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By Spurgeon M. Keeny, Jr.
As one of the early acts of his Administration, President Carter in April 1977
issued a statement on nuclear policy that began with a commitment to defer
indefinitely the commercial reprocessing and recycling of plutonium. The
history of the past twenty years has dramatically demonstrated the wisdom of
this policy and underscored the need to continue on this course for the
foreseeable future.
President Carter's decision marked a distinct break from the conventional
wisdom inherited from the early days of the nuclear age that reprocessing of
plutonium leading to plutonium fuel cycle was the indispensable key to
achieving a plentiful supply of cheap nuclear power to meet the accelerating
global demand for electricity. Despite the demonstrated ability of nuclear
reactors to produce energy, the supply of natural uranium to provide fuel for
reactors was originally perceived to be in very short supply which underscored
the fact that with less than one percent (.007) of this natural uranium was in
the form of the isotope U-235 that sustained the energy-producing chain
reaction in the reactor. A solution to this highly inefficient utilization of
an apparently very limited resource was provided by the convenient fact that
the plutonium produced in a reactor by the capture of neutrons by the other
natural uranium isotope U-238, which makes up more than 99 percent of natural
uranium, is also a suitable fuel for reactors. Chemical separation of this
plutonium (by them same process used to obtain plutonium for weapons) makes
available more fissile material for use in reactors. Moreover, the physics is
such that these reactors can be designed to produce more fissile material than
they consume. These "breeders" can therefore in principle eventually consume
all of the U-238 in natural uranium and thereby increase production of energy
from a given amount of uranium by a factor of as much as 100. Caught up in the
enthusiasm of the new nuclear age, it was widely assumed that the solution of
this problem would simply be a relatively straightforward engineering exercise
that would lead to early introduction of plutonium reprocessing and breeder
reactors that would solve the world's energy problems.
Unfortunately, plutonium reprocessing and the resulting "plutonium economy"
presented with a serious new security problem by substantially increasing the
danger of proliferation of nuclear weapons. The technology of reprocessing
plutonium for civil reactors is the same as that for producing plutonium for
weapons. Moreover, with the passage of time it became increasingly clear that
even plutonium from civil reactors, operating in a normal fashion, could be
used to make nuclear weapons. The not very reassuring response to these
serious concerns was that the plutonium from civil reactors would not be as
good for weapons purposes as specially produced plutonium and that
International Atomic Energy Agency (IAEA) safeguards would give adequate
warning of any diversion of materials. Looking down the road, when breeders
enter the picture, each reactor might have an inventory of several tons of
plutonium, the equivalent of 1000 nuclear weapons. Even with the most
effective safeguards, a world in which tons of weapons useable plutonium are
being separated and shipped from place to place every year would create far
greater opportunities for nuclear theft and diversion.
Despite the promises of cheap and unlimited electric power, the U.S. nucleear
industry by mid-
1975 was in serious trouble, plagued by rapidly escalating costs multiplying
regulatory problems,
and increasing political opposition largely on environmental issues. At the
same time, the "energy
crisis" sparked by the oil embargo of 1973 and the subsequent quadrupling of
oil prices by OPEC
stimulated in concern over energy sufficiency and a temporary surge in spot
prices for uranium
from $8 to $40 a pound.
In this environment, the Nuclear Energy Policy Study Group, which was initiated
by McGeorge Bundy, President of the Ford Foundation (and former National
Security Advisor to President Kennedy), undertook a broad examination of the
role of nuclear power in the overall energy picture. The Study Group (of which
I was chairman) was made up of experts in related fields who had no conflicts
of interest and had not taken sides in the increasingly bitter debate over the
role of nuclear power. 'The group's findings were set forth in a major report,
"Nuclear Power Issues and Choices," which was released at the beginning of
1977.
In general, the Study Group concluded that despite its many serious problems,
nuclear energy would and should be a major source of electric power in the
future. The study, however, was extremely critical of much of the analysis on
which the future planning of the nuclear industry and governmental policy had
been based. For example, projections of power demand were vastly inflated and
capital costs, which are the largest factor in the economics of nuclear power,
were greatly underestimated.
The study was particularly critical of the estimates of the future availability
and cost of uranium, which is central to any decisions on the economic
viability of plutonium reprocessing and the need for and timing of breeder
reactors. Until the cost of uranium ore rises significantly, it is cheaper to
produce low enriched uranium from new ore than to separate plutonium from
previously irradiated fuel elements. The study concluded that, if uranium
followed the example of other minerals, the higher costs accompanying increased
demand would generate much larger supplies than previously forecast as it was
discovered that lower grade sources could be profitably exploited.
On the basis of more realistic estimates of uranium reserves and the capital
costs involved in plutonium reprocessing, the study concluded that "there is no
compelling reason at this time to introduce plutonium or to anticipate its
introduction in this century." Since the dangers associated with the plutonium
economy, in particular proliferation of nuclear weapons, were seen as far
outweighing any possible economic benefit under the most optimistic assumptions
for reprocessing the study recommended that a clear cut decision be made "to
defer indefinitely commercial reprocessing of plutonium." Such a positive
decision to defer was seen as having a major influence on the decisions of
other countries to pursue reprocessing while a decision to go ahead would
accelerate international interest in the dangerous plutonium fuel cycle.
Consequently, the study, recommended that the government not take over or
subsidize the Barnwell plutonium reprocessing facility which undertaken as a
commercial venture and was in serious economic and technical troubles.
Despite the inherent proliferation dangers associated with a future plutonium
economy, the
study concluded that a long term development program should continue as
insurance against the
possibility of very high energy costs in the future. Since the anticipated
availability of low cost
uranium indicated that this would not be the case for a long time, the study
concluded the on-going
very expensive program to demonstrate early commercialization of breeder
technology was premature and that the Clinch River Project, a prototype
demonstration reactor, could be canceled without harming the long term
prospects for breeders which might in fact never be needed if alternative
energy sources became available later in the next century.
At the time, reactions to the study were decidedly mixed. The nuclear industry
attacked it as an
unwarranted assault on the future of nuclear power. At the other extreme,
environmentalists and
anti-nuclear activists attacked it as being overly supportive of nuclear energy
as an important source
of electric power. What really mattered, however, was that President Carter,
who was briefed in the Cabinet room by the study group on its report soon after
he took office, was impressed by the study. Shortly after his briefing he gave
the Japanese Prime Minister a copy of the report with the comment that, if he
were to write a book on the subject, this would be it. Actually, while the
extensive independent analysis in the study brought the details of the issue to
public attention, many of the study's conclusions were already gaining
acceptance, including the recommendation that plutonium reprocessing be
indefinitely postponed. For example, President Ford of the eve of the 1976
election had stated that "reprocessing should not proceed unless there is sound
reason to conclude that the world community can overcome effectively the
associated risks of proliferation."
After Carter issued his statement in April 1977 deferring indefinitely
commercial reprocessing of plutonium, he initiated the International Nuclear
Fuel Cycle Evaluation (INFCE) Conference which sought to persuade the
international nuclear community that economics did not support reprocessing and
the plutonium fuel cycle. The United States moved too quickly on the issue and
was largely isolated at the conference by the other major players in nuclear
power, including: France, Germany, Japan, and the United Kingdom, all of which
vehemently rejected the abandonment of the plutonium fuel cycle option. All of
these countries continued to energetically pursue program involving plutonium
reprocessing and development of breeder reactors. Although, President Reagan
initially criticized Carter's nuclear power policies, for simple economic
reasons U.S. industry then as now was not interested in plutonium reprocessing
and breeders and in 1983 both the Barnwell reprocessing and the Clinch River
breeder project were finally terminated.
Now that 20 years have elapsed since the completion of our study and President
Carter's decision on plutonium reprocessing, it is useful to take stock of what
has happened in the interim to determine the validity of the analysis and the
wisdom of his decision. I believe the study has stood the test of time
extremely well and can only be faulted for having been too cautious in its
critique of the then conventional wisdom of the nuclear power community.
While correctly anticipating that nuclear power with its escalating capital costs
and regulatory problems would have difficulty competing with electric power
from conventional "fossil" fuels, the study did not anticipate that there would
in fact be no new orders for nuclear power plutonium in the United
States during the next twenty years. This amazing statistic relates to
orders for the well proven light water reactors using low enriched uranium.
Reactors using more expensive recycled plutonium or unproven advanced breeder
reactors would certainly have found no takers in this market.
With regard to uranium, the study was right on the mark in flagging the common
misconception about uranium supplies but again was overly cautious. In two
decades there have been no shortages of uranium and no increase in cost. In
fact, there is such an over supply of uranium that the cost today (about $12
per pound) is only fifty per cent greater than it was 25 years ago before the
energy of the early seventies. Thus, considering the 200 per cent inflation
rate that has accrued during this period, the real cost of uranium today is
less than half the price at that time and less than one tenth the cost at the
time of the study. It is dffficult to identify any other basic material whose
real cost has declined so precipitously. At present many uranium mines have
closed because they cannot compete at current prices and there is a worldwide
excess capacity of enrichment facilities to produce low enriched uranium for
standard light water reactors. In short, there is no economic reason to pay
subsidies that would be required to operate a plutonium fuel cycle.
With the end of the Cold War and the diminished direct military nuclear threat
from Russia,
the relative importance of nuclear proliferation markedly increased. The
wide-spread creation
of the technical infrastructure to produce plutonium as well as the global
traffic in plutonium in connection with the plutonium fuel cycle would greatly
increase the potential for nuclear proliferation. The problems now associated
with the potential leakage of plutonium from the Russian program could become
global in scope. Concern about a small plutonium processing plant in North
Korea stimulated a major confrontation that some highly regarded strategists
suggested justified preempting military action and led to a major high-risk
U.S. diplomatic initiative to eliminate a potential nuclear weapons program.
Currently, a major objective of U.S. foreign policy is to discourage Russian
and Chinese assistance to the nuclear program and in particular to make sure
that Iran does not obtain a plutonium reprocessing plant as part of any deal.
The pursuit of an unnecessary and wasteful plutonium economy is the last thing
we need in a world struggling to prevent further nuclear proliferation.
Despite these economic and political realities, the tight-knit nuclear power
industries in a number of countries, including France, Japan and Russia have
continued to pursue the plutonium reprocessing and the plutonium fuel cycle.
These countries have invested vast sums in breeder programs that have no chance
of succeeding in the foreseeable future. This obsession with uneconomic
solutions to the energy problems reflects institutional inertia, state
subsidized isolation from the market, and a technological fixation with
achieving the "holy grail'of nuclear technology through the breeder reactor,
regardless of cost.
In France the Superphoemx. a demonstration commercial breeder reactor, has been
a dramauc failure and, after a prolonged shut down for technical problems, has
been reoriented to a research role. In fuel-poor Japan, which is driven by a
deep rooted desire for energy self sufficiency going back to its
isolationist past and experience during the World War II blockade, a major
program based on plutonium economy and breeders, has serious technical and
economic problems-- and in the wake of recent accidents serious political
problems as well. In fuel rich Russia, whose nuclear program historically never
had any economic basis, grandiose paper plans for a plutonium fuel cycle
program are rapidly fading in the growing recognition that its economy cannot
even safely support its existing reactors, on which actual work has been halted
for many years.
An element of confusion has recently arisen in public perception of U.S. policy
toward the plutonium fuel cycle with the recent announcement that the U.S.
would use excess plutonium from eliminated nuclear weapons as MOX fuel in
commercial nuclear reactors. This was incorrectly hailed and denounced by
advocates and opponents of the nuclear fuel cycle. Actually, this activity has
nothing to do with plutonium reprocessing but is simply a medod of disposing of
existing separated plutonium by using it as a reactor fuel which once
irradiated will be no more accessible to recapture than plutonium from normal
spent fuel from commercial reactors. Significantly, even this "free"
plutonium is not competitive with low emiched uranium fuel and requires
significant subsidy.
With high confidence based on two decades of persuasive experience, the United
States should continue President Carter's sound economic and security policy of
deferring indefinitely the reprocesmg of plutonium in civil reactors.
Moreover, a renewed effort should be undertaken to build an international
consensus against an economically unjustified plutonium economy which entails
serious international security risks. While such an effort will continue to
meet resistance, one would hope that opposition will be considerably diminshed
from 1977 given the unanticipated difficulties that the opponents of the policy
have experienced over the last two decades.
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