Technology Review - Published By MIT
Advertisement

Potential Energy


Kevin Bullis is Technology Review’s energy editor.

Recent Posts

Blog Topics

Recent Comments

  • Bob... : Anything in an EV that is "consumed".    Nothing that I can think of in the sense of how ICEs...
  • Bob... : Might seem biased, but let's review a couple of facts.  1) We are not going to be able to produce...
  • KGC : I see a lot of reference about the military being considered a "hidden" subsidy. I would not...
  • mkogrady : We also spend $300 billion overseas providing safety to some of those fossil fuels from the...
  • KGC : This is the third article I've seen on TR in the past week and a half lending a sympathetic ear...
  • Tony... : The stark contrast of high global subsidies for the fossil fuel industry vs. renewables is even...
  • Vailhem : Solar may only work when the suns out while wind works best at night (energy storage aside).  The...
  • mattgroom : They make the point most of us are aware of and that is that in 20 years renewables will be a...
  • Bob... : Perhaps decades for renewables to replace fossil fuels, but do we want it to be large or small...
  • gabrielg01 : We need to unmask the fraud the fossil fuels industry is playing.   They always channel and...
Advertisement
Tuesday, February 16, 2010

DOE Issues Nuclear Guarantee

It promises to back loans for the first new nuclear reactors in decades.
By Kevin Bullis

The government has been promising to guarantee loans for nuclear power plants for years--as a way of bringing down the cost of financing these fantastically expensive projects. Now the Department of Energy has actually issued its first one, an $8.33 billion guarantee to support the construction of two nuclear reactors to be built at the site of an existing nuclear power plant in Burke, GA.

It's been decades since new nuclear reactors have been built in the United States. In 2005 Congress passed a law allowing the DOE to issue loan guarantees for nuclear power plants to get construction going again. But it's taken until now for the department to issue one. (Read the TR article "Obama Goes Nuclear" to see why the guarantees are needed.) The $8.33 billion is part of the $18.5 billion provided for such loan guarantees in the 2005 bill. President Obama's proposed budget would increase the total by $36 billion, enough for about seven new plants.

The loan guarantee for the Burke reactors comes with a catch, however. The design for the nuclear reactors to be used there--the Westinghouse AP1000--hasn't yet passed muster with the Nuclear Regulatory Commission. Last October the commission informed Westinghouse that it had to fix problems with the "shield building" which is supposed to protect the reactor from "severe weather and other events."

Comments

  • Foolish direction
    Since US nukes are indemnified to a small fraction of the liability, they are able to operate. No private insurance company would ever insure them. The power company also has no liability to dispose of the waist and we have no way of safely disposing of it. Take away these subsidies and Nuclear Power is no longer feasible.

    The money being wasted on Nuclear Power were invested into Solar, wind, wave, etc. we would break our addition to oil very quickly.

    This all seems like political favors. Just goes to show all politicians are corrupt and self serving.
    Rate this comment: 12345

    murraypetera
    02/16/2010
    Posts:2
    Avg Rating:
    2/5
    • Re: Foolish direction
      Unfortunately, human errors have caused problems at many of the current power plants, including 3 Mile Island, Browns Ferry and it seems monthly at San Onofre.
      40 years ago, I was a frequent visitor at Nuclear Fuel Services, a prototype reprocessing plant in West Valley, NY that was the biggest nuclear hazard I've ever seen - all due to human errors. Most nuclear sites have become superfund sites. Anybody doing an online search turns up multiple incidents here in the USA. Then there is Chernobyl...
      But France has done well. Why?
      I do have a suggestion. If we're going to spend all those $billions building a nuclear plant, why not go ahead and bury it a couple of thousand feet underground. When it's decommissioned, it will already be buried. During it's lifetime, it's not likely to affect anybody on the surface and it can be easily guarded from terrorists.
      Rate this comment: 12345

      fiberman
      02/17/2010
      Posts:113
      Avg Rating:
      3/5
      • Re: Foolish direction
        The accidents you cite are over 30 years old, and Chernobyl is not relevant to US nuclear facilities at all.  Please identify for the readers here all of the death and destruction you seem so sure is a problem.  You seem to have lots of information; I'd like to see links to what you're talking about.

        Or are you just blowing smoke here?
        Rate this comment: 12345

        kstauff
        02/17/2010
        Posts:129
        Avg Rating:
        4/5
        • Re: Foolish direction
          And which part of the nuclear power industry do you work for?
          Want to quote statistics on the uptime of nuclear power plants? The actual costs of generating electricity? Success of plans to store nuclear waste? Why they are better than other potential alternative (to oil or gas) sources of energy?
          I have been in industries selling to nuclear industries and R&D since 1968 and have acquaintances who have investigated accidents.
          So spill the beans on your slant.
          Rate this comment: 12345

          fiberman
          02/17/2010
          Posts:113
          Avg Rating:
          3/5
          • Re: Foolish direction
            I don't work in the nuclear industry.  You haven't provided any of the information I requested.  I await your informative response.
            Rate this comment: 12345

            kstauff
            02/17/2010
            Posts:129
            Avg Rating:
            4/5
    • Re: Foolish direction
      Nuclear power is reliably on 24/7.
      Predictable, dispatchable.

      There is simply nothing like this in the "alternative" energy arena where everything costs more and has less reliability.

      Dominion Virginia Power creates nuclear electricity at 1.4 cents/Kw-hr here in central VA.

      Compare that to the going rate of Renewable Energy Credits in the Dominion PJM interconnect... which run $0.20-0.66 per KW-hr.
      Rate this comment: 12345

      R Sweeney
      02/18/2010
      Posts:15
      Avg Rating:
      3/5
  • Why not Geothermal
    Dollar for dollar and Kwh for Kwh the DOE would be better to use resouces on Geothermal Guarantee.
    If we help finance any energy it should be able to be cheap clean and come on line in the near future.  This is another demonstration of the bias of the current head of the DOE and the wrong direction of the O'bama administration.

    Decentralized energy is beter than centralized production and distribution.

    Eric
    Rate this comment: 12345

    eric25001
    02/16/2010
    Posts:8
    Avg Rating:
    4/5
    • Re: Why not Geothermal
      There actually has been significant investment in geothermal by this administration--$350 million in the stimulus bill. 

      That doesn't sound like much compared to the billions for loan guarantees--but the loan guarantees aren't grants. As long as the power plants get built, even if the loans go into default, it's likely that the gov't will recover the greater part of this money.  It has first rights to recovery, and nuclear power plants, even if electricity prices are low, will still bring in some money. (The worst case scenario is that they don't get built--that's in part why the guarantees are conditional.)
      Rate this comment: 12345

      Kevin Bullis
      02/17/2010
      Posts:126
      Avg Rating:
      4/5
    • Re: Why not Geothermal
      There have been two recent closures of geothermal projects here in the US due to environmental issues.  Geothermal, under the right circumstances, is certainly a source to consider.  But it's not the holy grail of energy.
      Rate this comment: 12345

      kstauff
      02/17/2010
      Posts:129
      Avg Rating:
      4/5
  • Why is France doing so well?...
    Still, the question has not been answered...Why is the French nuclear program doing so well? What do they know that we don't?...

    They get 80% of their power from nuclear sources. And they are the #1 tourist destination in the world, and also one of the biggest food exporters. If there was a radioactive hazard in France, none of these could happen.

    Obviously, "clean nuclear" power is possible. The French have already done it.
    Rate this comment: 12345

    gabrielg01
    02/17/2010
    Posts:485
    Avg Rating:
    3/5
  • French Nuclear Plant Design
    Why are the French Nuclear Plants "trouble-free",
    and how do they differ from US designed plants ?!
    Rate this comment: 12345

    bilbal
    02/18/2010
    Posts:1
  • DOE and power
    The French and other countries, for that matter, are better at the nuclear power game because they don't have a Federal watchdog that learned to manage projects from the people at DoD, no "gold-plated requirement is too much."  Nearly every nuclear power plant built in the US is a custom job.  There is no standardization of design or equipment, hence, no economies of scale.  Fix the problem with the over-zealous watch dogs and then things will change for the better.
    Rate this comment: 12345

    quaheen
    02/18/2010
    Posts:1
    Avg Rating:
    2/5
  • This is step in the right direction
    I applaud the president's support for nuclear energy, compared to dangerous fossil fuel power plants, fatalities from nuclear power plants accidents are negligible, even when including Chernobyl.

    The "waste" problem from current LWR is a political problem.  Reactors such as the Molten Salt Reactor or Liquid Fluoride Thorium Reactor could reduce non fissile elements to 1/1000th the amount whose decay rates are also considerably faster, 300 years to background radiation level.

    This technology isn't new and was thoroughly invested by ORNL up until the 70's.  It's time to dig it up and make it commercially viable in small modular AIR cooled units!

    Andrew
    Rate this comment: 12345

    andrewjmcd
    02/20/2010
    Posts:1
  • It is about Time
    As someone who watched the industry begin to grow in the 60's (my father was one of those engineers in the white suits that loaded fuel rods), and then fall prey to politics and overzealous oversight - the required safety manuals and procedures took up many times the bookshelf space of the actual design and operating procedures.  Many of those objecting to nuclear power did not have the slightest idea of how it worked.  Breeder reactors used to re-process spent fuel into new fuel rods (which would minimize the amount of actual radioactive waste by an order of magnitude) were never built in this country largely due to public fears that terrorists might be able to hijack a shipment of enriched fuel.  To my knowledge, there has never been such an event in the history of nuclear power, even though we ship nuclear fuel acrossd oceans by ship. If we can't protect a shipment within our own borders - we can't protect our families at home in bed each night.  As stated before, all "incidents" within the U.S. have been traced to human error - yes, even three mile island would have never happened if the operators had just pushed away from the consoles andlet the computers shut the reactor down in an orderly manner.

    We have no choice but to back nuclear power, and now.  The left can't have it both ways.  If we really do have global warmimg upon us, then nuclear power is the only feasible answer to a "clean" source of power that can keep up with our insatiable needs.  Wishing for solar and other types of renewable power doesn't make it so!  We have a very real problem now - so how about a dose of reality - and at least opening up a non-emotional dialogue, with verifiable and repeatable data, that will lead to a compromise and keep the electricity that makes civililzation possible flowing.  Just imagine the consequences of shutting off all of the electricity in this country - really follow it through.  We are talking of nothing less than the end of civilization as we know it.
    Rate this comment: 12345

    Packman17
    02/22/2010
    Posts:4
    Avg Rating:
    3/5

Log In

Advertisement
Advertisement
MIT Massachusetts Institute of Technology CyberMedia © 2010 Technology Review. All Rights Reserved.