green light for pm to go nuclear

This is from the NEWS.com this morning. Should help to support AGS and all uranium producers and hopefuls.


JOHN Howard's hand-picked nuclear energy taskforce will find that a nuclear industry could be commercially viable within 15 years, giving the green light to the Prime Minister to radically shake up Australia's energy market.

Former Telstra boss Ziggy Switkowski's review will also find the cost of nuclear power should come down dramatically as more global powers invest in the technology and the cost of fossil fuels go up.

Last night, Minister for Industry and Resources Ian Macfarlane said a 15-year timeframe was "very realistic", offering an optimistic assessment from the Howard Government on the way forward for nuclear power.

Mr Macfarlane also said a high-level report, to be released next week by the International Energy Agency, will give added weight to those backing nuclear power.

The release of Dr Switkowski's draft in two weeks will bolster Mr Howard's push to make nuclear power a central element of his election campaign.

The Government this week sharpened its policy differences with Labor on energy following the release in London on Tuesday of a report by former World Bank chief economist Nicholas Stern calling for more urgent co-ordinated action to tackle climate change.

The Opposition wants to ratify the existing Kyoto agreement, sign up to a global emissions trading system and give a stronger focus on renewable energy.

The Europe-based IEA, in its world energy outlook, will urge governments to speed up construction of new nuclear power plants, as part of the response to the climate change issue.

"No doubt it will give impetus (to the nuclear debate)," Mr Macfarlane said.

Mr Howard yesterday ruled out any approach to fighting climate change that strips Australia of its competitive advantage as a heavy user of carbon-based fossil fuels with rich deposits of coal and gas.

But nuclear power may be a partial solution, with the Switkowski review expected to find that the relative cost of nuclear power will come down amid a renewed focus worldwide on the technology driven by soaring energy needs and the fight against atmospheric pollution caused by fossil fuels.

While it will find nuclear power is not competitive on a cost basis with coal-based power generation today, it anticipates the costs of using carbon fuels will rise over the next decade as some sort of carbon price signal is implemented to slow global warming. It will say the Government could make a decision to move ahead with nuclear power now, even given the cost differentials, and "by the time the first reactor was (reliably) delivering electricity the cost differential would have almost disappeared", according to a source.

Earlier this week, Mr Howard gave a strong signal he expected nuclear to play a role in Australia's energy future, when nuclear power on the one hand became competitive with clean coal on the other.

"The point at which those two cross each other is, at this stage, impossible to precisely determine," he said. "When we have Ziggy Switkowski's report, we may have a better idea of where the two relate to each other."

The report is expected to give hope to nuclear proponents, who are already taking steps to bridge the skills gap Australia has in key nuclear fields with new university courses.

The inquiry's findings will be informed by the IEA report, due to be released in London on Tuesday, which will urge governments around the world to push nuclear as the only way to ensure energy security.

Yesterday the IEA's chief economist reportedly said governments needed to persuade reluctant voters that nuclear power was safe and necessary if the world was to get away from the "dirty and expensive" reliance on fossil fuels.

Mr Howard yesterday vowed to do all he could to fight climate change, short of anything that cost Australia its comparative economic advantages. "In order to reduce greenhouse gas emissions you have to adjust the use of all of those things where we have a comparative advantage, that is fossil fuels, because they're the basis of a lot of our wealth," he said.

"We've got to be very careful that the adjustment process doesn't unfairly disadvantage Australia.

"I am determined that it will happen in a way that our comparative advantage is protected.

"The cost to this country of losing our comparative advantage in things like gas and coal would be enormous, it would be jobs and investment lost."

Opposition resources spokesman Martin Ferguson said "nuclear power is an important part of the energy security and climate change debate for Europe, Asia and North America".

"That is why Australia's uranium is now so sought after ... Australia is energy rich. We are the envy of the world," he said. "The only energy security issue Australia has is in transport fuels and that's why this Government has got to get serious about converting our vast reserves of gas and coal into clean diesel."

Environment Minister Ian Campbell said Australia had led an international push to allow carbon to be stored under the sea floor.

"This Australian-led push will now enable carbon to be stored under the ocean floor in a safe, responsible and environmentally effective way, while potentially making a substantial contribution to reducing global greenhouse gas emissions," he said.