• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 hour One Last Warning For The U.S. Shale Patch
  • 2 hours Modular Nuclear Reactors
  • 3 hours Dutch Populists Shock the EU with Election Victory
  • 5 hours Climate change's fingerprints are on U.S. Midwest floods
  • 2 days Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 17 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 45 mins 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 15 hours Telsa Sales in Europe
  • 2 days Chile Tests Floating Solar Farm
  • 17 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Poll: Will Renewables Save the World?
  • 13 hours The Political Debacle: Brexit delayed
  • 3 days US-backed coup in Venezuela not so smooth
World’s Top Commodity Trader Sees Peak Oil Demand Looming

World’s Top Commodity Trader Sees Peak Oil Demand Looming

Vitol, the world’s largest independent…

Why No One Is Interested In Building EV Infrastructure

Why No One Is Interested In Building EV Infrastructure

Nowadays, it seems like everyone…

DOE Finally Approves Loan Guarantee for Nuclear Plant

The first nuclear power plant to break ground in over three decades finally got its loan guarantee approved. The Vogtle power plant, under construction in Georgia, will receive $6.5 billion in federal loan guarantees. Secretary of Energy announced the approval in a speech on Wednesday, and he will follow that up with a visit on Thursday.

The loan guarantee was originally agreed upon in 2010 between DOE and Southern Company, owner of the plant, for the construction of two new reactors. The two parties struggled to finalize the original $8.3 billion, due to disagreements over how much Southern would have to pay for the credit subsidy – essentially a fee paid to the government to compensate taxpayers for taking on risk.

The Vogtle plant is the nuclear industry’s flagship project – the first nuclear reactor under construction since the late 1970’s – and a symbol of the “nuclear renaissance.” The new AP1000 design from Westinghouse offers improved safety systems and would be the most advanced nuclear design ever constructed.

But the renaissance was stopped before it ever got started. Many projects were cancelled over the last few years due to several factors that conspired against the industry. The fallout from the financial crisis led to weak electricity demand, low natural gas prices, and the Fukushima disaster all combined to douse cold water on the industry’s revival.  The original estimate for the cost of the new reactors was $14 billion, but the project has already had to deal with cost overruns. The industry has suffered from a track record of delays and inflated costs, but President Obama asserts that nuclear power is an integral aspect of his administration’s plan to develop a clean energy economy.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News