OECD REPORTING: REPORT OF THE NUCLEAR ENERGY AGENCY

UNCLAS PARIS 000235


FROM USOECD

DOE FOR NNSA/ PSTAPLES AND CFITZGERALD
DOE FOR NE/PANTALEO
DOE FOR SC/GILLO
STATE FOR EEB/EPPD, ISN/NMA, ISN/NE, EUR/ERA
UNVIE:NNELSON-JEAN
HHS: ECLARKE
NRC: CMILLER
E.O. 12958: N/A
TAGS: ENRG KNNP TRGY KSCA OECD UNVIE

SUBJECT: OECD REPORTING: REPORT OF THE NUCLEAR ENERGY AGENCY
MEETING ON SECURITY OF SUPPLY OF MEDICAL ISOTOPES, JANUARY 29-30,
2009


1. (U) This is an information cable.

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SUMMARY
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2. (U) The Nuclear Energy Agency (NEA) Workshop on the Security of
Supply of Medical Isotopes convened in Paris on January 29-30, 2009
and was well attended by representatives of government, industry,
the health industry, intergovernmental and non-governmental
organizations, and trade associations. There were over eighty
participants from thirteen OECD countries and three non-OECD
countries. The participants discussed the vulnerability of the
global medical isotope industry, which depends on a limited number
of aging nuclear research reactors for isotope production and a
complex processing and distribution chain for delivery. Several
regional and global supply disruptions in the recent past were
analyzed. One of the major conclusions was that due to the
condition of the reactors and lack of investment for improvement,
the vulnerability of the supply chain is likely to persist, if not
to increase, for several years. Alternatives to alleviate problems
in the short term and possibilities to increase isotope supply in
the long term were discussed. U.S. National Academies'
representative presented the highlights of the recent study on
isotope production without using highly enriched uranium (HEU). The
U.S. government representative outlined the Department of Energy's
requirements under the Energy Policy Act 2005. The law requires a
report to the U.S. Congress disclosing the existence (extent) of any
commitments by commercial isotope producers worldwide to provide
Mo-99 by 2013 to the U.S. Market using low enriched uranium (LEU)
target irradiation. It was announced that Mo-99 producers and those
with plans to produce Mo-99 for the U.S. market would receive
letters in March 2009 requesting information on their intent to
supply Mo-99 to the U.S. market using LEU targets by the end of this
four-year time frame. END SUMMARY.

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DETAILS OF THE DISCUSSIONS
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3. (U) The primary themes of the NEA workshop were, for the short
term, the "crisis of Mo-99 supply" due to unscheduled outages and
the need to stabilize the aging reactor fleet to provide reliable
services to the nuclear medicine industry, and for the long-term,
the need for new sources of supply and new technologies to deliver
Mo-99.


4. (U) Highlights included reactor operators discussing a
price-depressed market and the difficulty with operation of 40-plus
year-old reactors, and concern for missed schedules and the impact
on the patient. Other representatives of the supply chain also
stressed the need for improved organization for delivery of product
and communication with medical community and customers. Both
reactor operators and suppliers spoke out on the need for more
revenue to address capital investments for aging reactors, but
repeatedly spoke of the market's inability to accept any price
increases to cover the costs. Some arguments were contradictory and
were questioned during question and answer periods. Participants
noted that due to the age and increasing maintenance requirements of
the major production reactors, vulnerability of the isotope supply
chain is likely to persist, if not increase, for several years. To
reinforce this point, producers briefed their proposed future outage
schedules, which could well contribute to further disruptions in
supply.


5. (U) Dr. Kevin Crowley of the National Academies delivered a
presentation on its recent study entitled "Medical Isotope
Production without Highly Enriched Uranium". He fielded a number of
questions and comments. Reactor operators spoke of their
unwillingness to implement an 'unknown technology' (i.e. LEU
targets) on a large scale for fear of more shutdowns and shortages.
ANSTO's representative and director of the LEU-operated OPAL reactor
offered that it was not an untested technology and that OPAL has
been operating successfully for five years using LEU targets.
Successful operation, however, required a great deal of planning.
Industry representatives asserted that LEU-based production still
needed to be demonstrated at a global scale and that economics and
logistics needed to be assessed. Dr. Crowley responded that no
single template for conversion would be available to a reactor
operator and that R and D would be needed for each particular
facility. The national academies report can be accessed at:
www.nasonline.org.


6. (U) There were a number of comments about the U.S.
nonproliferation policy of HEU minimization. Though representatives
agreed that nonproliferation is important, there was a pushback on
conversion to LEU targets. Dr. Parrish staples, U.S. Department of
Energy/National Nuclear Security Administration (NNSA)
representative, in an explanation of the Energy Policy Act of 2005
requirement to conduct the national academies study, reminded
attendees that all but three governments in attendance at the
meeting had agreed to participate in the global initiative to combat
nuclear terrorism, and therefore, HEU minimization was "their
governments' policy" as well. The meeting also offered an
opportunity for Dr. Staples to announce the DOE/NNSA's plan to
canvass reactor operators or potential new suppliers about their
intent or extent of their commitments to supply Mo-99 to the U.S.
market using LEU targets by 2013, and inform them about the fast
track for a report to the U.S. congress on producers' intentions.
Letters would be sent to reactor operators, other key Mo-99
producers and potential producers by March 1, 2009 with a response
requested on or about May 1, 2009.


7. (U) Efforts to enhance reliability of short-term supply were
discussed and proposed during the meeting. These included, but were
not limited to: continued information sharing and enhanced
communication of reactor maintenance schedules, development of
contingency plans for handling future supply disruptions,
notification of outages and anticipated length of outages,
development of a communication strategy for the transport community
to avoid disruption of shipments, and interface with the medical
community to explore options for efficient patient scheduling and
utility of TC-99 generators. Requests for assistance were sought
from the Association of Imaging Producers and Equipment Suppliers
(AIPES),the International Community of Societies of Nuclear
Medicine, and the International Atomic Energy Agency (IAEA) for
coordination of capabilities that will streamline delivery of
product to the medical community.


8. (U) As for future additional capacity, there was recognition that
sufficient new capacity could take as long as 5-10 years to come
online. Presentations from the Republic of Korea and Japan revealed
that those countries would begin significant research and
development programs to prepare for domestic production of
Mo-99/Tc-99. Other countries voiced concern about ensuring a
reliable domestic supply of this critical medical resource. Although
there were references in the National Academies study and during the
workshop to commercial interest in the United States to build a
domestic capability, no specific discussion of this subject occurred
during the meeting. Representatives from B and W and the University
of Missouri attended the meeting but did not discuss any detailed
plans for a domestic supply of LEU-based Mo-99.


9. (U) Participants suggested that the NEA organize a workshop in
coordination with the IAEA to carry forward the agenda of the
workshop and to review additional practical measures that could be
taken.


10. (U) A side meeting was held with the Canadian delegation in view
of Canada's role as primary supplier of Mo-99 to the U.S. Associate
Deputy Minister of Natural Resources Canada, Serge DuPont, led the
meeting for Canada. It was an informative and candid discussion on
a range of topics including: HEU minimization, target conversion to
LEU, and HEU waste management.


11. (U) If posts would like additional information about the meeting
or background on the subject of Mo-99 production and conversion to
LEU targets, the DOE/NNSA point of contact is Parrish Staples at
email parrish.staples@nnsa.doe.gov or phone (202) 586-4042.

STONE