Foreign exchange exposure management in a fuel procurement company operating in the commodity markets

Fluctuating commodity prices, foreign exchange rates and interest rates are causing changes in cash flows, market value and the companies’ profit. Most of the commodities are quoted in US dollar. Companies with non-dollar accounting face a double risk in the form of the commodity price risk and foreign exchange risk. The objective of this Master’s thesis is to find out how companies under commodity should manage foreign exchange exposure. The theoretical literature is based on foreign exchange risk, commodity risk and foreign exchange exposure management. The empirical research is done by using constructive modelling of a case company in the oil industry. The exposure is model with foreign exchange net cash flow and net working capital. First, the factors affecting foreign exchange exposure in case company are analyzed, then a model of foreign exchange exposure is created. Finally, the models are compared and the most suitable method is defined. According to the literature, foreign exchange exposure is the foreign exchange net cash flow. However, the results of the study show that foreign exchange risk can be managed also with net working capital. When the purchases, sales and storage are under foreign exchange risk, the best way to manage foreign exchange exposure is with combined net cash flow and net working capital method. The foreign exchange risk policy of the company defines the appropriate way to manage foreign exchange risk.

The role of nuclear and other conventional power plants in the flexible energy system

This thesis reviews the role of nuclear and conventional power plants in the future energy system. The review is done by utilizing freely accesible publications in addition to generating load duration and ramping curves for Nordic energy system. As the aim of the future energy system is to reduce GHG-emissions and avoid further global warming, the need for flexible power generation increases with the increased share of intermittent renewables. The goal of this thesis is to offer extensive understanding of possibilities and restrictions that nuclear power and conventional power plants have regarding flexible and sustainable generation. As a conclusion, nuclear power is the only technology that is able to provide large scale GHG-free power output variations with good ramping values. Most of the currently operating plants are able to take part in load following as the requirement to do so is already required to be included in the plant design. Load duration and ramping curves produced prove that nuclear power is able to cover most of the annual generation variation and ramping needs in the Nordic energy system. From the conventional power generation methods, only biomass combustion can be considered GHG-free because biomass is considered carbon neutral. CFB combusted biomass has good load follow capabilities in good ramping and turndown ratios. All the other conventional power generation technologies generate GHG-emissions and therefore the use of these technologies should be reduced.

Development of laboratory exercises for basic nuclear thermal hydraulics measurements

The thesis focuses on light water reactors (pressurized water reactors, boiling water reactors) and measurement techniques for basic thermal hydraulics parameters that are used in a nuclear power plant. The goal of this work is a development of laboratory exercises for basic nuclear thermal hydraulics measurements.

Effect of Material Recycling on the Feasibility of Solid Recovered Fuel Fired Power Plant

This master’s thesis examines the effects of increased material recycling on different waste-to-energy concepts. With background study and a developed techno-economic computational method the feasibility of chosen scenarios with different combinations of mechanical treatment and waste firing technologies can be evaluated. The background study covers the waste scene of Finland, and potential market areas Poland and France. Calculated cases concentrate on municipal solid waste treatment in the Finnish operational environment. The chosen methodology to approach the objectives is techno-economic feasibility assessment. It combines calculation methods of literature and practical engineering to define the material and energy balances in chosen scenarios. The calculation results together with other operational and financial data can be concluded to net present values compared between the scenarios. For the comparison, four scenarios, most vital and alternative between each other, are established. The baseline scenario is grate firing of source separated mixed municipal solid waste. Second scenario is fluidized bed combustion of solid recovered fuel produced in mechanical treatment process with metal separation. Third scenario combines a biomaterial separation process to the solid recovered fuels preparation and in the last scenario plastics are separated in addition to the previous operations. The results indicated that the mechanical treatment scenarios still need to overcome some problems to become feasible. Problems are related to profitability, residue disposal and technical reliability. Many uncertainties are also related to the data gathered over waste characteristics, technical performance and markets. With legislative support and development of further processing technologies and markets of the recycled materials the scenarios with biomaterial and plastic separation may operate feasibly in the future.

Evaluation of the main energy scenarios for the global energy transition

Energy scenarios are used as a tool to examine credible future states and pathways. The one who constructs a scenario defines the framework in which the possible outcomes exist. The credibility of a scenario depends on its compatibility with real world experiences, and on how well the general information of the study, methodology, and originality and processing of data are disclosed. In the thesis, selected global energy scenarios’ transparency and desirability from the society’s point of view were evaluated based on literature derived criteria. The global energy transition consists of changes to social conventions and economic development in addition to technological development. Energy solutions are economic and ethical choices due to far-reaching impacts of energy decision-making. Currently the global energy system is mostly based on fossil fuels, which is unsustainable over the long-term due to various reasons: negative climate change impacts, negative health impacts, depletion of fossil fuel reserves, resource-use conflicts with water management and food supply, loss of biodiversity, challenge to preserve ecosystems and resources for future generations, and inability of fossil fuels to provide universal access to modern energy services. Nuclear power and carbon capture and storage cannot be regarded as sustainable energy solutions due to their inherent risks and required long-term storage. The energy transition is driven by a growing energy demand, decreasing costs of renewables, modularity and scalability of renewable technologies, macroeconomic benefits of using renewables, investors’ risk awareness, renewable energy related attractive business opportunities, almost even distribution of solar and wind resources on the planet, growing awareness of the planet’s environmental status, environmental movements and tougher environmental legislation. Many of the investigated scenarios identified solar and wind power as a backbone for future energy systems. The scenarios, in which the solar and wind potentials were deployed in largest scale, met best the set out sustainability criteria. In future research, energy scenarios’ transparency can be improved by better disclosure on who has ordered the study, clarifying the funding, clearly referencing to used sources and indicating processed data, and by exploring how variations in cost assumptions and deployment of technologies influence on the outcomes of the study.

Failure modes of passive decay heat removing safety systems of modern nuclear power plants

The purpose of this master’s thesis is to gain an understanding of passive safety systems’ role in modern nuclear reactors projects and to research the failure modes of passive decay heat removal safety systems which use phenomenon of natural circulation. Another purpose is to identify the main physical principles and phenomena which are used to establish passive safety tools in nuclear power plants. The work describes passive decay heat removal systems used in AES-2006 project and focuses on the behavior of SPOT PG system. The descriptions of the main large-scale research facilities of the passive safety systems of the AES-2006 power plant are also included. The work contains the calculations of the SPOT PG system, which was modeled with thermal-hydraulic system code TRACE. The dimensions of the calculation model are set according to the dimensions of the real SPOT PG system. In these calculations three parameters are investigated as a function of decay heat power: the pressure of the system, the natural circulation mass flow rate around the closed loop, and the level of liquid in the downcomer. The purpose of the calculations is to test the ability of the SPOT PG system to remove the decay heat from the primary side of the nuclear reactor in case of failure of one, two, or three loops out of four. The calculations show that three loops of the SPOT PG system have adequate capacity to provide the necessary level of safety. In conclusion, the work supports the view that passive systems could be widely spread in modern nuclear projects.