Finland started its first new nuclear reactor in more than 40 years on Saturday ☢️ 🎉
> Olkiluoto-3 opens after more than a decade of delays
> The unit cost $6.4 billion, but will help Finland reduce expensive power imports from countries like Russia
Finland imports about a fifth of its power, with flows from Russia peaking at about 15% of consumption in 2009
Swedish supplies became more prominent after a change in Russian export tariffs a decade ago
Once set to be the world’s biggest reactor, the 1,600 MW Olkiluoto-3 facility became a poster child of a nuclear industry promoting itself as a stable and clean power source
Construction began in 2005, but huge cost overruns and disputes saw the start delayed many times
Olkiluoto-3 aims to start full commercial production in June 📆
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The president could invoke the Defense Production Act to ease supply chain problems that are holding back crude production, by ensuring supplies of low-cost pipes, sand and other essential equipment
So far, the Biden administration has shown little enthusiasm for the move
“It would basically be providing money to oil companies to do something that they already probably have the capacity to do,” said White House Press Secretary Jen Psaki
Uranium prices surged the highest since the 2011 Fukushima disaster on Russia supply concerns
📈☢️
Prices rose to $59.75/lbs, highest since March 2011, when meltdowns at Fukushima sent shockwaves through the nuclear industry and dashed uranium demand
The White House is considering sanctions on Russia’s state-owned atomic energy company, Rosatom, intensifying concerns over disruptions to uranium exports from Russia
Rosatom and its subsidiaries account for more than 35% of global uranium enrichment
So what does this mean? Higher spot prices for longer
“Europe will need to bid these cargoes away from Asia,” said Nikos Tsafos of CSIS. “But what does a bidding war look like when spot prices are already above $50? I have no idea.”
To be sure, Europe's plan to quit Russian natural gas is full of obstacles
Its import terminals are working near max-capacity, and it will require additional FSRUs to take a large jump in deliveries