Decommissioning

Worth around £2.8 billion a year, the decommissioning market offers long-term potential to the right companies with the right skills.

By Jack Craze

Despite the pressures of the global economic crisis, more and more money is being spent each year on nuclear decommissioning in the UK.

In an expanding marketplace, funds are available for suppliers, and those companies with the right credentials are set to take advantage of the growing opportunities in this area.

Of the total amount spent annually on decommissioning (£2.8 billion), £80 million covers the running costs of the National Decommissioning Authority (NDA) and its internal Radioactive Waste Management Directorate.

The rest is spent in the decommissioning supply chain.

With 17 nuclear sites in the UK currently being decommissioned, and with more sites due to enter decommissioning in the years ahead, the market potential is huge.

As Bill Hamilton, Head of Stakeholder Relations at the NDA, remarks: “It’s an enormous market; a market with real long-term prospects.”

Over its projected 125-year span, decommissioning costs are estimated to extend to around £73 billion, and the next 20 years in particular will see a surge in decommissioning activity and outlay.

As Mr Hamilton commented: “There is, if you like, a UK pipeline of opportunities stretching out to 2030 as nuclear sites come offline and go into decommissioning.”

Of course, the recession is taking its toll, and the NDA anticipates a tough few years ahead. Certain projects may need to be deleted, deferred or recalled, but as Mr Hamilton points out, there is decommissioning work that simply has to be done: “work that has to be carried out, not only in terms of meeting operational targets, but in terms of ensuring public confidence in the UK nuclear programme.”

The birth of a new industry

The big players in the decommissioning supply chain are the ‘Tier 1’ contractors, or site license companies, who oversee the decommissioning process and subcontract to smaller suppliers.

Terry Gilbert, Business Development Director at Tier 1 contractor Amec Nuclear, expresses optimism that is shared by many within the decommissioning sector:

“Some people thought that the formation of the NDA in 2005 signalled the death-knell for nuclear. But for me it wasn’t about the demise of one industry, so much as the birth of a new one.”

The decommissioning marketplace now offers a vast range of opportunities for companies such as Amec.

Part of the Tier 1 consortium running the Sellafield decommissioning programme, Amec also operates as a Tier 2 supplier, delivering a number of services from waste characterisation, minimisation and processing, through to the transportation and safe disposal of hazardous material.

At the forefront of decommissioning, UK companies are also able to export their expertise and provide overseas consultancy services.

Amec, for example, has operations in Canada, Slovakia, the Czech Republic and Russia, and is responsible for programme management as part of the world’s largest decommissioning contract in Ignalina, Lithuania. 

Making the grade

Tier 1 companies are appointed through a rigorous competitive process which can last well over a year.

The NDA makes all Tier 1 appointments, and looks for companies with real hands-on experience of managing nuclear projects.

Only those that share the NDA’s values of safety, efficiency and value for money, and that can demonstrate the necessary technical expertise, make the grade for these primary contractor roles.   

First and foremost, companies need to satisfy regulators that they have the necessary ‘nuclear safety case’, including specialised radioactive waste handling skills.

A broad portfolio of engineering capabilities is also crucial, with structured engineering, civil engineering and process engineering seen as core requirements. Robotics engineering is also important for services such as ‘integrated shielding design’.

At Amec, an onsite laboratory service is part of the company’s USP. From their facilities in Birchwood, Warrington, the company is able to carry out ‘mock-ups’ and ‘test rigs’ in their labs to simulate reactor activity: a rare offering that has put Amec ahead of the game in the decommissioning market.

Barriers and benefits

A highly regulated market, there are naturally many barriers to entry up and down the supply chain.

However, the Cogent Sector Skills Council, the National Skills Academy for Nuclear and the NDA are working to ensure that professionals with non-nuclear backgrounds can penetrate the new build and decommissioning sectors.

Specifically, these industry bodies want to make sure that all new engineering talent coming in from other power industries, or graduates coming fresh from university, are immersed in nuclear awareness and safety skills training.

This intensive training provision, combined with ongoing professional development, is the other obvious benefit of the decommissioning sector.

Indeed, the influx of new recruits would suggest that the demanding standards and technical challenges are serving as an enticement, rather than a deterrent, to individuals and organisations alike.

As Terry Gilbert remarks: “Decommissioning is a very exciting sector to be involved in. Working in decommissioning enables you to acquire niche skills which you can put into practice. The number of young graduates coming into the sector speaks volumes.”