Hunt is on for investable opportunities in region
May 20, 2010, 12:01 a.m. EDT
By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- As countries around the world explore ways to cut their dependence on fossil fuels, nuclear power is emerging as a contender. And in no region is there a bigger push to put the atom to work than in Asia.
Exploding populations and rapid industrial growth combined with competition for dwindling oil and gas supplies have put energy at the top of government agendas in the region. And while countries are pushing hard to maximize their oil, gas and coal supplies, regional leaders understand that nuclear is likely to be an essential part of the mix when it comes to meeting their future energy needs.
Concern about global warming, increasing competition for scarce resources and a relative scarcity of significant nuclear accidents in the region have also helped make nuclear an option few governments in the region are willing to ignore.
That certainly makes sense given that "power demand generally is growing more rapidly in East and Southeast Asia, from Japan around to India, than in the Western world," said Ian Hore-Lacy, a London-based spokesman for the World Nuclear Association. And "there is clear intention to meet much of this demand using nuclear power," he said, with 37 mostly large reactors under construction in the region, compared with 18 in the rest of the world.
The greatest growth in nuclear generation is expected in China, Japan, South Korea and India, according to the WNA.
"The Asian nuclear-power industry is on a very rapid expansionary course and ... will develop into a hugely significant market over the next decades -- most likely of an importance far beyond the much less efficient, more expensive yet much more hyped other alternative energies of solar, wind, ethanol or biomass," said Martin Hennecke, an associate director at Tyche Group Ltd. in Hong Kong.
The rapid expansion in Asia stands in contrast to slower growth in Europe and the U.S. Viewed from Asia, the Western countries "appear to underestimate the importance of this sector and have been following a policy of disengagement in, or even outright phasing out of nuclear energy," he said.
In the U.S., no new nuclear plants have been built in decades. But climate-change concerns and accidents -- such as the oil spill fouling the Gulf of Mexico -- along with new government financing, have sparked renewed interest in nuclear.
Within Europe, countries that ban nuclear energy include Austria, Denmark and Ireland. Some countries that have been cool to nuclear, though, are showing renewed interest as technology improves. Nuclear-phase-out plans have been postponed in Belgium and put on hold in Germany, according to the WNA. And in one of the clearest signs of a nuclear-power renaissance sweeping the globe, some Swedes are striving to lift Stockholm's ban on new reactors. Read MarketWatch's story on the re-emergence of nuclear power.
In Asia, there is no phase-out policy in place for any of the countries operating civilian nuclear-power plants, and Japan, China, India, South Korea and Pakistan all have reactors currently under construction, according to the International Atomic Energy Agency. Their aggressive stance will likely put Asian nations in a "much stronger position than the West, and will soon become a fundamental pillar of their economic success," Hennecke said.
Powering up
Asia's growth in the nuclear-energy sector is already impressive. "Right now, the lion's share of nuclear growth is centered in Asia," said Alan McDonald, a nuclear-energy analyst at the IAEA.
Of the 11 reactor projects where construction started in 2009, 10 were in Asia -- and 36 of the 54 reactors now being built are in Asia, he said.
"Last year, we moved our projections for nuclear upward for the third year in a row, and the shift was the biggest in the Far East," McDonald said.
In East and South Asia, there are currently 112 nuclear-power reactors in operation, and 37 are under construction, according to the WNA. There are "firm plans" to build a further 84, while "many more are proposed," said Hore-Lacy.
"The comparative economics are favorable and [are] supported by considerations of energy security and clean air," he said.
"Asia is stepping up because they have the capital and the foresight," said Patrick Kerr, a managing director at Amerifutures Commodities and Options. Also, "Asian players are not being held back by outdated 'no nuke' rules and regulations which make opening a new nuclear facility in the U.S. a near-never-ending and costly effort."
Despite that, the U.S. remains the world's largest producer of nuclear power, and, following a 30-year period in which few new reactors were built, it's expected that between four and eight new units may come on line by 2018, according to the WNA.
But Asia is the growth leader.
"Because the Asia governments understand future energy needs of the globe, they are essentially partners with their industry players to bring safe, modern and efficient facilities on line," said Kerr. "Obviously, this makes it difficult for U.S. players to compete with Asian players."
Source: http://www.marketwatch.com/story/asia-powers-up-its-nuclear-ambitions-2010-05-20
May 20, 2010, 12:01 a.m. EDT
By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- As countries around the world explore ways to cut their dependence on fossil fuels, nuclear power is emerging as a contender. And in no region is there a bigger push to put the atom to work than in Asia.
Exploding populations and rapid industrial growth combined with competition for dwindling oil and gas supplies have put energy at the top of government agendas in the region. And while countries are pushing hard to maximize their oil, gas and coal supplies, regional leaders understand that nuclear is likely to be an essential part of the mix when it comes to meeting their future energy needs.
Concern about global warming, increasing competition for scarce resources and a relative scarcity of significant nuclear accidents in the region have also helped make nuclear an option few governments in the region are willing to ignore.
That certainly makes sense given that "power demand generally is growing more rapidly in East and Southeast Asia, from Japan around to India, than in the Western world," said Ian Hore-Lacy, a London-based spokesman for the World Nuclear Association. And "there is clear intention to meet much of this demand using nuclear power," he said, with 37 mostly large reactors under construction in the region, compared with 18 in the rest of the world.
The greatest growth in nuclear generation is expected in China, Japan, South Korea and India, according to the WNA.
"The Asian nuclear-power industry is on a very rapid expansionary course and ... will develop into a hugely significant market over the next decades -- most likely of an importance far beyond the much less efficient, more expensive yet much more hyped other alternative energies of solar, wind, ethanol or biomass," said Martin Hennecke, an associate director at Tyche Group Ltd. in Hong Kong.
The rapid expansion in Asia stands in contrast to slower growth in Europe and the U.S. Viewed from Asia, the Western countries "appear to underestimate the importance of this sector and have been following a policy of disengagement in, or even outright phasing out of nuclear energy," he said.
In the U.S., no new nuclear plants have been built in decades. But climate-change concerns and accidents -- such as the oil spill fouling the Gulf of Mexico -- along with new government financing, have sparked renewed interest in nuclear.
Within Europe, countries that ban nuclear energy include Austria, Denmark and Ireland. Some countries that have been cool to nuclear, though, are showing renewed interest as technology improves. Nuclear-phase-out plans have been postponed in Belgium and put on hold in Germany, according to the WNA. And in one of the clearest signs of a nuclear-power renaissance sweeping the globe, some Swedes are striving to lift Stockholm's ban on new reactors. Read MarketWatch's story on the re-emergence of nuclear power.
In Asia, there is no phase-out policy in place for any of the countries operating civilian nuclear-power plants, and Japan, China, India, South Korea and Pakistan all have reactors currently under construction, according to the International Atomic Energy Agency. Their aggressive stance will likely put Asian nations in a "much stronger position than the West, and will soon become a fundamental pillar of their economic success," Hennecke said.
Powering up
Asia's growth in the nuclear-energy sector is already impressive. "Right now, the lion's share of nuclear growth is centered in Asia," said Alan McDonald, a nuclear-energy analyst at the IAEA.
Of the 11 reactor projects where construction started in 2009, 10 were in Asia -- and 36 of the 54 reactors now being built are in Asia, he said.
"Last year, we moved our projections for nuclear upward for the third year in a row, and the shift was the biggest in the Far East," McDonald said.
In East and South Asia, there are currently 112 nuclear-power reactors in operation, and 37 are under construction, according to the WNA. There are "firm plans" to build a further 84, while "many more are proposed," said Hore-Lacy.
"The comparative economics are favorable and [are] supported by considerations of energy security and clean air," he said.
"Asia is stepping up because they have the capital and the foresight," said Patrick Kerr, a managing director at Amerifutures Commodities and Options. Also, "Asian players are not being held back by outdated 'no nuke' rules and regulations which make opening a new nuclear facility in the U.S. a near-never-ending and costly effort."
Despite that, the U.S. remains the world's largest producer of nuclear power, and, following a 30-year period in which few new reactors were built, it's expected that between four and eight new units may come on line by 2018, according to the WNA.
But Asia is the growth leader.
"Because the Asia governments understand future energy needs of the globe, they are essentially partners with their industry players to bring safe, modern and efficient facilities on line," said Kerr. "Obviously, this makes it difficult for U.S. players to compete with Asian players."
Source: http://www.marketwatch.com/story/asia-powers-up-its-nuclear-ambitions-2010-05-20
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