1

Babcock & Wilcox Cost & Yield ReviewNAS

Research Test Reactors

May 21 , 2015

2

B&W Cost Analysis Cost Analysis in 2012 for Projected Costs in 2019

Purpose:

Utilize the current LEU information and process knowledge to develop a steady-state cost for HEU & LEU fuel

Goal:

To develop a process which is cost neutral from HEU to LEU Maintain HEU Manufacturing capability until LEU manufacturing is

demonstrated for all 5 reactors. 2010 DOE funded independent study estimated an increase of 37%

GSA020.001.020.001

Cost based on a Set of AssumptionsLEU Steady-State utilizing what we defined as a “Base-line Process”Compared LEU to HEU in 2019 $$

3

Fabrication Processes

Fuel Powder Process

Compact Process

Plate Process

Element Process

Coupon/ Ingot Process

Foil Process

Plate Process

Element Process

Processing Unchanged

HEU Process

LEU Process

B&W fabricates Powder for ATR, MURR, and MIT

Y-12 fabricates Powder for HFIR

and NIST

Y-12 fabricates Coupons/Ingot

The conversion from HEU to a LEU

transitions from a cermet to a metal plate fabrication

process

4

Current HEU Processes

Fuel Powder Fabrication

Issue Material

Weight Charges

Arc Melt

Crush

Blend

Weight

Inspect

Processes eliminated

Processes eliminated

TBD

TBD

TBD

5

“U-Moly Base-line Process”

Foil Processing

Receipt Inspect Coupon

Can Coupon

Hot Roll Coupon Into Foil

Cold Roll Foil

Size Foil

U-Mo PlateU-Mo HIP

Can AssemblyU-Mo FoilU-Mo Coupon

Can Assembly0.015” Thick With ~ 0.001” Thick Zr Layer on Both Sides

304 SSAl 6061

Mild Steel

U-Mo Coupon:19.75% U-235~6” x 6” x 0.125”

6

Assumptions

What’s not Included

•Coupon Costs (GFM – Y-12)•Burnable absorbers cost•Manufacturing of burnable absorbers (ATR, HFIR)•Shipping Costs•Waste Costs•Costs associated with transition from HEU to LEU

Low Impact•Estimate is at full LEU production, no HEU fabrication•Steady State Production Rate ~8000 plates per year•Facility will include storage for 3 years worth of coupons/Ingots (backlog inventory)•HEU and LEU Equivalent Operations•New Rates for 2019

High Impact•U-Mo Coupons•LEU Process Yields•~ 1000 kgs of Zr coded scrap generated per year•Uranium recovery could be performed at NOG-L in existing facility

7

Yields

HEU Process Yields

• Compacts ~ 99%• Plates ~ 93%

Projected LEU Process Yields

• Foils ~ 88%• Plates ~ 90%

Yields have not been demonstrated

8

Created Cost Estimating Tool

Process flow Diagram WBS Time Standards Equipment List Rates (variable based on many factors) Cost per Assembly Assemblies per year Annual Operating Cost

9

Total Manufacturing Hours/Plate

ATR HFIR MIT MURR NIST

HEU2012 Estimate

10

2012 U-Moly Cost Summary

Contract % increase in Cost of HEU Assembly

ATR 17%

HFIR 115% *

MIT 13%

MURR 49%

NIST 60%

* Due to the complex geometry of the HFIR fuel and the lack of manufacturing development, it is estimated that HFIR foil manufacturing will take 2X longer

11

Program R&D Projects

National Labs (LANL & PNNL)

• Casting Optimization• Optimize HIP Process operations (HIP Can)• Develop an alternate process for Zr Application• Foil Rolling and Anneal Studies• Demonstration of Complex Shape Fabrication (HFIR)• Coupon/Ingot Size Optimization

Y-12

• Casting Optimization• Demonstrate LEU Manufacturing Cycle

B&W

• Demonstrate complex fuel process• Develop a Foil Process with less Scrap• Demonstrate LEU Manufacturing Cycle• HIP Processing Parameters

44%

31%

25%

Total Mfg HoursPlate Manufacture

Assm/Structure Mfg

Foil Manfacture

9%

4%8%

13%

66%

Plate Mfg Hours

HIP Can FabricationHIP DecanningUTThickness MachiningOther

12

Program LEU Manufacturing Cycle

LEU

Metal Alloying

Coupon

Foil

Plate

Element

RecoveryRecovery

Reduce to LEU Metal

HEU Metal

DU or NU Metal

Mo

Yellow – Y-12Blue – B&WClear – Unknown

ZR

13

B&W Current Manufacturing Development Efforts

Foil Processing

Receipt Inspect Coupon

Can Coupon

Hot Roll Coupon Into Foil

Cold Roll Foil

Size Foil

Development Focus

14

Foil Standard Process Flow Development Efforts

Homogenize Coupon or

Ingot

Pack & Weld (Coupons or

Ingots)

Hot Roll with Zirconium

Decan and Clean Cold Roll Vacuum

Anneal Sizing

Hot Roll without

Zirconium

Decan and Clean Sizing Cold Roll Pack & Weld

Hot Roll with Zirconium

Decan and CleanCold RollSizing Vacuum

Anneal

Coupon Process

Ingot Process

Additional Process Steps

Alternate process being developed to minimize Zr Coded Scrap

15

B&W Cost Analysis 2014 Update

2014 Cost Analysis Update Reviewed 2012 analysis to update assumptions Determined change to 2012 estimate Update was Changed to Hours Based

• New Conversion dates beyond 2030• Rates too hard to predict• Compared reduction in hours from 2014 to 2012

Same assemblies / year No Yield Changes Compared Mfg & Total Hours

• Mfg hours = Shop & QC

16

Assumptions for 2014 Update

What’s not Included

•Coupon Costs (GFM – Y-12)•Burnable absorbers cost•Manufacturing of burnable absorbers (ATR, HFIR)•Shipping Costs•Waste Costs•Costs associated with transition from HEU to LEU

Low Impact•Estimate is at full LEU production, no HEU fabrication•Steady State Production Rate ~8000 plates per year•Facility will include storage for 3 years worth of coupons/ingots (backlog inventory)•HEU and LEU Equivalent Operations•New Rates for 2019

High Impact•U-Mo Coupons•LEU Process Yields•~ 1000 kgs of Zr coded scrap generated per year•Uranium recovery (could be performed at NOG-L in existing facility)

Coupon size change - increased foil fabrication

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2014 Assumption ChangesFoil Processing

Receipt Inspect Coupon

Can Coupon

Hot Roll Coupon Into Foil

Cold Roll Foil

Size Foil

• Optimized Pre-formed Hip Can (Not yet Demonstrated) Capacity change Eliminated Internal HIP Can Fabrication Eliminated Plate Thickness machining & UT for Support Thickness Machining

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Total Manufacturing Hours/Plate

ATR HFIR MIT MURR NIST

HEU2012 Estimate2014 Estimate

19

2014 U-Moly Cost Summary

Contract % Reduction from 2012 Estimate

ATR 15%

HFIR 16%

MIT 16%

MURR 14%

NIST 25%

Overall Reduction 17%

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Conclusions

Still in Development Dedicated Team working on U-Moly Program Concerted effort between all Organizations

Y-12, PNNL, LANL, INL & B&W

Our Focus is two-fold Manufacturing capability Cost Consciousness (Cost neutral between HEU and LEU)