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CHAPTER 3. COST IMPACTS OF LEU-TARGET CONVERSION 40 MARKET IMPACTS OF CONVERTING TO LOW-ENRICHED URANIUM TARGETS FOR MEDICAL ISOTOPE PRODUCTION, ISBN 978-92-64-99197-2, © OECD 2012 element could reveal commercially confidential information these data will not be provided in this report. As noted earlier, many supply chain participants provided confidential information to the NEA in order to facilitate the development of this study with the understanding that the NEA would respect the confidential nature of that information. The expert working group agreed that the key incremental cost impacts would be applied to irradiators and processors. In some cases, there were costs in other segments of the supply chain but they were borne by either the irradiator or the processor (e.g. target development). As a result, all increment cost impacts were modelled for irradiators and processors and the cost were then passed down through the supply chain. The working group recognised that there were incremental costs to generator manufacturers to seek health regulatory approvals for the non-HEU-based 99mTc. These costs include manufacturing of generators (labour, overhead, operations and cold parts) to be supplied to health regulators, related waste disposal, administration and regulatory costs, co-ordination and planning, legal reviews, etc. These costs are required to be paid by each generator manufacturer for each new supplier (processor) of non-HEU-based 99Mo/99mTc. These costs can be important for a generator manufacturer (in the range of EUR 200 000-500 000). However, these costs could not be modelled in this assessment as the data provided to the NEA from generator manufacturers did not allow for LUCM calculations to be developed for this stage of the supply chain. As a result, the cost impacts are mentioned here, but not specifically modelled. Cost impact elements affecting uranium and LEU-target supply Four cost impact elements were identified as important at this stage of the supply chain: the cost difference between HEU and LEU (including the difference from more stringent requirements to secure HEU); research, development and qualification for LEU targets; cost differences between HEU and LEU targets; and the cost of shipping additional non-irradiated targets. The expert working group noted that it was difficult to provide specific data on the cost difference between HEU and LEU, but that regardless, the cost differences would be accounted for in the costs of targets and were not required to be modelled separately. Research, development and qualification of LEU targets were modelled as an impact on processor costs: under most situations it would be the responsibility of the processors as they tend to be the purchasers of targets. Reported values for R&D and qualification of targets range from EUR 500 000 up to EUR 3.4 million, depending on the facility. The reported costs were applied in the LUCM modelling for the specific facility two years before the conversion year. The difference between HEU and LEU targets, including the cost difference between the uranium, was also considered to be a cost impact on processors as they are responsible for the purchasing of targets in most cases. The values provided range from EUR 450 000 to EUR 2.65 million additional per year, depending on the facility. These additional costs were applied every year after conversion for each facility based on their facility-specific reported costs. While the expert working group identified the cost of shipping additional non- irradiated targets as being an important cost impact element, the NEA was unable to model this potential cost. Processors were divided on whether additional containers would be required for shipping non-irradiated targets and were unable to provide any data that would allow for the modelling of this cost impact. Cost impact elements affecting irradiation services An important cost impact element identified for irradiation services was the cost of infrastructure changes required in the irradiator to be able to irradiate the LEU targets. ThesePDF Image | Market Impacts of Converting to Low-enriched Uranium Targets for Medical Isotope Production
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