NIMBY: Nukes In My Backyard

By Investor's Business Daily


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In a Sunday New York Times op-ed, Gore called for "an emergency rescue of human civilization from the imminent and rapidly growing threat posed by the climate crisis." To that end, he proposed "a commitment to producing 100% of our electricity from carbon-free sources within 10 years."

Oddly, Gore does not mention nuclear power, a source from which we already get 20% of our electricity and from which we could get more, thanks in part to the development of a new type of power plant that compares roughly to the evolution from the room-size vacuum-tube computers of the 1950s to today's laptops.

Using technology developed at the Los Alamos National Laboratory and licensed from the U.S. government, New Mexico-based Hyperion Power Generation Inc., has taken its first orders for miniature nuclear power plants that could literally fit in your backyard.

The module produces about 70 megawatts of thermal energy or 27 megawatts of electricity via steam turbine, enough to power about 20,000 American-style houses.

"Our goal is to generate electricity for 10 cents a watt anywhere in the world," says John Deal, chief executive of Hyperion. They will cost approximately $25 million each. For a community with 10,000 households, that is a very comfortable $250 per home."

The units are factory-sealed, can be delivered by truck and are buried underground. Like a car battery, there are no moving parts and no danger of a Chernobyl-type event. The module uses very low enriched materials that remain sealed for the five- to seven-year life of the module. It's also terrorist-proof.

Other companies are working on similar nuclear projects, large and small. Toshiba is reportedly working on a small-scale design for Galena, Alaska. NuScale Power, a startup spawned in the nuclear engineering department at Oregon State, was the first U.S. company to submit plans to the Nuclear Regulatory Commission, which regulates all domestic nuclear power plants.

NuScale's design is somewhat larger. The whole unit is 65 feet long, with the reactor unit taking up 14 feet of that. Each 45-megawatt electrical unit would generate enough power for about 45,000 homes. It can be mass-produced entirely in the U.S., an important factor since our domestic industry has atrophied since Three Mile Island, and the worldwide backlog for power plants is huge.

Such mini-nukes can be delivered anywhere in the world and have a multitude of uses. For example, an estimated 25% of the world's population is without adequate drinking water; mini-nukes could provide the power in remote areas to pump, purify and circulate clean water.

Their footprint compared to wind and solar plants is like comparing a Chihuahua to Godzilla. Modern turbines can be as tall as 400 feet and carry 130-foot, seven-ton, endangered-bird-slicing blades. Building these wind farms requires five to 10 times more steel and concrete than a nuclear plant generating the same amount of power.

"Alternative" or "renewable" energies such as wind and solar are romantic notions, but bump up hard against reality — including the fact that just a single 50-megawatt wind facility requires an appalling 4,000 acres of land covered with these enormous towers that work only when the wind is blowing.

In his op-ed, Gore noted that "President John F. Kennedy challenged our nation to land a man on the moon within 10 years." The Manhattan Project, which harnessed nuclear power for war, took half that time.

How about a new Manhattan Project — not one that subsidizes tilting at windmills or putting food in our gas tanks, but that encourages the rapid development, licensing and mass production of an existing clean and virtually limitless source of energy?

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Wyoming wind boost for US utility

Black Hills Energy Corriedale Wind Farm Expansion earns regulatory approval in Wyoming, boosting capacity to over 52MW near Cheyenne with five turbines, supporting Renewable Ready customers and wind power goals under PUC and PSC oversight.

 

Key Points

An approved Wyoming wind project upgrade to over 52MW, adding five turbines to serve Renewable Ready customers.

✅ Adds 12.5MW via five new wind turbines near Cheyenne

✅ Cost increases to $79m; prior estimate $57m

✅ Approved by SD PUC after Wyoming PSC review

 

US company Black Hills Energy has received regulatory approval to increase the size of its Corriedale wind farm in Wyoming, where Wyoming wind exports to California are advancing, to over 52MW from 40MW previously.

The South Dakota Public Utilities Commission approved the additional 12.5MW capacity after the Wyoming Public Service Commission determined the boost was within commission rules, as federal initiatives like DOE wind energy awards continue to support the sector.

Black Hills Energy will install five additional turbines, raising the project cost to $79m from $57m, amid growing heartland wind investment across the region.
Corriedale will be built near Cheyenne and is expected to be placed in service in late 2020.

Similar market momentum is seen in Canada, where a Warren Buffett-linked Alberta wind farm is planned to expand capacity across the region.

Black Hills said that during the initial subscription period for its Renewable Ready program, applications of interest from eligible commercial, industrial and governmental agency customers were received in excess of the program's 40MW, underscoring the view that more energy sources can make stronger projects.

Black Hills Corporations chief executive and president Linden Evans said: “We are pleased with the opportunity to expand our Renewable Ready program, allowing us to meet our customers’ interest in renewable wind energy, which co-op members increasingly support.

“This innovative program expands our clean energy portfolio while meeting our customers’ evolving needs, particularly around cleaner and more sustainable energy, as projects like new energy generation coming online demonstrate.”

 

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Venezuela: Electricity Recovery Continues as US Withdraws Diplomatic Staff

Venezuela Power Outage cripples the national grid after a massive blackout; alleged cyber attacks at Guri Dam and Caracas, damaged transmission lines, CORPOELEC restoration, looting, water shortages, and sanctions pressure compound recovery.

 

Key Points

A March 2019 blackout crippling Venezuela's grid amid alleged cyber attacks, equipment failures, and slow restoration.

✅ Power restored partially after 96 hours across all states

✅ Alleged cyber attacks at Guri Dam and Caracas systems

✅ CORPOELEC urges reduced load during grid stabilization

 

Venezuelan authorities continue working to bring back online the electric grid following a massive outage that started on Thursday, March 7.

According to on-the-ground testimonies and official sources, power finally began to reach Venezuela’s western states, including Merida and Zulia, on Monday night, around 96 hours after the blackout started. Electricity has now been restored at least in some areas of every state, with authorities urging citizens, as seen in Ukraine's efforts to keep lights on during crisis, to avoid using heavy usage devices while efforts to restore the whole grid continue.

President Nicolas Maduro gave a televised address on Tuesday evening, offering more details about the alleged attack against the country’s electrical infrastructure. According to Maduro, both the computerized system in the Guri Dam, on Thursday afternoon, and the central electrical “brain” in Caracas, on Saturday morning, suffered cyber attacks, while recovery was delayed by physical attacks against transmission lines and electrical substations, a pattern seen in power outages in western Ukraine as well.

“The recovery has been a miracle by CORPOELEC (electricity) workers” he said, vowing that a “battle” had been won.

Maduro claimed that the attacks were directed from Chicago and Houston and that more evidence would be presented soon. The Venezuelan president had announced on Monday that two arrests were made in connection to alleged acts of sabotage against the communications system in the Guri Dam.

Venezuela’s electrical grid has suffered from poor maintenance and sabotage in recent years, with infrastructure strained by under-investment and Washington’s economic sanctions further compounding difficulties, with parallels to electricity inequality in California highlighting broader systemic challenges, though causes differ.

The extended power outage saw episodes of lootings take place, especially in the Zulia capital of Maracaibo. Food warehouses, supermarkets and a shopping mall were targeted according to reports and footage on social media.

Isolated episodes of protests and lootings were also reported in other cities, including some sectors of Caracas. A video spread on social media appeared to show a violent confrontation in the eastern city of Maturin in which a National Guardsman was shot dead.

While electricity has been gradually restored, public transportation and other services have yet to be reactivated, a contrast with U.S. grid resilience during COVID-19 where power systems remained stable, with the government suspending work and school activities until Wednesday.

In Caracas, attention has now turned to water. Shortages started to be felt after the water pumping system in the nearby Tuy valley was shut down amid the electricity blackout, underscoring that electricity is civilization in conflict zones, as interdependent systems cascade. Authorities announced on Tuesday afternoon that the system was due to resume supplying water to the capital metropolitan region.

Some communities protested the lack of water on Monday and long queues formed at water distribution points, with local authorities looking to send water tanks to supply communities and guarantee the normal functioning of hospitals.

The Venezuelan government has yet to release any information concerning casualties in hospitals, with NGO Doctors for Health reporting 24 dead as of Monday night following alleged contact with multiple hospitals. Higher figures, including claims of 80 newborns dead in Maracaibo, have been denied by local sources.

Self-proclaimed “Interim President” Juan Guaido has blamed the electricity crisis on government mismanagement and corruption, dismissing the government’s cyber attack thesis on the grounds that the system is analog, and attributing the national outage to a lack of qualified personnel needed to reactivate the grid. However, these claims have been called into question by people with knowledge of the system.

Guaido called for street protests on Tuesday afternoon which saw small groups momentarily take to streets in Caracas and other cities, or banging pots and pans from windows.

The opposition-controlled National Assembly, which has been in contempt of court since 2016, approved a decree on Monday declaring a state of “national alarm,” blaming the government for the current crisis and issuing instructions for public officials and security forces.

Likewise on Tuesday, Venezuelan Attorney General Tarek William Saab announced that an investigation was being opened against Guaido regarding his alleged responsibility for the recent power outage. Saab explained that this investigation would add to the previous one, opened on January 29, as well as determine responsibilities in instigating violence.

 

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Brazil government considers emergency Coronavirus loans for power sector

Brazil Energy Emergency Loan Package aims to bolster utilities via BNDES as coronavirus curbs electricity demand. Aneel and the Mines and Energy Ministry weigh measures while Eletrobras privatization and auctions face delays.

 

Key Points

An emergency plan supporting Brazilian utilities via BNDES and banks during coronavirus demand slumps and payment risks.

✅ Modeled on 2014-2015 sector loans via BNDES and private banks

✅ Addresses cash flow from lower demand and bill nonpayment

✅ Auctions and Eletrobras privatization delayed amid outbreak

 

Brazil’s government is considering an emergency loan package for energy distributors struggling with lower energy use and facing lost revenues because of the coronavirus outbreak, echoing strains seen elsewhere such as Germany's utility troubles during the energy crisis, an industry group told Reuters.

Marcos Madureira, president of Brazilian energy distributors association Abradee, said the package being negotiated by companies and the government could involve loans from state development bank BNDES or a pool of banks, but that the value of the loans and other details was not yet settled.

Also, Brazil’s Mines and Energy Ministry is indefinitely postponing projects to auction off energy transmission and generation assets planned for this year because of the coronavirus, even as the need for electricity during COVID-19 remained critical, it said in the Official Gazette.

The coronavirus outbreak will also delay the privatization of state-owned utility Eletrobras, its chief executive officer said on Monday.

The potential loan package under discussion would resemble a similar measure in 2014 and 2015 that offered about 22 billion reais ($4.2 billion) in loans to the sector as Brazil was entering its deepest recession on record, and drawing comparisons to a proposed Texas market bailout after a winter storm, Madureira said.

Public and private banks including BNDES, Caixa Economica Federal, Itau Unibanco and Banco Bradesco participated in those loans.

Three sources involved in the discussions said on condition of anonymity that the Mines and Energy Ministry and energy regulator Aneel were considering the matter.

Aneel declined to comment. The Mines and Energy Ministry and BNDES did not immediately respond to requests for comment.

Energy distributors worry that reduced electricity demand during COVID-19 could result in deep revenue losses.

The coronavirus has led to widespread lockdowns of non-essential businesses in Brazil, while citizens are being told to stay home. That is causing lost income for many hourly and informal workers in Brazil, who could be unable to pay their electricity bills, raising risks of pandemic power shut-offs for vulnerable households.

The government sees a loan package as a way to stave off a potential chain of defaults in the sector, a move discussed alongside measures such as a Brazil tax strategy on energy prices, one of the sources said.

On a conference call with investors about the company’s latest earnings, Eletrobras CEO Wilson Ferreira Jr. said privatization would be delayed, without giving any more details on the projected time scale.

The largest investors in Brazil’s energy distribution sector include Italy’s Enel, Spain’s Iberdrola via its subsidiary Neoenergia and China’s State Grid via CPFL Energia, with Chinese interest also evidenced by CTG's bid for EDP, as well as local players Energisa e Equatorial Energia. 

 

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Westinghouse AP1000 Nuclear Plant Breaks A First Refueling Outage Record

AP1000 Refueling Outage Record showcases Westinghouse nuclear power excellence as Sanmen Unit 2 completes its first reactor refueling in 28.14 days, highlighting safety, reliability, outage optimization, and economic efficiency in China.

 

Key Points

It is the 28.14-day initial refueling at Sanmen Unit 2, a global benchmark achieved with Westinghouse AP1000 technology.

✅ 28.14-day first refueling at Sanmen Unit 2 sets global benchmark

✅ AP1000 design simplifies systems, improves safety and reliability

✅ Outage optimization by Westinghouse and CNNC accelerates schedules

 

Westinghouse Electric Company China operations today announced that Sanmen Unit 2, one of the world's first AP1000® nuclear power plants, has set a new refueling outage record in the global nuclear power industry, completing its initial outage in 28.14 days.

"Our innovative AP1000 technology allows for simplified systems and significantly reduces the amount of equipment, while improving the safety, reliability and economic efficiency of this nuclear power plant, reflecting global nuclear milestones reached recently," said Gavin Liu, president of the Westinghouse Asia Operating Plant Services Business. "We are delighted to see the first refueling outage for Sanmen Unit 2 was completed in less than 30 days. This is a great achievement for Sanmen Nuclear Power Company and further demonstrates the outstanding performance of AP1000 design."

All four units of the AP1000 nuclear power plants in China have completed their first refueling outages in the past 18 months, aligning with China's nuclear energy development momentum across the sector.  The duration of each subsequent outage has fallen significantly - from 46.66 days on the first outage to 28.14 days on Sanmen Unit 2.

"During the first AP1000 refueling outage at the Sanmen site in December 2019, a Westinghouse team of experts worked side-by-side with the Sanmen outage team to partner on outage optimization, and immediately set a new standard for a first-of-a-kind outage, while major refurbishments like the Bruce refurbishment moved forward elsewhere," said Miao Yamin, chairman of CNNC Sanmen Nuclear Power Company Limited. "Lessons learned were openly exchanged between our teams on each subsequent outage, which has built to this impressive achievement."

Westinghouse provided urgent technical support on critical issues during the outage, as international programs such as Barakah Unit 1 achieved key milestones, to help ensure that work was carried out on schedule with no impact to critical path.

In addition to the four AP1000 units in China, two units are under construction at the Vogtle expansion near Waynesboro, Georgia, USA.

Separately, in the United States, a new reactor startup underscored renewed momentum in nuclear generation this year.

 

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N.S. abandons Atlantic Loop, will increase wind and solar energy projects

Nova Scotia Clean Power Plan 2030 pivots from the Atlantic Loop, scaling wind and solar, leveraging Muskrat Falls via the Maritime Link, adding battery storage and transmission upgrades to decarbonize grid and retire coal.

 

Key Points

Nova Scotia's 2030 roadmap to replace coal with wind, solar, hydro imports, storage, and grid upgrades.

✅ 1,000 MW onshore wind to supply 50% by 2030

✅ Battery storage sites and New Brunswick transmission upgrades

✅ Continued Muskrat Falls imports via Maritime Link

 

Nova Scotia is abandoning the proposed Atlantic Loop in its plan to decarbonize its electrical grid by 2030 amid broader discussions about independent grid planning nationwide, Natural Resources and Renewables Minister Tory Rushton has announced.

The province unveiled its clean power plan calling for 30 per cent more wind power and five per cent more solar energy in the Nova Scotia power grid over the coming years. Nova Scotia's plan relies on continued imports of hydroelectricity from the Muskrat Falls project in Labrador via the Emera-owned Maritime Link.

Right now Nova Scotia generates 60 per cent of its electricity by burning fossil fuels, mostly coal, and some increased use of biomass has also factored into the mix. Nova Scotia Power must close its coal plants by 2030 when 80 per cent of electricity must come from renewable sources in order reduce greenhouse gas emissions causing climate changes.

Critics have urged reducing biomass use in electricity generation across the province.

The clean power plan calls for an additional 1,000 megawatts of onshore wind by 2030 which would then generate 50 per cent of the the province's electricity, while also advancing tidal energy in the Bay of Fundy as a complementary source.    

"We're taking the things already know and can capitalize on while we build them here in Nova Scotia," said Rushton, "More importantly, we're doing it at a lower rate so the ratepayers of Nova Scotia aren't going to bear the brunt of a piece of equipment that's designed and built and staying in Quebec."

The province says it can meet its green energy targets without importing Quebec hydro through the Atlantic loop. It would have brought hydroelectric power from Quebec into New Brunswick and Nova Scotia via upgraded transmission links. But the government said the cost is prohibitive, jumping to $9 billion from nearly $3 billion three years ago with no guarantee of a secure supply of power from Quebec.

"The loop is not viable for 2030. It is not necessary to achieve our goal," said David Miller, the provincial clean energy director. 

Miller said the cost of $250 to $300 per megawatt hour was five times higher than domestic wind supply.

Some of the provincial plan includes three new battery storage sites and expanding the transmission link with New Brunswick. Both were Nova Scotia Power projects paused by the company after the Houston government imposed a cap on the utility's rate increased in the fall of 2022.

The province said building the 345-kilovolt transmission line between Truro, N.S., and Salisbury, N.B., and an extension to the Point Lepreau Nuclear Generating Station, as well as aligning with NB Power deals for Quebec electricity underway, would enable greater access to energy markets.

Miller says Nova Scotia Power has revived both.

Nova Scotia Power did not comment on the new plan, but Rushton spoke for the company.

"All indications I've had is Nova Scotia Power is on board for what is taking place here today," he said.

 

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Is Hydrogen The Future For Power Companies?

Hydrogen Energy Transition accelerates green hydrogen, electrolyzers, renewables, and fuel cells, as the EU and US scale decarbonization, NextEra tests hydrogen-to-power, and DOE funds pilots to replace natural gas and cut CO2.

 

Key Points

A shift to deploy green hydrogen tech to decarbonize power, industry, and transport across EU and US energy systems.

✅ EU targets 40 GW electrolyzers plus 40 GW imports by 2030

✅ DOE funds pilots; NextEra trials hydrogen-to-power at Okeechobee

✅ Aims to replace natural gas, enable fuel cells, cut CO2

 

Last month, the European Union set out a comprehensive hydrogen strategy as part of its goal to achieve carbon neutrality for all its industries by 2050. The EU has an ambitious target to build out at least 40 gigawatts of electrolyzers within its borders by 2030 and also support the development of another 40 gigawatts of green hydrogen in nearby countries that can export to the region by the same date. The announcement came as little surprise, given that Europe is regarded as being far ahead of the United States in the shift to renewable energy, even as it looks to catch up on fuel cells with Asian leaders today.

But the hydrogen bug has finally arrived stateside: The U.S. Department of Energy has unveiled the H2@Scale initiative whereby a handful of companies including Cummins Inc. (NYSE: CMI), Caterpillar Inc.(NYSE: CAT), 3M Company (NYSE: MMM), Plug Power Inc.(NASDAQ: PLUG) and EV startup Nikola Corp.(NASDAQ: NKLA), even as the industry faces threats to the EV boom that investors are watching, will receive $64 million in government funding for hydrogen research projects.

Hot on the heels of the DoE initiative: American electric utility and renewable energy giant, NextEra Energy Inc.(NYSE: NEE), has unveiled an equally ambitious plan to start replacing its natural gas-powered plants with hydrogen.

During its latest earnings call, NextEra’s CFO Rebecca Kujawa said the company is “…particularly excited about the long-term potential of hydrogen” and discussed plans to start a pilot hydrogen project at one of its generating stations at Okeechobee Clean Energy Center owned by its subsidiary, Florida Power & Light (FPL). NextEra reported Q2 revenue of $4.2B (-15.5% Y/Y), which fell short of Wall Street’s consensus by $1.12B while GAAP EPS of $2.59 (+1.1% Y/Y) beat estimates by $0.09. The company attributed the big revenue slump to the effects of Covid-19.

Renewable energy and hydrogen stocks have lately become hot property as EV adoption hits an inflection point worldwide, with NEE up 16% in the year-to-date; PLUG +144%, Bloom Energy Corp. (NYSE: BE) +62.8% while Ballard Power Systems (NASDAQ: BLDP) has gained 98.2% over the timeframe.

NextEra’s usual modus operandi involves conducting small experiments with new technologies to establish their cost-effectiveness, a pragmatic approach informed by how electricity changed in 2021 across the grid, before going big if the trials are successful.

CFO Kujawa told analysts:
“Based on our ongoing analysis of the long-term potential of low-cost renewables, we remain confident as ever that wind, solar, and battery storage will be hugely disruptive to the country’s existing generation fleet, while reducing cost for customers and helping to achieve future CO2 emissions reductions. However, to achieve an emissions-free future, we believe that other technologies will be necessary, and we are particularly excited about the long-term potential of hydrogen.”

NextEra plans to test the electricity-to-hydrogen-to-electricity model at its natural gas-powered Okeechobee Clean Energy Center that came online in 2019. Okeechobee is already regarded as one of the cleanest thermal energy facilities anywhere on the globe. However, replacing natural gas with zero emissions hydrogen would be a significant step in helping the company achieve its goal to become 100% emissions-free by 2050.

Kujawa said the company plans to continue evaluating other potential hydrogen opportunities to accelerate the decarbonization of transportation fuel, amid the debate over the future of vehicles between electricity and hydrogen, and industrial feedstock and also support future demand for low-cost renewables.

Another critical milestone: NextEra finished the quarter with a renewables backlog of approximately 14,400 megawatts, its largest in its 20-year development history. To put that backlog into context, NextEra revealed that it is larger than the operating wind and solar portfolios of all but two companies in the world.

Hydrogen Bubble?
That said, not everybody is buying the hydrogen hype.

Barron’s Bill Apton says Wall Street has discovered hydrogen this year and that hydrogen stocks are a bubble, even as hybrid vehicles gain momentum in the U.S. market according to recent reports. Apton says the huge runup by Plug Power, Ballard Energy, and Bloom Energy has left them trading at more than 50x future cash flow, making it hard for them to grow into their steep valuations. He notes that smaller hydrogen companies are up against big players and deep-pocketed manufacturers, including government-backed rivals in China and the likes of Cummins.

According to Apton, it could take a decade or more before environmentally-friendly hydrogen can become competitive with natural gas on a cost-basis, while new ideas like flow battery cars also vie for attention, making hydrogen stocks better long-term picks than the cult stocks they have become.

 

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