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NNWE Executive Brief (30 September 2016)
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NNWE Executive Brief

Welcome to our new bi-weekly Executive Brief aimed at distilling the most important market, regulatory and technological updates and delivering it straight into your inbox.

"With an ever-changing policy landscape, and in-light of the geo-political shift that will occur as Brexit becomes a reality, the need for an informative snapshot of the nuclear power industry across Europe is more important than ever. It is with this in mind that NNWE has created this bi-weekly Executive Brief, which aims to keep stakeholders abreast of the key developments as they occur. I hope it is helpful, and I look forward to working with you in showcasing new nuclear energy and the essential role it has to play in the future, low carbon energy mix of Europe."

Tim Yeo, Chairman, New Nuclear Watch Europe (NNWE)

5 Things to Know

  • UK Government signs the Hinkley Point C contract following confirmation of the project last week. 
  • Areva has begun the process of separating its nuclear fuel cycle activities into a new entity called 'NewCo'.
  • The ONR have released their GDA Quarterly Report stating that both the Westinghouse AP1000 and Hitachi-GE's UK ABWR are projected to be approved in March and December of 2017 respectively. 
  • Kepco are in discussion with NuGen about investing in the Moorside new build in Cumbria, UK
  • Bloomberg New Energy Finance released their New Energy Outlook 2016 report which predicted that total installed capacity for nuclear would fall by 1% by 2040 [Figure 1 below].

    

Quotes of the week...

 
"We know and trust our Chinese partners" -- Vincent de Rivaz, Chief Executive, EDF
 
"China, I have no doubt, is interested not just to finance the story, but to construct significant parts of equipment on the territory of China and supply it to the United Kingdom" -- Kirill Komarov, First Deputy CEO, Rosatom

"60 countries (47.7% of worldwide emissions) have now ratified the Paris Agreement" -- Miguel Arias Cañete, Vice-President, European Commission

Market Update

 
Market as of 30 September 2016

News: EDFs credit rating was downgraded by S&P following the decision to proceed with the Hinkley Point C development in the UK. 

Uranium Price: $23.75 (-1.00*) lb | €21.10 (-0.89*) lb
 
“Some producers and other sellers need to move material for cash flow purposes, and thus, we have seen some pretty aggressive selling in the past few weeks. These market conditions are unlikely to change in the near future.” -- Jonathan Hinze, Executive Vice-President, Ux Consulting
 
Figure 2: 12-month price of uranium
*Changes from previous NNWE Executive Brief
Market as of: 30 September 2016. Courtesy of Ux Consulting Company
 
News: Berkeley Energia & Interalloys have reached an agreement of upwards of £1m for a 5 year contract on uranium from the new Salamanca mine in Spain, at an average price of $41 per-lb.

New Nuclear Project Tracker


EPR (EDF) Gen III+
Prospective developments: 0

News: The documents for HPC were released by BEIS on 29 September following the signing of the contracts for the project. 
 
AP1000 (Westinghouse-Toshiba) Gen III+
Future development: 6 (China), 4 (US), 6 (India)
 
News: The AP1000 is expected to be GDA approved for use in the UK in March 2017.
 
ATMEA1 (Areva-Mitsubishi) Gen III+
Prospective developments: none
 
News: The Sinop nuclear development is waiting the results of its environmental impact assessment before final confirmation by the Turkish government.
 
ABWR (GE Hitachi-Toshiba) Gen III
Prospective developments: 4 (Japan), 2 (UK)
 
News: Horizon Nuclear Power has launched their final consultation in to the development of their ABWR reactor at Wylfa in Wales. The consultation will continue until October 25. UK GDA is expected by December 2017.
 
APR1400 (Kepco) Gen III
Prospective developments: 4 APR+ (Gen III+) in South Korea
 
News: Shin Kori 4 is undergoing a re-cabling of some of its systems and is due to come online in January 2017.
 

VVER-1000 (Rosatom) Gen III, VVER-1200 (Rosatom) Gen III+
Prospective developments: 14 (Russia), 2 (China), 12 (India), 1 (Finland), 3 (Turkey), 2 (Hungary)
 
News: Russia connected its first VVER-1200 (Novovoronezh II 1) to the grid on the 5th August. Commercial operations are scheduled for 2017.
NewsUnit 2 of the Kudankulam nuclear power plant has been connected to the electricity grid, becoming India's 22nd operating power reactor.
News: Hungary's plans for additional two reactors at Paks is on schedule with the European Commission decision expected before the end of September.
 
Hualong1 (CGN) Gen III+
Prospective developments: 1 (UK), 6 (China)
 
News: CGN are looking to propose their plans for the Hualong 1 development at Bradwell in the UK for GDA approval before the end of the year. 

 
PHWR (NPCIL) Gen III
Prospective developments: none
 
News:
 Kakrapar Unit 3 is due to come online at the end of 2016 but may be delayed as final checks are concluded.

Global Decarbonisation

The Paris Climate Agreement moved one step closer to being ratified as a raft of countries signed the accord this week.


For the Paris Agreement, 162 national pledges (INDCs) were submitted - only 11 mentioned nuclear power in their plans with only 6 stating that they would expand: Belarus, China, India, Japan, Turkey and UAE.


The IEA have indicated that 30% of future energy consumption must come from renewables and nuclear in order to control global air pollution.


The UK maintained its commitment to the 5th Carbon Budget as part of the Climate Change Act, ensuring it sticks to its decarbonisation road-map post-Brexit.

Industry News

Areva says awarded 5bn EUR worth of Hinkley Point C contracts.


Turkey and China formally announced their MoU, paving the way for the construction of Turkey's long proposed 3rd reactor at Igneada.


Rosatom plans to finish a feasibility study into new nuclear in Jordan in the first half of 2017 ahead of a 10bn EUR investment in new nuclear. It has also begun preliminary site preparation for a plant in Dabaa, Egypt. 


Unit 4 of the Beloyarsk nuclear power plant started operating at 100% power for the first time on 17 August 2016. It is due to enter commercial operation before the end of the year. 


Horizon Nuclear Power, the Japan Atomic Power Company (JAPC) and Hitachi have signed a technical services contract to support: construction costing, licensing, and planning for the proposed Wylfa Newydd plant in Wales.


Bulgarian state energy company firm NEK is looking to sell a Rosatom nuclear reactor after an arbitration court ruled that it must pay more than 550m EUR in compensation after it cancelled the Belene project in 2012. Selling the technology is the only way to recoup potential losses.

New Reports


- ECIU: Can the UK solve its energy trilemma without Hinkley Point C?

- Welsh Affairs CommitteeThe future of nuclear power in Wales

- IEA
: World Energy Outlook Special Report 2016: Energy and Air Pollution

- BNEFNew Energy Outlook 2016 

- WNISRThe World Nuclear Industry Status Report 2016

- ONRAssessing new nuclear reactor designs GDA Quarterly Report (Feb. 2016 - April 2016)

NNWE in the news

Politico
Bloomberg

Infrastructure Intelligence
Sunday Telegraph
BusinessGreen
China Daily

Politics

The UK will take a golden share in all new major infrastructure projects funded by foreign investment - including new build nuclear plants


China and the US have ratified the Paris Agreement at the G20 meeting on the 4/5 Sept.


Ukraine and South Korea have signed a MoU which will help deliver Ukraine's "Energy Bridge" which aims to transfer electricity from the Khmelnitsky plant (Unit 2) to the EU.

Nuclear Regulation

The European Court of Auditors have priced the decommissioning of Soviet era nuclear plants in Bulgaria, Lithuania and Slovakia at 5.7bn EUR.


The IAEA have released their IRRS of the Swedish Regulation framework, indicating that the system is solid and continues to show good progress on nuclear safety.


Toshiba has withdrawn its application to the US NRC to renew the design certification for its ABWR, saying it does not expect any new opportunities to build the reactor in the USA.


The cost of cleaning up the UK's historic nuclear sites has decreased from last year's estimate, the NDA said it would now cost £117bn spread across the next 120 years, compared to last year's estimate of £118 billion.

Innovation (Gen IV)

Japan scraps prototype fast-reactor to concentrate on Gen IV following its low operational performance over the last 20 years. 


Rolls Royce are looking to invest upwards of £40m in UK SMR programme and highlights £100bn potential to the UK economy. 


Horizon Nuclear Power, the Japan Atomic Power Company (JAPC) and Hitachi have signed a technical services contract to support: construction costing, licensing, and planning for the proposed Wylfa Newydd plant in Wales.


UK Government will release a Gen IV road-map in the Autumn to outline opportunities/skills & timeline for SMR development.

NNWE Blogs

Following Hinkley, the UK nuclear industry is now at a turning point
Theresa May has nothing to fear from foreign investment in nuclear
Government uncertainty still a threat to new nuclear

NNWE Reaction to Government Delay on Hinkley
Reducing carbon emissions should underpin the new Governments energy policy
About New Nuclear Watch Europe (NNWE)



Chaired by Tim Yeo (Former MP and Chair of the Energy and Climate Change Select Committee) we campaign to ensure nuclear power is recognised as a desirable way for EU governments to meet their long-term security needs. 

For more information please visit our website at: www.newnuclearwatch.eu 
Copyright © 2016 New Nuclear Watch Europe, All rights reserved.