Galena opens the
door to nuclear project
By Tim Bradner
Alaska Journal of Commerce
Galena's city council unanimously approved a resolution Dec.
14 tentatively accepting an offer by Japan's Toshiba Corp. to install a
small-scale 10 megawatt nuclear power plant in the community as a
demonstration project.
That is provided Toshiba can secure licensing from the U.S. Nuclear
Regulatory Commission for the project, according to Galena city manager
Marvin Yoder. Galena is a small community west of Fairbanks, on the
Yukon River.
The resolution directed Yoder to work with the community's
Washington, D.C.-based attorney and Toshiba in developing the
application to the NRC.
The 4S reactor unit is referred to as a battery because it does not
have moving parts, and once installed, its fuel will not need to be
replaced as in conventional nuclear reactors.
The reactor unit is 50 feet to 60 feet tall and 6 to 8 feet in
diameter. It will be built outside of Alaska, installed in the Yukon
River community, encased in several tons of concrete and not be opened
during its operating life, which is now estimated at 30 years.
Licensing will be an involved process that will take several years
and substantial funding by Toshiba, Yoder said. It will also include
development of a federal environmental impact statement.
"It is in the public interest to pursue the siting of a Toshiba 4S
nuclear battery in Galena," the resolution said. The council further
directed Yoder to "establish a process and timeline leading to
evaluations, industrial partners, and financial and contractual
arrangements necessary to bring the economic and environmental benefits
of the 4S to Galena."
Toshiba has offered to install the reactor at Galena free of cost if
the licensing is approved as a commercial demonstration of the "nuclear
battery" in a remote location.
Once the technology is approved for use in the United States, Toshiba
believes there will be opportunities for sales worldwide, and elsewhere
in rural Alaska, according to Robert Chaney, a researcher with Science
Applications International Corp.
SAIC coordinated a U.S. Department of Energy study of long-term
energy supply options for Galena, including the Toshiba battery. The
University of Alaska and Idaho National Engineering and Environmental
Laboratory worked with SAIC in the study.
The study showed the Toshiba battery can supply electricity to the
community for about one-fourth of the cost of conventional diesel fuel.
Chaney said the DOE study weighed the cost benefits of nuclear
against other ways of providing Galena with improved energy, including
more efficient diesel generation, a small coal-fired power plant, and
wind, solar and hydro-power from the nearby Yukon River.
Wind, solar and hydro-power were taken off the list as primary power
sources when it was determined that site conditions in Galena did not
make those options practical, Chaney told an Alaska Miners Association
group in a Dec. 17 briefing on the project.
The analysis showed that, presuming the nuclear battery went into
operation in 2010, by 2020 it could supply electricity to Galena for 5
to 14 cents a kilowatt hour (kWh), assuming the reactor is a gift from
Toshiba and the community pays only operating costs.
In comparison, improved diesel generation could provide Galena power
for 25 cents to 35 cents per kWh. Coal-fired power comes in as a serious
alternative in the study, at 21 cents to 26 cents per kWh, Chaney told
the mining group. A small coal-powered plant could use coal extracted
from a thick coal seam about 12 miles from the community.
The nuclear option looks good even if Galena were to pay for the
reactor. In that case the power costs were estimated at 15 cents to 25
cents per kWh in the study, Chaney said. Toshiba has estimated the cost
of the 4S reactor at $25 million. Galena's power is now 28 cents per kWh.
However, the nuclear costs vary so much because of uncertainty over
the number of security guards the federal NRC may require at the site,
Chaney said. Toshiba told SAIC that if the NRC's current regulations are
followed, 34 security guards would be needed at the Galena site.
Chaney said a terrorist attack in a small, isolated rural community
like Galena is unlikely because an unknown outsider would quickly be
recognized. The 4S unit would be encased under several feet of concrete,
"and if people show up with jackhammers, everyone in town will be aware
of it."
A more appropriate staffing for security might be 4 guards, augmented
by a state trooper and Galena city police who are nearby, Chaney said.
If the NRC accepts that, the operating costs will be low enough to
deliver electricity for 5 cents, according to the study.
The 4S unit will supply far more electricity than Galena now uses,
but if it is installed there will be ample, inexpensive power available
for local residents to convert homes from heating with expensive fuel
oil to more affordable electricity.
Even then, there will be substantial excess power, enough to operate
greenhouses that can grow vegetables and fruit year-around for the
community, Chaney said.
There are, however, always risks with new technology, according to
Ron Johnson, a professor of engineering at University of Alaska
Fairbanks who is working with engineering aspects of the DOE study. One
issue with the Toshiba 4S reactor is the use of liquid sodium as a heat
transfer medium, Johnson said. And as with any nuclear power plant,
long-term disposal of radioactive waste is always an issue, although the
nuclear materials would not be removed from a unit in Alaska.
Johnson was also cautious on whether the 4S is a total solution for
rural village power needs. "If the technology is successfully deployed
in Galena, its economic viability in other Alaska villages and elsewhere
depends on the actual life-cycle costs, which are yet to be quantified,"
he said.
Chaney said that if the 10 megawatt design for the 4S is approved and
works as expected, Toshiba or other companies should be encouraged to
work on smaller versions of it. A 2 megawatt or 4 megawatt version might
be sized more appropriately for small, remote communities in Alaska.
Alaska miners are interested in the Galena project because if the NRC
approves Toshiba's proposal, larger nuclear batteries could provide
power to remote mines. Toshiba does have a 50 megawatt version of the 4S
design, which would be useful at an operating mine in a remote location.
The cost and difficulty of supplying power are currently major
obstacles to two large but remote mining projects now being studied -
the Donlin Creek gold project near the Kuskokwim River and the Pebble
gold-copper prospect on the Alaska Peninsula.
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