FACT SHEET
Ukraine Central Spent Nuclear Fuel Storage Facility
February 23, 2006
There is a great deal of misinformed reporting in the media about the agreement between the U.S. firm Holtec and Energoatom on the construction of the Ukraine Central Spent Nuclear Fuel Storage Facility at Chernobyl. The agreement gives Ukraine a safe, cost-effective method to address its nuclear waste storage concerns. The project will pay for itself in two years while enhancing Ukraine’s overall energy security.
The deal was not secret: Energoatom announced an international tender in July 2003, under the Kuchma-Medvedchuk Administration, in anticipation of rising costs to handle spent nuclear fuel, for which Ukraine currently pays approximately $100 million annually.
The Ukraine Central Spent Nuclear Storage Facility will store fuel from nine Ukrainian nuclear reactors only. The facility will not handle any radioactive waste from other countries. Reports that President Bush cancelled the Yucca Mountain nuclear storage project in the state of Nevada in the U.S. are mistaken. The President’s Advanced Energy Initiative, announced on Feb. 20, 2006, states that “Yucca Mountain is still required under any fuel cycle scenario.” The President did designate new national parkland in the Cedar Mountain area of Utah on January 6, which could have some effect on the nearby much smaller private spent fuel storage facility. On February 21, 2006, however, the United States Nuclear Regulatory Commission issued a license to construct and operate this facility in Utah. Some media have confused the two.
The signing of the Holtec-Energoatom contract is the beginning, not the end, of the process. Before construction can begin the following must take place:
Holtec International, founded in 1986, is a company that has supplied equipment to over 150 power plants worldwide. The company has an excellent reputation and an impeccable financial and performance record. Its products are licensed by the U.S. Nuclear Regulatory Commission, and by competent authorities in Taiwan, Korea, Mexico, Brazil, the U.K. and Spain. Holtec has a U.S. Nuclear Regulatory Commission certified Quality Assurance program.
None of Holtec’s licenses has ever been denied or revoked. Some Ukrainian news reports have referenced U.S. news accounts of statements by a former nuclear auditor named Oscar Shirani, who in 2000 raised concerns about Holtec products. The Nuclear Regulatory Commission reviewed Shirani’s claims and determined them to be unfounded. The Nuclear Regulatory Commission's Office of the Inspector General then reviewed the Nuclear Regulatory Commission’s inspection history of Holtec and in a finding released on August 6, 2004 also did not substantiate Shirani’s claims.
Over 80% of the spent nuclear fuel in the U.S. is stored in Holtec-supplied systems. The same is true for 60 percent of Korea’s, 60 percent of Taiwan’s, 100% of Mexico’s, 100% of the United Kingdom’s, and 100% of Brazil’s spent fuel.
Some have argued that Ukraine does not need a nuclear waste facility because Russia takes back spent nuclear fuel it provides. Even if Russia takes back all the spent nuclear fuel for the current non-market rate of $100 million a year which could soon reach $160 million annually, Ukraine will still need storage for related high-level nuclear waste, which under current arrangements would be returned to Ukraine from Russia after reprocessing is completed.
One important lesson from the natural gas crisis in January 2006 is the need for Ukraine to strengthen its own energy security. The Holtec-Energoatom agreement is a major step in that direction.