The UK Nuclear Market. Paul Lester CEO Lord Mandelson Secretary of State for Business, Innovation...
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Transcript of The UK Nuclear Market. Paul Lester CEO Lord Mandelson Secretary of State for Business, Innovation...
The Global Nuclear Market Today and 2014
(Source: URENCO, NDA, Areva, British Energy. UK spend includes T1 expenditure)
£2bn £12bn £2.5bn £5.5bn£3.5bn
Market:£0.25bn2009
2014
ENRICHMENTFUEL
FABRICATIONREACTOR BUILDAND SERVICES
REPROCESSINGWASTE
MANAGEMENTDECOMMISSIONING
&£0.5bn £2bn
£1.25bn £0.5bn £2.5bn
Current Business Performance
Revenue £65m
Profit contribution £4.5m
Margin 7%
Investment net of cash £33.8m
NuclearCapability Nuclear
Engineering450 engineers
Project Management
Safety Case /Specialist Consultancy
Waste Management and Characterisation
Radiometric InstrumentationDesign and through life service
Radiological Analysis
VT has a broad range of nuclear capabilities in a market where supply is becoming increasingly stretched
World Leading Capabilities
• Graphite decommissioning - support to EDF
• Programme management - support to EBRD
• Waste retrieval projects - major Sellafield projects: B29, B30
• Reprocessing technology - support to Japan Nuclear Fuel Ltd
• Radiological analysis - Sellafield & security services
Example: Sellafield
InstrumentService
Waste processingas a service
Waste stores as a service
Waste anddecommissioningprojects
TrainingService provided
Service capability
AssetCare
Thought Leadership – Service Approach
Plutonium contaminated waste measurement service
Dry spent fuel storage
Deconversion of Uranium Hexafluoride
Capability contract – intermediate level waste store
Where we work Dounreay
Sellafield
Hunterston
Chapelcross
Wylfa
BerkeleySizewell
Capenhurst
OldburyHinkley
Dungeness
Bradwell
LLWR DriggHartlepool
Heysham
Trawsfynydd
Harwell
Aldermaston
Torness
Example: Waste and Decommissioning B29
Project value: Circa £50mProject value: Circa £50m
ProjectManagement
ConceptDesign
WasteCharacterisation
Operation
Procurement
Structure of the New Build market
International Utility, eg: EDF
Utility orReactor Vendor
Reactor Vendor eg: Westinghouse
Non-nuclearIsland
eg: Turbine
NuclearIsland
eg: Reactor
GeneralSupport
eg: Licensing
Developer
PrimeContractor
TechnologyProvider
Specialist Contractors
VT can provide supportto all of these sectors
Early Traction: NII Frameworks Reactor components Expert support to reactor
vendor Ongoing discussions with
utilities and reactor vendors
Example: New Build Opportunity
Total cost of a new build station will be in excess of £2bn per unit: ~15% is currently addressable by VT Group
Nuclear Island
£900mNon-Nuclear Island
£700m
General Support: £400mGeneral Support: £400m
Design for Decommissioning
Radwaste Plant
Engineering Validation/Inspection
Specialist Manufacturing
Source: IBM
General EngineeringSupport
Safety Case/ Environmental
Impact Assessments
Example: New Build Opportunity – Operational Support
Each Reactor costs ~10p/ KWh in operational support costs - £300M over the life of the plant
Operations, Training, Logitsics
c.4p/ KWh
Maintenance, Repair,Spare Parts, Engineering
c.6p/ KWhGeneral Engineering
Support
Waste Processing
Service
Spent FuelStorage Service
Operator &Apprentice
Training
Source: Areva/ Nucleonics Week March 2009
40 Years of through life support40 Years of through life support
Summary
Strong nuclear engineering and technical capability
Bringing the VT Group customer-critical service delivery model to the nuclear sector
Broadening into adjacent sectors of the nuclear market with long-term potential
Positive feedback from early engagement with customers on this new approach