Nuclear Power for Remote Alaska Locations AAEP Lunch 19 October 2005 Steve Colt UAA Institute of Social and Economic Research Overview • • • • • • Context Galena study framework Galena results Extension to other communities Extension to mine sites Economic considerations going forward Evolution of Conversion Devices Source: Smil 1994 Changing Mix of U.S. Primary Energy “Sources” Circa 1992 Turning to Alaska— Primary energy consumption per Alaskan Primary perper Alaskan barrels Energy oil per Input person year Barrels of Oil per Year 80 70 Wood and all other 60 Other petroleum Jet Fuel 50 Gasoline 40 Diesel 30 Hydro 20 Coal 10 Natural Gas Alaska Gas Network PCE places Other Final energy consumption per Alaskan barrels oil per person per year Final Energy Consumption per Alaskan Barrels of Oil per Year 80 70 Jet air transportation 60 Other transportation 50 Industrial 40 Oil/propane/wood direct 30 Natural gas direct 20 generation losses 10 Electricity Alaska Gas Network PCE places Other Electricity Cost per kWh 30 30 cents per kWh 25 20 15 10 10 5 0 Anchorage PCE Places Potential Requirements of Large Mine • Donlin Creek Example: 60 MW average load = 526 million kWh per yr = 35 million gallons of diesel @15kWh/gal = 700,000 drums • Plus rolling stock energy needs…… Galena Electric Power Study • Requested by City of Galena • Funded by DOE Arctic Energy Office • Consider all reasonable options for meeting electric power needs – utility perspective • Multidisciplinary study team: – – – – Bob Chaney, SAIC Ron Johnson, Richard Weiss, UAF engineering Steve Colt, UAA/ISER, economics Greg White, INEEL, environmental /permitting Galena Study Framework • Compare total system cost to City over 30 yrs @ 4% real discount rate • Express results as $/kWh cost of service • Focus on electric utility needs: – 1.8 MW peak – 11,000 MWh per yr • Consider other uses of power: source of load Utility electricity Existing city heating loop Residential space heating Greenhouse Air station heat Total energy requirements at power plant type units firm MWh firm MWh firm MWh firm MWh non-firm MWh-equiv MWh 2010 11,002 2,344 7,413 570 8,464 29,794 Galena: Current Situation current cost of diesel power = 26 cents per kWh Admin distribution & admin = 8 cents/kWh Distribution Fuel generation = 18 cents/kWh Fixed gen variable gen Galena Assumptions: Diesel • Efficiency 14 kWh/gal (15 for new) • Diesel Price: – Low = $1.50 + 0% real/yr – High = $2.15 + 2% real/yr – Delivery to homes: add $.75/gal • Diesel Capital: $400/ kW Galena Assumptions: Coal units $/kW Coal plant capital cost Coal plant availability Coal plant efficiency (electric output/coal input) Coal or nuclear "heat to electric" efficiency Coal fuel Energy content M Btu/ton Delivered price of coal $/ton Ash disposal cost $/ton Nonfuel coal O&M Coal labor people cost per operator $/yr variable O&M and consummables $/kWh selected value (yr 1) 3,000 95% 40% 50% 20 100 20 6 53,200 0.01 low value high value 30% 40% 100 125 4S Reactor Core Center SA: Ultimate shutdown rod (neutron absorber as back up) Fuel material: U-Zr (metallic) Fuel subassemblies (18 SAs) Coolant material: sodium Core lifetime: 30 years Core height: 2.5 m (50MWe) Reflectors are moving upward and surrounding the core slowly(*) in order to compensate the reactivity loss during 30 years burn-up. If an accident occurred, reflector would fall down to make core subcritical. 2.0m (10MWe) Core diameter: 1.20m (50MWe) 0.87m Reactivity temperature (10MWe) coefficient: negative (*) average velocity: 1mm/week approximately Galena Assumptions: Nuclear Nuclear capacity Nuclear capital cost Nuclear security staff Nuclear operator staff Nuclear availability Nuclear annual supplies and expenses units MW $ people people $/yr selected value (yr 1) 10.0 0 34 8 95% 500,000 low value high value 4 34 Galena Results: Diesel 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 20 10 20 13 20 16 20 19 20 22 20 25 20 28 20 31 20 34 20 37 real year 2004 $ per kWh Diesel System: Electric Rates $2.15/gal, +2%/yr $1.50/gal, flat Galena Results: Nuclear 0.25 42 staff, $1.50/gal flat diesel 0.20 12 staff, $2.15/gal + 2%/yr diesel 0.15 0.10 0.05 - 20 10 20 13 20 16 20 19 20 22 20 25 20 28 20 31 20 34 20 37 real year 2004 $ per kWh Nuclear system: Average Electric Rates Galena Results: Avoided CO2 Avoided diesel fuel: 733,000 gallons (utility electricity) + 220,000 gallons (residential heating) + 471,000 gallons (air station heating) = 1.4 million gallons per yr (in 2010) X 10 kg CO2/gallon = 14,245 tons CO2/yr @ $9.33/ton (current EU spot price) = $133,000 /yr = 9 cents per gallon Excess Power from 10 MW output Daily Loads and Nuclear Capacity - year 2039 12.0 nuclear capacity 10.0 greenhouse air station heat home heat existing dist. heat utility electricity nuclear capacity 6.0 4.0 2.0 day of year 361 351 341 331 321 311 301 291 281 271 261 251 241 231 221 211 201 191 181 171 161 151 141 131 121 111 101 91 81 71 61 51 41 31 21 1 11 megawatts 8.0 Hydrogen – Basic Considerations • H2 is energy carrier, not energy source • Density: Liquid - 0.071kg/l or 0.59 lb/gal – about the same as styrofoam • Energy Content: 30,000 BTU/gal – 1/5 that of diesel • Best form of storage appears to be as a liquid. Others under development include hydrates and salts. Hydrogen: Cost to Produce • Size: 1 MW(e) input; 404,000 gal out • Capital: H2 generator: H2 liquefier: Storage tanks: N liquefier: Filling Stn, other: • Total Capital: • Total O&M: $1.5 million $2.0 million $0.95 million $0.7 million $1.0 million $6.2 million $62,000+ per yr Hydrogen: Cost to Transport • 500,000 gal H2 = 29 barge trips with one 17,000 gal cryogenic tank @$7,800 per trip = $447,000 = $0.92/gal • ~=$4.00 per gallon of diesel on a Btu basis. Galena: Hydrogen Enterprise •To serve city, school, and military vehicles •Replace 90,000 gal gasoline with 400,000 gal liquid H2 Capital Power Cost H2 Production Target Cost to Cost beat diesel $6.2 million -0- $46/MBTU $15-30 / MBTU -0- 1.5 cents/kWh $17/MBTU $15-30 / MBTU Simple Extension I: Bethel • Load: – 41.2 MWh + 1%/yr – 6.7 MW peak • Nuclear Labor: – 8 operators + 20 security • Misc O&M: – $2 million (viz $3.5 million Toshiba 50 MW) Nuclear replaces electricity, not heat Daily Loads and Nuclear Capacity - year 2039 12.0 nuclear capacity 10.0 6.0 4.0 2.0 day of year 361 351 341 331 321 311 301 291 281 271 261 251 241 231 221 211 201 191 181 171 161 151 141 131 121 111 91 101 81 71 61 51 41 31 21 1 11 megawatts 8.0 Simple Extension I: Results • NPV busbar cost excluding nuclear capital: – Diesel: $113 - $181 million depending on fuel price – Nuclear: $69 million • Therefore, breakeven nuclear capital cost for 10 MW is $43 million - $112 million – (compare to Toshiba est. $125 million for 50 MW) Simple Extension II: Donlin Creek • Load: – 50+ MW at all times – 438,300 MWh per yr (!) • Nuclear Labor: – 8 operators + 20 security – 25% remote site wage premium • Misc O&M: – $3.5 million (= Toshiba 50 MW estimate) • Diesel cost: $1.50 and flat Results: Donlin Billions Present value of busbar costs excluding nuclear capital Other $1.4 $1.2 Fuel $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Diesel Nuclear Looking Ahead • Economics of nuclear depend on: – Energy Requirements – Load shape (flat is best!) • Economics of transmission: – – – – Very poor if serving small places Excellent if serving a large load Reliability concerns are real, But, 75+% of total diesel cost is FUEL… Looking Ahead….. • On-site fabrication required for offriver sites • Waste management • Security / staffing • NRC process is just beginning Further Information • Galena Electric Power: a Situational Analysis. available at http://www.iser.uaa.alaska.edu/Publications/Galena_power_final.pdf • • • • • Alaska Electric Power Statistics (with Alaska Energy Balance) 19602001 by Scott Goldsmith, November 2003. http://www.iser.uaa.alaska.edu/Publications/akelectricpowerfinal.pdf BP Statistical Review of World Energy. 2004. www.bp.com/worldenergy Hansen, James. Defusing the Global Time Bomb. Scientific American, February 2004. Pp. 68-77. Smil, Vaclav. 1994 Energy in World History. Westview. Smil, Vaclav. 2003. Energy at the Crossroads. MIT Press.