The West goes nuclear.
A Invoice Gates-backed developer and one of many largest utilities within the Western United States introduced Thursday they had been launching a research to find out if as much as 5 coal crops might be geared up with superior nuclear reactors.
The transfer additional cemented the connection between TerraPower, a nuclear developer, and PacifiCorp, a six-state utility headquartered in Portland, Ore. The pair agreed final yr to construct a 345-megawatt Natrium nuclear reactor on the web site of a retiring coal plant in western Wyoming.
The deal indicators the emergence of a brand new vitality transition technique within the West, the place PacifiCorp has needed to steadiness the local weather targets of its prospects in Washington and Oregon with the needs of its Wyoming customers, who wish to maintain the corporate’s coal crops open of their state. Nuclear energy brings with it the prospect of jobs and zero-carbon electrical energy, doubtlessly assembly the local weather targets of political leaders and ratepayers in Washington and Oregon.
But the brand new concentrate on nuclear vitality additionally comes with dangers. The primary reactor on the Naughton Energy Plant in Kemmerer, Wyo., the place the 2 firms hope to show {that a} coal-to-nuclear conversion is viable, has but to have its design accredited by the Nuclear Regulatory Fee and is projected to price $4 billion. It’s unclear how a lot of these prices can be borne by ratepayers.
“PacifiCorp has a troublesome problem not simply technically, however politically with a various set of stakeholders,” mentioned Robert Godby, a professor who tracks vitality markets on the College of Wyoming.
Nuclear had lengthy been anathema for a lot of in Wyoming, the nation’s high coal-producing state. However that has begun to vary lately, as coal crops throughout the nation have closed and PacifiCorp started to think about retiring its fleet of 4 coal crops within the state.
The plan to transform the Kemmerer plant right into a sodium-cooled Natrium reactor has been embraced by Wyoming Gov. Mark Gordon, a Republican.
“I believe lots of people in Wyoming are open to contemplating nuclear’s advantages and prices and seeing if it pencils out,” Godby mentioned.
Thursday’s announcement is a part of a broader effort to scale up TerraPower’s know-how. The corporate’s first undertaking is anticipated to start working in 2028. And superior planning is required to convey extra tasks on-line afterwards, mentioned TerraPower president and CEO Chris Levesque.
These future tasks might assist set up the availability chain wanted to construct extra reactors. That vitality is required desperately as coal crops shutter throughout the nation and to enrich the build-out of renewables, he mentioned.
“We do must shortly not simply show the know-how however ramp it as much as make the kind of world impression that the TerraPower [company] was based by Invoice to realize,” Levesque mentioned, referring to Gates.
Changing coal crops into nuclear vitality enterprises is en vogue. A latest Division of Power research discovered that siting superior reactors at outdated coal websites can lower prices by making the most of current transmission and interconnection infrastructure (Energywire, Sept. 14).
Nuclear additionally has the potential to offer two issues that renewables can not: energy that may be dispatched at any time and an abundance of jobs. Wind and photo voltaic services usually make use of solely a handful of individuals as soon as they’re absolutely constructed. TerraPower estimates its facility would require a workforce of 250 individuals.
Ryan McGraw, vice chairman of undertaking growth at Rocky Mountain Energy, a PacifiCorp subsidiary, mentioned the benefits of a Natrium reactor embrace “dependable emissions-free era that’s versatile and incorporates an necessary vitality storage know-how.”
The research introduced Thursday will consider if extra fossil gasoline crops operated by the utility might host a Natrium reactor. The businesses mentioned they might interact with native communities earlier than any web site is chosen.
“Whereas there are a variety of hurdles to beat previous to commercialization of any new know-how, this joint research with TerraPower will assist us to know these challenges and body a path ahead with one of the best curiosity of our prospects in thoughts,” McGraw wrote in an electronic mail.
‘It’s loopy’
TerraPower’s know-how is exclusive in that the plant features as an influence generator and a battery. The molten salt used to chill the plant could be saved in large tanks after which launched, creating warmth that may flip a turbine. That permits the ability to ramp up energy to 500 megawatts for a number of hours, serving to offset decreases in wind and photo voltaic output.
DOE awarded the corporate practically $2 billion for its first reactor. The corporate has additionally been attracting buyers; it raised $750 million in an fairness fundraiser earlier this yr (Energywire, Aug. 16).
But there are unanswered questions in regards to the prices on prospects. TerraPower has mentioned it could bear growth prices, together with any potential overruns. And PacifiCorp has mentioned it could solely choose the plant if modeling outcomes from long-term planning eventualities present that it’s warranted. Levesque mentioned the corporate’s hope is that future reactors will price round $1 billion.
Nonetheless, some client advocates are cautious. They declare the businesses haven’t offered particular undertaking prices or mentioned if prospects can be on the hook to pay them. The businesses’ aggressive timeline has additionally been a trigger for concern. TerraPower plans to file its software for its reactor design with the Nuclear Regulatory Fee in 2023, start development on generators and different nonnuclear development in 2024 and begin producing electrical energy in 2028.
“It’s extraordinarily dangerous. It’s loopy, in reality,” mentioned Bob Jenks, govt director of the Oregon Residents’ Utility Board, a client advocacy group. “That is an unproven know-how. It hasn’t been licensed from the NRC. It doesn’t know the place it’s going to get its gasoline from.”
The corporate had hoped to initially import uranium from Russia however ditched that plan after the Russian invasion of Ukraine earlier this yr.
Superior nuclear know-how like a Natrium reactor could finally be wanted to enrich renewables and supply energy for the carbon-free grid of the long run, Jenks mentioned. However PacifiCorp has numerous work to do to show TerraPower’s resolution is best than different alternate options, comparable to batteries or hydrogen.
The utility additionally hasn’t spelled out the way it intends to guard customers within the occasion of price overruns, a frequent pitfall for nuclear tasks. Each firms, Jenks famous, are owned by billionaires. TerraPower was based by Gates, and PacifiCorp is owned by Warren Buffett’s Berkshire Hathaway Inc.
“Warren Buffet’s PacifiCorp desires to place as a lot threat as potential on prospects as potential. I do know Warren Buffet isn’t going to take the chance, perhaps Invoice Gates is,” Jenks mentioned. “They’ve numerous work to do earlier than they persuade me, and I can be arguing to Oregon regulators don’t approve this till you know the way a lot threat Oregon prospects are being subjected to.”
Oregon accounts for roughly 1 / 4 of PacifiCorp’s vitality gross sales.
Reprinted from E&E News with permission from POLITICO, LLC. Copyright 2022. E&E Information supplies important information for vitality and surroundings professionals.
