Beebe wants part of potential nuclear energy resurgence

Editor’s note: This is the first of three stories resulting from a July 12 interview with Gov. Mike Beebe.

Less than five years ago, Arkansas’ top economic development officials saw no future in pursuing anything related to the potential resurgence in the nuclear power industry.

Gov. Mike Beebe claims a 180-degree shift in that opinion.

There is no doubt that the nuclear energy is poised for a return to growth that was halted in 1973 — halted by Three Mile Island and a resultant flurry of federal rules and regs that made new construction prohibitive.

Signs of renewed growth in the sector began appearing earlier this decade, with a high-level federal report issued in January 2005 noting: "(T)he need for new generating capacity over the coming decades, increased oil and natural gas prices, and societal concerns over greenhouse gas emissions have rekindled interest in nuclear power as a means of providing safe, clean and economical electricity generation.”

The report — “Moving Forward with Nuclear Power: Issues and Key Factors” — from the Nuclear Energy Task Force of the Secretary of Energy Advisory Board said then it was “imperative” that the federal government “create the environment and incentives” to revitalize the carbon-neutral and low-cost energy source.

"Indeed, if nuclear energy is to continue to provide 20 percent of our electrical supply, approximately 50 gigawatts (i.e., 50 new 1,000 megawatt reactors.) of new nuclear capacity will have to be constructed by 2030," the report states in its "Conclusions and Recommendations" chapter.

And, indeed, the federal government has provided those incentives. New and much safer nuclear technologies have been approved, with some of those technologies including “pocket” nuclear plants that are much smaller than those constructed prior to 1973. The federal stimulus bill included more than $36 billion in loan guarantees and other financial support for new nuclear plant construction. There are more than 25 applications for new nuclear plants before the U.S. Nuclear Regulatory Commission.

In May 2005, Alan McVeigh, deputy director of the Arkansas Economic Development Commission, said the state was not “contemplating at this time any incentive programs” or other efforts to encourage expansion of Arkansas’ nuclear energy industry or companies involved in providing components to the construction of new nuclear plants.

Russellville is the site of the Arkansas’ two nuclear reactors, which are owned and operated by Entergy. The operation employs about 900 and generates up to $100 million in annual payroll.

“We are in constant communication with people who are involved in the business … for every kind of energy installation that potentially could be proliferated across this country,” Beebe said when asked about recruiting manufacturers and service providers for the likely growth in the nuclear energy sector.

He says the approach is no different than with the wind sector. In that field, he knew Arkansas was not likely to land a wind farm, but he was not going to “cede” any ground “to any other state” in capturing the companies who manufacture wind component parts.

Between 2008 and 2010, five wind-energy related companies have located in Arkansas with more than 2,500 direct jobs expected from the new operations. Those operations are:
• Mitsubishi Power Systems Americas announced Oct. 16, 2009, it will build a $100 million wind turbine manufacturing plant on 90 acres at Fort Chaffee that will employ up to 400 once fully operational.
• Denmark-based LM Glasfiber opened in 2008 its windmill plant at the Port of Little Rock. The company expects to invest $150 million in Little Rock and announced a target employment of at least 630.
• Nordex USA Inc. announced in October it will build a $100 million wind turbine plant in Jonesboro. The operation is expected to employ 700 people in Jonesboro.
• Polymarin Composites USA and Wind Water Technology jointly announced a $20 million investment in a shared location in Little Rock. Both companies make windmill blades and turbines and are expected to hire about 830.
• Beckmann Volmer announced May 20, 2010, it would build a plant in Osceola to supply the Nordex plant in Jonesboro. Beckman said the plant could employ up to 300 when fully operational.

Beebe said it is his goal for Arkansas to also be a major player in the nuclear power sector and manufacture and ship nuke plant components to anywhere in the country.