Welcome to Grid Brief! Here’s what we’re looking at today: the NRC has approved a HALEU fuel project, renewables didn’t dent fossil fuel consumption in 2022, China has inked a longterm LNG import deal with an American firm, and more.

NRC Authorizes HALEU Project

The Nuclear Regulatory Commission authorized the beginning of HALEU (High-Assay Low-Enriched Uranium) operations in Ohio.

“American Centrifuge Operating, a subsidiary of Centrus Energy, will operate an advanced centrifuge cascade in Piketon, Ohio, to produce the nation’s first amount of domestically-produced HALEU, the U.S. Department of Energy said Wednesday. It’s the only facility licensed by the NRC to produce HALEU in the U.S., the federal agency said,” Utility Dive reports. “A cascade system of centrifuges makes it possible to increase production by adding cascade ‘blocks’ to the installation, rather than installing a new line of centrifuges.”

The demonstration project is progressing as planned and aims to generate 20 kilograms of HALEU before the year concludes. Following that, the ACO expects to produce 900 kilograms of HALEU in 2024. More potential opportunities for further production hang on the horizon depending on Congressional funding.

This endeavor is the product of a three-year collaboration with the DOE that’s focusing on manufacturing and assembling 16 advanced centrifuges to form an enrichment cascade. Last November, American Centrifuge Operating secured a $150 million contract to initiate and manage the cascade's operations.

“This is a significant step in establishing commercial production of HALEU in the U.S.,” Jon Carmack, DOE’s deputy assistant secretary for nuclear fuel cycle and supply chain, said.

Renewables Didn’t Make A Dent In 2022

Energy transition? What energy transition? Energy consumption rose by 1% last year, but renewables did nothing to lower fossil fuel, which accounted for 82% of global energy supply according to the Statistical Review of World Energy report.

And this is despite the largest increase in new wind and solar capacity construction—a combined 266 gigawatts. Solar grew by 25%, wind by 13.5%. Together, non-hydro renewables met 84% of electricity demand growth last year.

And yet global emissions still grew 0.8%.

All in all, global electricity consumption grew by 2.3% last year, with coal as the dominant provider of power at a 35.4% share. Natural gas, meanwhile, maintained a stable share of 25% of power.

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China Inks Longterm LNG Deal With US

Why can’t we be friends? China’s ENN has just made a longerterm agreement for LNG with the American firm Cheniere.

“Under the [sale and purchase agreement], ENN has agreed to purchase approximately 1.8 million tonnes per annum of LNG from Cheniere Marketing on a free-on-board basis for a purchase price indexed to the Henry Hub price, plus a fixed liquefaction fee. Deliveries will commence in mid-2026, ramping to 0.9 mtpa in 2027,” reports Business Wire. “Delivery of the remaining 0.9 mtpa, which is subject to, among other things, a positive Final Investment Decision with respect to the first train (‘Train Seven’) of the Sabine Pass Liquefaction Expansion Project, will commence upon the start of commercial operations of Train Seven.”

The agreement extends to nearly 2050. China is snatching up as much long-term LNG as it can. Whatever the country doesn’t need is to be sold to Europe and Asia, potentially turning China into major market intermediary in the coming years.

“The US is set to be a major LNG supplier into the middle of the century,” tweeted Bloomberg’s Stephen Stapczysnki on news of the SPA.

Conversation Starters

• Australia goes big on renewable hydrogen. “Australia has green-lit plans to build a A$51 million ($34 million) renewable hydrogen plant in Victoria state, Energy Minister Chris Bowen said on Saturday, as the country moves to cut carbon emissions and boost alternative power resources,” reports Reuters. “Bowen in a statement said the 10 megawatts electrolyser to be built in Wodonga in Victoria would be bigger than any current such unit in Australia, and be used to blend green hydrogen into gas networks to supply around 40,000 homes.”

• Norway and Finland team up on nuclear. “Norsk Kjernekraft has signed a letter of intent with TVO Nuclear Services (TVONS) - a consulting company wholly owned by Finnish utility Teollisuuden Voima Oyj (TVO) - to jointly investigate the deployment of small modular reactors (SMRs) in Norway,” reports World Nuclear News. “The Norwegian company aims to identify suitable areas for SMRs in collaboration with power-intensive industry. It will prepare license applications in accordance with national regulations and international standards. It will follow the International Atomic Energy Agency's approach for milestones, and focus on what creates value in the early phase. Financing will take place in collaboration with capital-strong industry and solid financial players.”

• Europe’s LNG imports have outpaced its pipeline imports for the first time. “The Energy Institute’s data shows that Europe’s natural gas imports via pipeline in 2022 were 35% lower than the previous year, coming in at 150.8 bcm—most of which still came from Russia. Meanwhile, Europe’s LNG imports rose to more than 170 bcm.

  To achieve this level of LNG imports, Europe had to construct import terminals for LNG,” reports Oilprice.com. “Asia increased its imports of LNG also, while Russia’s overall share of the world’s nat gas pipeline exports fell to 29% last year, compared to about 43%, where it’s hovered for the last decade. Asia, however, isn’t too concerned about locking in long-term deals to secure LNG supplies—something Europe has been loathed to do as it sets its sights on cutting its emissions by 55% by 2030—and then net-zero by 2050. Asia has no such reservations, and therefore has a leg up on Europe when it comes to securing LNG supplies.”

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