Wednesday, March 16, 2011

Helicopters dump water on nuclear plant in Japan

Tokyo (CNN) -- Helicopters dumped water Thursday on and near the Nos. 3 and 4 units at Japan's Fukushima Daiichi nuclear plant in the latest attempt to halt the nuclear accident that appeared to be spinning out of control. The helicopters belong to the nation's self-defense forces, public broadcaster NHK reported.

Initially, just a few drops were carried out before the operation was suspended. An NHK commentator said about 100 would be needed for the operation to succeed.

During the afternoon, engineers were planning to begin the process of restoring power to the stricken nuclear complex, a government official said. The complex lost its power Friday, when a 9.0 earthquake followed by a tsunami hammered northeastern Japan.

"Today, we are trying to restore the power supply using the power lines from outside," said the official with the Nuclear and Industrial Safety Agency. "This is one of the high-priority issues that we have to address."

Once the power supply has been re-established, the cooling system will be operated using seawater, he said. But he warned that the process will not be immediate.

"It will take time to restore the function of the main part of the facilities, because the pumps were contaminated by seawater and must be repaired before reuse," he said, adding that temporary pumps would be used initially.

The move came a few hours after the head of the U.S. Nuclear Regulatory Commission testified that spent fuel rods in Unit 4 of Japan's stricken Fukushima Daiichi nuclear plant had been exposed, resulting in the emission of "extremely high" levels of radiation.

"What we believe at this time is that there has been a hydrogen explosion in this unit due to an uncovering of the fuel in the fuel pool," Gregory Jaczko told a House energy and commerce subcommittee hearing Wednesday. "We believe that secondary containment has been destroyed and there is no water in the spent fuel pool, and we believe that radiation levels are extremely high, which could possibly impact the ability to take corrective measures."

A Japanese government spokesman, Noriyuki Shikata, said he saw Jaczko's testimony, but could not confirm it. "I cannot comment on the basis of the testimony itself," he told CNN.

Asked about the report of a high level of radioactivity near the plants, he said, "We have not seen the level that is, for example, dangerous to human bodies beyond the very close vicinity of the reactors."

In addition, he said, "we have not seen a major breach of containment."

The water served to both cool the uranium fuel and shield it. But once the uranium fuel was no longer covered by water, the zirconium cladding that encases the fuel rods heated, generating hydrogen, said Robert Alvarez, senior scholar at the Institute for Policy Studies and a former official with the Department of Energy.

That caught fire, resulting in a situation that is "very, very serious," he told CNN. He said the next step may involve nuclear plant workers taking heroic acts. Asked to be more specific, he said, "This is a situation where people may be called in to sacrifice their lives. ... It's very difficult for me to contemplate that but it's, it may have reached that point."

Photographs of the building released Wednesday by the power company showed a hole in a wall and deterioration of the roof.

A Japanese Self-Defense Force helicopter aborted its mission Wednesday to drop water over the reactor because of the high radiation levels in the area, Japanese public broadcaster NHK reported Wednesday.

Officials have been working to resolve cooling problems at four of Fukushima Daiichi's six reactors in the wake of the 9.0-magnitude earthquake and tsunami that devastated northeast Japan Friday.

The International Atomic Energy Agency said the temperature of water in spent fuel pools is typically kept below 25 degrees Celsius (77 degrees Fahrenheit). That requires a constant cooling source, which requires a constant power source, something not available at the plant in the aftermath of Friday's earthquake and tsunami.

"The concern about the spent fuel pools at Fukushima Daiichi is that sources of power to cool the pools may have been compromised," IAEA said in a statement. It listed the temperatures at the spent fuel pools Tuesday as 84.0 degrees C (183 F) at Unit 4; 60.4 degrees C (141 F) at Unit 5 and 58.5 degrees C (137 F) at Unit 6.

By Wednesday, it was reporting "no data" for Unit 4 and worrying trends for the other two: Unit 5 had risen to 62.7 degrees C (145 F) and Unit 6 had risen to 60.0 degrees C (140 F).

Three of the reactors were operating at the time of Friday's 9.0 earthquake and were shut down following their normal procedures, Jaczko said. All of them, he said, appeared to have suffered "some degree of core damage from insufficient cooling caused ultimately by the loss of off-site power and the inability of the on-site diesel generators to operate successfully following the tsunami."

Three reactors were being cooled with seawater and their primary containment vessels were described as "functional," he said.

But core cooling was "not stable" for unit No. 2, he said. Though the primary containment appeared to be functioning, "we believe that the spent fuel pool level is decreasing."

At unit No. 3, he said, the integrity of the spent fuel pool appeared to have been compromised and there may have been a reaction between the zirconium cladding and the water.

Jaczko's grim announcement confirmed fears that the nuclear crisis would worsen. They had already heightened earlier in the day, when officials observed white vapor rising from the Fukushima Daiichi nuclear plant's reactor No. 3.

Tests on tap water in Fukushima city, 80 kilometers (50 miles) away, found radiation, though at levels not harmful to the human body, and later tests showed no radiation in the water, government officials said.

IAEA Director General Yukiya Amano said Wednesday he will travel to Japan "as soon as possible, hopefully (Thursday)" to get the latest on the situation and to see how the U.N.'s nuclear watchdog agency can best help Japanese authorities, he said. He will stay one night, he added.

In Washington, military officials said Wednesday they had deployed an atmospheric detection aircraft, the WC-135W Constant Phoenix, to assist in detecting radioactive materials in the atmosphere around Japan.

The plane, normally based at Offutt Air Force Base in Nebraska, was moved Tuesday to Eielson Air Force Base in Alaska to prepare for its first sortie, the officials said.

The aircraft can "detect radioactive 'clouds' in real time," according to the Air Force.

Japan's chief cabinet secretary, Yukio Edano, initially said a breach in the containment vessel -- the steel and concrete shell that insulates radioactive material inside the reactor -- may have been the cause of Wednesday's white vapor. But he said later it was unlikely that the vessel suffered severe damage, the Kyodo news agency reported.

Officials told workers at the plant to evacuate Wednesday after the vapor rose above the plant and radiation levels spiked. Radiation levels later fell, and authorities allowed the workers to return, the Tokyo Electric Power Company said.

The number of nuclear workers remaining on site was slashed Tuesday from 800 to 50 but had grown to 180 by Wednesday afternoon, the power company said.

About 200,000 people living within a 20-kilometer radius of the plant have been evacuated; those living 20 to 30 kilometers from the site have been told to remain inside. Authorities also have banned flights over the area.

But the Japanese precautions were not universally embraced. Britain's foreign ministry joined the U.S. Embassy in Tokyo late Wednesday in asking their respective citizens to evacuate or take shelter indoors if they live within 50 miles (80 kilometers) of the Fukushime Daiiachi plant, both nations said in separate statements.

"Their standards are different from ours based on how far you should evacuate," White House spokesman Jay Carney said Wednesday. He called the situation "very fluid."

That view was confirmed by NRC's Jaczko. "For a comparable situation in the United States, we would recommend an evacuation to a much larger radius than has currently been provided in Japan," he said.

The U.S. military also said it will not allow troops within 50 miles of the plant, Col. David Lapan, a Pentagon spokesman, said Wednesday.

U.S. President Barack Obama was briefed Wednesday by the chairman of the U.S. Nuclear Regulatory Commission on the "deteriorating situation" of the damaged nuclear reactors, Carney said.

The weather has emerged as a key concern, but on Wednesday afternoon, winds were blowing out to sea, CNN International Meteorologist Jennifer Delgado said.

As a result of the monitoring of about 150 people from around the Daiichi site, 23 have been decontaminated, IAEA said.

"Their situation is not great," said David Brenner, director of the Center for Radiological Research at Columbia University. "It's pretty clear that they will be getting very high doses of radiation. There's certainly the potential for lethal doses of radiation. They know it, and I think you have to call these people heroes."

A meltdown occurs when nuclear fuel rods cannot be cooled and the nuclear core melts. In the worst-case scenario, the fuel can spill out of the containment unit and spread radioactivity through the air and water. That, public health officials say, can cause both immediate and long-term health problems, including radiation poisoning and cancer.

CNN's Stan Grant, Steven Jiang, Barbara Starr, Sabriya Rice, Elise Labott and Richard Greene contributed to this report.

Economic hit from Japan quake seen up to $200 billion


(Reuters) - Japan's devastating earthquake and deepening nuclear crisis could result in losses of up to $200 billion for the world's third largest economy but the global impact remains hard to gauge five days after a massive tsunami battered the northeast coast.

As Japanese officials scrambled to avert a catastrophic meltdown at a nuclear plant 240 km (150 miles) north of the capital Tokyo, economists took stock of the damage to buildings, production and consumer activity.

The disaster is expected to hit Japanese output sharply over the coming months, but economists warned it could result in a deeper slowdown if power shortages prove significant and prolonged, delaying or even scotching the "v-shaped" recovery that followed the 1995 Kobe earthquake.

Most believe the direct economic hit will total between 10-16 trillion yen ($125-$200 billion), resulting in a contraction in second quarter gross domestic product (GDP) but a sharp rebound in the latter half of 2011 as reconstruction investment boosts growth.

"The economic cost of the disaster will be large," economists at JP Morgan said. "There has been substantial loss to economic resources, and economic activity will be impeded by infrastructure damages (like power outages) in the weeks or months ahead."

Japanese stocks suffered their worst two-day rout since the 1987 crash on Monday and Tuesday, losing a whopping $626 billion in value, before rebounding 5.7 percent on Wednesday as hedge funds rushed to cover short positions.

But traders remained skittish, swayed by each new development at the stricken Fukushima power plant and alert to signs Japanese companies and insurers could sell sizeable foreign assets and repatriate funds to cover the costs of the nuclear crisis, quake and tsunami.

High-yield bonds and U.S. Treasuries top the list of vulnerable assets should the triple disaster of earthquake, tsunami and nuclear breakdown prompt Japanese investors to bring overseas funds back home, analysts say.

YEN RISK

Although the damage to infrastructure has been severe, some of the biggest risks to the economy may come from indirect market consequences of the disaster, such as a rise in the Japanese yen.

The yen surged to an all-time high against the dollar after the Kobe earthquake in 1995 as Japanese firms pulled funds home. The dollar has fallen 3 percent against the yen since the disaster and is now close to the low hit after Kobe.

The direction of the yen could have a big impact on Japanese carmakers like Toyota Motor Co, Nissan Motor and Honda Motor, which build between 22 and 38 percent of their cars at home.

HSBC Chief Economist Stephen King said it was still too early to put a figure on the economic costs as the scale of the disaster was not yet clear.

The area of Japan affected by the tsunami produces around 4.1 percent of the country's GDP, suggesting first-round economic effects could be limited, he said. But with the fate of the Fukushima nuclear reactors still unclear, Japan may not have felt the full force of the disaster yet.

"At this stage, it's too early to come up with meaningful estimates of the overall impact of the terrible events in Japan," King wrote in a research note.



"Knee-jerk economic and financial reactions to shocks and disasters often fall wide of the mark," he noted, pointing to erroneous predictions of a U.S. recession following the September 11, 2001 attacks and of a major hit from the 2004 Asian tsunami.

The disaster is already disrupting the global manufacturing chain, hitting technology companies particularly hard as Japan accounts for one-fifth of the world's semiconductor output.

However, reflecting the high degree of uncertainty about the global economic impact of the disaster, the U.S. Federal Reserve made no mention of Japan in a statement issued after its policy meeting on Tuesday.

The European Central Bank, which warned earlier this month that it could hike rates in April, also appears to be in wait-and-see mode even as money markets scale back their expectations for monetary tightening this year.

Fitch Ratings said it did not currently view the economic impact as sufficiently severe to warrant negative rating action, pointing to Japan's well-diversified economy and sovereign financing flexibility.

Japan's public debt is twice the size of its $5.3 trillion economy, the highest ratio of any large developed country in the world. But unlike other high debt countries like Greece, only five percent of Japan's debt is held by foreign investors so the risks of a funding crisis are limited.

FRANCE CALLS FOR G7 MEETING

Still, in a sign European leaders may be nervous about their debt crisis spreading to Japan following the disaster, France said it had called a meeting of G7 finance ministers and central bankers to respond to the crisis, mentioning possible purchases of Japanese debt.

Ratings agency Moody's warned earlier this week that the quake, tsunami and resulting nuclear crisis increased the chance of investors losing confidence in Japan's finances and eventually demanding higher rates on government bonds.

For now the government is using 200 billion yen in emergency reserves to pay for anti-crisis efforts. The rapidly evolving disaster has prevented government officials from working on an emergency budget which could be in the range of 5-10 trillion yen.

Some ruling party lawmakers have proposed a special tax to pay for disaster relief, but Finance Minister Yoshihiko Noda has told allies he is not considering tax increases.

In a bid to reassure investors that fiscal conditions will not spin out of control, Japan has capped new bond sales at 44 trillion yen in recent years, but that ceiling is likely to be scrapped now.

"Basically, the government needs to scrap the 44 trillion yen cap," said Seiji Adachi, an economist at Deutsche Securities in Tokyo. "It needs to compile an emergency budget as soon as possible, at least in the next one to two months."

Huge fund injections from the Bank of Japan have kept borrowing costs low so far and there are no signs of strains in Japan's financial system.

Sources told Reuters that the central bank, which eased monetary policy on Monday by doubling funds available for asset purchases to 10 trillion yen, was likely to take further steps as soon as next month.

(Writing by Noah Barkin, editing by Mike Peacock)