Plant Construction
Overview
The construction of a nuclear power plant involves interaction and collaboration between many different disciplines. These project are similar to other major construction projects in other sectors, with the additional consideration of stringent nuclear regulations and specialized materials needed for construction. A typical project will involve an Engineering, Procurement, and Construction (EPC) Company managing the project with support from manufacturing companies and organized labor.
EPC
When constructing a nuclear project, the two primary approaches are to either use a single-package EPC contract or a multi-package EPC contract. Under a single-package approach, the EPC contractor will be solely responsible for the entire nuclear project. This has the advantage of being a single point of contact for all issues relating to the project. Utilizing a multi-package EPC contract, the EPC contractor would work with a series of sub-contractors to complete the nuclear project. This approach allows sub-contractors with highly specialized skills to manage portions of the nuclear project. In the U.S., new reactor construction has been limited over the past 30 years, resulting in a loss of experience with nuclear specific projects. However, with around 60 reactors under construction around the world, much of the domestic experience hurdles can be alleviated by lessons learned from these international projects.
Manufacturing
Nuclear energy manufacturing relies on a robust supply chain of highly specialized equipment. Traditionally, nuclear project designs utilized one-of-a-kind components that required new supply chain development before a project could be complete. Modern nuclear reactor designs are increasingly aiming to use more common, off-the-shelf components and leverage modular construction techniques that have the potential to reduce supply chain complexity and lower construction cost. Nuclear manufacturers are required to adhere to strict regulatory oversight in their material sourcing and manufacturing techniques. This regulatory reality creates hurdles for new entrants, but also creates opportunities for manufacturers who can successfully navigate the Nuclear Regulatory Commission.
Labor
New nuclear construction projects can require thousands of highly skilled workers, with many of these workers belonging to a labor union. The nuclear industry’s close relationship with organized labor has been a critical component to maintaining the skilled labor needed to construct and operate these plants. As we look forward to the next generation of nuclear reactors, labor will be a crucial factor in determining the success of the industry.