The economic

potential
in nuclear
decommissioning
December 2022
 Contents

Foreword3

Introduction4

1 What we mean by
“decommissioning”6

2 A worldwide market in
decommissioning nuclear 12

3 Regulatory framework and funding  18

4 Market structure: how to secure

a winning position in the value chain 22

Conclusion28

2
 Foreword
The oil shocks of the 1970s gave rise to instance, the total market value between
massive investment in oil and gas exploration 2051 and 2100 is an estimated US$23b,
and production. But they also prompted a compared with US$8b for the period from
ramp-up in the generation of electricity from 2021 to 2050. Our scenario allows for
nuclear origins to diversify the energy mix. decommissioning 26 nuclear reactors before
Fast-forward several decades and those large 2050 and 33 after this date.
oil platforms, deep-sea operating facilities and
nuclear power plant parks have now reached, Different markets have different key
or are reaching, the end of their useful lives. success factors. Europe, for instance, values
technology and cost considerations. In the
The shift is both industrial and political. US market, which is an oligopoly made up of
Ongoing public controversy about the just five large players, project management
safety of facilities and their role in the expertise and additional benefits, such as
green transition has accelerated the returning savings to customers, are priorities.
decommissioning process, particularly for To be successful, value chain participants will
nuclear power plants. There is also greater need to align their capabilities to local designs
scrutiny from regulators as understanding and business models, rather than adopt a
of the nuclear decommissioning process and one-size approach to decommissioning and
tools increases. dismantling.

At the same time, the act of decommissioning The anticipated size and scale of the nuclear
nuclear facilities, which can take between decommissioning market, coupled with
17 and 20 years to execute, is creating a key its regulatory and technical intricacies,
value pool in the energy markets. Globally, prompted EY-Parthenon to undertake this
the market is worth an estimated US$125b in-depth analysis. We consider this work
to US$135b over the 2021 — 2050 period. to be especially urgent in countries where
In this report, due to ongoing geopolitical new nuclear power programs have been
circumstances, we confine our research to decided but sites capable of accommodating
the top 12 countries. installations are scarce.

Though the impact on the labor markets We believe that complex facility
and the transformation in business models decommissioning, particularly in relation to
in the energy industry will be gradual, it will nuclear infrastructure, will continue to evolve
be, nonetheless, significant. In France, for and expand in the coming years.

Bruno Bousquié Anton E. Poryadin

Partner, EY-Parthenon France Partner, EY-Parthenon USA

The economic potential in nuclear decommissioning | December 2022 3

Introduction
Dismantling nuclear power facilities is a long-term process;
nuclear waste management is an even longer undertaking.
As the world begins to decommission its aging nuclear
energy production plants, safely and with due regard for
the environment, and to install new capabilities in their
place, EY-Parthenon seeks to:

• Shed light on the different stages of decommissioning

nuclear installations and the complexity of the process.

• Estimate the size of the market and its expected

evolution up to 2050, while acknowledging that
decommissioning could continue until 2100.

• Address the regulatory framework and financing.

• Understand the structure of the market, its value chain,

the key players and their winning strategies.

4
 Different types of assets to be decommissioned
Matrix maturity x complexity x attractiveness for decommissioning

Oil and gas

Power and utilities
Key focus for
Nuclear plants and offshore rigs bear
decommissioners the most potential for decommissioning,
Metal

as they encompass high-sensitivity,

high-risk, large and extended network
HIGH

infrastructure.

Nuclear
power
plants

Offshore
oil and
gas rigs
Hydroelectric
power plants
COMPLEXITY

Oil refineries

Onshore
Latest technologies: very oil and
limited decommissioning gas wells
needs to date, but significant
further potential to be Decommissioning is an
investigated. Mines already mature process,
Coal-fired typically displaying low
power levels of dismantling
plants complexity.
Wind power
plants

Solar power plants

LOW

LOW MATURITY HIGH

Facilities in the fields of oil and gas, power and utilities, and mining and metals are to be decommissioned.
This graph maps process maturity (x axis) against complexity (y axis). Dismantling higher-complexity
infrastructure has not yet reached technical and economic maturity. Nuclear power plants and offshore oil
and gas rigs offer the most economic potential and will impact the market significantly.

Source: desk research, EY-Parthenon analysis.

The economic potential in nuclear decommissioning | December 2022 5

 What we mean by
"decommissioning"

In its strictest sense, “decommissioning,” a nuclear power

plant refers to the first step of the process: phasing out
nuclear equipment activity.

The next step, “dismantling,” relates to the physical

activities of uninstalling and deconstructing equipment
— the reactor and the primary, secondary and tertiary
circuits — as well as nuclear and non-nuclear buildings.

Commonly, the term “decommissioning” is used to

describe both decommissioning and dismantling (D&D)
activities. Decommissioning is the cover-all term we adopt
for the purposes of this report.

1
A nuclear power plant comprises multiple buildings and
types of equipment. Some, as illustrated in the diagram
opposite, are designated for nuclear activities, such as
the combustible building, reactor building and peripheral
buildings. Other are non-nuclear or conventional, and
include the engine room, the turbines and the generator.
All must be decontaminated and demolished as part of the
decommissioning process.

6
Decommissioning scope
Overview of a pressurized water reactor and its main circuits

Nuclear Conventional,
buildings non-nuclear buildings

Reactor
building

Engine room

Steam
generators
Peripheral Electricity grid
Combustible 1 building:
building emergency 2 Turbines Generator
Pressurizer auxiliaries and
Primary control room
pump
Operations
building
Condenser
Diesel
generators
Reactor vessel building
Cooling tower
3

Nuclear auxiliaries building

Cool water source

1 Primary circuit Set of buildings per tranche1 (x2)

2 Secondary circuit Buildings in common for tranches (x1)

3 Tertiary (cooling) circuit

1. The common format in France for a nuclear site is two identical nuclear tranches.
Source: IRSN, desk research, EY-Parthenon analysis.

The economic potential in nuclear decommissioning | December 2022 7

1 | What we mean by "decommissioning"

Decommissioning a nuclear power plant

comprises complex activities, such as
decontaminating and dismantling radioactive
buildings and equipment, as well as more
conventional activities, such as demolishing
non-nuclear buildings.

Decommissioning process

Regulatory Permanent shutdown Decommissioning Decommissioning

steps declaration plan filing decree

Stages Production Decommissioning preparation Decommissioning

Permanent shutdown: Initial state of

end of production decommissioning

2 — 3 years 15 — 17 years

Facilities

Decommissioning Fuel removal from core Radioactive waste processing

steps Circuit draining

Radiological samples and examination

1 2

Source: desk research, EY-Parthenon analysis.

8
 The decommissioning process typically starts once the purpose (e.g., greenfield or brownfield). Rehabilitation
nuclear reactor is permanently shut down. It ends when requirements for former nuclear sites vary from country
the site is rehabilitated. Getting to this end point involves to country. France is especially stringent, requiring that
several step-by-step activities: former nuclear sites are made fit for industrial purpose.
• Drain circuits and remove the remaining fuel from the
The overall decommissioning process lasts around
nuclear core for further treatment of radioactive waste.
17 to 20 years. It includes a preparation phase
• Dismantle and treat the radioactive equipment (around two to three years) and the works phase
installed in the reactor zone (primary pump, steam (around 15 to 17 years). Simple and conventional tasks,
generators, pressurizers, etc.) such as the demolition of non-nuclear buildings no longer
• Dismantle the nuclear island and decontaminate the in use, may be performed in parallel. The most complex
nuclear components. tasks, such as the removal of fuel and decontamination
• Demolish the buildings (both nuclear and non-nuclear). of equipment, must be performed in strict order before
undertaking any other activity.
• Rehabilitate the site in accordance with its future

Filing for site

de-licensing

Final state after

decommissioning

and disposal Fuel removal from pool

Decommissioning of reactor zone peripheral facilities

Removal of uncontaminated equipment, disposal into waste

Reactor decommissioning

Decontamination of nuclear facilities

3 4
Demolition of buildings

Fill below-ground structure

with rubble from demolition

Compatibility study for future

site usage
5
Site rehabilitation

The economic potential in nuclear decommissioning | December 2022 9

1 | What we mean by “decommissioning”

Throughout the nuclear decommissioning process, the disposal of waste materials is a major
challenge. A decommissioned nuclear facility emits different types of waste, each with different
levels of toxicity and different treatment needs:

1 Standard demolition waste

This is conventional rubble from demolished buildings
and non-radioactive dismantled equipment.

Last cores
2
Once permanent shutdown is officially complete,
partially consumed fuel remains and must be treated
like spent nuclear fuel.

3 Spent nuclear fuel

This fuel is combustible and has been irradiated but
can no longer trigger a nuclear reaction. It needs to be
evacuated from the nuclear sites, transported and stored
in specialist locations for treatment. Part of the waste is
recycled for further use in operating sites; the remainder
constitutes long-term radioactive waste.

4 Long-term radioactive waste

This waste remains after the treatment of nuclear fuel and
the dismantling of radioactive equipment. It will include,
for instance, metallic elements from the reactor building
and parts of the primary and secondary circuits.

The radioactivity of nuclear waste decreases The treatment of spent nuclear fuel and
naturally over time. The radioactivity level long-term radioactive waste occurs during
of the waste dictates the strategies and both the operational phase of the nuclear plant
approaches available: and at the decommissioning phase. As the
• High-level radioactive waste (HLW) is activities are performed by specialist players on
typically stored for centuries before a different value chain, we have excluded them
disposal to allow for radioactivity decay. from the scope of the decommissioning market,
as analyzed in this paper.
• Low-level radioactive waste (LLW) may be
sent to land-based disposal sites immediately
or within just a few years.

10
The economic potential in nuclear decommissioning | December 2022 11
 A worldwide market
in decommissioning
nuclear
Estimated at US$125b — US$135b
over the period (2021–50)

For every nuclear power plant that nears the end of its useful life,
hundreds of millions of dollars will be spent on decommissioning activities
over the coming decade. In turn, a huge worldwide market and value chain
is evolving to service these activities.

Over the second half of the 20th century, leading economies, including the
US, France, the UK and Japan, Sweden implemented significant nuclear
development programs. The legacy of their heavy investment in complex
technological capabilities is recognized expertise in the civil nuclear field.
Now, 50 years on, those capabilities are to be leveraged for the final phase
in the lifecycle of the earliest power plants: decommissioning.

Nuclear decommissioning presents a major opportunity for the whole

nuclear industry over the coming decades. Decommissioning equates

2
to around 17 to 20 years’ worth of projects, estimated at hundreds of
million dollars, per nuclear power plant. These projects will bring together
multiple players: operators; contractors; local; national and international
authorities, and regulatory bodies. They will leverage capabilities as distinct
and essential as radioactivity treatment, complex project management and
financing, across an emerging global value chain.

EY-Parthenon values the total worldwide nuclear decommissioning

market at around US$125b to US$135b over the (2021–50) period. This
period — a reflection of the lengthy duration of decommissioning projects
and the variety of activities they entail — is, we believe, more meaningful
than yearly analysis of the size or growth of the decommissioning market.

Given current geopolitical circumstances, our baseline scenario market

estimation is informed by the selected top 12 countries in the world by
number of active reactors:

US — 92 reactors Belgium — 7 reactors

France — 56 reactors Spain — 7 reactors
China — 55 reactors Sweden — 6 reactors
Japan — 33 reactors Switzerland — 4 reactors
South Korea — 25 reactors Germany — 3 reactors
UK — 9 reactors Taiwan — 3 reactors

12
Estimated market size based on nuclear scenarios

Scenarios and underlying Impact on the Nuclear power plant decommissioning market
industry trends decommissioning scenarios in 12 countries,2 US$b
market (constant prices)

Baseline: Gradual growth due to

• Hundreds of nuclear power planned decommissioning
of NPPs with expired Total US$131b
plants (NPPs) are nearing
the end of their lifecycles service life 5.9 4.0
• Some project are delayed due
3.5
A
to immaturity of solutions (e.g.,
graphite reactors, HLW disposal)
• Funding is channeled toward
2021 2030 2040 2050
economic support, not
decommissioning projects

Accelerated decommissioning1 Rapid growth to 2040

policies: due to accelerated 8.2 Total US$159b
• Renewable energy and fast decommissioning1 of NPPs,
which have experienced 3.7 4.4
industrial battery storage
development tougher competition from
B other energy sources, such
• Low oil prices as renewables
• Fear of nuclear disasters
~10 years ~5 years
UK Japan France US
earlier earlier

Postponed decommissioning1 No significant demand

in the coming decade Total US$92b
policies:
• Lack of stable energy supply due to the extension of
NPP lifetimes 6.0
from renewable energy
sources
2.6 2.1
C • High oil prices
• Energy transition: nuclear
energy for decarbonization
goals
~5 years ~10 years
• Reactor lifecycle extension UK Japan
later
France US
later
in the US and France

1. Based on markets’ dependence on nuclear power: the UK and Japan have a small nuclear share; France has a large nuclear share; the US has strong zero-emission targets.
2. Germany, France, Belgium, the UK, Switzerland, Spain, Japan, Taiwan, South Korea, China Mainland, the US, Argentina.
Source: Decommissioning market model (based on client data, OECD and US Nuclear Regulatory Commission reports and expert interviews), EY-Parthenon analysis.

This estimation comes with caveats. The outlook for nuclear So, for example, a lower share of nuclear in the energy
is uncertain and subject to unpredictable political decisions. mix in the UK and Japan, compared with France and
For instance, a government’s decision to launch a new the US, makes both countries more likely to fast-track
nuclear build program, or extend or reduce the life span of their decommissioning start dates. However, the period
existing reactors, would impact the decommissioning market between the final shutdown of a plant and the launch of
significantly. decommissioning will depend on many factors, including
For this reason, EY-Parthenon has worked on two how quickly the site is needed for a new nuclear plant, the
complementary scenarios: an accelerated decommissioning availability of financial and human resources and the political
scenario (scenario B) and a postponed decommissioning environment.
scenario (scenario C), based on a country’s specific
circumstances and reliance on nuclear.

The economic potential in nuclear decommissioning | December 2022 13

2 | A worldwide market in decommissioning nuclear

EY-Parthenon, in its baseline scenario is the exception. Its decommissioning

for the period 2021–50, identifies process will be completed by the end
those countries that will contribute of the considered period (2050),
most to the evolving market in due to an early political decision to
nuclear decommissioning. Japan is exit from nuclear and transition to
top, with around US$40b, followed by renewables in the aftermath of the
the US at around US$32b and the UK 2011 Fukushima disaster.
at US$24b. France follows at US$8b
For some countries, the market for
and Germany at around US$6b.
nuclear decommissioning should
Together, these countries, which
remain significant throughout the
implemented the most ambitious
second half of the 21st century too.
nuclear programs back in the 20th
For instance, in France, the total
century, now make up more than 80%
market value in the period 2051–
of the global market. The rest of the
2100 is estimated at around US$23b,
market comprises smaller countries
compared with just US$8b in the
or countries with a lower share of
period 2021–50. Our scenario factors
nuclear in their energy mix.
in decommissioning 26 reactors in
Almost all of the front-runners France before 2050 and 33 after
are at the start of their nuclear 2050.
decommissioning programs. Germany

Baseline scenario: total estimated market size by country,

2021–50

US$40b

US$32b

US$24b
US$20b

US$8b
US$6b

Japan US UK France Germany Others 7

14
Globally, between 2021 and 2050, around 200 nuclear • Labor costs: A highly skilled workforce is needed
reactors will enter the decommissioning process. We base throughout the decommissioning process to handle
this on the assumption that the average reactor has a complex tasks associated with dismantling radioactive
lifetime of around 40 years and that decommissioning will equipment and buildings. Given the anticipated boom in
start the year after a reactor is shut down permanently. the nuclear decommissioning market over the next few
decades, alongside the possible launch of new nuclear
However, the hypothesis misses two key observations:
programs, there is a growing likelihood of a nuclear
• As new technologies emerge, the longevity of nuclear skills shortage, which will increase competition for
reactors tends to increase. The oldest reactors are resources and drive up wages.
expected to last 40 years, but newer reactors could
• Regulating policies: The more stringent a country’s
remain in service for almost 60 years. The bulk of
nuclear cleanup policy, the greater the impact on total
decommissioning in the 2021–50 period will mostly
cost. The latest and most efficient technologies for
comprise the oldest reactors.
preparing and undertaking decommissioning, treatment
• Not all reactors are decommissioned immediately of waste and storage, etc. could prove the most costly.
after permanent shutdown. Some countries, including
the UK, may stipulate a “safe enclosure” period and will Other factors may influence the total decommissioning
delay the decommissioning process for years or even cost. The size and complexity of the site will have a
decades to benefit from natural radioactivity decay. bearing. Some reactors are sited in the open air; others
are housed in underground cave-like structures. Some
The total cost of decommissioning a nuclear reactor will have on-site nuclear storage facilities; others will
can vary from US$500m to US$2b, subject to geography not. Understanding the initial state of the existing site
— Western Europe tends to be least expensive — and other and its post-decommissioning target state (greenfield
critical factors: or brownfield, etc.) will help to anticipate delays to the
• Reactor type: First-generation reactors were not process.
designed to be decommissioned, which triggers
additional costs and land issues further down the line. Variations in total cost are also influenced by the activities
Later reactors were designed to be decommissioned at included within the scope of decommissioning. The
a future date. So, decommissioning an early gas-cooled inclusion of pre-decommissioning, waste management
reactor (GCR) is likely to cost, on average, twice as and treatment (e.g., waste packaging, transportation and
much as a later pressurized water reactor (PWR). disposal) or rehabilitation costs, for instance, will impact
the cost reported for decommissioning a reactor.

Estimated market size by country

Cumulative US$15b — US$25b US$75b — US$85b US$125b — US$135b

market size

US$7b US$7b
7 Japan
US$6b US$4b US
6
US$5b UK
5 France

4
US$3b Germany
Others

3
US$2b
2
1

2021 2025 2030 2035 2040 2045 2050

The economic potential in nuclear decommissioning | December 2022 15

2 | A worldwide market in decommissioning nuclear

The total value of a decommissioning project can be schematically spread over the duration of the
project.

Projects usually start with the highest-value tasks (e.g., treatment of irradiated equipment and
automated technology). However, they represent a minor share — around 1% to 2% — of the total
project’s value per year over the first five years. As the project advances, the yearly value of the
project ramps up to around 7% to 10% of total value (depending on the country and reactor type).

The lowest-value tasks tend to be performed at the end of the project. At this point, secondary
markets may arise, and activities may be undertaken by companies with less nuclear-specific
expertise and a different cost structure.

Decommissioning project cost structure (PWR reactor)

Cost structure Phases Cost range Main drivers Sources

US$0.5b — • Cases from experts and

100% Total budget
US$1.5b public documents

• Experts in
Non-addressable
• NPP operator’s policy (US, decommissioning
0-30% (captive)1 US$500m
Japan <10%, EU up to 25%) projects in the US
and UK

• Addressable part depends

US$0.3b —
Addressable on regulatory rules, labor
US$1.5b
70-100% (tenders) cost, type of reactor, applied
(graphite up
technologies, disposal facilities
to US$3b)
and other drivers

Preparation
US$30m — • Country labor costs
10%-40% (project
US$600m (wages and taxes)
management)2 • OECD
• US Electric Power
Research Institute
• Type of reactor: Boiling Water
Decontamination US$60m — Reactor (BWR), Pressurized • US Nuclear Regulatory
20%-40% and dismantling US$600m Water Reactor (PWR) Commission
• Applied technologies • Experts in
decommissioning
projects in the US,
Radioactive • Availability of disposal facilities UK and Japan
US$50m —
15%-25% waste
US$400m
• Strictness of cleanup policy
management • Type of reactor (BWR, PWR)

Spent nuclear • Volume of spent nuclear fuel

US$30m —
10%-20% fuel • Prices for casks, country labor
US$300m
management costs

2%-6% Other3 US$5m —

US$100m

1. Operator maintenance expenses: operations, security, electricity, taxes, insurance, etc., management of the decommissioning project, preparatory works
(for instance, data collection by NPP employees).
2. Planning, scheduling, budgeting.
3. E.g., rehabilitation costs
Source: OECD, NRC and EPRI reports, expert interviews, client data, EY-Parthenon analysis.

16
 Focus on the main reactor
technology types

PWR BWR GCR

Share of installed 55% 22% 3% (all operational

reactors reactors located in
the UK)

Coolant Water Water Carbon dioxide gas

Moderator Water Water Graphite

Fuel Enriched uranium (higher Enriched uranium Natural uranium

level than in BWR)

Additional Cooling water is kept In the reactor core, water Carbon dioxide circulates
information under pressure so that it boils under a pressure of through the core and
cannot boil. 75 atmospheres, raising reaches 650°C.
the boiling point to
The primary coolant 285°C. Gas then flows to gas-to-
does not drive the steam water heat exchangers
turbine: Heat from the Steam is generated to (located outside the
primary water-cooling drive a turbine. reactor) to boil the water
system is captured in flowing through it.
a heat exchanger and
transferred to water in a
secondary system.

The core is filled with

water pressurized to 150
atmospheres, allowing
water to reach 325°C
without boiling.

Estimated US$600m US$670m US$1,200m

total cost of
decommissioning,
including waste
management and
treatment (in
Western Europe)

The economic potential in nuclear decommissioning | December 2022 17

 Regulatory
framework and
funding

The decommissioning market in each country is directed

by the regulatory framework that prevails within it.

The framework shapes the rules that apply to the

preparation, structuring and implementation of
decommissioning projects. It underpins the way in which
funding and financial responsibility for nuclear plants is
split in the host country.

This is critical because funding schemes for

decommissioning projects, and the division of
responsibilities across players, depend on the makeup
of the energy sector. Some countries adopt an operator-

3
based model; for some, it is government-based, using
funds specifically earmarked for decommissioning; others
operate a hybrid model.

18
 1
Operator model

MODEL N°
Notably used in France and Belgium, this model sees the costs for
decommissioning and waste management covered by the operator of the
nuclear power plant.
Decommissioning is financed by the lifetime activity of the power plant. It is
incorporated into the energy tariff, as a kilowatt/hour cost, from construction
through to decommissioning the nuclear site, and is passed onto the end user.
Under this financing scheme, nuclear operators must hold internal provisions
in the form of segregated and dedicated funds, which are backed by assets of
sufficient security and liquidity to cover their liabilities for decommissioning
and waste management.

2
Government-run model
MODEL N°

Under this model, governments bear responsibility for decommissioning

costs. Indirectly, however, decommissioning is funded by public spending and,
ultimately, taxes.
Take the UK, where a nuclear plant operator is responsible for defueling
the site and verifying that it is fuel-free before ownership of the site can be
transferred. For first-generation reactors, costs are reported in the accounts
of the Nuclear Decommissioning Authority (NDA). The NDA is mostly funded
directly by the UK government. For second-generation reactors, a segregated
fund (Nuclear Liabilities Fund (NLF)) meets the long-term costs of cleaning,
waste management and decommissioning. If the NLF cannot bear the costs and
liabilities, the UK government will take ultimate responsibility for them.

3
Hybrid model
MODEL N°

In hybrid models, the management and financial liabilities for decommissioning

the plant, and for packaging nuclear waste, lie entirely with the plant operator.
Public authorities will make sure that sufficient funding is secured by the
operator from nuclear power plant activity.
In Germany and the US, for instance, the operator is obliged to build up
financial reserves for decommissioning during the lifetime operation of the
plant. Yet financial responsibility for waste management transportation
and final storage rests with government. In exchange for the transfer of
responsibilities, the nuclear operator pays a one-off fee to finance a public
and external fund and comply with the “polluter pays principle”.

The economic potential in nuclear decommissioning | December 2022 19

3 | Regulatory framework and funding

Irrespective of the model adopted, the sheer Furthermore, the regulatory framework defines
scale of decommissioning projects, and the 17 whether a decommissioning process will start
to 20 years they take to complete, means that immediately after the permanent shutdown of
the responsible party — whether operators or a nuclear power plant, as in France, or after
governments or both — must secure financing a few decades of “safe enclosure” to benefit
by recording significant provisions during the from natural radioactivity decay, as in the UK.
power plant’s operational phase.
Regulation makes the nuclear
Financing can be achieved by drawing down decommissioning market very local in nature,
on segregated and earmarked assets. However, with rules varying between one country
the value and liquidity of these hived-off assets and the next. Players must therefore adopt
may fluctuate with the economic, political and local and country-specific strategies for
geopolitical environment. Specific financing engagement in the decommissioning market.
schemes can help to mitigate risks associated
with the availability of cash.

The regulatory framework also sets out

how radioactive materials are treated in
decommissioning projects. Some countries,
such as France, apply a caution principle to
every object or material originating from a
nuclear site, requiring that it is treated and
stored as an item exposed to radiation. Other
countries, such as Belgium, differentiate
between radioactive waste and what otherwise
might be considered conventional waste, using
radioactivity thresholds. Regulatory differences,
even between two EU countries, exist and
can impact significantly on the design
of a decommissioning project.

20
The economic potential in nuclear decommissioning | December 2022 21
 Market structure:
how to secure a
winning position
in the value chain
In the complex nuclear decommissioning
market, opportunity is increasing. A value
chain of stakeholders has grown up around
it, innovating and building efficiencies
and best practices into the end-to-end
processes. It comprises diverse players,
skill sets and competencies.

Players in the nuclear decommissioning value chain tend

to be highly specialist, typically engaging in a few niche
activities. In this nascent sector, there is an urgent need
for industry-wide networks to mobilize on projects and
to bring together available know-how. As knowledge
of decommissioning projects increases globally, delivery

4
models and the way in which projects are structured will
evolve.

The nuclear decommissioning value chain is mostly

made up of nuclear experts. In France, they include plant
operators such as EDF, fuel producers and managers such
as Orano, and specialists in the irradiated environment and
materials such as Andra. However, non-nuclear companies,
such as construction and demolition specialists VINCI
and Eiffage, or decontamination experts such as Veolia,
also occupy a place in the value chain. Though the latter
come from outside the nuclear domain, and may be limited
to low-value, conventional or non-nuclear tasks right now,
there are burgeoning opportunities.

New-era nuclear programs are ready to be launched, and

the resources of nuclear experts will be largely concentrated
on new-build strategies and installations. Meanwhile,
fringe players that have been building competencies in the
decommissioning market are now well positioned to develop
winning disruptive technologies and capture larger market
share. There is both a need and an opening for these non-
nuclear players to move to the higher value-add rungs of the
decommissioning ladder.

22
Decommissioning value chain
Key activities Decommissioning Main providers Examples of
products and job players
types
R&D • Conception of • Development • Research • EDF
new techniques of disruptive organizations • CEA
or products for technologies for • Start-ups
decommissioning jobs each job type (e.g., • Createc
analysis tools, • R&D service • Deep Isolation
decontamination companies
• Conglomerates

Equipment • Manufacturing tools, • Manufacture of • Equipment • Graham

manufacturing containers, parts, cutting and remote manufacturers • Robatel
etc. for specific job equipment for • Solution and Industries
types decommissioning container • Groupe
Gonzalez

Engineering and • Studies on • Comprehensive • Engineering • Orano

consulting nuclear facilities engineering and specialists • AINS Group
(overall condition, radiological
contamination) and surveys • EDF
land • REACT
• Identification of Engineering
industrial hurdles • Nukem
Technologies
• ATS Industrial
Automation
Decommissioning • Manual works, • Dismantling in low • Construction • Veolia
works decontamination radiation companies • Eiffage
and dismantling of • Rehabilitation of • Waste treatment
facilities • Orano
sites companies
• Bilfinger
• VINCI
• Fortum
• Cyclife (EDF)
Project • Management of the • Pre-feasibility study • Project managers • EDF
management decommissioning • Project • Nuclear plant • RSCS
process and agenda, documentation operators
and regulatory filings • APTIM
• High-intensity
project management
through the whole
process

Radioactive • Waste collection and • Packaging and • Downstream • Orano

waste evacuation from sites transportation nuclear companies • Duke Energy
• Storage of waste • Storage and • National agencies • Andra
management (interim or final) disposal
• Cyclife (EDF)
• Design of material
disposal or recycling
processes

The value chain for nuclear decommissioning projects is fragmented into six
main activities, as described in the blue left-hand column of the graphic. They
range from R&D through to decommissioning works and waste management.
The project typically lasts around 17 to 20 years, and decommissioning is
overseen throughout by a project management office.

The economic potential in nuclear decommissioning | December 2022 23

 4 | Market structure: how to secure a winning position in the value chain

Disruptive technologies, and their role in increasing the speed of decontamination and
dismantling reactors, minimizing radioactive waste and optimizing safety and costs,
may be central to creating a winning value proposition for decommissioning projects.
Technology is expected to make a significant impact in key areas of the process:

Preparation Works Radioactive waste management

During the preparation phase, During the decommissioning Robotization and digitization are
comprehensive engineering, works phase, the biggest risks for set to have a major impact on waste
radiological surveys and project decommissioners are activities processing, storage and disposal
documentation may be improved with that include decontamination activities.
robotics and digitization for both data and dismantling of high-radiation
collection and analysis purposes. This equipment or buildings. New
may involve the use of drones for technologies that employ, for
radiological surveys, laser scanning instance, cryoblasting or remotely
and digital engineering, which can be controlled robotics could be game
leveraged on nuclear sites. Players changers.
that come up with these new solutions
might already participate in the
nuclear field or have expertise in
other hostile environments, such as
subsea terrains.

Disruptive technologies to make

big impact on decommissioning
Phase
Preparation Works
Decommis- Concept, pre- Building Comprehensive Decontamination Dismantling in
sioning
products and
feasibility study, supporting engineering high radiation
job types supply chain infrastructure and radiological
survey, project
documentation

Technology
impact Low Low High High High

Attractive Data collection Analysis tools Decontamination

technologies
Robotics and digitization of the Building Chemical, film,
comprehensive engineering and information plasma, laser,
radiological survey: drones, laser modeling, digital dry abrasive,
scanning (LiDAR), gamma-vision, engineering and cryoblasting
spherical photography, point cloud radiation model
plotting (DIMRM)

24
Given the complexity of the Though decommissioning represents a billion-dollar-sized global market,
technologies to be developed and regulatory frameworks and funding mechanisms are very country specific.
leveraged at nuclear sites, it’s likely To be successful in the decommissioning value chain, a local outlook is
that new solutions will come from critical. Understanding country nuances, in terms of operator, government
players already participating in the or joint responsibilities, and acknowledging that what works in one
nuclear field or with expertise in jurisdiction might not be relevant over the border, will determine success
other hostile environments, such in this nascent market.
as subsea terrains.
Examples:
• The UK, which has several gas-cooled reactors, may be especially
receptive to value chain partners that are able to process graphite.
• The French market may be more structured around an incumbent
player, such as EDF.
• Smaller EU markets, such as Spain or Belgium, may put emphasis
on price.
• Foreign companies might struggle to enter the US and Japanese
markets without a national partner.

Radioactive waste management

Dismantling in low Rehabilitation Processing Packaging and Storage
radiation locations of sites (including transportation and disposal
collection and
characterization)

Low Low High Low High

Cutting Remote D&D Radioactive Storage and disposal

Thermal: oxy-fuel, Remotely waste (RAW) Robotization of
plasma, laser controlled minimization logistics, digitalization
equipment, Solidification (ion- of RAW information
robotics selective sorbents, (digital tags, unified
evaporation) and databases, etc.)
pressing

The economic potential in nuclear decommissioning | December 2022 25

4 | Market structure: how to secure a winning position in the value chain

M&A and JV activity on the up

in nuclear decommissioning
Disruptive technologies emerge in engineering and
radioactive waste management

Sweden
EDF Cyclife (EDF)
Orano Radioactive waste
management
France

2015 2016 2017

Mangiarotti Italy
Westinghouse
Equipment
US
manufacturing
(e.g., spent
nuclear fuel
casks)

Companies along the value chain seek disruptive technologies and

geographical expansion. In pursuit of those dual ambitions, growth
via merger and acquisition (M&A) and joint venture (JV) is starting to
characterize the decommissioning marketplace. The trend continues,
with M&A likely to bring about rapid consolidation in the most profitable
and technologically advanced business models.

Ultimately, the decommissioning market will be Even so, consolidation in the global market may
highly concentrated. The top five players hold be limited due to national preferences and local
around 45% market share, which could rise to agendas. It means the market in each country
65% by 2030. By then, the top 10 players could may have room for just a few major players.
occupy around 90% of the market.

26
 Germany US
Daher
Engineering and
nuclear logistics2
France
Graphitech (JV)1 Société de
France
(EDF and Veolia) Transports
Waste Spéciaux
management Industriels (STSI)
RAW logistics3

2018 2019 2020 2021

Canadian Canada Tecnatom Spain

Engineering (50% share)

Associates Engineering
Engineering

Source: EY Embryonic and Mergermarket databases, data from official company

websites, EY-Parthenon analysis.

The decommissioning market offers huge potential. 1 — Graphite nuclear reactors.

2 — Announced in October 2021.
But players wanting to become leaders in this future 3 — Ensure safe and timely transportation of contaminated tools, fuels,
and RAW.
market need to act now. They need to start building
capabilities and capacity today.

Some have already started, as illustrated by the recent

trend in M&A activity. But further technological progress,
as well as the need to harness synergies and expand
geographically, is necessary if value chain participants
are to seize the opportunity and lead the field.

The economic potential in nuclear decommissioning | December 2022 27

 Conclusion

28
 Nuclear decommissioning is a safely and securely. Capitalizing on
nascent market, but it is large. Aging early achievements to populate the
reactors will reach the end of their experience curve will bring learnings
useful lives, and decommissioning and transparency to all operations.
activity will continue. Even an
unlikely halt to nuclear power plant Innovative players with technological
construction will not damage the niches may emerge. However, due to
attractiveness of this market, because the extreme conditions relating to the
decommissioning demands input use of equipment, as well as security
from specialists, and corresponding and risk hedging obligations, they
margins, over a long time frame. will need backing from either power
plant operators or investment funds
Each of these conditions means that with robust financial balance sheets,
nuclear decommissioning is highly just like companies operating in the
likely to attract investment. It is defense, space, deep-sea exploration
still too early to quantify sources and production sectors. To get
of profit and expected returns, but these niche technology businesses
some things are certain: Technology on board, and secure competitive
and expertise in managing advantage, the major players should
complex programs will be critical expect to share their profit pools
in coordinating a large number of to create an attractive commercial
contractors with very different proposition.
profiles, and in delivering hundreds
of thousands of related projects. In this emerging market, businesses,
investors and individuals are securing
Specialists in engineering their positions today. Innovation
procurement construction will will be critical to the enablement of
transform into experts in engineering future carbon-free electricity sources,
procurement decommissioning. both renewable and nuclear. The
Application of competencies in war for talent is on in a market that
technology, digital and data science will hinge on creating high value-add
will be essential for carrying out jobs and attracting the most brilliant
highly complex and sensitive projects engineers.

The economic potential in nuclear decommissioning | December 2022 29

 Contributors

30
Thanks to contributors

Issam Jean-Christophe Jackson Rémi

Taleb de Noinville Perry Worms
France France US France

EY Nuclear Center of Excellence

Jamie Andrews Paul Rees Jones
UK UK

Birute Bobrovaite-Jurkone Antony W. Jones

United Arab Emirates UK

Adrian Bocher Chris Lewis

France UK

Bruno Bousquié Nicola L. Marsh

France UK

Guillaume Bouvard Anton E. Poryadin

France US

Christian Grauers Issam Taleb

Sweden France

Jérémie Haddad Pierrick Vaudour

France France

Andrew Horstead Andre Winarto

UK Australia
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