PNNL

Abstract

To enable the expansion of nuclear energy for peaceful purposes while discouraging the spread of enrichment and reprocessing technology to additional countries, existing front- and back-end supplier States are considering a variety of approaches to encourage the establishment of Reliable Fuel Service & Supply (RFS&S) arrangements for providing fresh fuel and taking back of spent fuel. Important aspects of such a trade regime are the economic basis, the product offerings, and alternative business models for RFS&S arrangements. This paper provides an assessment of the potential economic and nonproliferation benefits of one type of RFS&S trade regime currently under active consideration: full-service nuclear fuel leasing arrangements. Several different fuel leasing implementation models are evaluated to develop an understanding of the range of potential economic benefit to the lessee and, conversely, the economic liability to the lessor. Results suggest that while economic benefits are potentially substantial, these benefits also vary substantially depending on how a fuel leasing arrangement is implemented.