The future for nuclear power generation in the world has brightened considerably. This was introduced as a theme several days ago. Yesterday, I looked at the implications for Canada. Today, I’ll consider the United States. Remember that there are two construction aspects to nuclear power generation: (1) development of uranium mines; and (2) building the nuclear reactors themselves at a cost of billions of dollars.

In the United States, no new reactors have been built since before the accident at Three Mile Island in Pennsylvania in 1979. However, a growing imperative to reduce dependence on foreign oil and new safety-enhanced designs have brought the nuclear option into the foreground once more.

The U.S. Nuclear Regulatory Commission is starting to receive applications again. In all, there are about 30 new U.S. reactors in the proposal stage.

A special word is warranted on new safety features. State-of-the-art design now features fewer parts to break down and a gravity-feed system (as opposed to a less-reliable pumping system) to release water to cool containment vessels.

Nuclear power has always had one big advantage from an environmental standpoint – there are no carbon dioxide emissions. On the other hand, the question of how to safely store spent fuel (for a very long period of time) remains a considerable stumbling block. Mountain caves and underground caverns remain the best options, but the public still has to be convinced.

A few final comments on exploration and development are warranted. Most of the uranium “plays” in the world are concentrated in three countries – the United States, Canada and Australia. Obtaining approvals for uranium production go well beyond normal environmental standards. Owners have to be aware that they will have a government body as a virtual partner in the venture, having final say (for national security reasons) on where the mined uranium can be sold.

Much of the information for this blog entry (over three days) comes from several articles in two magazines, Resource World (February 2008) and Bloomberg Markets (March 2008).

Alex Carrick

Find Canadian construction-related economic articles in Canadian Construction Market News and in the Economic Outlook section of Daily Commercial News.

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