Signs of Revival Buoy Nuclear Power Industry : Energy: Several Orange County companies would benefit from any increase in the construction of plants. A major problem is how to dispose of radioactive wastes.

When some neighbors living near Enertech’s factory in Brea learned recently of the company’s involvement in the nuclear power industry, they became alarmed by the possibility that radioactive materials were being handled near their homes.

The neighbors’ concerns were quieted after Enertech officials explained that the company makes safety equipment and provides maintenance service at nuclear power plants--no glowing green rods or the like are handled there.

For Enertech officials, the experience was a reminder that nuclear power is still an emotional subject for many people in the aftermath of the Chernobyl and Three Mile Island accidents.

The industry’s image was battered by safety fears and huge construction cost overruns that brought all U.S. construction of new plants to a halt in the 1980s. But now some experts believe that the industry may be poised for a comeback.

The Persian Gulf War brought home in graphic form the danger of America’s dependence on foreign oil. At the same time, the nation’s growing energy needs, environmental concerns sparked by recent oil spills and advances in plant design are generating hopes within the industry for a revival in U.S. nuclear plant construction.

Enertech reports a 25% increase in inquiries about its nuclear plant safety equipment. Other Orange County companies--including Odetics Inc. in Anaheim, Fluor Corp. in Irvine, BFM Energy Products in Santa Ana and Pacific Scientific Co. in Newport Beach--cite a similar increase in interest in their nuclear-related products and services.

“We detected a change over the past 2 1/2 years and it seemed to escalate during the Gulf War as people realized the danger of oil dependency,” Enertech President Frank Erlach said.

For their part, opponents of nuclear power contend that the public will remain opposed to nuclear power until there is a resolution of the radioactive waste disposal problem.

Even industry supporters say the federal government, which hasn’t issued a license for a new nuclear power plant since 1978, is unlikely to grant an operating license for another plant in the United States within the next several years. Meantime, companies that rely on the nuclear power industry for all or part of their business will have to be satisfied maintaining and refurbishing the nation’s existing 111 plants, some of which are approaching the end of their 40-year operating life spans.

The prospects are better overseas. Eighty-three plants are planned or under construction around the world, including two plants approved in Japan two weeks ago. Last March, the governments of Britain, France, Germany and Belgium jointly pledged their commitment to the development of new reactors.

In the United States, the Department of Energy estimates that the nation will need to boost its generating capacity about 30% by the year 2010 to meet growing demand for electricity. That would translate to 190 to 275 large new power plants.

The only U.S. plant now under construction is in Texas, while seven other plants are in earlier stages of development. In February, President Bush proposed a National Energy Strategy that included streamlined licensing for new nuclear plants.

“There is more recognition that plants are needed,” said Cathy Roche, spokeswoman for the Washington-based U.S. Council for Energy Awareness, a pro-nuclear industry group.

A council-sponsored poll this month found that 66% of Americans strongly favor construction of advanced nuclear reactors. An independent poll by Time magazine and the Cable News Network also showed a recent surge in support for nuclear power.

Environmentalists attribute the renewed debate about nuclear power to a well-financed public relations campaign by pro-nuclear advocates in the wake of the Persian Gulf War.

“The revival drums are being beaten by the nuclear energy industry, but it’s a lot of smoke and mirrors,” said Scott Denman, director of the Safe Energy Communication Council, a Washington-based coalition of environmental groups.

Orange County companies that participate in the nuclear industry aren’t expecting a business boom soon, but some are encouraged by recent events.

After abandoning the nuclear business in the late 1970s because of the slowdown in new plant construction, BFM Energy Products in Santa Ana re-entered the business of manufacturing control rod parts and other devices for nuclear plants about six months ago, Chief Executive Officer Barry Rodgers said.

Rodgers estimates sales of nuclear-related products will grow from $1 million to as much as $15 million in the next several years.

“There is potential, but a lot of things have to happen, like deciding how to dispose of the waste,” he said.

Fluor Corp., the giant Irvine engineering and construction firm, has built 11 nuclear power reactors since the 1960s. All of the company’s $125 million in nuclear-industry-related revenue last year came from maintaining existing plants, said Rick Maslin, a company spokesman. That business is expected to remain stable, he said.

More important, the company’s Fluor Daniel unit is seeking a contract to build a new generation weapons-grade nuclear reactor to produce tritium, a radioactive gas that is critical to building nuclear arms. The plant would replace a 37-year-old reactor at Savannah River, S.C.

The Department of Energy is expected to choose a contractor for the $2-billion contract in December. The San Francisco-based engineering company, Bechtel Group, is also bidding for the job.

Fluor Daniel is hoping that the technology it has developed will give it a leg up on the Savannah River contract and future U.S. commercial plants. Merrick said Fluor Daniel’s proposal is for a reactor that incorporates a so-called gas-cooled design, which the company claims is safer because it would automatically shut the plant down in case of a catastrophic nuclear accident.

“Because of this safety feature, it could be a prototype for other plants,” said Tom Merrick, a Fluor Daniel vice president.

Ed Keen, a senior vice president at Bechtel, disputes Fluor Daniel’s claims, contending that his company’s so-called heavy-water design is technologically superior.

Some firms have managed to survive the lean years of the past decade by providing maintenance service for the world’s 424 existing plants.

Enertech was formed when Erlach led a management buyout of the energy division of Paul-Monroe Hydraulics in Torrance in 1987.

It makes safety valves, hydraulic devices known as actuators, and shock absorbers known as “snubbers” that protect pipes from earthquakes. Revenues are expected to triple from $14 million in 1990 to more than $40 million in three years.

Odetics has been developing robots for use in nuclear power plants since 1983, said Kevin C. Daly, chief technology officer. The mobile robots are intended to perform duties that are considered too dangerous for humans.

Under a contract with a consortium of five utility companies, Odetics is also developing a mobile sensor-equipped robot that would “map” the radiation within a nuclear plant--a task now performed by human workers wearing protective suits.

While a decision on further development is expected soon, Daly acknowledges that the market is unlikely to develop any time soon. The biggest obstacle, Daly said, is the negative public opinion and delays in establishing a system for disposal of nuclear waste.

“This business hinges on things that are absolutely out of our control,” Daly said. “If there is a renewed interest in nuclear power, we think we have done the homework to provide what will be needed. From our view, the prospects are improving.”

That draws a word of caution from such environmentalists as Denman, who believe that businesses should be moving away from the nuclear energy industry.

“You’ve been on this roller coaster before and seen what it does to shareholders and employees,” he said. “Don’t get fooled again. It’s the same old song, and you should look at new opportunities in renewable energy resources and conservation.”

Orange County Companies Involved in the Nuclear Power Industry Fluor Corp. (Irvine) Built 11 nuclear reactors in the ‘60s and ‘70s; maintenance services for existing plants; bidding for contract to build a nuclear weapons plant at Savannah River, S.C. Enertech (Brea) Maintenance services for nuclear reactor; safety equipment; manufactures shock absorbers, safety valves and valve actuators that control the flow of coolants. Pacific Scientific Co. (Newport Beach) Builds shock absorbers to protect nuclear plant pipes during earthquakes. Odetics Inc. (Anaheim) Developing robots used to monitor radiation hazards inside nuclear plants. BFM Energy Products (Santa Ana) Builds safety valves, control-rod components and other equipment.