Supply Chain

Craig Piercy
cpiercy@ans.org

This month’s issue of Nuclear News focuses on supply and demand. The “supply” part of the story highlights nuclear’s continued success in providing electricity to the grid more than 90 percent of the time, while the “demand” part explores the seemingly insatiable appetite of hyperscale data centers for steady, carbon-free energy.

Technically, we are in the second year of our AI epiphany, the collective realization that Big Tech’s energy demands are so large that they cannot be met without a historic build-out of new generation capacity. Yet the enormity of it all still seems hard to grasp.

or the better part of two decades, U.S. electricity demand has been flat. Sure, we’ve seen annual fluctuations that correlate with weather patterns and the overall domestic economic performance, but the gigawatt-hours of electricity America consumed in 2021 are almost identical to our 2007 numbers.

In a bid to tackle the primary obstacle in nuclear deployment—construction costs—those in industry and government are moving away from traditional methods and embracing innovative construction technologies.

Doug VanTassell

Certainty!

As CEO of Paragon, I’m excited by the momentum in our industry. But like every nuclear business leader, I grapple with the challenges of delivering projects on time amid capacity and investment constraints. While the industry’s future is bright, the timing of good news doesn’t always align with commitment orders.

Market uncertainty

For the commercial operating fleet, the past five years have been overwhelmingly positive. The private and public sectors recognize nuclear power as a reliable and clean energy source. Rising power rates have made deregulated nuclear plants profitable, while regulated markets have increased support from public utility commissions.

Mike Rinehart

The nuclear industry is entering a period of renewed urgency, driven by the need for stable baseload power, heightened energy security concerns, and expanded defense infrastructure. Now more than ever, we must deliver new nuclear projects on time and on budget to maintain public trust and industry momentum.

The importance of execution certainty cannot be overstated—public trust, industry investment, and future deployment all hinge on our ability to deliver these projects successfully. However, history has shown that cost overruns and schedule delays have eroded confidence in the industry’s ability to deliver nuclear construction. As we embark on many first-of-a-kind (FOAK) reactor builds, fuel cycle infrastructure projects, and extensive defense-related nuclear projects, we must ensure that execution certainty is no longer an aspiration—it is an expectation.

The next nuclear renaissance may be upon us, but with it comes a perfect storm. The industry is unprepared for a surge in demand for goods and services from both the existing light water fleet and the next generation of reactors. We are currently teetering on the edge of severe supply chain issues, but if the nuclear industry can understand the sources of our challenges, we can mitigate them.

José Reyes

Innovations with small modular reactors, which offer a compact, efficient alternative to traditional baseload power plants, are at the forefront of a new era of nuclear energy production that can reshape how we approach industrial decarbonization.

As global energy transition efforts progress, it is essential to examine the potential these advancements hold for reducing carbon emissions. Nuclear energy has long been recognized for its ability to generate vast amounts of electricity without emitting greenhouse gases. The introduction of SMR technology represents a pivotal shift, addressing many previous challenges to nuclear deployment and opening new pathways for the integration of nuclear energy into industrial sectors.

The innovative yet simple design of NuScale’s SMR technology provides a cost-competitive, safe, and scalable solution for a wide range of energy needs.

Christensen

The conversation was casual with John Christensen, president and chief executive officer of Utilities Service Alliance, as he reflected on his 17 years with the organization. Christensen will be stepping down from USA to retire at the end of the year. He will be succeeded as president and CEO/managing director by Karen Fili, most recently with Urenco USA.

USA is a nonprofit organization incorporated in 1996 to provide its utility and nonutility members a business platform to collaborate on plant performance and economic benefit initiatives. Currently, USA members include 39 nuclear reactors (and one uranium enrichment plant) that provide more than 39,650 MWe of generation. As Christensen explained, USA members get the best of both worlds: the fleet benefits by working with USA while keeping the flexibility of independent operator status. (See the sidebar below for a members list.)

Las Vegas, Nev. — The American Nuclear Society (ANS) issued the following statement during the 2024 ANS Annual Conference in Las Vegas:

“The American Nuclear Society applauds the Group of Seven (G7) leaders’ Apulia communiqué in its call for continued international cooperation in strengthening, expanding, and diversifying civil nuclear supply chains as the world deploys advanced reactors.

A 60-year-old Wyoming industrial machinery company has joined forces with nuclear innovator BWX Technologies to build and deploy 50-megawatt microreactors in America’s heartland over the coming years to provide carbon-free heat and power for industrial users.

Power generation from nuclear fission as a clean and stable source of electricity has secured the interest of policymakers and industry leaders around the globe. Last fall, the United States spearheaded a pledge at COP28 to get countries to agree to triple nuclear capacity worldwide, and recently the members of the Group of 7 (G7) nations that currently use nuclear power have reaffirmed their pledges to invest in that power source to cut carbon emissions.

As of this writing, U.S. policymakers are trying to make good on that promise by passing legislation to support nuclear power, funding the domestic fuel supply chain, and working to pass the ADVANCE Act. On top of the support from Washington, D.C., power-hungry industries like data centers and chemical engineering are looking to secure stable, carbon-free power directly from power plants.

Savannah River Nuclear Solutions’ Supply Chain Management (SCM) team recently hosted its first staff augmentation summit to strengthen relationships with 25 staffing firms and provide upcoming process changes for fiscal year 2024.

The Nuclear Regulatory Commission will hold its 2023 Workshop on Advanced Manufacturing Technologies for Nuclear Applications on October 24–26 as a hybrid meeting.

In the newly released 2023 edition of The World Nuclear Supply Chain report, the World Nuclear Association recommends a number of actions to ensure that the international supply chain remains “suitably robust, competitive, and adaptive to meet the anticipated need for long-term operation and new nuclear build.”

The fifth edition of the report provides a market-oriented view that focuses on opportunities and challenges related to nuclear-grade structures, systems, components, and services. Evaluated are supply chain considerations ranging from large-scale reactors to small modular reactors to reactor refurbishment.

Westinghouse Electric Company welcomed 95 vendors to the Canadian Supplier Symposium last week to engage with current and potential suppliers for the company’s global new-build projects.

Westinghouse Electric Company continues its aggressive campaign to become the large reactor supplier for Poland’s planned nuclear power facilities, recently signing memoranda of understanding with 22 firms in the Central European nation.

The American company, with its AP1000 design, is one of three suppliers vying to provide the units for the first Polish nuclear plant project, the other contenders being Électricité de France and Korea Hydro & Nuclear Power.

The MOUs were signed last week in the presence of U.S. ambassador to Poland Mark Brzezinski.

Korea Hydro and Nuclear Power (KHNP) has signed a contract with Atomstroyexport JSC—the engineering division of Russia’s Rosatom—to build the turbine islands for Egypt’s El Dabaa nuclear power plant, construction of which commenced just last month with the pouring of first concrete.

George Shampy

Across the country, supply chain issues continue making the news: price escalation, inflation, logistical delays, scarcity of products and services, obsolescence, risk associated with just-­in-­time inventory, equipment and service quality, and—especially in nuclear—the financial pressures to reduce costs while maintaining our focus on safe, secure, and reliable plant operations.

Unfortunately, these are not new challenges for nuclear supply chain professionals.

In fact, in 2001, the Nuclear Energy Institute formed the Nuclear Supply Chain Strategic Leaders Group (NSCSL) in conjunction with the Institute of Nuclear Power Operations (INPO) and Electric Power Research Institute (EPRI) after an American Nuclear Society Utility Working Conference networking event. The NSCSL is composed of utility supply chain managers and directors and serves as the “community of practice” for these subject matter experts. I am privileged to be an NSCSL participant and an Entergy team member. The NSCSL was designed to be the industry go-­to group for materials and service collaborations and needed supply chain solutions.

Lee Chang-yang

A multi-ministry task force has been established by the government of South Korea to promote the export of nuclear power development projects. The task force, led by minister of trade, industry, and energy Lee Chang-yang, includes nine ministries, such as national defense; economy and finance; foreign affairs; and land, infrastructure, and transport. It also includes a number of private-sector companies and public institutions— Korea Hydro and Nuclear Power, Export-Import Bank of Korea, and Korea Electric Power Corporation among them.

Diplomatic offices: The Korean task force plans to establish diplomatic offices in several countries in order to perform its mission effectively, including the United Kingdom, the Netherlands, the Czech Republic, Poland, Kazakhstan, the Philippines, Saudi Arabia, and South Africa.

Rockville, Md.–based X-energy announced yesterday that it has selected Zachry Group and a combined team from Burns & McDonnell and Day & Zimmermann to work with the company on the next phases of design and deployment for its Xe-100 small modular reactor fleet.

As part of its “Made in Ontario” strategy announced last year, Bruce Power has awarded a contract valued at C$130 million (about US$100.8 million) to BWXT Canada in support of the ongoing major component replacement (MCR) project at the utility’s eight-unit Bruce nuclear plant.