Exciting Times for the Nuclear Industry

Sep 07 - Nuclear Plant Journal

1. What is the difference between AECL and AECL Technologies organizationally?

AECL Technologies, incorporated in the State of Maryland in 1988, is the American subsidiary of AECL or Atomic Energy of Canada Ltd., which is a Canadian crown corporation.

2. How do you justify the use of nuclear energy economically?

We need to have new base load power in the United States. With the over reliance on gas-fired power plants over the last several years and the rising cost of gas, we need to relook at nuclear power as a means of achieving price stability going forward. It is important for our economy. Nuclear provides environmental advantages and cost competitiveness and it also meets President Bush's Clear Skies initiative. For last 10 years we have been building a lot of combined cycle gas fueled plants. Diversity of fuel mix is also very important. New nuclear plants are competitive with gas at the $3.25 per million BTU price. Gas is currently selling at $6.40 per million BTU.

In China, one out of every five days, people are without power for some part of the day. Their economy is growing at the rate of 8% to 9% annually. Their generation cannot keep up with the demand for energy. Nuclear energy will enable China to produce the needed energy with environmentally friendly technology.

3. What is AECL's involvement in current nuclear power consortiums?

We have a very good design, which is evolutionary from CANDU-6. We have taken the best of light water reactors and the best of CANDU 6 and combined them together. We completed two units in China, one in July 2003 and the other one in December 2002, both, ahead of schedule and on budget. AECL's last six plants were built ahead of schedule and on budget. Our price is competitive with alternative sources of energy. There is room for all reactor technologies.

We feel fortunate that Dominion did an evaluation of technologies and they selected AECL's ACR-700 design for consideration at their North Anna site. It is my impression that Dominion liked AECL's commitment to nuclear power for the long-term and our commitment to building a new nuclear plant on a firm price and fixed schedule. They liked our on-line refueling, which gives them operational flexibility. It is an exciting time for AECL Technologies as well as the nuclear power industry.

AECL is part of the Dominion consortium along with Bechtel and Hitachi. A second consortium led by TVA is looking at the Toshiba- ABWR design for potential deployment at their Bellefonte plant site. And, a third consortium with a group of utilities is looking at an AP1000 and the ESBWR, but has not selected a site.

4. What is the difference between light water reactor technology as compared to the ACR-700 technology?

I consider the ACR-700 a light water reactor since it uses light water for cooling. We do have heavy water, but it is used as a moderator only. The ACR-700 is different from previous CANDUs in this regard, having 75% less heavy water than the CANDU-6's. The ACR- 700, like all previous CANDU designs, does have online fueling. Current light water reactors shut down on an 18-month or 24month cycle for refueling, whereas, in ACR- 700 technology we do not have to do that. We are looking at a three-year operational cycle with a 21-day maintenance outage. In light water technology, fuel leakers require shutting down the plant and replacing the fuel; whereas in ACR-700 Technology, with our on line fueling capability, we can replace the fuel at power and without shutting the plant down and keep operating.

The other difference is that the ACR700 does not have boron in the reactor coolant system, which ensures long-term plant life. We have reactor pressure tubes, which are of horizontal configuration as compared to the vertical reactor vessels in the light-water technology. CANDU6's have been very reliable. They have an excellent safety record. Their lifetime capacity factor is 87.3 percent worldwide.

With the Wolsong units, the Koreans have done a tremendous job. They have operated their CANDU-6 units as well, if not better than the light-water reactor plants.

The current world record for continuous operation of a nuclear power plant is Pickering 7, which operated for 984 days before shutting down for maintenance. Again, we do not have refueling outages. Online maintenance is very much a part of CANDU-6 operation and will be so for the ACR-700. We have found that 65 to 75% of the forced outage items are related to the balance of plant (BOP) - not the nuclear steam plant. We have Bechtel and Hitachi working with us on the BOP. We are challenging them to understand those BOP issues and either put the necessary redundancies or include the needed engineered equipment so that we may have the required BOP reliability that we need.

We are looking at the entire ACR700 plant to insure standardization of pipe sizes, valves, hangers, supports, and other equipment across all systems of the plant. This helps us to reduce construction cost and enable us to improve maintenance efforts and minimize spare parts requirements.

5. Are there material corrosion issues with ACR-700?

We have had some FAC (Fluid Assisted Corrosion) problems. The affected material was carbon steel in the feeder area, which has now been replaced with stainless steel. We are looking at problems in the nuclear steam supply systems side as well as the BOP and resolving concerns plant-wide to avoid future problems.

The capacity factors 20 years back were 60 to 70%; whereas, our capacity factors starting point today is 95%.

6. What are the characteristics of ACR700 fuel design?

It is of the same basic design that has been used in CANDU units world-wide. The only difference is that it is slightly enriched - to 2.1% whereas all previous units used natural uranium. We share the industry's concern with getting Yucca Mountain licensed and built and envision spent ACR-700 fuel would eventually be stored there.

7. How is Canada handling its spent fuel disposal?

Currently, Canadian utilities store spent fuel on site, initially in their spent fuel storage pools and after a period of time, transfer it to dry storage in Macstor, an AECL design, on-site storage. AECL does have deep repository experience as a result of their running the Whiteshell Laboratory outside of Winnipeg. As a result of this experience with a Canadian deep repository, AECLT has people working with DOE on the Yucca Mountain Project.

8. What is the current overnight capital construction cost ofACR- 700?

We are projecting the cost to be $ 1,000 (U.S.) per kilowatt installed for the 5th unit (the first unit of the third twin). The cost for the first unit will be $1,255 (U.S.) per kilowatt installed. The second twin units will be in the range of $1,100 (U.S.) per kilowatt. The first plant will take 44 months for construction and the 5th unit will require only 36 months construction time period. AECL has designed the ACR-700 for modular construction based on the success we had on Qinshan in China. We currently have over 200 modules which we envision will be built at various locations in the U.S., which will reduce our onsite workforce considerably as compared to the ''stick building" approach of building everything on site as was done for the existing operating nuclear power plants in the U.S.

9. What is the current operating cost of ACR-700?

While our staffing (human resources) cost is a little bit higher, because we have two units, it is offset by our fuel cost being 10- 15% less than that for other light-water reactors. We are projecting our O&M costs to be 1.1 cents to 1.2 cents per megawatt hour; however, this cost is dependent on the operation and maintenance philosophy of the operating utility.

10. What are the qualifications of ACR700 to attract investment?

We have a powerful story in this regard. We have AECL, which is a Canadian crown corporation; we have Bechtel, the world's largest family-owned architect-engineer constructor, and then we have Hitachi, which is a $64 billion a year company, of which $8 billion is in the United States along with 15,000 employees in the U.S.

We have a proven track record of completing our last six units on or ahead t of schedule and on budget. Therefore, when we go to Wall Street they listen to us as we have a very credible story.

11. What are the prospects of building additional ACR-700 nuclear power plants in China?

We have not built an ACR-700 in China. The Qinshan units are CANDU6's. We believe that if we are successful in building ACR- 700's in the U.S. and Canada- on time and on budget, we hope to have good prospects of building ACR700's in China. Also, in that China does not have a lot of natural uranium, we are exploring the potential of an ACR-700 using thorium in China. China has a good abundance of thorium.

12. Is the United Kingdom considering the ACR-700?

Currently the U.K. is planning to go with gas and renewables to meet their future energy needs. They are, however reviewing their strategy in view of Finland ordering a nuclear power plant. 35% of the UK's power comes from outside United Kingdom; therefore they are rethinking their strategy to start building nuclear power plants. However, we are hopeful that they will consider the ACR700 along with the AP 1000 by BNFL/Westinghouse, should they decide to build new nuclear power plants.

13. Concluding remarks

The demand for gas today is such that we do not see its prices coming down; therefore, if the U.S. and Canada keepusing gas-fueled power, it will be difficult to compete in the global markets due to our high-energy prices.

The ACR-700 also lends itself well to water desalination plants. We are part of the project with Texas A&M University, Texas Institute for the Advancement of Chemical Technologies, which is performing a study on the potential deployment of new nuclear power plants on the Texas Gulf Coast. We would like for that new plant to be an ACR-700.

We need new nuclear power plants not only for environmental reasons, but for price stability and national security and national energy security viewpoints. We need diversification of our resources.

Contact: Simon Leung, AECL Technologies, 2251 Speakman Dr., Mississauga L5K 1B2, Ontario, Canada; Phone: (905) 823-9060, ext. 2010, Fax: (905) 823-1290, E-mail: leungs@aecl.ca

By John Polcyn, AECL Technologies.

John Polcyn

John Polcyn was appointed President of AECL Technologies in June, 2003. Prior to joining AECL Technologies Mr. Polcyn held a variety of senior positions with Bechtel Power Corporation as Vice President responsible for global nuclear marketing and business development and with the Tennessee Valley Authority. Mr. Polcyn is a member of the American Nuclear Society, chairman of the Institute of Nuclear Power Operations (INPO) Supplier Participant Advisory Committee and a member of the Nuclear Energy Institute (NEI) New Nuclear Plant Task Force.

This excerpt is from an interview of John Polcyn, President of AECL Technologies, conducted by Newal K. Agnihotri, Editor and Sr. Publisher, Nuclear Plant Journal at NEI's Nuclear Energy Assembly in New Orleans, Louisiana on May 14, 2004.

Copyright EQES, Inc. Jul/Aug 2004