An applicant for a new nuclear reactor in Maryland was last week purchased by a subsidiary of Warren Buffet's Berkshire Hathaway group.
Constellation Energy Group agreed to sell all its outstanding shares to Buffet's MidAmerican Energy Holdings Company (MEHC) in a deal worth $4.7bn in cash and $1bn in stock.
Constellation had applied to the Nuclear Regulatory Commission to install a third reactor at its Calvert Cliffs, Maryland, nuclear power plant. The application was lodged along with Unistar Nuclear Energy, a joint venture with French reactor builder EDF, which had also been expected to purchase Constellation.
A final environmental impact statement was due to be issued to the Environmental Protection Agency in March 2010, after which a mandatory hearing and decision on the licence would have been conducted.
Berkshire Hathaway is a cash-rich company, and will acquire five reactors providing roughly 3.7 per cent of the United States' nuclear energy capacity through the deal. MEHC president Gregory E. Abel praised Constellation's " premier fleet of nuclear assets".
However, in January MEHC subsidiary MidAmerican Nuclear Energy Company, which was set up to analyse the economic viability of nuclear energy, essentially dismissed nuclear as an option in Idaho. It decided not to proceed with a nuclear reactor there, citing economic considerations. "The company's due diligence process has led to the conclusion that it does not make economic sense to pursue the project at this time," it said in an announcement.
"When Warren Buffet looked at building new nuclear plants in Idaho, they dropped it like a hot potato," said Paul Gunter, director of the reactor oversight programme at non-profit anti-nuclear group Beyond Nuclear.
Gunter questioned the viability of nuclear power projects - which were promised some support under the Energy Policy Act of 2005 - in the current financial climate. Other critics have noted that Constellation was tied financially to Lehman Brothers Holdings - a fact which resulted in a slump in its share price ahead of last week's takeover.
Constellation Energy Group did not return calls on Friday asking about the reactor's future.
Nuclear power is undergoing something of a renaissance in the US, where both presidential candidates have signalled that it will form a key component of their strategies for curbing carbon emissions.
Green group writes to Ed Miliband expressing concern E.ON could be pre-empting planning decision with work at nuclear site 27 Jul 2009
Friends of the Earth warns government that draft national policy statements could face legal action 22 Jan 2010
British Gas owner confirms it is to buy stake in EDF's UK nuclear arm in a move the company says will bolster its green credentials 11 May 2009
Green jobs are proving to be an economic lynchpin, in spite of a traditionally hands-off public policy, says a new report 12 Jun 2009Long-awaited National Policy Statements will allow nuclear industry to start planning new build 22 Oct 2009
Desert tortoise fears allayed? 19 Mar 2010
Cameron presents pre-election energy policy, promising greater investment certainty for low-carbon projects, green loans for households, and streamlining of planning system 19 Mar 2010
Joint statement from carbon exchange and Hungarian government aims to restore confidence in CER market 19 Mar 2010
More news
From climate change contrarians to the "KitKatastrophe" of Nestle's palm oil policy, we look at the best the green web has to offer this week 19 Mar 2010
"It needs the political enthusiasm that was behind the war on terror after 9/11" 19 Mar 2010
From the government's plans for a marine energy revolution to John Lewis' proposals for an off-grid supermarket 19 Mar 2010 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
