Terrestrial Energy’s Big Breakthrough

Advanced nuclear is making headway in Canada. The Canadian Nuclear Safety Commission (CNSC) has finished Phase 2 of its vendor design review (VDR) of Terrestrial Energy's Integral Molten Salt Reactor (IMSR).

“The VDR is a comprehensive pre-licensing regulatory review, and its completion is a breakthrough for Terrestrial Energy,” Simon Irish, CEO of Terrestrial Energy said in a statement. “This review is a major step to bring molten salt technology to commercial markets and IMSR plants to large industrial companies seeking practicable high-impact solutions to decarbonize industrial production.”

The review found no strong barriers to licensing the reactor design. Terrestrial’s ISMR uses molten salt as both fuel and coolant, with integrated components that can supply heat directly to industrial facilities or use it to generate electrical power. In other words, their design is a two-for, producing both heat and electricity.

“The use of molten salt as both fuel and coolant also enables passive, or inherent, safety features to be built into the reactor design,” reports World Nuclear News. “The design integrates the primary reactor components, including the graphite moderator, into a sealed and replaceable reactor core unit with an operating lifetime of seven years.”

The reactor has the potential to produce up to 390 MWe.

ESG’s Enemies Are Growing

ESG bonds are becoming global darlings, but it’s a different story in America—they are facing political backlash and greater scrutiny from money managers.

“ESG proponents howl that the Republican Party’s attacks are meant to mollify financial backers led by Big Oil while making hay on cultural issues with a far-right base, but the war is bearing empirical fruit,” reports Bloomberg. “Companies sold only $6 billion of bonds last quarter to pay for projects that help the environment, achieve a social goal, or improve their governance. That’s down more than 50% from the same time last year.”

Some states are also barring external asset managers from considering ESG criteria for public pension funds.

Even if the ESG fights come in culture war packaging in the political realm, the story is different for money managers. Their major concerns are greenwashing and the lack of clear project ties for debt offerings, hence their increased skepticism about ESG investments.

More French Nuclear Troubles

France's power prices for early 2024 are more than double the prices in Germany due to the weak output and availability of the country's large nuclear fleet.

Half of France's nuclear reactors have been shut down for repairs and maintenance, leading to concerns about energy supply. Ongoing strikes and decades of neglect have piled up, generating stubborn problems for the fleet.

One of the major problems is that France has made hampering its nuclear fleet official policy. “The most direct attack on nuclear in France came in 2014, when the National Assembly passed its ‘Energy Transition for Green Growth’ into law,” writes Madison Hilly. “The policy mandates a reduction in nuclear from 75% of the electricity mix to 50% by 2025, while increasing its share of renewables to 32% by 2030. It also set a target for cutting France’s energy demand in half by 2050.”

Despite its impressive build out in the 1970s, French nuclear has been an underperformer among its peers.

“At the moment, French nuclear power plants are producing 17.5% less than the average output rate for 2020 and 2021,” reports Oilprice.com. “That’s down from 23% last year, so there is some progress, but concerns remain.”

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Conversation Starters

1. More brilliant energy policy passes in Germany. “The German cabinet on Wednesday approved a bill that bans most new oil and gas heating systems from 2024, the economy minister said, a policy designed to cut greenhouse gas emissions but that critics warned could be costly for poorer households,” reports Reuters. “Berlin's ruling coalition last month agreed that almost all newly installed heating systems in Germany should run on 65% renewable energy from 2024, both in new and old buildings. The plan is part of Germany's ambition to become climate neutral by 2045 as the construction sector was responsible for 112 million tonnes of greenhouse emissions last year or 15% of the country's emissions.”

2. India prepares for heatwaves. “A harsh summer season and above normal maximum temperatures in parts of India has triggered expectations of increased fuel consumption with gas, coal, and LNG likely to receive a boost to avert power outages, market sources told S&P Global Commodity Insights,” reports S&P Global. “The Indian Meteorological Department, or IMD, in a statement April 17 warned of heat wave conditions over East India were likely to continue for the next few days.”

3. Joe Manchin is angry. “Sen. Joe Manchin is promising to work to undermine the Biden administration’s historic proposal to limit tailpipe emissions in a presidential election year,” reports E&E News. “The West Virginia Democrat and chair of the Senate Energy and Natural Resources Committee on Tuesday threw his support behind efforts to repeal EPA’s proposed rule to limit smog, soot and carbon from cars and trucks starting with model year 2027 — a move designed to hasten the transition to all-electric vehicles. ‘I fully support Congress overturning these dangerous EPA regulations,’ Manchin said in a statement, in which he also accused the administration of ‘lying to Americans with false claims about how their manipulation of the market to boost EVs will help American energy security.’”

Podcast Appearance: The Realignment

Marshall Kosloff invited me onto The Realignment to talk about nuclear energy, the grid, our cultural and political malaise, and much more!

Crom’s Blessing