Tuesday, October 12, 2021

Subsidiarity Economics. The times more or less locally, Part IV

  


TerraPower, Wyoming Governor and PacifiCorp announce efforts to advance nuclear technology in Wyoming

Natrium™ Reactor Demonstration Project will bring new energy development and jobs to the state

 

CHEYENNE, Wyo. –  TerraPower and PacifiCorp, today announced efforts to advance a Natrium™ reactor demonstration project at a retiring coal plant in Wyoming. The companies are evaluating several potential locations in the state.

“I am thrilled to see Wyoming selected for this demonstration pilot project, as our great state is the perfect place for this type of innovative utility facility and our coal-experienced workforce is looking forward to the jobs this project will provide,” said Wyoming Governor Mark Gordon. “I have always supported an all-of-the-above energy portfolio for our electric utilities. Our state continues to pave the way for the future of energy, and Wyoming should be the place where innovative energy technologies are taken to commercialization."

The development of a nuclear energy facility will bring welcome tax revenue to Wyoming’s state budget, which has seen a significant decline in recent years. This demonstration project creates opportunities for both PacifiCorp and local communities to provide well-paying and long-term jobs for workers in Wyoming communities that have decades of energy expertise.

“This project is an exciting economic opportunity for Wyoming. Siting a Natrium advanced reactor at a retiring Wyoming coal plant could ensure that a formerly productive coal generation site continues to produce reliable power for our customers,” said Gary Hoogeveen, president and CEO of Rocky Mountain Power, a business unit of PacifiCorp. “We are currently conducting joint due diligence to ensure this opportunity is cost-effective for our customers and a great fit for Wyoming and the communities we serve.”

“I commend Rocky Mountain Power for joining with TerraPower in helping Wyoming develop solutions so that our communities remain viable and continue to thrive in a changing economy, while keeping the state at the forefront of energy solutions,” said Wyoming Senate President Dan Dockstader.

“Wyoming has long been a headwaters state for baseload energy. This role is proving to be ever more important. This effort takes partnerships, and we welcome those willing to step up and embrace these opportunities with us,” said Wyoming Speaker of the House Eric Barlow.

The location of the Natrium demonstration plant is expected to be announced by the end of 2021. The demonstration project is intended to validate the design, construction and operational features of the Natrium technology, which is a TerraPower and GE Hitachi technology.

“Together with PacifiCorp, we’re creating the energy grid of the future where advanced nuclear technologies provide good-paying jobs and clean energy for years to come,” said Chris Levesque, president and CEO of TerraPower. “The Natrium technology was designed to solve a challenge utilities face as they work to enhance grid reliability and stability while meeting decarbonization and emissions-reduction goals.”

Wyoming’s Governor Gordon committed in early 2021 to lead the state in becoming carbon net negative while continuing to use fossil fuels through the advancement and utilization of next-generation technologies that can provide baseload power to the grid, including nuclear and carbon capture solutions. Wyoming is the largest net energy exporter in the United States and finding carbon solutions will ensure the state continues to provide energy to consumers across the nation while decreasing CO2 emissions.

In October 2020, the U.S. Department of Energy (DOE), through its Advanced Reactor Demonstration Program (ARDP), awarded TerraPower $80 million in initial funding to demonstrate the Natrium technology. TerraPower signed the cooperative agreement with DOE in May 2021. Next steps include further project evaluation, education and outreach as well as state and federal regulatory approvals, prior to the acquisition of a Natrium facility.

Learn more about this project and the Natrium technology at wyadvancedenergy.com

Allow me to note, you heard it here first.

I've been advocating this for several years.

This is, quite frankly, a major event.  This signals, whether people wish to realize it or not, the state realizing that a new economic era has arrived, and the state needs to plan on that basis.  It also acknowledges the reality that if the US is to have a carbon neutral economy, as it claims, and no matter what you think of that, nuclear is not only part and parcel of that, it's central to it.

June 3, 2021

More on this big (and it is big) story.

The move is in association with Bill Gates' and Warren Buffett's Terra Power and is clearly part of their push for green energy.  It's slated to begin producing electricity in 2028, which is remarkable for a facility whose location has not yet been chosen, although some potential sites, including Glenrock, have been mentioned.

The reactor would be a Natrium small modular reactor, which is much smaller than the large nuclear reactors we're familiar with, such as those depicted above.   These smaller reactors are designed specifically to replace coal-fired plants by using part of an existing coal power plants cooling system.

June 11, 2021

A Federal Court suspended drilling on 630 square miles of Federal lands in Montana and Wyoming for the BLM failing to comply with NEPA in regard to sage chickens when the leases were issued.

Fire season commenced all over the state this past week as temperatures soared into the 90s.

Yellowstone introduced driverless electric shuttles.

June 15, 2021

The price of oil is up over $70.00/bbl, a recent high.

While this is good for Wyoming, there's every sign that the economy is overheating and entering an inflationary stage, in spite of the Biden Administration's early indications that this wouldn't happen.  At the same time, there's an increasing labor shortage caused, in part, by laid off workers refusing to return to their pre COVID jobs.

June 16, 2021

Practically buried in all of the other news and entertainment, the G7 agreed to forego extending loans to coal firepower plant construction.

A Federal Judge declared President Biden's executive order suspension on new oil and gas leases blocked.   While not having read this opinion, as Presidents can classically withdraw Federal lands from entry, I suspect this will ultimately be reversed, but not before numerous additional leases are issued.

June 26, 2021

The new nuclear power plant planned for Wyoming is estimated to create up to 3,000 construction jobs and perhaps up to 400 full time jobs.

June 28, 2021

The Shoshone and Arapaho Tribes have taken over production on their Circle Ridge oilfield directly.  In doing so, they've noted that it is their view that fossil fuels are on the way out.

June 28, 2021, cont.

And. . . 

Supreme Court deals final blow to Wyoming coal port suit

presumably, nobody was surprised.

Headline from the Trib.

At least we weren't, as we were predicting an end unfavorable to the state for, well, forever.

July 9, 2021

Natrona County approved a wind farm to go in north of town.

The event was notable for the opposition it drew which puts a spotlight on how this debate has evolved over time.  Early on, many of those closely associated with the extractive industries, or those who just had a traditional view of energy generation, dismissed wind farms as inefficient and something that would never really get rolling. At the same time, there were those who opposed them based upon their ascetics, or based upon the threat they pose to birds.

Since that time wind turbines have become much more efficient and even though people hate to admit it, they can now compete with coal-fired electrical generation.  This has caused the debate to shift among some people, and it's taken on a political right/left aspect to it in some quarters, much like everything else in the country right now. Just recently, for example, Senatorial candidate Chuck Gray blamed wind turbines for the mid-winter power outages in Texas.

Given this, it isn't too surprising that the proposed wind farm drew some opposition, indeed quite a bit of it.  One Natrona County Commissioner claimed he "despise[d]" renewable energy, even though he felt the application had met the criteria and voted for it.  It's hard to imagine anyone despising renewable energy and I suspect that wasn't really what he meant, but there is a lot of opposition to it.

In contrast, a Converse County Commissioner came to speak in favor of it, noting that recent wind farm construction in his county had been an economic life raft during the recent oilfield slow down.  The airport testified against the wind farm out of safety concerns, but apparently the FAA had found there were none.

Personally, it's hard to see wind turbines as ascetically pleasing, but there are at least two wind farms visible from the city already, which makes the view shed argument somewhat difficult.

July 13, 2021

Plains Tires, a Wyoming tire retail company with stores around the state, has been bought by Les Schwab Tire Centers, a larger company with 500 stores across the west.

Plains Tires was founded in 1941.

July 15, 2021

The state's coal production fell 21% in 2020.

July 20, 2021

Governor Signs Temporary Executive Order to help Alleviate Fuel Shortages

CHEYENNE, Wyo. –  To help prevent potential gasoline, diesel and aviation fuel shortages, Governor Mark Gordon has signed an Executive Order (EO) that puts in place temporary emergency rules for the Wyoming Department of Transportation allowing drivers to make extra fuel deliveries.

The order is effective July 20 through August 20.

Demand for fuel has increased due to post-pandemic travel in the United States, with increases in travel and tourism seen throughout the state. In addition, an early fire season has resulted in increased fire suppression efforts which have also impacted demand for various fuels across the western United States.

“It is critical that we have adequate fuel supplies. This is particularly necessary for air support during this fire season,” Governor Gordon said. “These emergency rules will help increase fuel deliveries without potentially harmful delays.”

The emergency rule suspends regulations on driving hours to allow drivers to meet the increased demand for fuel, but still indicates drivers cannot be on the road when they are fatigued. Fuel delivery companies are specifically asked to take extra precautions to ensure the safety of both the public and company drivers.

This order applies specifically to drivers bringing gasoline, diesel or aviation fuel to Wyoming or doing in-state deliveries. The order also aligns Wyoming with other surrounding states, which have implemented similar executive orders.

For questions pertaining to enforcement, contact Wyoming Highway Patrol Lt. Dustin Ragon at 777-4872.

A copy of the Executive Order is attached and may be found on the Governor’s website. 

July 24, 2021

I'm constantly hearing around here that electric vehicles will never really come to Wyoming as their just not suited for the state. 

Never mind that nobody on the plant really makes vehicles for Wyoming.  Indeed, if that were the case we'd all be driving the Toyota Hilux as it's about the last pickup made on Earth that's really rugged in the old-fashioned Dodge Power Wagon sense. But even the "no electric truck" argument just doesn't hold water.

Ford here make a pitch that the day of the electric pickup has arrived, starting off with a cowboy in their advertisement.

There’s a New Revolution Starting

I know that this isn't a popular view around here.  The state just completed an always doomed effort to force Pacific coast states to have a coal port against their will.  A political ad that's now running claims one politician "saved our coal jobs".

Well, things are definitely changing and we need to prepare for it.

July 30, 2021

Two large Wyoming coal producers have asked for royalty reductions.

August 3, 2021

The University of Wyoming is seeking to use American Recovery Plan Act funds to fund its restructing.

August 20, 2021

Gillette Community College will become its own district, with large scale support of area voters in a special election.

August 28, 2021

PacificCorp announced plans to retire all of its coal-fired power plants by 2040, with the majority retired by 2030.

September 1, 2021

The moratorium on Federal oil and gas leases will end in December.

September 2, 2021

County health is predicting a rise in labor shortages locally due to an increase of school related COVID 19 cases, as parents return home to take care of sick children.

September 11, 2021

Harvard University announced that it will not invest in fossil fuels and will wind down its existing legacy investments.

As an isolated matter, this probably doesn't matter much, but it recalls similar acts concerning investment in South Africa which did contribute to the end of the apartheid era.  If this becomes a larger movement, it could become significant.

September 15, 2021

Taking a page out of Wyoming's "sue 'em" book, Vermont has sued four oil companies, alleging that they have misled the public on global warming.

There's no reason to believe that Vermont was inspired by Wyoming's recent coal port lawsuits, but the danger of such actions is made apparent by this.  The doors of the courts, of course, are open to all.

September 20, 2021

The Bureau of Land Management is moving its  headquarters back to Washington D.C.

September 21, 2021

Bridger coal is closing it's underground mine in Wyoming. This will result in the loss of about 100 jobs.

October 6, 2021

The International Council on Mining and Metals, a mining organization, has committed to zero green house gas emissions by 2050.

Delta receives a subsidty to continue serving the Natrona County International Airport

October, 6 cont:

Updates for October, 2021

 

October 6, 2021.  Governor Gordon visits US/Mexico border.

October 7, 2021

As a followup to the above, although not exactly on topic, the Governors involved in the border meeting issued the following plan regarding the border crisis:

JOINT POLICY FRAMEWORK ON THE BORDER CRISIS 10 Policies to Protect America, Restore Security, and End the Crisis

1. Continue Title 42 public health restrictions: The Biden Administration should continue to invoke Title 42 to refuse entry to individuals coming into the country due to the COVID-19 public health risk, which was initially issued by the previous administration. Title 42 currently expels approximately 44% of apprehensions. In July, more than 18% of migrant families and 20% of unaccompanied minors tested positive for COVID-19 upon being released from Border Patrol custody. Reports estimate that the Biden Administration has placed approximately 40,000 COVID-19 positive migrants into American cities.

2. Fully reinstate the Migrant Protection Protocols: The Biden Administration should comply with recent federal court rulings and fully reinstate the Migrant Protection Protocols (MPP) established by the prior administration, which require asylum seekers to return to Mexico to await their court hearing outside of the United States, serving as a deterrent to cross. Upon taking office, President Biden issued a directive to terminate the MPP, and although litigation may continue, the Biden Administration should halt any attempts to appeal and fully reinstate the policy.

3. Finish securing the border: The Biden Administration should reopen construction contracts to continue building the border wall and invest in infrastructure and technology, such as lights, sensors, or access roads, to complete the border security system. Upon taking office, President Biden terminated the national emergency at the border, stopped all border construction, and redirected funds to build the wall.

4. End catch and release: The Biden Administration should end the Obama-era policy of catching and releasing apprehended migrants into U.S. cities along the South Texas border, leaving illegal immigrants paroled and able to travel anywhere in the country. Upon taking office, President Biden issued an Executive Order reinstating catch and release policies that incentivize illegal immigration and make deportation laws difficult to enforce.

5. Clear the judicial backlog: The Biden Administration should dedicate additional judges and resources to our U.S. immigration courts to end the growing backlog and expedite court appearances for illegal migrants. Reports indicate backlogged cases total more than 1 million, the most ever.

6. Resume the deportation of all criminals: The Biden Administration should enforce all deportation laws of criminally convicted illegal aliens. Upon taking office, President Biden issued an Executive Order ordering the U.S. Immigration and Customs Enforcement to prioritize only the deportation of aggravated felons, gang members, or terrorists, leaving other criminals to remain in the United States.

7. Dedicate federal resources to eradicate human trafficking and drug trafficking: Due to the rapid increase of cartel activity, the Biden Administration should dedicate additional resources to eradicate the surge in human trafficking and drug trafficking, arrest offenders, support victims, and get dangerous drugs—like fentanyl and methamphetamine—off our streets.

8. Re-enter all agreements with our Northern Triangle partners and Mexico: President Biden should re-enter the prior administration’s agreement with the Northern Triangle countries (El Salvador, Guatemala, and Honduras) and Mexico. The countries agreed to enforce their respective borders, fix their asylum systems, and receive migrants seeking asylum before they journey north to the United States. Upon taking office, President Biden issued an Executive Order terminating the agreements.

9. Send a clear message to potential migrants: President Biden, Vice President Harris, and Biden Administration officials at every level should state clearly and unequivocally that our country’s borders are not open and that migrants seeking economic opportunity should not attempt to abuse or misuse the asylum process. Prior to and after taking office, President Biden blatantly encouraged illegal immigrants to come to the United States.

10. Deploy more federal law enforcement officers: Due to overwhelming needs at the border, the Biden Administration should deploy more and provide greater resources to U.S. Customs and Border Protection officers and U.S. Immigration and Customs Enforcement agents. Due to a lack of federal resources, Arizona and Texas have had to initiate an Emergency Management Assistance Compact to request law enforcement resources directly from states, receiving offers from eight states, to arrest and detain illegal trespassers.

October 9, 2021

A global agreement has been reached on an international corporate minimum tax of 15%.  The agreement will have to pass Congress before it becomes law in the United States, something which the nearly evenly divided Senate will make difficult.

October 10, 2021

The budget reconciliation bill before Congress contains a provision for an 8% royalty on minerals extracted from Federal lands under the Mining Law of 1872 and related provisions.  Right now, such extraction is Federal royalty free and always has been.

October 12, 2021

Oil is up over $80.00 a barrel

Prior threads:

Subsidiarity Economics. The times more or less locally, Part III





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