Dismantling Project Costing

Algis Lencus

R2D2P Conference - Australia

Contents

• Detailed planning and costing methods

• Moata costing

• Cost estimates for HIFAR D&D project

Building a Cost Estimate

• Two choices:

– Detailed bottom-up estimate

– Rough top-down estimate

• Third choice:

– Leave it to a specialist

Top-down Estimate

• Used for rough estimates prior to detailed

planning and used to assess viability of a

project

Top-down Estimate

• Estimate based on costs from similar

decommissioning projects

• Scale costs to suit your reactor

• Similar to obtaining a cost for building by

square metre rates

Top-down Estimate

• Scaling can be based on one or several factors:

– Likely quantity of waste (and likely need for remote

methods) (refer to reactor power, MW days, decay

period)

• Allow for

– exchange rates

– local labour rates

– local requirements

Top-down Estimate

• Make use of sources such

as the international

research reactor database

to obtain decommissioning

costs of other reactors

Bottom-up Estimate

• Developed to create a more comprehensive

and accurate estimate

• Requires detailed planning up front

Detailed Planning

• Develop a WBS (Work Breakdown Structure)

or schedule with resource planning and detailed

expenses

• Developed from a proposed methodology

• Methodology developed from knowledge of

reactor

• Knowledge of reactor developed from local

knowledge, outside expertise and

characterisation

Use a Standard WBS

Example breakdown

• Planning

• Regulatory submissions and approvals

• Site preparation including purchase of equipment (eg.

Radiation monitors)

• Dismantling

• Decontamination

• Waste management

• Delicensing and project closure

Expand on Detail: Resource and Expenses

• Planning

• Labour

• Safety plan:

– 6 people each spending approx 50 hours over 6 months

(only 25min per day per person!) = 300 man hours

– 300 man hours @ $100/hr = $30,000

• 11 plans total of 3300 man hours: $330,000

• Expenses

• Investigative core drilling = $25,000

• Specialist consultant = $30,000

• Plus other expenses = $50,000

• Planning Cost estimate $435,000

Implementation Costing

• Determine your decommissioning steps (forms part of

your WBS)

• Each step is estimated by using crews and reference

durations for similar activities on other

decommissioning projects (however, this detailed

information is difficult to obtain)

• Crew hours multiplied by local labour rates

• Plant and materials estimates based on local costs

and experience

References for Cost Estimates

• A Proposed Standardised List of Items for Costing

Purposes in the Decommissioning of Nuclear

Installations

• Decommissioning of the Nuclear Facilities

at Risø National Laboratory

Descriptions and Cost Assessment

Standardised List

01 PRE-DECOMMISSIONING ACTIONS

02 FACILITY SHUTDOWN ACTIVITIES

03 PROCUREMENT OF GENERAL EQUIPMENT AND MATERIAL

04 DISMANTLING ACTIVITIES

05 WASTE PROCESSING, STORAGE AND DISPOSAL

06 SITE SECURITY, SURVEILLANCE AND MAINTENANCE

07 SITE RESTORATION, CLEANUP AND LANDSCAPING

08 PROJECT MANAGEMENT, ENGINEERING AND SITE

SUPPORT

09 RESEARCH AND DEVELOPMENT

10 FUEL AND NUCLEAR MATERIAL

11 OTHER COSTS

Standardised List - detail

04 DISMANTLING ACTIVITIES

04.1200 Dismantling operations on reactor vessel and internals

04.1300 Removal of primary and auxiliary systems

04.1301 Removal of primary and auxiliary systems in reactor facilities

04.1302 Dismantling and removal of contaminated equipment, piping, liners

and internal systems in non-reactor nuclear facilities

04.1400 Removal of biological/thermal shield

04.1500 Removal of other material/equipment from containment structure

and all other facilities, or removal of entire contaminated facilities

04.1600 Removal and disposal of asbestos

Reality Checks

• A ‘reality check’ can be done by comparing calculated

cost with costs of similar projects in order to ensure

that the estimate is credible

Moata Costing

• Budget based on a bottom-up cost estimate

• Estimate compared to costs of similar reactor projects

with respect to exchange rates and waste quantities

Moata – Bottom-up Estimate Task Immediate Dismantling

Project Management $300k

Site Preparations $400k

Initial Surveys and Sampling $100k

Equipment $200k

Dismantling

Concrete doors and plugs

Concrete (reinforced)

Metal components

Graphite blocks

Lead

Fuel storage pit

Process pit

$50k

$700k

$400k

$70k

$10k

$250k

$20k

Decontamination $100k

Active Waste Relocation (Transfer and storage at ANSTO site only) $600k

Clean Waste Removal

(off site)

$50k

Exposure Control

(during dismantling)

$150k

Site Clean-up $50k

Final Survey and Report $300k

On-going Maintenance $0

Temporary relocation of offices and laboratories in B22 during dismantling. $100k

Contingency (approx. 20%) $750k

TOTAL $4.6 Million

Moata Comparison with Others Reactor Cost

(Approx.)

Active

Waste

Dose (mSv)

Virginia P, USA US$0.6M 481GBq,

62 m3

79

UCLA R1, USA US$1.7M 651 GBq,

143 m3

38.7

THAR, Taiwan US$0.5M 0.14

The Universities Research Reactor,

Risley, UK

£4M comprising; £2M (dismantling)

£1M (waste)

£1M (fuel removal)

4662 GBq,

192 m3

64

JASON Reactor*,

Greenwich, UK

£7M comprising; £2M (management)

£2M (dismantling)

£1M (waste)

£2M (fuel removal)

60 kg ILW

116T LLW (approx. 50 m3)

1.25

University of Washington*, USA US$1.7M (’94 value) plus US$0.5M for decontaminating spills

Estimated

49 m3

Estimated

50 to 60

Iowa State University*, USA US$1M comprising; US$0.2M – Planning

US$0.6M – Dismantling

US$0.2M – Final survey

Estimated

34 m3 LLW

Estimated

24

Moata Estimated (See ER111484)

(a)ANSTO: $4.6M

(b)DE&S: US$1M

(c)NES: US$2.2M

(d)AEA Tech.: £5M

Estimated

1.2T ILW

(0.146 m3)

129T LLW (61 m3)

Moata Schedule

Moata Costing

• Cashflow forecast was developed from a resourced

schedule

• This lead to the formation of “planned value” and

ability to apply “earned value analysis”

Moata Resource Costs

Moata Cashflow

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

Nov-07 Feb-08 Jun-08 Sep-08 Dec-08 Mar-09 Jul-09 Oct-09 Jan-10

BCWS EV ACWP Comm

BCWS = Planned Expenditure from base date 14/1/08

EV = Earned Value

COMM = Actual + Commitment costs recorded by SAP

ACWP = Actual costs recorded by SAP

Moata Actual Cashflow

Moata Actual Cashflow

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

17-Jun-07 29-Oct-08 13-Mar-10 26-Jul-11

Date

Accu

mu

late

d S

pen

d (

AU

D)

Site Preparation

Engage Primary

Contractor / ANSTO

preliminary

dismantling

Block dismantling

by Primary

Contractor

Cost Estimate for HIFAR?

• Estimate for DR-3 - ~$51M (2005AUD) (includes waste

containers, but minimal processing and storage cost)

• 2005 estimate for HIFAR - ~$33M (2005AUD) (not

including waste processing & storage)

• 2012 “Class D” estimate for dismantling only = ~$20M

(2012AUD)

Thank you

• Any Questions?