An interesting conference was held in Manchester in May on ‘Enhancing the Nuclear Economy’ organised by Nuclear Strategy. The conference was opened by ONR, followed by short, punchy presentations from Bureau Veritas, Cavendish Nuclear, MTC, Deloitte, Rolls-Royce SMR, Airbus Protect, Amentum, Tokamak Energy, UKAEA, Core Power, and Community Nuclear Power.
The official post-event publication can be found at the following link https://nuclearstrategy.earth/emagazine/enhancing-the-nuclear-economy-event-edition-pt2/
Talking to participants in the margins of the event, my personal observations are that policymakers need to confirm their support for the industry. Money from private investors is available if there is clarity and confidence in the long-term commitment to the industry. Investors want a return and are not there to give the industry cash. Trained professional human resources was not a constraint as individuals will “always follow the money”.
A Quality Guarantee to mitigate CFSI concerns within the supply chain, specifically Counterfeit, Fraudulent, and Suspect Items, is dependent on a robust forward-build programme. Repeatedly building ‘First of a kind’ systems exacerbates construction risks as investment returns within the supply chain are uncertain; therefore, ensuring resilience is important.
The key message being “Quality is not an act it’s a habit”.
The Cost of Money in a nuclear new build is staggering. About 67% of the cost of a new station is Financing. Consequently, any reduction in construction time has a significant impact on total project costs. This favours a sequential build of multiple units on the same site; a build model adopted both at Baraka, UAE and Akkuyu, Turkey. Repeatability drives down the Cost of Finance.
Cyber-security is a growing threat and the need to address this challenge is a priority. The challenge is not just at the operational phases but also during design, manufacture, and throughout the complete site life cycle. Understanding systematic dependencies was essential, not just an act performed after failure. The adage “Failing to prepare is to Prepare to Fail” is apt.
Nuclear is not an industry sector nor a goal but rather an enabler.
There is a need for the industry to address this perception and recognise that nuclear technology is not a business driver. Of the energy generated from a reactor some 2.5 times the electrical output is generated heat that is available for a variety of purposes. Also, the footprint of an SMR is very similar to that of a large PWR and only about 5% of a nuclear site is occupied by the reactor.
Apart from the diehard activists, Public Opinion about the nuclear industry centres on jobs and Energy Security. The lack of confidence in decision-making affects workforce deployment; as mentioned earlier individuals will follow the money. Now the World Bank has relaxed its position on funding Nuclear New Build. Hopefully, this will unlock the necessary finance and provide that much-needed public confidence.
It is an interesting conference driven by Business to Succeed. The overall tone was one of tempered, confident enthusiasm.
The personal ramblings and observations of John Ireland, Senior Consultant
About the Author
John Ireland is an internationally experienced energy specialist and senior business executive skilled in the development, negotiation, and management of businesses and technically complex contracts within both the Government and private sectors. John has grown complex businesses in Asia and the Middle East, and assisted international organisations to develop business in and from the UK through joint ventures and partnerships.
