Carbon-Free Nuclear Energy Must Play Strong Role to Achieve U.S. Climate Goals, NEI Says

Marv Fertel

Following is a statement regarding President Obama’s plan to address climate change and control carbon emissions by the Nuclear Energy Institute’s president and chief executive officer, Marvin Fertel:

“The strength of America’s electric system is diversity of technologies and fuel types. When it comes to reducing the U.S. electric sector’s greenhouse gas emissions, efforts can succeed only if carbon-free nuclear energy plays a larger role in the nation’s electricity mix. That’s not simply the opinion of our industry. It is the determination made by several independent organizations that analyzed the leading climate change bills pending in Congress some five years ago when prospects for enacting legislative measures to curb greenhouse gas emissions appeared to have momentum. These include the Environmental Protection Agency and the Energy Information Administration, which found that between 69 and 187 new nuclear energy facilities would be needed to meet the bills’ carbon reduction objectives in the electricity sector.

“There is no debating this fact: Nuclear energy produces nearly two-thirds of America’s carbon-free electricity. As a nation, we cannot reach our energy and climate goals without the reliable, carbon-free electricity that nuclear power plants generate to power our homes, businesses and infrastructure.

“President Obama recognized this during the presidential campaign when he said, ‘It is unlikely we can meet our aggressive climate goals if we eliminate nuclear power as an option.’ Likewise, Energy Secretary Ernest Moniz supports the expansion of nuclear energy to meet national energy and environmental imperatives.

“Nuclear energy must continue to be a major part of the nation’s energy portfolio if we wish to effectively reduce carbon emissions to protect the environment, and to expand our supply of reliable, affordable electricity. We look forward to working with the administration to help achieve these extremely important goals.”

For more on the President's speech, please follow our Twitter feed.

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Nuclear Energy’s Storied History and Bright Future

Marv Fertel

The following is a guest post from NEI’s President and CEO, Marv Fertel.

This year is the 60th anniversary of President Eisenhower’s famous “Atoms for Peace” speech at the United Nations. It also is the 60th anniversary of the Nuclear Energy Institute (NEI) which began its existence on April 10, 1953 as the Atomic Industrial Forum (AIF).

Through its 26 founding members, AIF became the organization that launched the U.S. nuclear industry as it worked to bring the commercial uses of nuclear energy and nuclear materials to benefit America and the rest of the world. We can thank the visionary leaders over the early years, leaders like John Simpson of Westinghouse, Bert Wolfe from General Electric, Jim O’Connor from Commonwealth Edison and many others who guided the industry through tremendous research, technology advancement and promise. During this time, the Atomic Energy Commission (AEC) played a dual role as both advocate and supporter of technology development as well as the safety regulator.

The 1970s saw great change in America’s energy demand and supply. As a result of the mideast oil embargoes, the world experienced the double whammy of a deep recession and double-digit inflation. Electricity demand in America plummeted from 7 percent and 10 percent annual growth rates to 1 percent to 2 percent. Hundreds of new power plants, both nuclear and coal, were cancelled. Even in these circumstances, our industry completed 81 reactors during the period 1960-1980 making nuclear energy our second largest source of electricity after coal. Also during this time the Nuclear Regulatory Commission was established as an independent regulator of nuclear safety.

During the mid-'70s, our industry leaders saw the need for a focused congressional lobbying organization and established the American Nuclear Energy Counsel (ANEC), initially led by John Conway from Consolidated Edison Company and George Gleason who came from AIF. Tom Kuhn, currently the CEO at the Edison Electric Institute (EEI), was actually the second CEO at ANEC.

Then, in 1979 we experienced the accident at Three Mile Island (TMI). While the accident had no public safety consequences, it did significantly expand our industry’s focus on operational safety – a focus that then and now has made nuclear energy much safer. Through the leadership of individuals like Bill Lee, the Institute of Nuclear Power Operations (INPO) was formed to focus our industry on always striving for excellence in operations. To address public education and communications the U.S. Council for Energy Awareness (USCEA) was established with Harry Finger as its CEO.

Later in the '80s, Byron Lee and Joe Colvin became the leaders of NUMARC, the Nuclear Utility Management and Resources Committee, established by the utilities to interface with the NRC on generic technical and regulatory issues.

Finally in 1994, the industry's leaders consolidated ANEC, USCEA, NUMARC and the nuclear fuels and waste activities at EEI into one organization, the Nuclear Energy Institute, to provide a unified voice to foster the beneficial uses of nuclear energy and technology in America and around the world.

I’ve had the honor and pleasure to have worked in our industry since 1968 in engineering, licensing, building plants and supporting operating plants. I spent two years at AIF when its headquarters was in New York in the early '70s. I joined USCEA as the vice president for technical programs in 1990 and moved to NEI when it was established in 1994. This journey has been very rewarding-mostly because of the wonderful men and women in our industry I’ve had the good fortune to work with and get to know every step of the way.

The theme for NEI's 60th anniversary is “Storied History, Bright Future.” We will celebrate our history over a 60-day period from April 10 to June 8 including events at NEI’s Nuclear Energy Assembly, May 13-15 in Washington, D.C. and with special events with current and former employees and members.

So much has happened that we can be proud of and can learn from over the last 60 years. Our bright future is exemplified by the more than 9,500 young women and men who comprise our North American Young Generation in Nuclear (NAYGN) and the almost 5,600 members of U.S. Women In Nuclear (WIN). In just under five weeks, hundreds of NAYGN members will join us in D.C. at the Nuclear Energy Assembly, bringing enthusiasm, knowledge and energy. The bright future is also evidenced by the five new nuclear energy facilities under construction (V.C. Summer in South Carolina, Vogtle in Georgia, and Watts Bar in Tennessee), the expansion of our domestic uranium enrichment facilities, the construction of the MOX facility at the Savannah River site and the more than 70 nuclear plants under construction and 164 planned worldwide.

The foundation of this bright future is based on the real value that nuclear energy and nuclear materials bring to mankind. Whether it’s how nuclear medicine helps save lives, how nuclear materials do everything from enhancing food supplies to checking welds and filling beverage cans, or how nuclear energy provides reliable clean air electricity 24/7, our quality of life in America and worldwide is significantly enhanced. It is for reasons like this that Bill Gates is pursuing advanced nuclear technology and that environmental leaders like Patrick Moore, a founder of Greenpeace, have become nuclear energy advocates.

As we look to the future we must always keep our focus on safety as our top priority when operating our facilities and handling radioactive materials. Also, those of us who have experienced the storied history of our industry have a responsibility to effectively transfer knowledge to the extremely talented young women and men who will become our future leaders. As we navigate the various challenges facing our industry, NEI and its 350+ member organizations will continue to strive toward our vision: nuclear energy is recognized as an indispensable part of America’s energy security, environmental stewardship and economic development in the 21st century.

Let’s enjoy the celebration.

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NEI CEO Marv Fertel: America's Reactors Safe Under Jaczko Term as NRC Chair, Still Safe Today

Marv Fertel

The following statement can be attributed to Marv Fertel, NEI's President and CEO. The entire statement was provided to Matt Wald of the New York Times in response to comments made yesterday in Washington by former U.S. NRC Chairman Greg Jaczko:

“U.S. nuclear energy facilities are operating safely. That was the case prior to Greg Jaczko’s tenure as Nuclear Regulatory Commission chairman. It was the case during his tenure as NRC chairman, as acknowledged by the NRC’s special Fukushima response task force and evidenced by a multitude of safety and performance indicators. It is still the case today, particularly as every U.S. nuclear energy facility adds yet another layer of safety by implementing lessons learned from the Fukushima Daiichi accident.

“The greatest safety improvement to protect against extreme events, regardless of their cause, comes from the FLEX response strategy that the industry began implementing last year. The heart of this effort is adding more portable, backup safety equipment at each reactor. More than 1,500 pieces of equipment have been acquired or ordered, including portable generators, diesel-driven pumps and satellite phones. The additional portable equipment will provide power and water to maintain key safety functions in the absence of AC power and heat transfer capability from permanently installed safety systems. These functions are reactor core cooling, used fuel pool cooling and containment integrity.

“In addition to new equipment being placed at all U.S. reactors, the industry is developing regional response centers in Memphis and Phoenix that will serve as dispatch points for additional equipment and resources. The regional response centers will be capable of delivering another full set of portable safety equipment, radiation protection equipment, electrical generators, pumps and other emergency response equipment to an affected site within 24 hours after an extreme event.

“The nuclear energy industry’s approach to safety includes a continuous focus on operational procedures, extensive training, and sharing of lessons learned among the highly professional men and women who personify our facilities’ world-class safety culture.

“Beyond the steps that the industry is taking, the NRC carries out its safety oversight mission with a staff of 4,000 employees and an annual budget of approximately $1 billion.

“It is imperative that we continue to operate at exemplary levels of safety to maintain the far-reaching benefits of nuclear energy. Nuclear power plants generate one-fifth of America’s total electricity supply and nearly two-thirds of the carbon-free supply. Beyond their around-the-clock production of large amounts of electricity, nuclear energy facilities help maintain electric grid stability, play a major role in meeting clean air requirements, anchor the local tax base with high-paying jobs, provide electric price stability for homes and businesses alike, and support fuel diversity.”

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NEI Comments on Renomination of Allison Macfarlane to the NRC

Marv Fertel

Nuclear Energy Institute president and chief executive officer Marvin Fertel issued the following statement regarding President Obama’s renomination of Allison Macfarlane as chairman of the U.S. Nuclear Regulatory Commission:

“Just this week, with the Nuclear Regulatory Commission’s most recent vote on post-Fukushima safety enhancements, we witnessed the importance of having a fully staffed, collegial NRC commission. The NRC has a unique safety mission in America, and maintaining its full complement of five commissioners of distinct and diverse viewpoints is central to fulfilling that mission.

“In her brief tenure as NRC chairman, Allison Macfarlane has achieved notable progress in returning a climate of collegiality within the commission. The nuclear energy industry commends her for this and supports the president’s effort in seeing the chairman continue in her leadership role.”

Click here to read NEI's previous statement when Macfarlane was first nominated to replace Greg Jaczko.

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Guest Post: Nuclear Energy’s Value Proposition Still Strong, Will Reassert Itself in Next Decade

J. Scott Peterson

The following guest post was written by J. Scott Peterson, NEI's senior vice president, communications.

NEW YORK CITY—Despite challenging electricity markets and natural gas prices at a 13-year low, industry leaders are confident in the long-term prospects for nuclear energy and its contributions to the electricity mix and U.S. economic growth.

On average, America’s 104 commercial reactors are the most efficient power producers on the grid—operating at 86 percent capacity factor. Capacity factor is a measure of efficiency, with a 100-percent rating equaling full power production 24/7, 365 days. Absent reactors in California, Florida and Nebraska that have been closed virtually all year for extended maintenance, the capacity factor at the other 100 reactors was just shy of 90 percent.

“We continue to invest in these facilities to preserve their asset value,” NEI President and CEO Marv Fertel told nearly 200 financial analysts and journalists at the Institute’s annual briefing in New York. “We want them in position to operate beyond 40 years—perhaps more than 60 years—and to incorporate new upgrades to maintain the highest possible level of safety.”

Depressed natural gas prices, which set electricity prices in many markets, and flat electricity demand are putting near-term pressure on some nuclear energy facilities in deregulated markets. But Fertel and industry leaders are focusing on nuclear energy’s role providing fuel diversity in the electric sector for the longer-term and the value chain of nuclear energy that extends beyond low-cost, reliable power production.

“Our plans must be flexible to adapt to high- and low-price markets and must balance short- and long-term views,” Entergy Corp. CEO Leo Denault told analysts Feb. 8. He added that Entergy, which operates 12 reactors, would continue to advocate for markets that value nuclear energy’s added value: “a source of clean energy with effectively zero emissions, grid reliability…fuel diversity, and jobs and other contributions to the regional economy.”

Fertel echoed Denault’s value chain for nuclear energy on Thursday. “Low-carbon, baseload electricity is a crucial element of sustainable development and it is why many nations are building or planning to build more nuclear energy facilities. The value proposition for nuclear energy is still strong and will reassert itself as we move beyond the near term.”

Recognition of this value chain is growing among policymakers, environmental leaders and consumers. Eighty-one percent of U.S. adults in a Feb. 8-10 survey by Bisconti Research/GfK said nuclear energy is important to America’s electricity mix.

That value chain includes:

• Production of large quantities of electricity around the clock—nearly 770 billion kilowatt-hours in 2012;

• Job creation, including thousands of jobs at new reactor projects in Georgia, South Carolina and Tennessee and a doubling of uranium enrichment production in New Mexico;

• Providing clean air compliance, including the prevention of controlled emissions under the Clean Air Act and reducing the carbon compliance burden that would otherwise fall on natural gas and coal-fired power plant;

• Providing voltage support to the grid;

• Providing forward power price stability, particularly for large industrial users of electricity;

• Contributing to fuel and technology diversity that is one of the foundations of America’s reliable and resilient electric sector.

“We continue to believe that our [nuclear] assets are some of the lowest-cost, most dispatchable baseload assets,” Exelon CEO Christopher Crane told The Chicago Tribune on Feb. 8.

Nuclear energy facilities are increasingly important for fuel diversity as natural gas use for electricity generation grows. In Florida, where more than 60 percent of electricity is produced by burning natural gas, Florida Power and Light recently completed uprates totaling 490 megawatts at its Turkey Point and St. Lucie reactors. Based on the FPL’s latest projected price of fuel and other factors, this investment is projected to save customers $3.8 billion on fossil fuel costs that otherwise would have been used over their operating lifetime.

“This value proposition will become increasingly self-evident and will drive a bright long-term future for nuclear energy,” said Fertel.

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Guest Post: Advancing Nuclear Energy Innovation, Technology

AREVA CEO Mike Rencheck (right), along with MOX Services Executive Vice President and Deputy Project Manager Steve Marr (center), answer questions about the Mixed Oxide (MOX) Fuel Fabrication Facility for NEI President and CEO Marv Fertel (left).

Yesterday, a group of NEI executives led by our President and CEO Marv Fertel, traveled to the Savannah River Site in South Carolina to personally see the progress being made on the construction of a nuclear fuel fabrication facility that will be jointly managed by the Shaw Group and AREVA.

Once construction is complete, the facility will begin to mix weapons grade plutonium with uranium -- a process that will eventually eliminate 68 metric tons of weapons grade plutonium from U.S. and Russian stockpiles. NEI Senior Vice President Scott Peterson, who accompanied Fertel on the tour, provided us with the following report.

Nearly 60 years ago, the U.S. government began production at its first reactor at the government’s sprawling Savannah River Site near Aiken, S.C., launching a legacy of research and technology innovation.

That mission continues today with construction of a nuclear fuel fabrication facility that will mix weapons-grade plutonium with uranium to produce electricity and continue reducing nuclear weapons stockpiles both in the United States and Russia.

The National Nuclear Security Administration’s plutonium disposition program will eliminate 68 metric tons of surplus weapon-grade plutonium in the United States and Russia, or about 8,500 warheads each. The two countries will eliminate the material for weapons use by converting it to mixed-oxide fuel for use in commercial reactors.

NEI executives joined the Shaw-AREVA leadership team at the site on Tuesday to survey progress at one of America’s first advanced-technology nuclear energy projects. One fuel assembly—comprised of 95,400 finger-tipped sized fuel pellets—will power 9,000 homes.

“This project is on the forefront of rebuilding America's infrastructure and providing energy solutions for future generations,” NEI Chief Executive Officer Marv Fertel said after touring the project. “The Shaw-AREVA consortia has created thousands of jobs and is developing a highly skilled workforce that is steeped in quality assurance work that is required in nuclear energy projects.

“Coupled with new reactor construction in Georgia and South Carolina, this region is leading the future of nuclear energy, which is the only large-scale, 24/7 and clean-air electricity source on the power grid. The mixed-oxide fuel facility will contribute to a secure, domestic source of fuel for nuclear energy facilities while furthering our government's commitment to reduce the Cold War weapons stockpile.”

The project has myriad advantages that make it attractive to local economies and suppliers in nearly every state:

• As many as 2,700 workers have been building the facility, including about 1,000 skilled craft workers. Project managers have been tremendously successful in recruiting highly skilled, nuclear-qualified welders, which is providing a benchmark for organized labor at two Georgia Power reactors in Burke County, Ga.

• The project is helping drive the expansion of U.S. manufacturing, with $790 million in contracts awarded to 8,900 small businesses in some 40 states. Ninety percent of the components in the fully automated fuel manufacturing process will be U.S. sourced.

• Shaw-AREVA MOX Services is proving the value of modular construction for nuclear energy facilities. Even as civil construction continues at the massive facility, engineers and mechanics are assembling and testing key systems in a huge warehouse near the construction site. This same approach is being used by Shaw to build four reactors in Georgia and South Carolina.

• The commitment to safety is clear among the Shaw-AREVA MOX Services team. At the current rate, workers at the site this week will reach 12 million hours without a lost workday accident. The U.S. Nuclear Regulatory Commission, which oversees the project, has not identified any needed safety improvements at the project.

Four advanced Westinghouse reactors are being built within 75 miles of Aiken, S.C—construction projects also managed by Shaw. Those projects will take advantage of lessons learned in modular construction, craft worker training and quality assurance from the mixed-oxide fuel facility.

“This is the beginning of the nuclear energy renaissance,” says Steve Marr, executive vice president and deputy project manager for the MOX facility. “We are leading the way both in technology evolution and innovation at the MOX project.”

Thanks to everyone at Shaw AREVA for helping to arrange the tour. For a video concerning the facility and the important work it does, click here. For a slideshow of photos from the tour, see below or click here.

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NEI's Marv Fertel on Where the Industry Stands on Used Nuclear Fuel

Today at the National Journal's Energy Experts Blog, the magazine is taking a closer look at how the nation will have to confront the issue of long-term storage of used nuclear fuel:

What safety, environmental, and economic factors should Washington consider as it debates the future of its nuclear-waste policy? Should Yucca Mountain be revived, or should Congress stop debating that repository site once and for all? How does the uncertain future over spent fuel affect the nation's dependence on nuclear power, which provides the nation with 20 percent of its electricity?

Marv Fertel, NEI's President and Chief Executive Office, has posted a response. Here's an excerpt:

The nuclear energy industry agrees with many of the common-sense recommendations in the Blue Ribbon Commission’s final report, which was developed after nearly two years of fact-finding, public interaction and intense study. In particular, three proposals should be given high priority:

• prompt efforts to develop one or more consolidated interim storage facilities at volunteer sites,

• assured access by program managers to revenues generated by payments and interest earned in the Nuclear Waste Fund,

• establish a quasi-federal organization dedicated solely to implementing the used fuel management program, with access to the Nuclear Waste Fund.

[...]

The recent ruling by the U.S. Court of Appeals for the District of Columbia that the Department of Energy failed to justify continued payments by consumers of electricity from nuclear power plants into the Nuclear Waste Fund should also help to drive the dialog. While the court did not order DOE to suspend the fee payments, the court rejected DOE’s bases for continuing to collect the fees and ordered it to conduct a complete reassessment of this fee within six months. Considering DOE has yet to move one fuel assembly as it was required by law beginning in 1998, the industry sees no justification for further collection of funds until a functioning used fuel disposal program is in place.

[...]

Now, 30 years after Congress passed the Nuclear Waste Policy Act, the development of a long-term solution to managing used nuclear fuel is long overdue. It’s time for policymakers to reexamine the program and develop a new roadmap that will meet these obligations to consumers.

For more on the safe storage of used nuclear fuel, please visit our NEI.org.

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