Category Archives: Markets

How to Make Money out of the Nuclear Waste Mess

Companies specializing in the handling of radioactive material are buying retired U.S. nuclear reactors from utilities and promising to clean them up and demolish them in dramatically less time than usual — eight years instead of 60, in some cases.  Turning nuclear plants over to outside companies and decommissioning them on such a fast track represents a completely new approach in the United States, never before carried to completion in this country, and involves new technology as well…

Once a reactor is shut down, the radioactive mess must be cleaned up, spent nuclear fuel packed for long-term storage and the plant itself dismantled. The most common approach can last decades, with the plant placed in a long period of dormancy while radioactive elements slowly decay.  Spent fuel rods that can no longer sustain a nuclear reaction remain radioactive and still generate substantial heat. They are typically placed in pools of water to cool, staying there for at least five years, with 10 years the industry norm, according to the Nuclear Regulatory Commission. After that, they are removed and placed in giant cylindrical casks, typically made of steel and encased in concrete.

But Holtec International, which in the past year has been buying up several retired or soon-to-be-retired nuclear plants in the U.S., has designed a cask it says can accept spent fuel after only two years of cooling.  Holtec struck a deal last year to buy Oyster Creek in Forked River, New Jersey, from its owner, Exelon Generation.  It also has deals in place to buy several plants owned by Entergy Corp., including: Pilgrim, in historic Plymouth, Massachusetts, closing May 31; Palisades, in Covert, Michigan, set to shut down in 2022 ; and two reactors expected to close within two years at Indian Point in Buchanan, New York….  NorthStar Group Services, a specialist in nuclear demolition, completed the purchase of Vermont Yankee from Entergy with plans for its accelerated decommissioning.

The companies jumping into the business believe they can make in profit….Holtec will inherit the multibillion-dollar decommissioning trust funds set up by the utilities for the plants’ eventual retirement. , The company would be able to keep anything left over in each fund after the plant’s cleanup. By Holtec’s accounting, for instance, the Pilgrim decommissioning will cost an estimated $1.13 billion, leaving $3.6 million in the fund.  Holtec and Northstar are also banking on the prospect of recouping money from the federal government for storing spent fuel during and after the decommissioning, because there is no national disposal site for high-level nuclear waste…

Holtec has come under scrutiny over its role in a mishap in August 2018 during the somewhat less aggressive decommissioning of the San Onofre plant in Southern California, where two reactors were retired in 2013 and the estimated completion date is 2030….Holtec contractors were lowering a 45-ton spent fuel cask into an underground storage vault at San Onofre when it became misaligned and nearly plunged 18 feet, investigators said. No radiation was released.  Federal regulators fined Southern California Edison, the plant’s owner, $116,000, and an investigation found that some Holtec procedures had been inadequate or not properly followed.

BOB SALSBERG , Speedy reactor cleanups may carry both risks and rewards, Associated Press, May 21, 2019

The Sad Mismanagement of Sand

 With the global demand for sand and gravel standing at 40 to 50 billion tonnes per year, a new report by UN Environment reveals that aggregate extraction in rivers has led to pollution, flooding, lowering of water aquifers and worsening drought occurrence.

The report Sand and sustainability: Finding new solutions for environmental governance of global sand resources presents how the demand for sand has increased  three-fold over the last two decades. Further to this, damming and extraction have reduced sediment delivery from rivers to many coastal areas, leading to reduced deposits in river deltas and accelerated beach erosion

Sand extraction is fast becoming a transboundary issue due to sand extraction bans, international sourcing of sand for land reclamation projects and impacts of uncontrolled sand extraction beyond national borders. International trade in sand and gravel is growing due to high demand in regions without local sand and gravel resources and is forecast to rise 5.5 per cent a year with urbanization and infrastructure development trends.

Unsustainable sand extraction does not only impact the environment but can also have far-reaching social implications. Sand removal from beaches can jeopardize the development of the local tourism industry, while removing sand from rivers and mangrove forests leads to a decrease of crab populations—negatively affecting women whose livelihood depends on the collection of crabs.

Excerpts from Rising demand for sand calls for resource governance, UNEP, May 7, 2019

Who is Afraid of the United States?

In 2018 America imposed sanctions on about 1,500 people, firms, vessels and other entities, nearly triple the number in 2016. The past six months of 2019 have been particularly eventful. America began imposing sanctions on Iran in November, and in January on Venezuela, another big oil exporter. On May 9th 2019, for the first time, it seized a ship accused of transporting banned North Korean coal.

Second, blackballed countries and unscrupulous middlemen are getting better at evasion. In March 2019advisers to the un, relying in part on Windward data, and American Treasury officials published separate reports that described common ways of doing it. Boats turn off their transmissions systems to avoid detection. Oil is transferred from one ship to another in the middle of the ocean—ships trading on behalf of North Korea find each other in the East China Sea using WeChat, a popular Chinese messaging service. Captains disguise a ship’s identity by manipulating transponder data to transmit false locations and identity numbers of different vessels.

Such methods have helped Iran and Russia transport oil to Syria, American officials say. In 2018 North Korea managed to import refined petroleum far in excess of the level allowed by multilateral sanctions. The situation in Venezuela is different—technically, America’s sanctions still allow foreigners to do business with the country. But fear that sanctions will expand mean that traditional trading partners are scarce. Nicolás Maduro’s regime this month found a shipowner to transport crude to India, according to a shipbroker familiar with the deal, but Venezuela had to pay twice the going rate.

Businesses keen to understand such shenanigans can be roughly divided into two categories. The first includes those who can profit from grasping sanctions’ impact on energy markets, such as hedge funds, analysts and traders. A squadron of firms is ready to assist them, combing through ship transmission data, commercial satellite imagery and other public and semi-public information. They do not specialise in sanctions, but sanctions are boosting demand for their tracking and data-crunching expertise.

A main determinant of Venezuela’s output, for instance, is access to the diluent it needs to blend with its heavy crude. A firm called Clipper Data has noted Russian ships delivering diluent to vessels near Malta, which then transport it to Venezuela. Kpler, a French rival, uses satellite images of shadows on lids of storage tanks to help estimate the volume of oil inside. Using transmissions data, images, port records and more, Kpler produces estimates of Iran’s exports for customers such as the International Energy Agency and Bernstein, a research firm—including a recent uptick in Iranian exports without a specific destination (see chart).

The second category of companies are wary of violating sanctions themselves. They need assistance of a different sort. Latham & Watkins, a firm that advised the chairman of EN+, which controls a Russian aluminium giant, as he successfully removed the company from America’s sanctions list this year, has seen a surge in sanctions-related business. Refinitiv, a data company, offers software which permits clients to screen partners and customers against lists of embargoed entities. Windward uses machine learning to pore over data such as ships’ travel patterns, transmissions gaps (some of which may be legitimate) and name changes to help firms identify suspicious activity. Kharon, founded last year by former United States Treasury officials, offers detailed analysis of anyone or anything on sanctions lists.

HIde and Seek: Sanctions Inc, Economist, May 18, 2019

From Nuclear Powerhouse to Nuclear Mafia: South Korea

South Korea, which is roughly the size of Indiana, eventually became the most reactor-dense country in the world, with 23 reactors providing about 30% of the country’s total electricity generation…. South Korea’s reactors…are mostly packed into a narrow strip along the densely populated southeastern coast. The density was a way of cutting costs on administration and land acquisition. But putting reactors close to one another—and to large cities—was risky. … 

In December 2009, the UAE had awarded a coalition led by Korea Electric Power Corporation (KEPCO) a $20 billion bid to build the first nuclear power plant in the UAE. Barakah was chosen as the site to build four APR-1400nuclear reactors successively.  In 2012 to Park Geunhye the newly elected president pledged to increase South Korea’s reactor fleet to 39 units by 2035 and making sales trips to potential client states such as the Czech Republic and Saudi Arabia bulding on prior success like the UAE deal mentioned above. …

Barakah under construction in UAE

But on September 21, 2012, officials at Korea Hydro & Nuclear Power (KHNP), a subsidiary of the Korea Electric Power Corporation (KEPCO),  received an outside tip about illegal activity among the company’s parts suppliers. Eventually, an internal probe had become a full-blown criminal investigation. Prosecutors discovered that thousands of counterfeit parts had made their way into nuclear reactors across the South Korea, backed up with forged safety documents. KHNP insisted the reactors were still safe, but the question remained: was corner-cutting the real reason they were so cheap?

Park Jong-woon, a former manager who worked on reactors at KEPCO and KHNP until the early 2000s, believed so. He had seen that taking shortcuts was precisely how South Korea’s headline reactor, the APR1400, had been built…After the Chernobyl disaster in 1986, most reactor builders had tacked on a slew of new safety features.KHNP followed suit but later realized that the astronomical cost of these features would make the APR1400 much too expensive to attract foreign clients.“They eventually removed most of them,” says Park, who now teaches nuclear engineering at Dongguk University. “Only about 10% to 20% of the original safety additions were kept.”  Most significant was the decision to abandon adding an extra wall in the reactor containment building—a feature designed to increase protection against radiation in the event of an accident. “They packaged the APR1400 as ‘new’ and safer, but the so-called optimization was essentially a regression to older standards,” says Park. “Because there were so few design changes compared to previous models, [KHNP] was able to build so many of them so quickly.”

Having shed most of the costly additional safety features, KEPCO was able to dramatically undercut its competition in the UAE bid, a strategy that hadn’t gone unnoticed. After losing Barakah to KEPCO, Areva CEO Anne Lauvergeon likened the Korean nuclear plant to a car without airbags and seat belts. At the time Lauvergeon’s comments were dismissed as sour words from a struggling rival.

By the time it was completed in 2014, the KHNP inquiry had escalated into a far-reaching investigation of graft, collusion, and warranty forgery; in total, 68 people were sentenced and the courts dispensed a cumulative 253 years of jail time. Guilty parties included KHNP president Kim Jong-shin, a Kepco lifer, and President Lee Myung-bak’s close aide Park Young-joon, whom Kim had bribed in exchange for “favorable treatment” from the government.

Several faulty parts had also found their way into the UAE plants, angering Emirati officials. “It’s still creating a problem to this day,” Neilson-Sewell, the Canadian advisor to Barakah, told me. “They lost complete faith in the Korean supply chain.”

Excerpts from Max S. Kim,  How greed and corruption blew up South Korea’s nuclear industry, MIT Technology Review, April 22, 2019

Killing Popcupines for their Bellies: endangered species

Porcupines  are been hunted for undigested plant material in their gut known as bezoars.

Varieties of porcupine bezoar

According to leading wildlife trafficking experts, the small, spiny rodents are at risk of becoming endangered across Southeast Asia.  Demand is predominantly driven by China, where some believe that bezoars, which accumulate in the digestive tract, have potent medicinal properties, including the ability to cure diabetes, dengue fever, and cancer. Bezoars are sold either raw or in powdered form and may be processed into capsules. A few ounces of the substance can command hundreds, even thousands, of dollars. Most sought after is the dark red “blood” bezoar, believed to be the most potent of the several varieties. Prices for bezoars have “increased exponentially during the past few years, following recent claims of their cancer-curing properties,” according to a 2015 report by the wildlife trade monitoring organization Traffic.

The Philippine porcupine, the Asiatic brush-tailed porcupine, and the Malayan porcupine, which live throughout Southeast Asia, are all flagged as threatened and declining in number by the International Union for Conservation of Nature, the body that sets the conservation status of wildlife species. None has yet been listed as endangered, which would bolster legal protection and international awareness.

Excerpts from Porcupines are being poached for their stomach content, National Geographic, Mar. 22, 2019

How to Strengthen the Immune System of Plants: biodiversity

n the past 150 years, the concentration of carbon dioxide in the atmosphere has risen from 280 parts per million (ppm) to 410 ppm. For farmers this is mixed news. Any change in familiar weather patterns caused by the atmospheric warming this rise is bringing is bound to be disruptive. But more carbon dioxide means more fuel for photosynthesis and therefore enhanced growth—sometimes by as much as 40%. And for those in temperate zones, rising temperatures may bring milder weather and a longer growing season. (In the tropics the effects are not so likely to be benign.) What is not clear, though, and not much investigated, is how rising CO2 levels will affect the relation between crops and the diseases that affect them…

Plant biology is altered substantially by a range of environmental factors. This makes it difficult to predict what effect a changing climate will have on particular bits of agriculture. Carbon dioxide is a case in point. It enhances growth of many plants but,  it also shifts the defences to favour some types of disease over others.

To make matters even more complicated, evidence is mounting that changes in temperature and water availability also shift plant immune responses. André Velásquez and Sheng Yang He, at Michigan State University, wrote an extensive review on the warfare between plants and diseases in Current Biology in 2018. They noted that though some valuable crops, such as potatoes and rice, experience less disease as moisture levels increase, this is not the case for most plants. High humidity, in general, favours the spread of botanical diseases. The same can be said for temperature—with some diseases, like papaya ringspot virus, thriving in rising temperatures while others, for example potato cyst, are weakened.

The problems are daunting, then, but there is a way to try to solve them… Genes which grant resistance to diseases that might become severe in the future need to be tracked down. Modern crops have been streamlined by artificial selection to be excellent at growing today. This means that they have the genes they need to flourish when faced with the challenges expected from current conditions, but nothing more. Such crops are thus vulnerable to changes in their environment.  One way to find genes that may alter this state of affairs is to look to crops’ wild relatives. Uncossetted by farmers, these plants must survive disease by themselves—and have been fitted out by evolution with genes to do so. Borrowing their dna makes sense. But that means collecting and cataloguing them. This is being done, but not fast enough. The International Centre for Tropical Agriculture, a charity which works in the area, reckons that about 30% of the wild relatives of modern crops are unrepresented in gene banks, and almost all of the rest are underrepresented….

[This is becuase] most countries are, rightly, protective of their genetic patrimony. If money is to be made by incorporating genes from their plants into crops, they want to have a share of it. It is therefore incumbent on rich countries to abide by rules that enable poor ones to participate in seed collecting without losing out financially. Poor, plant-rich countries are in any case those whose farmers are most likely to be hurt by global warming. It would be ironic if that were made worse because genes from those countries’ plants were unavailable to future-proof the world’s crops.

Excerpts from Blocking the Road to Rusty Death: Climate Change and Crop Disease, Economist,  Apr. 20, 2019

5,000 Eyes in the Sky: environmental monitoring

The most advanced satellite to ever launch from Africa will soon be patrolling South Africa’s coastal waters to crack down on oil spills and illegal dumping.  Data from another satellite, this one collecting images from the Texas portion of a sprawling oil and gas region known as the Permian Basin, recently delivered shocking news: Operators there are burning off nearly twice as much natural gas as they’ve been reporting to state officials.

With some 5,000 satellites now orbiting our planet on any given day…. They will help create a constantly innovating industry that will revolutionize environmental monitoring of our planet and hold polluters accountable…

A recent study by Environmental Defense Fund focused on natural gas flares from the wells in the Permian Basin, located in Western Texas and southeastern New Mexico. Our analysis proved that the region’s pollution problem was much larger than companies had revealed.  A second study about offshore gas flaring in the Gulf of Mexico, published by a group of scientists in the Geophysical Research Letters, showed that operators there burn off a whopping 40% of the natural gas they produce.

Soon a new satellite will be launching that is specifically designed not just to locate, but accurately measure methane emissions from human-made sources, starting with the global oil and gas industry.  MethaneSAT, a new EDF affiliate unveiled in 2018, will launch a future where sensors in space will find and measure pollution that today goes undetected. This compact orbital platform will map and quantify methane emissions from oil and gas operations almost anywhere on the planet at least weekly.

Excerpts from Mark Brownstein, These pollution-spotting satellites are just a taste of what’s to come, EDF, Apr. 4, 2019