Ken Silverstein EnergyBiz Insider Editor-in-Chief

Proponents of nuclear energy say that future nuclear reactors will be safer, more cost effective and highly efficient. That will give nuclear energy a regulatory advantage and therefore help such producers raise capital for their projects. Several nations that include the United States have combined to come up with newer and better technologies that purport to be safer and more environmentally friendly.

The U.S. Department of Energy is responsible for conducting research and development to select an initial design for the modern nuclear reactors and to do so by 2011. By 2021, it is supposed to have picked a final design and construction on reactors is expected to begin. The difference between the so-called Very High Temperature Reactors and the ones used today is that the future ones will operate at 1,742 degrees Fahrenheit. That is about three times that of today's light water reactors, which results in a more efficient use of fuel and the ability to create hydrogen in the process. All of that makes the proposition a lot more economically attractive.

The reactors are cooled by helium gas and not water. That means that the reactors rely on gravity and not on mechanical instruments to flush water through the system in the event of emergency. Therefore, the odds of any leaks and subsequent meltdowns are close to zero, say advocates of the design. And because the system relies on gravity and not mechanical tools that must constantly pump the water to cool the reactors, the cost to build them would be less.

At least that's the theory. "Our reviews of the Energy Department management of other major projects have found that the project management has long been a significant challenge and (this latest reactor) is at high risk of waste and mismanagement," says a study just released by the General Accountability Office that is a congressional watchdog agency. If the project is successful, however, the watchdog agency has high hopes because such systems would not need cooling towers, redundant pumps and back-up diesel generators. That would result in a safer and more economical reactor, it says.

The U.S. Nuclear Regulatory Commission has awarded the design of the next generation nuclear reactor to Westinghouse. At the same time, AREVA NP, formerly Framatome ANP, and Siemens have formed an alliance to build reactors here in the United States. They currently design and install 30 percent of the world's nuclear generation capacity and provide nuclear fuel to 46 percent of it while GE is active here and elsewhere.

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While nuclear energy proponents are optimistic about new reactor designs and the potential role they might play in producing an increased amount of electricity, opponents remain vigilant. Those Very High Temperature Reactors might work well in the lab, they say, but they are unproven as commercial entities. Beyond that: There's still no politically viable solution over where to store the spent nuclear waste.

It's now a test of wills. No new plants have been started in a couple decades. The Tennessee Valley Authority was the last one to activate a new nuclear reactor -- Watts Bar in Spring City, Tenn. -- in 1996. That reactor ended up costing $6 billion to build after construction and financing in a process that took 20 years.

As a result of all that, utilities lost their appetite to build nuclear plants. But, energy shortages, high prices and environmental concerns mean that policymakers, producers and consumers alike are searching for newer and cleaner fuel sources. Congress sees potential in nuclear. It authorized in last year's energy bill $1 billion in tax credits as well as $500 million in insurance to protect against delays in construction that are directly tied to regulatory logjams. And, finally, the first six reactors to get built in the 21st Century are promised millions in loan guarantees.

No doubt, utilities are now motivated to at least explore the possibility of building modern nuclear power plants. About 15 sites are under consideration, with roughly 13 of them based in the south. Southern Co. is looking to construct two of them at one of its existing plants in Georgia and plans to file a permit to do so by 2008. TVA, meantime, is doing the same at one of its existing sites while Duke Energy is getting applications ready for construction in North and South Carolina. Dominion Power says it will submit preliminary paperwork next year to build in Virginia and South Carolina and Entergy will also file applications to build two reactors in Mississippi.

"We say broadly the passive plants (next generation nuclear reactors) are simple and have fewer active components, and should cost less to build," says Ed Cummins, nuclear engineering manager for Westinghouse in an interview with the Associated Press. "Utilities are not risk takers. Investors want steady earnings and low risk."

The International Atomic Energy Agency says nuclear energy now comprises 16 percent of the world's generation mix. But, it projects the use of such power to grow significantly over the next 30 years and mainly in Asia. In fact, 22 of the last 31 such plants have been constructed in Asia while 18 of the current 27 reactors now being built are going up there. Japan, for example, has few natural resources and limited land space while China relies heavily on coal with high sulfur content and is looking for cleaner options.

Today, energy demand is growing and some prevalent fuel sources are becoming scarce. That reality, in conjunction with global environmental concerns, means that many of the pieces are now in place for nuclear energy to make a comeback. Opposition will remain strong. But the American public is listening.

More information on this topic is available from Energy Central:

Entergy’s Nuclear Strategy EnergyBiz, July/August 2005

Dawn of a New Nuclear Era EnergyBiz, July/August 2005

Recycling Nuclear Waste – Fast Nuclear Reactors Ene rgyBiz, March/April 2006

For far more extensive news on the energy/power visit:  http://www.energycentral.com .

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