A series of groundbreaking deals are part of a drive to build 20 GWe by 2020
The visit to the U.S. of Indian Prime Minister Manmohan Singh the week before Thanksgiving was marked by a series of events related to India’s commitments to action on climate change and the use of nuclear energy to meet them. At the same time, Singh signed new cooperative agreements with Canada and Russia for trade in nuclear technologies and fuel.
The U.S. and India also signed a new memorandum of understanding on energy security and climate change. Significantly, the nuclear trade agreement with the U.S., inked during the Bush Administration, remains stalled over a series of unresolved legal issues.
India steps up to climate change commitments
On the climate front, on Dec 4 India announced it would slow the growth of greenhouse gas emissions (GHG) by 2020 following similar announcements by the U.S. and China.
India is a key player in the climate conference. It is ranked second globally in terms of population with an estimated 1.2 billion people and fifth in terms of greenhouse gas emissions. Jairam Ramesh, India’s Environmental Minister, in a speech to Parliament on 12/3, laid out a plan to reduce the growth of GHG by up to 25% by 2020 using 2005 as a baseline. He said that India is prepared to do more if an equitable deal can be worked out in Copenhagen.
This speech has the appearance of a major change by India on climate change. In the past it has resisted measures that might slow the country’s development. What’s changed is a growing realization that India is not immune from the effects of climate change. Chief among them are potential shifts in the Monsoon rains and flooding of coastline areas by rising sea levels.
Not everyone has bought into the idea that resistance to climate change is futile. Top Indian diplomat, Shyam Saran, PM Singh’s go to guy for the nuclear energy agreement with the U.S., said in a speech to Indian industrial CEOs Dec 3, “We have to be very careful that we are not hustled into a position, inadvertently, where our economic interest is harmed.”
The other factor influencing India’s policy shift are recent announcements by the U.S. and China. The Obama Administration said 12/2 it would cut total GHG by 17% below the 2005 baseline by 2020 and by 83% by 2050. On 12/3 the Chinese government followed suit announcing a plan to reduce the grow of GHG by up to 45% by 2020 compared to 2005 levels. All three nations based their targets on the concept of “carbon intensity,” which is an allocation of carbon dioxide emissions relative to gross domestic product.
However, some analysts labeled the targets set by all three countries as political window dressing ahead of the massive international climate conference now getting underway in Copenhagen. The means to achieve these goals was met with skepticism in a 12/3 WSJ OP ED by Richard K. Lester, head of the nuclear engineering department of MIT.
In addition to massive and unrealistically optimistic investments in solar and wind power, Lester said the current fleet of 104 nuclear reactors would have to be expanded “fivefold by mid-century.” He also pointed out another source of unrealistic expectations which are “a still vocal group of environmentalists remain adamantly opposed to nuclear energy.”
India’s nuclear goals executed in trade deals
While India was playing catch up to climate goals being set by the U.S. and China, it was also out inking deals for acquisition of nuclear reactors, technologies, and, most importantly, uranium to fuel its reactors.
- On Dec 1, India signed a cooperative agreement with Canada to acquire reactors and seven million pounds of uranium annually for the next two decades. The agreement created an uproar in Australia where uranium miners criticized the Rudd government for refusing to allow exports to India because it has not signed the Nuclear Nonproliferation Treaty.
- On Dec 4, India updated its cooperative agreement with Russia for new reactors, nuclear fuel. reprocessing of spent fuel, and training of Indian nuclear engineers on Russian technology. India already has an agreement in place with Russia for four new reactors and the fuel to run them for 60 years.
- A similar agreement with France will supply two new Areva EPRs in the near term and as many as six over the next two decades plus the fuel to run them for their operational lifetimes.
- On Nov 23, India updated its cooperative agreement with the U.S. authorizing the sale of reactors and fuel. However, the agreement remains in limbo. The U.S. is insisting on stronger nonproliferation safeguards and domestic laws on liability in case of an accident.
India develops its domestic nuclear capabilities
India’s top resource to execute its aggressive program to build new nuclear power stations will be its people. In a speech to the U.S. Chamber of Commerce Nov 22, PM Singh pointed out that while Europe and the U.S. have populations that are growing older, India has a huge resource in its own younger demographics.
“We enjoy a demographic dividend in terms of growing working-age population in a world that is aging very rapidly. American companies interested in global markets would be well-advised to look at the emerging possibilities in India.”
He encouraged U.S. firms to invest in nuclear energy projects in India even if the current agreement is still tied up in legal knots. Singh said that India needs “massive” investment in energy, transportation, and general infrastructure for its huge urban centers in order to expand its economy which is now growing at an annual rate of 6-7%.
Another sign of progress is that India named Srikumar Banerjee as chairman of the country’s Atomic Energy Commission and secretary of the Department of Atomic Energy. The cordial handoff from former chief Anil Kakodlar was marked by statements that Banerjee would continue the nation’s commitments to its nuclear energy new build.
Heavy Forging for reactors
One of the choke points for any country’s plans to build new nuclear reactors is the ability to get reactor vessels, often weighing 400 tons or more, from Japan Steel Works. Currently, the firm has a backlog of three-to-four years. India isn’t planning on joining the waiting line.
On Nov 30 Nuclear Power Corporation of India (NPCIL) and Larsen & Toubro (L&T) announced plans to build a new large forgings plant at L&T’s current site in Hazira, Surat, Gujarat State capable of producing products weighing up to 600 tons.
The facility will provide the heavy forgings needed for India’s new nuclear build along with steam pressure units and generators. Work on the plant will start in 2011 with a production start date of 2013. Production orders are being booked now for reactors to be built by Russia in India. Additional agreements call for orders from AECL, GE-Hitachi, and Westinghouse on the assumption India will eventually also buy reactor technologies from these vendors.
A separate agreement was signed Dec 1 between NPCIL and India’s National Aluminum Co, (Nalco) to build a nuclear reactor to provide electricity for the firm’s aluminum smelting operations. The reactor will replace a 1,080 MW coal-fired generation facility.
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