Nuclear Power in Australia

Ananya Ganesh
March 22, 2024

Submitted as coursework for PH241, Stanford University, Winter 2024

Introduction:

Fig. 1: Australia's Northern Territory Uranium Deposits. [10] (Courtesy of the USGS. Source: Wikimedia Commons)

Australia, a vast continent-country, relies heavily on coal and natural gas for energy, largely driven by its coal mining industry. In 2022, coal constituted 49% of electricity generation a decline of almost 20% over the past decade. Despite its vast size, Australia's population is concentrated on the coasts due to limited fertile soil. Although lacking in surface-level resources, the country possesses around one-third of the world's uranium deposits. Australian uranium is prized for its quality and political stability. Despite this resource wealth, Australia does not utilize nuclear power, which has intrigued both foreign and domestic interests. Nuclear energy offers several potential benefits for Australia. It is a low-carbon energy source that can contribute to reducing greenhouse gas emissions, thereby addressing climate change concerns. Nuclear power plants can provide baseload electricity, offering stability to the grid and complementing intermittent renewable energy sources like wind and solar. Additionally, nuclear energy could enhance energy security by diversifying the country's energy sources and reducing reliance on imported and native fossil fuels. [1,2]

Current Nuclear Power Production in Australia:

Australia currently relies predominantly on coal and gas for its energy needs, with no operational nuclear power plants and limited nuclear infrastructure. Safety concerns stemming from historical nuclear accidents, such as Three Mile Island and Chernobyl, have influenced Australia's energy policy, favoring coal due to its perceived reliability. Despite this, there are environmental benefits to nuclear power, including reduced air pollution.

Nuclear power plays a negligible role in Australia's energy supply, with no nuclear reactors currently operational and a government-enforced ban on their construction. Despite the country's abundant uranium resources, efforts to utilize nuclear energy domestically have faced significant hurdles. A 2006 report suggested that nuclear reactors could fulfill a substantial portion of Australia's electricity needs by 2050, but currently no progress has materialized. Economic and labor concerns, along with the politically charged nature of the issue, have hindered the development of nuclear power within the country.

Australia is a major exporter of uranium oxide, which is processed abroad for use in nuclear power plants. Ranking first for uranium resources globally, Australia was the world's fourth-largest producer in 2022. The International Energy Agency (IEA) measures nuclear fuel energy based on the heat content of steam produced in reactors. Since Australia lacks nuclear power generation, uranium oxide isn't included in the country's primary energy production calculations. Following the closure of the Ranger mine in 2021, uranium oxide production dropped by 28% in 2022 to 4,485 tonnes, marking the lowest level since 1995. [3]

The main arguments against nuclear power in Australia include the lengthy timeframe for industry development and public perception of nuclear risks. Nonetheless, emerging technologies, such as factory-built reactors with improved safety features, suggest a potential transformation in the electricity sector. [4-6]

Future of Nuclear Power in Australia

Australia has a comprehensive regulatory framework governing the nuclear industry, overseen by the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) and other relevant agencies. Any decision to introduce nuclear energy for electricity generation would require amendments to existing legislation and the development of specific regulatory frameworks for licensing, safety standards, and waste management. Policy considerations must address public concerns, economic viability, and long-term environmental impacts. Recently, the Coalition in Australia has announced plans to explore nuclear power as a replacement for soon-to-be-closed coal plants, a shift from previous skepticism. However, experts raise concerns about feasibility, timing, and costs. The proposal includes both conventional large-scale reactors and small modular reactors (SMRs), with challenges including regulatory frameworks, construction delays, and potential costs. The energy transition towards renewables and storage is already underway, with nuclear seen as economically unviable without significant subsidies. Concerns about water usage, grid integration, and site availability complicate the nuclear proposal. While supporters argue for keeping nuclear as an option for the future, critics emphasize the economic and logistical challenges, urging a focus on renewable energy instead.

Australia stands out as a significant emitter of pollution, heavily reliant on fossil fuels, particularly coal. Despite international pressure, Australia's 2030 emissions target of a 26% cut from 2005 levels falls short compared to benchmarks set by the US and UK. [7] The nation has also resisted committing to net zero emissions by 2050. [7,8] Australia's coal industry remains a cornerstone of the economy, with coal being the country's second-largest export, totaling Aus $55 billion (~ USD $36 billion) in 2020. However, most of this wealth is retained by mining companies, contributing only about 1% to national revenue. The coal workforce of 40,000 is about half the size of McDonald's in Australia. [7] Despite dwindling global demand for coal, Australia has 99 operating coal mines and ambitions to build more. The government's support for the coal industry includes approving over 80 proposed projects, providing about Aus $10 billion in tax subsidies to fossil fuel companies, and investing in controversial "clean coal" technologies. [7] While Australia touts continued demand for coal in Asia, analysts argue that the long-term market for coal is diminishing as countries prioritize emissions reduction. Australia's reluctance to transition away from coal to renewable energy sources is viewed as a missed opportunity, given the country's abundant natural resources. Critics argue that Australia's allegiance to fossil fuels not only undermines efforts to combat climate change but also jeopardizes its economic prospects. [4,5,7-9]

Conclusion

Australia stands at a critical juncture in its energy landscape, with nuclear power emerging as a topic of debate amidst the nation's reliance on coal and gas. Despite possessing substantial uranium resources, Australia has yet to fully embrace nuclear energy domestically. While nuclear power presents potential benefits such as low-carbon electricity generation and enhanced energy security, significant barriers including safety concerns, economic viability, and public perception hinder its adoption. The closure of the Ranger mine in 2021 and the subsequent decline in uranium oxide production underscore the challenges facing the nuclear sector in Australia. Regulatory frameworks, safety standards, and waste management protocols must be carefully developed and implemented to ensure the safe and responsible deployment of nuclear energy. Recent discussions within the Australian government signal a shift towards considering nuclear power as a viable alternative to coal, albeit with uncertainties surrounding feasibility, timing, and costs. The emergence of small modular reactors (SMRs) presents a potential avenue for nuclear development, but practical challenges remain.

As Australia navigates its energy transition, stakeholders must weigh the advantages and drawbacks of nuclear power against other renewable alternatives. While nuclear energy may offer a pathway towards decarbonization and energy diversification, it must be pursued judiciously in alignment with broader policy goals and societal values. Ultimately, the future of nuclear power in Australia hinges on a nuanced understanding of its complexities and implications for the nation's energy security, environmental sustainability, and economic prosperity.

© Ananya Ganesh. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] "Australian Energy Update 2023," Australian Department of Climate Change, Energy, the Environment and Water, September 2023.

[2] J. Boylan, "Australia's Aboriginal Communities Clamor Aainst Uranium Mining," The Guardian, 9 Aug 10.

[3] H. Davidson, "Kakadu Uranium Mine Closure Planning Ignores Impact on Jabiru Township," The Guardian, 5 Jun 18.

[4] O. Milman, "Government Rules Out Nuclear Power For Australia," The Guardian, 17 Dec 13.

[5] "Nuclear Power in Australia Within 10 Years: Swtitkowski," Sydney Morning Herald, 27 Nov 06.

[6] A. Morton, "Nuclear Power in Australia Not Realistic For at Least a Decade, Ziggy Switkowski Says," The Guardian, 29 Aug 19.

[7] F. Mao, "Climate Change: Why Australia Refuses to Give Up Coal," BBC News, 22 Oct 21.

[8] A. Morton and P. Hannam, "Australia's 2050 Net Zero Emissions Plan Relies on 'Gross Manipulation' of Data, Experts Say," The Guardian, 29 Oct 23.

[9] G. Readfearn, "The Coalition Wants Nuclear Power. Could It Work - or Would It Be an Economic and Logistical Disaster?" The Guardian, 7 Mar 24.

[10] J. T. Nash and D. Frishman, "Chemical Data and Statistical Interpretations for Rocks and Ores From the Ranger Uranium Mine, Northern Territory, Australia," U.S. Geological Survey, Open-File Report 83-239, 1983.