Breeder Reactos
Essay by 24 • April 15, 2011 • 611 Words (3 Pages) • 988 Views
Introduction
On December 20, 1951 in Arco, Idaho, Experimental Breeder Reactor I produced the first electric power from nuclear energy, lighting four light bulbs. Since then the importance of nuclear energy for peace purposes has been growing at a very fast pace. In 1984, the atom overtook hydropower to become the second largest source of electricity, after coal. Most of the commercial nuclear power reactors operating or under construction in the world today require 'enriched' uranium for their fuel.
In the long term, nuclear power will probably gain more acceptance after the nuclear risks are put in proper perspective in relation to environmental and climate impacts of the other realistic alternatives. There exists an effective way to increase nuclear production by exploiting technical development in current plants and by modernizing them. That is also in line with the principles of the sustainable development to utilize current production plants in a more effective way. In light of these conditions we expect the demand for 'enriched' uranium to increase in the future.
Environmental issues are a major factor in the production of Uranium Hexafluoride (UF6). Uranium is only weakly radioactive, and its chemical toxicity - especially as UF6 - is more significant than its radiological toxicity. The protective measures required for an enrichment plant are therefore similar to those taken by other chemical industries concerned with the production of fluorinated chemicals.
United States Uranium Separation (USUS)
The fact that USUS does not have to make extra expenditures to update its facilities in complying with new laws puts the Company at a comparative advantage against its competitors. USUS also raised prices on UF6 and that will result in a pure profit. Besides this cost advantage USUS has also developed a new filtration process and at the moment is the only firm that possesses the knowledge about this process. This puts the Company at a technological advantage as well. USUS also has a very low cost of debt. In light of these facts we feel that USUS should expand the production of UF6. ÐŽ§Stand PatÐŽÐ strategy is definitely not the choice recommended for USUS under the future growth opportunities foreseen in the Uranium market.
Strategic Analysis
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