M,
thats interesting as I would have thought that an ideal target payback would have been in the 2-4 year period, which is what got me scratching my head.
Weighing on the other side of this for Cougar though, is the notion that their project life will be much longer than this and as such should be able to derive a considerable benefit from their original capital investment. The ongoing costs of drilling and establishing new infrastructure for each reactor should be relatively small compared to the outlay for the power plant. Perhaps the net cost of drilling and new infrastructure over a 20-30 year period may be comparable to the intial outlay for the gas plant ...but the main advantage here is that the outlay for developing each reactor can be phased over the life and covered through income generation. A great concept for holders I think.
Getting past that first 5-7 year period will be the big challenge. What I can see though is that the environment will be an improving one as projects such as Cougars have a good chance of becoming 'favourable' as the cost per kgCO2/kWh will be better than from the extant generators. This means that Cougar will have a great chance to bite into both the peak and off peak markets. Well suited to Cougar as their operations are better run continuously.
Just some thoughts.. any other comments?
SF
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