South Korea Returns to Nuclear With SMRs // Russia's Oil Revenue Rises Despite Sanctions // US Gas Prices Rise for the Eighth Time in Eight Weeks

South Korea Returns to Nuclear With SMRs

SK, Hyundai, and Samsung have set their sights on small, advanced nuclear reactors, or small modular reactors (SMRs), for South Korea's nuclear renaissance, according to a recent article from Nikkei.

Here's the rundown:

• SK has announced a collaboration with TerraPower that spans development and commercialization. "With energy company SK Innovation taking on a central role, SK seeks to harness the group's expertise in each step, from development to installation to operation."

• "Hyundai Engineering has also set its sights on small modular reactors and other next-generation nuclear systems. It set up a dedicated team of about 70 design and project management personnel in May. The goal is to cultivate its own SMR technology."

• Samsung Heavy Industries has partnered with the Danish Seaborg firm that will attempt to transfer existing ship-building experience to reactor construction.

• "Doosan has a capital and business tie-up with U.S.-based NuScale Power, under which it will supply key equipment for NuScale's SMRs."

Nikkei also makes the case for SMRs quite lucidly: "Small nuclear reactors have attracted attention as a promising path away from fossil fuels. They offer only around 5% of the output of standard reactors, allowing for a simpler construction process. Major components can be manufactured in advance and assembled on-site, reducing construction time and upfront costs. The reactors are also considered highly safe."

It's worth pointing out that the Big Boys we're used already are highly safe. Regardless, developments in South Korea should make a vital proving ground for the SMR concept. The next ten years will tell us much more about the promises and pitfalls of advanced nuclear and hopefully create a durable global market for it

Russia's Oil Revenue Rises Despite Sanctions

Russia's revenue from oil and gas have more than paid for its war in Ukraine.

"Russia earned what is very likely a record 93 billion euros in revenue from exports of oil, gas, and coal in the first 100 days of the country’s invasion of Ukraine...About two-thirds of those earnings, the equivalent of about $97 billion, came from oil, and most of the remainder from natural gas," reports the New York Times.

These findings come from the Center for Research on Energy and Clean Air, which is based in Helsinki, Finland. “The current rate of revenue is unprecedented, because prices are unprecedented, and export volumes are close to their highest levels on record,” Lauri Myllyvirta, a lead researcher on the report, told the NYT.

It appears that the rising price of fossil fuels has negated sanctioners' attempt to cripple the Russian economy. "Though Russia’s fossil fuel exports have started to fall somewhat by volume, as more countries and companies shun trading with Moscow, surging prices have more than canceled out the effects of that decline...Russia’s export prices for fossil fuels have been on average around 60 percent higher than last year, even accounting for the fact that Russian oil is fetching about 30 percent below international market prices."

Europe meanwhile, plots its own destruction by pivoting to renewables to sever its dependence on Russian energy. The EU wants to increase its share of electricity from renewables to over 60% by 2030. It will still need fossil fuel for backup. To say nothing of how this policy may substantially increase the cost of electricity and fragilize the European grid.

Treasury Secretary Janet Yellen said the American government is in talks with European allies to create a cartel that would peg the cost of Russian oil to the price of production. "That would trim Russia’s fossil fuel revenues while also keeping Russian oil flowing to global markets, stabilizing prices and fending off a global recession, [Yellen] told the Senate Finance Committee," reports The Times.

But Bloomberg reports that some members of the Biden administration are "now privately expressing concern that rather than dissuading the Kremlin as intended, the penalties are instead exacerbating inflation, worsening food insecurity, and punishing ordinary Russians more than Putin or his allies."

US Gas Prices Rise for the Eighth Time in Eight Weeks

Gas prices have risen eight weeks in a row.

"Gas prices rose 15.7 cents from one week ago, to $5.01 per gallon today. The national average compared to a month ago is 57.1 cents higher, and $1.94 higher from a year ago. Diesel prices have also increased, to $5.77 per gallon—a 13.8 cent rise over last week," reports Oilprice.com.

Unfortunately, for everyday Americans, there's no guarantee this will let up.

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Conversation Starters

• The Freeport LNG terminal that burst into flames last week will not be operational until later this year, according to a company press release. This will tighten the energy squeeze in Europe, as Freeport moved 2 billion cubic feet of gas a day.

• Antonio Guterres, UN secretary-general, described new investment in fossil fuels as "delusional" at a climate conference. The UN is in big trouble if its top tier thinks this way.

• EU Parliament's environment and economy committees have voted against the green taxonomy that would include natural gas and nuclear. This is surprising, considering nuclear's low emissions and Europe's absolute dependency on LNG right now. This vote is more about the mood around the taxonomy and less about how it will actually shake out.

Word of the Day

Heating Degree Days (HDD)

A measure of how cold a location is over a period of time relative to a base temperature, most commonly specified as 65 degrees Fahrenheit. The measure is computed for each day by subtracting the average of the day's high and low temperatures from the base temperature (65 degrees), with negative values set equal to zero. Each day's heating degree days are summed to create a heating degree day measure for a specified reference period. Heating degree days are used in energy analysis as an indicator of space heating energy requirements or use. (source)

Crom's Blessing