What's new in production

	Vol. 226 No. 3
ROBERT E. SNYDER, EXECUTIVE ENGINEERING EDITOR

Nuclear comeback? One simply cannot think about future energy supply/ demand without believing that the future major supplemental energy supply must come from nuclear electrical power generation. Yet, as Ken Silverstein points out in his February 17 Issue Alert, no nuclear facilities have been built in the US in 25 years. That could be changing, as several companies are winning permits to allow them to keep running or even expand existing facilities. And with critical support from the Bush administration, coupled with real concerns over high natural gas prices and global warming, construction on a new facility could begin by 2010 and be completed by 2015.

Coal now supplies about 51% of the US’ generation mix; gas makes up 17%, while renewables, including hydropower, comprise another 8% – nuclear provides 20%. Dominion Resources, Entergy Corp. and Exelon Corp. have applied to the Nuclear Regulatory Commission (NRC) for permission to build plants in the next 20 years. Dominion is furthest along. It hopes to construct a plant at North Anna, Virginia, where it already has two other generators. Exelon has done the paperwork in Clinton, Illinois, while Entergy wants to build a facility near Vicksburg, Mississippi. None of the companies has yet made a commitment to buy a nuclear reactor.

Strongest arguments for building new nuclear facilities center on the facts that the uranium to make fuel is abundant and the energy produced is emissions-free. But, nuclear energy has high capital costs and if the construction phase takes a while, it means projects lose potential revenues and rack up finance charges.

Silverstein says the federal government can help by supplying production tax credits and loan guarantees, i.e., for each kilowatt produced, the government offsets the costs as a means to induce development. Meantime, Senate Energy Committee Chairman Pete Dominici, R-N.M., has introduced legislation to create new nuclear generation by offering $30 billion in loan guarantees for construction of six new power plants to produce 8,400 megawatts. And the technologies to get the first new plants underway is being studied by federally-backed economic, engineering and environmental groups. One goal is to get the first plants started by 2010.

But safety and economics still stand in the way. Nuclear generators in the US are currently storing 50,000 tons of nuclear waste. And while those facilities can safely house that spent material in cooling ponds inside the facilities, the problem of finding a permanent home for that waste has not been solved. Yucca Mountain is one major proposal, but legal hurdles could doom the project.

Other more positive moves are underway. In the last six years, NRC has renewed operating licenses for 30 older plants. And last fall it certified a modern reactor designed by Westinghouse. Two nuclear “power houses,” Framatome ANP and Siemens AG, have formed an alliance to build reactors in the US. They currently design/ install 30% of the world’s nuclear generation capacity and provide nuclear fuel to 46%. And the Tennessee Valley Authority has a $1.8 billion effort underway to modernize its Browns Ferry Nuclear Plant. New Mexico, meanwhile, may host a state-of-the-art uranium enrichment plant, if the governor is guaranteed that the waste will leave the state

Silverstein says, “A groundswell of public support must form if the political will is to strengthen. The nuclear industry has a ways to go. But, after a lull of more than 25 years, it has brought the issue back on the radar screen.

Chicken poop power. In questionable competition to 30 nuclear power plants operating in the US, the Maryland Environmental Service is requesting information from qualified firms interested in developing a poultry-litter-fueled power generation facility on the Eastern Shore of Maryland. Comments on non-energy producing uses of such “litter” that reduce nutrient run-off into Chesapeake Bay will also be considered and included in the final report. The opportunity is to use the state’s nutrient reduction initiative for improving Bay water quality to build the power generator.

Electric power plant developers, contractors, producers and distributors are invited to show their interest in developing or partnering in developing such a facility. The State of Maryland is requesting information from qualified firms able to design, build and operate the generation facility. Among the technologies that could be employed in converting chicken poop to energy are: combustion, fluidized bed, and 1st and 2nd generation pressurized fluidized beds. Other technologies might also be suitable.

How much power will this generate? The proposal piece does not say, but my estimate is that this fuel source may light 18 houses, if no light bulbs stronger than 40 watts are used. More technical estimates may be solicited from: Maryland.environmental.service@calcium.netcontentinc.net.

News in the US Gulf. As reported by the US Minerals Management Service (MMS), in the deepwater Gulf of Mexico, there were 14 new deepwater startups and 12 discoveries in 2004. These new startups and discoveries show once again that the Gulf is alive and well and helping America meet her energy needs. This tenth year of sustained expansion adds further to the success of previous years.

Six of the 14 starts are floating production facilities (two TLPs and four Spars) that can act as hubs for future subsea developments. Two of these broke offshore records in 2004: ConocoPhillips’ Magnolia set the world record for TLP water depth at 4,657 ft, and BP’s Holstein is the world’s largest producing Spar.

And updating last year’s storm damage, the past year was also marked by a 30-year high in oil imports, due in part to a record-breaking hurricane season. Oil/ gas production in the Gulf is expected to return to normal this year following the devastation of Hurricane Ivan. Less than 10% of oil production and 5% of gas production remains shut-in. MMS notes that some 98% of the major oil and gas platforms in the Gulf are now producing.

A more lasting effect of last year’s US Gulf hurricane damage is the need to restudy the offshore pipeline and platform facilities in the shallower water where, of some 4,000 structures and 33,000 miles of pipelines, 150 platforms and 10,000 miles of pipeline were in the direct path of Hurricane Ivan, particularly in the shelf area around the Mississippi River delta, the Gulf area most susceptible to underwater mudslides.