‘India can become one of the biggest in nuclear energy’
Uttara Choudhury
dnaindia.com
The cost of oil and concern about carbon emissions from coal burning are pushing India to pursue nuclear energy vigorously. It is likely to spend $100 billion expanding its power capacity over the next 20 years and the nuclear deal will crack open the market for US companies.
Costing $2.5 billion per 1,000 megawatt, the 30 new reactors India will commission could mean big contracts for US companies like GE Energy, Thorium Power and Westinghouse Electric. India is also keen to get its hands on US technology to best use thorium, a silvery metal considered an alternative nuclear fuel to costly uranium.
Due to years of nuclear isolation and limited uranium stocks, Indian scientists tapped the country’s abundant thorium assets. India’s huge thorium reserves — about 25% of the world’s total — are expected to fuel its power industry long-term.
“The amount of nuclear power potentially that can be deployed in India could make it one of the largest nuclear energy markets in the world,” said Seth Grae, president and CEO of Thorium Power, a pioneer in developing non-proliferative nuclear fuel based on thorium.
With 17 plants in operation, nuclear energy provides 3% of India’s electricity. But by 2050, nuclear power is expected to supply 25% of the country’s electricity.
Grae talked with Uttara Choudhury in New York about how his firm was looking to do business in India by offering advisory services and licensing thorium-based fuel technologies. It is also hoping to clinch deals with companies like Reliance Power, Tata Power and Larsen & Toubro who want to foray into nuclear power generation.
Does Thorium Power see India as a big market and a partner in developing thorium-based fuel technologies?
There is a strong interest in potentially working together once the 123 Agreement for civil nuclear energy is completed, which looks like it will be in the relatively near term.
The thorium available within India allows it to pursue a nuclear power programme without as much reliance on outside sources of fuel material. Some countries have a lot of uranium; some countries import all of the fuel material. India has the ability to use its own thorium and not rely on outside sources as much for its nuclear fuel. That is very important.
Leading scientists in the Bhabha Atomic Research Centre and other places where there is great expertise in thorium understand the benefits of using thorium in their reactors which helps in proliferation resistance, reducing waste and improving the efficiency of electricity generation. India can have a model programme by using thorium rather than doing what so many others have done.
At Thorium Power we have two main business lines — we are engaged in technology development using thorium fuels for reactors and we provide strategic advisory services. We have been in discussions in India along both these areas. There can be synergies not just in using our technology, but also some of our approaches in the advisory services. The bottom line is that India represents an important market for us.
Would Thorium’s advisory service help Indian power companies draw up plans to build-out nuclear energy plants?
Yes, we are in some discussions in the private sector. I think India will have a great deal that will be done in the private sector. The private sector ultimately is the great economic engine for investment, R&D and for deploying plants. I think part of what we offer there is that we are not so strongly linked to one reactor vendor. Our advice is not subject to the conflict of interest you might see with some other companies that are so linked to one of the major companies and its technology. Our thorium-based technology can be adapted towards any of the light water reactors.
I do think there will be private-public partnerships. Thorium Power very likely will have significant activities with the private sector.
Are you talking to Indian companies?
Yes.
Can you name them?
No.
Are you concerned that a delay in the deal’s passage could mean US companies might not be at the front of the line for contracts for the new Indian nuclear plants?
That’s always a possibility but I don’t think that is a likely scenario. First of all, I don’t think they have nearly the thorium technology approaches that we have or history of dealing with some people in India on thorium issues.
Also, I know they don’t have our technology which is unique in how well it works with
India’s desire to use thorium in existing light water reactors and new ones. Finally, as I understand it the members of the Nuclear Suppliers Group are sticking together on this. I don’t think one country will supply to India if others can’t yet.
Even if the deal goes through, India still has to sign the Convention on Supplementary Compensation Treaty which supports a global pool of money to pay victims of nuclear disasters. Since India’s not a party to this treaty, are US firms worried about civil liabilities?
I don’t think there would be any real liability issue on the nuclear fuel technology. It is something we would need to look at for liability, but at this point, we don’t see anything that would stop us from working in India if the 123 Agreement is approved.
Have your scientists built a new fuel element that can be retro-fitted or placed into conventional uranium-run reactors?
Our fuel is a replacement fuel, not a change to the reactor. It would be like going from one type of gasoline for a car to an unleaded gasoline without any changes to the car. We are the leading developer of non-proliferative nuclear fuel technology for existing light water reactors and new reactors that will be built in the future, we believe in India.
Does India have the potential to be one of the biggest markets?
Yes. The amount of nuclear power potentially that can be deployed in India could be enough to make it one of the largest nuclear markets in the world over the next few decades.
Already there are reactors under construction in India. And, there are new reactors being planned. There is a great deal of activity leading up to this 123 Agreement being signed. I expect things to happen rapidly once the agreement comes through.
What savings can plants expect from using thorium-linked fuel technology?
Depending on the reactor, fuel composition, and whether the reactor operator or government pays for spent fuel handling costs, this savings could range between 5% and 20% cheaper fuel costs for the same amount of electricity generated versus what the fuel costs would be using standard uranium fuel.
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