Various Utility ConsultantsNovember 18, 2022
No place was it much more apparent of battle lines being drawn in between distributors as well as end users in the nuclear fuel sector than at the Platts Secondly Yearly Nuclear Fuel Methods conference on September 26th. Considering that April, various utility experts, and fuel brokers have actually routinely contacted StockInterview to ‘talk down the uranium price.
Constant is the rule concerning exactly how speculators and hedge funds are driving the spot uranium price higher. Yet spot uranium and also long-lasting agreements march greater each month. While utilities appear obsequious, there is now an underlying panic lurking underneath the surface.
Concerning an hr after USC announced Tuesday’s once-a-week area cost hike – currently to $54/pound, Rajiv Kundalkar, Vice President of Nuclear Design for Florida Power and also Light took the platform in the Pavilion Area of the Ronald Reagan Building in Washington, D.C. to pound the table as to why uranium prices should take a dive. As Mr. Kundalkar progressed via his presentation, several in the audience questioned if he was the sector’s newest sacrificial lamb. Kundalkar galloped out of the discussion area within moments after he responded to the last inquiry.
Plainly Kundalkar’s audience disagreed with his conclusions of a uranium cost slump, at some time in 2007. Questioning after his presentation could be summed up in one word: harsh. It was since Kundalkar said the uranium price was artificially high as a result of an assumption of limited supply.
He contrasted uranium’s magnificent rate surge over the past six years to the enter palladium prices. Kundalkar wrapped up palladium rose and fell, therefore needs to uranium. He specifically stressed the collapse of palladium mining stocks, which dropped after the underlying product sunk reduced.
He explained there was a plentiful supply of uranium from Canada, Australia as well as Kazakhstan, both currently and also specifically in the coming years. Kundalkar explained that hold-ups in the licensing of brand-new activators in China and also India would suppress the demand for uranium. He included that Cigar Lake, Olympic Dam, and Kazakhstan would give adequate uranium to meet the Western Globe requirements.
As opposed to blinking at the short-term surge in uranium, Kundalkar explained away any issue regarding the rising gas prices by announcing Florida Power and Light was seeking long-term techniques as well as cost-control initiatives. One such plan was to make reactors much more effective.
On the campaign that his plants would become much more efficient, one has to question what maximum ability those reactors can endure. Ten years back, nuclear power plants ran at 75 percent capacity. Presently, they are being pressed to their limitations above 90 percent. Kundalkar was not forthcoming in any details regarding exactly how his energy would certainly set up cost-control campaigns.
After we called him on his three main sources of supply, asking Kundalkar if he had actually determined the danger variables integral with those areas, he acknowledged he had done so. Instead, we favor thinking he glibly digested market records, as far too many have done, however, stopped working to examine more or probe deeper about supply dangers. Check out this site to find more useful information about utility consultants.
An additional examination of Kundalkar if Florida Power, as well as Light, had actually participated in the current Department of Energy uranium sale. The utility had not. He confessed he believed the rate was expensive. Instead, Cameco Corp purchased the uranium and quickly re-sealed a few of it for revenue.