Market Impacts of Converting to Low-enriched Uranium Targets for Medical Isotope Production

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Market Impacts of Converting to Low-enriched Uranium Targets for Medical Isotope Production ( market-impacts-converting-low-enriched-uranium-targets-medic )

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CHAPTER 3. COST IMPACTS OF LEU-TARGET CONVERSION 42 MARKET IMPACTS OF CONVERTING TO LOW-ENRICHED URANIUM TARGETS FOR MEDICAL ISOTOPE PRODUCTION, ISBN 978-92-64-99197-2, © OECD 2012 Table 3.2. Cost range related to containers, including regulatory approvals Designing and developing new containers, if necessary EUR 300 000-1 M Purchasing new containers, per container Modifying containers, fleet costs EUR 200 000-300 000 EUR 1 M-1.6 M For the high infrastructure impact scenario, the assumption was that the processor would be able to handle more targets (as they invest more in infrastructure) and thus would require additional containers to ship the irradiated targets (where the processor indicated that additional containers could be necessary). This scenario also included the cost to modify the existing fleet of containers. The low infrastructure impact scenario assumed that throughput in processors would be restricted (as they spent less on infrastructure changes) and therefore would not require any additional containers; they would only modify their existing fleet. Under both of these scenarios, the costs related to container changes were applied during the year of conversion. The costs provided included the cost of obtaining transportation regulatory approvals. Two other important cost impact elements were identified for this stage of the supply chain: the cost of shipping additional targets as a result of changes to irradiation sourcing patterns; and the cost of transportation regulatory approvals for new routes. Neither of these elements was modelled. For the former element, the supply chain indicated that the cost of shipping additional targets was not related to changes in irradiation sourcing patterns but rather the need for sending additional targets in general; however, no data on cost increases were provided to the NEA and therefore the impact could not be modelled. For the latter, the experts indicated that regulatory approval for new routes was an important issue, but that the use of new routes was not necessary related to LEU- target conversion and therefore should not be modelled. Cost impact elements affecting processors Processors faced the most incremental cost impacts of all the different levels of the supply chain. The important cost impact elements identified for processors were: • conversion infrastructure project costs (operating and capital) and waste infrastructure;2 • operating cost increases resulting from using LEU targets; • cost impacts related to providing information necessary for generator manufacturers to obtain health regulatory approvals. In addition, the expert working group had identified the cost impact of obtaining regulatory approvals for changes to gaseous emissions as important. However, during subsequent conversations the experts agreed that there should be no important changes to isotope release amounts from conversion. The experts also agreed that although there is an increase in plutonium from the use of LEU targets (compared to HEU targets), the amount of the increase is very minor and therefore there is no significant change over the full volume of the waste. Therefore, there is no increased concern. It was clearly noted by supply chain participants that there was always prudent management of all wastes regardless of the type of targets used. 2. At this stage, it is not possible to determine final waste disposal costs as such disposal routes are not yet implemented. Waste costs were reflected in both the estimates for infrastructure changes and ongoing operating costs. These impacts may need to be re-examined when more details on final waste costs are known.

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