US likely to approve exports of nuclear reactors to China

The United States' nuclear regulator said Tuesday it is likely to approve the export of US-designed reactors to China soon, giving American companies access to a multi-billion-dollar market. Nils Diaz, chairman of the Nuclear Regulatory Commission, told reporters it was reviewing export licenses for Westinghouse's recently approved "state of the art" AP-1000 reactor.

He said he was unaware of any significant objections to exporting the technology to China.

"The commission will actually vote on this issue hopefully in the next couple of months," Diaz told a news conference.

"The process is relatively simple once we get to this stage ... I haven't heard of any significant opposition to the issue."

Diaz, who tried to sell the safety of the AP-1000 to Chinese officials on his visit, said China would be the first country to put the recently approved reactor to use if it makes a purchase.

China currently has nine nuclear reactors, most of which are imported from France or are locally designed.

To meet its huge energy needs, the rapidly industrializing country plans to build some 30 nuclear-power plants by 2020, triggering competition among foreign reactor suppliers.

While Beijing has not said it wants to buy the US reactor, it has long sought US nuclear power technology. US companies have also lobbied hard to sell to China.

Having lagged behind their counterparts in France and Canada, they do not want to be left out of the world's only major market for reactors.

It is estimated that as a result of this vast expansion plan, 80 percent of all new nuclear power plants over the next two decades will be built in China.

Trade in US nuclear technology to China was blocked due to sanctions imposed on Beijing after the 1989 Tiananmen Square massacre, as well as by additional export controls and concerns about Chinese proliferation of nuclear technology to Pakistan and Iran.

China has sought to appease US concerns in recent years, giving reassurances it will not transfer technology to third parties and joining a US-backed nuclear non-proliferation group.

"My understanding is that China is looking for an advanced reactor that provides greater assurance of safety, a reactor that has more passive fission so it requires less personnel involvement and less safety systems," Diaz said.

"They are looking I think for a reactor with reduced maintenance, reduced monitoring, something that is state of the art, and the AP-1000 is a state-of-the-art reactor."

If a sale goes through, the reactor will be the first US-designed reactor to be sold to China.

Diaz said Washington will seek assurances from China that it will not transfer the technology to other countries. The reactor costs 1,200 to 1,500 US dollars per kilowatt of electricity, he said.

Power generated by nuclear power plants currently accounts for about two percent of China's total output.

Coal-generated power meets about 80 percent of its energy needs but China is looking for alternative sources, including nuclear power, to ease pressure on fuel transportation and reduce environmental damage.

China hopes to achieve a total nuclear power capacity of 36 million kilowatts by 2020, almost four times the current capacity.

A move by the US to allow exports will offer China more choices, and likely stronger bargaining power for a reduced price from companies competing for bids.

Two new nuclear power projects on its east coast -- at Sanmen in Zhejiang province and at Yangjiang in Guangdong province -- are in the works.

Foreign ministry spokeswoman Zhang Qiyue said the government was inviting bids for reactors and hoped US companies would "actively participate".

Westinghouse will likely bid its AP-1000, with its main rival being French company Areva which is expected to bid its EPR reactor.

Trade in US nuclear technology to China was blocked due to sanctions imposed on Beijing after the 1989 Tiananmen Square massacre as well as additional export controls and concerns about Chinese proliferation of nuclear technology to Pakistan and Iran.

China has sought to appease US concerns, by giving reassurances it was not transferring US technology to third parties and joining a US-backed group of nations that seeks to control nuclear exports to prevent weapons proliferation.

If a sale goes through, the reactor will be the first US-designed reactor to be sold to China.

Diaz said Tuesday Washington will seek non-proliferation assurances from China in approving export licenses.

"Certain assurances will probably be asked from the Chinese government of not forward sales ... in other words not selling it to other countries," Diaz said.

Power generated by nuclear power plants currently account for about two percent of China's total power output.

The country relies heavily on coal-generated power -- which meets about 80 percent of its energy needs, but is hoping to increase the use of alternative sources, such as nuclear power, to ease the pressure on fuel transportation and environmental damage.

China hopes to achieve a total nuclear power capacity of 36 million kilowatts by 2020, almost four times the current capacity.

A move by the US to allow exports will offer China more choices, and likely stronger bargaining power for a reduced price from companies competing for bids.

The Chinese government has given approval for the construction of two nuclear power projects on its east coast -- one in Sanmen, in Zhejiang province and another in Yangjiang, in Guangdong province, west of Hong Kong.

The government is expected to invite bids for third-generation designs for the plants, with bids expected to be awarded in 2005.

Westinghouse will likely bid its AP-1000, with its main rival coming from French company, Areva, which is expected to bid its EPR reactor.

UN inspectors seek access to Brazilian nuclear plant

RIO DE JANEIRO : Three UN nuclear experts discussed terms with Brazilian officials for the inspection of a nuclear facility to which Brazil has refused access for fear of revealing trade secrets.

The inspectors from the International Atomic Energy Agency (IAEA), already locked in a battle with Iran over its nuclear ambitions, arrived at the Rio de Janeiro office of the National Nuclear Energy Commission (CNEN) early Monday.

On Tuesday, they are to visit the Resende nuclear plant in Rio state where Brazil wants to enrich uranium.

Brazil, which has one of the world's largest uranium reserves, denied IAEA inspectors access to the facility in February and March.

The South American nation opposes a visual IAEA inspection, claiming it has a novel method of enriching uranium that it wants to protect.

"This uranium enrichment process is extremely efficient because it saves a lot of energy," Science and Technology Minister Eduardo Campos told Folha de Sao Paulo in an interview published Monday.

"We do not believe it to be necessary (for inspectors) to visualize the physical format of the centrifuges and the way they are supported on the floor," Campos told the daily.

IAEA inspectors want to ensure that Brazil is respecting the nuclear Non-Proliferation Treaty (NPT). IAEA director general Mohamed ElBaradei has said Brazil should not be an exception to the organization's norms.

Uranium enrichment makes fuel for civilian reactors but can also be used to make the explosive core of atomic bombs. The IAEA is mandated under the NPT to make sure member states do not divert nuclear material for military purposes.

The US government said in April that it was confident Brazil was not developing nuclear weapons.

Earlier this month, US Secretary of State Colin Powell discussed Brazil's nuclear program with President Luiz Inacio Lula da Silva and said Washington had no proliferation worries.

In contrast, the United States has accused Iran of pursuing a nuclear weapons program, and the IAEA has set a November 25 deadline for Iran to suspend uranium enrichment activities and answer all questions about its nuclear ambitions.

Campos rejected any comparison between Brazil and Iran or North Korea, which kicked inspectors out of the country in 2002 and claims to have a nuclear weapon.

"There is no Iran syndrome" in Brazil, he said in an interview published Monday in Correio Braziliense. "There is no atomic mystery. Brazil does not represent a nuclear threat."

CNEN's spokesman, Luis Machado, told AFP the IAEA inspectors had asked that their names not be released and that no press conference was planned.

Resende's centrifuges would produce 60 percent of the needs of the Angra I and Angra II electric power plants located 180 kilometers (110 miles) south of Rio, according to Brazilian plans. They would produce two million kilowatts of power.

"Monday we will discuss the technical details for the inspection of the three IAEA technicians," Laercio Vihnas, a top official at CNEN, said Friday.

"Tuesday there will be a visit at the Resende plant to check whether the practical application of these technical details is possible," he said.

The "greenies" should hope that the Chi-Coms build power plants using the most environmentally benign method of producing power on a large scale. One golf-ball size piece of Uranium is the energy equivalent of a rail-car full of coal. Chi-Coms will reduce the world demand for valuable hydrocarbon feedstock once they implement their nuclear power plant build-out program. Neither the French, nor Canadians, nor Americans can alone satisfy an order for 30 NPPs even on the time line desired by the Chi-Coms. Each is likely to get its share -- French and Westinghouse in the more developed parts of the country and Canadian plants in the parts were the grid system is not as robust.

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