Winning Nuclear Business in Japan A different kind of market

Transcription

1 Winning Nuclear Business in Japan A different kind of market Dr Keith Franklin NNL First Secretary (Nuclear) UK Trade and Investment British Embassy Tokyo

2 The Great Tohoku Earthquake Nearly 20,000 people dead

3 Fukushima-Daichi

4 The next 30 mins or so Current Status of the Nuclear Industry in Japan? Reactor restarts Industry structure Decommissioning What are the Market Areas? Who are your potential customers? Business culture in Japan?

5 Japan has a lot of Nuclear Power Stations

6 Only Two are Operational

7 Industry Structure Private Utilities Hokkaido Tokuku Tokyo Chubu Hokuriku Kansai Chugoku Shikoku Kyushu JAPC Makers (Hitachi, Toshiba and Mitsubishi Heavy Industries) and their contractors Government and government agencies Academia Trading companies

8 Decommissioning - The Financial Situation Other Reactors Utilities have no reactors operating no money all efforts on getting them re-started leave decommissioning till later Fukushima Dai-ichi National priority government funded

9 What are the Markets? Fukushima Dai-ichi Decommissioning TEPCO Makers IRID NDF Suppliers to the makers Other Decommissioning Utilities Makers Suppliers to the makers Supporting Generation Utilities Their suppliers

10 Fukushima Dai-ichi Decommissioning v Other Decommissioning Fukushima Dai-ichi A National Project. Some form of government funding available. Roadmap Strategy the responsibility of the NDF First of a kind issues, many unknown unknowns (e.g. Removal of the reactor cores) No domestic experience of dealing with dirty nuclear sites No long term waste management strategy/policy Most work will be delivered through Hitachi, Toshiba and MHI Other Reactors Responsibility of the operating utility Planning is the responsibility of the operating utility Conventional decommissioning of a well understood facility. Some experience of planning and delivering decommissioning No long term waste management strategy/policy Most work will be delivered through Hitachi, Toshiba and MHI

11 Reactors Earmarked for Decommissioning Operator Reactor Reactor Vendors Kansai Mihama-1 MHI Kansai Mihama-2 MHI Kyushu Genkai-1 MHI Chugoku Shimane HGNE JAPC Tsuruga-1 MHI

12 Reactors already undergoing decommissioning Operator Reactor Shutdown JAPC Tokai Chubu Hamaoka Chubu Hamaoka JAEA Fugen (ATR) 2003 JAEA Tokai(repro) 2014

13 Japanese Nuclear Power Plants

14 UNCLASSIFIED

15 The Frozen Soil Wall

16 Progress at Reactor 4

17 What are the challenges at Fukushima Dai-ichi? Contaminated water management Damaged fuel removal Fuel debris removal Methods Canisters Waste management

18 Fuel Debris Removal

19 The Dai-ichi Roadmap Discussions on Waste management / conceptual design for the containers for debris I nternal survey of PCV and sampling Conceptual studies of methods to remove the core material. Govt subsidy (Makers involved) Decision made on the method to be used to remove debris from the reactor cores core Work starts to remove material from the

20 Timescale for Decommissioning Other Reactors Announcement of first tranche of reactors to be decommissioned Further reactors earmarked for decommissioning. Time schedules as yet unclear. There will be a need for decommissioning planning, waste management, and programme management. It is not yet clear how much of this will be open to ov erseas organisations. General construction work will be carried out by Japanese contractors. The ultimate decisions will be made by the utilities themselves, but it is almost certain that the reactor vendors will be involved in the nuclear specific work. levels Around % of Japan s Electricity from nuclear (a reduction from pre 2011

21 Who are your potential customers? TEPCO Will tend to direct you towards the Makers (Hitachi, Toshiba, MHI) Not set up to deal with overseas companies Other Japanese companies who supply the makers Sub-contractors to the Makers IRID NDF Agents and importers Realistically you need a Japanese partner what kind of partner will depend on what you are offering.

22 Price (sometimes) isn t important At Fukushima Dai-ichi getting it done is important. Working with an overseas company costs time and money (language difficulty) Proven technology will be successful (e.g. used at Sellafield or Dounreay) Technology development is possible IRID Already developed? TEPCO Makers Suppliers to the makers Depends on what your products or service is Price more of a factor in the decommissioning of other reactors.

23 UK-Japan Strategic Partnerships? Strategic partnerships developed through the UK new build programme Japanese expertise UK decommissioning experience Successful decommissioning in Japan

24 Electricity Market Reform About to happen in Japan Geographical monopolies broken up Unclear yet how the nuclear industry will be restructured to adapt to this

25 Business Culture Aizuchi: Active listening

26 Decision Making Culture Individuals Personal Proactive Organization Group Bureaucratic US Japan UK? Russia France Germany China

27 Features of Japanese decision-making Result is the same, but the process is different Interested in anything new but takes time to accept and introduce unknown and inexperienced system/product/event? Easier to exend something which already exists Easy if you are not first of a kind No return once that decided and complete until the end Difficult to return and withdraw on the way though something develops successfully Strong spirit of completion Time-keeping High concentration Often cannot see the wood for the trees. 27

28 Japan Nuclear Energy Safety Organization UK vs. Japan Nuclear Business 53% foreign investment in GDP No reactor vendors Nuclear acceptance Much broader supply chain 3% foreign investment in GDP THREE Reactor Vendors Anti nuclear sentiment Bond between Utilities and Vendors very strong Strong technical reliance of utilities on vendors Design and fabrication all in the same company

29 Hints for Business Success Not guaranteed Personal Trust is most important (often than the detail sales words on Products) Continuous networking is critically important (but travel makes this expensive) Keep listening the voice from the sites Too many questions on Details Respond with care and sensitivity (keep your patience) Respect existing Relationship between TEPCO and Vendors No strict Criticism on the foregoing Relationship No Criticism on Precursors Product Stress your Uniqueness by careful differentiation from the competitors. General information on the success in foreign Markets does not work) Keep in touch with the NDF! Not as an agent of your company but a promoter of the technology offered by you and your overseas competitors Of course no guarantee of your business! 29

30 Conclusions To work in Japan you need some sort of Japanese partner. Maybe start with an agent or trading company. For decommissioning of normal reactors. The market will change and there is an opportunity to work with utilities Be prepared to wait a long time Make it clear you are in Japan for the long run. Long term relationships are important For Fukushima Dai-ichi Develop relationships with TEPCO and their suppliers Be prepared to take on a small contract first to build confidence in your company.

31 Conclusions (cont) Be aware of the political situation No mistakes! Differentiate but don t criticise competitors Do your research, and decommissioning experience and offer something Japan needs but doesn t yet have. Price not always the differentiator

32 Supporting Exports How UKTI can help your company succeed overseas

33 What is UKTI? UKTI is UK Trade and Investment Government body to promote UK exports and to attract foreign investment. Network of international trade advisors in the UK Staff working in Embassies, consultates and high commissions around the world. Work very closely with SDI

34 What do we do / how can we help? Work in country to identify opportunities Google UKTI Biz Ops Provide general market advice Run missions / trade shows / seminar Provide specialist advice Help with officialdom Raise the profile of an industry / create an opportunity

35 Things you can do Attend the UK Civil Nuclear Showcase 2016 Enter website here Join our mailing list: Export to Japan UKTI Biz Opps Decommissioning YouTube channel Contact:

36 Things you can do Attend the UK Civil Nuclear Showcase 2016 Enter website here Join our mailing list: Export to Japan Enter website here Biz Opps Enter website here Decommissioning YouTube channel Contact: