Not everyone likes the grand bargain

I’ve been very surprised by the extent to which some commentators on the right have been willing to entertain the idea of a carbon price in return for lifting the ban on nuclear power. I mentioned Aaron Patrick in the Fin yesterday. And today, here’s Adam Creighton at the Oz

Reviving the carbon tax debate is probably anathema for many, but if one were set up correctly, with all the money being returned to taxpayers by way of an annual payment, it would make nuclear power stations more viable and provide a political springboard to abandon the massively inefficient clutter of state and federal renewable energy targets.
Carbon dividends for all is a much better sell than a carbon tax on everything

On the other hand, one person from whom I confidently expected unqualified support has jibbed at it. As I said a while back, the proposal should appeal to anyone who seriously believes that nuclear power should be adopted as a response to climate change.

The obvious example, for me at any rate, is Ben Heard. So, I was quite surprised when, in a lengthy Twitter discussion (here’s his feed), he would not endorse a carbon price, or any other specific measure to reduce emissions. Not only that, but he professed greater sympathy for rightwing science deniers than for anti-nuclear environmentalists.

It’s easy enough to guess what is going on here. I imagine Heard started out with genuine concern about the climate, and convinced himself that nuclear power was an essential part of the solution. That entailed arguing that renewables couldn’t do the job, even with storage. At this point, Heard would have got plenty of hostility from environmentalists, and plenty of support from denialists. So, when he’s faced with something like a carbon price (or, for that matter, any effective climate policy) that his new friends will hate (check out the old white male Oz commenters on Creighton’s post), he backs away. I’ve previously seen the same pattern with Barry Brook and (from a different starting point) Ted Trainer.

A nuclear grand bargain ?

I wasn’t expecting much of a reaction to my submission to two Parliamentary inquiries into nuclear power, in which I advocated imposing a carbon price (set to rise to $50/tonne over time) and, conditional on this, repealing the existing legislative ban on nuclear power.

Over the weekend, though, I heard that Aaron Patrick of the Fin was asking a few people about it. Given my past history with Patrick, I was expecting a gotcha hatchet job, or worse.

When today’s Fin came out, I was surprised to learn (via Twitter and email, as I don’t subscribe), that the Fin had run not one, but two articles about my submission, both by Patrick. The first that came to my attention was the expected gotcha, focusing on the recommendation to repeal the ban, while softpedalling the carbon price to the point of near-invisibility (just enough of a mention that he could deny having ignored it altogether).

The second, though, was a reasonably accurate and supportive summary of the proposal (a few digs at me, but I have a thick skin). Money quote:

A carbon price would delight the left, and would be unlikely to upset most of the business community. Small-scale nuclear reactors could be framed as a nascent technology that might not ever happen – giving its opponents a short-term political victory in the long-term national interest.
A confident and pragmatic centre-right government could seize the opportunity to alter the path of Australian economic and environmental history – from one of the worst emitters of carbon, based on population, to among the lowest.

As I’ve said previously, anyone who seriously believes that nuclear power should be adopted as a response to climate change ought to endorse this proposal. I find it hard to imagine that the nuclear boosters in the LNP are in this category, but if they are, here’s their chance to put their hands up.

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What price nuclear power ?

As I mentioned a while ago, the Standing Committee on Environment and Energy of the Commonwealth Parliament is inquiring into the prerequisites for nuclear energy in Australia. There’s a similar inquiry happening in NSW.

All the evidence suggests that this isn’t serious exercise. Rather it’s something intended to appease the National Party or troll the Greens, depending on where you are coming from.

Still, it’s a Parliamentary inquiry on an important issue, so I decided to take it at face value and make a submission. My central recommendation is a combined policy

  • Introduce a carbon price, rising gradually to $50/tonne of CO2
  • Repeal legislative bans on nuclear power

I’m pretty confident this package will have close to zero supporters in Parliament, but it ought to appeal to two groups.

First, anyone who seriously believes that nuclear power should be adopted as a response to climate change. That’s a small, but non-empty set, since most nuclear fans are climate deniers. But for those people, it should be obvious that nuclear power is never going to happen except with a carbon price high enough to wipe out coal, and compete with gas.

Second, renewable supporters who want action now, and are prepared to give nuclear a chance in 15-20 years time if it’s needed. The carbon price would push a rapid transition to solar PV, wind and storage, and would be neutral as between these technologies and nuclear. On present indications, that would be sufficient to decarbonize the electricity supply at low cost. But if a fixed-supply technology turned out to be absolutely necessary, one or two nuclear plants might possibly happen.

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Are SMRs vaporware

It seems as if nuclear fans in Australia have given up on conventional Generation III/III+ reactors such as the Westinghouse AP1000 and Areva EPR: unsurprising in view of the massive cost overruns and delays experienced in attempts to construct them.

They’ve also gone quiet on the prospect of more advanced “Generation IV” reactors. Again that’s unsurprising. Most of the leading research projects in this field have been abandoned or deferred past 2030, even for prototypes.

The great hope now is for Small Modular Reactors, which will, it is hoped, be assembled on site from parts built in factories. The idea is that the savings in construction will offset the loss of the scale economies inherent in having a larger reactor (arising ultimately from the fact that the volume of a sphere grows faster than its surface area).

Lots of SMR ideas have been proposed, but the only one with any serious prospect of entering commercial use is that proposed by NuScale, with funding from the US Department of Energy. NuScale has recently claimed that it should have its first reactor (consisting of 12 modules) in operation by 2027.

A couple of observations on this. First, when the project was funded back in 2014 the proposed start date was 2023. So, in the course of five years, the target time to completion has been reduced from nine years to eight. That suggests the 2027 target is pretty optimistic.

Second, NuScale isn’t actually going to build the factory that is the key selling point of the SMR idea. The press release says that the parts will be made by BWX, formerly Babcock and Wilcox (who abandoned their own SMR proposal around the time NuScale got funded).

So, is BWX going to build a factory, or is this going to be a bespoke job using existing plants (presumably much more expensive). I went to their website to find out. But far from getting a clear answer, I could find no mention at all of a deal with NuScale, or of any recent activity around SMRs.

So, there you have it. Australia’s proposed nuclear strategy rests on a non-existent plant to be manufactured by a company that apparently knows nothing about it.

Rethinking nuclear

Apparently, in order to placate Barnaby Joyce and others, there will be a Parliamentary inquiry into nuclear power. I was thinking of putting a boring submission restating all the reasons why nuclear power will never happen in Australia, but that seemed pretty pointless.

Given that the entire exercise is founded in fantasy, I’m thinking it would be better to suspend disbelief and ask what we need if nuclear power is to have a chance here. The answer is in two parts:

  • Repeal the existing ban on nuclear power
  • Impose a carbon price high enough to make new nuclear power cheaper than existing coal (and, ideally gas) fired power stations
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Mesmerised by Messmer

Faced with glaring evidence of delays and cost blowouts, advocates of nuclear power invariably fall back on the same argument: France did it in the 1970s, why can’t we? An obvious riposte is that France can’t do it any more, as shown by the Flamanville fiasco. A more reasonable answer, which I put forward some years ago, is that the 1970s program depended on characteristics of the French state at the time: centralised, technocratic and with complete control of the energy sector. Those characteristics can’t be replicated today – the state doesn’t have the same power to ignore public opinion or to direct investment.

In writing this, I wasn’t aware of the details of the French experience, which make the point even more clearly. The French nuclear expansion began with the announcement of the Messmer Plan, by PM Pierre Messmer for France to go ‘all nuclear, all electric’.

Messmer announced the plan in early 1974, and construction of the first three plants started in December of that year. There was no parliamentary debate, no opportunity for public discussion and of course nothing like an environmental impact statement. It was the absence of any kind of due process, rather than super-efficient construction that accounts for the speed with which the Plan took effect. The first plants took six years to build; delays and costs increased over time.

Even so, the Plan was not delivered in full.The plan envisaged the construction of around 80 nuclear plants by 1985 and a total of 170 plants by 2000. Even so, the Plan was not delivered in full. The actual number was only 56, and the hoped for transition to an all-electric economy didn’t happen.

The big yellow grader, one last time

Adani is getting on with the job of building its Carmichael coal mine as opponents prepare for a renewed campaign of protests.

That’s the lead in this SMH story about the Carmichael mine. But the picture released is the same yellow grader that’s been there for months.

This is a puzzle. On the one hand, Adani’s pronouncements exude confidence that the mine will be shipping coal within a couple of years. That was reinforced in a recent interview with Gautam Adani himself.

On the other hand, the company is showing no signs of urgency about getting to work. They’ve advertised only four jobs on their portal this month, after cutting lots of staff last year. And there’s been no announcement regarding contractors, consulting engineers and so forth, even though all their previous partners have either been sacked or walked away.

Given the subsidies Adani has recieved in India, the project might just be financially viable. But if so, why isn’t the corporation rushing to get it done while the political stars are aligned.

Adani again

In pointing out that Adani’s Carmichael mine wasn’t viable without government help, I focused on the possibility of a concessional loan from Australia’s Export Finance Insurance Corporation. As commenters have pointed out, Adani (a prominent crony of Indian PM Modi) looks like being able to charge above-market prices for electricity in India. I’m not clear whether this helps much to make the Carmichael project viable. Over the fold, an exchange I had with Charles Worringham.

In other news, it seems likely that Adani will move fairly slowly even after the environmental clearances come through. They’ve announced on their Facebook page that they are filling “more than 50” positions for pre-project work, and there are a dozen or so HQ jobs listed on their jobs portal. That’s a long way short of their announcements in January that they were ready to start digging the moment they got the go-ahead.

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