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How US Creates Safety Risks for Nuclear Power Plants in Europe

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© Wikipedia/ Maxim Gavrilyuk
Sputnik – 21.05.2016

Washington is promoting commercial interests of the energy corporation Westinghouse in Europe, creating risks for European nuclear power plants, an article in Forbes read.

For example, in 2015, two of the Westinghouse-made fuel assemblies at the South Ukraine nuclear power plant (NPP) were found to be leaking. Since 2015, the NPP has been using US-made fuel.

In 2014, Ukraine and Westinghouse reached an agreement to supply nuclear fuel to some Ukrainian NPPs. The alleged reason behind the contract was the need to help Ukraine become energetically independent from Russia. Russia was a long-time supplier of nuclear fuel to Ukraine.

Experts have repeatedly warned that the deal would create serious risks for the safety of Ukrainian NPPs.

They cited the example of an incident which took place several years ago at the Temelin nuclear power plant, in the Czech Republic. The NPP operated on Russian-designed reactors and used fuel supplied by Westinghouse. The fuel was leaking and the rods were bending. All the Westinghouse fuel was removed from the core and replaced with Russian-made fuel.

As for Ukraine, the company announced that its fuel for Ukrainian NPPs had been improved.

Despite experts’ warnings, in March 2015, the first 42 fuel assemblies made by Westinghouse were loaded to the third reactor unit at the South Ukraine NPP.

According to Forbes, the two Westinghouse-made assemblies were found leaking during a scheduled outage at the third unit of the NPP.

The author of the article, Forbes contributor Kenneth Rapoza described how Washington has promoted Westinghouse’s interest in Eastern Europe, neglecting safety recommendations.

“Westinghouse is more than a brand name American power company. It’s a battering ram used by Washington to promote energy security,” the author wrote.

A source who wished to remain anonymous told Forbes that Westinghouse wants a market share in Eastern Europe in a bid to prevent the company from insolvency.

“Their new reactor division is loss-making, the fuel division is their only cash cow and it is not growing and existing margins are getting slimmer and slimmer. We think Westinghouse has spent millions of dollars to include nuclear fuel as part of the energy security narrative, and the current EU sentiment against Russia play into their hand,” the source said.

“But derailing nuclear projects while running into technical difficulties with Westinghouse fuel assemblies in Rosatom reactors is a dangerous way to promote energy security,” Rapoza noted.

According to former Czech Prime Minister Jiri Paroubek, the US has been promoting Westinghouse for years.

In the 1990s, US diplomats supported contribution between the Czech Republic and Westinghouse. The company pledged to improve Russian-designed nuclear plants to Western standards.

“However, the opposite proved to be true. Fuel assemblies delivered by Westinghouse were of inferior quality and higher price compared with than Russian fuel and caused frequent outages of Temelin reactors,” Paroubek told Forbes.

After, Westinghouse’s fuel assemblies were found leaking in the 2000s the Czech company CEZ decided to return to Russian-made nuclear fuel for the Temelin NPP.

“CEZ’s decision serves as a testament to the fact that the Russian fuel assembly was safer and that Washington was selling a product that did not quite work at the time, potentially putting nuclear power plants in danger,” the article read.

US presidential hopeful Hillary Clinton was also involved in promoting Westinghouse in Eastern Europe. In 2012 when she served as US State Secretary Clinton met with then Czech Prime Minister Petr Necas, using the energy security argument to promote the company.

According to the article, Westinghouse can produce fuel for Russia-designed reactors as well as Rosatom can build fuel assemblies for Western-designed power units. However, for third parties working with Westinghouse is less economically efficient.

“Russia is the cheaper producer of the two, so when countries turn to Westinghouse for the fuel assemblies, they have to pay a premium for diversification,” Rapoza wrote.

Nevertheless, the largest initiative by Westinghouse is squeezing Russia from the Ukrainian nuclear fuel market, using again the argument of diversifying supplies.

In 2012, the Ukrainian nuclear regulator banned the use of Westinghouse’s fuel assemblies in the country pending an investigation over the incident at the South Ukraine NPP.

“Two years later, then-Prime Minister, Arseniy Yatsenyuk consulted Westinghouse on picking a new nuclear safety regulator for his new government,” the author wrote citing a source in Ukraine.

In April, the Ukrainian Energy Ministry announced it would buy more nuclear fuel from Westinghouse. The company is planning to deliver five reloads of fuel to South Ukraine and Zaporizhia NPPs.

According to the author, Westinghouse’s commercial interests are closely tied to politics and thus the company neglects safety.

“Regardless, anti-Russia politics trumps technological problems,” Rapoza concluded.

May 21, 2016 Posted by | Corruption, Economics, Environmentalism, Nuclear Power | , , , , , | Leave a comment

Ukraine to boost nuclear energy production despite ageing reactors

RT | March 30, 2016

Australia and Ukraine are about to agree delivery of uranium for Ukrainian nuclear power plants, according to Australia’s Foreign Minister Julie Bishop. But experts question the safety of Ukraine’s plans to increase nuclear energy production.

The contract will be signed before the Nuclear Security Summit in Washington. “Ahead of the Summit I will sign a cooperation agreement to supply uranium to Ukraine for use in power generation. This complements similar agreements Australia has with countries including Canada, China, France, India, Japan, ROK, Russia, the UK and the USA,” Bishop said in a statement.

Ukrainian President Petro Poroshenko has said Kiev is going to increase the share nuclear has in the country’s energy sector.

“Just a year ago, nuclear power accounted for 48 percent and was steadily falling. In less than a year we have increased it to 56 percent,” he said in January.

Ukraine is heavily dependent on nuclear energy, with 15 reactors generating more than half of its electricity. Kiev gets most of its nuclear services and nuclear fuel from Russia.

Germany’s Environment Minister Barbara Hendricks has warned Ukraine against expanding nuclear energy, saying it should understand the dangers. Germany is planning to shut down its last nuclear plant by 2022.

According to Ukrainian energy expert Aleksey Pasyuk, the planned service life of the majority of the nuclear power plants in Ukraine is over, but they are still being used. Some of them are running experimental fuel in reactors, he said. Pasyuk added that such experiments could lead to a catastrophe.

“Rather than focus on projects that could produce alternative types of generation, the government has plans to invest in costly projects to support the operation of nuclear power units on the verge of operational capabilities,” Pasyuk told Korrespondent.net.

“Their operation is already an experiment. Furthermore, the South Ukrainian nuclear power plant is using Westinghouse fuel. So many experiments at the same time is too much,” said the expert.

Ukraine’s 1986 Chernobyl meltdown was one of the worst nuclear power plant disasters of all time. More than 300,000 people were evacuated from the town of Pripyat near to the Chernobyl Nuclear Power Plant because of nuclear contamination.

March 30, 2016 Posted by | Environmentalism, Nuclear Power | , | Leave a comment

Kerry to Bulgaria: End energy dependence on Russia

Press TV – January 15, 2015

US Secretary of State John Kerry has called on Bulgaria to end its dependence on Russia for energy.

Kerry made the remarks on Thursday in meetings with Bulgaria’s president, prime minister and foreign minister in the capital Sofia.

Bulgaria must move toward “diversifying supplies and distribution and increasing connectivity with neighbors,” Kerry told a news conference with Bulgarian Prime Minister Boyko Borisov.

He said Washington is interested in helping the country take “practical steps to enhance energy security in Bulgaria and across Europe.”

Kerry also talked about the possible construction of a natural gas pipeline from Greece and moving ahead with a stalled contract with Westinghouse Electric Co. to build a nuclear power plant.

“We hope very much that the issues that (the government and Westinghouse) are discussing can be quickly resolved,” Kerry said.

Kerry, however, stressed that the US push is not aimed at Russia.

“That is not directed against any one country,” Kerry said. “It is simply a reality. No country in the world should be totally dependent for its energy supply on one other country. We need diversified supplies across the world.”

He said the US will send its special energy envoy to Sofia to look into how the US Export-Import Bank could finance the country.

Bulgaria relies on Russia for 85 percent of its gas and 100 percent of its nuclear power.

On security issues, Kerry said the US is determined in its commitment to defend NATO member Bulgaria if it is attacked.

The US would increase joint military exercises with Bulgaria and also help the country modernize its defenses, Kerry said.

January 15, 2015 Posted by | Economics, Nuclear Power | , , , | 1 Comment

Westinghouse moves forward with nuclear scheme in Bulgaria

World Nuclear News | August 1, 2014

Westinghouse plans to hold a competitive tender “within the next year” for construction of a seventh reactor at the Kozloduy nuclear power plant in Bulgaria. The AP1000 reactor is projected to be online by 2023.

The site is already home to two operating Russian-designed VVER-1000 pressurised water reactors, Kozloduy 5 and 6, as well as four shut-down VVER-440s.

Westinghouse, part of Japan’s Toshiba group, announced the target date following its signing today of a shareholder agreement for the Kozloduy nuclear power plant expansion project. A source close to the talks in Sofia told World Nuclear News the agreement decides the ownership of project company Kozloduy NPP – New Builds plc, of which Kozloduy NPP plc and Westinghouse will own, respectively, 70% and 30%.

The agreement followed consultations with all of Bulgaria’s political parties, Westinghouse said in a statement. This and subsequent agreements for the project will be subject to future government oversight, it said. Bulgaria will have an interim government for two months, following the resignation of prime minister Plamen Oresharski’s government last week and a snap election in October.

The agreement also formalizes the selection of an AP1000 design reactor by Bulgarian Energy Holding EAD (BEH EAD), Kozloduy NPP plc and Kozloduy NPP – New Build plc. These parties entered into exclusive talks with Westinghouse in December 2013, following a feasibility study conducted under a competitive tender. Westinghouse will provide all of the plant equipment, design, engineering and fuel for the new unit.

A tender for the plant’s construction will follow European Union and Bulgarian public procurement rules, Westinghouse said. This process is expected to involve Bulgarian and global construction companies.

Bulgaria’s council of ministers approved an economy and energy ministry report on the shareholder agreement on 30 July, BEH EAD said yesterday. The agreement – including the financing terms of an engineering, procurement and construction (EPC) contract for the project – will enter into force after approval by the next government, it said.

No guarantee

Today’s agreement does not in itself mean that Kozloduy 7 will be built, however.

“Any future build will be dependent on future agreements such as an EPC. It will also require mutual agreement on financing terms and conditions,” Westinghouse spokesman Hans Korteweg told World Nuclear News.

“This agreement does not identify any specific assumptions on state support of any kind. It allows both Westinghouse and Kozloduy to engage international finance entities to determine best conditions for both parties. If this is not realized, the project will not go forward,” Korteweg said.

“This agreement in no way creates a binding decision to proceed – by either party. What it does do is to provide a basis for the project to go forward through a working partnership in reaching the next key agreements and obtaining attractive financing,” he said.

Some commentators in Bulgaria have said discussion about the project had lacked transparency, but Korteweg said this assertion was false.

“The process is similar to those conducted in France and the UK, for instance, where a partner and a technology are selected from current viable alternatives,” he said. “Specifically, there are only three PWR reactor designs certified in Europe – AP1000, EPR and MIR.1200. The Westinghouse AP1000 meets the criteria of diversified technology from existing reactors and 1200 MW maximum in size due to Bulgarian grid limitations,” he said.

Prior to today’s announcement, Kozloduy NPP and Westinghouse were bound by confidentiality common in all industries before release of the parameters of an agreement, he said.

Bulgarian owner

Although he would not confirm the share ownership of the project company, Korteweg said Westinghouse will not remain an equity investor once the reactor has been completed.

“We believe this is a national asset for Bulgaria and do not wish to dictate or otherwise influence the decision-making of its owners and operators. Bulgaria will have 100% of the revenue and profits of this plant,” Korteweg said. “Westinghouse’s stake in the project company during construction incentivizes Westinghouse to build a plant that meets international and Bulgarian safety standards, on schedule and within budget,” he said.

Bulgaria has an oversupply of electricity, but supply will fall in the mid-2020s with changes in the country’s energy mix, including fossil fuel plant closures due to CO2 emission reduction requirements and relative competitiveness of renewable energy, he said.

Additional nuclear power capacity during this timeframe “can certainly be utilized domestically and in export growth,” he said. Kozloduy 7 also represents the “smooth and eventual” replacement of units 5 and 6 in the next 20-30 years, especially after units 1-4 were shut down as part of Bulgaria’s accession to the EU in 2007, he said.

Asked if there will be a guaranteed power price for the reactor once it comes online, Korteweg said today’s agreement does not mention this.

“While many EU countries will be utilizing this tool, such as the UK, this is the decision of the Bulgarian government and its energy regulator to decide. The most important point is that the project produces power at the most competitive price compared to alternatives. This is something we are confident will be achieved,” he said.

Korteweg would not comment on the cost to build Kozloduy 7, but said Westinghouse has “offered a commercially attractive price to Bulgaria to provide diverse energy security without greenhouse gas generation.”

The company has “full confidence” that the conditions of this and future agreements for the project will meet EU rules, he said.
Energy diversification

Korteweg referred to the European Commission’s publication in May of a Communication outlining its recommendations for the establishment of a European Energy Security Strategy.

“Central to that strategy is the urgent need for the EU to increase its indigenous energy production, reduce its dependence upon external suppliers, and encourage diversity in the energy mix in order to meet its energy needs,” he said.

A European Council decision in late June to diversify energy supplies from Russia is also consistent with the Kozloduy 7 project, he said, as currently Russian companies have a monopoly supply of fuel to the plant.

“Westinghouse is not an integrated vendor and must therefore contract with local suppliers,” Korteweg said. “A significant amount of the project will be done in Bulgaria and is expected to significantly boost local, regional and national Bulgarian economies. Bulgarian companies are currently heavily involved with other contracts that Westinghouse has with units 5 and 6,” he said.

At the height of construction of the new unit, close to 3500 local workers will be employed on site, with an additional 15,000 workers involved in the associated supply chain, he said. Regional unemployment around the construction site could be reduced to 9% from the current rate of 13%, he said. Once the reactor is completed, its operation will require between 500 and 800 highly-skilled specialists, he said.

Westinghouse is also prepared to integrate Bulgarian companies into other ongoing and prospective projects, such as in the UK, he said.

Westinghouse recently announced an agreement to supply three Westinghouse AP1000 nuclear reactors to the NuGeneration Limited’s Moorside project in West Cumbria, England, in partnership with Toshiba and GDF Suez.

August 3, 2014 Posted by | Economics, Nuclear Power | , , , , | Leave a comment