Considerations for Cradle-to-Grave Fuel Services and/or Fuel Leasing Arrangements

For an expansion of nuclear energy to take hold and gain momentum, confidence in the complete fuel cycle is needed—from the front end to the back end. Given the proliferation sensitivities of enrichment and reprocessing, many nations are developing proposals to increase confidence in the international marketplace for such services, thereby avoiding the need for states to invest in costly indigenous programs. These proposals include backup mechanisms to deal with potential interruptions in uranium fuel supply (e.g., the six-supplier country multilateral mechanism for reliable access to nuclear fuel1) and new avenues for obtaining enrichment services using facilities with varying degrees of multilateral control (e.g., President Putin’s “international fuel service center”2 concept). While important and achievable in the near-term, these proposals do not address spent fuel disposition concerns. Credible nuclear waste treatment and, particularly, spent fuel disposal would represent a significant inducement for states to forgo enrichment and reprocessing. This paper examines the economic, technical and political challenges of developing reliable, “cradle-to-grave” fuel services and explores options for increasing the obligation and transparency of nuclear suppliers in dealing with the supply and ultimate disposition of nuclear material.