Industry executives presented the business case for new nuclear reactors at a July 31 seminar at the Center for Strategic and International Studies in Washington, D.C. The seminar is part of a series examining the role of nuclear energy in meeting urgent energy needs and greenhouse gas reductions.

The seminar presented analyses of the evolving economics and financing for new nuclear power plants, and also highlighted the contributions that will be required by the industry’s work force and nuclear infrastructure suppliers to support the expansion of nuclear energy.

Richard Myers, Nuclear Energy Institute vice president of policy development, pointed out that compared with the oil industry, most electric utilities are relatively small. Only two have a total market value of more than $50 billion; most are less than $30 billion.
Electric utilities would therefore benefit from federal guarantees on financial loans for new plant construction. New nuclear power projects are estimated to cost between $6 billion and $8 billion.

Most presenters were in agreement that congressional efforts to mitigate greenhouse gas emissions would benefit the nuclear power sector. One panelist said the timing of solutions for used fuel management should not inhibit the expansion of nuclear energy. “We have 50 to 150 years to solve the high-level waste problem,” he said. “In contrast, we cannot wait 25 years to address climate change.”

Carol Berrigan, NEI senior director for industry infrastructure, chaired a panel that outlined the industry’s work force and infrastructure opportunities. A major conclusion was that competition for highly skilled, nuclear-certified labor and equipment suppliers is a global challenge that commands attention at the highest levels of government.

Japan Steel Works is the world’s largest supplier of “ultra large” forged nuclear reactor components, and has a years-long backlog of orders. General Manager Yoshitaka Sato said his company is undergoing a $500 million expansion and will be able to provide large steel forgings for at least eight new nuclear reactors per year by 2010, up from the current capacity of 5.5 reactors per year.

Given the market conditions—including the volatility of natural gas and coal prices, the U.S. Nuclear Regulatory Commission’s streamlined licensing process, and government financial incentives—panel members agreed that new nuclear power plants can be competitive with other sources of electricity.

Presentations from this interesting series of seminars are available at www.csis.org/energy/.

—Nuclear Energy Insight, August/September 2008