AMERICAN INDUSTRIAL RENAISSANCE By Dale Reaves Golden, Colorado, USA
1
PURPOSE OF PAPER The purpose of this paper is to propose the development of an organization that would be capable of uniting American companies into a war effort mentality and most especially those involved with the nuclear energy industry, into a cohesive synergistic team to achieve energy independence for America in an orderly and timely fashion. The organization includes teams of qualified people for all the scientific, engineering and construction disciplines required to complete the development and oversee construction and fabrication thru to startup and on-grid generation. I support competition within industries, but by firms and groups working together with a common goal will allow funds for Research and Development, engineering and design to yield more results in a shorter time by working together and matching the objectives and action plans to the strengths of various firms. This is a unique opportunity at what I believe is a seminal moment in the history of America. What is done by industry and government at this time can set an example for other industries and establish a global presence in the marketplace and reestablish our stature of technological excellence and innovation. Eventually more prosperous nations can be instrumental in helping less fortunate countries develop nuclear energy for desalinization plants and projects for clean drinking water as well as providing energy required for economic development.
CURRENT CONDITION America is no longer admired as a leader and innovator in the development of new and innovative technologies. This is not just a short 2
run anomaly that we can work through; it is systemic and will require government, industry and academia working together to develop a thinking process and an understanding of productivity with quality products having intrinsic value in the global marketplace. This condition is true in many industries, but most noticeably with regard to the generation of electricity utilizing nuclear power. The most advanced reactor (Integral Fast Reactor with Pyro-processing) was developed by American scientists and engineers who are forced to sit on the sidelines due to either uninformed or misled politicians. Billions are spent on healthcare, and people are dying from pollution caused by the use of fossil fuels. China, India, Korea have recognized that nuclear power is the only way that future energy demands of this planet can be met, and are cutting through government red tape to speed the permitting and construction process. England recently cut time for permits from 7 years to 1 year. We are dependent on Near Eastern oil and send our young men to fight there and in Afghanistan to protect our sources of oil and to appease political interests. This and other factors cause us to spend $500 billion annually on national defense. The final cost of military operations will likely approach $1.5 trillion. China and India will have 1.2 billion people reaching the middle class lifestyle in the next 10 to 15 years and causing their demand for petroleum products to increase exponentially. We do not have the pocket book to engage in a biding war for oil as demand increases. The Clinton administration cut funding for the Generation IV Integral Fast Reactor on the basis of data provided by oil companies. Scientists were issued gag orders regarding its amazing capability of the integral reprocessing of fuel. Subsequent information from third party sources Conditions continued: Indicates reserves of gas and oil to be far less than reported. In fact, given the latest information and forecasted consumption rates we are 3
reaching a critical point and must move immediately with a national policy and funding for nuclear power and upgrading the national grid. STATEMENT OF OBJECTIVES OBJECTIVE I End a significant cash flow out of our country and our dependence on Near Eastern oil. Eliminate the related political and military entanglements as quickly as possible. Our current policy in Iraq and Afghanistan cannot be pursued with China and India who will be shopping for oil with a fat wallet as their middle class grows. OBJECTIVE II Restore America’s reputation and position in the global economy as a team player and leader by focusing our industries and academia on the concepts of quality with productivity, advanced technology and intrinsic value of products in the marketplace., OBJECTIVE III Move as quickly as possible toward implementation of the action items enumerated in John Shanahan’s the Holdren Letter, and Ted Rockwell’s letter to President Obama dated July 4th 2010. Most specifically finalize any design or engineering immediately. Complete any testing required to get the Integral Fast Reactor with Pyro-processing under construction and on line by ……..? The soonest possible date. Fast tracking design/development with construction (following the Implementation strategy discussed in the next section) is the quickest way to get the project moving. There would be an immediate requirement for information defining support requirements. IMPLEMENTATION STRATEGY This proposal is a fast track approach that is not uncommon in industry, but will possibly exceed many peoples acceptable level of risk. The risk 4
factor being determined by how quickly the design and engineering on IFR with pyro-processing can be completed. All three objectives can be satisfied by one completed project that will draw positive press and public support. MAJOR PREMISE The following outline provides some thoughts for action plans given the objective of starting a business with an organization and strategy required to compete and excel in the global market place. The due diligence required in each area or discipline is similar to requirements for an R&D firm with a high tech product base with a notable exception. Determining just where everyone was with their pieces of the puzzle, and getting notes and formulas into computers to aid communication and maximize computational capability.
DEFINITION OF BUSINESS The business definition and product base of goods and services should be broad to allow growth in many areas supporting the energy industry. Be in a growth mode looking for opportunities for new products and services. Grow the firm through acquisitions that eliminate competition, improve financial performance or attain skills and/or technology. Acquisitions must be negotiated and personnel assimilated to create benefits to all parties. Develop, produce and construct state of the art nuclear power plants of the fast neutron type with integrated pyro processing of waste radioactive materials. Power companies in the USA to be the primary target market. Jobs will be on a “turnkey� basis, including the training of all operating personnel. Definition of Business continued. Market innovative products and license to manufacture for the all industries, both here and abroad. Some possibilities are developing 5
standardized quick disconnect parts and assemblies with remote, wireless activation. Develop rapid access and egress electrical and mechanical cabinets. Develop fail- safe wireless controls with redundancy.
THE TEAM I consider the capitalistic economic model with a somewhat regulated free market economy that is practiced with morality and good business ethics in addition to a government policy that is part of the solution will yield the best overall performance in any situation. The entity to implement the plan to bring about the Nuclear Renaissance can be called the “AERD” Team. American Energy Research & Development. It would be comprised of the “original” team members who are able and willing to participate as group leaders. Its actual status with the world at large is unknown at this time. Organization, objectives and strategies and team detail will follow.
MENTOR PROGRAM The original team members will hopefully be agreeable to mentoring some of the next generation of scientists and engineers and selecting his or her successor. A formal mentoring program should be developed that defines development goals and methods of assessment, including peer reviews. Actual staffing requirements are to be determined.
6
GROUPS There should be a group for each of the scientific and engineering disciplines. The actual number and designation for these groups is unknown at this time, and the following groups are hypothetical: Reactor Reactor interface & support Building & Process Facilities Advanced Technology Material Testing Pyro processing and fuel support Fuel acquisition Safety & Security Data Control and Encryption Field Operations Project Management Planning & Logistics Financial control Public Information & Protocol
THE CUSTOMER The first entity needed is a customer that requires some new equipment that is that is up-to-date, reliable, safe and able to provide their product (electricity, or electricity and steam) to the market place in the quantity needed at a competitive price. 7
Customer continued: The customers I am speaking about are in abundance throughout America. The Public Utility companies. The particular company I believe is a viable candidate for inclusion into this proposal is XXXXX Energy According to the World Nuclear Organization data base XXXXX Energy is currently operating two reactors in other states. They have a gutsy local management team that is not afraid to try something new, and are currently negotiating with a supplier of natural gas in order to convert their coal fired boilers over to natural gas which will take several years and millions of dollars. But most importantly is that they have practical, hands on nuclear experience with permits, and regulations and construction. They have reports full of data and Information that is useful to understand the components of cost and their behavior with respect to various operating conditions and anomalies. They can participate in developing cost and economic models to forecast cash flow and what the overall economic benefit is for America and American workers.
8