The Necessary Good that is Nuclear Power

Just as the power industry appeared to be on the cusp of a nuclear renaissance, events in Japan forced governments, utilities and consumers to pause and re-examine the role of nuclear energy more thoroughly than ever. Nearly half a year after the natural disasters that triggered a series of meltdowns at the Fukushima Daiichi nuclear complex it’s more important than ever to refocus attention on the benefits of nuclear energy as a resource to meet global demands.

When looking at the future of nuclear power it is important to avoid doing so only through the lens of past accidents. While there are important lessons to be learned from such events these do not come close to representing the nuclear industry as a whole.

While most energy industry professionals already know this, the next critical step is to effectively share the full story of nuclear power with consumers and government officials. Failing to do so could mean the loss of one of the most innovative, clean and abundant energy resource available to the world.

The truth is, in its more than 50-year history there have been only three major reactor accidents concerning civil nuclear power - Three Mile Island, Chernobyl and Fukushima. These are the only major accidents to have occurred in over 14,500 cumulative reactor-years of commercial operation. There is not a single other power resource that has the same proven track record of reliability while also boasting the same exceptional level of safety.

Meeting Demand

As of this posting there are 440 commercial nuclear power reactors operating across 30 countries. Collectively these reactors supply approximately 14 percent of the world’s electric generation, according to the World Nuclear Association (WNA).

In addition to commercial nuclear power plants, the WNA outlines there are about 250 research reactors operating in 56 countries, with more under construction. These have many uses including research and the production of medical and industrial isotopes, as well as training.

Nuclear power plants also need significantly less fuel than those generating power through the use of fossil fuels. One ton of uranium can produce more than 40 million kilowatt-hours of electricity, which is equivalent to burning 16,000 tons of coal or 80,000 barrels of oil.

Uranium is also abundant and can even be recycled, making nuclear energy an integral part of ensuring the future of sustainable global energy.

Nuclear power is the only proven resource that can provide utility scale electric generation cleanly, reliably and economically in a time when the supply of energy is continually under pressure, the cost of fossil fuels are increasing, resources are tenuous, and the limitations of renewables are still numerous.

Environmental Advantages

Another important benefit of nuclear power is its low environmental impact. Extensive regulations and stricter standards concerning greenhouse gas emission are being implemented globally, and the fact is nuclear power is the only proven, grid-ready resource for clean, utility-scale power generation currently available.

Even when considering the entire life-cycle of a nuclear power plant, which includes mining for resources, operation and decommission, nuclear power remains extremely competitive.

According to an International Energy Agency analysis, nuclear power’s life-cycle emissions range from 2 to 59 gram-equivalents of carbon dioxide per kilowatt-hour (CO2 per kWh). That puts nuclear power on par with renewable energy resources such as hydropower (2 to 48 grams of CO2 per kWh) and lower than wind (7 to 124 grams of CO2 per kWh) and solar photovoltaic (13 to 731 grams of CO2 per kWh).

Within the US, nuclear power plants also support a broad range of environmental programs, including land and water preservation, wetlands recovery as well as wildlife protection and recycling. This level of environmental stewardship has not only added to the preservation of the environmental integrity of their locations but also in certain situations even served to improve them.

Economic Benefits

Nuclear power also presents tremendous economic benefits. The jobs, taxes, and direct and secondary spending associated with nuclear power plants serve to bolster the economies where they are located and contribute on a broader scale in providing low-cost high volumes of electricity.

The Nuclear Energy Institute (NEI) estimates that private investment in new nuclear power plants has created 14,000 to 15,000 clean energy jobs over the last few years in the US alone. Operation of a nuclear power plant not only generates 400 to 700 permanent jobs, but they are jobs that pay as much as 36 percent more than average salaries in the area they are located

The NEI also outlines that construction of a new nuclear power plant will provide a substantial boost to suppliers of commodities like concrete, steel and manufacturers of hundreds of components. That translates to the creation of 1,400 to 1,800 jobs during construction, with peak employment as high as 2,400 jobs.

Further, studies show that nuclear power is also the lowest-cost producer of baseload electricity. The NEI highlights that costs for the production of nuclear power have remained steady for more than 10 years, averaging 2.14 cents per kilowatt-hour in 2010. This includes the costs of operating and maintaining the plant, purchasing fuel, and paying for the management of used fuel.

Nuclear is Here to Stay

When considering the advantages of nuclear power in meeting increasing energy demands, environmental standards and economic sustainability, there is little room for dismissing the importance of its continued role in the global energy mix.

When also factoring in the massive potential of emerging nuclear technologies such as small modular nuclear reactors, thorium-fueled reactors, and advanced fuel recycling and reprocessing, it becomes clear that to phase out this incredible resource would prove to be a severe global misstep.

Nuclear power is here to stay mainly because it has to. Global energy demand is increasing at a rate that can only be met with the inclusion of nuclear power. Even understanding that, the goal of those in the energy industry should be to ensure that nuclear power also remains a part of our energy future because it is properly understood and supported. Doing so will mean the difference between being dependant on the nations that aggressively embrace and develop nuclear power or being among those that have secured for themselves a reliable, safe, economic and cleanly abundant nuclear foundation.

Are renewables worth it?

It ain’t easy being green. That once gently sung lament of a childhood icon has taken on a whole new meaning for me. Sifting through hundreds of pages of power related content a week for PennEnergy.com; it’s not difficult to recognize that renewable energy is a hot topic. What is rarely publicly addressed is just how expensive and difficult renewables are to currently utilize.

The administrative and public push for lean, green energy is growing stronger every day, but the viability of renewables as a reliable and economically sound resource has not kept up. Don’t get me wrong; I’m sold on implementing renewables. I truly believe they are an invaluable part of revitalizing industry and responsible power production/consumption- when and if they can be executed properly.

Quick, what is the first image that comes to mind when you hear the words renewable energy?

I would wager the picture you most likely summoned is of a towering wind turbine in a vast open area beset by a gorgeously hued expanse of sky. Pretty, right? Pretty expensive, noisy, and erratic many would argue.

It seems most of us are buying more into an image than a real renewable plan. Renewable energy can be fantastic, but as things stand they are still quite cost prohibitive and difficult to implement effectively. I want to see renewables grow. In fact, I’m certain doing so will bolster manufacturing sectors, offer new opportunities to displaced workers and strengthen our economy. Not to mention all of the obvious environmental benefits. Promising stuff, but as of today the cost to produce and distribute power from those sources still woefully outweighs the returns. Those are not just opinions either, they’re facts. Math is quirky that way in its total disregards for people’s opinions.

While renewable power sources have been steadily improving, problems remain with consistency and cost versus output; yet billions of dollars continue to be funneled into large-scale projects utilizing these under developed resources. Seems a little horse before cart in my humble opinion.

As things stand most hydrocarbons still beat out renewable energy resources by at least four to one in cost, implementation and output. So why the rush to implement such massive renewable projects that cannot reasonably offer sound financial or production returns? Especially when these large, fast tracked projects may end up costing us more as significant improvements to existing technologies are made. Even the best of us fall victim to a bit of pomp and circumstance at times.

So is the vigorous pursuit of green energy really worth it? Yes and here is why I think so-

Renewables seem to have reached the awkward teenage stage of their development; full of potential and requiring incredible investments of time and resources with seemingly little initial return. If we stick with it though, make the right choices and focus on developing its strengths we will in fact find ourselves one day looking at a mature well-rounded set of clean resources that will have a tremendous amount to offer the world.

Instead of throwing money at an ideal we should be investing in creating and implementing truly functional energy resources. Research and development are vital. A lot more should be going toward finding out how to get the most out of renewable resources before we dot every open expanse with expansive biomass factories, wind farms and solar panels.

In the meantime there are still jobs to be had, smaller scale opportunities offering sounder returns and the sort of contentment that comes with the knowledge that the good being developed is for the long term and not simply an industry trend to garner funding.

We also need to get a grip on the real role renewables will play in our energy future. I don’t know who keeps pushing the idea that green energy is the white knight that has been charged with slaying the hydrocarbon dragon, but its time to put the fairy tales aside and get back to reality.

As already mentioned Renewables at this stage of the game simply cannot offer what hydrocarbons can. Worse yet the rumors of it being able too have been wildly exaggerated. Energy independence and sustainability is a complicated issue that will require sophisticated and balanced solutions. Most experts actually point toward a strategic energy mix and the development of hybrid technologies as the road to success, not the blind championing of any set of resources over another.

Renewables can be developed into reliable energy providers and hydrocarbons can in fact be utilized responsibly with enough innovation, investment and patient dedication.

See, its cake. Now all we have to do is solve that pesky power infrastructure and distribution issue…

US East Coast joins the LNG liquefaction, export race

Dominion (NYSE:D) has filed an application with the Department of Energy to make its Cover Point LNG import and gasification terminal in Maryland bi-directional, allowing the facility to liquefy shale gas production and export it globally.

Dominion Cove Point LNG

Dominion hopes to build liquefaction units at the existing facility, with a processing capacity of 1 billion cubic feet of LNG a day or 7.82 million metric tons a year.

"Dominion Cove Point has connections to several interstate pipelines and is well-positioned to provide export customers access to abundant and diverse domestic gas supply," said Thomas Farrell II, chairman, president and CEO of Dominion. "The facility is particularly well-situated to export gas production from the prolific Marcellus Shale and promising Utica Shale formations."

The Cove Point LNG facility is well positioned, in comparison to the proposed Gulf Coast LNG projects, to receive natural gas production from the Marcellus Shale in Pennsylvania and emerging Utica Shale in Ohio. Additionally, Dominion can use existing pipeline to move the natural gas.

Increasing production from vast shale resources has created a natural gas glut in the United States, and various downstream companies are looking to create an international market for US natural gas by turning it into LNG and exporting it by tanker.

Canada also has a number of LNG projects ongoing to export its shale resources.

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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.

North American shale may soon find an international market via LNG

Until Liquefied Natural Gas (LNG) technology was developed, natural gas production was regional because the hydrocarbon had to be transported via pipeline. While European and Asian markets realize a growing demand for natural gas, the North American natural gas market has been glutted by ever-increasing production from various emerging shale plays.

In fact, increasing production in the Marcellus Shale, Barnett Shale, Haynesville Shale, Horn River Shale, Fayetteville Shale and others has forced some producers to pull back on drilling campaigns and even shut-in production. By not producing all of the unconventional natural gas in these formations, producers can limit production and affect the supply-demand curve.

While natural gas prices have substantially dropped since their highs in 2008, prices have remained somewhat steady above the $4 mark on the Henry Hub for some time now.

In an effort to connect this production with eager markets abroad, nine LNG import facilities on the US Gulf Coast have submitted applications with authorities to convert or add LNG liquefaction and export capabilities.


Sabine Pass LNG

Most recently, British producer BG Group has formed a joint venture with Southern Union and applied for federal approval to convert its Lake Charles, Louisiana LNG import facility into an LNG liquefaction and export facility.

At its Sabine Pass LNG project, Cheniere Energy (NYSE:LNG) is working to add liquefaction and export capabilities to its facility, as well, lining up LNG buyers in Asia and Europe, as well as South America.

Furthermore, Freeport LNG located near Houston, Texas, has received permits to re-export LNG shipments that are currently being held in storage due to lack of demand.

Additionally, Apache Corp. (NYSE:APA), EOG Resources (NYSE:EOG) and Encana Corporation (TSX:ECA) (NYSE: ECA) are working to build a pipeline to connect Horn River Shale natural gas in Canada to a proposed Kitimat LNG export facility on the Western Canadian coast.

As companies work out the commerciality to transform North America into an LNG supplier, producers in the US and Canada are eagerly awaiting the development of a new market for their natural gas production.

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Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.

East Africa emerging as new hydrocarbon province

West Africa has long held the spotlight as a major oil province, but other areas of the continent are proving just as exciting. Beyond Tullow's success in Uganda, the waters offshore East Africa are attracting attention from various international players.

With successes in Mozambique and potential growing in Tanzania, Kenya and Madagascar, East Africa is emerging as a new hydrocarbon province.

Mozambique

US independent Anadarko Petroleum (NYSE:APC) has seen numerous successes in its Offshore Area 1 in the Rovuma Basin of Mozambique. With successes at Windjammer, Lagosta and Camarao, the natural gas reservoir is now believed to contain some 10 trillion cubic feet of natural gas.

Anadarko has already contracted a consortium between Technip and KBR to conduct the pre-FEED on the development of an LNG liquefaction and export facility in Mozambique.

Tanzania

Despite the recent negative press generated by a Somali pirate attack on a drillship there, Tanzania is also gaining spotlight with Brazilian major Petrobras (NYSE:PBR) and super-major Shell (NYSE:RDS-A) (NYSE:RDS-B) joining forces on two blocks in the deepwaters there.

Drilling is ongoing on the Zeta-1 exploration well on Block 5, and seismic is being acquired to identify future prospects.

BG Group and Ophir Energy have drilled numerous successful wells on Block 1 offshore Tanzania, with Pweza-1, Chewa-1 and Chaza-1 all hitting natural gas.

Kenya

Other countries in East Africa have majors clamoring for acreage, as well. Offshore Kenya, French major Total (NYSE:TOT) has gained interest in five oil and gas blocks in the Lamu Basin.

“This transaction is part of a bold exploration strategy that consists in acquiring large stakes in high-potential frontier plays,” said Marc Blaizot, Total’s senior vice president, Exploration. “Recent discoveries in offshore Mozambique and Tanzania offer a very promising outlook for these Kenyan permits.”

BG Group, Cove Energy and Dominion are also active in Kenya.

Madagascar

Although political issues have clouded some prospects lately in the island nation of Madagascar, certainly the successes in East Africa have upped the ante for this country.

With interest in five onshore blocks, Madagascar Oil (AIM: MOIL) has been diligently trying to develop the Tsimiroro heavy oil field on onshore Block 3104 there, but offshore exploration has not yet started.

Australia's ROC Oil recently divested its interest in the Juan de Nova Maritime Profond Block, which is offshore Juan de Nova, a tiny island possessed by France sandwiched between Madagascar and Mozambique.

Phaedra Friend Troy is the content director for PennEnergy.com, an all-energy website that provides oil and gas, power and infrastructure news, analysis, reports and more. Sign up for a free daily enewsletter today.