the early stages of SMR development at Rockport in Indiana. Another AEP subsidiary Appalachian Power has submitted a separate grant proposal requesting USD35 million to offset the costs of the work necessary for an early site permit for a SMR project at Joshua Falls in Virginia.

I&M has applied for the funding as a subrecipient under TVA's application, with GEH as the reactor technology provider. If awarded the funds, I&M said it will conduct early site permit activities, as well as a Preliminary Safety Analysis Report, for the construction of a BWRX-300 at Rockport in Spencer County. Local and state officials have expressed their support for the project, and the Indiana Office of Energy Development in November issued a siting report performed by Purdue University which identifies Rockport as a suitable site.

“We are excited that Indiana Michigan Power is exploring SMR technology and is looking at its Rockport generation site in Spencer County as its home,” said Indiana State Representative Steve Bartels and Indiana State Senator Daryl Schmitt in a joint statement. “An SMR here would mean hundreds of great jobs for the area, provide local fiscal support to enhance the quality of life, local services, and create educational opportunities for our young people to help them build a career in energy production.”

Rockport is the second site identified by AEP for potential construction of a SMR: in November, Appalachian Power announced plans to begin the early site permit application process for an SMR project at Joshua Falls in Campbell County, Virginia, with plans to file an application with the Virginia State Corporation Commission this Spring. The company has now applied for a federal grant to support the early site permit process, but has not yet identified a technology provider for the Virginia project, saying it is evaluating technology providers "to determine what is commercially viable at the site and aligns with Virginia's energy needs".

The DOE opened applications for funding to support the initial domestic deployment of Generation III+ small modular reactor technologies last October, with up to USD800 million to go to two "first-mover" teams and USD100 million to address so-called gaps that have hindered plant deployments.

Russia discussing new nuclear energy units with Iran


Monday, 20 January 2025

Russian President Vladimir Putin has said that progress on two reactors under construction is "going well" and the two countries are "now discussing the possibility of building additional units".

Russia discussing new nuclear energy units with Iran
(Image: Kremlin)

The comments came during a joint press conference following talks with Iran's President Masoud Pezeshkian in Moscow and the signing of a Comprehensive Strategic Partnership treaty.

Putin said: "Energy remains a crucial area of Russian-Iranian cooperation. The flagship joint project for the construction of two new units of the Bushehr nuclear power plant by Rosatom is making strides. Once implemented, this project will undoubtedly make a weighty contribution to enhancing Iran’s energy security, spur national economic growth, and provide affordable and environmentally friendly electricity for Iranian households and industrial enterprises."

Later, when asked more generally about energy links and "challenges" faced, he referred to gas supply volumes, saying "we believe we should start small with up to two billion cubic metres, but with an option to eventually increase annual shipments to Iran to up to 55 billion cubic metres of gas. The oil sector also offers opportunities for cooperation. We operate a major nuclear project. One unit is operational and things are going well, and we are now discussing the possibility of building additional units. Indeed, we have to push certain deadlines back, mainly due to payment and settlement issues. This is no secret.

"Nevertheless, work is being done and progress is being made. Thousands of people are working on these sites, with approximately 80% of the construction being carried out by local contractors. It is a massive and major effort, and we are moving forward despite some issues that need our attention. This is precisely why we get together to address such issues."

In the transcript of the press conference published by the Kremlin, Iran's president does not directly mention cooperation on nuclear energy, but does say that the treaty would lead to "expanded opportunities for the advancement of our bilateral relations ... particularly in trade and economic interactions between Iran and Russia".

The first unit at the Bushehr plant, which was connected to the grid in 2011, has generated more than 70 billion kWh and according to Russia's official Tass news agency, Rosatom Director General Alexey Likhachev told reporters at the Kremlin event that construction of the second and third units continues "despite the sanctions and pressure" and, according to Iran's Islamic Republic News Agency (IRNA), he said negotiations for the construction of another nuclear power plant in Iran would begin "in the near future". He said there would also be cooperation on potential small modular reactors.

A Russian-designed VVER unit with a capacity of 915 MWe is already in operation at Bushehr, on the Persian Gulf coast. Two further units featuring VVER-1000 units are under construction - unit 2, which had first concrete poured in 2019 and the core catcher installed last year, had a scheduled installation of its reactor pressure vessel "30 months later", and physical start-up scheduled "55 months later", which would suggest 2029. That timeline was outlined by Iran at an event at the International Atomic Energy Agency's General Conference last September, when it as also said that the plan was for first concrete for unit 3 in the last quarter of 2024.

According to IRNA, the Head of the Atomic Energy Organisation of Iran, Mohammad Eslami, said last week that the country had a target of having 20 GW of nuclear capacity by 2041, and that they were now in the  "construction and operational" phase of the project for the second and third units at Bushehr.

Westinghouse reaches agreement on IP with Korean companies


Friday, 17 January 2025

Westinghouse, Korea Hydro & Nuclear Power and Korea Electric Power Cooperation plan to collaborate on the deployment of new nuclear reactors around the world after agreeing to settle their intellectual property dispute.

Westinghouse reaches agreement on IP with Korean companies
A plant comprising two APR1400 reactors (Image: KHNP)

Westinghouse filed a case in October 2022 with the District Court for the District of Columbia seeking to prevent Korea Hydro & Nuclear Power (KHNP) and its parent company Korea Electric Power Corporation (KEPCO) from exporting the APR1400 reactor design without its permission. The suit claimed that the APR1400 design includes intellectual property licensed by Westinghouse and requires its permission before being transferred for use in other countries.

In response, KHNP filed countersuits calling for Westinghouse to withdraw the case. It claimed that the US Atomic Energy Act grants authority to enforce the law exclusively to the US Attorney General and not to entities as a means of claiming rights through litigation.

In September 2023, the District Court for the District of Columbia accepted KHNP's argument and dismissed the case. However, a final ruling by the arbitration panel is not expected until late 2025.

Westinghouse has now announced a global settlement agreement with KEPCO and KHNP to resolve their intellectual property dispute. While details regarding the terms of the settlement remain confidential, Westinghouse said it "will work with KEPCO and KHNP to dismiss all current legal actions".

"This agreement allows both parties to move forward with certainty in the pursuit and deployment of new nuclear reactors. The agreement also sets the stage for future cooperation between the parties to advance new nuclear projects globally," Westinghouse said.

"Westinghouse is pleased to reach an agreement with KEPCO and KHNP on this important issue," said Westinghouse President and CEO Patrick Fragman. "As the world demands more firm baseload power, we look forward to opportunities for cooperation to deploy nuclear power at even greater scale."

"The two sides restored their traditional 50-year ties through this agreement," said KEPCO CEO Kim Dong-cheol. "Based on this, KEPCO can now take part in securing overseas nuclear power plant contracts more actively as the settlement resolves uncertainties due to legal conflicts."

KHNP President Hwang Joo-ho added: "This agreement will serve as an opportunity to build a closer cooperative relationship between KHNP and Westinghouse."

Canada's Cameco, one of world's largest providers of nuclear fuel, acquired Westinghouse in 2023 in a strategic partnership with Brookfield Asset Management and its affiliate Brookfield Renewable Partners and institutional partners.

"This is a positive outcome for both parties, which we believe facilitates bringing world-leading reactor technology and related competencies in engineering, construction services, maintenance, fuel supply, and training to the global market," said Cameco President and CEO Tim Gitzel.

"With more than 30 countries and over 100 companies pledging to triple nuclear capacity by 2050, the demand for nuclear power is undeniable. This agreement strengthens the industry's ability to provide carbon-free, reliable, dispatchable baseload electricity to help achieve climate, energy and national security objectives."

The agreement comes days after the USA and South Korea signed an agreement covering exports of nuclear technology. The Memorandum of Understanding on Principles Concerning Nuclear Exports and Cooperation finalised a provisional understanding reached in November. 

US Secretary of Energy Jennifer Granholm welcomed the agreement between Westinghouse, KEPCO and KHNP, saying it "marks an exceptional accomplishment which could pave the way for hundreds of billions of dollars in cooperative projects moving forward while creating and maintaining hundreds of thousands of jobs in the civil nuclear sector.

"US and Republic of Korea cooperation on civil nuclear energy can offer a highly competitive alternative on the global marketplace while upholding the highest non-proliferation standards. This commercial agreement, along with our signing last week of a government-to-government MoU on Principles Concerning Nuclear Exports and Cooperation, will promote civil nuclear energy cooperation as an exceptionally strong and enduring component of US–Republic of Korea relations."

In August 2024, Korea Hydro and Nuclear Power was selected by the Czech government as its preferred bidder to build up to four new nuclear power units in the country. South Korea's APR1000 nuclear power plant is based on original technology from Westinghouse.

French-Italian collaboration on SMR deployment



Friday, 17 January 2025

France's EDF, its Italian subsidiary Edison and Italy's nuclear research organisation ENEA have signed a Memorandum of Understanding to collaborate on the industrial applications of small modular reactors.

French-Italian collaboration on SMR deployment
(Image: ENEA)

In particular, the collaboration will focus on the analysis of thermo-hydraulic systems and passive safety systems, new technologies, integral system operation and the opportunity to provide electricity and heat in cogeneration mode for industrial needs. The agreement also provides for training activities and exchange of know-how between researchers and PhD students.

"Thanks to our collaboration with ENEA, one of Italy's leading players in the field of new nuclear research, we are taking a further concrete step towards the use of new nuclear technologies to support the Italian industrial system, by pooling technical and scientific expertise, experience in the management of nuclear plants, and a forward-looking vision," said Edison Executive Vice President of Strategy, Corporate Development and Innovation Lorenzo Mottura.

Alessandro Dodaro, director of the nuclear department at ENEA - the Italian national agency for new technologies, energy and sustainable economic development - added: "The agreement with EDF and Edison will strengthen Italy's role in Europe in the development of innovative nuclear technologies, with the aim of supporting the Italian industry in penetrating the European SMR market and reinforcing ENEA's leadership in the field of innovative nuclear technologies, passive systems, and large-scale experimentation up to full-scale testing."

"This collaboration is a practical and effective way to overcome barriers to deploying small modular reactors in Europe," said EDF Group Chief Technical Officer and Head of EDF Research and Development Bernard Salha. "By leveraging our combined expertise and resources, we are committed to developing innovative solutions that will contribute to Europe's carbon neutrality goals. We look forward to working closely with ENEA and Edison to enable a decarbonised future for the industry."

In March 2023, EDF signed a Letter of Intent with Italy's Ansaldo Energia, Ansaldo Nucleare and Edison to assess potential industrial cooperation for the development of nuclear power in Europe, including in Italy, specifically in the field of SMRs. In particular, the companies plan to explore potential industrial cooperation, drawing on their respective skills.

In July last year, an MoU was signed between EDF, Edison, Federacciai, Ansaldo Energia and Ansaldo Nucleare aimed at promoting cooperation in the use of nuclear energy to boost the competitiveness and decarbonisation of the Italian steel industry. Through that MoU, the partners will consider co-investment opportunities in new nuclear energy and, in particular, in the construction of SMRs in Italy over the coming decade, making use of the SMR technology promoted by EDF, of Edison's expertise, and of the engineering and industrial capabilities of Ansaldo Energia and Ansaldo Nucleare.

Italy operated a total of four nuclear power plants starting in the early 1960s but decided to phase out nuclear power in a referendum that followed the 1986 Chernobyl accident. It closed its last two operating plants, Caorso and Trino Vercellese, in 1990.

In late March 2011, following the Fukushima Daiichi accident, the Italian government approved a moratorium of at least one year on construction of nuclear power plants in the country, which had been looking to restart its long-abandoned nuclear programme. In May 2023, the Italian Parliament approved a motion to urge the government to consider incorporating nuclear power into the country's energy mix. Italy's government included potential new nuclear capacity in its National Integrated Energy and Climate Plan, which was submitted to the European Commission on 1 July 2024.

New York State looks to advanced nuclear

Friday, 17 January 2025

As New York Governor Kathy Hochul announces a master plan for advanced nuclear development, the state's energy research and development authority has joined Constellation on a grant proposal to help it pursue an early site permit for advanced nuclear reactors at its Nine Mile Point Clean Energy Center.

New York State looks to advanced nuclear
Governor Hochul delivers the 2025 State of the State address (Image: Governor Kathy Hochul)

The creation of a Master Plan for Responsible Advanced Nuclear Development in New York is part of a USD1 billion proposal to achieve a "more sustainable and affordable future in New York State" was included in Hochuls' 14 January State of the State address. It will be guided by the newly published Blueprint for Consideration of Advanced Nuclear Energy Technologies from the New York State Energy Research and Development Authority (NYSERDA). The Blueprint - which was itself drawn up following public comments on a draft released at the Future Energy Economy Summit in September - envisages that the process to develop the Master Plan will take place over 2025 and 2026 and include opportunities for stakeholder involvement. A completed Master Plan is expected to be published by the end of 2026.

New York State will also co-lead a multi-state initiative facilitated by the National Association of State Energy Officials and the US Department of Energy (DOE) Office of Nuclear Energy Gateway for Accelerated Innovation in Nuclear (GAIN) on advanced nuclear energy, anticipated to launch in February 2025, and support Constellation Energy Corporation in pursuing federal planning grant funding to support the exploration of the addition of one or more new advanced nuclear reactors at Nine Mile Point, NYSERDA said.

NYSERDA’s cost-share funding is a critical first step in helping to determine whether new nuclear can become a reality in New York, Constellation said. If granted, the DOE funding would be used to seek an early site permit for Nine Mile Point, which would approve the site for future development of a nuclear power plant. The permit is valid for up to 20 years, and the company can apply for a construction and operating licence at any time during the permit period. Decisions from DOE on the awardees are expected in early summer.

Constellation’s president and CEO Joe Dominguez said the company appreciated Hochul's leadership and New York’s ongoing support for nuclear energy, which produces more than 20% of the state’s energy. "Constellation has previously worked with NYSERDA to develop leading clean hydrogen production and fuel cell technologies using nuclear power. Now, NYSERDA and Constellation are once again joining together with a commitment to explore advanced nuclear energy technologies and continue the meaningful progress toward New York’s clean energy and economic development goals," he said.

New York has already supported the continued operation of Constellation’s three so-called upstate nuclear facilities - Nine Mile Point, RE Ginna and James A Fitzpatrick - explicitly recognising the zero-carbon contribution of the plants in its 2016 Clean Energy Standard as critical in enabling it to meet its climate change targets. Nine Mile Point, in Oswego, is home to two operating boiling water reactors, where the company began operating a first-of-its-kind 1 MW demonstration scale, nuclear-powered clean hydrogen production facility in 2023.

Last year, NYSERDA released a Request for Information to gauge community interest in activities to develop advanced nuclear energy technologies in the state.


Investment agreement signed for Mongolian uranium project


Friday, 17 January 2025

The agreement between the Orano Group and the Mongolian government for the development and operation of the Zuuvch Ovoo uranium mine has been signed at a ceremony in Ulaanbaatar.

Investment agreement signed for Mongolian uranium project
Representatives of the Mongolian and French governments as well as Orano CEO Nicolas Maes and Mining Business Unit Senior Executive Vice President Xavier Saint Martin Tillet witnessed the signature of the agreement on 17 January (Image: Orano)

Badrakh Energy, a joint venture between Orano and Mongolia's state-owned MonAtom Group, will be responsible for the industrial operation of the major Zuuvch Ovoo and Dulaan Uul/Umnut deposits, which Orano says have estimated uranium resources of close to 90,000 tonnes.

The agreement was signed following ratification by the Mongolian government.

Mongolia has substantial known uranium resources but there has been no uranium mining in the country since 1995, when mining of the Dornod deposit by a subsidiary of Russia's Priargunsky Industrial Mining & Chemical Union came to an end. Orano has been involved in uranium exploration in the Gobi Desert since 1997, which led to the discovery of the Dulaan Uul deposit in 2002 and the Zuuvch Ovoo deposit in 2010. The company says these deposits place Mongolia 12th in the world in terms of countries with the most uranium reserves.

The project will use in-situ leach (ISL, also known as in-situ recovery, or ISR) methods: pilot operations carried out at Zuuvch Ovoo over 2021-2022 have demonstrated the project's technical, economic and environmental feasibility. Development is planned to take 4 years. The project will have a nominal production capacity of around 2,500 tU per year over a 30-year estimated lifespan.

Initial investment will be around USD500 million before the project comes on stream, and a further USD1.6 billion will be invested over the mine's lifetime, Orano said. The mine is expected to create 1,600 direct and indirect jobs, and the project includes "significant investment" in the training of a qualified local workforce. Under the terms of the investment agreement, more than 51% of the direct benefits generated by the project, secured through taxes, dividends and royalties, will be received by the Mongolian state.

Orano CEO Nicolas Maes said the investment agreement lays the foundations for a mutually beneficial long-term relationship for Orano and its Mongolian partners. "Uranium production in Mongolia will contribute both to low-carbon electricity generation and security of supply for our customers," he said.

Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai said the agreement supports economic growth and delivers on aims set out in the country's New Recovery Policy and Vision 2050. "This agreement is a significant step forward in boosting inward investment and employment opportunities for the Mongolian people," he said.

Zuuvch Ovoo is in Mongolia's southeastern Dornogovi province.

Brazil's INB gets approval for Caldas decommissioning

Friday, 17 January 2025

The first licence for the decommissioning of a uranium mine in Brazil has been issued to the Caldas Decommissioning Unit of Indústrias Nucleares do Brasil.

Brazil's INB gets approval for Caldas decommissioning
(Image: INB)

The licence has been issued by the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA), which is part of the country's environment ministry. Indústrias Nucleares do Brasil (INB) said the operating licence, issued on 14 January, followed in-depth analysis of the plans by specialists from the company and IBAMA.

Brazilian production of uranium began in 1982 in Caldas/Minas Gerais - it was the first ore extraction and processing unit in the country - and supplied the needs of the Angra 1 plant for 13 years before closing production in 1995 because of market conditions.

INB President Adauto Seixas said that obtaining the licence was "further evidence of our commitment to decommissioning, transparency and sustainable development" and ensures that the area of the unit in Caldas can be made available for other uses in the future.

INB said the next steps involve publishing the operating licence and "managing the requirements broken down into conditions in the license itself, to advance the decommissioning of the unit".

The Caldas Decommissioning Unit (UDC) covers an area of ​​1360 hectares. INB announced in September 2023 that the first stage of building demolition had been completed with 12 buildings demolished at the deactivated industrial plant, including offices, warehouse changing rooms, boiler control house and the water treatment plant control house. At that time, 500 tonnes of scrap metal had been disposed since 2019 during the decommissioning process.

LA REVUE GAUCHE - Left Comment: Search results for NUCLEAR

UK Nuclear Power Ambitions Hampered by Delays and Soaring Costs












By Felicity Bradstock - Jan 19, 2025

The construction of Hinkley Point C and Sizewell C nuclear power plants is facing significant delays and cost overruns, jeopardizing the UK's energy security.

Sellafield Ltd's cybersecurity failings have raised concerns about the safety and security of the UK's nuclear industry.

The UK government's ambitious plans to expand nuclear power are facing criticism due to the high costs and potential impact on taxpayers.



As the U.K. government doubles down on plans to develop the country’s nuclear power industry following decades of neglect, severe delays and cost increases are hampering progress. Delays and rising costs at the Sizewell C and Hinkley C nuclear projects have drawn public criticism, while concerns over public safety have been brought into question due to cybersecurity failings by Sellafield Ltd. While public support for nuclear power is at its highest level in decades, these failings could hinder the development of a strong nuclear power industry in the U.K.

Hinkley Point C in Somerset, in the Southwest of England, is the first commercial nuclear power station to be constructed in the U.K. since the mid-1990s. The project started over a decade ago and, in that time, costs have risen over and over again, sending it over budget and causing delays. The project, being led by Électricité de France (EDF), is now expected to take several more years to complete. Around 11,000 workers are employed by EDF to get Hinkley up and running, and while operations were set to commence in 2027, EDF said in 2022, it now looks like 2030 or 2031 could be a more likely start date. This additional delay is expected to increase the cost of the plant by billions.

Sizewell C, which is being developed by EDF in Suffolk, in the East of England, has doubled in cost since initial 2020 plans, to almost $49 billion, according to claims in a recent report. This price increase is attributed to the rise in construction materials and inflation, among other factors. EDF is currently in discussions with the government about how to fund the additional project costs. A recent report from the court of auditors advises that EDF seek new investors for Hinkley C before it makes a final investment decision on Sizewell C.

The U.K. government and EDF currently plan to fund 40 percent of Sizewell C, which is expected to power as many as six million homes once operational. The government is seeking financing from private investors to fund the remaining 60 percent of the development. A final funding decision is expected to be made at the government’s review of public spending in June. At Hinkley, the agreement with the government states that EDF will only begin to earn revenue once the plant is operational, which has put greater financial constraints on the French firm. A different agreement is expected for Sizewell C to reduce this financial burden on EDF.

The Labour donor and green energy entrepreneur Dale Vince has criticised the government’s funding plan, stating, “If Hinkley Point C is anything to go by, Sizewell C really should have rigorous financial scrutiny.” Vince explained, “Originally priced at £18 billion ($22 billion), the cost of Hinkley has ballooned to £46 billion ($56 billion) and then there’s the delays. Back in 2007, the then EDF chief executive Vincent de Rivaz said that by Christmas 2017 we would be using electricity generated from atomic power at Hinkley. We’re now in Christmas 2024 and Hinkley isn’t due to be completed until 2031.”

Many are concerned about the U.K.’s lack of experience in nuclear power after decades of no new development. Nuclear power plants are extremely complex to build and due to the lack of development over the past 30 years, Britain no longer has the right skills and contractors to support construction.

Simon Taylor, a professor at the University of Cambridge’s Judge Business School believes that “The U.K. and the U.S. have, in a sense, forgotten how to build nuclear power stations.” Taylor explained, “We may rebuild that knowledge, but it will take a long time.”

The long delays faced at Hinkley are forcing four of the U.K.’s oldest nuclear power plants to continue running for over a decade longer than previously planned to help bridge the gap in delivering clean power. EDF has agreed to expand the lifespan of the reactors, once again, to “boost energy security and reduce dependence on imported gas”. The Heysham 2 nuclear reactor in Lancashire and the Torness nuclear plant in East Lothian, Scotland are now expected to continue operating for an extra two years to March 2030.

Meanwhile, Sellafield Ltd has been ordered to pay over $470,000 in criminal charges over years of cybersecurity failings at its nuclear site in Cumbria in the North of England. The company left information threatening national security exposed for four years, according to the industry regulator the Office for Nuclear Regulation (ONR). The ONR also found that 75 percent of Sellafield’s computer servers were vulnerable to cyber-attack. The company pled guilty to charges in October last year.

Despite ambitious U.K. government aims to provide abundant clean energy through the development of the country’s nuclear power sector, energy experts are concerned that the severe delays and cost increases on new nuclear projects could compromise the green transition and end up costing taxpayers billions in additional costs. Meanwhile, cybersecurity failings by Sellafield Ltd have cast a dark shadow on the industry, meaning the government must quickly reassure the public of the benefits of developing the U.K.’s nuclear power over the coming decades.


By Felicity Bradstock for Oilprice.com



Partnership to enhance UK-Canadian nuclear cooperation


Monday, 20 January 2025

The Advanced Nuclear Research Centre at the University of Strathclyde has signed a memorandum of understanding on cooperation with the Candu Owners Group and the University Network of Excellence in Nuclear Engineering.

Partnership to enhance UK-Canadian nuclear cooperation
(Image: COG)

The Advanced Nuclear Research Centre (ANRC) undertakes research and translation for industry-led projects and acts as a hub for all nuclear activities at the University of Strathclyde. The Candu Owners Group (COG) is a Toronto-based nuclear energy not-for-profit corporation whose members are nuclear operators who invest in achieving operational excellence through collaboration. The University Network of Excellence in Nuclear Engineering (UNENE) is a network of Canadian universities, industry, government and international institutions dedicated to excellence in nuclear science, technology and engineering.

Under the MoU, with a five-year renewable term, the three organisations will cooperate on nuclear engineering, science and technology initiatives in the areas of research and development, education and training, knowledge management, and nuclear operations support.

"International collaboration is key to building the capability and capacity to deliver the ambitious growth in nuclear energy that is essential to our energy security and net-zero imperatives," said ANRC Executive Director Daryl Landeg. "Canada and the UK are also uniquely well placed to play a leading role globally in the safe and secure exploitation of nuclear energy. This agreement will enable us to build lasting productive partnerships aligned with our shared goals to advance nuclear energy."

COG President and CEO Rachna Clavero added: "We are always seeking new opportunities to create value for our members, and this agreement supports advancement of industry-led projects while expanding our international network of expertise."

"UNENE sees great opportunity for each partner in this agreement as we have very strong common interests and objectives, and a history of successful collaboration," said UNENE President Jerry Hopwood. "Working together will bring tremendous scope for synergy and innovation, bringing UNENE universities together with industrial and academic partners."

 

Funding aims to scale-up medical use of UK nuclear 'waste'


Friday, 17 January 2025

A project to develop the case for scaling-up the harvesting of lead-212 from reprocessed uranium for use in treating cancer has been selected for funding by UK Research and Innovation.

Funding aims to scale-up medical use of UK nuclear 'waste'
(Image: @UKNNL/X)

The UK's Medicines Discovery Catapult and UK National Nuclear Laboratory (UKNNL) will use the funding - they are among 15 projects sharing GBP1.3 million (USD1.6 million) - to "explore potential options for making the material available to researchers and drug development companies. The long-term aim is to enable commercial production and routine use within the NHS (National Health Service) for the benefit of patients and the development of a new community".

Targeted Alpha Therapy is an emerging form of high-precision targeted treatment which provides few side-effects, with particular interest in lead-212 which has a half-life of nearly 11 hours - as it decays its emissions can be used to target and destroy cancer cells without damaging the surrounding healthy tissue.

Professor Paul Howarth, UKNNL CEO, said: "For decades UKNNL has processed the uranium from our nuclear power plants, constantly developing new techniques and capabilities. The harvesting of lead-212 requires very specific chemistry and is the key focus of some of the scientists in our laboratory in Preston. To be able to use the skills and techniques that they have developed to save lives is an incredible legacy.

"This funding will help to clarify how lead-212 can progress to the next step, to provide life-saving therapies for cancers in patients in the UK and ensure that the next generation of scientists can continue this vital work. What is most remarkable is the fact that this uranium has already powered our homes, and it is now being reused to potentially save lives."

Professor Chris Molloy, CEO of Medicines Discovery Catapult (MDC), said: "Precision radiopharmaceuticals present a huge opportunity ... creating these new targeted treatments from toxic waste could transform patient outcomes and give the UK back its domestic radiochemical capacity to serve its patients. To do this, we must invest in the infrastructure necessary to produce the materials and run patient trials.

"Combining MDC’s specialised radiochemistry and drug discovery expertise with UKNNL’s nuclear prowess, this project will accelerate important research to secure a sustainable supply of radionuclides for medicines. Doing so will unlock the development of game-changing treatments for cancer and improve patient lives."

UKNNL has been collaborating with researchers to enable access to radionuclides for investigations into new treatments and diagnosis, including for cancer, Alzheimer's and complex heart conditions. Researchers are keen to get materials to test and develop new treatments, and scale-up treatments where trials have been successful.

There have been on-going discussions in the UK about how the valuable radioisotopes in the nuclear legacy material in the country can be recognised and influence future plans for the material.

This area of medical research and treatment is a rapidly growing area - in November Orano subsidiary Orano Med laid the foundations for its EUR250 million (USD264 million) Advanced Thorium Extraction Facility plant in western France, the world's first industrial plant dedicated to the production of thorium-228, a precursor of lead-212, for radioligand therapies. The aim is to supply all the ATLab (Alpha Therapy Laboratories) facilities set to manufacture lead-212-based drugs for patients worldwide.

You can hear more about UKNNL's work getting value from legacy nuclear material in last April's World Nuclear News podcast:



World Nuclear News

LA REVUE GAUCHE - Left Comment: Search results for NUCLEAR

Should we expect a nuclear renaissance in Africa?




Scott Firsing
January 20th, 2025
LONDON SCHOOL OF ECONOMICS (LSE)

Global nuclear power leaders like Russia, China and the US are channelling investments into new nuclear technology, which might help Africa fulfil their future energy needs, writes Scott Firsing.

By 2050, global electricity usage is projected to surge by as much as 75 per cent, driven by technological advancements and population growth. With Africa’s population expected to reach 2.5 billion by the middle of the century, the continent requires an energy revolution to meet demand in which nuclear power could play a pivotal role.

However, the sole commercial nuclear power plant currently operational in Africa is the Koeberg Nuclear Power Station nestled just outside Cape Town, South Africa. Built in the 1970s by the French Consortium Framatome and Alstom, Koeberg’s two units were recently operationally extended for another 20 years, until 2044. The plant will continue to be a cornerstone of South Africa’s energy mix.

Globally, there are 440 nuclear reactors in 32 countries that are connected to electrical grids, providing a model for what’s possible. America leads with 94 reactors, followed by China (58), France (57), and Russia (36). These countries are not only managing their own energy needs but are also playing a pivotal role in exporting nuclear technology to Africa.


Who’s next in line in Africa to go nuclear?

The next taxis off the rank look set to be Egypt and Ghana, which are actively engaging with global nuclear leaders. In recent years, Russia and China have ramped up their involvement in Africa’s nuclear sector, especially in uranium mining. Russian company Rosatom hold about 70 per cent of the global market for building new nuclear plants, is at the forefront. They are financing and currently constructing Egypt’s El Dabaa Nuclear Power Plant located on the Mediterranean Sea, which will be Africa’s second operational nuclear facility. This £23.6 billion project featuring four VVER-1200 units, marks a significant step forward. In March 2024, work began on El Dabaa’s first tier of the inner containment building for the first unit. Construction is on track to see its first stage completed by 2028.

Meanwhile, Ghana has taken a different path, opting for US innovation over Russian giants. In August 2024, Ghana awarded the contract for its first nuclear power plant to the US company NuScale Power, introducing Africa to its first advanced commercial light water Small Modular Reactor. This move is part of a broader trend towards embracing advanced nuclear technologies that promise lower costs and more flexibility in powering remote or smaller-scale operations.
Future challenges and opportunities

There are several other African countries currently in various stages of planning to incorporate nuclear power into their energy grids, but the realisation and scale of these projects remain uncertain.

Uganda serves as a notable example. In September 2019, Russia and Uganda signed an intergovernmental agreement on cooperation in the peaceful use of nuclear energy. However, in March 2023, Uganda announced plans to generate 1000MW from nuclear power by 2031 with assistance from China. Then in August 2023, Ugandan President Yoweri Museveni indicated a change in strategy, selecting Russia and South Korea to construct two nuclear power stations capable of generating over 15,000MW aiming to also export electricity to neighbouring countries. This plan was further confirmed in November 2024 when Foreign Minister Abubaker Jeje Odongo announced intentions to start negotiating with Russia for the construction of these facilities.

Across Africa, there’s a growing interest in nuclear energy, evidenced by almost monthly press releases and agreements. Zimbabwe has agreed to cooperate with Russia in building small nuclear reactors, as stated by Energy Minister Edgar Moyo. Burkina Faso, Mali, and South Africa have recently signed agreements with Russia for nuclear energy development.

Overall, the narrative around nuclear power has evolved over the last decade, with increased interest driven by both economic development and environmental considerations. The International Atomic Energy Agency has been instrumental with its support, recently providing legal assistance to Kenya and Uganda in their bids to become nuclear newcomers and in October 2024, focused on enhancing nuclear education in African universities to cultivate the next generation of nuclear scientists.

However, the financial aspect poses significant challenges. To put this into perspective, Rwanda’s entire annual GDP is £10 billion. Constructing a nuclear power plant of the size Egypt is planning would cost £24 billion.

With this said the introduction of SMRs could be particularly advantageous for Africa. There are options that can reduce the impact of initial capital costs. These reactors also offer scalable solutions that can be adapted to the diverse energy needs of African countries, whose geography and population distribution vary considerably.

We are seeing more and more government support for advanced nuclear technology like SMRs and ultra-compact nuclear microreactors, which designed to power remote locations like industrial sites and AI data centres or even small towns while providing power away from large grid systems.

The presence of substantial uranium resources in countries like Niger, South Africa, and Namibia further supports Africa’s nuclear development.

Despite these advancements, the hurdles of high costs, long construction periods, and the need for extensive human resources are substantial. In certain instances, nuclear energy may not represent the most viable solution for a particular African nation. Nevertheless, only time will reveal the extent to which energy generated by nuclear reactors will integrate into Africa’s electrical grids in the years ahead, although it is anticipated to surpass current levels.

Photo credit: Mark H used with permission CC BY-NC-ND 2.0

About the author

Scott Firsing
Scott Firsing PhD is a US-Africa expert and a former International Relations Professor. He is the current President of Scott Sky Advisors, a global aviation and aerospace consultancy based in Austin, Texas USA. Dr Firsing is also a Senior Research Associate at the Institute for Global Dialogue in Pretoria South Africa associated with UNISA.


3 Ways Trains are Becoming Greener Than Ever

By Felicity Bradstock - Jan 19, 2025


The world's first carbon fiber metro train launched in China, boasting reduced weight, energy consumption, and carbon emissions.

Italy's IronLev tested a maglev train prototype on existing rail infrastructure, potentially lowering deployment costs.

The U.S. launched its first zero-emission passenger train, powered by hydrogen fuel cells, joining other countries exploring hydrogen rail technology.



Governments and private companies worldwide are racing to find innovative ways to decarbonise transport. This has resulted in the deployment of several new passenger train technologies worldwide. While some are investing in carbon fibre trains, others are looking to alter train tracks to boost efficiency or are exploring the potential for hydrogen fuel cell technology.

This month, the world's first carbon fibre metro train was launched in Qingdao, Shandong province, in China. The Cetrovo 1.0 Carbon Star Express is the first passenger train to be constructed mainly using ultra-strong and light carbon fibre. Conventional metro carriages are built using steel, which is much heavier and takes more energy to move. State-owned CRRC Qingdao Sifang instead opted for carbon fibre, which is now widely used in high-end sports cars to boost their performance. The firm began investing in the research and development for the Cetrovo in 2021 and created several prototypes before the official launch.

The new Cetrovo is around 11 percent lighter than similar conventional trains and is thought to require around 7 percent less energy to power, which could equate to cutting around 130 tons of carbon emissions a year. Carbon fibre is around five times stronger than steel, making the new trains more rigid and impact-resistant. Rides on the metro are also said to be smoother and quieter thanks to the reduction in vibration. During the pilot phase, the Cetrovo reached a speed of 87 mph, which is higher than the 50 mph average of China’s existing metro transport.

In 2024, the Italian firm IronLev carried out the first test of its magnetic levitation (maglev) train, aimed at reducing the costs and energy use of rail transport. The company deployed a one-ton prototype, travelling at a speed of 43 mph over a 2 km journey near Venice. The Maglev technology provides a cushion of air that separates the train from the track, which can help reduce friction, noise, and vibrations. The lack of friction helps decrease the energy demand significantly, as well as lessen maintenance costs.

The technology was deployed in China around two decades ago, although it has not yet been rolled out on a wide scale. While several countries, including Japan and Germany, have explored the potential for maglev systems, the high development costs and incompatibility with existing track systems have deterred many from deploying the technology.

Massimo Bergamasco, the director of the Institute of Mechanical Intelligence at the Scuola Superiore Sant'Anna in Pisa, stated, “The test carried out by IronLev represents the first and only case of magnetic levitation applied to an existing railway track without requiring the modification or integration of accessory elements.”

This varies from most previous tests carried out in other countries where researchers constructed made-for-purpose tracks to use the maglev technology. The use of existing rail infrastructure in Italy shows the potential for the rollout of the technology at a significantly reduced cost.

One of the most sought-after technologies for passenger train transport is hydrogen fuel cells (HFC). Various companies around the globe are investing in the development of HFCs for cars, trucks, trains, and maritime transport in a bid to massively decarbonise passenger transport. As hydrogen is a versatile carrier that can be used for a wide range of applications, many view it as key to decarbonising heavy industries that cannot be powered using other renewable energy sources alone.

Last year, the U.S. launched its first zero-emission passenger train, in San Bernardino, California. The $20-million Zero Emission Multiple Unit (ZEMU) has a 108-passenger capacity and is expected to commence a full service early this year. ZEMU is North America’s first self-powered, zero-emission passenger train to meet Federal Railroad Administration requirements, according to the San Bernardino County Transit Authority (SBCTA). It will serve a 9-mile route with five stops and could encourage the development of other routes if deemed successful.

The train was built by the manufacturer Stadler in Switzerland before being shipped to the U.S. It uses hybrid hydrogen and battery technology for propulsion and to power onboard electrical systems. It is powered by blue hydrogen and emits only water vapour. SBCTA hopes to eventually use green hydrogen to power the train, which is made by using renewable energy to power electrolysis. Germany was the first country to launch a hydrogen-powered train in 2018. The U.K. is also testing hydrogen train technology and France has ordered hydrogen-powered vehicles for its rail system, with operations expected to commence in 2025.


With various innovative train technologies being developed and tested around the globe, there is great optimism about the potential to decarbonise passenger train travel in the coming decades. However, achieving this decarbonisation will require significant investment and the trialling of several different systems to see which works best for a widescale commercial rollout.

By Felicity Bradstock for Oilprice.com

Energy Politics

The backlash against clean energy mandates is growing.

RIGHT WING REVANCHISM

Energy Politics
Baku, Azerbaijan, the host city for COP29 (iStock)

Published Jan 19, 2025 6:18 PM by G. Allen Brooks

 

(Article originally published in Nov/Dec 2024 edition.)

 

Climate activists recently completed their annual get-together, this time in the iconic oil city of Baku, Azerbaijan. The annual U.N. Climate Change Conference (COP 29) provides a forum for energy executives, climate activists, NGO leaders and policymakers from nearly every country on Earth to mingle while assessing the progress on climate change goals. 

While a great gabfest, the meeting enables pressure to be applied to countries not living up to their 2015 Paris Agreement commitments to cut carbon emissions and for failing to shovel sufficient money to less-developed countries. 

COP 29 began with a bang not anticipated by attendees. Ilham Aliyev, Azerbaijan’s President and COP host, defended his country’s oil and gas resources as “a gift of the Gods.” The conference was already grappling with the prospect of Donald Trump’s re-election, given his pro-hydrocarbons and anti-green views. People speculated Trump would remove the U.S. from the Paris Agreement as he did in 2017. Dismantling climate change policies was part of Trump’s campaign stump speech. 

In recent years, renewable energy’s deficiencies in meeting the globe’s power needs have crippled economies and burdened residents with soaring utility bills. Electricity cost inflation is tied to the growing investment in renewable energy. The public has awakened to the challenges of a warming planet, the increasing world population desiring improved living standards and economies eroded by high energy costs. How to balance these conflicts is the challenge. 

Despite years of promises that the transition from hydrocarbons to renewable energy would be seamless and yield lower electricity and energy bills, the public finds the claims false. Electricity prices are rising faster than overall inflation. Moreover, the public is learning that policymakers caved to climate activists and renewable energy developers by implementing mandates to force the transition and lathering it with subsidies from tax revenues. 

EV Failures

Electric vehicles, once heralded as a game-changer, have fallen short. They produce no carbon emissions. They’re silent, and they’re fun to drive, especially if you enjoy roaring away from stoplights. 

However, the practicalities of buying and owning EVs dashed the popular narrative. EVs remain expensive even after federal, state and local subsidies and price cuts to spur sales. Insurance costs more, and tires wear faster. Importantly, EV owners found that the real-world battery ranges often disappointed. Safety concerns, such as spontaneous battery fires, have prompted some home insurers to deny coverage if EVs are parked and charged in home garages. 

Claims that consumers would flock to showrooms to buy EVs failed to materialize. Domestic automakers are forced to slow their EV investments and lay off rather than hire workers. Instead of being universally embraced, EVs turned auto-manufacturing states into political battlegrounds. Trump’s battleground state victories were helped by autoworker voters fearing for their livelihoods. 

Across the pond in the U.K., 10 Downing Street officials are talking about introducing flexibility in the government’s EV mandate to prevent a collapse of the country’s auto industry. This comes after car maker Nissan warned that the industry was at a “crisis point” and risked crumbling without relief from the mandate. Killing an important industry is not a smart move. 

Soaring Prices

In Europe, economic growth has been undercut by soaring electricity prices that sap consumer spending.  The rush to switch to renewable energy has not brought electricity prices down as advertised. The result is that energy-intensive industries have become uncompetitive, capping a key growth driver for Germany’s economy, Europe’s largest. 

Projections call for Germany’s economy to contract in 2024 for the second consecutive year. 

Germany’s automotive sector, which accounts for five percent of its GDP and employs 800,000 workers, 37 percent of whom work for Volkswagen, has been hard hit. Volkswagen’s financial woes forced it to shutter three German plants for the first time in its 87-year history and cut thousands of jobs.  Volkswagen further plans to reduce remaining workers’ wages by 10 percent. 

“We are not experiencing a crisis in the automotive industry, we are experiencing a crisis in Germany as a business location,” a spokesperson for VDA, Germany’s auto association, said in a statement. Amplifying Germany’s economic problems, a study commissioned by the Federation of German Industries, representing business groups, says one-fifth of Germany’s industrial output is at risk between now and 2030 due to high labor and energy costs, high taxes and an aging population.

Dunkelflaute

Germany’s energy situation was aggravated by the recent Dunkelflaute (“dark wind lull”). This phenomenon can prove economically debilitating as wind was Germany’s leading generator of electricity last year, accounting for 32 percent. Wind’s share was helped by Germany’s industrial energy use falling nearly eight percent last year, the second consecutive year of decline. 

During November’s six-day lull, Germany’s wind output fell to between six and seven percent of its nameplate capacity of 61 gigawatts. One day, it fell to nearly zero. Hydrocarbon-generated electricity supplied 48 percent of the power needed to keep the lights on. 

The wind lull brought bad news for Germany’s electricity customers. Prices soared to €820 ($879) per megawatt-hour, assuring Germany remains home to the most expensive power in Europe.  Residential electricity currently averages 0.40 euros, or about $0.43, per kilowatt-hour compared to $0.17 in the U.S. 

Prices remain at risk because of the restructuring of Germany’s power grid. Before closing its last nuclear power plant in 2022, the country exported power to neighbors. Since then, it’s become an electricity importer, making it susceptible to supply disruptions and price shocks. 

Wind’s problem came only weeks after the German government announced it would provide $17 billion in new subsidies to wind energy companies. The money will help them compete against cheaper Chinese wind turbines. In announcing the subsidies, German Energy Minister Robert Habeck said, “We must continue to keep this industry competitive and ensure future value creation within Germany and Europe.” 

The European Commission has said “at least 37 gigawatts of new wind power must be added annually, compared to the 17 GW added in 2022.” 

The University of Cologne estimates Germany’s 2025 alt-energy subsidies at $19.3 billion, $2.1 billion higher than its earlier estimate. The tab will explode with the additional $17 billion wind subsidy. 

Backlash

A projected 2024 economic contraction, Volkswagen cutting plants and workers, increased government wind subsidies, soaring electricity prices and a wind drought had people turning on the government.  They have lost faith in their leaders. The collapse of the ruling coalition triggered a snap election.  Germans have had enough. They want their lives restored to the tranquility that existed before the turmoil commenced. 

It isn’t only Germans upset with their government’s energy policies. 

The French and Dutch remain upset with their respective government’s policies. Add to them the Cubans, outraged at their nation’s electricity grid collapsing multiple times in October. The combination of poorly maintained old plants and fuel supply disruptions jeopardizes Cuba’s grid performance. The 10 million residents have experienced multiple-hour power outages for months, making their lives difficult. 

People are upset with electricity systems that are unreliable because of more renewable power. It costs them money and, in some cases, their jobs. Government claims of renewable energy being cheap are falsehoods while citizens’ taxes are raised to pay for increased subsidies. 

No More COPs?

Javier Milei, Argentina’s President, ordered his COP 29 delegation to return home. Few world leaders attended the U.N. conference, and some leading energy experts failed to appear. Speculation surfaced that this may be the last COP. 

Few attendees expected the conference to agree to fund the $1 trillion annual climate investment underdeveloped economies need. The hope is that more money than the 2009 agreement for $100 billion annually will be forthcoming. That target was barely met in 2022, two years behind schedule. 

Public skepticism about climate policies is growing. A recent study by climate scientist Roger Pielke, Jr., using updated population and GDP growth projections in the IEA’s current policies scenario, shows global temperatures to be only 2ºC higher in 2100, far less alarming than the disaster forecasts of climate activists. 

Pielke’s projection is consistent with the U.N.’s target. However, studies challenging the mainstream narrative rarely receive media attention. 

As dissatisfaction grows, politicians who prioritize aggressive climate policies over economic and electric grid stability are ousted by voters. Incumbents in every one of the 10 major elections this year were kicked out of office, the first time that’s happened in 120 years. The populace is angry. 

Pragmatic Approach

Many argue that a pragmatic energy approach is needed by emphasizing cleaner hydrocarbons while pushing for innovation in renewable technologies. 

Energy remains the lifeblood of the global economy. Successful transitions must ensure affordability and reliability. Hydrocarbons and nuclear are the only energy sources that can deliver. 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.


Trump to Expedite Fossil Fuel Infrastructure,

Roll Back Green Regulations


By ZeroHedge - Jan 20, 2025

President Trump is preparing to declare a national energy emergency and issue executive orders to reverse Biden's climate policies and boost domestic energy production.

The Trump administration aims to unleash new oil and gas development on federal lands and roll back regulations on fossil fuels.

Trump's energy policies prioritize domestic production, job creation, and lower energy costs for Americans.




President-elect Donald Trump is preparing to unleash a flurry of executive orders later this afternoon, reportedly numbering around 200, to reignite his 'America First' agenda. On the energy front, Trump is expected to declare a national energy emergency to ramp up domestic crude oil and natural gas production to reduce power bill costs for all Americans.

Later this afternoon, hours after Trump is sworn in, his administration will immediately get to work by declaring a "national energy emergency." According to Bloomberg, citing numerous sources, Trump plans to unleash new oil and gas development on federal lands while reversing the Biden-Harris administration's de-growth climate regulations.

"While many of the executive actions will simply kick off a lengthy regulatory process, they're set to touch the full spectrum of the US energy industry, from oil fields to car dealerships," Bloomberg noted, adding, "They also underscore Trump's determination to reorient federal government policy behind oil and gas production, a sharp pivot from Biden's efforts to curb fossil fuels."

Sources familiar with the orders did not specify how many emergency energy orders the incoming administration would issue later this afternoon. The move underscores Trump's commitment to campaign promises, including reducing household energy costs.

In a separate report, an incoming White House energy adviser told Axios that energy executive actions will create "conditions that facilitate investment, that facilitate job creation, that facilitate the production of America's natural resources, and the result will be lower prices for the American people."

"National security is a key issue here," the adviser said, adding, "Energy is fundamental to our foreign policy, and reducing American energy production curtails our ability to exercise our foreign policies."

At the Capital One Arena on Sunday, Trump told thousands in the audience, "We're going to be using our emergency powers to allow countries and entrepreneurs and people with a lot of money build big plants, AI plants."

He continued, "We need double the energy that we already have, and it's going to end up being more than that."

One of the emergency orders focuses on boosting electricity generation across the nation's fragile grid amid soaring load growth forecasts through the end of the decade because of the surge in new AI data centers coming online.

In "The Next AI Trade," we shared with readers all the drivers of electricity demand growth (including how to profit from this trend) and explained that it's much more than just AI.




Source: NERC - 2022 Long-Term Reliability Assessment (as of December-2022). Grid Strategies - The Era of Flat Power Demand is Over (as of December-2023).

The incoming energy advisor continued: "We're in an AI race with the People's Republic of China and other nations."

"It's fundamental that we're able to produce the necessary electricity here in the United States so that we can win that race and protect our nation," the advisor added.

Axios highlighted that Trump is focused on expediting the construction of fossil fuel infrastructure, including pipelines. The incoming admin is also expected to roll back a slew of Biden-era 'green' policies: A major slowdown of oil and gas leasing in the Gulf of Mexico and new bans in other coastal waters.

EPA greenhouse gas regulations on power plants, vehicles, and oil and gas infrastructure.
A "pause" on new LNG export licenses to major markets.

Restrictions on oil, gas and mineral projects in Alaska.

The big picture is that Trump's imminent energy executive orders will reverse the Biden-Harris administration's radical de-growth climate policies. These policies have been criticized for stifling US economic growth and stoking inflation while China ascends unabated.

By Zerohedge.com



DECOLONIZATION

How Nigeria’s $20B Refinery Disrupts European Markets

the Dangote refinery might end the decades-long gasoline trade from Europe to Africa, valued at $17 billion per year.


By Alex Kimani - Jan 19, 2025


Two months ago, Nigeria’s beleaguered energy sector witnessed a very significant event: the Dangote Oil Refinery began producing gasoline and selling it domestically to Nigeria's state oil firm, Nigerian National Petroleum Company (NNPC), marking the first time in decades Africa’s largest oil producer is refining its own crude.

The state-of-the-art $20.5 billion refinery was launched in January 2024, but only began producing gasoline in September, expected to reach full operations in November. The giant refinery has a capacity to process 650,000 barrels of crude per day, considerably bigger than any refinery in Europe and more than enough for Nigeria’s needs. To sweeten the deal further, the facility is buying crude and selling refined fuels in Nigeria in the local currency, saving the couium Motor Spirit (petrol) markets. According to OPEC, the Dangote refinery has cut down Nigeria's imports of petroleum products from Europe. According to experts, the Dangote refinery might end the decades-long gasoline trade from Europe to Africa, valued at $17 billion per year.

“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market,” the report states. “Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward.”





Source: Business Insider

The Oil Mafia

Unfortunately for Aliko Dangote, Africa’s second richest man and owner of the Dangote refinery, his giant plant has also put him on a collision course with Nigeria's feared ‘oil mafia’.

"I knew there would be a fight. But I didn’t know that the mafia in oil, they are stronger than the mafia in drugs," Mr Dangote told an investment conference in June.

"They don’t want the trade to stop. It’s a cartel. Dangote comes along and he’s going to disrupt them entirely. Their business is at risk,” says Mr Emmanuel, a Nigerian oil expert.

According to the BBC, since oil was discovered in the West African nation in 1956, the country’s downstream sector has largely been a cesspit of shady deals with little accountability by the NNPC. For decades, Nigeria has been producing and exporting its crude which is then refined abroad. NNPC swaps Nigeria’s crude oil for refined products, including petrol, which are shipped back home. Incredibly, it only started publishing its accounts five years ago, despite the fact that oil revenue accounts for nearly 90% of Nigeria’s export earnings. In other words, until recently, only the NNPC knew exactly how much money changed hands and who was involved in these "oil swaps".

Dangote’s new refinery should definitely be a boon for the country. Unfortunately, its arrival has coincided with developments completely out of his control. Since the 1970s, the NNPC has been subsidizing fuel prices for local buyers. Every year, the state-owned firm has been gradually clawing this money back by depositing lower royalty payments with the Nigerian treasury. However, Nigeria’s new President Bola Tinubu was forced to scrap the subsidy in 2023 after it cost the government $10bn, more than 40% of the total money it collected in taxes. Further, he stopped the policy of artificially propping up the value of the naira, and let market forces determine its value. Nigerians are now paying ~$2.30 per gallon of gasoline, dirt-cheap by U.S. standards but triple what they were paying just a couple of years ago.

Only time will tell whether the Dangote Refinery is able to achieve its full potential. Nigeria is the home of the famous Bonny Light crude, a light-sweet crude oil grade produced at the Bonny oil hub and an important benchmark crude for all West African crude production. Bonny Light has particularly good gasoline yields, which has made it a popular crude for U.S. refiners, particularly on the U.S. East Coast. Two years ago, Nigerian National Petroleum Company Limited (NNPC)CEO Melee Kyari revealed that Nigeria is losing nearly all the oil output at oil hub Bonny,

“As you may be aware, because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all others connecting all the 37 depots that we have across the country, none of them can take delivery of products today. The reason is very simple. For some of the lines, for instance, from Warri to Benin, we haven’t operated for 15 years. Every molecule of product that we put gets lost. Do you remember the sad fire incident close to Sapele that killed so many people? We had to shut it down, and as we speak, we have a high level of losses on our product pipeline,” he said.

Oil theft remains a major problem for the Nigerian energy sector, and could hinder the refinery from buying all of its crude locally.

“NNPC doesn’t have enough crude for Dangote. Despite all this instruction to give ample supply of crude to the refinery, NNPC can’t supply Dangote with more than 300,000 barrels per day," Mr Akinosho of the Africa Oil+Gas Report told BBC.

Meanwhile, the oil and gas multinational divestment from the Niger Delta that kicked off over a decade has hit a peak. Numerous oil and gas majors have exited the Nigerian market over the past few years despite Africa’s largest economy opening its doors for wider exploration courtesy of the Petroleum Industry Act (PIA) 2021. Nigeria’s oil production has declined to 1.3 million barrels per day currently from around 2.1 million barrels per day in 2018.

By Alex Kimani for Oilprice.com
Column: Global aluminum market faces a year of trade turbulence

Reuters | January 20, 2025 | 

Aluminum ingots. Stock image.

It’s going to be a busy year for aluminum traders as the global market navigates multiple geopolitical storms.


Topping the list of potential trade disruptions is the incoming Donald Trump administration and the threat of tariffs on US imports from Canada and Mexico, two of the country’s top suppliers of the light metal.

Next up is the prospect of the European Union (EU) banning imports of Russian aluminum as part of the bloc’s 16th sanctions package against Russia over its invasion of Ukraine.

That would accelerate Russia’s pivot towards Asia but China’s appetite for more aluminum is uncertain given the removal of the tax rebate on the country’s huge exports of semi-manufactured products.

Throw high alumina prices and falling London Metal Exchange (LME) aluminum stocks into the mix and it’s a recipe for market turbulence.

CME Midwest US, European and Japanese physical aluminum premiums


Trump 2.0


Will he, won’t he? Trump has repeatedly threatened to impose 25% tariffs on US aluminum imports from Canada and Mexico.

Canada is by some margin the largest supplier of primary metal to the United States, accounting for 79% of total imports in the first 11 months of 2024. Mexico is a major supplier of aluminum scrap and aluminum alloy.

The market is unconvinced that tariffs will be imposed, or at least for any extended period of time.

The CME Midwest premium contract, the best indicator of tariff risk, has risen since Trump won the US election in November but the gains have been muted relative to the notional impact of a 25% increase in cost to US consumers.

However, Trump has a history of disruption when it comes to Canadian aluminum. When he introduced 10% tariffs on aluminum imports in 2018, Canada was initially included, then exempted in 2019. It was included again in August 2020 before being exempted again a month later.

In his first administration Trump used aluminum tariffs as a blunt-force bargaining tool to force concessions across an array of trade disputes with his northern neighbour and there’s little reason to think Trump 2.0 is going to be any different.

China’s imports of primary aluminum


Russian roulette

The European Union is drawing up plans for a new round of sanctions on Russia next month as the war in Ukraine marks its three-year anniversary.

European policy-makers until now have held off on fully banning imports of Russian aluminum but that looks set to change this year.

EU aluminum users have been steadily weaning themselves off their dependency on primary Russian metal. The Russian share of the bloc’s total imports fell to 6% in the first 10 months of 2024 from 11% and 19% in 2023 and 2022 respectively.

But at 130,000 metric tons in the January-October period, Russian exports to Europe were not insignificant and any ban is likely to force a scramble for alternative suppliers.

Russia has steadily increased sales to Asian consumers over the last three years, particularly China.

China’s imports of Russian metal grew from 291,000 tons in 2021 to 1.2 million tons in 2023 and were on track to match that total in the first 11 months of 2024.

But can China continue absorbing so much metal?


The country ended tax rebates on exports of aluminum products such as bars, rods and foil at the start of December, potentially jeopardizing an annual flow of around five million tons to overseas markets.

That’s a worse-case scenario but there seems little doubt that semi-manufactured products exports will drop this year, reducing demand for imported primary metal.
Bullish cocktail

Rusal, Russia’s dominant producer, likely won’t have as much metal to shift this year.

The company said in November it would cut output by 6% in response to soaring prices for alumina, the raw material for smelter production.

Some of the heat has come out of the alumina market since then as a severe squeeze on the Shanghai Futures Exchange (ShFE) contract dissipated over the end of the year.

But ShFE prices are still up significantly on the start of 2024 and Western alumina prices remain stuck at elevated levels.

Stocks of aluminum on the LME, meanwhile, have been steadily falling in recent months and open tonnage of 249,000 tons is at its lowest level since May 2024.

There’s a lot of smoke and mirrors around LME aluminum inventory movements with warehouse arbitrage as important a driver as supply-demand fundamentals.

But the heady combination of raw materials tightness, low inventory and trade uncertainty has spurred LME three-month aluminum prices. They hit a one-month high of $2,700 in Monday trading.

LME time-spreads are tightening. The benchmark cash-to-three-months period this week is trading at a contango of $10 per ton, compared with $40 a month ago.

Seemingly overlooked in the market’s calculations is the potential chilling effect on global consumption of a full trade war between the United States and everyone else.

But then there’s a lot of other moving parts to the aluminum price equation right now and most of them are on the supply side.

However, the one certainty is that what was once a fully globalized market is going to fracture further into distinct geographical parts.

Regional physical premiums may be where the real action lies in the months ahead. That was certainly the case under Trump 1.0.

(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

(Editing by Jason Neely)

Australian government pledges $1.24 billion in green aluminum push

Reuters | January 19, 2025 | 4:17 pm Energy Australia Aluminum

Queensland Alumina Ltd is the world’s largest alumina refinery with access to a deep-water port in Queensland, Australia. (Image courtesy of Rio Tinto.)

Australia’s Labor government on Monday pledged A$2 billion ($1.24 billion) in production credits to help support the country’s four aluminum smelters switch to renewable power before 2036.


Aluminum is one of the most polluting nonferrous metals to make, as its current production is mostly powered by coal. Green aluminum usually refers to metal produced using solar, wind or hydropower.

The country’s four aluminum smelters are run by Rio Tinto and Alcoa.

Prime Minister Anthony Albanese, in his latest election pitch, said the smelters would receive government support for each metric ton of low-carbon aluminum they produce. His centre-left government has made renewable energy a major theme ahead of a national election, which must be called by May.

The Australian government is targeting 82% of power supply to come from renewables by 2030, but remains well short of the target, at 40% now, even after pledging to underwrite new wind, solar and battery projects with more than A$40 billion.

“We want Australian workers to make more things here,” Albanese said in a statement.

“We’ve got all the ingredients right here for a world-leading metals industry – from the best solar and wind resources, to the critical minerals and facilities, as well as a highly skilled workforce.”

The Australian Aluminium Council said it had been seeking production credits for the aluminum sector, the sixth-largest producer of the metal in the world, to attract private capital and ensure the industry remains globally competitive amid rising costs and longer regulatory processes.

“These new aluminum production credits should provide some of the transitional support needed as Australia’s energy infrastructure and systems develop, and energy pricing returns to competitive levels,” Council CEO Marghanita Johnson said.

($1 = 1.6134 Australian dollars)

(By Renju Jose; Editing by Sonali Paul)