Timing is Everything When Doing Business in Latin America

A book I started recently has really grabbed my attention. The book, “No Lost Causes,” by the former president of Colombia, Alvaro Uribe Velez, provides fascinating first hand stories about the challenges Uribe faced as he took on the task of clearing the country of terrorists and returning the nation to a state of economic growth.

Having a Latin American bent to my personal history makes reading this book interesting and reminds me of a challenge I took on to help GE Energy return to Colombia.

When Uribe took office in 2002, several paramilitary groups and Marxist terrorist organizations controlled half the country's territory. Every year, an average of 3,000 citizens were kidnapped and 28,000 killed.  Drug traffickers generated $3 billion annually. Unemployment was close to 16%.

In the late 90's I worked for GE, and this company, like many other multi-national companies, had pulled out of Colombia as the country’s political and social environment worsened. For example, in the business I worked in, GE Energy Services, we pulled out all expats and sold off all local operations and maintenance contracts.

The departure of the international business community tore important economic vitality from an already troubled nation.

But in 2005, after four years of the Uribe government, and as things seemed more positive for the nation, due to Uribe’s hard line approach, I took on the challenge of preparing a case to convince GE that the time was right to reenter the country. Security had improved enough to make this a viable idea and there was potential for GE Energy to re-establish a presence and grow their business there.

I pulled together a detailed country update and found proven opportunities in both the power generation and oil & gas businesses. As a result of this effort, GE Energy’s president at the time, John Krenicki, authorized the hiring of a country manager and a return to doing business in Colombia. This important decision paved the way for GE to re-establish itself as an energy player in Latin America and take advantage of Colombia’s economic rebirth.

Timing was everything and both GE and Colombia benefited.

Please refer to the following Wall Street Journal book review by Alvaro Vargas Llosa, titled, “The Man Who Saved Colombia” for a more detailed account of Mr. Uribe’s achievements.

From Impasse to Opportunity, U.S. - S. Korea Nuclear Cooperation

This October, I thoroughly enjoyed participating in a panel discussion at Georgia Tech between the Center for International Strategy, Technology and Policy (CISTP) and the Korean Advanced Institute of Science and Technology (KAIST) concerning the prospects for strengthening nuclear energy cooperation between the U.S. and South Korea. 

As part of an effort to advance respective national deliberations on the renewal of this important partnership, CISTP and KAIST convened a panel of esteemed scholars and policy experts to explore key technological, economic, political and strategic dimensions to the issue.  

Topics ranged from projected market trends to technical, economic and nonproliferation aspects of nuclear fuel cycle development. Those present provided a unique and important international perspective on nuclear technology in both the power and arms arenas.  

Of particular note were the discussions about the recent South Korea-UAE nuclear plant sale and the affect that will have on upcoming negotiations for the renewal of the U.S. - South Korea nuclear cooperation agreement, a prerequisite under Section 123 of the Atomic Energy Act for nuclear trade.

My take-aways from the meeting included: 

-- If there is a lack of vision on the part of the US for how to meet the needs of S Korea’s nuclear agreement, this will put in question the U.S. technical leadership role for nuclear technology.

-- There is a substantial geo-political impact to what is happening now in Asia as far as nuclear development is concerned. The impact of the recent South Korea - UAE sale is not just commercial. If South Korea acquires fuel reprocessing capability as part of the 123 agreement, this will affect Northeast Asia nuclear strategy and the proliferation of nuclear technology internationally.

To read more about this conference and see a list of panelists at the event, please click here. 

I recently spoke to a group at Troy University in Atlanta, GA, about nuclear energy and the small nuclear reactor, called "mPower," I am spearheading the commercial operations for at Babcock & Wilcox.

The group, made up of Troy University staff, students and Kettering Networking Group members, was a great audience asking some probing questions about the history of nuclear products and the new positive attitude that we see surrounding nuclear energy as a source of power around the world.

I thoroughly enjoyed sharing information with this group and hope it inspired some young minds to take up the nuclear gauntlet.

Kettering Executive Network, Energy Day - Special Guest, Jay Hakes of the Carter Library

Last week, the Atlanta Kettering Executive Network (KEN) was pleased to have a day focused on the business of energy.

An overview was presented by KEN Energy Special Interest Group member, Jeff Gross. This energy-focused group was created earlier this year to promote careers and entrepreneurial opportunities for KEN members in the energy sector. I am a part of the leadership team which includes Jeff Gross, Jin Kim and Pierre Beuret.

It was a real treat to have as our main speaker, Jay Hakes, Director of the Carter Library and Museum

and author of the recent book Declaration of Energy Independence.

I had the pleasure of introducing Jay who spoke about topics from his book, his experiences as the leader of the Energy Information Administration in Washington and energy efficiencies incorporated in the latest renovation of the Carter Library and Museum. He discussed trends in energy usage over the past 50 years and his prognosis for renewables, efficiency, nuclear power and price of oil, going forward.

Some of the topics discussed were:

• Jay highlighted the Carter Library and its advanced energy savings design, siting LED lighting and the addition of space without requiring more air conditioning/heating.
• Specific actions taken in legislation to improve energy efficiency, such as those to mandate better auto fuel mileage beginning in the 70s that forced positive change throughout the auto industry. He extrapolated this to say recent new fuel efficiencies should be manageable and necessary. However, these things would not be taking place without government policy driving them.
• Photovoltaic Solar Generation companies claim big cost reductions year-over-year - almost similar pattern as the micro chip cost history. Jay doesn't believe there is so much potential for big improvements.
• He explained how tax credits on renewable generation such as wind, have a short term effect which fizzles when tax credits expire. Jay would prefer to see taxes on fossil fuels which would make renewable a more attractive choice for energy needs.

Jay was kind enough to take questions from the crowd and meet with KEN members before and after the meeting. I always enjoy hearing Jay speak about his vision for energy use both in this country and around the world. Many thanks, Jay.

For more information about Kettering Executive Network see their website at

http://www.ketteringexecutivenetwork.org

A Nuclear Power Generation WorkshopUnveiled in Atlanta

Closing the workforce gap…who is going to work in the nuclear renaissance?

You’ve heard me talk about the coming nuclear renaissance and the need to train more students and more professionals in this industry.

I want to tell you about an exciting workshop I took part in last week at Southern Polytechnic State University (SPSU) in Georgia. I was invited by Tony Sideris, course Program Manager, to join the steering committee for this initiative and participated as an attendee and instructor. A follow-up final session is scheduled for November 9 -11.

To my knowledge this is the first workshop of its kind and we expect to develop similar offerings at other learning institutions in the US and internationally.

There are three segments to the 48-hour, two-week course. The first session (held this past week) covered two modules; a background in nuclear power generation and information about construction. Participants were introduced to the nuclear industry, the different Nuclear Steam System Suppliers (NSSS), the major industry players, general and detailed regulatory guides, codes and standards applicable to nuclear plant construction.

The final module, November 9-11, covers testing and start-up and will focus on pre-operational testing, startup testing and initial power ascension.

The workshop was well attended and included professionals from Institute of Nuclear Power Operations (INPO), Nuclear Regulatory Commission (NRC), Southern Company, Tennessee Valley Authority (TVA), engineering students from SPSU and other local companies interested in becoming suppliers to the nuclear industry.

Financial and technical support was provided by the US NRC, the ASME Board on Nuclear Codes and Standards, ICAPP and other industry participants. Wes Rowley, an ASME codes expert and past vice-chairman of the ASME board of Nuclear Codes and Standards, is one of the key contributors and presenters of the workshop.

Feedback from the participants during this first session was very positive and I am looking forward to the follow-up session in November.

This course answers the big question, how will we support this industry going forward? I think we have at least one answer in this important, timely workshop.

For detailed course content, program information and registration, please visit the SPSU Nuclear Power Generation (NPG) website spsu.edu/nuclear/.

Energy is Everything - Washington Energy Summit proposes immediate action with a balanced approach…

“America’s Future Prosperity Tied to Energy - The future economic prosperity of the United States is inextricably tied to our ability to create a sustainable and balanced energy system. The private sector is the pivotal actor in achieving energy system transformation with speed and at scale.”

And so began the National Energy Summit and International Dialogue held last week in Washington. This gathering of a broad coalition of CEOs, presidents of major research universities, labor union leaders, and top government officials both from the U.S. and abroad was brought together to discuss creating a single voice for moving forward with energy transformation. The summit was a part of the Council on Competitiveness’ Energy Security, Innovation & Sustainability (ESIS) Initiative, founded in 2007. The goal of the Initiative is to enhance U.S. competitiveness and energy security by developing a public-private action agenda to drive private sector demand for sustainable energy solutions and create new markets, industries and jobs.

I was surprised this event did not get more media coverage. But I was very encouraged by the discussions and recommendations, presented under the slogan, “Energy is Everything,” to U.S. Secretary of Energy, Steven Chu. The council proposed specific actions under the six pillars for competitiveness - 1) Efficiency, 2) Clean Energy production, 3) Infrastructure & Manufacturing, 4) Smart grid, 5) Technology & Entrepreneurship and 6) finally World-Class Workforce.

The key messages from the recommendations are:

• Balanced Portfolio of Solutions – starting with efficiency on the demand side to renewable, gas, clean coal and nuclear on the supply side along with adding intelligence to the grid and training the workforce
• Strong support for nuclear and clean coal – expedite nuclear power plant approvals, re-commissioning and eliminate regulatory uncertainty for nuclear waste. Expedite construction of carbon capture and storage facilities
• Carbon tax for funding investments – Congress should enact legislation that will result in the establishment of a consistent, predictable and transparent price on carbon emissions to fund technology R&D, workforce training and efficient manufacturing
• Create a local Energy manufacturing infrastructure – provide tax incentives and financing to develop the infrastructure required to research, manufacture and service the proposed energy solutions

The Competitiveness Council has been working for almost two years on these recommendations which provide an excellent roadmap for industry and government to take immediate action. It’s my opinion that these recommendations should be acted upon by the current administration; they should be the foundation for the U.S. position at the United Nations Climate Change Conference 2009 in Copenhagen later this year.

For more details on this event check out the link to the Energy Summit & Competitiveness council. http://www.compete.org/nes

THE NEW NUKES...are we close to breaking ground?

It was great to see the following headline recently, “The New Nukes,” in the Wall Street Journal. The article began with this statement…

“For the first time in decades, popular opinion is on the (nuclear) industry's side. A majority of Americans think nuclear power, which emits virtually no carbon dioxide, is a safe and effective way to battle climate change, according to recent polls. At the same time, legislators are showing renewed interest in nuclear as they hunt for ways to slash greenhouse-gas emissions.”

Having a balanced article of this quality in a first class newspaper shows that public opinion is changing and we here in the U.S. are close to actually having new nuclear plants.

Just yesterday, I had the pleasure of hearing a presentation by Steve Ewald of Georgia Power on one of the four projects selected for DOE loan guarantees -- Vogtle 3 and 4, located in Augusta, Georgia. This project will be an AP1000 pressurized water reactor from Westinghouse with the Shaw Group as the main contractor.

From Ewald’s discussions, it was clear that there are two main reasons Georgia Power selected nuclear:

1) Baseload generation requirements have increased – clean coal is not available in the short term, so the lowest cost option is nuclear.

2) Reduction of carbon emissions – without clean coal, nuclear is the best choice for baseload generation.

Georgia Power is taking advantage of renewable power, for example switching the Mitchell Plant from coal to wood resulting in a 95MW plant. With the limited potential for wind and solar in Georgia, nuclear is the best option for meeting the increase in baseload demand up to 2025.

What we need now is action. The DOE should come out with its final selection of projects for loan guarantees. I recommend proceeding with two projects with competing technologies -- for example, one pressurized water reactor and one boiling water reactor.

Once a project actually breaks ground and an order is placed for an NSSS system, we can really start talking about THE NEW NUKES.

Here’s a link to the article -- http://online.wsj.com/article/SB10001424052970204409904574350342705855178.html#articleTabs%3Dcomments