Nuclear nations rush to lock in uranium deals

By Reuters


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A global shift toward nuclear power is prompting countries to rush to lock in long-term access to tight supplies of uranium, and China and India look to be the next players to get in on the action.

A tie-up between the Russian state-owned producer Rosatom, and Canadian-based miner Uranium One is just the latest in a series of moves on the part of Asian and European countries to lock in uranium supply to fuel construction of dozens of new reactors over the next decade.

"I think increasingly the supply of reactors is being tied to security of supply of nuclear fuel," said Divya Reddy, an energy analyst with the Eurasia Group in Washington.

Rosatom secured a 17 percent stake in Uranium One and a long-term supply deal in exchange for a half stake in the Karatau mine in Kazakhstan.

Uranium One is also trying to close a $270 million (US $240 million) 20 percent share sale and supply agreement with Japan's Toshiba Corp, Toyko Electric Power Co, and Japan Bank for international Cooperation, while uranium miner Denison Mines recently agreed to sell 20 percent of itself to Korea Electric Power Corp.

Reddy sees more activity from Russia as it strives to expand its influence in the nuclear industry, but said the most likely sources of demand in the longer run will come from Asia, including India, which last year signed a deal ending a three-decade ban on nuclear trade with the United States.

"There is definitely growth in demand from developing countries. China would be the biggest market, India probably next," she said.

China, with the most ambitious nuclear power expansion plans, has been in talks with top uranium miner Cameco about a potential supply deal, a company spokesman confirmed.

Australia is also mulling selling uranium from BHP Billiton's Olympic Dam mine to China, provided it is not used in Beijing's weapons program.

Led by China, India and Russia, more than 100 new reactors will be built over the next decade, Cameco estimates, all part of a global push to reduce dependence on greenhouse gas-producing power sources such as coal.

With new reactors expected to be larger on average than the 426 currently in operation, generating capacity would grow by 28 percent, the company says.

"Over 10 years, the demand for uranium will definitely continue to rise, and there will be a need for new mines and new solutions," said Mike Goldenberg, director of nuclear fuel markets at New York-based Evolution Markets.

Meanwhile, state-run Russian and Kazakh nuclear concerns have been busy signing deals with countries such as China and Japan to export nuclear industry and technology.

Traditionally a small industry with production dominated by Canada in recent years, the uranium sector has come alive of late as rising demand has driven prices up sharply from the $7 a pound they were trading at in 2000.

Spot uranium, which peaked at $136 a pound in 2007, was at $53 a pound on June 18.

Kazakhstan has leveraged its massive reserves into a rapidly expanding industry, while Australia is also ramping up production with several mines in the planning stage.

Uranium One CEO Jean Nortier said that Africa could emerge as the next hot spot for the mineral, where uranium is often found in copper and gold deposits.

Equinox Minerals, for instance, plans to build a uranium mill to process ore from its Lumwana copper mine in Zambia.

Increases in production will be necessary to keep afloat an industry that is already sharply in deficit.

Mined production last year fell short of consumption by about 60 million pounds, with the shortfall made up largely by recycled material and diluted enriched uranium from decommissioned nuclear weapons, sold by Russia under an agreement with Western producers that will end in 2013.

"The Chinese are already out actively sourcing (uranium), and most recently, because they've just recently been allowed back into the nuclear club, India has been courted by just about every nuclear technology supplier in the world," said George Topping, an analyst at Blackmont Capital in Toronto.

With mid-tier producers such as Uranium One and Denison already having taken on national partners, Topping expects uranium-hungry countries to seek supply deals with top producers such as Cameco BHP and Rio Tinto, and enter deals to finance smaller developers with viable projects.

"(Buying a stake) that's the first choice, but if you can't have that, then you can finance companies with advanced deposits," he said.

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Zapping elderly brains with electricity improves short-term memory — for almost an hour

Transcranial electrical stimulation synchronizes brain waves to bolster working memory, aligning neural oscillations across the prefrontal and temporal cortex. This noninvasive brain stimulation may counter cognitive aging by restoring network coupling and improving short-term recall.

 

Key Points

Transcranial electrical stimulation applies scalp currents to synchronize brain waves, briefly enhancing working memory.

✅ Synchronizes prefrontal-temporal networks to restore coupling

✅ Noninvasive tES/tACS protocols show rapid, reversible gains

✅ Effects lasted under an hour; durability remains to be tested

 

To read this sentence, you hold the words in your mind for a few seconds until you reach the period. As you do, neurons in your brain fire in coordinated bursts, generating electrical waves that let you hold information for as long as it is needed, much as novel devices can generate electricity from falling snow under specific conditions. But as we age, these brain waves start to get out of sync, causing short-term memory to falter. A new study finds that jolting specific brain areas with a periodic burst of electricity might reverse the deficit—temporarily, at least.

The work makes “a strong case” for the idea that out-of-sync brain waves in specific regions can drive cognitive aging, says Vincent Clark, a neuroscientist at the University of New Mexico in Albuquerque, who was not involved in the research. He adds that the brain stimulation approach in the study may result in a new electrical therapy for age-related deficits in working memory.

Working memory is “the sketchpad of the mind,” allowing us to hold information in our minds over a period of seconds. This short-term memory is critical to accomplishing everyday tasks such as planning and counting, says Robert Reinhart, a neuroscientist at Boston University who led the study. Scientists think that when we use this type of memory, millions of neurons in different brain areas communicate through coupled bursts of activity, a form of electrical conduction that coordinates timing across networks. “Cells that fire together, wire together,” Reinhart says.

But despite its critical role, working memory is a fragile cognitive resource that declines with age, Reinhart says. Previous studies had suggested that reduced working-memory performance in the elderly is linked to uncoupled activity in different brain areas. So Reinhart and his team set out to test whether recoupling brain waves in older adults could boost the brain’s ability to temporarily store information, a systems-level coordination challenge akin to efforts to use AI for energy savings on modern power grids.

To do so, the researchers used jolts of weak electrical current to synchronize waves in the prefrontal and temporal cortex—two brain areas critical for cognition, a targeted approach not unlike how grids use batteries to stabilize power during strain—and applied the current to the scalps of 42 healthy people in their 60s and 70s who showed no signs of decline in mental ability. Before their brains were zapped, participants looked at a series of images: an everyday object, followed briefly by a blank screen, and then either an identical or a modified version of the same object. The goal was to spot whether the two images were different.

Then the participants took the test again, while their brains were stimulated with a current. After about 25 minutes of applying electricity, participants were on average more accurate at identifying changes in the images than they were before the stimulation. Following stimulation, their performance in the test was indistinguishable from that of a group of 42 people in their 20s. And the waves in the prefrontal and temporal cortex, which had previously been out of sync in most of the participants, started to fire in sync, the researchers report today in Nature Neuroscience, a synchronization imperative reminiscent of safeguards that prevent power blackouts on threatened grids. No such effects occurred in a second group of older people who received jolts of current that didn’t synchronize waves in the prefrontal and temporal cortex.

By using bursts of current to knock brain waves out of sync, the researchers also modulated the brain chatter in healthy people in their 20s, making them slower and less accurate at spotting differences in the image test.

“This is a very nice and clear demonstration of how functional connections underlie memory in younger adults and how alterations … can lead to memory reductions in older adults,” says Cheryl Grady, a cognitive neuroscientist at the Rotman Research Institute at Baycrest in Toronto, Canada. It’s also the first time that transcranial stimulation has been shown to restore working memory in older people, says Michael O’Sullivan, a neuroscientist at the University of Queensland in Brisbane, Australia, though electricity in medicine extends far beyond neurostimulation.

But whether brain zapping could turbocharge the cognitive abilities of seniors or help improve the memories of people with diseases like Alzheimer’s is still unclear: In the study, the positive effects on working memory lasted for just under an hour—though Reinhart says that’s as far as they recorded in the experiment. The team didn’t see the improvements decline toward the end, so he suspects that the cognitive boost may last for longer. Still, researchers say much more work has to be done to better understand how the stimulation works.

Clark is optimistic. “No pill yet developed can produce these sorts of effects safely and reliably,” he says. “Helping people is the ultimate goal of all of our research, and it’s encouraging to see that progress is being made.”

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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Michigan utilities propose more than $20M in EV charging programs

Michigan EV time-of-use charging helps DTE Energy and Consumers Energy manage off-peak demand, expand smart charger rebates, and build DC fast charging infrastructure, lowering grid costs, emissions, and peak load impacts across Michigan's distribution networks.

 

Key Points

Michigan utility programs using time-based EV rates to shift charging off-peak and ease grid load via charger rebates.

✅ Off-peak rates cut peak load and distribution transformer stress.

✅ Rebates support home smart chargers and DC fast charging sites.

✅ DTE Energy and Consumers Energy invest to expand EV infrastructure.

 

The two largest utilities in the state of Michigan, DTE Energy and Consumers Energy, are looking at time-of-use charging rates in two proposed electric vehicle (EV) charging programs, aligned with broader EV charging infrastructure trends among utilities, worth a combined $20.5 million of investments.

DTE Energy last month proposed a $13 million electric vehicle (EV) charging program, which would include transformer upgrades/additions, service drops, labor and contractor costs, materials, hardware and new meters to provide time-of-use charging rates amid evolving charging control dynamics in the market. The Charging Forward program aims to address customer education and outreach, residential smart charger support and charging infrastructure enablement, DTE told regulators in its 1,100-page filing. The utility requested that rebates provided through the program be deferred as a regulatory asset.

Consumers Energy in 2017 withdrew a proposal to install 800 electric vehicle charging ports in its Michigan service territory after questions were raised over how to pay for the $15 million plan. According to Energy News Network, the utility has filed a modified proposal building on the former plan and conversations over the last year that calls for approximately half of the original investment.

Utilities across the country are viewing new demand from EVs as a potential boon to their systems, a shift accelerated by the Model 3's impact on utility planning, potentially allowing greater utilization and lower costs. But that will require the vehicles to be plugged in when other demand is low, to avoid the need for extensive upgrades and more expensive power purchases. Michigan utilities' proposal focuses on off-peak EV charging, as well as on developing new EV infrastructure.

While adoption has remained relatively low nationally, last year the Edison Electric Institute and the Institute for Electric Innovation forecast 7 million EVs on United States' roads by the end of 2025. But unless those EVs can be coordinated, state power grids could face increased stress, the National Renewable Energy Laboratory has said distribution transformers may need to be replaced more frequently and peak load could push system limits — even with just one or two EVs on a neighborhood circuit. 

In its application, DTE told regulators that electrification of transportation offers a range of benefits including "reduced operating costs for EV drivers and affordability benefits for utility customers."

"Most EV charging takes place overnight at home, effectively utilizing distribution and generation capacity in the system during a low load period," the utility said. "Therefore, increased EV adoption puts downward pressure on rates by spreading fixed costs over a greater volume of electric sales."

DTE added that other benefits include reduced carbon emissions, improved air quality, increased expenditures in local economies and reduced dependency on foreign oil for the public at large.

A previous proposal from Consumers Energy included 60 fast charging DC stations along major highways in the Lower Peninsula and 750 240-volt AC stations in metropolitan areas. Consumers' new plan will offer rebates for charger installation, as U.S. charging networks jostle for position amid federal electrification efforts, including residential and DC fast-charging stations.

 

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Is a Resurgence of Nuclear Energy Possible in Germany?

Germany Nuclear Phase-Out reflects a decisive energy policy shift, retiring reactors as firms shun new builds amid high costs, radioactive waste challenges, climate goals, insurance gaps, and debate over small modular reactors and subsidies.

 

Key Points

Germany's policy to end nuclear plants and block new builds, emphasizing safety, waste, climate goals, and viability.

✅ Driven by safety risks, waste storage limits, and insurance gaps

✅ High capital costs and subsidies make new reactors uneconomic

✅ Political debate persists; SMRs raise cost and proliferation concerns

 

A year has passed since Germany deactivated its last three nuclear power plants, marking a significant shift in its energy policy.

Nuclear fission once heralded as the future of energy in Germany during the 1960s, was initially embraced with minimal concern for the potential risks of nuclear accidents. As Heinz Smital from Greenpeace recalls, the early optimism was partly driven by national interest in nuclear weapon technology rather than energy companies' initiatives.

Jochen Flasbarth, State Secretary in the Ministry of Development, reflects on that era, noting Germany's strong, almost naive, belief in technology. Germany, particularly the Ruhr region, grappled with smog-filled skies at that time due to heavy industrialization and coal-fired power plants. Nuclear energy presented a "clean" alternative at the time.

This sentiment was also prevalent in East Germany, where the first commercial nuclear power plant came online in 1961. In total, 37 nuclear reactors were activated across Germany, reflecting a widespread confidence in nuclear technology.

However, the 1970s saw a shift in attitudes. Environmental activists protested the construction of new power plants, symbolizing a generational rift. The 1979 Three Mile Island incident in the US, followed by the catastrophic Chornobyl disaster in 1986, further eroded public trust in nuclear energy.

The Chornobyl accident, in particular, significantly dampened Germany's nuclear ambitions, according to Smital. Post-Chernobyl, plans for additional nuclear power plants in Germany, once numbering 60, drastically declined.

The emergence of the Green Party in 1980, rooted in anti-nuclear sentiment, and its subsequent rise to political prominence further influenced Germany's energy policy. The Greens, joining forces with the Social Democrats in 1998, initiated a move away from nuclear energy, facing opposition from the Christian Democrats (CDU) and Christian Social Union (CSU).

However, the Fukushima disaster in 2011 prompted a policy reversal from CDU and CSU under Chancellor Angela Merkel, leading to Germany's eventual nuclear phase-out in March 2023, after briefly extending nuclear power amid the energy crisis.

Recently, the CDU and CSU have revised their stance once more, signaling a potential U-turn on the nuclear phaseout, advocating for new nuclear reactors and the reactivation of the last shut-down plants, citing climate protection and rising fossil fuel costs. CDU leader Friedrich Merz has lamented the shutdown as a "black day for Germany." However, these suggestions have garnered little enthusiasm from German energy companies.

Steffi Lemke, the Federal Environment Minister, isn't surprised by the companies' reluctance, noting their longstanding opposition to nuclear power, which she argues would do little to solve the gas issue in Germany, due to its high-risk nature and the long-term challenge of radioactive waste management.

Globally, 412 reactors are operational across 32 countries, even as Europe is losing nuclear power during an energy crunch, with the total number remaining relatively stable over the years. While countries like China, France, and the UK plan new constructions, there's a growing interest in small, modern reactors, which Smital of Greenpeace views with skepticism, noting their potential military applications.

In Germany, the unresolved issue of nuclear waste storage looms large. With temporary storage facilities near power plants proving inadequate for long-term needs, the search for permanent sites faces resistance from local communities and poses financial and logistical challenges.

Environment Minister Lemke underscores the economic impracticality of nuclear energy in Germany, citing prohibitive costs and the necessity of substantial subsidies and insurance exemptions.

As things stand, the resurgence of nuclear power in Germany appears unlikely, with economic factors playing a decisive role in its future.

 

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Ford's Washington Meeting: Energy Tariffs and Trade Tensions with U.S

Ontario-U.S. Energy Tariff Dispute highlights cross-border trade tensions, retaliatory tariffs, export surcharges, and White House negotiations as Doug Ford meets U.S. officials to de-escalate pressure over steel, aluminum, and energy supplies.

 

Key Points

A trade standoff over energy exports and tariffs, sparked by Ontario's surcharge and U.S. duties on steel and aluminum.

✅ 25% Ontario energy surcharge paused before White House talks

✅ U.S. steel and aluminum tariffs reduced from 50% to 25%

✅ Potential energy supply cutoff remains leverage in negotiations

 

Ontario Premier Doug Ford's recent high-stakes diplomatic trip to Washington, D.C., underscores the delicate trade tensions between Canada and the United States, particularly concerning energy exports and Canada's electricity exports across the border. Ford's potential use of tariffs or even halting U.S. energy supplies, amid Ontario's energy independence considerations, remains a powerful leverage tool, one that could either de-escalate or intensify the ongoing trade conflict between the two neighboring nations.

The meeting in Washington follows a turbulent series of events that began with Ontario's imposition of a 25% surcharge on energy exports to the U.S. This move came in retaliation to what Ontario perceived as unfair treatment in trade agreements, a step that aligned with Canadian support for tariffs at the time. In response, U.S. President Donald Trump's administration threatened its own set of tariffs, specifically targeting Canadian steel and aluminum, which further escalated tensions. U.S. officials labeled Ford's threat to cut off U.S. electricity exports and energy supplies as "egregious and insulting," warning of significant economic retaliation.

However, shortly after these heated exchanges, Trump’s commerce secretary, Howard Lutnick, extended an invitation to Ford for a direct meeting at the White House. Ford described this gesture as an "olive branch," signaling a potential de-escalation of the dispute. In the lead-up to this diplomatic encounter, Ford agreed to pause the energy surcharge, allowing the meeting to proceed, amid concerns tariffs could spike NY energy prices, without further escalating the crisis. Trump's administration responded by lowering its proposed 50% tariff on Canadian steel and aluminum to a more manageable 25%.

The outcome of the meeting, which is set to address these critical issues, could have lasting implications for trade relations between Canada and the U.S. If Ford and Lutnick can reach an agreement, the potential for tariff imposition on energy exports, though experts advise against cutting Quebec's energy exports due to broader risks, could be resolved. However, if the talks fail, it is likely that both countries could face further retaliatory measures, compounding the economic strain on both sides.

As Canada and the U.S. continue to navigate these complex issues, where support for Canadian energy projects has risen, the outcome of Ford's meeting with Lutnick will be closely watched, as it could either defuse the tensions or set the stage for a prolonged trade battle.

 

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Global: Nuclear power: what the ‘green industrial revolution’ means for the next three waves of reactors

UK Nuclear Energy Ten Point Plan outlines support for large reactors, SMRs, and AMRs, funding Sizewell C, hydrogen production, and industrial heat to reach net zero, decarbonize transport and heating, and expand clean electricity capacity.

 

Key Points

A UK plan backing large, small, and advanced reactors to drive net zero via clean power, hydrogen, and industrial heat.

✅ Funds large plants (e.g., Sizewell C) under value-for-money models

✅ Invests in SMRs for factory-built, modular, lower-cost deployment

✅ Backs AMRs for high-temperature heat, hydrogen, and industry

 

The UK government has just announced its “Ten Point Plan for a Green Industrial Revolution”, in which it lays out a vision for the future of energy, transport and nature in the UK. As researchers into nuclear energy, my colleagues and I were pleased to see the plan is rather favourable to new nuclear power.

It follows the advice from the UK’s Nuclear Innovation and Research Advisory Board, pledging to pursue large power plants based on current technology, and following that up with financial support for two further waves of reactor technology (“small” and “advanced” modular reactors).

This support is an important part of the plan to reach net-zero emissions by 2050, as in the years to come nuclear power will be crucial to decarbonising not just the electricity supply but the whole of society.

This chart helps illustrate the extent of the challenge faced:

Electricity generation is only responsible for a small percentage of UK emissions. William Bodel. Data: UK Climate Change Committee

Efforts to reduce emissions have so far only partially decarbonised the electricity generation sector. Reaching net zero will require immense effort to also decarbonise heating, transport, as well as shipping and aviation. The plan proposes investment in hydrogen production and electric vehicles to address these three areas – which will require, as advocates of nuclear beyond electricity argue, a lot more energy generation.

Nuclear is well-placed to provide a proportion of this energy. Reaching net zero will be a huge challenge, and industry leaders warn it may be unachievable without nuclear energy. So here’s what the announcement means for the three “waves” of nuclear power.

Who will pay for it?
But first a word on financing. To understand the strategy, it is important to realise that the reason there has been so little new activity in the UK’s nuclear sector since the 1990s is due to difficulty in financing. Nuclear plants are cheap to fuel and operate and last for a long time. In theory, this offsets the enormous upfront capital cost, and results in competitively priced electricity overall.

But ever since the electricity sector was privatised, governments have been averse to spending public money on power plants. This, combined with resulting higher borrowing costs and cheaper alternatives (gas power), has meant that in practice nuclear has been sidelined for two decades. While climate change offers an opportunity for a revival, these financial concerns remain.

Large nuclear
Hinkley Point C is a large nuclear station currently under construction in Somerset, England. The project is well-advanced, with its first reactor installed and due to come online in the middle of this decade. While the plant will provide around 7% of current UK electricity demand, its agreed electricity price is relatively expensive.

Under construction: Hinkley Point C. Ben Birchall/PA

The government’s new plan states: “We are pursuing large-scale new nuclear projects, subject to value-for-money.” This is likely a reference to the proposed Sizewell C in Suffolk, on which a final decision is expected soon. Sizewell C would be a copy of the Hinkley plant – building follow-up identical reactors achieves capital cost reductions, and setbacks at Hinkley Point C have sharpened delivery focus as an alternative funding model will likely be implemented to reduce financing costs.

Other potential nuclear sites such as Wylfa and Moorside (shelved in 2018 and 2019 respectively for financial reasons) are also not mentioned, their futures presumably also covered by the “subject to value-for-money” clause.

Small nuclear
The next generation of nuclear technology, with various designs under development worldwide are smaller, cheaper, safer Small Modular Reactors (SMRs), such as the Rolls Royce “UK SMR”.

Reactors small enough to be manufactured in factories and delivered as modules can be assembled on site in much shorter times than larger designs, which in contrast are constructed mostly on site. In so doing, the capital costs per unit (and therefore borrowing costs) could be significantly lower than current new-builds.

The plan states “up to £215 million” will be made available for SMRs, Phase 2 of which will begin next year, with anticipated delivery of units around a decade from now.

Advanced nuclear
The third proposed wave of nuclear will be the Advanced Modular Reactors (AMRs). These are truly innovative technologies, with a wide range of benefits over present designs and, like the small reactors, they are modular to keep prices down.

Crucially, advanced reactors operate at much higher temperatures – some promise in excess of 750°C compared to around 300°C in current reactors. This is important as that heat can be used in industrial processes which require high temperatures, such as ceramics, which they currently get through electrical heating or by directly burning fossil fuels. If those ceramics factories could instead use heat from AMRs placed nearby, it would reduce CO₂ emissions from industry (see chart above).

High temperatures can also be used to generate hydrogen, which the government’s plan recognises has the potential to replace natural gas in heating and eventually also in pioneering zero-emission vehicles, ships and aircraft. Most hydrogen is produced from natural gas, with the downside of generating CO₂ in the process. A carbon-free alternative involves splitting water using electricity (electrolysis), though this is rather inefficient. More efficient methods which require high temperatures are yet to achieve commercialisation, however if realised, this would make high temperature nuclear particularly useful.

The government is committing “up to £170 million” for AMR research, and specifies a target for a demonstrator plant by the early 2030s. The most promising candidate is likely a High Temperature Gas-cooled Reactor which is possible, if ambitious, over this timescale. The Chinese currently lead the way with this technology, and their version of this reactor concept is expected soon.

In summary, the plan is welcome news for the nuclear sector, even as Europe loses nuclear capacity across the continent. While it lacks some specifics, these may be detailed in the government’s upcoming Energy White Paper. The advice to government has been acknowledged, and the sums of money mentioned throughout are significant enough to really get started on the necessary research and development.

Achieving net zero is a vast undertaking, and recognising that nuclear can make a substantial contribution if properly supported is an important step towards hitting that target.

 

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