ByDr Muhamad Lebai Juri (Director‐ General  Nuclear Malaysia)

At theConference on Nuclear Energy & Opportunities for Construction Sector  

Nuclear Malaysia’s Technical Support Services for The Construction Industry in Nuclear Power 

Development

1. Transforming Malaysia‐Malaysia’s Economic Transformation Program (ETP)  & The Role for Nuclear Power

2. National Policy Directions and Decisions Relating to Nuclear Energy  

3. IAEA Guide on Industrial  Development & Local  Industry Involvement

4. Present Local Capability  ( Manufacturing, Engineering )

5. Opportunities in Nuclear Power Industry for the locals

6. Potential Scope  of Localization  for Nuclear Power Plant‐ Reference

7. Opportunities and Challenges for Local Companies

8.IAEA Publication on Guideline of Construction Technologies for NPP

9.Technical Support Organization

10.Critical issues to consider in helping local industry  to support nuclear power sector

12. Observation  and Conclusion

Contents

1 .  Malaysia’s Economic Transformation Programme

(ETP)

Malaysia’s Prime MinisterDato’ Sri Najib Tun Abd Razak

launching Malaysia’sEconomic Transformation

Programme (ETP) with 12 NKEAS

Role Of Nuclear Poweroutlined in OGE 

2 . National Policy Directions and Decisions Relating to Nuclear Energy  

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RECENT NATIONAL POLICY DIRECTIONS & DECISIONS RECENT NATIONAL POLICY DIRECTIONS & DECISIONS RELATING TO NUCLEAR ENERGYRELATING TO NUCLEAR ENERGY

Jan. 2006:Comprehensive Paperon Nuclear Energyby Nuclear Malaysiato the Government

20062006 20072007 20082008 20092009 20102010

June 2009: Government decision for nuclear energy to be one of fuel options for electricity supply post-2020, especially for Peninsular Malaysia& establishment of the Nuclear Power Development Steering Committee (JPPKN)

Aug. 2008 :2009 Budget Speech in Parliament to, inter alia, explore nuclear energy & formulate a new National Energy Policy

March 2010: Launching of Part 1 of New Economic Model (NEM)

June 2010:Launching of 10th Malaysia Plan in the Parliament,which incorporated a New National Energy Policywith nuclear energy as longer term option for the Peninsula,with feasibility study, human capital training & awareness campaigns.

October 2010:Launching of Part 2 of the New Economic Model,incorporating the Economic Transformation Programme (ETP).July 2010: Government adoption of the National Nuclear Policy

March2011 Fukushima and formation of MNPC as NEPIO

MALAYSIAN NUCLEAR AGENCYMALAYSIAN NUCLEAR AGENCY(NUCLEAR MALAYSIA)(NUCLEAR MALAYSIA)

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‐ Government Agency (Ministry of Science, Technology and Innovation ; MOSTI)

– Staff :  more than 800

– Location : Bangi, 30 km south of Kuala Lumpur

– Established 

• 19 Sept 1972 – Centre for Application of Nuclear Energy

• 1982 – TRIGA Reactor Criticality and fully operational at current site

FUNCTION AND ACTIVITIESFUNCTION AND ACTIVITIES

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As stipulated in the Ministers of the Federal As stipulated in the Ministers of the Federal Government (Amendment) Order (No. 2) 2008Government (Amendment) Order (No. 2) 2008

1.1. Conduct research and development (R&D), services Conduct research and development (R&D), services & training in nuclear technology for national & training in nuclear technology for national development;development;

2. Promote the application, transfer & 2. Promote the application, transfer & commercialisation of nuclear technology; and,commercialisation of nuclear technology; and,

3.3.Coordination & management of nuclear affairs at Coordination & management of nuclear affairs at national & international levels and as liaison agency for national & international levels and as liaison agency for the International Atomic Energy Agency (IAEA) andthe International Atomic Energy Agency (IAEA) and

3.3. Implementing Agency for Comprehensive Test Ban Implementing Agency for Comprehensive Test Ban Treaty (CTBT).Treaty (CTBT).

3 .  IAEA’s Guide on Local Industry InvolvementTo Support Nuclear Power

Korean and Japanese ExamplesKorea• Main Driver and Contributor to Their 

Present Economic Achievements

• Started from Zero in 1970s, built 1st

NPP as a poor nation with beggars loitering in the streets

• The only Local supply mostly sand and cement, less than 10% localization

• BUT THEY HAVE NATIONAL ASPIRATION AND CONCRETE PROGRAMS

• Now nearly 100% Local

Japan• Japan Started Early in 

1950s

• They were Industrially Strong to support the Military 

• 1st NPP Local content was above 50%, Now nearly 100%

• Japan Treated Nuclear as Their “Natural Energy Resource” due to HRD and Technological Capabilities

KoreaNPP 

DevelopmentLessons Learnt

Korea NPP DevelopmentLessons Learnt

(Slides courtesy of Chae, S.S. Konicof, 2010)

Korea NPP Development Lessons Learnt

4.  Present Local Industrial Capability

Malaysia’s POWER GENERATING Machine & Equipment ( M&E )  Industry

‐Boiler/Pressure Vessels‐ Generators‐Turbines & Components‐Heat Exchangers‐‐ Air conditioning plants‐Cooling Towers‐ Cranes, elevators, conveying systems‐Pumps, valves, compressors, bearings

Malaysia’s POWER GENERATING Machine & Equipment ( M&E )  Industry

Major Companies involved in the Production:‐

POWER GENERATING MACHINERY AND EQUIPMENT 

•Mainly comprises of

‐ boilers, 

‐ condensers, 

‐ turbines and engines,

‐ electric generator (also for refinery, exploration platforms, petrochemical plants and commercial buildings).

(i) Boilers:•Mechmar Boilers• Vickers Hoskins• Advance Boilers• Amalgamated Metal Corp.• Enco Systems• Petra Boilers• Tenaga Tiub• Transtherm Engineers

(ii) Generators:• Sime Darby Industrial• UMW Industrial Power• Hong Seng Generator• MTU Services

(iii) Turbines and components:• Turboservices Overhaul

• Noorisba Energy• Serba Dinamik Turbo Machinery• Galaxy Energy Technologies

Malaysia’s  GENERAL INDUSTRIAL Machine & Equipment ( M&E )  Industry

COOLING TOWERS

BAC Cooling TechnologyTopgroupLinear Cooling IndustriesPanwater Engineering

CRANES

Favelle FavcoImpsa MalaysiaMHE DematicJost Cranes

Other Engineering Support Industry • Heat Treatment 

‐ mesh‐belt heat treatment, Vacuum hardening‐ carburizing, carbonitriding, nitriding, nitro‐

carburizing‐ annealing, normalizing and tempering‐ Heat treatment of high carbon steel and alloy steel 

for moulds and dies, bearings and automotive components

• Forging‐ small and medium forged parts for automotive 

and manufacturing sector‐ Potential of large forged parts for oil and gas

• Metal Fabrication‐ offshore/onshore oil and gas industry;‐ building and civil construction‐ processing and manufacturing plants‐ Industrial machinery  and equipment structures

‐

‐Heat Treatment 

‐ Forging

‐Metal Fabrication

RMk-11 Proposed Game Changers

RMk‐11 Proposed Game Changers

Comparing Malaysia with Korea and Japan 1st NPP

• We are Above the Korean and Perhaps A little Below Japan 

• If Fully and Well Articulated, Good Chance of Developing A Good Global NPP Component Supply Chain Player

5 .  Opportunities in Nuclear Power Industry 

Nuclear industry value chain, includes the  followings:

1) Font‐end fuel markets (i.e. uranium mining through fuel fabrication)., 2) The overall nuclear reactor sector ( nuclear reactor planning, construction , operations and maintenance and decommissioning ) , as well as the 3)Back‐end of the fuel cycle.( fuel treatment /reprocessing, storage and disposal ) 

5. Nuclear Power Plant Parts

Nuclear  Island Turbine  Island  Balance of Plant 

Plant and Equipment for a nuclear power plant includes the reactor pressure vessels and ancillary equipment such as tanks, pipework, and the more conventional turbines, generators and switchgear.

Much of the ancillary equipment is similar to that required for non‐nuclear (eg, fossil‐fuelled power and chemical plant) and significant experience has been developed and maintained through these non‐ nuclear projects.

Nuclear Island Non- Nuclear Island

Primary Containment

Balance of Plant (BoP)

Primary Support Systems

Reactor Coolant System

Pressure Vessel and Core

Steam Generator

I&C Equipment

Turbine Island Structural

Secondary Support Systems

Secondary Steam Cycle

generator Equipment

Turbin Equipment

transformer Equipment

Balance of Plant Structural

BoP Support Systems

Electrical Equipment

Mechanical Equipment

I&C Equipment

Circulating water Cycle

Non‐ Nuclear  Island

Turbine Island Structural eg Turbine  BuildingStairs, Elevators, Doors ,TB Bridge Crane

Secondary  Steam  Cycle eg  Turbine, GeneratorTransformer  Condensers, Feed Pumps, Control valves

Electrical Equipment eg  Power Supply, AC/DCPowerTransformers,  Cable, Switchgears, Grid 

Mechanical Equipment eg  Heat Exchangers, Containment  Isolation Valves 

I&C Equipment‐ Control room instrumentationpanels

Non‐ Nuclear  Island

Secondary  Steam  Cycleeg  Turbine, 

GeneratorTransformer  Condensers, Feed Pumps, Control valves

The high pressure steam  from NSSS is sent to the turbine  (which has many hundreds of blades turned at an angle ) to spin the turbine's shaft that is attached to the bottom of the blades. 

Cranes used for Nuclear Power Plant 

Polar Crane Lifting Reactor Vessel in Containment Building  (Nuclear Island )

Turbine Building Crane

Source : NuCrane Manufacturing, LLC

Non‐ Nuclear  Island

Turbine Island Structural : Turbine  Building,Stairs, Elevators, Doors ,Turbine Building (TB) Bridge Crane

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7. Opportunities and Challenges for local industry

Opportunities Challenges

Nuclear Island • Installation of the nuclear island • 1st project – lack of experience• No local standard for components • Subject to intellectual property • Limited market• Present available global nuclear

suppliers

Non ‐Nuclear Island (conventional island)

• Local companies have offered products and services to thermal power plant

• Upgrade the current manufacturing practices meeting the requirement of nuclear power sector

Balance of Plant • Local companies have offered products and services to thermal power plant

Upgrade the current manufacturing practices meeting the requirement of nuclear power sector

Front/Back End Market of Nuclear Fuel Cycle

• FE: Mining, Milling, Extraction, fuel fabrication (Uranium/Thorium);• BE: Disposal/storage of High/Medium level waste; recycling of spent fuel

• Transfer technology from foreign companies• Human capital development/expertise

8. IAEA Guide ‐ Construction Technologies For Nuclear Power Plant and Project Management

NPP Project Management– Integration of TASK

Korea NPP DevelopmentProject Management 

Selection of sub‐suppliers 

To minimize potential risks of manufacturing and construction delays.  Risks may exist if sub‐suppliers provide components or services that are outside of their experience and capabilities. The following items should be included in the evaluation of sub‐suppliers

— Qualifications according to relevant regulations;

— Safety management system;

— Quality management system;

— Safety and quality records;

— Technical capability including required tools and infrastructures;

— Production or service‐supply records;

— Availability of qualified human resources;

— Construction machinery and equipment.

Civil/ArchitectureThese work packages are usually classified into three main groups:

— Civil (all activities from excavation to the setting of the concrete, sometimes called ‘humid works’, and metallic structures);

— Architectural (all activities not included in the previous group sometimes called ‘dry works’ such as painting, ceilings, doors, windows, floors, etc.);

— Yard construction (all activities performed in open areas outside the buildings. This category includes buried pipes and cables).

Civil and architectural disciplines can be grouped by building (Ex.: Nuclear Steam Supply System and Balance of Nuclear Island)

MechanicalComponents

These work packages can be classified as:

— Special components (Ex.: Turbo Generator, Reactor, Steam Generators, Main Pumps and Motors). Sometimes primary pipes and associated equipment are classified as components and are included in this group;

— Process components (Ex.: Tanks, heat exchangers, medium and small size pumps and motors, etc.).

Related activities at lower levels of the WBS are the painting of mechanical components, prefabrication and installation of thermal insulation. Process components can also be grouped by building (Ex.: Nuclear Steam Supply System and Balance of Nuclear Island).

HVAC

These work packages include prefabrication and installation of ducts and of in‐line components such as dampers, filters, ventilators including motors, etc. HVAC components can also be grouped by building: (Ex. Nuclear Steam Supply System and Balance of Nuclear Island).

Piping

This is normally considered the most complex and critical category. The work packages include site prefabrication (as defined by the construction technologies used), installation including supports, fittings and in‐line components (Ex.: valves, instrumentation parts, filters, small process components not included in the first group). Related activities at lower levels of the WBS are painting of mechanical components, prefabrication and installation of thermal insulation. Piping installation can be grouped by building (Ex.: Nuclear Steam Supply System and Balance of Nuclear Island)

Example of Workfor local industry to participate

To be completed prior to commencement of site development and plant construction

— Subsurface (soils and bedrock) testing and analysis to assess site 

optimum location;

— Environmental assessment;

— Site survey, monuments installed and site survey control programme established;

— Detailed transportation study to and from the site for modules, equipment and personnel;

— Any upgrades and load testing of routes required to handle the traffic and heavy loads of existing roads, bridges or overpasses and barge offload facilities; railroads;

— Any significant cuts and fills necessary to provide a flat and level site 

free of encumbrances and obstructions;

— Design for both permanent and temporary construction 

facilities;

— Electronic three dimensional (3‐D) model for all 

permanent and  temporary sites, structures and components.

IAEA GuideSignificant civil and structural activities include:

— Protective works against tsunami, flooding, tidal wave breakers; etc.;

— Construction of erosion control and surface runoff systems;

—Excavation;

— Earth/soil/rock removal and/or disposal;

—Site dewatering system set‐up;

— Remedial measures on foundation soil/rock;

— Rock/soil slope stabilization;

— Building under drainage and peripheral drainage;

— Foundation works;

— Concrete superstructure;

— Structural steel fabrication and erection;

— Yard services, including storm drainage and sewage system;

— Backfilling works;

— Roads and landscaping;

IAEA ‐ The work breakdown of mechanical installation activities includes:

— Engineering and Labour management;

— Mechanical equipment installation;

— Reactor systems and controls;

— Turbine and generator;

—Water treatment;

— Fire protection;

— Jibs, hoists, cranes and trolleys;

— Elevators and man‐lifts;

— Pumps and drivers;

— Plumbing and sanitary systems;

— Radwaste systems;

— Access steel (grating, handrail, ladders, stairs);

— Piping, hangers and pipe specialties;

— Fabrication and —Welding;

— Fitup, installation and weldout;

— Valves and actuators;

—HVAC ductwork, HVAC dampers and actuators, HVAC fans and equipment;

— Piping and equipment insulation and lagging;

— Examination, testing and startup;

— Field verification (quality assurance (QA)/quality control (QC)/testing)

IAEA ‐ Electrical and instrumentation and control (I&C) installation activities generally include:

— Power and control raceway,  Conduit and cable tray installation;

— Instrumentation (racks, mounting, transmitters, switches, etc.);

— Power and control cable and terminations;

— Isophase and non‐segregated bus duct;

— Transformers and switchgear;

— Motor installations and motor control centres;

— Control room panels, wiring and termination;

— Local I&C equipment, Digital control systems;

— Electrical equipment, Lighting;

— Switchyard breakers and equipment;

— Equipment and site grounding;

— Heat tracing;

— Communications and data systems;

— Field verification (QA/QC/Testing);

— Essential power,  Batteries, chargers;

— Emergency generators;

— Examination, testing and startup

9. Technical Support Organization (TSO)9. Technical Support Organization (TSO)

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• The definitions of TSO varies from country to country

• TSO that provides services to NRA “should not” serve the Operator. 

• To differentiate ‐ different names such as TSO for TSO‐NRA and Design Authority for TSO‐Operator. 

• Short term solution will include the option of getting international TSOs for the first NPP. 

• Fore sighting the future,  to serve both NRA & Operator, organizational restructuring may be required

• Under ETP 2010 Nuklear Malaysia was named as National TSO

• MNPC and Nuklear Malaysia laid the roadmap for TSO Development

Nuclear Malaysia as TSO• Experience and Expertise

‐ Supervision in the construction of 1MW Research Reactor

‐ 30 years experience in operation and maintenance of research reactor

‐ 30 years experience in managing radiation risk and safety

‐ Radiological impact assessment (RIA) of research reactor and many other radiation facilities

‐ Safety analysis of nuclear reactor and other radiation facilities

‐ Certified radiation protection expert

‐ Non Destructive Testing Experts recognized internationally

‐ Radioactive waste management expert

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Nuclear Malaysia as TSO• Facilities

‐ Research reactor for training of operators and nuclear engineers

‐ laboratories for nuclear measurement and analysis

‐ Centre of excellence in radiation safety

‐ National centre of excellence in Non Destructive Testing

‐ National radioactive waste management centre

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How Nuclear Malaysia Can Support 

• Nuclear Malaysia initially can 

‐ provide expertise in Testing and Evaluation of concrete (currently provided)

‐ training and qualification of local NDT practitioners

‐ sourcing of external expert to assists locals through IAEA and other international organizations

‐ collaborate with local industries to conduct research in areas related to construction

‐ Provide support for local industries to get Nuclear Certification

TSO Evolution

Mother TSO (NM)

Mother TSO (NM)

TSOUniversity

2011 2021

TSO(International/

private)

TSO(International/

private)

10. Critical issues to consider in helping local industry to supportNuclear Power Sector

Critical issues to consider in helping local industry  enter theNuclear Supply  Chain

The role of the local/ national and international  supply chain will be determined in part by:

1)The choice of reactor design & typeeg  Pressurized Water Reactor ‐ PWR,  VVER ,AP1000 , EPR etc

Boiling Water  Reactor – BWR, ABWR etc

2) consortium structures established Reactor Vendors ( Westinghouse, AREVA, KEPCO, Toshiba etc )& their chosen/selected nuclear suppliers ( local and/or international companies )

to support the construction of the nuclear power reactor and plant.

3a) availability and/or lead times of critical components and services, eg Reactor Pressure Vessel (RPV) , Steam Generators,  pipework and valves, and 

main Engineering, Procurement and Construction (EPC) contractor and plant management capacities.,   etc 

which could lead to  delays in a national  nuclear new build, and/or to cost escalation.

Note : Significant increase in global orders for new nuclear plant will stretch the supply chain 

Critical issues to consider in helping local industry  enter theNuclear Supply  Chain

3b. It would be strategic and imperative to review and identify/determine  what  would thecountries and companies  need to develop or produce,  which currently (or in future) cannot be obtained from overseas suppliers without long delays, which could ultimately threaten both the:

a)  security and b) affordability  of energy supplies

4. Many capable companies exist in Malaysian industry but they lack nuclear experience, where specifications are often different from usual industry standards

Thus local companies must be introduced to and updated regarding  Codes ,Standardsand accreditation by International organizations including the ASME, USAa) In striving to enter the nuclear industry sector b) to ensure  public safety c) facilitation of international business acceptance  and d) enhance export  opportunities In particular ,  for selected high grade nuclear power components companies need  be aware that  they are mandated  to obtain an ASME Section III N‐Stamp :Thus  companies must be assisted to better understand the  ASME's N‐Stamp accreditations  and the process & cost  to attain it

11.  Observation and conclusion

1. Local companies in the construction, manufacturing and services sectors have attained high standards and quality assurance with many exporting their products and services internationally.

2. Many capable companies exist in the Malaysian industry but they lack nuclear experience

3. Companies await firm decision by Government before consideringentering and investing in the nuclear power sector

Conclusion

1. The Global Expansion of Nuclear Power Programme offersbusiness opportunities to international as well as local companies

2. Commitment and Support from Government is necessary to encourage and engage local companies to enter and invest innuclear power sector.

3. Local companies must be updated regarding business opportunities in the nuclear sector, including the unique andhigh quality and standards requirements of this sector.

4. Enhancement of manufacturing , construction and services capabilities is necessary to prepare local industries to developa local nuclear supply chain as well as offer its products and service internationally.