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Write You - High Costs, Waste Issues Stall Nuclear Renaissance
Depending upon which side of the fence you are sitting, the nuclear renaissance is either in full blossom or an arid landscape. The new uranium miners – Paladin Resources, UrAsia and SXR Uranium One – celebrate the record spot and long-term uranium price. Exelon Corp Chief Execu According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product tive John Rowe is less sanguine, based upon comments he made this past Friday, “The government may have fooled me on 17 reactors that I currently run, but I’m the one who’s being foolish if I build a new plant without knowing what they’re going to do with the spent fuel.” Exelon ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in is the largest owner of nuclear power plants in the United States. In a September 19th article, we interviewed Steven Kraft, Nuclear Energy Institute Director for Used Fuel Management. Mr. Kraft hinted the stalls around the nuclear renaissance in the United States would revolv lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. e around the spent fuel depository issue. What happens with the 40,000 metric tons of used nuclear reactor fuel? Right now, they are chilling out in 141 concrete cooling ponds scattered around the country. For the past quarter century, the nuclear industry expected the reactor here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe uel would end up in a centralized depository, as has been proposed at Yucca Mountain, Nevada. Thanks to U.S. Senator Reid, and his efforts to squash this site, the Department of Energy has been paralyzed in moving forward. Alternatives are now being proposed, and the U.S. part o d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro the nuclear renaissance remains stalled. Then the other shoe drops. Because of the vociferous environmental lobbyists, pre-construction costs dissuade nuclear utilities from accelerating their plans to build new nuclear reactors in the United States. Utilities do what is conve ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc nient – they pass on these licensing costs to their utility consumers. Because of the environmental lobby, Georgia electricity consumers are paying the freight to license the new nuclear reactors proposed by Atlanta-based Southern Co. Charlotte-based Duke Energy hopes to get the easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi same deal in North Carolina. How much does it cost to license a nuclear power plant? Standard & Poors analyst Dimitri Nikas estimated the permits to construct a nuclear plant would cost between $1.5 billion and $2 billion. This means roughly one-half the cost of constructing a nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically uclear plant in the United States goes to pay for a permit to build and operate the reactor. Because of this expensive proposition, nuclear energy costs more to produce electricity in the United States than it would in places like China, Korea, Japan or just about anywhere else and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ . For a nuclear plant costing $2 million per megawatt to build, the power plant’s electricity would cost $55 per megawatt hour. By comparison, a coal-fired power plant costs consumers $53 per megawatt hour for their electricity. A combined cycle integrated gasification plant fue ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi ed by coal produces electricity for $50 per megawatt hour. On the bright side, the S&P analyst believes that after the first wave of nuclear power plant construction, overall costs could plunge to $1.5 million per megawatt hour for electricity, or roughly $44 per megawatt hour. ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a Because of this drop Mr. Niklas concluded nuclear energy “is by far the most competitive cost from any resource, except perhaps hydroelectricity generation.” This is more good news for uranium miners now supplying the nuclear industry and those who hope to do so over the next de dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod cade. The question facing most Americans – and we would guess 99 percent haven’t the slightest clue about this problem – is whether or not they would prefer losing the nuclear option as part of their electricity generation. The environmental lobby would cheer the loss but the u cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin ility consumer would lose up to 20 percent of their baseload electricity generation. And on a darker note, the alternative would be more coal-fired power plants – not wind or solar power, which are still more than one decade away from offering any sort of hope for baseload elect tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen icity generation. To put this into perspective, coal now generates 54 percent of America’s electricity. One pound of coal produces 1.25 kilowatt hours of electricity, enough to power one 100-watt light bulb for 10 hours. The average internet user consumes more than his body wei t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel ght in coal just to surf the net: 12 hours weekly over the course of one year consumes 300 pounds of coal. (For example, the electricity consumed to order StockInterview’s “Investing in the Great Uranium Bull Market,” would burn up one lump of coal.) Total demand for electricity ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust by personal computers now amounts to 8 percent of the U.S. electrical supply. In the future, over one billion people will be accessing the Internet. This amount of computer time would be equal to the total ‘current’ capacity of U.S. electrical production. If the U.S. nuclear re y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products aissance doesn’t get launched, we will either be accessing the Internet by polluting our environment with several hundred additional millions of tons of CO2 emissions, or the Internet users will suffer. Wind and solar won’t power the Internet, but coal, gas and especially nuclea . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de r will. And at this stage of the uranium renaissance, U.S. utilities have contracted with three non-U.S. uranium mining companies – Paladin, SXR Uranium One and UrAsia – to purchase uranium mined in Namibia, South Africa and Kazakhstan. Where is the energy independence in that elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip bservation? Next we’ll be buying our electricity from the Russians, Chinese, and quite possibly the Iranians, if this nonsense continues. Please bring this to the attention of your local environmental lobbying office. COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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