Bethesda, Md. July 25, 2006 -– The Boston Consulting Group (BCG) today announced that its study, Economic Assessment of Used Nuclear Fuel Management in the United States, concludes that nuclear fuel recycling, as part of a portfolio strategy in which a large scale integrated recycling plant complements a repository (such as the planned Yucca Mountain repository) could be attractive for solving the long-term used nuclear fuel management requirement of the U.S. nuclear power market. Conducted for Bethesda, Maryland based AREVA, Inc., BCG performed the first extensive study of proprietary operational and financial data from decades of AREVA’s nuclear recycling experience at La Hague and Melox facilities in France.
The study shows that the economics of recycling and disposal of high level waste in Yucca Mountain are comparable to the economics of the targeted once-through U.S. fuel cycle, especially considering uncertainties that surround the nuclear fuel cycle, such as capital investment costs and uranium prices.
”This study shows that current generation recycling technologies for used nuclear fuel are in an economic range that can be competitive,” said Dennis Spurgeon, Assistant Secretary for Nuclear Energy. “This economic benchmark is useful as we work on advanced recycling technologies that make better use of our energy resources and reduce the space and time needed to store nuclear waste.”
“As companies and governments decide how to navigate the opportunities presented by nuclear power technologies, BCG’s economic analysis of AREVA’s experience as one of the world’s leading reprocessing and recycling plant operators offers vital insight into the development of a comprehensive nuclear waste management strategy,” said Rick Peters, Senior Vice President and the head of BCG’s worldwide energy practice.
Using AREVA’s established technical expertise and experience, BCG evaluated the costs of a large scale state--of-the-art fuel treatment plant with enhanced processes integrated with recycled fuel manufacturing.
The study reports that recycling, as part of a portfolio strategy in which an integrated treatment and recycling plant complements a repository such as the planned Yucca Mountain repository, offers specific benefits including:
o Increasing the capacity of Yucca Mountain by a factor of 4 by recycling newly discharged fuel within four years and cooling the vitrified high level waste for 25 years at the recycling facility.
o Providing a comparable cost of disposal while eliminating the need for a second repository during the 50 years of recycling plant operation..
o Creating an effective long term hedge on rising fuel costs by providing 20-25 percent of the annual nuclear fuel needs in the U.S. through recycled products.
o Reducing used fuel inventory in the short term by removing the newly discharged, hotter fuel for recycling, and
o Eliminating the need for additional storage at reactor sites while recycling some of the older legacy fuel in dilution with new fuel.
BCG’s access to cost data, supplemented with external reports, surveys and interviews, takes into consideration the economics of the back end of the nuclear fuel cycle and the specifics of the U.S. context and does not represent an accounting audit of the data. The report’s conclusions reflect BCG’s efforts to develop a detailed understanding of the economics of recycling within specific U.S. parameters.
To download a copy of the study, please visit www.bcg.com/publications.
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About AREVA
As the leading U.S. nuclear vendor and a key player in the electricity transmission and distribution sector, AREVA Inc.’s 5,000 American energy employees are committed to serve the nation and pave the way for the future of the electricity market. With 40 locations across the nation and nearly $2 billion in energy revenues in 2005, AREVA Inc., through its subsidiaries combines homegrown leadership, access to worldwide expertise and a proven track record of performance. In the U.S. and in over 100 countries around the world, AREVA is engaged in the 21st century’s greatest challenges:
making energy available to all, protecting the planet, and acting responsibly towards future generations.
AREVA Inc. is headquartered in Bethesda, Maryland.
About The Boston Consulting Group
BCG's Energy practice helps companies navigate an increasingly complex and uncertain business environment. We work with the full range of oil, gas and utility players in the industry, and are helping define the new rules of the competitive game in many countries around the world.
Since its founding in 1963, The Boston Consulting Group has focused on helping clients achieve competitive advantage. Our firm believes that best practices or benchmarks are rarely enough to create lasting value and that positive change requires new insight into economics and markets and the organizational capabilities to chart and deliver on winning strategies. We consider every assignment to be a unique set of opportunities and constraints for which no standard solution will be adequate. BCG has 61 offices in 36 countries and serves companies in all industries and markets. For further information, please visit our Web site at www.bcg.com.
Press contacts: AREVA - Penny Phelps – 301-841-1600
Boston Consulting Group – Karen Rosen – 416-955-4263
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