28 AUGUST 2015 - ROYAL COMMISSION CONFIRMS SUCCESSFUL TENDERERS

The Nuclear Fuel Cycle Royal Commission has awarded four tenders to firms to produce detailed data on a range of key issues related to the nuclear fuel cycle.

The Commission confirmed today the consultancies had been appointed to deliver quantitative assessments of the lifecycle costs of investment in the three parts of the nuclear fuel cycle in which SA does not operate, and to understand the key uncertainties in these cost estimates.

Commissioner Kevin Scarce said today the research produced would ensure the final report, due in May next year, contained “up to date and appropriate” costings and meaningful analysis that is relevant in a South Australian context.

“This research is central to providing accurate data on whether South Australia should consider further engagement with the nuclear fuel cycle,” he said.

“The work also incorporates an assessment of the minimum revenue flows that would be required to ensure the profitability of these investments. Sitting above these analyses of costs and revenue flows is an evaluation of the macroeconomic impacts of these investments on the wider South Australian and Australian economies, should they be developed.

“This is very much about ensuring we have the data we need to answer the Terms of Reference.”

Details of the contracts awarded:
Computational General Equilibrium (CGE) Modelling
Ernst & Young (including The Centre of Policy Studies, Victoria University)
The focus of this statement of work is to quantify the direct and indirect macroeconomic impacts upon the wider South Australian and Australian economies that may follow from a significant investment in any one or multiple parts of the nuclear fuel cycle. Specifically, the CGE modelling work will quantify the impact of these investments on the mobility of primary resources – labour and capital – to a new nuclear industry. The modelling also shows how this may influence other existing industries in terms of higher or lower, labour, primary resource cost, or costs of capital imposed upon them. This work will be informed by nuclear power generation business case to present an evaluation of the macroeconomic and industry impacts of integrating a nuclear power generator in the National Electricity Market.

Quantitative analyses and business case for developing nuclear power plant in South Australia
WSP | Parsons Brinckerhoff (including KPMG, Sargent & Lundy and Aquenta)
The focus of this statement of work is to quantify the capital and operating costs over the engineering, construction, operation and decommissioning phases of the life of a nuclear power plant in South Australia, using labour and material cost databases specific to this state. The scope of this body of work comprises an assessment of three types of Gen III+ nuclear power plants – a GW-scale light water reactor, a pressurised heavy water reactor of capacity ~600 MWe and a small modular reactor of capacity

Quantitative analyses and business case for radioactive waste storage and disposal facilities in South Australia
Jacobs Australia (including Jacobs UK, MCM International and Altus Page Kirkland Australia)
The focus of this statement of work is to quantify the capital and lifecycle operating costs over the engineering, construction, operation, decommissioning and post-closure monitoring phases of a possible radioactive waste storage and disposal facility in South Australia. This piece of work will enable the Commission to present estimates of the cost of establishing a range of waste storage facilities to host a variety of waste categories, including but not limited to a geological disposal facility for high-level waste. In addition to the cost of establishing the facility, this assessment will also incorporate calculations to determine the costs of establishing enabling infrastructure such as road, rail, port and electricity transmission. The cost and revenue estimates produced, as an output from this body of work will form a key input to the CGE modelling that is being undertaken in parallel.

Quantitative analyses and business case for Uranium conversion, enrichment and fuel fabrication facilities in South Australia
Hatch (including Inception Group)
The focus of this statement of work is to quantify the capital and lifecycle operating costs over the engineering, construction, operation and decommissioning phases of uranium conversion, enrichment and fuel fabrication facilities in South Australia, using labour and material cost databases specific to the State (where relevant). This body of work integrates the development of estimates of capital and operating costs as well as minimum revenue requirements, for the upstream uranium processing plant to viably supply upgraded uranium fuel to a possible light water reactor nuclear power plant or a heavy water reactor nuclear power plant. This work will also incorporate assessments of market forecasts for uranium fuel to 2030, and what these forecasts may suggest the time-horizon for the viable development of these plants in SA to be. The cost and revenue estimates produced, as an output from this body of work will form a key input to the CGE modelling that is being undertaken in parallel.