A model of a small modular reactor plant that Rolls-Royce SMR hopes to have operational by the end of the decade. AP
A model of a small modular reactor plant that Rolls-Royce SMR hopes to have operational by the end of the decade. AP
A model of a small modular reactor plant that Rolls-Royce SMR hopes to have operational by the end of the decade. AP
A model of a small modular reactor plant that Rolls-Royce SMR hopes to have operational by the end of the decade. AP

Small nuclear reactors as alternative energy sources can be cheaper but also risky


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A global search for alternative sources to Russian energy during the war in Ukraine has refocused attention on smaller, easier-to-build nuclear power stations, which proponents say could provide a cheaper, more efficient alternative to older model mega-plants.

UK-based Rolls-Royce SMR says its small modular reactors (SMRs) are much cheaper and quicker to get running than standard plants, delivering the kind of energy security that many nations are seeking.

France already relies on nuclear power for most of its electricity, and Germany kept the option of reactivating two nuclear plants it will shut down at the end of the year as Russia cuts natural gas supplies.

While Rolls-Royce SMR and its competitors have signed deals with countries from Britain to Poland to start building the stations, they are many years away from operating and cannot solve the energy crisis now hitting Europe.

Nuclear power also poses risks, including disposing of highly radioactive waste and keeping that technology out of the hands of rogue countries or nefarious groups that may pursue a nuclear weapons programme.

Those risks have been accentuated after shelling around Europe's largest nuclear power plant in Zaporizhzhia, Ukraine, which has raised fears of potential nuclear disaster.

Due to the war, however, “the reliance on gas imports and Russian energy sources has focused people’s minds on energy security”, Rolls-Royce SMR spokesman Dan Gould said.

An SMR’s components can be built in a factory, moved to a site in tractor trailers and assembled there, making the technology more attractive to frugal buyers, he said.

“It is like building Lego,” Mr Gould said. “Building on a smaller scale reduces risks and makes it a more investible project.”

SMRs are essentially pressurised water reactors identical with some 400 reactors worldwide. The key advantages are their size — about one tenth as big as a standard reactor — the ease of construction and the price tag.

The estimated cost of a Rolls-Royce SMR is £2.2 billion to £2.8bn pounds ($2.5bn to $3.2bn), with an estimated construction time of five and a half years.

That is two years faster than it took to build a standard nuclear plant between 2016 and 2021, according to International Atomic Energy Agency statistics.

Some estimates put the cost of building a 1,100 megawatt nuclear plant at between $6bn and $9bn. Rolls-Royce aims to build its first stations in the UK within five and a half years, Mr Gould said.

Similarly, Oklahoma-based NuScale Power signed agreements last year with two Polish companies — copper and silver producer KGHM and energy producer Unimot — to explore the possibility of building SMRs to power heavy industry.

Poland wants to switch from polluting, coal-powered electricity generation.

Rolls-Royce SMR said last month that it signed a deal with Dutch development company ULC-Energy to look into setting up SMRs in the Netherlands.

Another partner is Turkey, where Russia is building the Akkuyu nuclear power plant on the southern coast. Environmentalists say the region is seismically active and could be a target for terrorists.

The introduction of “unproven” nuclear power technology in the form of SMRs doesn't sit well with environmentalists, who argue that proliferation of small reactors will exacerbate the problem of how to dispose of highly radioactive nuclear waste.

“Unfortunately, Turkey is governed by an incompetent administration that has turned it into a ‘test bed’ for corporations,” said Koray Dogan Urbarli, a spokesman for Turkey's Green Party.

“It is giving up the sovereignty of a certain region for at least 100 years for Russia to build a nuclear power plant. This incompetence and lobbying power make Turkey an easy target for SMRs,” said Mr Koray.

His party eschews technology with an “uncertain future”, he said.

Mr Gould said one Rolls-Royce SMR would generate nuclear waste the size of a “tennis court piled one metre high” throughout the plant’s 60-year lifetime.

He said initially, waste would be stored on site at the UK plants and would eventually be transferred to a long-term disposal site selected by the British government.

Any country acquiring nuclear reactors automatically enhances its capacity to make nuclear weapons. Every SMR could produce around 10 bombs worth of plutonium each year
MV Ramana,
professor at the University of British Columbia

MV Ramana, professor of public policy and global affairs at the University of British Columbia, cites research suggesting that there is “no demonstrated way” to ensure nuclear waste stored in what authorities consider to be secure sites won't escape in the future.

The constant heat generated by the waste could alter rock formations where it is stored and allow water seepage, while future mining activities could compromise a nuclear waste site's integrity, said Mr Ramana, who specialises in international security and nuclear energy.

Sceptics also raise the risks of possibly exporting such technology in politically tumultuous regions.

Mr Gould said Rolls-Royce is “completely compliant” with UK and international requirements in exporting its SMR technology “only in territories that are signatories to the necessary international treaties for the peaceful use of nuclear power for energy generation”.

However, Mr Ramana said there is no guarantee nations will follow the rules.

“Any country acquiring nuclear reactors automatically enhances its capacity to make nuclear weapons,” he said, adding that every SMR could produce “around 10 bombs worth of plutonium each year”.

Rolls-Royce SMR could opt to stop supplying fuel and other services to anyone flouting the rules, but “should any country choose to do so, it can simply tell the International Atomic Energy Agency to stop inspections, as Iran has done, for example”, Mr Ramana said.

Although spent fuel normally undergoes chemical reprocessing to generate the kind of plutonium used in nuclear weapons, Mr Ramana said such reprocessing technology is widely known and that a very sophisticated reprocessing plant is not required to produce the amount of plutonium needed for weapons.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

US PGA Championship in numbers

Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.

To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.

Number of seasons without a major for McIlroy, who finished in a tie for 22nd.

4 Louis Oosthuizen has now finished second in all four of the game's major championships.

In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.

For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.

Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.

Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.

Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.

10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.

11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.

12 Paul Casey was a combined 12 under par for his first round in this year's majors.

13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.

14 The world ranking of Justin Thomas before his victory.

15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.

16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.

17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.

18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).

Ponti

Sharlene Teo, Pan Macmillan

How to get there

Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
 

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Updated: September 11, 2022, 4:30 AM