ITER: Another Way for the Nuclear Industry
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1 ITER: Another Way for the Nuclear Industry Fusion for Energy, the European Domestic Agency for the ITER Project June 9th 2015 Anthony Courtial Market Intelligence & Supply Chain Analysis
2 Outline 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 2
3 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 3
4 Why fusion energy? Earth contains enough fusion fuel to last until the end of life on the planet = = 280 liters of Earth crust (50 g lithium) liters of water (12 g deuterium) 300 t of oil total energy consumed by average EU citizen during whole life 4
5 What is ITER for? Demonstrate fusion as practicable energy source Fusion energy generation on large scale 10 times more energy generated than consumed (500 MW) Study of burning plasma and its long operation Testing key technologies for future fusion reactors 5
6 What is ITER for? A milestone in the path to fusion (from Latin iter ) 6
7 The ITER project The largest international research project ITER Seven parties More than 50% of global population More than 80% of global GDP 7
8 The ITER project Each party contributes its best capabilities Domestic Agencies and Central Team develop and deliver different ITER components Europe is the main contributor, about half of the components Domestic agencies work with research centers and industry to design and manufacture components 8
9 Cadarache: the ITER site 9
10 What is the ITER Central Team? The integration and operation team for ITER, coordinating all 7 domestic agencies International organization, established in parties Headquarter: Staff: 500+ Cadarache, France Budget to 2020: 2.6 billion EUR 10
11 What is Fusion for Energy? The European domestic agency for ITER and the development of fusion energy European joint undertaking, established in member states (EU28 + CH) Headquarter: Other sites: Staff: 400+ Barcelona, Spain Cadarache, France Garching, Germany Rokkasho, Japan Budget to 2020: 7.4 billion EUR (inflation adjusted) 11
12 F4E s mandate Developing fusion energy through three projects Ensuring the European contribution to ITER Coordinating European collaboration with Japan in bilateral fusion research projects, Broader Approach Preparing the technological and industrial capacity for the following demonstration of a fusion power reactor, DEMO 12
13 Towards commercial power-plants ITER is also about the Supply Chain 13
14 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 14
15 ITER matters to economy Benefits for economy, knowledge and growth Promote advanced knowledge and spin-offs Connect enterprises and research organizations to deliver innovation Increase potential for large industry and SMEs Promote European competitiveness Generate economic growth and jobs 15
16 Costs Benefits Commercial benefits Direct Commercial (Jobs, growth) Indirect Commercial Innovation and Human ITER R&D ITER Operation ITER Construction
17 F4E industrial policy First Objective (Priority) Deliver the European contributions to ITER and the Broader Approach within the agreed budget and schedule making best use of the industrial and research potential and capabilities of all F4E members, in line with competition rules Second Objective Broaden the European industrial base for fusion technology for the long-term development of fusion as a future energy source and to ensure a strong and competitive European industrial participation in the future fusion market Third Objective Foster European innovation and competitiveness in key emerging technologies to further the development of the Innovation Union and its impact at the international level. 17
18 Industrial involvement in Europe Switzerland Finland United States United Kingdom Germany Spain Italy Canada Latvia Romania Greece Slovenia Denmark Poland Belgium Portugal Sweden Netherlands Japan Hungary Czech Republic Austria Paid 1/7/2013 Paid 1/7/2014 Value 1/7/ France Euro awarded or paid 18
19 Ratio (% F4E participation) / (% EU GDP Manuf+Constr) Industrial involvement in Europe 3,5 3 2,5 2 1,5 1 0,5 0 19
20 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 20
21 F4E s rules and regulations Contracts according to transparency, proportionality, equal treatment and non-discrimination No mandatory geographical distribution Best value for money Design to cost Cost and quality awareness Risk Management rather than Risk Avoidance Tenders competed to all European economic operators Tender worldwide if necessary Negotiate directly if justified Share information with other Domestic Agencies and IO 21
22 Procurement procedures F4E contracts with economic operators via: Grant agreements, awarded through calls for proposal Procurement contracts, awarded through calls for tender Grants support R&D at 40-70% funding Procurement contracts to secure goods, works or services through: Open procedure: all interested economic operators can submit a full tender Restricted procedure 2 phases 1: Selection, following a call for expression of interest 2: Invitation to tender: only for selected companies Competitive dialogue: for particularly complex contracts, collaboration with industry to clarify tech specs Negotiated procedure: only for contracts below 250 k or exceptional cases 22
23 Procurement procedures Organization Procedure managed by Technical Project Officer and Procurement Project Officer TPO and PPO have support of specialists Legal and Finance Officers Market Intelligence Officers Quality Officers External networks ensure good market contact Industrial Liaison Officers (ILO) European Fusion Laboratories Officers (EFLO) Only F4E point of contact for questions during competition F4E point of contact for pre-competitive questions Local point of contact before, during and after competition 23
24 Procurement lifecycle F4E Business Intelligence F4E Industrial Policy F4E signs PA with IO Market analysis Procurement strategy Call for Tender Contract with supplier Delivery User Registration Pre-qualification Industry Mapping Supplier Evaluation F4E Industry Portal PA = Procurement Arrangement IO = ITER Organization 24
25 Official Journal of the EU TED (F4E shown for Spain): 25
26 F4E Website & F4E Industry Portal F4E is accessible via 2 distinct channels: F4E Website: Latest News about ITER Project Corporate Information about F4E Links to F4E Tools & News See F4E Website: F4E Industry Portal: Interface between F4E & Industry Home of Announcements, Calls & Market Surveys Host for ILOs National Initiatives Supplier database & Industry Mappings See F4E Industry Portal: 26
27 F4E Suppliers Referencing Scope: Referencing Process applies to all Legal Entities By default status is Not Started Systematic review operated by BI Group Objectives: Review of Legal Entities documents with focus on: administrative documents, financial capabilities, previous experience, quality management system Provide personalized support to LEs throughout the process Ensure closed follow-up with all LEs during first steps and data update Advantages of the Referencing: Increased visibility within the Fusion Industry Get recognized among pairs within the F4E Industry Portal Label trustworthy LEs through systematic review Give advantage to pre-qualified LEs for upcoming business opportunities Encourage LEs pro-active data management 27
28 F4E request for partnership Scope: Networking feature available to all LEs ILOs have a consultation role BI Group monitors all publications made by LEs Objectives: Enhance industry cooperation among operators Offer a networking platform for first exchange Find technical solutions or help Encourage LEs pro-active data management Promote pre-qualified operators How it works: LEs can publish announcement to ALL LEs can contact specific operators (dedicated ) ALL profiles can use the F4E Suppliers Database 2 Easy Steps: 1. Any LE can publish a New Announcement 2. An Additional can be sent out to specific LEs for specific business opportunities 28
29 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 29
30 The EU timeline for ITER Toroidal Field Coils PA Signed (June 2008) Procurement Contract Signed (July 2010) First EU TFC (October 2016) Contracts F4E industry: Last EU TFC (May 2018) Poloidal Field Coils PA Signed (June 2009) 3200 M 14 member states + 2 nonmembers (January PF Coil #5 2017) First Contract Signature (May 2013) PF Coil #3 (April 2019) Vacuum Vessel Buildings Construction PA Signed (Nov 2009) Procurement Contract Signed (October 2010) PA Signed (July 2010) Procurement Contract Signed (December 2012) First Sector (August 2017) Grants F4E research: RFE 1B-Partial Access Tokamak Pit (October 2016) RFE 1A-Assembly Hall (May 2016) RFE 1C-Tok. Building RFE (August 2017) Last Sector (December 2018) 95 M 21 member states + 1 nonmember Completion Tok. Building (August 2019) 30
31 The EU timeline for ITER Remote Handling Diagnostic Systems Plasma Heating In-Vessel Components Functional specs, high R&D content Innovative newentrants in nuclear First Manuf. Contract Signed First Contract Signed Large and SME, research Average contract value 5 M First Manuf. Contract Signed First Manuf. Contract Signed 31
32 ITER matters to EU business contracts 3.1 billion contracts 1.9 billion billion Comp's, services Additional components, op s, maintenance billion EUR Assembly, comp s 32
33 How to assemble it? 33
34 Contract Map for ITER Assembly & Installation ITER Organization 1. Construction Manager-as-Agent CMA 2, Machine Assembly Works 3, Mechanical & Piping Works 4, Electrical, I&C Works 5, Specialized Works LFT 6, Lifting & Handling Domestic Agency Works Contractors Super Conducting Joints Special Techniques SCF 7, Scaffolding APH 8, Access, Plant Hire CIV 9, Civils & Finishing ASY MCP EIC SPx Tokamak Balance of Plant Works Contracts Support Contracts 34
35 AWARD Overview of the Procurement Process Summary of the ITER Organization Procurement Process Call for Nomination (CFN) Prequalification Tender IO sends the summary of the Technical Specifications to Domestic Agencies (DA) Each DA sends a table with interested companies to the IO IO sends a Prequalification Package to each company on the list IO prequalifies companies on the list IO sends the Instructions to Tenderers to qualified companies IO assesses the offers and awards the contract 1.5 month 1.5 month 3 to 6 months Sourcing Ensure that offers are sought only from suppliers who have the required skills as well as financial capabilities, equipment and experience to perform works or services as described in the technical specifications. Clarifications, Tenderer s technical offers presentations. Publicity on the IO Web Site and DAs Sites Evaluation Committee: Experts, Tenderers' conference, answers to clarifications. 35
36 Indicative Procurement Schedule - ITER Assembly Indicative Procurement Schedule Industry Information Day Construction Manager-as-Agent Call for Nominations and Pre-qualification Call for Tender Mechanical & Piping Contract Award Call for Nominations and Pre-qualification Mobilization VV-06 (KO) Electrical, I&C, Cabling Call for Tender Call for Nominations and Pre-qualification Contract Award Mobilization Machine Assembly Call for Tender Call for Nominations and Pre-qualification Contract Award Mobilization Call for Tender Contract Award Mobilization 36
37 A Big Science opportunity 1. The ITER project & F4E 2. Industrial Involvement 3. Procurement Processes 4. Business Opportunities 5. Securing the Supply Chain 37
38 Securing the Nuclear Supply Chain Fission and fusion supply chains face similar challenges: Economic pressure and challenges Capabilities challenges Quality challenges Capability Economic Quality Need for the development of integrated and reliable supply chains: Define what good Knowledge Management means across the nuclear industry Break down silos and share Consult with integrated supply chain 38
39 Securing the Nuclear Supply Chain What do we need to do now to secure the nuclear supply chain for the future? Let s work together: Develop the overall supply base Create safety culture Facilitate knowledge transfer Build upon existing capabilities Stimulate supply chain innovation: More agile and responsive integrated supply chains Introduce knowledge management 39
40 Summary ITER project is Big Science with concrete industrial benefits Fusion strengthens economy, knowledge and growth Exciting opportunities for European Industry Integrated Nuclear Supply Chain 40
41
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