Jack, Policy makers and what content is to still stay in USA, for the LPDs. I'm assuming this not that simple to think of this as a Commerical problem, more of a circular industry and employment of US Citizens.
Kill the Jones act and make shipyards compete, and then this problem will go away. It would be disruptive for sure, but the US would be way better off for it.
Yes, the Jones Act must go. but that won't save the US yards. They've been ruined by the US Navy. You can't do things the Navy way, and at the same time be commercially competitive. Newport News had the sense to recognize this. During a tanker market boom, they decided they could build foreign flag tankers profitably. But to do so they set up an entirely new yard adjacent to the existing Navy yard, gave the new yard, its own management, and put a big fence between the new yard and the old yard. But by the time thye had built two ships, the tanker market was in slump. The new yard had no business. So they tore down the fence, and went back to their sugar daddy, Uncle Sam to fill the now larger naval yard.
Getting back in shape is hard after years of being a couch potato... the temptation to just watch Netflix and eat ice cream will always be there. (Yes this is a weird metaphor...)
It goes much deeper than the Jones Act. Their's OSHA, EPA, a maze of local permitting, activist intervenors. After the LPD fiasco, Northrup Grumman decide to shut down the Avondale yard. and tried to sell it. Samsung was interested and sent a team to look at the yard. They were surprised to learn that the wage rates on the Gulf Coast were less than they were paying at home. But they decided to pass. All the other issues were just too daunting.
Fun story and telling. My DIRECT experience in the LWR business is that the variability in quality was customer-driven and not regulatory. While you are speaking of one customer, it applies to whole industries. I would surmise there are people for whom a good lawnmower is ready for the heap in 2-3 years while others get 20+ years. The manufacturing matters of course but so does the customer.
The source is Lochbaum, All Things Nuclear, Fission Story 169, August, 2014. Lochbaum was working for the UCS at the time but he is a nuclear engineer and usually has his numbers right. Usually, the PDF version is far better referenced than the HTML. You should be able to get to the PDF version thru the site directory.
Jack, Policy makers and what content is to still stay in USA, for the LPDs. I'm assuming this not that simple to think of this as a Commerical problem, more of a circular industry and employment of US Citizens.
Kill the Jones act and make shipyards compete, and then this problem will go away. It would be disruptive for sure, but the US would be way better off for it.
Yes, the Jones Act must go. but that won't save the US yards. They've been ruined by the US Navy. You can't do things the Navy way, and at the same time be commercially competitive. Newport News had the sense to recognize this. During a tanker market boom, they decided they could build foreign flag tankers profitably. But to do so they set up an entirely new yard adjacent to the existing Navy yard, gave the new yard, its own management, and put a big fence between the new yard and the old yard. But by the time thye had built two ships, the tanker market was in slump. The new yard had no business. So they tore down the fence, and went back to their sugar daddy, Uncle Sam to fill the now larger naval yard.
Getting back in shape is hard after years of being a couch potato... the temptation to just watch Netflix and eat ice cream will always be there. (Yes this is a weird metaphor...)
It goes much deeper than the Jones Act. Their's OSHA, EPA, a maze of local permitting, activist intervenors. After the LPD fiasco, Northrup Grumman decide to shut down the Avondale yard. and tried to sell it. Samsung was interested and sent a team to look at the yard. They were surprised to learn that the wage rates on the Gulf Coast were less than they were paying at home. But they decided to pass. All the other issues were just too daunting.
Wow. This means a backup diesel generator for a nuclear plant comes with a 99 million dollar piece of paper. That is insane.
Fun story and telling. My DIRECT experience in the LWR business is that the variability in quality was customer-driven and not regulatory. While you are speaking of one customer, it applies to whole industries. I would surmise there are people for whom a good lawnmower is ready for the heap in 2-3 years while others get 20+ years. The manufacturing matters of course but so does the customer.
Hello Jack,
Could you like a source to the 100 million backup diesel generator?
Soje,
The source is Lochbaum, All Things Nuclear, Fission Story 169, August, 2014. Lochbaum was working for the UCS at the time but he is a nuclear engineer and usually has his numbers right. Usually, the PDF version is far better referenced than the HTML. You should be able to get to the PDF version thru the site directory.