DOE Awards NuScale Second Small Reactor Grant

Let’s see what’s behind the headline, via the AP:

The U.S. Department of Energy said Thursday that it has awarded an Oregon company a grant to help it design and obtain federal approval for a kind of nuclear power plant - small modular units that can be built in a factory and shipped to installation sites.

That Oregon company is NuScale, a startup company with strong ties to Oregon State University The first DOE award went to the mPower small modular reactor design being developed by long-established Babcock & Wilcox, a company that has been building small reactors for the U.S. Navy for decades. NuScale’s technology approach is unique and allows capacity additions in 45 megawatt increments. In addition, its safety features directly address the lessons learned from the Fukushima Daiichi accident. It’s a pressurized water reactor – as is mPower – with a lot of new ideas regarding safety.

[NuScale offers] a smaller, scalable version of pressurized water reactor technology with natural safety features which enable it to safely shut down and self-cool, with no operator action, no AC or DC power, and no external water. Each NuScale Power Module is 45 MW and has a fully integrated, factory-built containment and reactor pressure vessel.

NuScale lists its attributes:

• The ability to safely shut down and self-cool, indefinitely, with no operator action, AC or DC power, and no additional water, with NuScale's Triple Crown for nuclear plant safety™ .
• Seven barriers, between the nuclear fuel and the local community and environment, as compared to three for commercial plants currently in construction and operation.
• A complete containment and reactor vessel module that can be shipped in segments, by rail, truck, or barge, for quick installation at the plant site.
• Below grade operating bays for the NuScale Power Modules that are enclosed in an aircraft-impact-resistant seismic Category 1 reactor building.
• Natural circulation, coolant flow residual heat removal and emergency core cooling systems are powered by natural forces, gravity.
• A common pool that provides seismic dampening and radiation shielding for the NuScale Power Module.
• A 60-year plant life
• A projected capacity factor of >95%

Much of this describes the potential benefits of small reactors in general. But some of it, especially its approach to safety, leverages a patent portfolio NuScale has been building. I asked Paul Genoa, NEI’s senior director for policy development, about this:
“Just to be clear,” Genoa said, “all U.S. nuclear facilities exceed the stringent safety regulations of the Nuclear Regulatory Commission. However, just like the new Westinghouse AP-1000 plants under construction in Georgia and South Carolina, these new small reactor designs being supported by DOE are increasingly using innovative and elegant approaches to ensuring that safety.”
So there you go.
NEI offers a very good description of the implications of the DOE award:

DOE’s selection criteria focused on reactor technologies that have unique and innovative safety features to mitigate the consequences of severe natural events similar to those at Japan’s Fukushima Daiichi. NuScale’s press statement noted that its design’s “unique and proprietary break-through technology” using natural forces of gravity, convection and conduction will allow “safe and simpler operations and safe shutdown.”

And why this is different from the B&W award:

By contrast, DOE’s first solicitation focused on small reactor designs similar to certified large reactors that had the potential to be brought quickly to design certification and licensing. Late last year DOE selected a team consisting of Babcock & Wilcox, Bechtel International and Tennessee Valley Authority to deploy B&W’s 180-megawatt mPower small reactor design by 2022.

You’ll notice the team aspect of the mPower project. That’s true of NuScale, too: it is working with Rolls-Royce (yes, the car people, but they also produce small reactors for the British Navy-see the link), Fluor and Energy Northwest.
More from the AP, with some key dates moving forward:

The company hopes to have the design certified by 2019 and the first commercially operational project working by 2023 at the Idaho National Laboratory in Idaho Falls, Idaho, [NuScale Chief Commercial Officer Michael] McGough said.

This is spectacular news. We’ve been hearing about small reactors for years. Now, here they are.

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Ernest Moniz Tapped for Energy Secretary

If you want a sense of what Ernest Moniz, the MIT physicist who is President Barack Obama’s pick for energy secretary, thinks about nuclear energy, read some of his writing. There’s a lot of it, and he’s pretty direct:

It would be a mistake, however, to let Fukushima cause governments to abandon nuclear power and its benefits. Electricity generation emits more carbon dioxide in the United States than does transportation or industry, and nuclear power is the largest source of carbon-free electricity in the country. Nuclear power generation is also relatively cheap, costing less than two cents per kilowatt-hour for operations, maintenance, and fuel. Even after the Fukushima disaster, China, which accounts for about 40 percent of current nuclear power plant construction, and India, Russia, and South Korea, which together account for another 40 percent, shows no signs of backing away from their pushes for nuclear power.

This is from November 2, 2011. A little more:

Nuclear power's track record of providing clean and reliable electricity compares favorably with other energy sources. Low natural gas prices, mostly the result of newly accessible shale gas, have brightened the prospects that efficient gas-burning power plants could cut emissions of carbon dioxide and other pollutants relatively quickly by displacing old, inefficient coal plants, but the historical volatility of natural gas prices has made utility companies wary of putting all their eggs in that basket. Besides, in the long run, burning natural gas would still release too much carbon dioxide.

Moniz is Director of the Energy Initiative and Professor of Physics and Engineering Systems at MIT. He served as Undersecretary at the Department of Energy in 1997–2001.

NEI’s take is here, from President and CEO Marvin Fertel:

“In nominating Ernie Moniz to be Secretary of Energy, President Obama has sent America a strong message that its energy leadership will be entrusted to an advocate of clean energy supplies, including nuclear energy. Dr. Moniz is experienced and well respected in the energy, nonproliferation and national security communities worldwide.  He has made it clear that he recognizes nuclear energy’s important role in reducing greenhouse gases as part of a balanced, low-carbon electricity generation portfolio.

Like NRC Chairman Allison Macfarlane, Moniz was a member of the administration’s Blue Ribbon Commission on America’s Nuclear Future, which recommended a new strategy for managing used nuclear fuel.

I’m sure we’ll learn plenty more in the coming days.

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NEI Statement in Response to Resignation of Energy Secretary Steven Chu

The following statement can be attributed to NEI President and CEO Marv Fertel:

“The nuclear energy industry extends our thanks to Secretary Chu for his service to the nation and our best wishes to him and his family in his future endeavors.

“The industry greatly appreciates Secretary Chu’s strong belief in the expansion of nuclear energy as a vital clean-energy technology for our nation. His leadership with regard to the construction of new nuclear energy facilities was important symbolically and substantively. This applies to the larger reactors that already are part of the backbone of our nation’s electricity grid, as well as innovative small reactor designs that offer great promise as a complementary technology.

“The energy, environmental and economic challenges confronting our nation make it imperative that Secretary Chu’s successor continue to recognize nuclear energy as a vital part of our energy and environmental policy. As a reliable provider of affordable, low-carbon electricity, nuclear energy is important both for the electricity itself and the many ancillary benefits: job creation, grid stability and energy security chief among them.

“Any future secretary must and should recognize that the agency has legal and contractual obligations to fulfill with regard to nuclear waste management. This includes continuing and completing the licensing review of the planned repository for used nuclear fuel and high-level waste from U.S. defense programs at Yucca Mountain, Nevada. Our next Secretary of Energy should recognize that his or her job will be made easier by moving aggressively to implement many of the sound recommendations made last year by the Blue Ribbon Commission on America’s Nuclear Future, notably development of one or more consolidated storage facilities for used nuclear fuel at volunteer sites, assured access to the Nuclear Waste Fund, and a new, congressionally chartered federal corporation dedicated solely to implementing the waste management program and empowered with the authority and resources to succeed.”

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DOE Secretary Steven Chu to Resign

Politico has the story:

Energy Secretary Steven Chu is stepping down, ending a four-year tenure marked by milestones in green-energy spending along with withering attacks from Republicans and the collapse of the solar company Solyndra.

Chu announced Friday that he intends to resign once a successor is confirmed, according to a memo sent to Energy Department staff and obtained by POLITICO. He was the last of President Barack Obama’s long-serving Cabinet members to announce plans to leave or stay for the second term.

Read the rest at the link. We’ll certainly have more about this later. For the moment, a tidbit: Chu will be the longest serving energy secretary since the founding of the department.

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How U.S. Nuclear Energy Export Regulations Are Hindering American Business and Costing Jobs

Construction at the Sanmen Nuclear Power Station in China.

Earlier this week, the law firm of Pillsbury Winthrop Shaw LLP issued a report concerning the legal and regulatory obstacles that stand in the way of U.S. companies fully capitalizing on the international growth of the nuclear energy industry.

From the NEI press release:

To the detriment of U.S. national security interests and the economy, U.S. energy companies and manufacturers face impediments in capitalizing on the enormous market opportunities presented by the global growth of nuclear energy, business and industry leaders said today in unveiling a new report on nuclear export challenges.

The report comparing nuclear energy trade regimes in five leading supplier nations concludes that “the U.S. export control regime places (U.S. companies) at a serious disadvantage next to their competitors in the international export market.”

Following the release of the report, representatives from Pillsbury, NEI, Exelon Generation and the National Association of Manufacturers held a press conference to discuss the findings of the report in more detail (click here for the presentation slides). In the wake of the press conference, here's what BloombergBusiness Week had to report:

Regulations unchanged since the end of the Cold War impede U.S. companies in gaining export licenses, putting suppliers at a global disadvantage, according to a report released today by the Nuclear Energy Institute, a Washington-based group whose members include Exelon Corp. (EXC) and Southern Co. (SO)

U.S. rules are “more complex, restrictive and time- consuming to fulfill” than in France, Japan, Russia and South Korea, where competing suppliers are based, according to the report. The global market may be worth a quarter of a trillion dollars within a decade.

Given that we're in the midst of a Presidential election where job creation is the most pressing concern, these aren't exactly idle questions. Here's some coverage from E2 Wire at The Hill:

Specifically, the Nuclear Energy Institute (NEI) says DOE should change a rule, known as Part 810, to enhance exports to a list of restricted nations for products — such as consulting services and software — that it says do not pose a nuclear proliferation threat.

The rule change would allow U.S. commercial nuclear firms to discuss operations with foreign partners more freely, according to NEI.

The group said the rule change would remove a competitive disadvantage for U.S. firms in the global market.

Currently, the rule requires U.S. companies to obtain advance authorization to speak about nuclear plans with a list of restricted countries, out of concern for nuclear proliferation. On average in 2011, that clearance took a little less than one year, according to a NEI-commissioned report discussed Monday.

DOE issued a proposed update to the rule in September 2011, but that significantly increased the amount of technology subjected to agency authorization. The nuclear industry criticized the rule, and DOE decided to revise it once again — a process that is still ongoing.

So how much is at stake for American business? Here's Platts:

The US Department of Commerce estimates the world market for nuclear power technology, fuel and related services and equipment at "upwards of" $750 billion over the next 10 years, Richard Myers, vice president for policy development, planning and supplier programs at NEI, said at a press conference Monday in Washington to release a report the US nuclear power industry commissioned on the topic.

"It is a myth that the US nuclear supply chain has disappeared," Myers said. Most manufacturing of large "heavy metal" components for nuclear power plants, such as reactor vessels, is now done in Asia, but many US firms manufacture "precision components" for the nuclear industry and would stand to benefit from increased ability to compete with other countries, Myers said.

For additional coverage see Fuel Fix, Energy Biz, Nuclear Engineering International and NAM Shopfloor.

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Mo. Governor, State Leaders Signal Continued Support For Potential Small Reactor Project

Vying for federal funds to support a potential small reactor demonstration project in the state, Missouri Gov. Jay Nixon (D) joined more than 20 business leaders, utility executives and state politicians Monday to reinforce his support for the project. Speaking from the University of Missouri campus, Gov. Nixon said that the potential project by Westinghouse Electric Co. and Ameren Missouri could “spark a new global industry” and be “transformational” for the Show-Me State.

PoliticMo has the highlights from the press conference:

“The returns of this industry are potentially tremendous,” Nixon said, noting impact on the construction, restaurant, and transportation infrastructure in the state. “When it comes to creating jobs, transforming our economy and building our future, projects just don’t get any bigger than this.”

Nixon said public sector funds — including over $450 million available from the federal government — will help get the emerging industry off the ground, and he said the stakeholders involved want that to happen in Missouri.

“This energy industry is going to emerge,” Nixon said. “The question is who is going to lead.”

To solidify his support, Gov. Nixon has created a new task force that will be charged with aligning the involved communities and ensuring that the infrastructure and other needs are in place if the time comes that they are required. The task force will be headed by Dan Atwill, Boone County’s presiding commissioner, and comprised of five other commissioners who represent the impacted counties.

Many state lawmakers, business leaders, labor unions and chambers of commerce have already expressed an interest in the project coming to the state. The Columbia Daily Tribune reports:

More than 500 letters supporting Missouri’s proposal have been submitted to the DOE [Department of Energy], not only from those directly affected but also from Missouri business and development leaders who see the potential, Nixon said. All of Missouri’s other electric power providers have expressed support as well.

Developing the project will stimulate the state’s economy by creating a large number of jobs, said Ameren Missouri’s President and Chief Executive Warner Baxter. He said that just one small reactor could provide more than 9,500 direct jobs and more than 9,000 indirect jobs, having a $3 million economic impact for the state.

“We’re bringing together national economic leaders, industry leaders, certainly business leaders are here, statewide legislators, as well as labor to come together to discuss a transformational opportunity to secure our state’s and our country’s energy and economic future,” he [Baxter] told the summit.

The state, which would add up to five small reactors at Ameren’s Callaway nuclear energy facility as part of its proposal, is among four finalists that are looking to receive a share of DOE’s $452 million for the public-private program to design, build and operate the next generation nuclear reactor. Other states where companies have expressed an interest in developing a small reactor as part of the cost-share program include South Carolina, Washington and Tennessee.

DOE is expected to announce the grant recipients by September.

For more information on small reactors, see NEI’s website.

Photo caption: Gov. Jay Nixon discusses efforts to develop next-generation small modular nuclear reactors in Missouri on Monday at the Bond Life Sciences Center on the University of Missouri campus. Credits: Don Shrubshell/Columbia Daily Tribune.

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What Gets Done with $47 Million – DOE’s Educational Grants

Here comes tomorrow:

Secretary of Energy Steven Chu announced, The Department of Energy will be giving more than $47 million in scholarships, fellowships, research grants and university research reactor upgrades to train and educate the next generation of leaders in America's nuclear industry.

There are 143 of these awards. What’s interesting is that there are potentially 143 stories for reporters to track down. What will the money be used for? This story comes from Washington state, so:

Washington State University in Pullman received a little under $2 million in funds.  Ken Nash,  a radioactive chemistry professor says he'll use the money for a project to help them find a better way to deal with nuclear waste that comes from a power plant.

Illinois:

At Northwestern University, researchers will receive $1.6 million for two research projects on advanced nuclear fuel and fuel cycle technologies. Researchers will evaluate the effectiveness of chalcogenide-based materials and design novel metal sulfides to effectively capture and store radioisotopes released during reprocessing of used nuclear fuel as well as provide tools that will help predict the reliability and safety of concrete structures in dry cask storage systems.

Utah:

At the Utah State University, researchers will receive $690,000 to conduct experiments that generate data on natural convection through a fuel assembly. The data will be used to validate the computational models being developed for nuclear safety and design.

Michigan:

Part of the money for the Ann Arbor school will go to a research project aimed at developing new and advanced reactor designs and technologies.

Well, okay, some are more specific than others. But most put the lie to the idea that nuclear energy is anywhere near the end of its innovative life. As long as budding scientists can figure out new things to do with chalcogenide-based materials, nuclear energy technology will continue to advance.

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Resurgence in American Nuclear Industry To Start in Ga., Says Energy Chief

In case you missed the tweets from @SouthernCompany or @EnergyPressSec yesterday, Energy Secretary Steven Chu  toured the site where two new reactors are being built at Plant Vogtle in Waynesboro, Ga. Reconfirming his commitment to nuclear energy, the Nobel Laureate spoke to the more than 500 workers already on site on the need to build new nuclear plants to create jobs for American workers and boost U.S. competitiveness.

“In his State of the Union address, President Obama outlined a blueprint for an American economy that is built to last and develops every available source of American energy,” said Secretary Chu. “Nuclear power is an important part of that blueprint. The work being done in Georgia and at research organizations like Oak Ridge National Laboratory is helping restore American leadership in the global race for the nuclear energy jobs of tomorrow.”

Just how many new jobs is Secretary Chu talking about? Business Week says:

About 1,700 workers are already on the job site and plant managers say that number will grow to nearly 5,000 at the peak of construction. Once the completed units go online, they will employ about 800 permanent workers.

Those numbers only capture the direct jobs from the project, but indirectly, Business Week explains that constructing the two new reactors means a lot more people coming to the area, consuming more goods and services at local businesses. Take, for example, Allen DeLaigle:

"Plant Vogtle has pretty well saved Burke County," said Allen DeLaigle, who owns and manages an RV park with his twin brother about 4 miles from the nuclear plant.

Since site preparation ramped up for the new units, DeLaigle's park has filled about 90 of its 151 spaces with RVs and campers owned by workers coming in from other states such as Alabama and Mississippi, West Virginia and Ohio.

Or Robin Baxley:

Robin Baxley, owner of a Waynesboro office supply store, added two new employees to keep up with deliveries of pens, paper, marker boards and thumb drives to the modular offices set up on the construction site. Her business also supplied the cubicles, desks and file cabinets for many of those temporary offices

"They helped us make it through the economic downturn," Baxley said. "Office furniture is not the first thing people buy when they can hardly make payroll."

The project also will create approximately 35,000 jobs for suppliers and manufacturers, which is why groups like the National Association of Manufacturers wholeheartedly support the project:

Manufacturers use one-third of the energy consumed in the Unites States, so building new reliable sources of energy is essential to our competitiveness. Building new nuclear power plants also means the creation of quality jobs for Americans at a time when we need them the most. The Vogtle plant alone will create 5,000 new jobs and will have a tremendous positive impact for the many jobs in the nuclear energy supply chain. 

The amount of jobs this project is creating has not gone unnoticed by the public. In fact, on the day of the announcement, I took a phone call from a member of the public asking where he could find information online to apply for a job. I also saw comments like this one on Twitter:

If the overall goal is to create new jobs, make America more competitive and invest in an emission-free, domestic energy source, then this is the way to do it, said Secretary Chu on the tour:

“America has the opportunity to lead the world in clean energy technologies and to provide a foundation for our future prosperity. What you are doing here at Vogtle will help us compete in the global clean energy race and provide domestic, clean power to U.S. homes.”

During his visit to the site, Secretary Chu announced a funding opportunity of up to $10 million for research and development toward advanced nuclear reactor and fuel cycle technologies and also announced that the agency will be putting together an internal working group—chaired by Peter Lyons—to recommend a nuclear waste strategy to the secretary by the summer.

Continuing with his busy week, today the secretary testified before the Senate Energy and Natural Resources committee on the agency’s fiscal year 2013 budget request. (See the committee’s archived webcast and Secretary Chu’s testimony for more information.)

Photo: Southern Co.’s Tom Fanning and Energy Secretary Steven Chu on a tour of the Plant Vogtle site. Photo courtesy of Southern Co.

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