Diablo Canyon in line for $1.1B in DOE’s CNC funding

$1.1 billion in funding from the bipartisan Infrastructure Investment & Jobs Act's $6 billion Civil Nuclear Credit program has been conditionally awarded by the DOE to PG&E for use in relicensing and extending the life of Diablo Canyon, whose two reactors had been slated for retirement in 2024 and 2025.

As such, these funds will be used exactly as intended by the Federal Government's Civil Nuclear Credit program, to support “safe and reliable” carbon-free nuclear energy facilities, preserve some 1,500 high-paying jobs and reduce carbon emissions, the DOE said.

Diablo Canyon, a 2,240 MW nuclear power plant applied for the funding soon after the California Legislature voted to allow the plant to continue operating as the best way to prevent worsening grid instability, blackouts and increasing carbon emissions from expanded use of natural gas. PG&E's application, which won the support of California's governor, Gavin Newsom and his staff, passed through the first round of vetting done by the DOE on applications received. Unfortunately, Michigan's already closed Palisades plant, despite support from Governor Gretchen Whitmer, did not receive conditional approval for funding.

“This is a critical step toward ensuring that our domestic nuclear fleet will continue providing reliable and affordable power to Americans as the nation’s largest source of clean electricity,” said U.S. Secretary of Energy Jennifer M. Granholm.

Patti Poppe, CEO of PG&E, said in a news release that the federal decision is “another very positive step forward to extend the operating life of Diablo Canyon Power Plant to ensure electrical reliability for all Californians.”

Nuclear power provides 50% of the carbon-free electricity in the U.S., but shifting energy markets and other economic factors have resulted in the early closures of 13 commercial reactors, DOE said. The plant shutdowns have led to an increase in carbon emissions, poorer air quality and the loss of thousands of high-paying jobs, the agency said.

The first Civil Nuclear Credit award cycle set as its priority reactors facing the “most imminent threat of closure,” DOE said. Applications are limited to reactors that announced intentions to shut due to economic factors. The second cycle will include reactors projected to close in the next four years.

Read more at UtilityDive: DOE conditionally awards PG&E’s Diablo Canyon nuclear plant $1.1B to forestall shutdown, by Stephen Singer, published November 21, 2022.

Published by Nucleation Capital in Capital reallocation, Carbon emissions, Carbon markets, Climate change, Energy abundance, History Timeline, History-making, LINKS, Nuclear competitiveness, Nuclear financing, Nuclear-inclusive energy policy, Public companies, Solving climate, Zero emission energy

October 4, 2022

Is nuclear energy poised for an ESG-fueled comeback?

In a world of rising energy insecurity, climate change and skyrocketing energy prices, nuclear energy might be one of the only sectors feeling more bullish than ever.

"Once seen as an energy option on its last legs, the nuclear industry has had several victories lately. California Gov. Gavin Newsom (D) signed a bill intended to keep the Diablo Canyon plant running past its expected retirement date, and Germany plans to keep two aging nuclear plants available until at least April.

The energy security arguments for those plants in some ways mirror those of the 1970s, which led to a huge nuclear build-out. Then, it was skyrocketing gasoline prices and anti-market actions from Middle Eastern oil exporters creating energy insecurity. Today, similar factors are at play, with Russia now causing supply concerns and natural gas prices spiking. There’s also the ticking tock of climate change making zero-carbon nuclear particularly attractive in a world racing to cut emissions.

Supporters say there’s enough momentum for a nuclear renaissance that would catapult the industry into a greater role in the world’s clean energy future. Newsom backed an effort to keep the Diablo Canyon plant open until 2030, for example, as climate-linked wildfires and heat waves showed it would be tough for California to lose a big zero-carbon power source in the coming years as it strives to slash emissions.

But the nuclear industry has long voiced concerns over what it sees as hesitancy and unfair treatment in the world of climate finance and ESG, the movement to include environmental, social and governance issues in investing principles.

“Nuclear should be getting credit for ESG, and I’d like to tell you that it’s that simple, but it’s not,” said Maria Korsnick, CEO of the Nuclear Energy Institute industry group, during an NEI event in June. “There’s some financial institutions that look at nuclear and look at ESG, and they struggle to say that nuclear actually supports it.”

Read more at EnergyWire: Is nuclear energy poised for an ESG-fueled comeback?, by Nico Portuondo, published October 4, 2022.

Published by Nucleation Capital in Capital reallocation, Carbon emissions, Carbon markets, Climate change, Energy abundance, History-making, LINKS, Nuclear competitiveness, Nuclear financing, Nuclear-inclusive energy policy, Public companies, Solving climate, Zero emission energy

September 26, 2022

Issuance of first-ever voluntary nuclear energy carbon credits

This corporate PR news made zero headlines in the press but we could not be more excited about it. Yet, this unassuming group of executives pursuing their own corporate objectives, could well have an enormous impact on the future of the whole planet. The agreement they reached and announced in a joint press release, involving the planned procurement by Microsoft of Clean Energy Credits (CECs) from OPG, may be the first-ever voluntary corporate purchase of a carbon-credit from nuclear energy.

This auspicious moment deserves more attention than it received, as it marks the inclusion of nuclear energy for the first time as a source of carbon credits. Up until now, for no reason other than possibly concerns about public perception, carbon credit purchases (which are an entirely voluntary type of corporate greenwashing) have come solely from purchasing rights to claim credit for new renewable energy generation and activities like reforestation or rainforest preservation. As far as we know, no company has elected to purchase clean energy credits from nuclear energy.

This ground-breaking agreement could well serve as a model for many other companies seeking truly meaningful ways to reduce their actual and ongoing carbon impacts and the team involved in the deal is clearly aware that they are setting a new precedent. The press release included the following three quotes from Ken Hartwick, President and CEO of OPG, Chris Barry, President of Microsoft Canada, and Todd Smith, Canada's Minister or Energy:

“This innovative partnership will not only spur economic development in Ontario, but also serve as a model for other companies and jurisdictions to encourage use of clean hydro and nuclear power,” said Ken Hartwick, OPG President and CEO. “As part of OPG’s Climate Change Plan, we committed to achieving net zero as a company by 2040, and to act as a catalyst for efficient economy-wide decarbonization. Ensuring industry has access to clean energy to offset emissions assists in meeting that goal.”

“We can only address climate change by tackling the challenge collectively. Agreements like this one with OPG will help Microsoft move closer to achieving our sustainability commitments, including our goal of having 100 percent of our electricity consumption, 100 percent of the time, matched by zero carbon energy purchases by 2030.” said Chris Barry, President, Microsoft Canada. “Working closely with like-minded organizations like OPG, will help us move toward a more sustainable future, while continuing to power innovation in Ontario.”

“As environmental goals increasingly influence corporate decisions on where to invest and grow, this partnership between OPG and Microsoft illustrates the potential for Ontario’s Clean Energy Credit registry to draw businesses from across the world to our province,” said Todd Smith, Minister of Energy. “This voluntary registry will incentivize investments in new clean energy generation and technological innovation while reducing costs for ratepayers.”

Read more at Microsoft News Centre Canada: OPT and Microsoft announce strategic partnership to power a Net-Zero future for Ontario, published September 26, 2022.

Published by Nucleation Capital in Capital reallocation, Carbon emissions, Carbon markets, Climate change, Corporate decarbonization, Corporate purpose, Energy abundance, Future of Energy, History Timeline, History-making, LINKS, Nuclear competitiveness, Nuclear financing, Nuclear-inclusive energy policy, Public companies, Solving climate, Zero emission energy