Structure, conduct, and sustainability of the international low-enriched fuel fabrication industry

摘要

This paper examines the cost structures of fabricating Low-Enriched Uranium fuel (LEU, enriched to 5% enrichment) light water reactor fuels. The LEU industry is decades old, and (except for high entry cost, i.e., the cost of designing and licensing a fuel fabrication facility and its fuel), labor and additional fabrication lines can be added by industry incumbents at Nth-of-a-Kind cost to the maximum capacity allowed by the license. On the other hand, new entrants face higher First-of-a-Kind costs and high new-facility licensing costs, increasing the scale required for entry thus discouraging small scale entry by countries with only a few nuclear power plants. Therefore, the industry appears to be competitive with sustainable investment in fuel-cycle states, and structural barriers-to-entry increase its proliferation resistance.