1. Current Status on the Construction of New Reactor in Korea : Security of Supply of Medical Radioisotopes Dept. of nuclear Engineering, Hanyang University Jong Kyung KIM November 15, 2010

2. Current Status of the World

3. Current Status of World-wide Reactors  World Nuclear Growth: No. of Research Reactors and Their Thermal Power  No. of Research reactors in Industrialized and Developing Countries  Many research reactors were built in the 1960s and 1970s and the peak number operating was in 1975, with 373 in 55 countries.  After 1975, no. of research reactors were significantly reduced by some problems (i.e., lifetime and economic efficiency of research reactors) in industrialized countries.  Whereas, developing countries continuingly built research reactors from 1950s to present. * Source : IAEA Research Reactor Data Base(RRDB), 02.2010

4.  Most research reactors in the world (~40%) are concentrated in US and Russia.  The power of operable research reactors mainly lower than 100 kW (~50%). - Most of research reactors are constructed for the research & test of power generation reactors.  80% research reactors in north and central America are suspended in operation.  Operational Research Reactors in IAEA Member States  Power Distribution of Operable Research Reactor Current Status of World-wide Reactors * Source : IAEA Research Reactor Data Base(RRDB), 02.2010

5.  Age Distribution of Research Reactors - Reactors constructed more than 40 years ago: 54.6% - Reactors constructed less than 40 years ago: 45.3%  Temporary Shutdown Research Reactors - Countries: 11 (Argentina, Belgium, Bulgaria, Canada, Chile, Congo, Greece, Japan, The Netherlands, Russian Federation, and United Kingdoms) - No. of Research Reactors: 12  Age Distribution of Research Reactors Current Status of World-wide Reactors 4 34 29 299 78 189 88 75 100 38 54 14 6 4  Temporary Shutdown Research Reactors * Source : IAEA Research Reactor Data Base(RRDB), 02.2010

6. CountryReactor NameReactor Type Thermal Power (kW) Thermal Flux (n/cm 2 /s) Fast Flux (n/cm 2 /s) Critical Date Large-scale Producer CanadaNRUHEAVY WATER1350004.0E144.5E131957-11-03 NetherlandsHFRTANK IN POOL450002.7E145.1E141961-11-09 BelgiumBR-2TANK1000001.0E157.0E141961-06-29 FranceOSIRISPOOL7002.7E122.6E121966-04-28 South AfricaSAFARI-1TANK IN POOL200002.4E142.8E141965-03-18 Small-scale Producer ArgentinaRA-3 POOL50004.8E131.4E141968-08-01 AustraliaOPAL POOL200003.0E142.1E142006-08-12 Russian Fed.WWR-TS TANK WWR150001.8E143.3E141964-10-04 Potential Use for Mo-99 Production USMURR TANK IN POOL100006.0E141.0E141966-10-13 IndonesiaG.A. Siw. MPRPOOL300002.5E142.3E141987-07-29 EgyptETRR-2 POOL220002.8E142.2E141997-11-27 PeruRP-10 POOL100001.2E141.0E141988-11-30 ChileRECH-1 POOL50007.0E135.0E131974-10-13 PolandMARIA POOL300003.5E141.0E141974-12-18 RomaniaTRIGA II Pitesti TRIGA DUAL CORE 5002.0E132.5E131979-11-17 Republic of KoreaHANARO POOL300004.5E143.0E141995-02-08 The Specification of Research Reactors Producing Mo-99

7. Current Status of Research Reactors Producing Mo-99  54 research reactors in the world are producing the radioisotopes. - RI Suppliers (Large-scale): Canada, The Netherlands, Belgium, France, and South Africa - RI Market Share of Major Research Reactors: 92% - Temporary Shutdown Research Reactors: NRU and HFR  Status of Major Research Reactors for the Mo-99 production (*Source: European Commission, SANCO/C/3HW, 2009) NRU Research Reactor, Canada HFR Research Reactor, The Netherlands BR-2 Research Reactor, Belgium SAFARI Research Reactor, South Africa OSI RIS Research Reactor, France  World Share of Mo-99 Radioisotope 53 49 46 45 Year  Age Distribution of Major Research Reactor

8. 2008-20102010-20152015-2025 I-131OOO Sr-89OOO Ir-192OOO Sm-153O+O Re-186OOO I-125OOO Y-90+++ Lu-177+++ Ho-166O+O  A distinct increase is expected in the use of Lu-177 and Y-90 and this trend will continue until far into the future.  The use of Ho-166 and Sm-153 will be also increased, although not before 2010.  The current use of Iodine and Iridium is not expected to increase a great deal.  Requirements for reactor radioisotopes such as Sm-153, Y-90, Er-169 and possibly Re-186, continue to grow, following the general trend towards widespread utilization for therapy.  Expert Expectations for the Application of Therapy with Radioisotopes O: Unchanged, +: Increase  Estimated Number of Therapy with Tc-99m/Mo-99 Isotope Expected Use of the Various RI in the Future in the Future  * Source : European Commission, SANCO/C/3HW, 2009

9. Current Status of KOREA

10. Year Classification 20042005200620072008 Unsealed RI5338931,0781,0931,084 Sealed RI14,47025,33510,61628,72118,284 Total15,00326,22811,69429,81319,368 (Unit: TBq)  Total Demand of Radioisotopes in 2007 : 29,813 TBq (Co-60 included)  Major Radioisotopes Consumed in Korea : H-3, Mo-99, I-131, Co-60 and Ir-192  RI Supply in Korea Classification20082009 Increase Rate(%) Unsealed RI 15 32 113 Sealed RI 2,334 1,495 -36 Sum 2,349 1,527 77  RI Export Classification20082009 Increase Rate(%) Unsealed RI 897926 3 Sealed RI 8,0652,622 -67 Sum 8,9623,548 -64  RI Import (Unit: TBq) Current Status of Domestic RI Market * Source: Korea Radioisotope Association

11.  Details of Nuclear Imaging Diagnostic  Details of Clinical RI Use  Tc-99m among various Radioisotopes has the biggest market share.  Tc-99m is mainly used for the MDP (Bone Imaging).  The frequency of medical RI use has been continually increased from 2000 to present. Classification20002005200620072008 Cardiovascular System 39,35277,25080,98778,10678,800 Musculoskeletal System 114,511259,337276,891284,508298,631 Brain Nervous System 8,80617,88618,41618,65618,221 Urinary System 18,59631,96235,04037,55336,041 Thyroid Gland 67,68398,420105,112109,345106,380 Digestive System 27,10224,23923,30823,21820,986 Others 26,1006,65116,2376,8563,965 Total 302,150515,745555,991558,242561,472 (Unit: # of Uses) Classification2005200620072008 Treatment13,40715,79420,16825,078 Nuclear Imaging515,745555,991558,242561,472 PET Therapy57,031100,530184,824247,933 In-vivo Therapy1,6391,7632,7762,524 RIA13,706,18315,291,10414,989,43615,063,997 Total14,294,00515,965,18215,755,44615,901,004 (Unit: # of Uses) Trends of Radioisotope-use in Korea * Source: Korean Society of Nuclear Medicine

12.  High Import Dependence of Tc-99m Supply  Fabrication Only in Domestic Production  Occurrence of Tc-99m Supply Shortage in 2008  Annual Trend for Tc-99m Supply 368 TBq 373 TBq 428 TBq About 10% Increase per Year Classification200320042005200620072008 Total223298351368373428 Domestic Production * 0.74738394183 Imports222291313329332344  Annual Trend for Tc-99m Supply (Unit: TBq) Current Status of Domestic Tc-99m Supply * The domestic products are manufactured with the Mo-99 imported from South Africa ** Source: Korea Radioisotope Association

13. CountrySAUSAJAPAN Netherlands AustraliaTotal TBq12287565512332 Thousands USD 5933641,0215301112,620 $ 600 / Ci $ 5 Million Present $ 2.6 Million Market (2007)  Tc-99m Market Share of Major Countries (2007) Mo-99 Import Market in Korea * Source: Korea Radioisotope Association

14. Korea RI Market Canada NRU Bruce B Netherlands HFR Russian Federation SM MIR-M1 WWR-M USA MURR HFIR South Africa Safari-1 Argentina Atucha 1 Embalse 1 Canada MDS Nordion Japan Fujifilm USA Tyco Healthcare / Mallinekrodt GE Healthcare Limited Belgium IRE South Africa NECSA/NPT England /Russian Fed. REVISS Amersham Belgium BR-2 France OSIRIS Australia ANSTO Australia HIFAR OPAL Mo-99 Supply Chain in Domestic Market

15. Radioisotope Production Facility (HANARO) Region Irradiation Hole Number Thermal Neutron Flux (n/cm 2 sec) In Core CT IR 1 2 ~ 4.0  10 14 3.0 ~ 4.0  10 14 Out Core OR 4 2.0 ~ 3.0  10 14 Reflector HTS IP NAA 1 17 3 8.8  10 13 2.4 ~ 15.0  10 13 3.6 ~ 16.0  10 13

16. ClassificationIsotopeSales Quantity(GBq)Sales Prices(USD) Use of Medical and Research Purpose I-13117,279 849,672 Ho-16666 4,375 Au-198747 1,744 Cr-510.074 67 Ir-1921,707 1,000 Sc-462 - Sum (A)19,801 856,858 Use of Commercial Purpose Ir-192Production4,465,766 485,792 Ir-192 Production from Import 2,060,866 - Co-60103 16,583 Sum (B)6,526,735 502,375 Total Sum (A+B)6,546,536 1,359,232  Radioisotope Supply and Production by HANARO Reactor (2008)  Ir-192, I-131, and Ho-166 have been produced and supplied on a large scale.  Production technologies for 10 kinds of radioisotopes were developed and integrated into HANARO.  This research reactor is limited to install the additional production facilities Radioisotope Production at HANARO * Source: Korea Atomic Energy Research Institute

17. Previous Shortages in RI Supply

18.  The Recent Shutdowns of Major Mo-99 Production Reactors (HFR [Netherlands], BR-2 [Belgium], and NRU [Canada] Reactor Shutdowns in August 2008) - Global Medical Isotopes Crisis Highlights Alarming Lack of RI Production Facilities 5 Disruption between 1995-20075 Disruptions since January 2007 Mo-99/Tc-99m Supply Shortages Jun 1997 NRU Shutdown (Strike) Jun 1997 NRU Shutdown (Strike) Nov 2005 – Apr 2006 Covidien Tc-99 Production Shutdown (Generator Recall) Nov 2005 – Apr 2006 Covidien Tc-99 Production Shutdown (Generator Recall) Jan 2007 – Oct 2008 HIFAR Shutdown (OPAL Production Delayed) Jan 2007 – Oct 2008 HIFAR Shutdown (OPAL Production Delayed) Nov – Dec 2007 & May 2009 – Present NRU Shutdowns Nov – Dec 2007 & May 2009 – Present NRU Shutdowns Feb – Mar 2002 HFR Shutdown (Weld Defect) Feb – Mar 2002 HFR Shutdown (Weld Defect) May 2006 FRJ-2 Shutdown (permanent) May 2006 FRJ-2 Shutdown (permanent) Mar – Apr 2007 Convidien Tc-99 Production shutdown (generator recall) Mar – Apr 2007 Convidien Tc-99 Production shutdown (generator recall) Aug 2008 – Feb 2009 HFR Shutdown (Gas Leak) Aug 2008 – Feb 2009 HFR Shutdown (Gas Leak) Aug – Nov 2008 IRE Bulk Mo-99 Processing Shutdown (Unexpected Emission) Aug – Nov 2008 IRE Bulk Mo-99 Processing Shutdown (Unexpected Emission) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1995 Strike of Canadian Air-flight 1995 Strike of Canadian Air-flight

19.  Global Supply Shortage of Mo-99 - Shutdown of NRU reactor at 2008.12.05 due to the leakage of H-3 - Canada getting out of RI business in 2016  News for Canada getting out of business  News for Supply Shortage of RI medicine Mo-99/Tc-99m Supply Shortages

20. Analysis of Previous Shortages  The causes for shortages can have various origins.  They are independent from the radioisotope production and supply chain (e.g., due to geographical, geo-political or economic reasons).  Most situations of shortages are unpredictable.  They seem to become more frequent and more severe; this is not completely surprising considering the age of concerned nuclear reactors.

21. CountryName ArgentinaRA-3 AustraliaOPAL USAMURR FranceJHR CountryName BelgiumMYRRAH* NetherlandsPALLAS* USAB&W* CountryName ChinaCARR&CFER IndiaDhruva EgyptETRR-2 IndonesiaGAS – MPR KoreaHANARO GermanyFRM II Candidates for Significant Global Capacity Increase Potential Availability : 2010-2016 Candidates for Replacement Capacity Potential Availability : After 2015 Candidates for Potential Small Increased Capacity to Serve Regional Markets Potential Availability : After 2015 * Currently conceptual Additional possible production from non-reactor sources (accelerators) and from small research reactors : Will Take Time to Develop : Not Effective for Commercial Production New Radioisotope Supply Options

22. World Shortage of Tc-99m Supply World Shortage of Tc-99m Supply Construction of a New Reactor is an Unique Alternative Solution Current Issues World-wide Problems Raised on Security of Radioisotope Supply in Korea Problems Raised on Security of Radioisotope Supply in Korea News about “NRU Reactor Lockdown in 2016” News of “Frequent Shutdown of Major RI Production Reactors” ► Arising Global Shortage of Mo-99 Supply High Dependency of Radioisotope Production from Foreign Countries No Solution on Managing the Balance of Supply and Demand as well as the Raised Radioisotope Price Shortage of Tc-99m Supply in Korea Frequent Shutdown of Major Mo-99 Production Reactors Occurrence of Diagnostic Failure Due to the Shortage of Tc-99m Necessity of New Reactor Construction

23. Construction Plan

24.  Facilities  Research Reactor  Isotope Production Facilities  Fission Mo Production Facilities  Neutron Irradiation Facility  Radioactive Waste Disposal Facility  Reactor Outline  Construction Purpose - Medical and Industrial Radioisotope Production - Neutron Irradiation Service  Basic Reactor Characteristics - Land Scale of Research Reactor : 130,000 m 2 (Including EAB) - Reactor Power : 20 MW th (Thermal Flux : Over 3 ⅹ 10 14 n/cm 2 s ) - Design Lifetime: > 50 year - Nuclear Fuel : 20% Low Enriched Uranium - Fission Mo Target : Thin Uranium Foil Using LEU New Research Reactor Overview  Location of Construction Site of New Research Reactor Gijang, Busan

25. Specifications of New Research Reactor (Currently Planned) ConsiderationsDesign Requirements Reactor Power ▶ 20 MW th Max. Neutron Flux ▶ > 3 ⅹ 10 14 n/s ㆍ cm 2 Distribution of Neutron Flux ▶ Uniform Distribution (within ± 25% ) Nuclear Fuel ▶ U 3 Si 2 or U-Mo ▶ Discharged Burnup > 60% Reflector ▶ Beryllium Operation Cycle ▶ Cycle Length > 28 Days Designed Lifetime ▶ > 50 Years Reactor Safety ▶ Negative Reactivity Coefficient Coolant and Reactor Cooling ▶ H 2 O (Upward or Downward) ▶ Passive Safety System: Natural Convection Cooling Reactor Protection System ▶ Falling down by the Gravity ▶ Independent 2 nd Protection System Reactor Tank ▶ Reactor Tank Isolation (at the Accident) ▶ Spent Fuel Storage Cavity(Considering the Reactor Lifetime) Reactor Building ▶ Confinement (Considering the OBE and SSE) Irradiation Facility ▶ Vertical Irradiation Hole: NTD, RI Production, Material Analysis… ▶ Flux Trap: in Core (Fast and Thermal Neutron Flux)

26. KAERI ▪ Management Academic & Research Institute ▪ Design Advise Government and Regulation Agencies ▪ Budget & Permission KAERI Design of Nuclear Fuel Design of Reactor and Primary System Test Operation Engineering Industries Design of Sub-system Overall Design of Reactor Building Construction Industries Construction Purchase of Sub-machinery Heavy Industries Design and Manufacture of Reactor Vessel Manufactures of Sub-machinery Operating System of New Research Reactor Liable Operation by Some Specialists (Reactor, Irradiation Facility…) RI Production Facilities Operated by Private Enterprises Liable Operation by Some Specialists (Reactor, Irradiation Facility…) RI Production Facilities Operated by Private Enterprises Operating Method Composition of Experienced and Beginning Workers Training Course for 1 Year Composition of Experienced and Beginning Workers Training Course for 1 Year Operating Manpower

27. Economic Efficiency of New Reactor Ouput (Ci/Year) Added Value (Hundred Million Won/Year) Estimation Basis 1) (Thousand Won/Ci) Raw Material Complete Product Mo-99100,000360936 -Diluted Solution: 360 -Generator: 936 I-131 2) 2,0007.436 -Diluted Solution: 37 -Capsule: 1,800 I-1251003.6- -Diluted Solution: 3,600 I-125400,0001484 -Raw Material: 3.6 -Source: 21 Total502,1003851,056  Estimated Output of Major Radioisotopes 1) Domestic Price at Present, Exchange Rate: 1.2 (Thousand Won/$) 2) Considering Domestic Demand  Main Products from New Research Reactor: RI and Neutron Irradiation Service (NTD)  Lifetime of Research Reactor: 50 Year  2009 Constant Price  Assumption for Evaluating Economic Efficiency Expected Effectiveness basis on Total Production (Hundred Million Won) Expected Effectiveness basis on Added Value (Hundred Million Won) Radioisotope Supply102,03033,022 Neutron Irradiation Service (NTD)6,8003,707 Total108,83036,729

28. Requirements for the Construction of New Research Reactor  KAERI needs a experience in development of several key technologies. 1. Design and Manufacturing Technology of Planar Type Nuclear Fuel. 2. Analysis Data for Thermal Hydraulic Behavior. 3. New Type of CRDM.  Planar Type Nuclear Fuel  New CRDM Layout

29. Transparent Project Progress Emphasis on Positive Effect to the Regional Economy New Research Reactor RI Production Facilities Utilization of Neutron Irradiation Private Companies for Using New Reactor Fission Mo-99 Production by using LEU Target Separation & Collection Efficiency of Useful RIs in Radioactive Wastes Production and Safety Evaluation of Medical RI Utilization of Neutron Irradiation Requirements for the Construction of New Research Reactor

30. Conclusions

31. SUMMARY  Local government (Pusan) will provide the construction site of research reactor without cost (~ 130,000 m 2 ).  New research reactor and additional facilities (RI production and NTD) will be constructed from 2011 to 2015, through the ~ $220+α million dollars Investment.  The Preliminary Feasibility Analysis for new research reactor will be carried out by the end of 2010.  Will provide a chance to solve future RI supply shortages in domestic and global market.