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SAFE ENERGY E-JOURNAL  No 20    
May/June 2001
  
Compiled by Pete Roche
Pete.Roche@uk.greenpeace.org

Please note that the web site address has changed to http://www.kare-uk.org


CONTENTS INDEX

1
Editorial – MOX Battle Goes On.
6
Waste Transports to Sellafield
Survey of SMP Consultation Submissions
7
US MOX
3
Phoenix news
8
Nuclear Waste News
4
Proliferation
9
Dounreay News
5
Health News

 

1. Editorial – MOX Battle Goes On.

 

The UK Government has extended the deadline for responses to its 4th public consultation exercise on the Sellafield MOX Plant by a week to 30th May, because of postal strikes in some areas. So if you haven’t sent in a response yet, please send a quick e-mail to

 

Claire Herdman
Radioactive Substances Division
Department of the Environment, Transport and the Regions
4/F6 Ashdown House
123 Victoria Street
London SW1E 6DE
fax: 020 7944 6340
e-mail: mox_consultation@detr.gsi.gov.uk
You can see the consultation documents at:-

 http://www.environment.detr.gov.uk/consult/mox/sellafield/index.htm

 

The Barrow Evening News and Star (26th May 2001) reported that DETR has been flooded with a massive 1,500 responses to the consultation. Officials have been astonished by the scale of the reaction to the latest public debate on whether the moth-balled plant should be given the go-ahead to start operating. The third consultation only received 400 responses. The massive postbag makes it unlikely that the long-awaited decision on MOX will be announced before July or August at the earliest. BNFL said it needs a decision by July or it risks losing contracts.

 

A ministry spokeswoman said an explosion in the use of e-mail helped explain why the final round of public consultation had sparked so many more responses. But we shouldn’t get too excited, the extra responses have probably come from BNFL Sellafield workers. Two years ago, 95 per cent of people said ''No to MOX'' after groups such as Greenpeace successfully mobilised supporters to write in. This time, BNFL workers and local businesses have copied the tactic to even up the pressure exerted by the Greens. The ministry spokeswoman said: "More than half the responses have arrived by e-mail, the vast majority from two campaigns, for and against.

"There could be a lot more responses in the post because if past consultations are any guide, lots of people leave it to the last minute. How quickly we make an announcement will depend on the new government and the new ministers. We haven't got a date at the moment."

 

A report by independent consultants, Arthur D. Little (ADL) on the economic case for MOX will not be handed to ministers until early in June. 

 

Meanwhile Friends of the Earth has filed a High Court action against the Government over BNFL's plan to start operations at the MOX plant.

 
Friends of the Earth believes that the Deputy Prime Minister and the Secretary of State for Health have acted unlawfully, by deliberately restricting the scope of the final public consultation exercise. FOE lodged papers at the High Court on 24th May, applying for a Judicial Review over Government decisions to:-

(1) skew the economic 'benefits' of the scheme by disregarding the £482 million of taxpayers money spent so far, mostly on constructing the plant;
(2) withhold from the public the ADL report until after it is too late to comment.


Mark Johnston, Nuclear Campaigner at Friends of the Earth said:

"We are asking the courts to ensure that Ministers act lawfully and responsibly in their approach to the long-term management of plutonium. The fact that Government is the sole owner of the company does not permit it to disregard the law in order to allow BNFL to start making MOX.The growing stockpile of separated plutonium is a worldwide
embarrassment for the nuclear industry. It only exists because of the continuing yet unnecessary reprocessing of spent nuclear fuel. The 'MOX option' for plutonium is both expensive and misguided”.

Peter Roderick, Legal Adviser at Friends of the Earth said:

"Radiological protection law is intended to protect the environment and public health. New facilities can only be permitted if the economic benefits outweigh detriments. This balancing judgement must include all relevant costs, including the cost of constructing the plant. It is quite wrong for Ministers to ignore construction costs and skew the analysis. It is also unfair and unjust to deny interested parties access to the critical information on which Ministers will take their decision."

A spokesman for the DETR told PA News: ``We don't agree with the basis of this litigation. We believe it to be premature and misguided and we will oppose it.''


The legal challenge is supported by Greenpeace.

The Department of Environment, Transport and the Regions (DETR) commissioned Arthur D Little Consultants (ADL) to undertake an independent evaluation of the economic case for SMP in April. Their work has run in parallel with the eight-week public consultation exercise. Ministers have said they will not be subjecting the ADL report to public scrutiny before they take their decision on SMP. This is despite already
having set a precedent by releasing earlier economic reports (by PA Consulting) in 1998 and 1999. FOE maintains that DETR is acting unlawfully by preventing interested parties from commenting on the ADL analysis prior to Ministers taking a decision.

According to the Cabinet Guidelines, the consultation period should be 12 weeks not 8, and 12 weeks is a minimum period. There have to be powerful reasons to derogate such as genuine urgency. Beyond saying “we’ve consulted before” there is no reason given why it is ‘necessary’, ‘unavoidable’ or ‘really urgent’ to limit the consultation period. 

 

The March 2001 consultation paper says the consultants to the DETR will report to the Government two weeks after the public consultation process has closed. There appears to be no reason why consultees should not get to comment on the ADL report, other than a perceived need to speed up the process. There is no question of confidentiality. ADL will publish their report excluding commercially sensitive information, so the public will be able to see it, but beyond the opportunity to comment. In previous consultations, consultants’ reports were released at the start of the public consultation period. ADL’s report is clearly very important to the decision making process, consequently consultees ought to be given an opportunity to comment on it.

 

ADL has been given an unduly narrow scope in its remit. Economics is centrally important and hotly controversial. However, the Government has directed ADL to make the same assumptions as the economic case, which ADL is being asked to appraise. ADL has no scope to say whether or not it agrees with the assumptions being made. The case being made by many objectors is that the wrong assumptions are being made.

 

ADL is being asked to determine “whether MOX manufacture is justified by its economic, social or other benefits in relation to the health detriment it may cause”. No mention is made of the wider detriments discussed in the Environment Agency’s 1998 Memorandum.

 

ADL has also been directed to ignore the issue of sunk costs. In its document "The economic and commercial justification for THORP(1993)", BNFL provided profit projections for THORP that included the need to cover capital costs for both THORP and associated plant, and also evidence of contracts and associated payments to cover these capital costs. No such profit projections have been provided to consultees to date for the
SMP and DETR is wrong to exclude them from ADL's remit.

 

The urgent need for a quick decision on SMP, seems to be something made up by BNFL’s ‘spin unit’. BNFL Chief Executive, Norman Askew warned the Financial Times that BNFL’s Swiss customers would have to buy Mox from a foreign competitor unless approval to start production at the plant was granted in the next three months (“BNFL pressures government over Sellafield review”, by Matthew Jones, Financial Times March 28 2001)

 

A Swiss Sunday newspaper reported that BNFL is using orders from its Swiss customers to pressurise the UK authorities to authorise SMP. It accuses BNFL of giving the wrong impression that Swiss utilities need to get their MOX fuel very quickly. HSK (the Swiss Nuclear regulator) is reported to be unaware of any need for urgency (“Sellafield wirbt mit Schweizer Kunden”, by Hubert Mooser, SonnstagZeitung 29th April 01).

 

The tiny Swiss contracts should not be used as an excuse for rushing a decision, which, if taken now, would be a gamble that the market situation for MOX might improve in Japan.

 

Job losses are also routinely exaggerated if the plant is not opened, and take no account of alternative jobs, for example in immobilising existing separated plutonium. BNFL's original application claimed only 200 jobs at peak and 100 routine jobs in operating the SMP. Recent Press Coverage talks of 600 job losses if the plant remains closed.


Another product of the
BNFL ‘spin unit’ was the description of agreements with Swedish and German utilities as “contracts”, and the claim that this now means that SMP can “break even”. (BNFL Press Release of 8th May 2001). To add together agreements with a Swedish reactor that does not have a license to use MOX fuel to a “Heads of Agreement” with German utility, E.ON - based in a country where the government is pushing in international fora for plutonium immobilization - is clearly an attempt to bounce the UK Government into a decision to authorize SMP as soon as possible.

 

The Swedish company OKG AB announced at the beginning of May that it had reached agreement to convert 900 kg of plutonium owned by the company into MOX fuel at the Selalfield MOX Plant, for subsequent import into Sweden and use at the Oskarshamn power reactors.

 

This announcement was both premature and overoptimistic. OKG does not have the necessary government permission to import or use MOX fuel in its reactors.  Since the use of MOX fuel in power reactors is contrary to Swedish government policy, it is far from clear whether such permission will ever be granted. The announcement was nothing more than wishful thinking and an attempt to unfairly influence the SMP public consultation process.

 

The then Environment minister, Anna Lindh, in reply to a parliamentary question in1997/98 [1098] regarding MOX fuel said:-

"… the government's position [is] that MOX fuel in principle shall not be used in Swedish reactors."

Sweden continues to look for alternatives to MOX according to the country’s environment minister, who will not predict when a decision will be made. Environment Minister Kjell Larsson said

 

“ We have a serious problem. We have plutonium and we have to do something with it, but it’s not so easy.”

 

Immediately following the MOX data falsification scandal, Larsson said he did not want Sweden dealing with BNFL and he has repeated that position as recently as April this year.

 

“… I am not especially happy about manufacturing MOX at Sellafield,”

 

Larsson has not said what alternatives are being considered.

As Nigel Hawkins, a utility analyst at Williams de Broe told Reuters on 3rd May 2001, BNFL will have to show progress on possible deals with Japanese customers, since that country is a key market (Reuters 3rd May 2001).
 

Japan represents just over 60% of BNFL’s Reference Case. If BNFL received contracts for all Swiss and German plutonium, but no Japanese contracts, it would just fail to reach the 40-50% of the Reference Case it needs to justify opening the plant. Securing firm Japanese contracts is, therefore, crucial.

 

BNFL's Executive Director, Norman Askew stated last September that:

 

"Without Japanese orders we cannot justify opening the MOX plant. We have no time to finesse this: we have until about next January or February to convince the Japanese, otherwise we shall have to abandon the project" (BNFL losses at all-time high by Paul Brown, Guardian, September 15, 2000).

 

Sources close to Arthur D Little (ADL) are reported to have told Nuclear Fuel Magazine that Japanese business prospects would likely be a prime factor in ADL's recommendation, which will be used by the U.K. government in its determination whether SMP will be authorized to fully operate. "It can be expected that (ADL) is going to draw a conclusion about whether MOX in Japan will prove to be a real business". A Japanese utility consultant was also quoted saying, "BNFL is going to need [the Japanese] business to make its case". (Europeans First in Line for SMP; No Fuel for Japan until about 2004, by Mark Hibbs, Nuclear Fuel-April 30, 2001).

 

In its Memorandum to the Trade and Industry Select Committee (TISC) in May last year, the Department of Trade and Industry said

 

"These [falsification] incidents have led to a breakdown in confidence amongst BNFL's customers and its key stakeholders. Japan represents BNFL's most important market for reprocessing services and for the supply of MOX. Following the data falsification events, the Japanese utilities have suspended negotiations on future contracts pending progress by BNFL on its recovery plan". (TISC 9th report "Proposed PPP for BNFL" (18 May 2000). Memorandum by the DTI).

This begs the question why BNFL are again seeking an authorisation for SMP, given that, according to the utilities, negotiations on future Japanese contracts are still not taking place (see Safe Energy 19).

 

In its response to TISC, the Government observed that:


"SMP is currently undergoing uranium commissioning. A decision is pending on authorising plutonium commissioning and full operation of the plant. Japan is a key customer country in relation to BNFL's projected sales of MOX. Clearly, it is right to delay a decision on full authorisation of SMP until the Secretaries of State for the Environment, Transport and the Regions and for Health are in a better position to judge whether or not the MOX data falsification issue has affected substantially the projected level of BNFL's MOX business and the economic case for the plant" (Government observations on the ninth report from the Trade and Industry Committee (Session 1999-2000) on the Proposed Public Private Partnership for BNFL", 24 July 2000).


Jonathan Watts reporting in the Guardian from the village of Kariwa in Japan on 28th May said:-


”The future of British Nuclear Fuels' controversial plant at Sellafield for recycling nuclear fuel was cast into doubt yesterday by residents of a Japanese village next to the world's largest nuclear power plant. Residents of Kariwa, 180 miles north of Tokyo, rejected plans to use Mox, or mixed oxide, fuel at the nearby Kashiwazaki-Kariwa power plant. The result is a heavy blow to BNFL. It had been relying on orders from Japan for Mox, a mixture of uranium and plutonium recycled from spent nuclear fuel, to ensure the £400m Sellafield plant became viable.
Although the 54% to 43% vote is non-binding, the local mayor and the head of the Tokyo Electric Power company have said they will not proceed with the Mox programme unless they have the cooperation of local people”.

 

Greenpeace Japan called on the Japanese government to suspend and review the entire Mox programme. Kariwa ought to be a stronghold for Mox. One in four of the 1,400 households depends on the nuclear industry for an income. The government has paid 22bn yen in grants to the village in return for hosting the facility, and its acceptance of orthodox nuclear power is reflected in the names of the Atomic restaurant and the Uranium hostess bar.

 

"It's one thing living with a nuclear plant, but another altogether to have Mox. There is no way I can trust that it is safe after what BNFL did," said Kuniko Shinoda, a resident who voted against.

 

The Independent (28th May) called the vote “Historic” and agreed that BNFL’s plans had suffered a setback.

Shaun Burnie, of Greenpeace, said: "The idea that the [BNFL] Mox plant can operate without Japanese contracts is a nonsense. That's it for Tokyo Electric. The issue will now be bogged down for years."

 

The Irish Independent said the vote “will put huge pressure on the Japanese government and the country's utility companies to rethink plans to introduce …MOX, in nuclear reactors around the country over the next 10 years”.

 

The Economy, Trade and Industry Minister, Takeo Hiranuma called the vote highly regrettable, as the plan is one of the fundamental pillars of Japan's energy policy He said he would do his best to gain people's understanding, as it is the most important key to the success of the plan. (NHK Newsline 28th May 2001).

 

Green Action in Kyoto called the Referendum result an “astounding victory [which] signals the end of Japan’s MOX fuel utilization program and the death-knell for BNFL’s Sellafield MOX Plant”

 

“The result of this referendum will have a major effect on Japan’s MOX utilization program since Japanese electric utilities, including Tokyo Electric, have clearly stated that they would not go forward with the program without local approval.  The vote will undoubtedly have major repercussions on MOX implementation plans in Fukushima and Fukui prefectures where the programs are already frozen.  In February, Eisaku Sato, governor of Fukushima Prefecture, announced a one year suspension on plans to load MOX fuel into the Fukushima Dai-Ichi reactor, and called for a prefectural-wide debate on Japan’s energy program including the nuclear fuel cycle and the pluthermal program. 

 

The percentage of voters against MOX utilization was 53.6% (total 1925 votes), those voting “suspend” were 3.7% (131 votes) and those voting in favor of MOX utilization was 42.7% (1533 votes). 

 

The percentage of votes against MOX utilization and those voting “suspend” came to a total of 57.3%.  Since the voting rate was 88.14% (3605 people in a village of total 4092 voters), this means that more than half the total electorate of the village are against MOX utilization or have voted “suspend”.

 

Today’s overwhelming anti-pluthermal result confirms that Japan’s nuclear fuel cycle is in shambles.  The result is sure to influence the outcome of the energy debate in Fukushima Prefecture, where the governor has stated that he “wants to consider alternatives to the nuclear fuel cycle” of reusing plutonium in the form of MOX fuel.

 

“The Kariwa result signals the death-knell for BNFL’s Sellafield MOX Plant.  This is because Japanese contracts for MOX fuel are absolutely necessary in order for BNFL to obtain its Reference Case to make SMP economically viable.  The Kariwa results mean that Japan’s MOX program is next to dead.  This compounded by the fact that trust in BNFL remain totally destroyed in Japan due to the 1999 BNFL MOX fuel quality control data falsification scandal, no region in Japan will touch BNFL fuel.  It is now unthinkable that Japan will ever use MOX fuel fabricated by BNFL” stated Aileen Mioko Smith, director of Green Action”.

The UK Government can only come to one conclusion – it should turn down BNFL’s application for authorisation to open SMP.

2. SURVEY OF SMP CONSULTATION SUBMISSIONS.

 

Greenpeace

 

The experience of one of the most recent plants constructed by BNFL, the Thermal Oxide Reprocessing Plant (THORP) does not bode well for the future of SMP. This plant was given authorization to open based on a projected profit of £500m over its first ten years of operation. This projected profit was based on a planned throughput of 7,000 tonnes. Today, after many unplanned breakdowns, technical problems, and more than 7 years of operation, throughput has been a mere 3182 tonnes. Most recently the plant was forced to close in February and was only re-opened in late April. For the year ending 31st March 2001, THORP was only able to reprocess 362 tonnes out of a target of 800 tonnes.(“BNFL plants resume reprocessing work” by Pearl Marshall, NuclearFuel, May 14, 2001)

 

According to documents leaked to The Independent newspaper (“Foreign firms threaten crisis for Sellafield” by Severin Carrell & Geoffrey Lean, Independent on Sunday 13th May 2001. And “BNFL moves to head off revolt by foreign firms” by Michael Harrison, Independent 14th May 2001), BNFL’s customers are deeply dissatisfied over massive cost overruns and failures in key facilities at Sellafield, and are considering legal action if the situation continues. These documents totally contradict BNFL's assertion that it has rebuilt customer confidence, and that it will obtain sufficient contracts to justify the opening of SMP. A statement made by customers in September 2000 rejects the notion that BNFL is a changed company. As recently as March 2001 the overseas utilities accuse BNFL of returning to:-

 

 "…its previous ways of being unresponsive and unwilling to help."

The September statement says:-

 

"Some of your customers believe that the situation is now becoming critical and are calling into question whether BNFL has breached the implied terms of the contracts due to the lack of performance in the areas of reprocessing and vitrification …if BNFL's under-performance continues in these areas, there could be a complete loss of confidence in all aspects of BNFL's services”.

 

In the documents the overseas baseload customers complain of a 10 per cent increase in THORP operating costs, mainly due to the need for an 11th year to complete baseload contracts. Given the throughput rate at THORP, baseload customers might be shocked to realise that they should be budgeting for a 12th, 13th and 14th year as well.

 

It is clear from these documents that BNFL's key clients remain deeply dissatisfied. They have accused BNFL of deliberately blocking progress in negotiations, reneging on earlier agreements, and penalizing them with costs that go up continually. BNFL is already in negotiations with its biggest customer, British Energy (BE), which has described reprocessing as an “economic nonsense”. BE’s nuclear fuel costs are continuing to shoot up, largely a result of the index-linked reprocessing contracts it is tied into at British Nuclear Fuels' Sellafield plant. A quarter of BE's total operating costs are accounted for by the contracts with Sellafield. It pays BNFL £300m a year and makes annual provisions in its accounts of £140m against future reprocessing costs but Michael Kirwan, BE's finance director reckons that sum could be reduced by £80m a year if it was able to switch to storage rather than reprocessing of its spent fuel. Reprocessing is partly blamed for BE’s recent collapse in profits (“British Energy Sets Sights on Expansion into North America”, by Michael Harrison, The Independent, 17th May 2001).

 

Unless it can resolve the disagreements with its base-load customers, THORP will have a very limited future. With hindsight, it is crystal clear that it was a mistake to license THORP in 1993. The disagreements threaten to further undermine the limited prospects for SMP. But there is still time to take a step back and avoid the mistakes made with THORP by not authorising SMP. You can read the leaked documents, and see the full Greenpeace submission on their new website www.BritishNuclearFuels.com .

 

INSTITUTE FOR RESOURCE AND SECURITY STUDIES Cambridge, Massachusetts

 

The Institute for Resource and Security Studies (IRSS) says it is not appropriate for comments about the proposed operation of the SMP to be limited to economic issues.  Other issues, especially those related to international security, must be considered.  In particular, IRSS emphasizes that operation of the SMP cannot be justified if it creates significant adverse impacts on international security.  Specifically, IRSS recommends the development of new processes for impact assessment and justification.  These processes should be applied to the SMP prior to any decision by the UK government to authorize operation of the SMP. 

 

Regrettably, the UK government has not developed the analytic and administrative processes that are needed to: (i) thoroughly assess the impacts of a nuclear project such as the SMP; and (ii) properly account for those impacts in decision making.  If deficiencies in UK decision-making processes are not corrected, the government will make badly-informed, inappropriate decisions.  One consequence of bad decisions could be the waste of public money.  Other consequences could be much more significant.  For example, if operation of the SMP contributes to the proliferation of nuclear weapon capabilities, the resulting reduction in international security will be experienced worldwide and for generations to come. 

 

One illustration of present deficiencies in UK decision-making processes is the absence of any systematic examination, by BNFL or the UK government, of options for the future management of plutonium.  Two independent analysts have recently published a study of such options (Fred Barker and Mike Sadnicki, The Disposition of Civil Plutonium in the UK, April 2001).  Their study sets a standard for the type of analysis that BNFL and the UK government should be required to perform as a precondition for any decision about operation of the SMP. 

 

If the process of justification of a nuclear project is to have any credibility, the full range of impacts and benefits of the project should be identified, assessed and explicitly acknowledged in the justification decision.  BNFL itself has implicitly accepted the need to consider a project's full range of impacts and benefits, by stating that its interpretation of the principle of justification relies, in part, upon paragraph 115 of publication #60 by the International Commission on Radiological Protection (ICRP60).  Paragraph 115 of ICRP60 acknowledges the need to consider a range of impacts and benefits, and includes the statement: "The justification of a practice thus goes far beyond the scope of radiological protection." 

 

As a starting point for the development of impact assessment methodologies, the UK could adopt the practices used by the US Department of Energy (DOE) to assess the impacts of nuclear projects.  From this starting point, the UK could develop methodologies that would set a standard for worldwide application.  DOE's practices are the product of three decades of experience with impact assessment, but they leave considerable room for improvement. 

 

DOE has prepared many environmental impact statements (EISs) for nuclear projects.  These EISs always consider alternative options and their impacts.  The concept of an environmental impact has expanded over the years, and in EISs prepared by DOE the concept now encompasses socio-economic impacts, environmental justice impacts, and cumulative impacts.  In recent years, DOE has also prepared some non-proliferation impact assessments to complement EISs. 

 

Three important preconditions must be satisfied before the UK government can make a credible determination that operation of the SMP would be justified.  First, the full range of impacts of the SMP's operation, in the mode proposed by BNFL, must be assessed.  Second, alternative options must be identified, and their impacts assessed.  Third, any assessment of benefits must be a true and accurate assessment of the net benefits; for example, the assessment must account for sunk costs. 

 

When these preconditions have been satisfied, the UK government could potentially make a credible determination that operation of the SMP, or some alternative option, would be justified.  A credible determination would also require the government to explicitly acknowledge the full range of impacts and benefits of the project, and to explain how the justification decision has accounted for these factors. 

 

CND

 

CND's principal objection to the commissioning and operation of SMP has always been, and remains, centred on the proliferation risks inherent in plutonium separation and its re-use in MOX fuel.

 

There is no doubt that the major barrier, today, to the proliferation of nuclear weapons is access to fissile material. Plutonium separation through reprocessing and its subsequent incorporation into MOX fuel (from which it can be relatively easily re-separated prior to irradiation of the fuel in a reactor) threatens to put fissile material within the reach of those, be they states or sub-national groups, who might desire it. MOX fuel is thus part of a fuel cycle that poses a threat to international security. Its widespread use would inexorably lead to the growth of a 'plutonium economy' with implications for civil liberties and political culture.

 

Unfortunately, CND can see no evidence that these wider policy issues have been taken into account, as suggested by the Environment Agency. Yet again the current consultation is narrowly focussed on the question of economic benefit whilst the detriments associated with nuclear proliferation, international security, transport and safety issues are ignored.

 

CND urges the Government to consider, as a matter of priority, the merits of using SMP as part of an immobilisation strategy for Britain's growing stockpile of separated civil plutonium. To operate SMP in such a way would enhance international security. To use it to manufacture MOX fuel threatens international security.

 

GREEN ACTION

 

BNFL states, “Japan continues to represent a significant and robust market for BNFL’s MOX fabrication services.”  BNFL attempts to support this claim by quoting the Japanese Atomic Energy Commission’s “Long Term Program on the Research, Development and Utilization of Atomic Energy” (hereafter “LTP”). 

 

While the LTP does in fact state that plutonium recovered from reprocessing “will be used in existing light water reactors in a process of MOX utilization”, it does not necessarily follow that it will be implemented, since electric utilities do not necessarily abide by the LTP.  The LTP has a dismal track record when it comes to implementation of plutonium utilization policies.

 

Japan’s first LTP was issued in 1956 and has been revised eight times since.  The ninth LTP, which BNFL quotes in its documents, was finalized by the Atomic Energy Commission (AEC) in November 2000. The track record of previous LTPs is dismal when it comes to plutonium utilization plans.  (Since plutonium utilization targets are regularly not met, the LTPs credibility with respect to the plutonium program is regularly being called into question by various sectors of society.)

 

For example, the eighth LTP finalized by AEC in June 1994 specifies that until Fast Breeder Reactor (FBR) technologies can be developed, plutonium should be appropriately used as MOX fuel in commercial Light Water Reactors (LWRs) and in Advanced Thermal Reactors (ATRs).  However, neither of these plutonium utilization plans proceeded as outlined in the LTP, and no critique has been conducted by the AEC as to why this happened.

 

The 1994 LTP declared that MOX fuel should be loaded in about ten commercial LWRs by around the year 2000.  However shortly after the plan was finalized, it became apparent that this target would not be met.  On 31 January 1997, AEC adopted a recommendation urging all electric utilities to fuel at least one reactor with MOX fuel by the year 2010.  Then on the 21 February 1997, FEPCO announced the utilities’ plans to have four reactors loaded with MOX fuel by 2000 (two in 1999, and two in 2000).  However, to date no commercial LWR in Japan has ever used MOX fuel except on an experimental basis.

 

The 1994 LTP also clearly states that the Electric Power Development Co. Ltd will begin construction of a demonstration ATR reactor with the goal of having it in operation by the early 2000’s. On 11 July 1995, only thirteen months after the 1994 LTP was finalized, the Federation of Electric Power Companies (FEPCO) submitted a letter to the Atomic Energy Commission, Science and Technology Agency, and Ministry of International Trade and Industry informing the government that the cost of constructing a demonstration ATR is too high when compared with that of LWRs.  All mention of the ATR program disappeared with no explanation from the ninth LTP issued by the AEC in November 2000. 

 

In previous LTPs, plutonium utilization was to center around fast breeder reactor (FBR) technology.  However, efforts to develop commercial FBR’s proved to be much more difficult than originally estimated, and plans to develop a commercial fast breeder reactor have been put back further and further in time in every single LTP.  Again, no explanation as to why target dates were reset has ever been given in the following LTPs. After the Monju prototype fast breeder reactor accident in 1995, the importance of the FBR program became greatly reduced.  With the ATR program scrapped and the FBR program at a standstill, the pluthermal program became the main forerunner for reducing Japan’s plutonium surplus.

 

The latest LTP was released in draft in August 2000 for public comment.  After a 50day period 1190 comments were received.  In addition three public forums were held (in Tokyo, Aomori Prefecture and Fukui Prefecture) to directly hear the views of citizens. 

 

In spite of the fact that a vast majority of the comments submitted to the Long-Term Program Council were opposed to the various specific policies outlined in the draft, (the chairperson Sho Nasu, admitting during the official deliberations that comments received opposing Monju outnumbered those advocating restart 9 to 1), the Long-Term Program Council, its members highly skewed to those with direct interests in Japan’s nuclear program, virtually ignored these comments and proceeded to finalize the LTP in less than two meetings.  This failure to reflect public opinion did not go unnoticed by the media and public, and has backfired on the AEC and the national government.  Newspaper headlines the morning after the Long Term Program Council concluded drafting the final plan read, “views of national citizens hardly reflected.”

 

The LTP is not a program that can force the utilities to implement programs, and this would also include the pluthermal program.  Although the LTP states that the basic policy of the government is to call for the effective use of such materials as plutonium and uranium, it limits itself to stating:  “It is hoped therefore that nuclear operators will continue their activities under this basic policy.” As can be seen with the ATR cancellation, the AEC can “hope”, but there is no assurance whatsoever that implementation will actually take place.

 

Obtaining public consent is absolutely essential before the pluthermal program can be implemented.  The current LTP confirms this by stating in its introductory section, “a prerequisite for any nuclear policy is winning the understanding and confidence of the Japanese people.” 

 

In Fukushima Prefecture – the location of the first reactor intended to be loaded with MOX, after the Takahama reactors dropped out of the running due to the BNFL scandal, the Governor has announced plans to establish a task force to review national energy policy (See Safe Energy 19).  With regards to the pluthermal program Sato stated, “we will take at least one year to examine the plan and there is no way I am going to give my approval during that time.”

 

In addition to seeking the opinion of prefectural citizens via the internet, the prefecture will hold an open public forum on 31 May in order to help decide the topics that will be considered by the energy review task force.  Governor Sato has also announced that after the task force concludes its review, the prefecture will submit its findings to the national government and make a proposal concerning what should be done.  The review committee is scheduled to conclude its findings by the end of the fiscal year (30 March 2002), and a proposal will be submitted to the national government around this time.  If the review panel concludes that the nuclear fuel-cycle policy is not as beneficial as a once-through fuel cycle, it is highly unlikely that the pluthermal program will get off the ground at any time in the near future.

 

In Niigata Prefecture, Tokyo Electric’s plans for the Kashiwazaki-Kariwa Unit 3 reactor to be the second reactor to load MOX, have been thrown into disarray by the Kirawa referendum result.

 

It is clear from earlier referendum attempts that even in towns where many citizens rely on the nuclear industry for their livelihood, a large percentage of people are willing to sign their names for the public record calling for a referendum against the pluthermal program.  The referendum movement in Kariwa is not an isolated movement and only achievable because of the small population in the village.  Even in the neighboring city of Kashiwazaki, with an electorate of over 69,900 people, 26,690 voters, or 38% of the voting public signed a petition to hold a referendum. 

 

In its “Second MOX Market Review”, BNFL tries to play down the significance of the delay in Fukushima.  BNFL states, “senior central government personnel and TEPCO officials have consistently stressed that the plan is to load MOX fuel at Fukushima at the next possible outage.  However, even if the MOX is not loaded in spring 2001, a delay of several months or even around a year does not alter the conclusion that SMP is economically justified.”  It is now quite obvious to all concerned in Japan that it is not the central government nor electric utility officials who have the power to decide if the MOX program will go forward or not in Fukushima.  It is also worthy to note that these government and TEPCO officials are stressing to BNFL that they plan to load MOX fuel at Fukushima at the next “possible” outage.  They are not saying at the “next outage”, or “the outage after this next outage”.  They make no commitments as to loading date.  For BNFL to assume that MOX fuel will be loaded in Fukushima by the spring of 2002 is simply wishful thinking and not substantiated by fact. The political reality is that the conclusion of the Fukushima Prefecture Energy Policy Review will have a definite impact on the future of the pluthermal program.  BNFL has no means at its disposal of predicting what the outcome of this Review might be.

 

Plans to load MOX fuel at the Kashiwazaki-Kariwa plant will now be at a complete standstill. The Kariwa referendum will certainly influence the Fukushima Prefecture Energy Policy Review committee’s debate and final outcome.  If the utilities are unable to obtain public consent for the pluthermal program, the program will never be able to commence.  

 

Distrust in BNFL, runs so deep in Japan due to the 1999 MOX fuel quality control data falsification scandal, that it will be impossible, even with time, to obtain the acceptance of Japanese citizens for BNFL MOX fuel.  On 24 April a letter was written to Dr. Jack Cunningham, member of the British Parliament at the time of his visit to Japan to address the Japan Atomic Industrial Forum and promote BNFL SMP contract possibilities with Japanese electric utilities.  Green Action signed this letter along with members of the Japanese Diet, local legislators, consumer, professional, religious, and anti-nuclear organizations from Fukui, Niigata, Fukushima, Aomori, the Tokyo and central Japan regions.  This letter addresses how BNFL is currently viewed in Japan, and how there are numerous unresolved issues still stemming from the 1999 falsification scandal. 

 

Mike Sadnicki

 

In a paper commissioned by FoE and Greenpeace, Economist, Mike Sadnicki reviews new information presented for the 4th Consultation.

 

In the absence of an opportunity to comment on ADL's appraisal, it is impossible to draw attention to any observations as to the way in which BNFL's economic case has been assessed by ADL and the method and conclusions adopted by ADL. This is a matter for grave regret and stands severely to limit the ability to draw relevant points to the decision-maker's attention, for consideration at the time of the ultimate decision.

 

An SMP economic analysis carried out by this author and colleagues in July 1999 concluded: “the provisional view of Ministers that the balance of the argument is in favour of economic justification appears to be incorrect; and that the confidence which Ministers have in the evidence so far assembled should be very limited”.  A re-examination of the SMP economic case, carried out by this author and colleagues in May 2000 after the data falsification incident(s), concluded that: “SMP operation is still very unlikely to generate sufficient income to cover future costs, and that Ministers should have very limited confidence in any evidence setting out an economic case for operation.”

 

The overall conclusion now, in May 2001, is that MOX “market” opportunities seem to have deteriorated sharply since the last analysis submitted in June 2000. Estimated future net cash inflows from SMP operation have declined. There is strong evidence that costs have increased significantly, and in addition prices may also have fallen. BNFL’s bargaining power with all potential customers – especially in Japan - has deteriorated. The very limited confidence that Ministers ought to have had in 2000 should now diminish even further.

BNFL’s current position seems to be predicated on a false importance being attached to certain European agreements which would in themselves be loss-making. These European agreements appear insignificant, when compared with the increased uncertainty and hesitancy - arising from political, economic and technical drivers - in the potential Japanese MOX market.

 

In addition, plutonium immobilisation has now emerged as a serious cost-effective competitor to MOX, as a way of disposing of foreign plutonium which has already been separated at Sellafield. This in itself seriously undermines much of the underlying thinking behind BNFL’s economic case.

 

3. PHOENIX NEWS

 

BNFL has made no secret of its desire to build one or two plutonium-fuelled reactors in the near future. BNFL has prepared a corporate plan that has been submitted to the government, and is expected to be made public shortly after the General Election. The company is understood to have earmarked potential sites and is urging the government to accept proposals for new reactors.  BNFL has declared it "has the designs for the reactors" it needs and the sites on which to build them.

British Energy has said it will approach the Government shortly after the General Election about reactivating plans for new nuclear power stations. Hunterston C has been mentioned as a possibility in several newspaper stories.  Robin Jeffrey, British Energy chairman, said at a conference last year: "To have a plant up and running for 2010 we need to start now. The clock is ticking."

The Observer on 20th May reported that the Government is planning to launch a sweeping review of the sources and security of Britain's energy supply if it wins the election. Ministers are increasingly anxious about future electricity shortages, reliance on foreign sources of fuel - particularly gas from Russia, North Africa and the Middle East - and difficulties in cutting carbon dioxide emissions in line with Kyoto agreements as ageing nuclear plants are shut down. Both major UK nuclear operators have been lobbying the Government intensively over the need for a new generation of power stations here, and plans for new plants could be one result. Ministers are also aware of energy industry concerns that the New Electricity Trading Arrangements may discourage companies from building power plants, which could reduce long-term capacity and lead to Californian-style blackouts.

 

There has been an apparent shift in the Labour Party’s stance on nuclear power, according to the Sunday Times (20th May). The party's manifesto dropped its 1997 pledge to block the building of new plants. Then, it stated, there was "no economic case for building any new nuclear power stations". This election's manifesto, however, makes no reference to such a bar, but says: "Coal and nuclear energy currently play important roles in ensuring diversity in our sources of electricity generation."

The industry will still face a considerable hurdle in persuading the next government and potential investors of the economics of constructing new nuclear reactors. But if they can persuade the Government to subsidise reactors in some way, either for using up plutonium, once it has been declared a waste, supplying the MOD with tritium, or making savings in CO2 for example, the day when new reactors are built in the UK may not be far away.

US operator plans to build new nuclear plant By Julie Earle in New York and Nancy Dunne in Washington May 23 2001 Financial Times.

 

Exelon, the largest nuclear operator in the US, said it hoped to announce construction of a new nuclear plant within the next 12 months. If it were to go through, it would be the first new nuclear plant ordered in the US for more than 20 years. Industry executives believe strong support from the Bush administration has paved the way for the revival of a sector

once considered moribund.

 

The Chicago-based Exelon, which owns 17 reactors in the US, told the

Financial Times it was in talks with the Nuclear Regulatory Commission over a Pebble Bed Modular reactor, which it claims will be "faster, safer and cheaper" than the current generation of plants. The new technology compacts carbon-coated uranium granules into billiard ball-like spheres, which are used as reactor fuel.  The company is working in South Africa with BNFL, and Eskom, a South African utility.

 

Representatives from the NRC and the energy department have made "numerous visits" to South Africa to view the work, according to Tom Clements, executive director of the Nuclear Control Institute.

 

BNFL has said that construction of a Pebble Bed reactor would begin in South Africa within a year and that several could be under construction in the US within five years.

 

The Nuclear Energy Institute, an industry group holding its annual meeting, on Wednesday said it expected the sector's share of electricity production to rise from 19.8 per cent in 2000 to 23.1 per cent in 2020. However, opposition to a nuclear energy renaissance has begun to coalesce. Environmentalists and other public interest groups are to hold a press briefing on Thursday to attack the administration's proposal to renew the Price Anderson Act, which shields nuclear companies from unlimited liability.

 

Californians Favor Nuclear Plants by COLLEEN VALLES Associated Press Writer

 

SAN FRANCISCO (AP) -- A surprising 59 percent of Californians now support building more nuclear plants, according to a poll released Wednesday. The pollsters said the findings suggest how deeply the power crisis has affected people in the state, which has been hit by rolling blackouts and soaring electric bills over the past few months.

 

The last time the organization polled Californians about nuclear energy was 1984 -- five years after the accident at Three Mile Island in Pennsylvania -- and it found 61 percent opposed to nuclear power. ''In my interpretation, the current energy crisis has some bearing on the public's changed attitudes on nuclear power,'' said Mark DiCamillo, spokesman for the Field Institute, a nonpartisan polling organization. ''The public is searching for clean ways to add to the capacity. I think the poll is saying that nuclear should be included in that consideration.''

 

The Field poll comes as the Bush administration pushes for a renewed look at nuclear power. Vice President Dick Cheney, who heads the president's energy task force, has promoted nuclear power as essential to America's energy needs and said that at least some of the 65 power plants that need to be built annually to meet future electricity demand ought to be nuclear.

 

No utilities have ordered any new nuclear power plants in the United States since 1978.

 

The poll 1,015 California adults was taken May 11-20. It showed that 59 percent of Californians favor nuclear power and 36 percent are opposed. The margin of error was plus or minus 3.2 percentage points.

 

Carl Zichella, the Sierra Club's regional staff director for California, Nevada and Hawaii, said Californians have not thought about nuclear energy for about 20 years and do not have as much information as they did around Three Mile Island.

 

''I think this number really reflects a lack of knowledge on the part of the public about the problems that drove nuclear power underground,'' he said. ''The more people know about nuclear power, the less they're going to like it.''

 

US attraction to nuclear power BBC On-Line Tuesday, 15 May, 2001
By Stephen Evans in Washington

In 1979, a controlled nuclear reaction here became an uncontrolled one, threatening meltdown and the contamination of a continent. Nuclear power is undergoing a dramatic rehabilitation in the United States as the new Bush administration reviews the country's future energy demands. In the middle of the luxuriant forests and farmlands of Pennsylvania, there is an unlikely tourist attraction - a working nuclear power station.

 

A heroic effort contained the damage within the concrete, but the closeness of the call changed attitudes. From then, no new nuclear power station was built in the United States. Now, though, nuclear is coming back. Most American citizens take cheap energy for granted and the new Bush administration is trying to keep those demands satisfied. Three Mile Island is jointly owned by British Energy and by US company Exelon. Three Mile Island, once a by-word for nuclear disaster, is now a designated official historic monument and a magnet for tourists

Exelon's Ralph De Santa said the old assumption that existing nuclear power stations would close when their licenses expired has now gone. "You will see existing nuclear companies put in for license renewal, to extend the life of the existing plants," he said. "So that's very important, because just a couple of years ago the common thought was that these plants would be shut down. "Ultimately, they are looking at building new plants. So that's the future."

Cheaper costs

 

Apart from the politics, the economics have changed. Howard Greenspect, of the independent Resources for the Future think-tank in Washington, said costs had come down, certainly for running existing stations. "They are operating more efficiently; their utilisation rates are higher," said Mr Greenspect. "The plants are being gathered, instead of being operated individually. They're now being agglomerated and put in the hands of more experienced operators. "It's now more economically attractive to extend the lifetime of those facilities and seek an additional 20-year period."

 

All the same, new plants remain expensive to build. However, as burning coal and oil gets more politically and economically costly, nuclear power plants will become more attractive. And there is the problem of waste, which has to be buried for centuries. Damon Moglan, Greenpeace's nuclear expert in the US, said pinning hopes on nuclear power meant the Bush administration was dodging the real issue.

"These guys are looking backwards by 30, 40, 50 years, instead of looking forwards," said Mr Moglan. "And it's quite clear that the real solution is going to be the development of alternative renewable, clean technology, wedded to energy efficiency and conservation. "Those are solutions."

New confidence

 

The forests around Three Mile Island bristle with monitoring equipment, continually testing the air: a testament to the fact that, when nuclear goes wrong, it goes very wrong. All the same, the man charged with policing this expanding industry, Dr Richard Meserve, the head of the United States Nuclear Regulatory Commission, said lessons had now been learnt.

"We have been preparing for the possibility of new construction by staffing, by trying to anticipate the problems that may arise, that may be presented to us, particularly if new technologies are something that licensees seek," said Dr Meserve. "Every indication we have is that there's great enthusiasm in the generating companies for maintaining their existing nuclear plants and possibly expanding them."

 

The Bush administration reckons that 1,300 new power stations, conventional and nuclear, will be needed to keep pace with American demand over the next 20 years. The great political attraction of nuclear is that it seems to offer cheap power to a people suffering power cuts. Whatever the long-term issues, that argument will be immediately attractive in Washington.

 

NEW YORK TIMES, 16 May 2001 More Nuclear Power Means More Risk
Opinion Editorial by PAUL L. LEVENTHAL president of the Nuclear Control Institute.]
 

WASHINGTON - Despite all the talk about nuclear power as the environmentally clean response to electricity shortages and global warming, many Americans are understandably wary. The Bush administration's energy task force announces its report today, and President Bush would do well to note the public's concerns about the combination of human fallibility and mechanical failure that can set off catastrophic accidents at nuclear plants and about the link between nuclear waste and nuclear weapons.

 The nuclear industry's safety and security claims are often misleading. Its spokesmen still insist that the Three Mile Island accident demonstrated that the core of a light water reactor is far more resistant to a meltdown than had been previously thought. They don't acknowledge that the core at the Three Mile Island plant was within hours of an uncontrolled melt - with Chernobyl-like
consequences - when a new shift supervisor came on duty in a panicked control room and finally figured out that thousands of gallons of cooling water had poured undetected from a valve that was stuck open. Advanced designs for presumably safer light water reactors and simpler pebble-bed reactors still have not made it off the drawing boards.

Though the nuclear industry claims it is being crippled by over-regulation, its powerful friends on Capitol Hill have threatened budget cuts to make the Nuclear Regulatory Commission compliant. The N.R.C. has begun a process of granting life extension to America's aging supply of 104 power reactors, for example, despite a rash of forced shutdowns due to equipment failures caused by aging. There have been at least eight such shutdowns over the past 16 months, according to an analysis of N.R.C. data by the Union of Concerned Scientists.

 And the agency has decided not to take enforcement action against weak security at nuclear plants: guards at half the nation's nuclear power plants have failed to repel mock attackers in N.R.C.-supervised exercises that test the protection of reactor safety systems against sabotage. Instead, it is in the process of weakening the rules of the "game" used in the mock attacks.

 A push for nuclear power, which Mr. Bush supports, isn't the way to meet America's urgent energy needs. New plants could not be brought on line quickly enough to offset present electricity shortages, which many experts believe are caused primarily by lack of capacity for transmission, not production. Nor could using nuclear plants make a big dent in global warming. Two-thirds of the emissions of carbon dioxide, a major greenhouse gas, are from transportation or other sources not related to power generation. And worldwide, it would take 3,000 nuclear plants - a tenfold increase - to replace all coal plants; yet that increase would reduce carbon emissions by only 20 percent, while enormously expanding risks that materials from nuclear power plants would be applied to making weapons. And since reserves of uranium ore are limited, millions of kilograms of plutonium, equivalent to hundreds of thousands of bombs, would have to be separated from wastes each year to help fuel so many reactors in the future.

 There are better alternatives. Energy efficiency measures, like using the best available existing technology for air conditioning, lighting and electric motors, could offset the need to build any new nuclear plants. Renewable energy sources and other alternative energy systems, including hydrogen recovered from fossil fuels after removing carbon, could provide new, clean ways to generate power.

 A rapid expansion of nuclear power would compound the existing dangers of nuclear weapons proliferation. International inspections of nuclear facilities provide uncertain protection; Iran, for example, has pledged to put the reactors it will build under inspection but is still suspected of using civilian nuclear power as a cover for a nascent nuclear weapons program.

George Perkovich, in his book "India's Nuclear Bo