High Costs, Waste Issues Stall Nuclear Renaissance

Depending upon which side of the fence you areproduces electricity for $50 per megawatt hour.
sitting, the nuclear renaissance is either in fullOn the bright side, the S&P analyst believes that
blossom or an arid landscape. The new uraniumafter the first wave of nuclear power plant
miners - Paladin Resources, UrAsia and SXRconstruction, overall costs could plunge to $1.5
Uranium One - celebrate the record spot andmillion per megawatt hour for electricity, or
long-term uranium price. Exelon Corp Chiefroughly $44 per megawatt hour. Because of this
Executive John Rowe is less sanguine, based upondrop Mr. Niklas concluded nuclear energy "is by far
comments he made this past Friday, "Thethe most competitive cost from any resource,
government may have fooled me on 17 reactorsexcept perhaps hydroelectricity generation." This
that I currently run, but I'm the one who's beingis more good news for uranium miners now
foolish if I build a new plant without knowing whatsupplying the nuclear industry and those who hope
they're going to do with the spent fuel." Exelon isto do so over the next decade.
the largest owner of nuclear power plants in theThe question facing most Americans - and we
United States.would guess 99 percent haven't the slightest clue
In a September 19th article, we interviewedabout this problem - is whether or not they would
Steven Kraft, Nuclear Energy Institute Directorprefer losing the nuclear option as part of their
for Used Fuel Management. Mr. Kraft hinted theelectricity generation. The environmental lobby
stalls around the nuclear renaissance in the Unitedwould cheer the loss but the utility consumer
States would revolve around the spent fuelwould lose up to 20 percent of their baseload
depository issue. What happens with the 40,000electricity generation. And on a darker note, the
metric tons of used nuclear reactor fuel? Rightalternative would be more coal-fired power plants
now, they are chilling out in 141 concrete cooling- not wind or solar power, which are still more
ponds scattered around the country.than one decade away from offering any sort of
For the past quarter century, the nuclear industryhope for baseload electricity generation.
expected the reactor fuel would end up in aTo put this into perspective, coal now generates
centralized depository, as has been proposed at54 percent of America's electricity. One pound of
Yucca Mountain, Nevada. Thanks to U.S. Senatorcoal produces 1.25 kilowatt hours of electricity,
Reid, and his efforts to squash this site, theenough to power one 100-watt light bulb for 10
Department of Energy has been paralyzed inhours. The average internet user consumes more
moving forward. Alternatives are now beingthan his body weight in coal just to surf the net:
proposed, and the U.S. part of the nuclear12 hours weekly over the course of one year
renaissance remains stalled.consumes 300 pounds of coal. (For example, the
Then the other shoe drops. Because of theelectricity consumed to order StockInterview's
vociferous environmental lobbyists,"Investing in the Great Uranium Bull Market," would
pre-construction costs dissuade nuclear utilitiesburn up one lump of coal.) Total demand for
from accelerating their plans to build new nuclearelectricity by personal computers now amounts to
reactors in the United States. Utilities do what is8 percent of the U.S. electrical supply. In the
convenient - they pass on these licensing costs tofuture, over one billion people will be accessing the
their utility consumers. Because of theInternet. This amount of computer time would be
environmental lobby, Georgia electricity consumersequal to the total 'current' capacity of U.S.
are paying the freight to license the new nuclearelectrical production.
reactors proposed by Atlanta-based Southern Co.If the U.S. nuclear renaissance doesn't get
Charlotte-based Duke Energy hopes to get thelaunched, we will either be accessing the Internet
same deal in North Carolina.by polluting our environment with several hundred
How much does it cost to license a nuclear poweradditional millions of tons of CO2 emissions, or the
plant? Standard & Poors analyst Dimitri NikasInternet users will suffer. Wind and solar won't
estimated the permits to construct a nuclear plantpower the Internet, but coal, gas and especially
would cost between $1.5 billion and $2 billion. Thisnuclear will.
means roughly one-half the cost of constructing aAnd at this stage of the uranium renaissance, U.S.
nuclear plant in the United States goes to pay forutilities have contracted with three non-U.S.
a permit to build and operate the reactor.uranium mining companies - Paladin, SXR Uranium
Because of this expensive proposition, nuclearOne and UrAsia - to purchase uranium mined in
energy costs more to produce electricity in theNamibia, South Africa and Kazakhstan. Where is
United States than it would in places like China,the energy independence in that observation?
Korea, Japan or just about anywhere else. For aNext we'll be buying our electricity from the
nuclear plant costing $2 million per megawatt toRussians, Chinese, and quite possibly the Iranians,
build, the power plant's electricity would cost $55if this nonsense continues. Please bring this to the
per megawatt hour. By comparison, a coal-firedattention of your local environmental lobbying
power plant costs consumers $53 per megawattoffice.
hour for their electricity. A combined cycleCOPYRIGHT © 2007 by StockInterview,
integrated gasification plant fueled by coalInc. ALL RIGHTS RESERVED.