The End of Nuclear Industry?
The European nuclear industry, which - through its 812 billion kWh of output - accounted for 36% of the Continent's energy supply in 1997, still expresses confidence that the anti-nuclear tide will subside. Nuclear industry representatives claim that Europe needs "clean" nuclear power to meet E.U. greenhouse gas reduction targets, and that the economic costs of reactor closures are likely to sour public opinion on nuclear phase out plans. The French nuclear industry also has high hopes for the new standardized European pressurized-water reactor or EPR-design. The French hope that the new EPR may help nuclear power compete economically with new gas- and coal-fired plants and lead to a revival of nuclear plant development.
But the industry also faces major problems beyond the relative cost of nuclear power, including a string of public relations gaffes and an aging managerial class that has depended too much on cozy relationships with governments and regulators.
In the end, it turned out the European nuclear industry had been routinely ignoring strict standards on train radiation levels for years because - claim industry representatives - they pose no real health danger, and following the rules to the letter is virtually impossible.
Looming above the usual fights over German nuclear safety and environmental issues, however, is the feeling that all European electricity sectors will be put through major changes by E. U.-mandated market liberalization that was scheduled to begin in February. A report by Chicago-based Andersen Consulting issued in November predicts that over the next two decades, the European market will come to favour gas-fired local generation over large, remote base-load plants - nuclear or otherwise.
Unit X
1. Fossil Fuels
Solid Fuels
In this field, technical improvements in terms of thermal efficiency play a vital role in fostering market penetration of new systems. In the solid fuel sector much attention has been paid to the so-called "clean coal technologies". This is due to a recognition of the continuing importance of this fuel, especially in developing countries, but coupled with the need to improve the environmental and thermal performance of the combustion process.
Most large scale conventional power plants have net thermal efficiencies in the order of 38% for hard coal and 35% for brown coal. New systems are being developed which are aimed at increasing this,
over the medium-term, to at least 50%. This will result in a reduction of 0.21 kg of CO2per kWh generated per hard coal, and 0.34 kg/kWh generated for brown coal. In the EU countries alone, this equates to a CO2 reduction of 180 million tons per year; in line with targets set in the context of the climate change debate. This increased efficiency leads to lower fuel costs per unit of output, thought to equate to a reduction of some 2.5 EU/MWh in generating costs. For a 1 Gwe plant operating for 7,000 hours a year, this means a theoretical annual cost cutting potential of about ECU 18 million for consumers.
Oil and Gas
The key priorities in this sector are to improve the efficiency of exploration and production of hydrocarbons and to reduce the environmental impact of the same. Some of the most important new technologies that have contributed to the objectives are related to: new drilling and completion techniques, new seismic methods such as multi-component and multi-dimension seismic, offshore production structures and facilities. New techniques for deep water storage; and new technologies for natural gas exploration and production. Demonstration and market deployment of such technology will allow not only a better exploitation of European indigenous resources but also an increased competitiveness of European service and supply companies.