Nuclear New Build Market and NIA Supply Chain Support Dr Glen Little Nuclear Industry Association Consultant 11 June 2015
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1 Nuclear New Build Market and NIA Supply Chain Support Dr Glen Little Nuclear Industry Association Consultant 11 June 2015
2 Contents Overview of the nuclear new build market NIA activities to support UK supply chain Reports & Publications Government / Industry Dialogue NIA Nuclear New Build Conference Summary
3 World Nuclear Power Market Country Reactors Under Construction Reactors Planned Country Reactors Under Construction Reactors Planned Argentina 1 Armenia 1 Bangladesh 2 Belarus 2 Brazil 1 Bulgaria 1 Canada 2 China Czech Republic 2 Egypt 2 Finland 1 1 France 1 1 Hungary 2 India 6 22 Indonesia 1 Iran 2 Japan 3 9 Jordan 2 Kazakhstan 2 South Korea 4 8 Lithuania 1 Pakistan 2 Poland 6 Romania 2 Russia 9 31 Slovakia 2 Turkey 6 Ukraine 2 UAE 3 1 UK 11 USA 5 5 Vietnam 4 TOTAL World Planned reactors has decreased from 230 in 2010 to 174 today *World Nuclear Association Figures
4 Western Nuclear Reactors with Multiple Builds EPR Real programme gains and programme certainty have been shown for Nth of a kind ABWR AP1000 APR1400
5 New Build Plans for the UK NNB GenCo Technology Choice - AREVA EPR. 2 x 1600 MW EPRs for Hinkley 2 x 1600 MW EPRs for Sizewell Final Investment decision expected by end of 2015 Horizon Nuclear Power Ltd Technology Choice Hitachi ABWR. Plans for 3 GW at Wylfa on Anglesey & 3 GW at Oldbury in Gloucestershire. Delivery by Hitachi GE Nuclear Energy NuGeneration Ltd Technology Choice Westinghouse AP1000. Plans for 3GW at Moorside in Cumbria. Westinghouse at stage 4 of 4 of the GDA process. Manchester office opened and delivery team being formed
6 Transfer of Knowledge NNB GenCo - Hinkley C Encourage formation of partnership between 1. French companies with experience of EPR Construction and RCCM 2. UK companies with knowledge of UK Regulations and Practice Advantages Ensures knowledge of French Codes and Standards Facilities transfer of lessons learned from Flamanville Expands available supply chain capabilities and capacity Applicability Works well due to Proximity of UK and France Horizon - Wylfa Newydd HGNE have engaged with a selected number of UK companies on programme of Joint Studies Equipment Manufacture & Procurement Civil Construction Mechanical Construction Electrical Construction Advantages Increases UK companies knowledge of Technology and equipment Confirms that Japanese Open Top Construction methodology can be executed in UK Identifies Japanese Practices which would not be acceptable in UK Confirms Japanese timescales for plant construction can be achieved in UK Applicability Efficient way of transferring information between companies with different cultures and on different continents
7 About the NIA Voice of the UK civil nuclear Industry 260+ members across whole nuclear sector Members range from utilities to small enterprises Promotes capability of UK Nuclear Industry overseas
8 NIA Support for the Supply Chain New Build Group Started as small working group Now 3 meeting/year with 100+ attendees Moves around the UK to ensure local access Nuclear Industry Council Plays a key role in the development of the supply chain with DECC,BIS & Industry
9 NIA New Build Reports Updates being developed to reflect current position
10 Timeline for New Build Programme Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hinkley Point C Unit 1 Hinkley Point C Unit 2 Sizewell C Unit 1 Sizewell C Unit 2 Wylfa Unit 1 Wylfa Unit 2 Oldbury Unit 1 Oldbury Unit 2 Moorside Unit 1 Moorside Unit 2 Moorside Unit 3 *Nuclear Industry Association Assumptions
11 Hinkley Point C Supply Chain Model *Nuclear Industry Association Assumptions
12 Analysis of Required Resources Total Resource requirements Total On Site requirements *Nuclear Industry Association Assumptions
13 Working to Develop UK Capability UK & Welsh Government Developers Industry Department of Environment & Climate Change (DECC) Department of Business Innovation & Skills NNB GenCo Horizon Nuclear Power NuGen NIA NAMRC National Nuclear Laboratory Supply Chain at Tier 1 to Tier 4 Level Establish and own the UK Nuclear Strategy Meets quarterly to develop and review work plans to improve capability and capacity of UK Nuclear Industry Working Groups established to execute tasks
14 Government Industry Dialogue Workstreams Skills Cost Reduction Trade & Investment Public Understanding Business Capability Assessment of UK Nuclear Skills Requirements Identify Nuclear New Build Cost Reduction actions Identifies actions to support UK export requirements Promotes Nuclear Industry to public & assess altitude To ensure UK businesses have the capacity and capability to win a significant proportion of the UK Nuclear New Build Programme
15 Government Industry Dialogue Readiness Review Assess the readiness of UK industry to deliver Nuclear New Build Products & Services Break down into 6 groups 1) Design, Manufacture, Civil Construction, Mech/Electrical Installation 2) Skills, Quality Review status of industry against demand Identify gaps & issues within Supply Chain Status First Stage of assessment complete and recommendations issued Key Findings UK companies have relevant skills and capabilities Will not invest until have greater market certainty Due to age profile in the industry, need to significantly increase resources to meet new build programme demand
16 Government Industry Dialogue Development of Demand Model NIA Capability Report 2012 Assessed the capability and capacity of UK Industry to Support the New Build Programme against a list of 40 generic items As part of Readiness Review in 2013, the UK capability was assessed for each of the 3 proposed technologies Level of assessment of capability and capacity still at high level Status Need for a more detailed Demand and Capability Model agreed by NIA, DECC & BIS Draft Demand Model produced and format agreed 120 items Capability of UK Industry to be developed from existing work Detailing of Demand and Capability started
17 Business Capability Recognise that small to medium enterprises (SMEs) will have a vital role in increasing UK capacity SMEs need support to maximise their potential SMEs need to partner with each other to enable business to meet volume demands Access route to investment finance for SME is being developed Status Steering Group established and Charter developed. Formal Launch and Partnership companies set for summer 2015
18
19 Summary Nuclear renaissance continues albeit at a slower pace Funding and development of new nuclear technology has taken longer than expected Good examples of successful fleet development across the world. Which has led to falling construction timelines and lowering costs. NIA has played a key role in developing and improving readiness of UK Supply Chain Delivering an integrated programme of activities involving Government, Developers, Supply Chain to enhance the Supply Chain capabilities Market is not just building of a new plant this is a year opportunity Companies will not be involved without investment. NIA will continue to provide information to support investment business cases
20 NIAUK.ORG NUCLEARSUPPLYCHAIN.COM
21 Man Hours Over Time Total Manufacturing Years & Factory Space Total Manufacturing Years Total Man Years - Structural Steel Stairways and Access Platforms Total Man Years - RI Tanks &Vessels Total Man Years - RI Pipe Supports Demand Model to be produced against 120 products/equipment types Initially concentrate on Hitachi ABWR Areas of potential Capacity shortfalls will be re-examined in more detail Investment required by Government and industry will be identified Gap closure plans will be executed UK industry will be positioned to win increased business
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