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July 2nd, 2007

Czech pro-nuclear groups turn the tables on Austria

Europe encompasses the whole spectrum of opinions when it comes to nuclear power. This is well illustrated by the row between anti-nuclear groups in Austria, where opposition to atomic energy is enshrined in law, and champions of nuclear power in the neighbouring Czech Republic. According to the Prague Post,  Czech nuclear enthusiasts have set up the Start Zwentendorf advocacy group to counter (and satirise) the efforts of the Stop Temelín anti-nuclear pressure group in Austria. Zwentendorf, Austria’s only nuclear plant, was built in 1978 but has never been used to generate power as a public referendum that year decided not to launch the reactor and to rule out further nuclear development. Temelín, meanwhile, is the Czech Republic’s biggest nuclear power plant and has become the focus of protests by Austrian anti-nuclear activists, including border-crossing blockades.

May 11th, 2007

The high price of clean coal

Clean coal technology, in which the carbon dioxide produced by burning the black stuff is captured and stored, is being heavily promoted as an answer to global warming by many in the power and coal mining industries. As part of its forthcoming energy white paper, the UK government will hand out subsidies to a handful of clean coal projects around the country, and most of the UK power generators are expected to compete for the cash. In today’s Times newspaper, however, Centrica, owner of British Gas, warns that clean coal plants will be expensive and a high price for carbon in the European Emissions Trading Scheme, as well as initial subsidies, will be needed to make them economically-viable.

UK energy companies are busy planning new coal-fired power plants, but are hedging their bets on clean-coal technology until they know more about the government subsidies available, and the forecast for carbon prices in the third phase of the European ETS, from 2012. RWE Npower said today it is looking at building a new £2bn coal-fired plant at Blyth in Northumberland. The new 2,400MW plant will be more efficient than older power stations, and will be "carbon-capture ready". Cynics suggest that this means little more than having enough spare land available at the site to possibly build clean coal equipment in the future……

May 3rd, 2007

No rush for UK energy white paper

Many in the UK energy industry have grown increasingly frustrated waiting for the UK government to publish its energy white paper, which will set the framework for future energy policy and most likely kick-start the building of new nuclear reactors. After several delays, the paper is now expected in the second half of May. But the Renewable Energy Association says the government should not be too hasty. In a statement, it argues that publication of the white paper should be postponed in order to include measures needed to meet new European Union targets, such as a 20 per cent reduction in energy consumption by 2020. “We can’t keep tinkering with our energy policy – this is the last chance to get on the right path and stay there,” says Philip Wolfe, chief executive of the REA, which represents a range of UK energy companies and technology providers.

April 19th, 2007

Nuclear power not the answer for the US?

Contrary to the hopes of the Bush administration, nuclear power will neither play a major role in reducing US carbon emissions nor in increasing energy security, according to a report by Council on Foreign Relations. Even if a new reactor was built every four or five months over the next forty years, it would only be enough to replace the 103 reactors currently in production in the US, many of which will close down in the next few decades. This replacement rate faced "daunting challenges" said the report, such as a lack of skilled workers and difficulties in getting specialised components.

April 18th, 2007

Coal prices on the rise

World prices for thermal coal, used in power stations, are likely to rise sharply in the next few years as China becomes a net importer of the fuel earlier than expected, says Mineweb. European coal prices have already risen to about $70 a tonne from $52 at the end of 2005, it adds. This should benefit mining companies such as Xstrata, Rio Tinto and BHP Billiton. Meanwhile China’s rush to produce the coal it needs from its own ramshackle mines is having tragic consequences. Mineweb points out that there have been three coal mining accidents in China in the last 24 hours.

April 17th, 2007

BHP Billiton versus James Bond

Mining and energy group BHP Billiton has not yet scrapped ideas of building California’s first terminal for imports of liquefied natural gas (LNG), according to The Times of London, despite its plan being rejected by a second state regulator. A glamorous group of protestors, including Pierce Brosnan, Halle Berry and Cindy Crawford, contend that the $800m offshore regasification project will cause damage to ocean mammals and birds and prove an eyesore for residents of Malibu. In what could be an intriguing clash of Hollywood tough guys, Californian governor Arnold Schwarzeneggar has implicitly backed the project, saying that LNG "should be part of California’s energy portfolio".

April 12th, 2007

Uranium sector hots up

The worldwide revival of nuclear power has helped to push the price of uranium above $100 per pound, and the radioactive metal is currently quoted at $113 per pound, compared to $75 in February and $20 in 2004. The booming uranium price has triggered a wave of consolidation in the uranium mining sector; earlier this week UrAsia Energy approved a $2.9bn reverse takeover by fellow Canadian SXR Uranium One, and in Australia Paladin Resources on Thursday upped its hostile offer for Summit Resources by 20 per cent to $975m. Minesite.com  is running a good overview of this colourful battle, including the recent intervention of Areva of France, a possible white knight for Summit.

April 10th, 2007

TXU looks to nuclear expansion

Texas could be the centre of the nuclear power revival in the US, according to today’s Wall Street Journal (subscription required). Energy group TXU, currently the subject of a $45bn takeover bid by private equity group KKR, is planning to build up to five new nuclear reactors in the state, says the paper, with the first reactor on line by 2015. Interestingly, TXU is set to buy its reactor technology from Mitsubishi Heavy Industries of Japan rather than market leaders GE and Westinghouse. Mitsubishi’s reactor design has yet to be certified for use in the US, unlike reactors from GE and Westinghouse, which is now owned by a consortium led by Toshiba of Japan.

April 3rd, 2007

Silver lining for Eon in Spain

On Monday night, Eon, Enel and Acciona announced a shock ceasefire (may require ft.com subscription) in the battle to control Endesa, Spain’s biggest energy group. Eon agreed to drop its bid, clearing the way for Enel and Acciona to make an offer. In return, Eon will be allowed to buy a chunk of Endesa’s assets worth around Euros10bn, giving the German group an entry into several new markets. Analysts are saying that this is a good outcome for Eon, and Platts is today looking at who could be Eon’s next target.


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