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HGP Inc.
1720 N. Pleasantburg Dr.
Greenville, SC, 29609
P: 864.370.0213
F: 864.370.0215
Suite 127,
PO Box 18540
Reno, NV, 89511
P: 775.851.1532
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Message from the CEO of HGP, Fred Giffels
| 06/21/2010 by HGP Inc Admin | Summer 2010A warm Welcome to all Visitors and returning Clients to HGP’s Web Site
Given the events in 2010 year to date, we hope you are still weathering the economic slow down which will most likely continue well into 2011 and possibly beyond.
On top of all of the issues facing our great country, along comes the Epic BP oil spill in the Gulf of Mexico! This oil spill will and is having Global implications, but may allow some Leadership to emerge to head the world away from a carbon based economy. The real shame here is there was no Emergency Planning or Risk Analysis evident within BP or the USA Federal Government. When I worked at Brown and Root years ago, we knew that drilling off shore on deep platforms presented some significant engineering and environmental issues. I cannot fathom why BP and the USA Government are doing such a horrific job at stopping this Global Disaster. Our hearts and prayers go out to all the small businesses impacted by this along the gulf coast. The commercial nuclear industry has done probabilistic risk assessments (now called Individual Plant Examinations-IPE’s) for years to allow the NRC and the nuclear plant operators and owners how and what to pay attention to in terms of risk (core damage) and what emergency plans need to be in place to mitigate or even prevent any core damage. The Obama administration would be well served to get some regulations in place to mandate risk analysis and emergency plans are put in place and kept updated before any permits or continued operations are allowed.
The Gulf Oil crisis seems to being managed with all talk and no substance, even after the presidents’ latest speech. We need action and RESULTS and America has some of the best minds and DOERS the world has ever seen, but night after night on the news all we see is more and more oil spewing in the Gulf of Mexico and up the Gulf Stream. Within the next few months this will be a world wide issue of epic proportions.
Article: Gulf spill a reminder of the value of redundant safety systems
● On the Business Front
HGP has found that performing comprehensive due diligence reviews during mergers and/or acquisitions (M&A), on projects or for entire companies is even more CRITICAL and PRUDENTLY NECESSARY in these economic times. One false step in the execution or underlying M&A assumptions can, and often does, cause a project, the management team and often the acquiring or merged company to FAIL, with dire consequences in terms of both TIME AND MONEY for the Key Executives, Stockholders and Debt Holders. Just look at BP with a Emergency Plan to put into action.
HGP is proud to be a part of the energy sectors resurgence with the expansion of Renewable Energy (wind, solar, small hydro, geo-thermal, and now tidal generation and combo’s) and Nuclear Energy generation technologies for the nation’s electrical generation needs.
● Observations for the balance of 2010 and into 2011
1-The estimated capital cost of the new generation of commercial nuclear plants has now risen to well over $6,500/kW (old forecast was $5,550/kW) – very-very expensive, and maybe, cost prohibitive, if new nuclear plant project life cycle cost savings are not factored in, and the carbon tax is not implemented. The United States or any one USA Company cannot pay the price for this technology alone. New Commercial Nuclear Plants will need world wide support. Many large IOU’s are now looking to share the risk by postponing or delaying the start of their new announced nuclear plants until someone (rate payers or USA Government) can share the risk for the capital cost.
HGP has several lifecycle cost saving strategies and other techniques to make new commercial nuclear stations more competitive, less risky and more likely to have their benefits realized as part of the USA’s base load generation mix in the next 5 to 10 years; contact us to learn more. Each Company’s Board of Directors (BOD) considering or embarking on a new commercial nuclear plant (or other major generation facility) should be monitoring their Management Team on any new commercial nuclear or other major generation facility as many of the current line managers and staff do not know, or have never designed or built, let alone managed a multi-billion dollar project, and their focus and insights leave much to be desired and may put the company and their stakeholders at much greater risk both for not taking action and, conversely, making imprudent decisions.
Article: Nuclear Energy Industry Continued To Set Safety Standard in 2009, WANO Indicators Confirm
Stats: WANO 2009 Performance Indicators for the United States
2-Renewable Energy is still being led by wind development, but solar and now biomass (base load) are the REAL keys to future growth since both have higher reliability and more predictable grid implications than wind. Geothermal (which is also like Biomass - a renewable base load) is an option, but only in limited areas of the country. Wind turbine vendors are seeing a major slow down in orders from clients since project financing has all but dried up the last 9 months. Current R&D efforts indicate some “out of the box” designs will come out and some new products will REDUCE the cost of EPC and O&M life cycle for both wind and solar. This is one area the Obama stimulus plan for renewables may have an impact on, but it will be 2 to 4 years before we see it commercially.
3-President Obama has not full-filled his proposal for some significant Federal grants and loans to the energy sector, most of which have yet to roll out as planned. Problem is, the RED TAPE and the real impact on NEW JOBS are very questionable. One bright light is renewable project loan guarantees which may help stimulate some “dirt ready renewable projects”. We know of at least four renewable projects (geothermal, solar and wind) that have applied to DOE for this loan funding. All of us in the energy industry hope this focus will create a stronger USA economy, and a more reliable, efficient and CLEAN Energy industry for future generations.
4- The Obama administration has killed Yucca Mountain but does not have a plan for the future disposal of nuclear waste or how to use this asset, YES asset. Neither has the Nuclear Indusrty done much to LEAD this effort or show some results. NEI had the chance years ago to impact the State of Nevada and our ridiculous and ill-informed elected officials here about the upsides for Yucca Mountain and the nuclear industry’s economic benefits, but failed miserably. The missing part here for both sides is the lack of any substance or results - except the negative kind, such as the bankruptcy of Chrysler and GM, and more TARP Money wasted on large Financial Institutions who are making a fortune but not lending it out! Note how GM paid off the TARP loans with other loans from the USA Government?
There continues to be little to no accountability to the taxpayers on where the money went, is still going, and when we will see it paid back.
5-Given the continued current state of the USA and world wide economy, many of America’s businesses cannot hold on much longer, and in fact quite a few of our competitors have gone out of business and or continue to experience major layoffs. HGP has made adjustments to weather this down turn and continues to be debt free to allow us to hold our costs down to support our current and future client base. We are now offering our client’s a significant loyalty discount on new assignments to keep our staff contributing toward the recovery. Ask about offer LP2010 when you contact us.
6- Wouldn’t it be great if we could get a renewable energy project running at an existing commercial nuclear plant site? Talk about reducing the carbon footprint!
We have continued to propose this concept to several of our Operating/Owner Commercial Nuclear clients who have potentially suitable commercial nuclear sites as well as commercially viable wind and or solar and bio-mass generation sites, but the energy industry is NOT KNOWN FOR MUCH LEADERSHIP or OUT OF THE BOX THINKING. Many IOU CEO’s are claiming to be green but just like the NIMBY’s not on our sites.
HGP has been assisting our clients for over 30 years in this area, but what is NOT new news is that HGP continues to share the commercial risk/reward with our clients:
Based on our dedication to the success of our Clients!
● Contact Us
Contact us to give us your comments or to discuss how HGP can help your company succeed:
Email us at: HGP@HGP-Inc.com or me directly at: FGiffels@HGP-Inc.com
We wish you the Best of Success for the rest of 2010 and beyond!
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Fred W. Giffels, CEO
Higher Goals Performed
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"Dedicated to the Pursuit of our Client's Success"
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