ML23340A014

M231212: Slides - K. Schnoebelen - Discussion of the Administration'S Short- and Long-Term Domestic Uranium Fuel Strategy

ML23340A014
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Issue date:	12/06/2023
From:	Schnoebelen K NRC/OCM
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M231212
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Discussion of the Administrations Short- and Long-Term Domestic Uranium Strategy:

Industry Perspectives on Uranium Enrichment Capacities Kirk Schnoebelen President, Urenco, Inc.

Nuclear Regulatory Commission Public Meeting December 12, 2023

© 2023 Urenco Limited

US Nuclear Power Enriched Uranium Sources US Energy Information Administration Report 2

Russian Invasion of Ukraine has Increased Demand for Non-Russian Enriched Uranium (EUP)

No disruptions in global delivery of Russian EUP supplies 37*

Total reactors

1) New demand from European operators 3,299 tSW requirement in 2023 of Russian design reactors seeking to replace Russian EUP (2024-2035) 34 VVER reactors

2) Increased demand from US nuclear operators 93 seeking to both mitigate potential near-term Total reactors disruptions in Russian supplies (2024-27) and add 14,808 tSW new non-Russian EUP contracts (2028-2046) requirement in 2023 Source: WNA fuel report, 2023

• Includes 6 reactors in Ukraine currently occupied by Russian forces, affects fuel demand in near-term 3

Increasing EUP Availability in Near Term

• Reversal of underfeeding: EUP = Enrichment (SWU) + Uranium Hexafluoride (UF6) underfeeding example: normal feeding example 10 kgEUP = 87 SW + 93 kgU 10 kgEUP = 71 SW + 113 kgU

- Moving to normal feeding means more EUP produced with same SW capacity.

- Requires more UF6 because normal feeding leaves more U235 in depleted uranium than underfeeding.

• Refurbish existing centrifuge capacity

• Use EUP Inventories

- Japanese utilities inventories

- Other commercial inventories

- Government inventories 4

New Capacity Can Be Added To Meet Increased Demand: United States UUSA (New Mexico) expansion

+700,000 SW/a by 2027 UUSA Potential to expand

+4,500,000 SW/a Centrus (Ohio), HALEU project

+900 kg/a by 2024 New capacity must be underpinned by contracts for future deliveries at sustainable prices 5

New Capacity Can Be Added To Meet Increased Demand: Europe Urenco (UK, Netherlands, Germany)

Potential to expand

+3,600,000 SW/a Orano (France), Georges Besse II expansion

+2,500,000 SW/a beginning 2028 New capacity must be underpinned by contracts for future deliveries at sustainable prices 6

Production of LEU > 5% U235 is Under Development Phase I - LEU+: 5.5 to 10% 235U production

- Supports existing nuclear fleet

- License amendment submitted

- Modest physical modifications

- Cost $20-$30 million

- Delivery in 2025 Phase II - HALEU: 10 to 20% 235U production

- Use existing centrifuge technology

- Supports advanced nuclear reactors

- New Cat. II facility at Urenco USA

- Completed cascade design

- Plant engineering design ongoing Urenco USA, Eunice, New Mexico 7

Conclusion

• Approaches to meet increased demand for non-Russian EUP

• Optimizing existing capacity through reversal of underfeeding and refurbishments

• Use commercial and/or government inventories

• Install new enrichment capacity

• Sufficient capacity could be added at existing licensed sites in the US and Europe, and/or at new sites, but investments in both brownfield and potential greenfield projects require:

• Regulatory certainty regarding the role of future Russian fuel imports; and

• Long-term contracts at sustainable prices to support that investment.

Disclaimer: While the information contained in this presentation is believed to be accurate, it is not guaranteed and may be subject to change. References to information relating to third parties are based on information obtained from sources believed to be reliable, but they are not guaranteed to be accurate. Nothing presented here should be relied upon without doing your own independent research and exercising your own independent judgment. The images shown are for illustrative purposes only. Nothing in this presentation represents a commitment to take action by any person or entity.

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