NORWAY’S FLIRTATION WITH NUCLEAR ENERGY

Norway enjoys a wealth of energy resources. Why then, are Norwegian business and energy leaders advocating for Norway to make a foray into nuclear energy?

OVERVIEW

Due to its world-class petroleum reserves, Norway has become the most energy-rich nation in Europe.  Norway has Western Europe’s largest crude oil and natural gas resources and Norway is also blessed with extraordinary hydro-power resources, which currently provide approximately 90% of the nation’s electricity. 

These abundant energy resources have not only allowed Norway to become energy-independent; they have also enabled Norway to export energy resources to European neighbors that are in desperate need of energy.  Despite an embarrassment of energy riches, more and more Norwegians are recognizing the emerging need for nuclear energy since hydro-power resources are no longer sufficient to provide the electricity required for fully decarbonized economy.

HISTORICAL OVERVIEW

After World War II, much of Europe embraced U. S. President Eisenhower’s vision of “Atoms for Peace.”  Great Britain was the early world leader in commercial nuclear power.  In 1958, Belgium, France, West Germany, Luxembourg, Italy and the Netherlands signed a treaty creating the European Atomic Energy Community (Euratom) to form a common market for the development of peaceful uses of atomic energy (Luxembourg never constructed a commercial nuclear reactor). 

In 1973, Europe, like the remainder of the world, was devastated by the Arab Oil Embargo. The geopolitical situation highlighted a global reliance on oil and the importance of energy security.  In the wake of the crisis, Western European nations scrambled to mitigate their exposure to future oil shocks.  The United Kingdom, Norway and the Netherlands had already begun to exploit their North Sea petroleum resources; however, France had very limited oil and gas resources which made them more susceptible to effects of the oil embargo.  The French adopted an attitude of “volontarisme,” a belief and determination that difficulties could be overcome by willpower and ingenuity.  Thus, a French mantra evolved “En France nous n’avons pas de petrole mais nous avons une idee” (In France we don’t have oil, but we have ideas.)

Following the Yom Kippur War, much of Western Europe went on a nuclear building spree, spurred by a desire for economic and energy security.  Nuclear power plants were constructed in England, Scotland, Belgium, Netherlands, West Germany, Italy, Sweden, Finland, Spain, Wales and Switzerland.  However, no country embraced nuclear energy more enthusiastically than France.  By 2005, France was producing approximately 80% of its electricity from nuclear energy. France now produces approximately 67% of their electricity from nuclear energy, the highest percentage in the world. 

Chooz Nuclear Power Station in Ardennes, France

West Germany also aggressively developed nuclear power following WWII.  Typical of German engineering and efficiency, the West Germans operated the finest state-of-the-art nuclear power facilities, which were the envy of the world.  Even before the pinnacle of Germany’s nuclear prowess, many “so-called” environmental groups began opposing nuclear energy.  Despite growing anti-nuclear advocacy, by 1990, Germany was producing approximately 25% of its electricity from its “industrial cathedrals of clean nuclear power” Nuclear Power Plants: Our Industrial Cathedrals - The American Conservative.  While Germany operated a significant amount of nuclear power generation, much of Germany’s remaining power was generated from coal. 

By the early 2000s, much of the western world was becoming concerned about the possible effects of CO₂ on climate and the environment.  Early environmentalists concerned about climate change championed renewable energy.  As a result, Germany became a leader in developing renewable sources of energy to displace coal.  While German nuclear energy could have been a powerful tool in the struggle to continue restraining CO₂ emissions, many environmental groups opposed the use of nuclear energy.

The German Green Party was originally founded in 1980 in opposition to nuclear energy.  Nuclear accidents in Chernobyl (1986) and Fukushima (2011), accelerated the popularity of the Green Party in Germany. The German Green Party successfully convinced German policymakers that decarbonization of its electricity grid could be accomplished principally by using wind and solar.  The Green Party postulated (incorrectly) that nuclear power was no longer needed to maintain Germany’s energy security and industrial might. Germany proceeded to pre-maturely shut down its entire fleet of nuclear power reactors. The last three German reactors were powered-down in April, 2023. Germany bids farewell to its last nuclear plants, eyes hydrogen future | AP News

NORWAYS NUCLEAR HISTORY

It is often forgotten that Norway enjoys a prominent place in the history of nuclear energy. During WWII, Germany desperately attempted to develop nuclear weapons capabilities.  Germany contemplated using “heavy water” for the manufacture of nuclear weapons. Norway’s hydro-electric facilities provided most of the world’s heavy water production at that time.  Germany invaded Norway, in part, to gain access to Norwegian heavy water production.  Fortunately, due to the heroic efforts of Norwegian resistance fighters and British Special Forces, the manufacture and export of Norwegian heavy water was sabotaged and Germany thereafter never successfully developed nuclear weapons. 

Following WWII, Norway embraced the peaceful use of nuclear energy and constructed four nuclear research reactors.  The first such research reactor was constructed in 1951, making Norway just the 6^th country in the world to operate a nuclear reactor.  https://nonproliferation.org/wp-content/uploads/npr/forlan42.pdf Contemporaneously, Norway began to exploit its hydro-electric resources which would eventually provide almost of all Norway’s electricity. 

In 1969, the discovery of the giant Ekofisk Oil Field in the Norwegian North Sea precipitated a sea-change in Norwegian energy policy.  In 1979, the Three Mile Island nuclear accident in the United States was partially responsible for a change in Norwegian public sentiment for nuclear energy and resulted in a delay in the development of commercial nuclear energy in Norway for at least two generations.  Nevertheless, many in Norway foresaw that its growing power demand would eventually require the development of commercial nuclear energy to produce electricity and process heat. 

Ocean Viking was the first offshore drilling rig constructed in Norway (Oslo, 1966).  The Ocean Viking was used to drill the discovery well at the iconic Ekofisk Oil Field, Norway’s first commercial oil discovery in 1969.

While Norway remained without commercial reactors, Norway’s research reactors continued to support the international nuclear community until 2018.  According to Nils Morten Huseby, President of Norway’s Institute for Energy Technology, the reason that Norway has not previously constructed commercial nuclear reactors is “we did not need to!”  This is contrasted with their Swedish and Finnish neighbors that, unlike Norway, do not have abundant hydropower resources.  Consequently, Sweden and Finland have developed commercial nuclear power sooner than Norway.  Many believe that political pressure from Germany has also stifled Norway’s commercial nuclear power ambitions.

Norway’s JEEP II research reactor, operational from 1966 to 2018

NORWAY’s NEW NUCLEAR IMPERATIVE

Why is now emerging as the time for Norway to embrace commercial nuclear energy?  There are several reasons.  Norway stands as a shining example of how to decarbonize a vibrant modern economy.  Norway has electrified transportation, heating and virtually everything else.  More than 92% of new car sales in Norway are electric vehicles, making it the nation with the highest penetration of electric vehicles in the world.  Consequently, the surge of electricity needed to power an all-electric economy, including EVs, has caused demand for electricity in Norway to explode.  While most of Norway’s electricity has historically been provided by hydro-power, hydro-electricity can no longer provide all of the residential, industrial and transportation electricity demands. 

The principal reason that nuclear energy is emerging as a viable alternative in Norway is the recognition that Norway needs much more reliable electricity.  Many business and industrial leaders are beginning to recognize that intermittent wind and solar are not practical solutions for filling the emerging Norwegian electricity deficit.  Norway’s solar resources are limited.  Onshore wind development is vigorously opposed by many in the public.  It is extremely challenging and expensive to develop offshore wind in the turbulent North Sea.  Therefore, nuclear energy is now emerging as one of the best solutions for Norway’s emerging electricity and energy demands. 

The second reason that nuclear energy is emerging as a key energy resource is a recognition that in order for Norway to meet its ambitious decarbonization goals, they will need nuclear energy.  The Norwegian offshore industries are under intense domestic pressure to decarbonize their oil and gas extraction and shipping industries. Norway remains a maritime nation and there are ripe opportunities to decarbonize shipping with the use of small and micro reactors.  Renewable energy can provide low-carbon power, but cannot do so reliably because of its inherent intermittency.  In other words, for electricity to be both low carbon and reliable, many in Norway have concluded that they will require nuclear power moving forward. 

The third reason that nuclear is imperative in Norway derives from Russia’s invasion of Ukraine.  Following the severe reductions in deliveries of Russian natural gas, Continental Europe has become desperate for more energy.  There is considerable pressure from Germany and other European nations for Norway to continue providing badly needed electricity to Europe.  In order for Norway to continue augmenting Europe’s growing need for electricity, while continuing to provide reliable and affordable energy to its own citizens, Norway has recognized the nuclear imperative moving forward.

WHO CAN DEVELOP NUCLEAR IN NORWAY?

There are no laws prohibiting the development of nuclear power in Norway.  Nevertheless, nuclear power continues to be a political hot potato.  Licensing commercial nuclear power plants in Norway will be very difficult in the current political environment.

Developing nuclear power projects is expensive, and requires a skilled labor force, great project management skills, specialized manufacturing capabilities, supply chain competence and research capabilities.  Fortunately, these skills and competencies almost perfectly align with the competencies present in Norway’s oil and gas companies and oil and gas service companies. 

Several of Norway’s business leaders have recently recognized that their robust oil and gas industry might be perfectly suited to provide the catalyst for the development of new nuclear projects.  Offshore oil and gas companies are currently capable of developing large offshore projects, which often take a decade or longer to complete.  Norway’s oil and gas companies and service companies know how to deliver large projects on-time and under budget because of their superior project management skills and supply chain management competencies.

While the Norwegian government has been slow to recognize the opportunities that nuclear energy can provide, Norwegian energy leaders are already emerging in support of nuclear energy.  Jonny Hesthammer is the CEO of M Vest Energy AS (oil & gas production) and has recently formed Norsk Kjernekraft (Norwegian Nuclear Power).  Hesthammer recognizes the importance of nuclear energy and also recognizes that existing core competencies of the oil and gas industry can help make Norsk Kjernekraft successful in developing nuclear energy.  Norsk Kjernekraft has proposed the construction of small modular reactors on several sites in Norway.

While Norwegian companies currently lack specific experience in nuclear technologies, according to Hesthammer, Norway will gain nuclear competence by utilizing the same method that made them exceptional in oil and gas production services.  In the 1960’s, Norway had no innate knowledge of how to develop its burgeoning oil and gas resources.  Norway imported oil and gas expertise from international companies from the United States, United Kingdom, Italy, the Netherlands and other countries.  Norwegians quickly learned the oil and gas trade from these international companies and proved their own competency.   The student soon became the teacher as Norwegian companies quickly became world class leaders in offshore oil and gas technology. 

In similar fashion, Hesthammer wants Norway to learn from other veteran developers of commercial nuclear power.  Hesthammer just returned from a trip to South Korea where his company has signed an agreement with DL Energy, an international developer of nuclear energy.  In March 2023, Norsk Kjernekraft signed an agreement with UK-based with Rolls-Royce SMR to work together to increase acceptance of nuclear power in Norway, and to potentially establish future projects that “could lead to the deployment of Rolls-Royce’s small, modular nuclear power plants in Norway.” Norway / Nuclear Company Submits Proposal For SMR Station In North Of Country (nucnet.org)

The Norwegians are certainly not alone in hoping to convert oil and gas competence into the development of an emerging nuclear industry.  Respected international oil & gas services giant NOV, has also recognized the huge potential of nuclear power.  After several years of deliberation, NOV recently formed Shepherd Power, a wholly owned subsidiary, to develop nuclear energy projects for application in the oil and gas industry.  Scott Livingston, NOV’s President of Energy Products and Services spoke about nuclear energy development opportunities at the ONS Conference last week in Stavanger.

Mark Hinaman, a former petroleum engineer and a new nuclear energy developer from Colorado, recently commented “As a collective, oil and gas companies are excellent at quickly and economically developing cutting-edge technologies which need to perform in high-consequence environments. This expertise should be leveraged to produce new components, advanced systems, and even entirely new business models to disrupt and progress the nuclear energy industry.  While the environmental benefits of nuclear energy are immense and the importance to national defense can't be understated, the oil and gas companies should be leading the charge because of the monumental financial gains to be made. The size of the prize is bigger than anything else they're currently involved in, and I don't think many of them realize what a once-in-a-lifetime wealth generation opportunity this is."

ONS – OFFSHORE OIL & GAS CONFERENCE

In 1974 Norway’s oil and gas industry was still in its infancy.  Ekofisk, the first commercial offshore oil and gas field in the North Sea, had been discovered just 5 years earlier.  In 1974, the first ONS Offshore Oil and Gas Technology Conference was held in the sleepy fishing village of Stavanger, Norway on the coast of the North Sea.  The ONS Conference has been held every two years since 1974, marking this year as its golden jubilee.  In recent years, the ONS Conference has been expanded to feature other technologies like offshore wind, carbon capture, hydrogen production and other energy industries.  “Net-Zero” and “sustainability” themes have clearly been emphasized at recent ONS Conferences.

Martin Hjelemeland, a Postdoctoral Fellow at Norwegian University of Science and Technology, has a PhD in hydropower scheduling and worked in the hydropower industry for several years.  In 2022, Hjelemeland concluded that the unique and propitious opportunities provided by nuclear energy were too beneficial to be overlooked.

According to Hjelemeland, “All my life politicians here in Norway have contemplated what Norway is going to do after the oil wells have run dry. Unfortunately, many of the policy makers don’t want to acknowledge the nuclear option, even though we now have substantial grassroots support for nuclear. Nuclear energy has a significant technology and competence overlap with the oil and gas industry, providing an opportunity for a transition of well-paid local jobs to generational jobs in the low-carbon nuclear energy industry. “

In 2023, Hjelemeland contacted the ONS Conference organizers and suggested that the 2024 conference should feature programs and discussions about nuclear energy.  ONS agreed that nuclear energy was a clean energy source whose time had come.  With Hjelemeland’s help, the ONS Conference has fully embraced nuclear energy for the first time in its proud history. In fact, opening day of the 2024 ONS Conference, August 26^th, 2024 was designated as “Nuclear Monday.”   Martin commented “I am gratified and excited that ONS has included nuclear energy in this year’s program, thereby providing a forum for candid discussion of these timely and important issues.”

To be sure, there was extraordinary interest in nuclear energy at this year’s ONS Conference.  “Imagine Floating Nuclear,” “Nuclear Renaissance: Powering the Future Energy Landscape,” “Imagine Nuclear in the Nordics,” and “From Oil & Gas to Nuclear?” were the four panel discussions conducted specifically on “Nuclear Monday” at the 2024 ONS Conference.  There were many other presentations and panels which discussed nuclear energy.  All four panel discussions specifically featuring nuclear energy were standing-room-only events.  By contrast, a panel discussion on offshore wind immediately following one of the nuclear panels was sparsely attended with less than half of the seats occupied.

RASER ELECTRICITY (Ideal Electricity)

Ideally electricity should be reliable, resilient, abundant, affordable, safe and environmentally responsible (RASER).  Above all, electricity must always be safe.  Without safety, electricity is ceases to be useful.  Reliable and resilient electricity are two sides of the same important coin. If electricity is abundant, it will be affordable.  For most people, electricity ceases utility if it is not affordable.  Electricity must be produced, transported and used in an environmentally responsible manner, which implies a low carbon footprint.  Wind and solar can be used to produce low carbon electricity, but are intermittent and thereby unreliable.  Coal can be used to reliably produce electricity, but it currently can’t be affordable if it is produced in a low-carbon manner.  Electricity produced from nuclear energy embodies all of the desired attributes of “RASER Electricity.”

CONCLUSION

Like most countries, Norway is experiencing an explosion in demand for energy, and in particular electricity. Applications for new electric loads in Norway equal the current peak load of the Norwegian power system. Norway’s hydro-electric resources are virtually tapped-out. Hence, Norway needs to quickly figure out how it is going to meet its burgeoning demand for safe, reliable, affordable, abundant, resilient, low carbon energy. 

In 2003, a national poll found that wind energy was Norwegians most preferred sustainable energy source of the future at 36%, whereas only 1% favored nuclear energy.  Now that the limitations and high costs of intermittent wind have been more fully appreciated, Norwegians have developed a more sober appreciation of nuclear energy.  In 2024, the Norwegian public now favors nuclear energy as their preferred sustainable energy source of the future!

Norwegians seem to have learned from Germany’s mistake of shuttering its nuclear power plants.  In just a short period of time, ONS, Jonny Hesthammer, and Martin Hjelmeland have helped to bring nuclear energy out of the shadows and into prominent consideration among the other flavors of energy in Norway.

Norwegian business and industrial leaders seem to have correctly concluded that nuclear power is emerging as the logical choice for meeting Norway’s energy needs and decarbonization goals.  Although recent polling confirms that the Norwegian public is ready to embrace nuclear energy, the renewable energy interests in Norway are powerful and the ruling government coalition does not seem eager to consider nuclear energy a viable energy source. 

Nuclear energy still faces a tough fight in Norway and it will require the courage of more Norwegians like Jonny Hesthammer, Martin Hjelemeland, Susanne Møgster Sperrevik, Helge Nordtorp, Jonas Kristiansen Noland and Andreas Strand to speak publicly in support of nuclear energy.  With all of that said, if the 2024 ONS Conference offers any foreshadowing, we can infer that nuclear has a very bright future in Norway.