It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Monday, December 16, 2024
RIP
Indian tabla drum maestro Zakir Hussain dies aged 73
By AFP December 16, 2024 Zakir Hussain was credited with bringing India's tabla drum into the mainstream - Copyright AFP Manjunath Kiran
Indian musician Zakir Hussain, a four-time Grammy award winner credited with turning tabla drums into an instrument loved globally, has died at the age of 73, officials said Monday.
Hussain collaborated with musicians including George Harrison from The Beatles, Mickey Hart from The Grateful Dead and jazz musician John Handy in a career spanning decades.
He died of a lung disease in the United States, local media reported, quoting a statement from his family.
Tributes poured in with fellow musician Amjad Ali Khan — who plays the Indian lute-like sarod — saying Hussain would “continue to bring the house down in the heavens”.
Indian Prime Minister Narendra Modi said he would be “remembered as a true genius who revolutionised the world of Indian classical music”.
Modi said he “brought the tabla to the global stage, captivating millions with his unparalleled rhythm”.
Hussain was born in India’s financial hub Mumbai, then known as Bombay, in 1951 to Alla Rakha, a tabla maestro himself.
He moved to the United States in 1970 and later formed the fusion band “Shakti”, or “Power”, with British guitarist John McLaughlin.
This year, the group won the Grammy for best global music album for their record “This Moment”.
The tabla, Hussain said in an interview with news agency Press Trust of India last year, was a “mate, a brother, a friend”.
“I find myself at a place where I cannot imagine that I can exist without it. It motivates me to get up in the morning and say, ‘hello’,” he said.
What the upcoming holiday GST relief will mean for consumers
By Tara Deschamps,
The Canadian Press
December 13, 2024
TORONTO — The federal government’s GST break will arrive this Saturday, just in time for the last stretch of holiday shopping.
Here’s a breakdown of what you’ll save on and how the relief works:
What is the tax relief?
In a bid to help Canadians deal with household costs amid the high cost of living, the federal government decided to waive the federal goods and services tax (GST), which is five per cent, on some products between Dec. 14 and Feb. 15.
For provinces with harmonized provincial and federal sales tax (HST), the full HST will be waived.
What products will see the GST waived?
The tax break will apply to: prepared foods, including vegetable trays, pre-made meals and salads and sandwiches restaurant meals, whether dine-in, takeout or delivery some snacks, including chips, candy and granola bars beer, wine and cider, as well as pre-mixed alcoholic beverages below seven per cent alcohol by volume (ABV) children’s clothing and footwear, car seats and diapers some children’s toys, such as board games, dolls, puzzles and video game consoles. some books and newspapers Christmas trees and Hanukkah trees or bushes What items don’t count?
Even product categories eligible for GST relief have plenty of exemptions.
Magazines, electronic publications, clothing for sports activities like wet suits, soccer cleats, skates and tap shoes, along with costumes, jewelry and adult clothing and footwear purchased for children aren’t eligible.
Diapers purchased from a diaper service or for adults, collectibles that are not intended for play or learning, such as hockey cards or collectible dolls, and toys and model sets that are marketed for adults like some adult Lego or train sets also don’t make the cut. What if my province charges HST?
Ontario and the Atlantic provinces have united the provincial and federal sales taxes together into a harmonized sales tax.
In these provinces, the entire HST would be removed from qualifying items. How do I get the tax break on qualifying items?
The tax break is designed to be automatically applied to totals at checkout by retailers when customers make qualifying purchases. What if I buy one of these items but it has to be delivered?
The federal government says no GST/HST will be charged on a qualifying item, as long as it is paid for in full between Dec. 14 and Feb. 15 and delivered or made available to the buyer during the same period.
The Retail Council of Canada says the Canada Revenue Agency will consider items “delivered” once they are handed over to a shipping, courier or postal service. What if the item is imported?
GST/HST won’t be charged on imported goods as long as they meet the product categories and criteria that qualify for relief. What about food deliveries?
When a prepared meal is ordered through a delivery platform, the food provided to the customer qualifies for GST/HST relief during the eligible period.
However, the delivery service fee charged by the platform to the customer does not qualify for GST/HST relief.
When a restaurant bills a customer directly for delivery of a prepared meal, the courier service qualifies for GST relief. Will I pay GST/HST on cocktails and mixed beverages?
Mixed drinks that include only eligible ingredients such as beer, malt liquor, or wine qualify for GST/HST relief. For example, the government says a mimosa made of sparkling wine and orange juice, or a michelada made of beer and non-alcoholic ingredients would qualify.
However, mixed drinks that include an alcoholic beverage like a spirit or liqueur which did not make the GST/HST relief list would not have the tax waived.
This means a sangria that includes both wine and rum, or a mixed drink such as a vodka and soda, would not qualify. What about gift baskets?
Gift baskets that contain food and other items are only exempt from the GST if 90 per cent or more of the total value of the basket corresponds to items that would have no GST/HST charged on them if they were supplied separately. Do I save the GST/HST on tips when I dine out?
A mandatory tip or gratuity included as part of the bill qualifies for GST/HST relief.
The exemption does not apply to a tip or gratuity that is given freely by a customer to an employee of an eating establishment, as such tips are normally not subject to GST or HST charges. What if I bought one of these items before the tax relief kicked in?
Some retailers, like Toys “R” Us Canada, are advertising that they will return the tax paid to customers who bought items before the GST/HST relief period began.
But retailers aren’t obliged to offer this gesture of goodwill.
“A business can choose not to refund or credit the customer the GST/HST that was previously paid,” Canada Revenue Agency spokesperson Benoit Sabourin said in an email to The Canadian Press.
This report by The Canadian Press was first published Dec. 13, 2024.
Canada unlikely to be ‘primary target’ of U.S. tariffs: FX strategist
U.S. President-elect Donald Trump’s tariff policy is unlikely to focus on Canada, according to one FX strategist, who says investors shouldn’t rule out the potential risks, but she’s optimistic Canada will be shielded from a worst-case scenario.
On his first day as president, Trump has threatened to implement across-the-board 25 per cent tariffs on imports from both Canada and Mexico, unless both nations address issues related to the U.S. border and crack down on fentanyl and illegal migration into the U.S., Bloomberg News reported.
In response, Prime Minister Justin Trudeau said tariffs of that nature would be “devastating for the Canadian economy,” while saying Canada would “respond” if Trump follows through on his threats.
“Our house view is that Canada will not be in the first line of fire. We think that the primary target as soon as Trump takes office will definitely be on China and the Euro area,” Jayati Bharadwaj, a global FX strategist at TD Securities, said in an interview with BNN Bloomberg Friday.
“China, we have precedents from Trump’s first term of him imposing tariffs. I think that’s a very clear sign that he’s going to do that.”
She added that he is also unlikely to “be an ally to the Euro area” in his second term as U.S. president. Given Canada’s membership in the United States-Mexico-Canada Agreement (USMCA) agreement, Bharadwaj said she thinks Canada could be shielded from the “first line of attack” from Trump.
However, she added that you cannot rule out the risks associated with the proposed tariffs.
“I would not rule that out as a risk, but I would say that’s not the first risk that should be front of mind for investors. But that’s definitely a second order risk which you cannot rule out,” Bharadwaj said.
Ottawa has sold its stake in Air Canada: CTV News sources
By Vassy Kapelos and Lynn Chaya,
CTV News
December 13, 2024
Two senior federal government sources have confirmed to CTV News that the federal government has sold its stake in Air Canada. The news was first reported by the Globe and Mail.
During the COVID-19 pandemic in 2021, the government purchased a six per cent stake in the airline for $500 million as part of a bailout package.
Ottawa’s rescue deal with Air Canada at the time included a $5.9-billion loan from the government to help support the airline after it lost billions of dollars during the pandemic.
As of Thursday afternoon, Air Canada shares closed at $25.28 on the Toronto Stock Exchange, up 23 cents.
CTV News reached out to the federal transport minister’s office and was referred instead to Deputy Prime Minister and Minister of Finance Chrystia Freeland’s office, who has not yet responded.
Last week, Transport Minister Anita Anand told CTV News she was “examining the particular legal relationship” with Air Canada in an effort to figure out how to dissuade the airline from bringing in additional carry-on fees.
Air Canada has yet to respond to CTV News' request for comment.
Ian Lee, associate professor at Carleton University’s Sprott School of Business, says the government should have never bought shares in Air Canada in the first place.
“Its role is the referee of the hockey game, it should not own the hockey team or tell Sidney Crosby when to shoot the puck,” he told CTV News Channel.
“The government of Canada provided billions of dollars to many thousands of corporations in Canada and did not take ownership positions in all those other companies.”
When asked about whether Ottawa selling its shares in Air Canada is in any way connected to the government’s spending announcement on Monday, Lee says yes.
“There’s an awful lot of buzz that they’re going to crank up spending yet again. And so, the government needs money. They’re rattling the cupboards to see what bits and pieces can be sold off.”
Canadian airline executives testify before parliamentary committee about bag fees
By Amanda Stephenson, The Canadian Press
December 13, 2024
Canadian airline executives in the hot seat over carry-on bag fees say the federal government needs to reform this country’s aviation system if it wants travel to become more affordable.
The CEOs of Air Canada and WestJet appeared before a parliamentary committee Friday to answer questions about their recent decisions to introduce carry-on bag fees for travellers.
Air Transat and Porter Airlines also testified Friday before the standing committee on transport, infrastructure and communities.
The executives faced tough questions from parliamentarians, who summoned them to testify following Air Canada’s announcement earlier this month that customers paying a basic fare can only bring on a personal item and will have to check carry-on bags for a fee.
Air Canada’s move follows an earlier decision by WestJet to introduce an “UltraBasic” fare class that allows passengers to carry no more than a laptop bag or small backpack on board.
The developments are part of an ongoing trend in the aviation sector, which has seen airlines rely increasingly on ancillary fees for formerly bundled services that range from checked bags to on-board snacks and Wi-Fi access.
Committee members on Friday challenged the airline CEOs about the layers of add-on fees, arguing they are making air travel increasingly unaffordable for Canadians.
“Do you truly believe this is acceptable at a time when Canadians' pocketbooks are hurting?” said Liberal MP Angelo Iacono.
Another Liberal MP, Vance Badawey, challenged WestJet — a private company that does not publicly release its financial information — to open up its books and disclose its profit margins.
“Because at the end of the day, that’s why we’re here right now,” Badawey said. “We’re here for affordability for the passengers.”
But the airline executives said by offering passengers a choice of fare categories with different service levels, they are actually making travel cheaper for Canadians.
“We all probably agree that competition is the best way to ensure the best service and prices for Canadians. It does that by allowing customers to compare products and letting the market decide which will succeed,” Air Canada CEO Michael Rousseau told the committee.
“We (Air Canada) must ensure our fares are comparable to those of our competitors while offering travellers the flexibility to pay only for the services they value.”
WestJet CEO Alexis von Hoensbroech said 1.2 million Canadians have chosen the airline’s UltraBasic fare since it was introduced in June, resulting in lowered travel costs as that fare is on average 14 per cent lower than WestJet’s next-cheapest option.
“This is savings that are important in a time where there’s an affordability crisis,” von Hoensbroech said in an interview Friday morning.
“So I think we actually do something that’s good ... And I do understand the perception that is out there, but I think it’s also important to share the facts.”
Von Hoensbroech said it’s easy for politicians to be “bashing airlines” because the affordability crisis is real. But he said if the federal government really wants to lower the costs of air travel, significant reforms to the system are needed.
He said air travel in Canada is among the most expensive globally, due in part to government policies and third-party fees. Navigation fees, security charges, airport improvement fees and other taxes and fees can add up to $100 to the price of a ticket, von Hoensbroech said.
He said the government needs to freeze hikes in third-party fees and charges to allow Canada’s aviation sector to compete globally.
He also said the federal government should cease charging rent to airports for the land they sit on, allowing airports to reinvest these funds into infrastructure and services instead.
But passenger rights advocate Gabor Lukacs, who also testified before the parliamentary committee, said he worries taxpayers will end up footing the bill if the government moves to freeze the amount air travellers pay for services like navigation and security.
“There is no free lunch. For those airline executives who say some of these fees should be lowered, as a passenger, I ask, who’s going to pay for it?” Lukacs said.
Federal Transport Minister Anita Anand has also expressed displeasure with the carry-on bag fees. She said in an interview Friday that she spoke to some of the airline executives about the issue earlier this week.
“What I stressed was the importance of taking into account the fact that Canadians work hard and save up to travel, and they expect excellent service, not extra fees,” Anand said.
“I also specifically raised the importance of transparency and accountability with the CEOs of Air Canada and WestJet.”
This report by The Canadian Press was first published Dec. 13, 2024.
Federal minister asks labour board to intervene in Canada Post strike
By Nick Murray,
The Canadian Press
December 13, 2024
Mail could begin moving again in Canada as early as next week after the federal government moved Friday to end the nearly month-long work stoppage at Canada Post.
Labour Minister Steven MacKinnon referred the dispute to the Canada Industrial Relations Board, with the aim of ordering the nearly 55,000 workers back to work and extending their current contract until May 22, 2025 — if the board determines a deal isn’t within reach before the end of the year.
In the meantime, MacKinnon said he will appoint an industrial inquiry commission to look into the bargaining issues and come up with recommendations by May 15 on how a new agreement can be reached.
“We’re calling a time out,” MacKinnon told a news conference in Ottawa.
“Suffice to say positions appeared to have hardened and it became clear to me we were in a total impasse.”
A federally appointed mediator withdrew themselves two weeks ago, saying at the time the two sides were too far apart to make a deal.
MacKinnon said since then, the negotiations have been “going in the wrong direction.”
Ottawa used section 107 of the Labour Code to make its move Friday, after using the same powers to intervene earlier this year in disputes at the country’s railways and ports, directing the board to order workers back to work and to order binding arbitration.
It’s a move that sparked legal challenges from the unions involved and that labour experts and advocates have said erodes workers' bargaining rights.
This time, the government’s use of section 107 is “more restrained,” said Alison Braley-Rattai, an associate professor of labour at Brock University.
Business groups have been calling on the government to intervene — though Canada Post did not. Up until Friday MacKinnon insisted intervention wasn’t in the cards.
But despite the wait, Braley-Rattai said she isn’t surprised the government ended up stepping in.
“It has been going on for a very long time,” she said of the dispute.
MacKinnon called the decision a creative solution by not sending the matter directly to binding arbitration — as the government did in the disputes at the railways and ports.
He said this doesn’t mean a deal will be automatically in reach by May, but hoped the inquiry can show a path forward that works for both Canada Post and its workers.
“There are major structural changes in that industry that have to be accounted for,” he said.
“There are workers' aspirations in that industry that have to be accounted for. Those have proved to be interests that are tough to reconcile. So I’m looking to try and triage those issues.”
The postal workers' union denounced the decision, calling it “an assault” on the right to collective bargaining.
“This order continues a deeply troubling pattern in which the government uses its arbitrary powers to let employers off the hook, drag their feet, and refuse to bargain in good faith with workers and their unions,” the Canadian Union of Postal Workers said in a statement.
Canada Post workers who were gathered outside a delivery centre east of Toronto on Friday morning expressed mixed feelings about the news.
Striking worker Kirk Gonnsen said he feels workers were let down by Canada Post and the government, but he’s happy that workers struggling to pay their bills will be able to earn some money again.
Union member Denise Caster accused Canada Post of not being willing to engage in “good faith” talks.
“I want to get back to work, we all want to get back to work,” she said. “We were hoping to get back to work with a fair negotiated contract.”
Canada Post said it’s reviewing the details of the announcement and that it looks forward to getting back to work.
It added its commitment has always been to reach negotiated agreements.
The Canadian Federation of Independent Business welcomed the move. It estimates small businesses have been losing a combined $100 million every day.
“This will be too late to salvage any of the Christmas holiday season for small businesses,” CFIB president Dan Kelly said in a statement.
“With a massive backlog, it will be nearly impossible for any new shipments to make it to Canadians before Christmas through Canada Post.”
Kelly said the resumption of mail will help businesses waiting for cheque payments from customers. He said lack of mail delivery has made it hard for small businesses to pay their bills.
MacKinnon acknowledged the effect on small businesses and remote communities, as well as on passport deliveries, immigration paperwork, and health cards. He said there are 50,000 permanent resident cards yet to be mailed, 190,000 passports, and the Canada Revenue Agency is holding more than 1.65 million pieces of secure correspondence.
— With files from Sharif Hassan in Toronto.
This report by The Canadian Press was first published Dec. 13, 2024.
WORKERS CAPITAL
Ottawa to remove 30% investment cap for Canadian pension funds
TORONTO — Finance Minister Chrystia Freeland says the upcoming fall economic statement on Monday will remove the cap that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.
Freeland said this would make it easier for Canadian pension funds to make significant investments in Canadian entities. The federal government plans to consult with the provinces on the treatment of provincially-regulated pension plans during the development of regulatory amendments.
It’s part of a list of measures unveiled by Freeland during a news conference in Toronto on Friday.
The announcement comes after a review led by former Bank of Canada governor Stephen Poloz on catalyzing domestic investment by Canadian pension funds.
“Canadian pension funds have over $3 trillion in assets and some of the world’s best investment expertise,” Freeland told reporters.
“Our pension funds invest Canadian money. They’re run by Canadians who live here, who love Canada, and who would love to invest more here, closer to home.”
Ottawa is introducing other measures such as a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding available in 2025-26. It said this round will include more enticing terms for pension funds and other institutional investors.
The federal government is also providing up to an aggregate of $1 billion to invest in mid-cap growth companies and unlocking up to $45 billion in aggregate loan and equity investments for certain artificial intelligence data centre projects.
Another part of the announcement was aimed at potentially lowering the threshold that limits municipal-owned utility corporations from attracting more than 10 per cent private sector ownership, which Ottawa says would help Canadian pension funds acquire a higher ownership share.
The government will also consult airports and pension funds on potential ways to further incentivize investment on airport lands, such as by making changes to airport authority ground leases.
Freeland said the moves come as Canada is “in a global fight for capital,” especially due to policies of the incoming Trump administration in the U.S.
The deputy prime minister said the Trump administration, which she described as “economic nationalist,” is trying to create economic uncertainty outside the U.S. “as a strategy to discourage investment anywhere other than the United States.”
“We have to be candid about the reality of the incoming U.S. administration. This is an administration that believes in America first,” said Freeland.
“Canada is going to fight for Canada. Our government is fighting for Canadian jobs.”
This report by The Canadian Press was first published Dec. 13, 2024.
Last Energy's South Wales nuclear project gets US export bank boost
Friday, 13 December 2024
Microreactor developer Last Energy says it has received a letter of intent from the Export-Import Bank of the United States for USD103.7 million debt financing relating to its project in South Wales in the UK.
A rendering of the Llynfi Clean Energy Project (Image: Last Energy)
The company says that the letter, from the bank's structured and project finance division, confirms its "willingness to diligence" the financing and follows an in-depth review of Last Energy's "technology, business model, manufacturing plan and access to nuclear fuel. Upon final commitment, the Bank’s facility would cover Last Energy’s entire costs for a single power plant installation".
US-based Last Energy is a spin-off of the Energy Impact Center, a research institute devoted to accelerating the clean energy transition through innovation. Its reactor technology is based on a pressurised water reactor with a capacity of 20 MWe or 80 MWt. Power plant modules would be built off-site and assembled in modules.
A Last Energy plant, referred to as the PWR-20, is comprised of a few dozen modules that, it says, "snap together like a Lego kit". The PWR-20 is designed to be fabricated, transported, and assembled within 24 months, and is sized to serve private industrial customers, including data centres. Under its development model, Last Energy owns and operates its plug-and-play power plant on the customer's site, bypassing the decade-long development timelines of electric transmission grid upgrade requirements.
The company has been advancing plans to develop four PWR-20 units on the vacant site of the Llynfi coal-fired power station. It said the new plant would "provide energy security to local manufacturers, create jobs, and unleash a long-term economic investment in the region". The Llynfi power station - a 120 MW coal plant - operated between 1951 and 1977. Following decommissioning in 1977, the 14-acre site has remained vacant.
Bret Kugelmass, Founder and CEO of Last Energy, said: "Receiving this Letter of Interest from EXIM is the latest in a series of recent milestones that further validates Last Energy’s unique approach to accelerating nuclear deployment by focusing on design for manufacturability. They put us through the wringer - interrogating our physics, technology, supply chain, business model, partnerships, and timelines to delivery - and, after 18 months of rigorous review, have determined that we’re ready for the next step."
Last Energy said it has been actively engaging with the UK's Office for Nuclear Regulation, Natural Resources Wales, Planning and Environment Decisions Wales, the Environmental Agency, and with local and national Welsh and UK officials, and will continue to do so throughout the project. The company said in October it was targeting 2027 to commission the first plant, "following a successful planning and licensing process".
Last Energy estimates the entire project represents a capital investment of GBP300 million (USD393 million), which will not require public funding. Contracts with local suppliers would amount to more than GBP30 million, while more than 100 full-time local jobs would also be created.
Last Energy announced agreements for 34 units in 2023 and began 2024 with agreements for 50 units. Of the agreements, 39 of the 80 units are slated to be built to serve data centre developers. The company says its goal is to build 10,000 units in the next 15 years.
The Export-Import Bank of the United States (EXIM) is the country's official export credit agency "with the mission of supporting American jobs by facilitating US exports. To advance American competitiveness and assist US businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans".
US regulator authorises Urenco plant to increase enrichment
Friday, 13 December 2024
The US Nuclear Regulatory Commission has approved Urenco USA's licence amendment request to increase uranium enrichment levels up to 10% at its facility in New Mexico.
The approval was presented to UUSA's Chief Nuclear Officer Paul Lorskulsint (seated, left) by NRC’s Nuclear Material Safety & Safeguards Office Director John Lubinski (standing, second from right) and Division of Fuel Management Director Shana Helton (fourth from right) at the regulator's Rockville, Maryland headquarters (Image: UUSA)
The Urenco USA centrifuge enrichment plant is the only operating commercial uranium enrichment facility in North America - and increasing its enrichment limit to 10% uranium-235 is a significant step forward for the US civil nuclear industry, the company said.
According to an entry in the US Federal Register, the NRC staff is issuing an environmental assessment and a finding of no significant impact - also known as a FONSI - for the application to amend the plant's licence to increase allowed enrichment from the current limit of 5.5 weight percent U-235 (low-enriched uranium or LEU) to less than 10 weight percent U-235 (known as LEU+). The next step will be an NRC review of Urenco USA's implementation of requirements in the amendment, which is anticipated in late Spring 2025. Urenco USA (UUSA) will be authorised to produce enrichment levels up to 10% U-235 in all cascades at the facility.
“This positive progress is important to support the nuclear industry to create fuels that will reduce outage cycles for current reactors, provide fuels for some advanced reactor types, and assist our current and future customers”, said UUSA Managing Director John Kirkpatrick.
UUSA's current capacity of 4.4 million separative work units (SWU) supplies one-third of the USA's domestic enrichment demand, and is licensed to produce up to 10 million SWU, Kirkpatrick said. "Our strong infrastructure, deep expertise, and market longevity put us in a unique position to continue supporting the existing US nuclear fleet," he added.”
France supports financing of Polish nuclear power plant
Friday, 13 December 2024
France's Bpifrance Assurance Export and Sfil have joined the growing list of overseas financial institutions expressing interest in helping to finance Poland's first nuclear power plant project. Meanwhile, a poll shows record public support for nuclear energy in Poland.
(Image: PEJ)
Export credit agency Bpifrance Assurance Export and public development bank Sfil have submitted letters of intent to Polskie Elektrownie Jądrowe (PEJ) regarding financing of the Pomeranian power plant for the equivalent of more than PLN15 billion (USD3.75 billion).
"The letters of intent from two French institutions are yet more proof of the growing interest in Polish nuclear investment," said PEJ Vice-President Piotr Piela. "We are pleased to have acquired such experienced and reliable partners. We are consistently implementing our strategy of obtaining financing for the project and are expanding the group of leading entities cooperating with us, financing the nuclear sector."
The announcement came just days after PEJ received a letter of intent from Export Development Canada, for up to CAD2.02 billion (USD1.45 billion) to potentially support the project.
Last month, the US International Development Finance Corporation - the USA's development bank - signed a letter of interest with PEJ to provide more than USD980 million in financing for Poland's first nuclear power plant. A similar declaration, for the equivalent of about PLN70 billion, was made earlier by the US Export-Import Bank.
"Close cooperation with foreign credit entities is an important element of PEJ's strategy, which ensures financing of the company's investments and assumes building relationships with suppliers from countries with an extensive supply chain in the nuclear industry," PEJ said. "The aim is to maximise the share of export credit agencies in the project's debt financing structure."
Based on the letters of intent received so far, PEJ has collected declarations of financial commitment totalling more than PLN95 billion.
In November 2022, the then Polish government selected 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 - a special-purpose vehicle 100% owned by Poland's State Treasury. The 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.
Under an engineering services agreement signed in September last year, in cooperation with PEJ, Westinghouse and Bechtel will finalise a site-specific design for a plant featuring three AP1000 reactors. The design/engineering documentation includes the main components of the power plant: the nuclear island, the turbine island and the associated installations and auxiliary equipment, as well as administrative buildings and infrastructure related to the safety of the facility. The contract also involves supporting the investment process and bringing it in line with current legal regulations in cooperation with the National Atomic Energy Agency and the Office of Technical Inspection.
In September, the Polish government announced its intention to allocate PLN60 billion to fund the country's first nuclear power plant.
High public support for nuclear
A survey conducted last month on behalf of the Ministry of Industry shows that 92.5% of respondents support the construction of a nuclear power plant in Poland, with 67.9% strongly in support. Just 5.9% of respondents oppose the construction of a plant, with 2.8% being strongly opposed.
The ministry noted that the survey results show support for nuclear at its highest level since the annual poll began in 2012.
In addition, 79.6% of respondents said they would approve of a plant being built in the area in which they live, while 18.8% are opposed. The number of supporters of building a nuclear power plant in their neighbourhood increased by 3 percentage points compared with a year ago.
Just over 90% of respondents believe that building a nuclear power plant as a low-emission source of energy generation was a good way to combat climate change, while 4.2% believe that constructing a nuclear power plant in Poland will contribute to increasing the country's energy security.
While 65.1% of respondents said they had a good or higher knowledge of nuclear energy, 96.6% said they believe that an information campaign on nuclear energy was needed in Poland. When asked where they got their information about nuclear energy from, 72.3% of respondents said the Internet, 34.7% said television, and 29.1% said conversations with friends.
The nationwide telephone survey commissioned by the Ministry of Industry was carried out by DANAE on 12-28 November on a group of 2060 Polish residents aged 15-75.
U-235 is the main fissile isotope of uranium and occurs at a concentration of about 0.7% in natural uranium. Standard fuel used in today's operating light water reactors uses LEU, with enrichment levels up to about 4.8% U-235. But higher-enriched - or LEU+ - fuel containing up to 10% U-235 can potentially offer improved nuclear fuel cycle economics for currently operating reactors.
Urenco subsidiary Louisiana Energy Services LLC was announced by the US Department of Energy (DOE) earlier this week as one of six companies selected to compete for contracts to supply the department with LEU. In October, it was one of four companies selected by the DOE to provide enrichment services to help establish a US supply of high-assay low-enriched uranium, enriched to between 5% and 20% U-235. Fuels containing this material - known as HALEU - will be required to fuel many of the advanced reactors and small modular reactors that are now being developed.
Russia starts decommissioning plutonium-producing reactor
Friday, 13 December 2024
Decommissioning of the ADE-2 water-cooled uranium-graphite thermal neutron reactor has begun at the Mining and Chemical Combine in Zheleznogorsk, in the Krasnoyarsk region of Russia, Rosatom has announced.
(Image: Rosatom)
ADE-2 began operation in December 1963 and was shut down in April 2010. It was a dual-purpose reactor - in addition to producing weapons-grade plutonium it also provided heat and electricity. Since its closure, the reactor has been operated in the final shutdown mode: the nuclear fuel was unloaded and reprocessed, and the facility was brought to a nuclear-safe condition. It will become the third industrial uranium-graphite reactor at the Mining and Chemical Combine (MCC) to be decommissioned.
The decommissioning of the first stage facilities, where the molten salt research reactor (IZhSR) is planned to be built, will last two years.
The IZhSR project plans to use circulating molten salt fuel. It is part of the wider Russian federal project to develop "new materials and technologies for advanced energy systems" and part of the country's goal of closing the fuel cycle.
"While carrying out the tasks of decommissioning two previous uranium-graphite reactors (AD and ADE-1), the company's employees not only gained valuable experience, but also received several patents for inventions," said MCC Director General Dmitry Kolupaev. "Such projects have no analogues in the world. This is something to be proud of, and we cannot stop there.
"In the near future, new areas of the company's activity will be developed on the areas that are freed up during decommissioning, including an environmentally significant project - a research molten salt reactor. This technology, which makes it possible to utilise minor actinides, is being implemented on an industrial scale for the first time."
Daniil Zhirnikov, director of the decommissioning production at YaRO, added: "The peculiarity of the work that has begun is that the decommissioning of ADE-2 also requires the almost complete dismantling of the underground nuclear thermal power plant. This year alone, it is necessary to dismantle and dispose of more than 200 tonnes of thermal insulation and more than 700 tonnes of metal. In addition to dismantling all pipelines, cables, steam generators, and heat exchangers of the 1963 model, it is necessary to dismantle the reinforced concrete boxes and walls, preparing the site for the placement of the IZhSR and related infrastructure."
Once the work is completed, the ADE-2 reactor will become an industry museum. Therefore, during the decommissioning of the second-stage facilities, it is planned to preserve the historical appearance of ADE-2 itself as much as possible.
In the case of ADE-2, Rosatom noted, the scope of work will be significantly greater than with AD and ADE-1, which were single-purpose, performed only defence tasks and were successfully decommissioned in 2023 using the 'in-place burial' option. In-place burial involves the gradual filling of the space and circuits of the reactor itself, some adjacent non-reactor rooms, with barrier material.
Under a memorandum of understanding with Westinghouse, BWXT Canada has the potential to manufacture key AP1000 and AP300 reactor components, including steam generators, reactor vessels, pressure vessels and heat exchangers.
Vogtle Unit 3, one of two new AP1000 reactors at the plant (Image: Georgia Power/Westinghouse)
BWXT's headquarters are in Cambridge, Ontario, Canada, and it has more than 60 years of experience in the design, manufacturing and servicing of nuclear power equipment.
Westinghouse, which is now owned by Canada's Brookfield and Cameco, notes that, together with other agreements signed with Canadian firms to support Westinghouse projects globally, each AP1000 unit built outside Canada could generate CAD1 billion (USD703 million) in gross domestic product for suppliers in the country.
John MacQuarrie, President of BWXT Commercial Operations, said: "BWXT has unmatched manufacturing capabilities that support the global current and future nuclear fleets. We are ready to leverage our highly-skilled Canadian workforce and decades of experience to bring Westinghouse’s designs to life and expand the power of clean energy around the globe."
John Gorman, President of Westinghouse Canada, said: "Canada is home to one of the strongest nuclear supply chains in the Western world, that when combined with the US supply chain, provides a powerful platform to deliver new nuclear generation quickly to North America. By taking advantage of our combined presence in both Canada and the US, Westinghouse and BWXT will work together to further strengthen both nations' capacity to promote and build cost-effective nuclear solutions at home and abroad."
Dan Lipman, President of Westinghouse Energy Systems, said: "BWXT Canada is a leading supply chain partner that will help us deliver North America’s next AP1000 project on time and on budget."
Earlier this week Polskie Elektrownie Jądrowe announced it has received a letter of intent from Export Development Canada, for up to CAD2.02 billion (USD1.45 billion) to potentially support Poland's first nuclear power plant project, which is due to feature AP1000 reactors.
Australia’s $211 billion nuclear plan to change uranium mining
Staff Writer | December 13, 2024 | South Australia’s Olympic Dam copper, gold, uranium mine. (Image courtesy of BHP.)
Australia’s opposition leader, Peter Dutton, has unveiled a A$311 billion ($211bn) plan to introduce nuclear power into the country’s energy mix, a proposal that could radically alter the nation’s energy policy and its uranium mining industry.
The scheme, based on an economic modelling by Frontier Economics, proposes the construction of seven nuclear power plants by 2050, with the first expected to start operations by 2036.
If successful, the plan would transform Australia, which is grappling with rising energy demands and the need for more reliable and affordable electricity, into a nuclear-powered nation.
Dutton, leader of the centre-right Liberal Party, has positioned nuclear power as the cornerstone of Australia’s economic future, calling it essential for decarbonizing the grid, lowering energy costs, and ensuring a stable electricity supply.
“Nuclear power will underpin the economic success of our country for the next century,” Dutton said, according to Bloomberg. “This will make electricity reliable. It will make it more consistent. It will make it cheaper for Australians, and it will help us decarbonize.” Leaders divided
The plan is already sparking fierce debate, as its success would not only transform Australia’s energy landscape but also change its uranium mining industry, which has long been restricted despite the nation’s vast reserves.
Australia is currently the world’s fourth-largest uranium producer and holds an estimated one-third of the planet’s known reserves. Yet, uranium mining remains banned in Western Australia and Queensland, two states with major deposits.
While South Australia is home to three operational uranium mines — including the Olympic Dam, which is the largest known uranium deposit in the world — mining activity remains limited. The other active sites, Four Mile and Ranger, have smaller footprints, with Ranger nearing the end of its lifecycle. This underutilization contrasts sharply with growing global demand for uranium as countries seek cleaner alternatives to fossil fuels.
Critics also argue that while Australia’s parliamentary Coalition, consisting of the Liberal Party and the Nationals, is dedicated to achieving net zero emissions by 2050, Dutton’s preferred approach would likely result in increased emissions leading up to that year.
Climate Change and Energy Minister Chris Bowen warned that the situation would likely jeopardize Australia’s ability to meet the global goal of limiting climate change to two degrees Celsius. He pointed out that the modelling assumes electricity demand will rise less than the government anticipates, despite the expanding use of energy-intensive artificial intelligence and the surging popularity of electric vehicles.
Bowen described the plan as “a dangerous error,” cautioning that it could leave Australians without sufficient energy to meet their needs.
Advocates of Dutton’s nuclear plan believe that lifting mining restrictions is a logical next step to ensure a steady domestic uranium supply. Doing so could unlock billions of dollars in economic opportunities, attract foreign investment, and create thousands of jobs. Western Australia, for instance, could see dormant projects revived.
The Minerals Council of Australia, a strong proponent of lifting mining bans, has long argued that Australia is well-positioned to meet global clean energy demand. It notes that countries worldwide are ramping up nuclear energy adoption, creating an unprecedented demand for uranium. Allowing more mining activity would enable Australia to play a larger role in the international market, challenging current leaders like Kazakhstan, Canada, and Namibia. Exploration boom
The stakes for uranium mining in Australia are particularly high, given the nation’s geopolitical stability and abundant resources. If mining restrictions are lifted in Western Australia and Queensland, industry experts predict a surge in exploration and development. This could transform regions that are currently untapped for uranium into mining hubs, driving economic growth and strengthening Australia’s role as a global energy leader.
Dutton’s nuclear vision is far from universally embraced. The plan faces significant political and environmental hurdles. Prime Minister Anthony Albanese’s centre-left Labour government has shown no interest in nuclear power, focusing instead on expanding renewable energy sources like wind and solar.
Critics argue that nuclear energy’s high upfront costs and challenges with radioactive waste management outweigh its potential benefits.
Environmental groups have also opposed uranium mining for decades, citing concerns about ecological damage and contamination risks.
If Dutton’s proposal moves forward, it would also place significant pressure on Australia’s regulatory framework for uranium mining. The potential expansion of mining activity would require updated environmental guidelines, new infrastructure, and investments in workforce training.
Nuclear cheaper, cleaner option for Australia, says report
The Australian opposition says newly released economic analysis shows its plan for a balanced energy mix that includes nuclear will be cheaper, cleaner, and more consistent than the renewables-only approach favoured by the current government.
Dutton, watched by Littleproud, announced the costings at a televised press conference (Image: screengrab from ABC News/Youtube)
The report - Economic analysis of including nuclear power in the NEM, from independent economic consultants Frontier Energy - models two scenarios: the Progressive scenario, which is consistent with the Australian Federal Coalition's policy of including nuclear power, and the Step Change scenario, which reflects the policy being pursued by the current Labor government and relies on renewables and energy storages. Both scenarios are included in the Australian Energy Market Operator's (AEMO) Integrated Systems Plan.
Many commentators compare the costs of renewable generation plus the costs of back-up generation to the capacity and operating costs of a nuclear power station, but this "simple and erroneous" approach is incorrect and misleading, the report says. This is because such an approach fails to account for factors such as the larger amount of renewable capacity required to produce the same amount of electricity compared to a nuclear power station, or the requirement to store surplus electricity from renewable sources as well as the back-up generation.
The Progressive scenario offers a potential saving of AUD263 billion over the period from 2025-2051 and is 44% cheaper than the Step Change approach, the report finds. A variant of the Step Change model that included some nuclear would also be cheaper than using renewables and storage alone, the report also notes.
"You can’t compare renewable energy and nuclear power generation and costs like apples to apples. We’ve done the modelling in these AEMO scenarios with a wider, and more detailed, lens on how the two options compare in real life, and the data speaks for itself. In both scenarios, including nuclear power in our energy mix is cheaper - by up to 44% - for Australians in the medium-term future," said Frontier Economics Managing Director Danny Price.
The report is the second part of a series from independent economic consultants Frontier Energy on modelling the economics of including nuclear in Australia’s National Electricity Market (NEM): the first part, released in November, established the base case against which to compare cost impacts based on the AEMO Integrated Systems Plan. Its release comes days after CSIRO, Australia’s national science agency, released for public comment the draft of its annual GenCost report - prepared in collaboration with AEMO - which questioned nuclear's cost competitiveness.
The Liberal-National Coalition, also known as the LNP, is a long-running alliance of the Liberal Party of Australia, led by Peter Dutton, and the National Party, led by David Littleproud. Today, Dutton, Littleproud and Shadow Minister for Climate Change Ted O'Brien said the Frontier Economics report "reveals the Coalition’s balanced energy mix, including zero-emissions nuclear power, offers a cheaper, cleaner, and more consistent alternative, delivering massive savings for Australian families and businesses" and also enable Australia to meet net zero emissions by 2050.
"This is a plan which will underpin the economic success of our country for the next century," Dutton said. "This will make electricity reliable, it will make it more consistent, it’ll make it cheaper for Australians, and it will help us decarbonise as a trading economy, as we must."
"If we look at the international experience - in Asia, in North America, in Europe, all of these countries have recognised the fact, firstly, that there is no hope of achieving net zero by 2050 without nuclear in the system firming up renewables," he told a press conference at which the costings for the Coalition policy were outlined.
Earlier this year, the Coalition identified several sites where it would look to build nuclear capacity - small modular reactors in South Australia and Western Australia and either small modular reactors or larger plants in New South Wales, Queensland and Victoria - if it is elected to power. Questioned about the timelines for a nuclear programme, O'Brien said the Coalition's plan is consistent with international averages, International Atomic Energy Agency guidance and advice from the Australian government's Nuclear Technology Agency. "So our plan is consistent with the best advice that you can receive - both domestically and internationally," he said.
Australia's Minister for Climate Change and Energy Chris Bowen dismissed the Opposition's costings as "dodgy" and containing "immediately fatal flaws", saying it had failed to address questions about household bills and the time taken to build nuclear power plants, amongst other things.
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