business plan storage units

How to Create a Self-Storage Business Plan [Plus a Free Template!]

By the end of 2020, roughly 4.35 million hopeful individuals had filed new business applications . 

Perhaps the motivation was the loss of jobs or that people were fed up with the traditional 9-5 gig. Whatever the case, entrepreneurship has been a popular theme lately. 

Many new business owners opted to pursue a real estate investment, specifically a self-storage business. For those of you on this path, let’s discuss creating a self-storage business plan and how a few purposeful decisions can catapult your business to the forefront. 

It starts with a solid self-storage business plan.

Developing a business plan

Before you can start creating your business plan, you need to do some market research first. Start by relying on others’ history and experience. Do lots of market research. Network and learn from other marketing strategies. Attend an industry trade show. Diligently learn the ins and outs of running a small business. 

Start to hone in on the details as you begin to formulate your plan. For example, , are you building or renovating your own potential storage space? You’ll need to consider the zoning in your chosen area, and contemplate the land cost and interest rate from a lender or two. In terms of marketing strategies, will construction costs or developmental costs be worth the initial investment? Thinking through these aspects with some “back of the napkin” math early on will help you as you start to formalize your business plan

Self-storage business plan template

Putting the vision for your self-storage business to paper is important. Not only will it help you develop a roadmap for all the things you need to do to make your business dreams a reality, but it will allow you to easily share your vision with others. This is necessary if you want to bring in funding partners or borrow money for a lender.

Download a business plan template and start drafting your own self-storage business plan. Dive deep into a recent market analysis to determine any possible cash flow outcomes. Understand that your first year as a startup might be your most challenging. Read various feasibility studies, and talk to your peers in the industry. 

Your business plan should look at least two years out into the future. Plan for different scenarios in regards to your return on investment projections. Consider your returns under a best case scenario and a worst case scenario, as well as a conservative median projection.

Components of a self-storage business plan

Aside from the initial planning phase, remember to consider the operational logistics it will take to run this business. Fortunately, self-storage business investments are desirable because of the traditionally low operating expenses. 

Make sure your business plan includes these components:

Executive summary

Business description, market research and strategy, management and personnel, financial reporting documents.

An executive summary is a brief overview of your business. Think of it as the first thing you would tell someone about your business in a conversation. For example, an executive summary for a self-storage business might start something like this:

“The purpose of this business is to develop and operate a 100-unit facility on a parcel of land outside of Colorado Springs, Colorado.”

Or, like this:

“This venture seeks to find and acquire value-add self-storage facilities in secondary markets in the Southeast. The business will modernize and update the facilities with the latest technologies to increase their profitability over the next two years.”

An executive summary should go on to summarize and highlight key elements from your business plan, such as total costs and projected revenue.

Everything You Need to Know About How to Start a Self-Storage Business

What kind of business will you be: sole proprietor, LLC, C- or S-corporation?

Here, you can describe the details of how your self-storage business will operate. Beyond your legal status, cover the operational details of your business such as branding, services offered and projected expenses.

Businesses are more tech-enabled than ever before, with easy-to-navigate websites , advanced phone systems, user-friendly apps and online payment services . Of course, these things aren’t always necessary to achieve success; however, having a few tech-powered options will put you ahead of the game. Consider how you will use these technologies sooner, rather than later.

Also consider things like your hiring plans, insurance needs , and maintenance procedures. Include additional revenue sources besides self-storage rents, such as sales of tenant insurance or moving supplies. 

Remember all that market research you did on the self-storage industry? Lay out your most relevant findings and how they support your self-storage business idea in this part of your business plan. Examine the demographics and supply and demand story of your target market. For example, if individuals need RV storage, consider offering that option. Decide how you will make money and attract new renters (i.e., social media , content marketing, etc.).

Like any industry, the self-storage industry has a unique ebb and flow to it. Knowing these trends will help you execute a more successful self-storage project.

This is the who’s who of your self-storage business. Discuss the experience, qualifications and duties of the executive team, as well as additional employees that you have or need to hire to execute your plan.

Is your self-storage business plan financially feasible? Here is where you demonstrate that it is, by laying out details of your financial situation. What are your assets and liabilities? Will you have debt service?

This section should include the projected profit and loss, balance sheet and cash flow for your business for the next two to three years.

Expect the unexpected

Once your business is up and running, you will no doubt encounter challenges and situations that your plan did not anticipate. However, a strong business plan will greatly increase your chances that your business will succeed. If you are looking to do more with your business, Storable offers a host of technology solutions to help your self-storage operation thrive in a competitive environment.

Financing Options for Self-Storage Businesses

Resolve your questions about how to get financing for your self storage business. Keep Reading

Is a Self-Storage Business Profitable?

Is owning a self-storage business profitable? Find out how an investment in a self storage facility can turn into a lucrative business for you. Keep Reading

How to Buy a Self-Storage Facility

Thinking about buying a self-storage facility? Here is what you need to know before starting your search. Keep Reading

Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

You’ve come to the right place to create your Self Storage business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Self Storage companies.

Below is a template to help you create each section of a storage unit business plan.

Executive Summary

Business overview.

Secure Self Storage is a startup self storage company located in Nashville, Tennessee. The company is founded by Bill Williams, an experienced self storage manager who has been working in the self storage industry for over a decade. Bill has recently earned a bachelor’s degree in Business Administration. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to open his own company, Secure Self Storage. Bill plans on recruiting a team of highly qualified professionals to help manage the day to day responsibilities of running a successful self storage facility – marketing, security, maintenance, accounting, and rent collection.

Secure Self Storage will provide a convenient, safe, and secure self storage solution for anyone in the Nashville area who needs to store their belongings. Secure will ensure that every storage need of the customer is being met. Secure Self Storage will be the ultimate choice in Nashville for self storage solutions while being the best-priced company in the area.

Product Offering

The following are the self storage solutions that Secure Self Storage will provide:

• Small Storage Units (5×5)
• Medium Storage Units (10×10)
• Large Storage Units (10×25)
• Vehicle Storage Units
• Temperature Controlled Units
• Extra Security Units
• Pickup & Delivery Services
• Disposal Services

Customer Focus

Secure Self Storage will target adults 18 years old and over in Nashville who need a storage unit for any reason such as moving, decluttering, doing home renovations, or those who need storage for business, college, or to store an automobile. No matter the customer, Secure Self Storage will deliver the best communication, service, and security.

Management Team

Secure Self Storage will be owned and operated by Bill Williams. Bill has a bachelor’s degree in Business Administration and has been working as a self storage manager for another local storage facility for over a decade. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to venture out and open his own self storage company. Bill will be the owner and manager of Secure Self Storage.

Bill has recruited his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies, to be the financial manager. Ken will help manage all of the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Success Factors

Secure Self Storage will be able to achieve success by offering the following competitive advantages:

• Self storage units are easily accessible 24 hours a day, temperature controlled, and have the latest security technology to keep customers’ belongings safe and secure.
• On-site security guards are deployed 24 hours a day to ensure belongings, customers, and employees are safe at all times.
• On-site staff to answer questions, help customers, and keep the facility clean.

Financial Highlights

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Self storage facility build-out: $50,000
• Equipment, supplies, and materials: $20,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $15,000

The following graph below outlines the pro forma financial projections for Secure Self Storage.

Company Overview

Who is secure self storage.

Secure Self Storage is a newly established high security self storage company in Nashville, Tennessee. Secure Self Storage will be the most convenient, secure, and customer-focused choice for storage unit renters in Nashville. Secure will provide a variety of self storage solutions for anyone looking for a secure storage option. The company’s customer-centric approach will include 24/7 on-site security and customer service staff, the latest security technology, and temperature controlled units.

Secure Self Storage will give customers peace of mind that their belongings are secure. The management team is composed of experienced professionals including business managers, security officers, and maintenance technicians. Secure Self Storage removes all headaches of the self storage unit renter and ensures all issues are taken care off expeditiously while delivering the best customer service.

Secure Self Storage History

Secure Self Storage is owned and operated by Bill Williams, an experienced self storage manager who has a bachelor’s degree in Business Administration from the University of Tennessee. Bill has worked for a local self storage company in Nashville for over a decade. Bill’s tenure with the self storage company combined with his education has given him the skills and knowledge required to venture out on his own and start his own company.

Since incorporation, Secure Self Storage has achieved the following milestones:

• Registered Secure Self Storage, LLC to transact business in the state of Tennessee.
• Has scouted a few location options and reached out to the owners for more information.
• Reached out to numerous contacts to include former customers to let them know about the upcoming facility.
• Began recruiting a staff of accountants, maintenance workers, security, and other facility personnel to work at Secure Self Storage.

Secure Self Storage Services

Industry analysis.

The United States self storage industry generates an estimated $39.5B in annual revenue with over 49,000 storage facilities throughout the country. The total rentable self storage space is approximately 1.9B square feet. An estimated 10.6% of U.S. households are currently renting a self storage unit. The average self storage space used per person is 5.9 square feet. The average monthly cost to rent a self storage unit is $90.

Self storage construction spending has nearly doubled in the past five years. According to the Self Storage Almanac, the market is highly fragmented with 31% of space being owned by six large public companies, 16% being owned by the next top 94 companies, and 53% being owned by small businesses. Self storage industry operators have the potential to achieve highly lucrative businesses if they manage them smartly. The average self storage company’s profit margin is around 11 percent, which is much higher than many other small businesses in other industries that are often closer to 3-5 percent.

Customer Analysis

Demographic profile of target market.

Secure Self Storage will target adults 18 years of age and older requiring self storage services in Nashville, Tennessee. The company will target people in need of storage space for a variety of reasons including moving, renovating, college, business, or to store a vehicle.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Secure will primarily target the following customer profiles:

• People who are in the process of moving
• People who need storage space for a vehicle
• People who need storage for business
• People who need storage for college
• People who are renovating their homes

Competitive Analysis

Direct and indirect competitors.

Secure Self Storage will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Nashville Self Storage

Nashville Self Storage is a temperature controlled self storage facility operating in Nashville, Tennessee. The facility has 400 units of varying sizes from 2×5 up to 30×30. Nashville Self Storage uses state of the art security systems with cameras throughout the facility to keep its patrons and their belongings safe and secure. The company currently has one facility with plans to open a second location in the next few months. The owners of Nashville Self Storage have been working in the storage industry for over 20 years and pride themselves on providing exceptional customer service.  

ALottaStuff Self Storage

ALottaStuff Self Storage is a Nashville-based self storage facility that provides outstanding service and storage solutions for its customers. ALottaStuff Self Storage takes the risk out of leaving your valuables in an unsecure storage facility by providing 24/7 secure monitoring of all of its units. They have temperature controlled units available in addition to non-temperature controlled units. Customers can depend on ALottaStuff Self Storage to handle their belongings with the best of care. The company provides pickup and delivery services for an extra fee.  

In-Boxes Self Storage

In-Boxes Self Storage is a trusted Nashville self storage company that provides superior service to customers in Nashville and the surrounding areas. They are able to provide a convenient storage solution for a wide range of customers with multiple locations throughout the city. In-Boxes Self Storage offers low prices for do-it-yourself storage facilities. Drive-up units are available for a flat monthly fee and indoor temperature controlled units are available for an additional charge. In-Boxes Self Storage maintains a clean, secure atmosphere with friendly staff available during office hours to assist with customers’ storage needs.

Competitive Advantage

Secure Self Storage will be able to offer the following advantages over their competition:

• On-site staff are available to answer questions, help customers, and keep the facility clean at all times.

Marketing Plan

Brand & value proposition.

Secure Self Storage will offer the unique value proposition to its customers:

• Experienced team of security professionals, customer service associates, and maintenance staff on-site 24/7 to help customers and keep the facilities clean, safe, and secure.
• Unbeatable pricing to its clients – Secure Self Storage offers competitive pricing with promotions and discounts for new and returning customers.

Promotions Strategy

The promotions strategy for Secure Self Storage is as follows:

Word of Mouth/Referrals

Bill Williams has built rapport with an extensive list of customers over the years by providing exceptional service during his tenure as a self storage manager. Many have communicated to Bill that they referred their friends to the storage facility because they were happy with the service he was providing. Once Bill advised them he was leaving to open his own self storage business, many contacts have committed to help spread the word of Secure Self Storage.

Professional Associations

Secure Self Storage will become a member of professional associations such as the Self Storage Association, the Nashville Self Storage Association, and Inside Self Storage. Bill will attend industry expos and events to promote the company.

Print Advertising

Secure Self Storage will have print ads and flyers made for newspapers, magazines, direct mailers, and to post around the city and hand out at industry events.

Website & Content Marketing

Secure Self Storage will create and maintain an easy to navigate, well organized, informative, website that will list all of the available storage options and pricing. The website will also contain an informative blog with storage related posts.

SEO Marketing

The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Nashville self storage” or “self storage near me”, Secure Self Storage will be listed at the top of the search results.

Social Media Marketing

Secure Self Storage will create and maintain an active presence across social media platforms including LinkedIn, Facebook, Instagram, Twitter, TikTok, and YouTube.

The pricing of Secure Self Storage will be competitive so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Secure Self Storage.

Operation Functions:

• Bill Williams will be the Owner and Manager of the company. He will oversee all staff and operations. Bill has spent the past year recruiting the following staff:
• Ken Smith – Financial Manager who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• Shannon Bowman – Marketing Manager who will provide all sales and marketing initiatives for Secure Self Storage including management of the company website and social media accounts.
• Benjamin Stephens – Maintenance Manager who will oversee all maintenance of the facility.
• Micheal Brown – Head of Security who will provide all security for the facility and oversee a small team of on-site security guards.

Milestones:

Secure Self Storage will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease facility space.

8/15/2022 – Finalize personnel and staff employment contracts for the management team.

9/1/2022 – Begin build out of the facility.

9/15/2022 – Begin networking and marketing campaign.

9/22/2022 – Begin moving into the Secure Self Storage facility.

10/1/2022 – Secure Self Storage opens its facility for business.

Bill has recruited the help of his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies. Ken will help manage the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Financial Plan

Key revenue & costs.

The revenue drivers for Secure Self Storage are the self storage fees that will be charged to the customers for their services. The company will charge a monthly fee for unit rentals. The fee will vary depending on the size of the unit.

The cost drivers will be the overhead costs required in order to staff a self storage facility. The expenses will be the payroll cost, utilities, maintenance costs, and marketing materials.

Funding Requirements and Use of Funds

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of occupied units per month: 200 out of the total 500 units (40%)
• Average fees per month: $30,000 (average $150.00 per medium sized unit)
• Annual Lease on Facility: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, self storage business plan faqs, what is a self storage business plan.

A self storage business plan is a plan to start and/or grow your self storage business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your self storage business plan using our Self Storage Business Plan Template here .

What are the Main Types of Self Storage Businesses?

There are a number of different kinds of self storage business , some examples include: Portable container, Climate controlled storage, and Vehicle storage.

How Do You Get Funding for Your Self Storage Business Plan?

Self storage businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Self Storage Business?

Starting a self storage business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Self Storage Business Plan - The first step in starting a business is to create a storage facility business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your self storage business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your self storage business is in compliance with local laws.

3. Register Your Self Storage Business - Once you have chosen a legal structure, the next step is to register your self storage business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your self storage business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Self Storage Equipment & Supplies - In order to start your self storage business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your self storage business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful self storage business:

• How to Start a Self Storage Business

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Self-Storage Business Plan

Start your own self-storage business plan

Westbury Storage, Inc.

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

This storage business plan describes a proposed self-storage facility to be established in Westbury, New York involving the conversion of an existing building. Total project costs are estimated at $1,054,487 including purchase price, conversion costs, and pre-opening expenses (see section on Start-up Summary). Based on current and projected strong demand for self-storage units, rental revenue is projected to grow rapidly as units fill up from the first year’s target of $320,000 to $684,000 by year three.

After achieving experience and success in their present self-storage facility in Plainview, New York the principals of this proposed project plan to take advantage of the strong demand in the self-storage industry to achieve a major presence in Westbury. The ownership connection with Stote Moving will assist in gaining full occupancy quickly. Goals have been set to rent 50% of the proposed 300 unit spaces within the first six months of Year 1. An additional 25% will be rented in the second half of Year 1, with the remainder to be filled in Year 2.

The mission of the principals is to serve the Long Island community’s local residential and commercial storage and moving needs.

Keys to Success

The keys to success in the self-storage business are:

• To be able to adapt as storage and market needs change.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Westbury Storage is a start-up project to be located in Westbury. The owners are experienced in the moving and storage field, owning a well-established moving company (Stote Movers) and a successful self-storage facility in nearby Plainview (Plainview Storage). The building to be purchased for this project is a large brick building originally constructed as a bleachers around 1910. This building as well as surrounding buildings, were connected with the now dying leather industry which flourished a few decades ago. A large building of similar size located next door and connected by a walk bridge has already been converted successfully and is operating well. The Westbury Storage building contains three floors of heavy-duty wood and steel beam construction ideally suited to the planned purpose of self-storage units. The building is heated by oil. One of the two elevator shafts will be the home for a new over-sized passenger elevator suitable for transporting storage contents from the ground level to the units on the second and third floors. A large separate parking lot area comes with the building but will not be needed for this project. This lot could be sold or could be the site of additional future storage units to be set up using one of several one-story steel storage systems.

It is estimated that, with purchase of the building taking place in June of this year, the conversion into storage units could be completed and ready for occupancy by the end of the year. Demand for the units is strong, as evidenced by the market survey of existing self-storage facilities. Bank financing for 70% of the project costs is expected with the remainder supplied by shareholder equity.

Company Ownership

The company will be incorporated as an S Corporation, and will be owned by three individuals: Roger Black, Sebastian Stote and Daley Thompson. Each will own 1/3 of the stock. Roger Black and Sebastian Stote are 50-50 owners of Plainview Storage which is a 110 unit self-storage facility converted in 1993 from a former piano factory. All units are fully rented. Sebastian Stote is owner of Stote Movers, which is a family business providing residential and commercial moving since 1917. In addition to being the source of many of the rentals at Plainview Storage, Stote Movers has 52 filled 45-foot trailers located in Roslyn-by-the-Sea. These trailers contain customers’ stored goods pending delivery at a new location.

Company Locations and Facilities

Westbury Storage will be located in Westbury, in a central location about 1/2 mile from the monument in the center of Westbury. The owners’ present self-storage facilities are located at in Plainview with further storage capacity in 52 trailers in Roslyn.

Start-up Summary

Advertising and promotion will rely heavily ads in the Yellow Pages, as well as initial local newspaper ads at the time of opening. We are assuming three directories for Yellow Pages ads with 1/8th page ads costing $165/month each. The ads in the local papers ( Springfield News and community newspapers) are estimated to cost $300 monthly for the first year only. They will be reduced in the second year to half this amount and eliminated in the third year.

Property taxes ($11,946) are projected at the actual rate of the last tax year. Significant increases are not expected.

Building maintenance is normally a very substantial item on a building of this size built in 1910. However, the roof has been completely redone fairly recently and the basic structure of the building is very robust. The start-up costs reflect adequate amounts to ready the building for opening in good order. Also, it should be noted that expenditures for building maintenance would need to be larger if the building were being used for offices rather than storage. We assume an annual amount for maintenance equal to 5% of the purchase price which works out to $27,500.

• The total for utilities is estimated to be $900 monthly.

Insurance: Property and Liability Insurance amounted to $15,000 annually for the present tenant. We’ll assume the same annual cost.

Telephone: Most of the telephone bill will be the charges for the Yellow Pages ads. These costs are already included in advertising and promotion. We assume the telephone bill to amount to $150/month.

Bookkeeping/auditors/legal: Bookkeeping and billing will be handled by the same system used at Plainview Storage and charged at a rate of $300 per month. Auditor charges will run about $4,000 annually.

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Competitive Comparison

All self-storage facilities that could be found in Westbury or the area bordering Westbury were surveyed with the following results:

Prices average at $1.20 per sq. ft. per month. Mean price is closer to $1.40.

Market Analysis Summary how to do a market analysis for your business plan.">

In a similar split experienced by management’s existing storage facilities, Westbury Storage is expecting to rent 70% of its available units to non-commercial renters and the remaining 30% to the commercial sector of the market. A total of 300 self-storage units of various sizes will be created and offered for rent by Westbury Storage in a central location in downtown Westbury. The present supply of these units is insufficient to meet the demand as evidenced by a survey of all self-storage facilities within easy reach of Westbury residents. The price realized by these existing units is more than double the national average.

Market Segmentation

Self-storage units are needed by residential customers for storage of personal items as well as by commercial customers for storage of stock. It is envisaged that 70% of the planned self-storage units will be taken up by the residential segment of the market and the remaining 30% will be directed toward the commercial segment. This split is expected based on the existing customers of management’s present self-storage facilities in Plainview. The commercial segment are small businesses, many of which are run out of people’s homes such as an interior designer who needs space to store hundreds of expensive sample fabric books, or a retail shop with inadequate on premises storage.

The market research shows that the annual market potential for the commercial self-storage service in the Westbury area is about 10,000 customers. As stated above, these are mostly small businesses. The residential segment potential is substantially higher at 150,000 customers per year and is based on the Self Storage Association’s assumption that 40% to 55% of population has used self-storage facilities.  This estimate includes individuals who need storage facilities due to moving arrangements or to store excess household property. Both of the market segments are expected to grow at a 5% annual rate. The table and chart below outline the market potential for the both customer segments.

Target Market Segment Strategy

Since the demand for local self-storage services substantially exceeds the local supply, Westbury Storage will simultaneously market its services to the two major customer segments–residential customers and small business customers. The company will not pursue large business segment due to the limited service scope it can provide to such customers at the existing facilities.

The market analysis shows that local self-storage rates are substantially higher than the national averages. Westbury Storage will position itself to the both customer segments as a conveniently located and affordable quality self-storage facility. Both customer segments will be effectively reached via the local Yellow Pages ads and through the referrals of Stote Movers owned by one of the Westbury Storage’s co-owners.

Market Needs

Customer needs in the self-storage industry have certain similarity across different market segments. The underlying need is for a reliable, safe, dry and accessible self-storage facility. Due to the overwhelming demand, customers are less price sensitive and consider convenient location as the major buying decision criterion.

Residential customers use self-storage facilities to temporarily store their property while moving to a new location. This need originates in the mobility of the American population and the affordability of rental accommodations. Such customers usually rent 25 to 100 square feet depending on the size of their household and they rent on a weekly or monthly basis. The other cluster of residential customers rents self-storage facilities for longer periods to keep their oversize property like boats or other equipment that either does not fit in their garages or is not used on a constant basis.

Small business customer segment requires self-storage facilities to temporarily store their stock or merchandise. These customers may use the storage facilities more often than residential customers and they benefit from convenient loading areas, extended operating hours and better equiped storage units of bigger size.

Service Business Analysis

According to an article in the November 15th issue of Inside Self-storage the national industry average rental income generated by self-storage units is $6.00 per square foot per year, or $.50/sq. ft. per month. In the market to be served by Westbury Storage the average storage rate (see section on Competitive Comparison) is more than double this amount. Washington Storage in Westbury is a typical example. They charge $50/month for an 8X6 ft unit which works out to $12.50 per sq. ft. per year. A 9X9 unit on the second floor also rents for this same amount only because there is no elevator. All of their units are fully rented! All units within the area were surveyed. The average rate is $1.20/sq. ft. per month ($14.40 per year) and the mean was closer to $1.40/sq. ft. per month ($16.80 per year). The story concerning availability was uniform. Either the facility was full or only had one or two available units to chose from. E-Z Mini Storage in S. Centreport said, “There’s some turn-over at the end of every month. Leave your name and we will call you when one becomes vacant.” Extra Space Storage in Springfield said, “We need one week advanced notice.” North Shore Self-Storage said, “We have nothing available on the ground floor.” U-Haul reported, “We have one small unit available, otherwise we are all full.”

The self-storage industry really only started in the late 1960’s when a few far-sighted people recognized the growing need for residential and commercial storage. The industry has doubled in size each decade. Returns on investment have been very impressive–often twice that of other forms of real estate investment. The reasons for this have been the mobile society, the tendency to live in rental apartments, and the general increase in the accumulation of property, especially leisure articles such as skis, wind-surfers, exercise equipment, etc.

It could be argued that the higher than national average rates enjoyed by local self-storage facilities may not continue indefinitely, but there is no indication of any downward pressure at this time. It should also be pointed out that during an economic down-turn the self-storage industry does not suffer to the extent that other industries suffer.

Should the supply of self-storage units begin to outstrip demand, Westbury Storage should be well positioned to deal with the competition due to its ability to offer heated units (nearly all competing units are unheated) and its ability to supply electric outlets to individual units (for hobby/workshop purposes).

Business Participants

Although there are a few nation-wide players in the self-storage market, the industry is still fairly dispersed in which many small companies take part. (See the section on Competitive Analysis for a complete listing.)

Competition and Buying Patterns

Convenience is probably the single most import factor in the decision of where to rent a self-storage unit. For example, Hicksville and Huntington have no self-storage facilities. Residents choose to rent one in a nearby town probably based on proximity to the route taken by the renter to and from work. If no units are available nearby, then renters will travel further afield. Units on the ground floor are favored, especially if no elevator is available.

Main Competitors

See the section on Competitive Comparison for names of competitors. In the present market situation, competition plays a very weak role.

Strategy and Implementation Summary

The sales and marketing strategy is fairly simple by virtue of the fact that self-storage facilities are in short supply. Westbury Storage will simply have to inform the public of its existence by advertising in local newspapers, and by placing Yellow Pages ads.

Competitive Edge

Although the current local demand exceeds the supply and Westbury Storage will have no problems fully utilizing its capacity, the market situation may change in the future. The company will fully utilize its management’s seasoned experience in the storage business in order to establish a strong foothold in the local community. This will be reached by providing excellent service and offering extra service features like the heated and well-lit rental units, which will supplement the great location of the storage facility.

Sales Strategy

Most inquiries will come through the Yellow Pages ads. Proper telephone manners and professional handling of on-site inquiries are essential. Even though there is an excess of demand over supply, an unfriendly manager or clumsiness over the telephone will cause needless lost sales.

As is the case with the owners’ present self-storage facility in Plainview, many sales are directed through Stote Movers, who are in constant contact with people on the move and, therefore are most likely to require temporary storage.

Sales Forecast

Due to the fact that demand has been outstripping supply in this market, Westbury Storage may well be able to rent out all of its new units within the first year of operation. Prices paid for self-storage units reflect this strong market demand. The ground floor units will rent at $1.40 per sq. ft. per month and the upper floors, served by an over-sized elevator will rent for $1.20/sq. ft. per month. It is assumed that half of the units will rent in the first six months of operation. The second half of 1999 will see a further 25% of the total space rented, leaving the final 25% to be reached in the year 2000. Within these time spans, the growth, for projection purposes, will be assumed to be straight line, i.e. the first 50% of the total space will be reached in equal monthly increments during the first six months, and so forth.

The building measures 240 ft. X 80 ft. A section at one end (40′ X 80′ =3,200 sq. ft. per floor) will be reserved for future offices. This leaves total space dedicated to self-storage units of 48,000 sq. ft. (16,000 per floor). Some space is lost when the partitioning is done. Floor plan “D” suggests a way to partition an area 200 ft. X 40 ft. Doubled, this is exactly the space available in the Westbury building after deducting the office area. This 16,000 sq. ft. (200′ X 40′ X 2′) would be reduced somewhat to allow walkway/passages on the sides. So instead of 16,000 sq. ft. of rental space per floor, we would end up with about 15,000 sq. ft. Total self-storage net rentable space would be 45,000 sq. ft. The 15,000 sq. ft. on the ground floor would rent for $21,000 monthly and each of the other floors would rent for $18,000 each on a monthly basis.

Sales for the first month would be $4,750 (50% of total $57,000 divided by 6). The second month would have $9,500 in sales, etc.

Many self-storage companies charge administration fees to first-time customers. Deposits are also not uncommon. In addition to these sources of income, the sale of certain related items such as cardboard boxes, tape, packing materials, storage containers, plastic mattress covers, etc. can be substantial. However, for projection purposes, it is assumed that income from these sources will wash out any credit losses.

Strategic Alliances

An important strategic alliance is the common ownership connection to Stote Movers. By virtue of its contact with people changing addresses, Stote Movers is in a position to direct a lot of storage business to Westbury Storage.

The following table shows the milestones that Westbury Storage has established.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of Westbury Storage will rest with Roger Black and Sebastian Stote, both of whom are successful in the moving and self-storage industries.

Personnel Plan

Operating hours are planned to be 7 a.m. to 7 p.m. Monday through Friday and 9 a.m. to 5 p.m. on Saturdays. Westbury Storage will be closed on Sundays.

The manager will work a normal 40 hour week at an annual salary of $35,000. A maintenance man will be employed at a salary of $24,000. A night watchman will be employed at a salary of $24,000.

Financial Plan investor-ready personnel plan .">

A commercial loan needs to be negotiated to finance approximately 70% of the total project costs. A 15-year mortgage will be applied for with an 8.5% interest rate. First drawdown upon agreement of the seller and buyer concerning the terms of sale of the building. Last drawdown around the end of the year when all conversion to self-storage units should be completed. First repayment of principle is planned in April of 1999 with monthly installments of interest and principle to continue until the loan is fully repaid in 2013.

Important Assumptions

Key financial indicators.

The following chart shows the benchmarks for Westbury.

Break-even Analysis

The following table and chart show our Break-even Analysis.

Projected Profit and Loss

Property taxes ($11,946) are projected at the actual rate of the tax year 7/1/96-6/30/97. Significant increases are not expected.

Projected Cash Flow

The following chart and table represent the cash flow for Westbury Storage.

Projected Balance Sheet

The following table presents the balance sheet for Westbury Storage.

Business Ratios

Business ratios for Westbury for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 4225, General Warehousing and Storage, are shown for comparison.

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How to Start a Self Storage Business in (2024): Step-by-Step Guide

Matthew Khalili

10 Min Read

The 44.37 billion dollars self-storage market grows prolifically as the demand for self-storage facilities has grown throughout the country.

With an average occupancy rate of 85-90%, most self-storage businesses in the US enjoy a profit margin of 11-18%. It is indeed a profitable business venture for someone ready to invest and put in some hard work.

Well, if you have made up your mind to venture into the self-storage industry you must be wondering how to start a self-storage business and turn it profitable.

Well, this guide has all your answers. It details all the essential steps that will help you set up a well-planned and legally compliant self-storage business in a hassle-free manner.

So without any further ado, let’s dive right in.

Steps to Start a Self-Storage Business

• Self-Storage Business Planning and Market Research
• Prepare your Self-Storage Business Plan
• Choose the Location for your Storage Facility
• Register Self-Storage Business
• Acquire Essential Licenses and Permits
• Insure the Self-Storage Facilities
• Open a Business Bank Account
• Calculate your Startup and Operational Costs
• Acquire the Fundings
• Build your Brand and Marketing Plan

Let’s uncover this step-by-step guide that will help you set up a legally compliant and financially planned storage business in a proper way.

1. Self-Storage Business Planning and Market Research

As the first step of starting a self-storage facility, evaluate the feasibility of your storage business idea. For this, you must gather a foundational understanding of the market by diving deep into the research.

Analyze your market area by studying its current population and projected population growth. Evaluate the competitive landscape and see if there is room for new self-storage businesses in your chosen locality or region.

Dive further deep, understanding who your ideal customer is. For instance, would you open your self-storage facility for commercial people or residential people?

An answer to this will influence many other decisions like location, size of self-storage units, storage facilities you will be offering, and your startup costs.

Further, decide whether you will operate the self-storage company on your own or hire a third-party company to oversee the management.

Once you have a rough idea of your business concept, take a step further and nail your business planning with a solid plan.

2. Prepare your Self-Storage Business Plan

Proceeding without a business plan is like aiming your shot in the dark hoping it reaches the target. Well, you sure don’t want to take that risk, especially when planning to invest millions in your self-storage business.

A realistic and credible business plan is a worthy document that will drive your business in a specific direction helping you realize your business goals and objectives. Besides, most investors won’t even pay you heed if you don’t have a business plan.

So, better start writing a credible self-storage business plan that resonates with your core objectives, mission values, goals, and business concepts.

Keep in mind that the business plan for getting an existing self-storage facility off the ground will be much different than building a new storage business. However, if we consider the fundamental components of a business plan, you must try to cover the following topics:

• Executive Summary
• Company Overview
• Industry and Market Analysis
• Self-storage products and services
• Management Team
• Self-Storage operations plan
• Marketing and sales plan
• Financial plan

Writing a business plan is taxing. It requires utmost attention to detail and precision and is time-consuming.

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3. Choose Location for your Storage Facility

Location plays a crucial role in determining the success of self-storage businesses. It’s better to start sourcing the ideal location for your storage space business ASAP!

The preliminary market research will help you identify the localities that have surging or unmet demands. For instance, the demand for self-storage facilities is high in commercial regions and densely populated residential areas.

Now, answer whether you will buy land for storage facilities or remodel an existing facility. Besides, do you plan to spread across the facilities on the same level or will you create multi-story facilities? And lastly, will you offer indoor access to the facilities or only drive-up to storage units?

Usually, the self-storage facilities are spread across a 10,000-100,000 sq. ft. area housing nearly 500 storage units. Now, evaluate your needs and start looking for easy-to-access locations near your target market.

Take help from real estate investors to help you find the right business location. While finalizing the contract, ensure that all the legal compliances are met.

4. Register Self-Storage Business

It is essential to legally register your business with the state. While registering, you have to choose between different business entities like sole proprietorship, partnership, LLC (limited liability company), and Corporation.

Businesses in the self-storage industry can benefit greatly from registering LLCs and Corporations as their legal entity.

Further, register your self-storage business for state and federal taxes and acquire your Employer Identification Number (EIN) from the IRS portal .

EIN is a 9-digit security code unique to your self-storage business and is essential for filing taxes, registering a business bank account, applying for business credit cards, and generating payroll.  Besides, EIN can be generated for free.

5. Acquire Essential Licenses and Permits

To ensure all-around compliance, identify the permits and licenses essential for your self-storage facilities from SBA .

If you are building a self-storage facility from the ground level up, get a Certificate of occupancy (CO) ensuring that your business meets all the zoning, government, and building code requirements.

However, if you are renting an existing self-storage facility, ensure that the owner has an occupancy certificate essential for your compliant business.

Ensure that you have all the essential licenses that comply with Occupational Safety and Health Administration requirements.

While it is still a long way before you start offering your storage unit for rent,  draft the service agreement contracts highlighting the terms and conditions, payment terms, and rental time to minimize the legal dispute.

Failure to get your business legally compliant can attract fines, penalties, and sometimes permanent closure of the business. Ideally, you should avail a legal help to look after the compliances for your business.

6. Insure the Self-Storage Facilities

Just like licenses, you need insurance to ensure that your storage unit business operates safely and lawfully. Federally, business insurance is mandatory for all businesses.

Now, if there is one insurance you definitely need, it is general liability insurance. This offers general protection against injuries, thefts, and property damage- so it’s a good start for your business.

Now, if you are hiring workers to look after your storage unit business, you also need a worker’s compensation fund to cover employees’ injuries and health expenses.

Also, it is wise to get tenant protection insurance to secure the interest of prospective tenants. This can enhance the credibility of your self-storage business amongst your target audience.

Lastly, get umbrella insurance to secure your business interests on all fronts.

7. Open a Business Bank Account

Setting up a separate bank account for your storage unit business helps you protect your personal assets from business liabilities. Not only that, it also eases the bookkeeping and tax filing for your business.

With that EIN procured earlier, you can apply for a separate business bank account. While you apply for a bank account, also apply for a separate business credit card.

A credit card will build credit history for your business making it easier for you to acquire loans in the future.

8. Calculate your Startup and Operational Costs

If the financial section of your business plan is not worked out yet, it is time to calculate your startup cost and operating expenses now.

Evaluate your startup costs by making projections for different expenses. This includes accounting for land purchase, construction, permits, insurance, and much more.

While you calculate your startup costs, also consider the operating expenses for the first 3-6 months. This is a good enough time for you to reach at least break even.

Talking about self-storage operating expenses, here are a few things you should include in your startup cost calculation:

• Mortgage/ Lease payments
• Payroll expenses
• Utility bills
• Professional services bills
• Insurance payments
• Marketing and advertising

Depending on the concept, size, location, and nature of your self-storage business, you can expect to spend anywhere between $1 million-$2.5 million to start your business.

However, it is possible to start a small business with less than a million dollars if you decide to lease or buy existing storage facilities in the lower borough regions of your town.

Once you have a rough estimate of your initial capital needs, you can start making arrangements for the same.

9. Acquire the Funding

As we discussed, it’s quite expensive to start a self-storage business even on a small scale. Personal savings aren’t adequate especially when you need a million dollars for an upfront investment.

Evaluate your monetary position and determine how much funding you require to turn your idea into a successful self-storage business.

In terms of funding options, you can opt for a variety of loans. This includes SBA (small business administration)-guaranteed loans for small businesses, business loans, acquisition loans, construction loans, working capital loans, etc. Evaluate your credit standing and interest rates before choosing this mode of finance.

Additionally, you can raise capital by seeking funding from angel investors and Venture Capitalists. For a certain stake in your business, these investors will provide you with essential funding.

Apart from this, you can also choose the mode of crowdfunding and lending from friends and families to gather essential capital.

10. Build your Brand and Marketing Plan

A strong self-storage business brand is essential to build a successful and profitable business. Ideally, you should start the branding and marketing activities as the facilities start shaping up together.

Define your brand elements to put together a consistent brand image across all the platforms. Get your self-storage business website ready and create your social media accounts to grow your brand’s presence.

You want your target market to find you easily. So get the banners, freeway hoardings, and billboards ready to guide the customers to your self-storage facility.

Define different marketing strategies you will use to attract potential clients to your business. This includes streamlining your GMB (Google My Business) account, email marketing, setting up your phone system, running paid ads, content marketing, and much more.

Allocate your resources to different marketing activities and track the results to see what type of marketing brings you the most benefit.

By now you must have a thorough understanding regarding how to set up your own self-storage business. Let’s take the first step and translate your business idea into a business plan by referring to online business plan samples .

Also, ease your business planning process by using cutting-edge tools from the Upemtrics business planning app . We have financial forecasting and AI writing assistant tools to strengthen your business planning along with free resources and extensive guides to help small business startups.

So let’s turn your vision for self storage business into a reality.

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Frequently Asked Questions

How much money do you need to start a self-storage business.

The cost of starting a self-storage business right from ground level up costs anywhere between $1M-$2.5M . However, it is comparatively much cheaper to buy existing storage facilities and upscale them to meet the concepts and nature of your self-storage business idea.

Are storage businesses profitable?

Absolutely yes. The average profit margins of a self-storage unit business in the US is anywhere between 11-18% Sometimes, storage units with streamlined operations and consistent occupancy rates can manage to earn margins up to 40% as well.

Is starting a storage business a good idea?

Indeed, starting a storage business would add a prominent source of income to your financial standing. In fact, most of the storage business owners hire a third party for facility management. This way they can earn a significant passive income while working on their other business ventures. Moreover, since storage facilities are always in demand, you can stay assured of reaping high benefits by running a highly functional storage unit business.

How many storage units are there at a self-storage facility?

Considering a 10*10 square foot size for one storage unit, you can fit nearly 130-215 units in one acre of land. Generally, self-storage facilities are spread over 10,000-100,000 sq. ft. of land making room for nearly 500-600 storage units in total.

What is the average sq. ft rent in self-storage facilities?

According to Statista, the average asking rent per square foot for storage facilities in the US is $1.3. Considering a 10*10 average size per unit, per month rental of a storage unit is anywhere around $130 .

About the Author

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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How To Start a Storage Business

Our Comprehensive Guide to Launching a Profitable Self-Storage Rental Unit Business in 2023

We’re about to dive deep into the thriving, fast-paced world of the self storage business. 

Believe it or not, this under-the-radar sector of commercial real estate has been steadily growing, churning out a staggering $39 billion in annual revenue as of 2023, with the U.S. leading the charge. It’s a veritable gold rush, and it’s time you staked your claim.

So, you might be thinking, “That sounds great, but how do I start a self-storage business?”

Don’t worry, we’ve got your back.

In This Article

Flexible Pricing

Brand awareness, customer service, property selection, getting to grips with the landscape of the mini storage unit business, identifying the key drivers of demand when starting a self-storage business, licenses and permits, zoning laws, business structure, average occupancy and facility size, construction costs, technology and operations, revenues and profit margins, startup costs, financing options, establish a strong brand identity, build a robust online presence, implement a referral program, collaborate with local businesses, deciphering the average cost, implementing a pricing strategy, the most in-demand cities for self storage units, revenue generation, wrapping up: starting and running a successful self storage business – a recap, self-storage keys to success.

Adapt your storage unit prices to the ever-changing demand in your local market.

Integrate your company into the community and make sure residents know who you are!

Meet your customer’s needs to reduce turnover and increase word-of-mouth advertising.

Find land that is affordable, yet accessible. Work with a real estate agent to identify the best fit.

This comprehensive guide is packed to the brim with all the crucial information you’ll need. From breaking down financial projections to unraveling the complexities of operational strategies, and even unveiling insights from industry case studies, we’ve left no stone unturned.

After navigating through this guide, you won’t just understand the ins and outs of how to kick-start a storage business, you’ll be pumped and ready to plunge into your very own storage unit venture.

So, are you ready to turn the key and open the door to your future in the self storage business? 

Let’s hit the ground running!

Let’s flip the lid and take a peek at the vast expanse of the self-storage industry. Now, if you’re wondering whether there’s room for one more in this arena, let’s crunch some numbers. As of 2023, this buzzing beehive of a business is generating a hefty $39 billion in annual revenue right here in the U.S. alone. That’s no small change, my friends! And get this, the U.S. is not just playing in the big leagues, it’s practically owning the entire stadium, accounting for 90% of the global self-storage inventory.

But what about the competition, you ask? Well, there’s no sugarcoating it – the storage business is a bustling marketplace. With over 182,000 storage businesses operating nationwide, you’re certainly not alone. But don’t let that intimidate you! This number also serves as a testament to the industry’s robust nature and the vast demand for storage space.

The beauty of the storage unit business lies in its versatility. From folks looking to declutter their homes to businesses in need of extra space storage, there’s a demand across the board. And that’s precisely what makes this business such a good bet. It caters to a need that’s not going away anytime soon.

Starting a self storage business may seem like a daunting task, but with the right plan, resources, and a dash of entrepreneurial spirit, it’s a mountain you can conquer. So, are you ready to ride this wave and make your mark in the storage industry? Let’s roll up those sleeves and get down to business!

Now, let’s get down to brass tacks and look at who is driving the demand in the mini storage business. As a potential new business owner, understanding consumer demand is the compass that’ll guide your storage unit business towards success. Here’s a snapshot of the movers and shakers in the storage market:

• The Nomads: With life on the move becoming the norm, moving remains the primary reason folks seek out mini storage solutions. Be it a job relocation, downsizing, or even a gap year spent globetrotting, having a safe space to store their belongings offers peace of mind during these transitional periods. So, if you’re wondering how to start a self storage business that resonates with this demographic, consider offering flexible rental terms and hassle-free access to the storage units.
• The Space Savers: Did you know that over 1 in 5 renters in the U.S. utilize self storage units? That’s a significant market slice to cater to! From apartment dwellers looking to declutter their space to small businesses needing extra inventory storage, the demand spans across various user groups. Offering a range of unit sizes can help you cater to this diverse clientele.
• Generation X: Representing a considerable user group within the self-storage industry, Gen Xers often require storage space for myriad reasons. From moving homes to storing inherited items, their demand for storage facilities is quite robust. To start a storage business that appeals to this demographic, you might want to consider offering services like controlled storage or extra space storage.
• The Ladies: Female renters constitute another significant user group in the self-storage industry. Safety and cleanliness are often high on their priority list. To attract this demographic, focus on ensuring well-lit facilities, 24/7 surveillance, and immaculate storage units.

It’s clear as day that the storage business is not a one-size-fits-all kind of deal. The key to running a successful storage business lies in understanding the unique needs of these consumer groups and tailoring your services to meet them. And with the right approach, you could be well on your way to turning your business idea into a thriving self-storage business in 2023!

Comprehending Legal and Regulatory Essentials for Running a Self Storage Unit Business

When you’re ready to start your mini storage business, it’s crucial to get your ducks in a row when it comes to legal and regulatory requirements. It might seem like you’re jumping through hoops, but each step is essential for getting your business off the ground and avoiding potential hiccups down the line. Here’s a breakdown:

Every business, including a storage facility, requires specific licenses and permits to operate legally. Typically, you’ll need a general business license, but depending on your location and the nature of your business, additional permits may be required. For instance, if your self-storage unit business plans on offering RV storage, you might need extra permits. Remember, it’s important to register your business and open a business bank account to keep your finances in order.

Do you know the saying, “location, location, location”? Well, it’s not just about finding a spot with high demand. Zoning laws can dictate what type of business you can run in certain areas. These laws vary widely, so you’ll need to check with your local planning or zoning department to ensure your storage facilities are in compliance.

Here’s the deal: starting a self-storage business in 2023 without the right insurance policies is like walking a tightrope without a safety net. Different types of insurance, such as property insurance, liability insurance, and workers’ compensation insurance, will protect your business from potential financial losses. It’s also worth considering specialized insurance that covers customers’ belongings in storage.

Deciding on your business structure isn’t just a box to tick—it’s a decision that can impact your business in many ways, from how much you pay in taxes to your personal liability. You can choose to set up as a sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Each type of business entity has pros and cons, so it’s essential to get advice from a professional or the Small Business Administration.

Starting a storage business involves more than just renting out storage units—it requires a good understanding of the legal and regulatory landscape. However, with a little bit of elbow grease and the right guidance, you can navigate these waters and launch your business with confidence. 

Planning Facilities and Operations for Your Startup Self Storage Business

Starting a mini storage business is no small task—it requires careful planning and efficient operations management. It’s not just about having space; it’s about making the best use of that space and providing exceptional customer service. To give you an idea of what you’re stepping into, here’s a bit of data and a few considerations for you.

If you’re thinking about starting a storage company, the numbers are promising. In the U.S., the average occupancy rate for storage facilities sits at an impressive 96.5 percent.

When it comes to facility size, the average mini storage facility in the U.S. covers approximately 56,900 square feet. This doesn’t mean your facility must fit this mold—it’s just the average. Your facility size will depend on factors like location, demand, and your business plan.

When it comes to construction costs, figures can range from $1.25 million to $3.5 million. The costs can vary depending on factors like location, land cost, facility size, and construction materials.

Remember, starting a business is an investment, and the initial costs can be steep. However, with the right planning, management, and a good business loan, you can navigate these costs and set up a profitable storage unit business.

In today’s digital age, the incorporation of technology into your storage business operations is more of a necessity than a luxury. There’s a wealth of management software and online booking systems available that can streamline your operations and enhance the customer experience. Consider the following:

• Management Software : These tools can help you track your occupancy rate, manage rental rates, and handle other administrative tasks.
• Online Booking Systems : These can offer convenience to your customers, allowing them to book storage units at their leisure and streamline the rental process.
• Security Systems : High-quality surveillance systems and access control are a must for any self-storage unit business. Customers need to know that their belongings are safe.
• Website : Your business online is essential in this digital age. An intuitive, user-friendly website can help you reach more customers and provide them with the information they need about your storage services.

Starting a self storage business might seem daunting, but with the right planning and a clear understanding of the industry, it’s a journey you can confidently embark on. Remember, every business requires dedication and hard work—yours will be no exception. So, are you ready to take the leap?

Financial Aspects to Consider: From Business Plan to Small Business Loan

Money makes the world go ’round, and it certainly sets the wheels in motion for your storage business. Understanding the financial aspects, from revenues and profit margins to startup costs and financing options, is crucial. So let’s dive into the numbers, shall we?

Let’s talk earnings. The average annual revenue for a self-storage business is about $450,000, boasting a healthy profit margin of 41%.

These figures can vary based on factors like location, unit sizes, number of units, and additional services you may offer. So, while you might start a bit lower as a newcomer, with strategic planning and excellent customer service, there’s potential for growth.

The start-up cost for a mini storage business can seem a tad intimidating, ranging from $1.5 million to $2.4 million, averaging around $2 million. These figures account for land acquisition, construction, operational setup, and initial marketing efforts.

While it might seem like a lot, remember that starting a business is a significant investment. It’s about putting in the capital now to reap the benefits later.

With numbers like these, it’s no wonder you might be considering financing options. One viable route is through SBA (Small Business Administration) loans. These loans are designed to help entrepreneurs like you get their dreams off the ground.

• SBA 7(a) Loans : This is the most common type of SBA loan. It can be used for a variety of purposes, including purchasing land or buildings, construction costs, or even as working capital.
• SBA CDC/504 Loans : These loans are specifically for purchasing major fixed assets like land or buildings. If you’re looking at building a new facility, this could be a great option.

Remember, it’s crucial to have a solid business plan when applying for these loans. The lenders want to see that you’ve thought things through and have a plan for making your business profitable.

The journey of starting a self storage business might seem daunting, especially when you’re staring at these numbers. But don’t let it deter you. With the right planning, a clear understanding of your costs, and the help of financial tools, you’re one step closer to opening for business. Remember, every successful business started with someone taking that first daunting step. Are you ready to take yours?

Mastering Marketing and Customer Acquisition for Your Self Storage Business

In a world where competition is fierce and standing out is vital, setting up a winning marketing and customer acquisition strategy for your storage business is a must. From brand identity to digital marketing, let’s roll up our sleeves and dive into the nuts and bolts of getting your business noticed and attracting customers.

A strong brand identity sets your business apart from the competition. This goes beyond just your business name. It includes everything from your logo and tagline to your company’s mission and values.

• Choose a Unique Business Name : Research existing storage businesses to avoid duplication and check if the name is available for trademark. Your business name should be easy to spell, pronounce, and remember. It should also hint at the services you provide. Use tools like a business name generator for inspiration and don’t forget to check domain availability for your website.
• Design a Memorable Logo : Your logo should reflect the nature and values of your business. Consider hiring a professional graphic designer who can bring your vision to life. Tools like Canva also offer easy-to-use design templates for those on a budget. Remember, your logo will be on your website, marketing materials, and possibly even on the signboard of your storage facility, so it’s worth the investment.
• Define Your Mission and Values : This involves a deep understanding of your business, your goals, your customers, and the market you operate in. A mission statement should clearly communicate what your business does, who it serves, and how it does it. Your values should reflect the principles and beliefs that guide your company’s actions. These will help you to create a business culture and a brand that resonates with your target audience.

In 2023, your digital footprint matters more than ever. From your website to social media, make sure your self-storage company is easy to find and hard to forget.

• Website : Your website is your virtual storefront. Make sure it’s clean, easy to navigate, and mobile-friendly. Highlight your services, provide clear pricing information, and include a simple booking system. It’s also crucial to have your contact information prominently displayed.
• SEO : SEO, or search engine optimization, is about making your website more visible on search engines like Google. This involves keyword optimization, quality content creation, and building backlinks. Consider hiring an SEO expert or using SEO tools like SEMRush or Yoast SEO.
• Social Media : To start, choose the social media platforms where your target customers spend most of their time. Create engaging content that provides value to your followers. This could be tips on how to pack a storage unit or a behind-the-scenes look at your facility. Be consistent in your posting and engage with your followers by responding to comments and messages.
• Google My Business : To set this up, go to the Google My Business website and follow the prompts to add your business. Include as much information as possible, like your address, hours of operation, and photos of your facility. Encourage happy customers to leave reviews to boost your credibility.

Word-of-mouth is a powerful marketing tool. Implement a referral program that incentivizes your existing customers to refer their friends and family.

• Offer Discounts : For every successful referral, you might offer your existing customer a percentage off their next month’s rent. The key is to make the discount enticing enough that customers want to participate.
• Provide Extra Services : This could include providing a free moving truck for a day, offering complimentary moving supplies, or providing a free upgrade to a larger storage unit for a certain period.

Build relationships with local businesses and explore potential collaboration opportunities.

• Moving Companies : Reach out to moving companies in your area and propose a partnership. This could be as simple as distributing each other’s marketing materials or as formal as a referral fee agreement.
• Real Estate Agencies : Similar to moving companies, real estate agencies can be a great source of referrals. Introduce your business and offer promotional materials they can share with their clients.

Last but not least, invest in advertising. This can range from traditional methods like print ads and billboards to digital advertising like Google Ads or social media promotions.

Starting your self-storage business involves many moving parts, and marketing and customer acquisition are crucial pieces of the puzzle. Implementing these strategies will help you attract and retain customers, ensuring your business doesn’t just survive, but thrives in the competitive storage industry. Ready to make your mark?

Pricing Strategies and Revenue Generation in the Storage Unit Business

Taking the plunge into starting a storage business can be a lucrative venture, but let’s not skip over the crucial aspect of pricing and revenue generation. After all, a well-thought-out pricing strategy could be the difference between a storage facility that’s half-empty and one that’s making bank.

The price is a major determinant for customers choosing between different storage companies. As of 2023, the average monthly cost for a storage unit is a cool $100.04. Now, you might be wondering, “How much does it cost to provide these storage units?” Well, that’s where your cost analysis comes in. It’s vital to consider expenses like maintenance, security, and overhead when setting your prices.

For a mini storage business, utilizing market-based and target-based pricing approaches can help you set competitive and profitable unit prices.

Market-based Pricing

This approach involves setting your prices based on the going rate in your specific market. It’s a simple concept – you’re essentially pricing your units similar to (or slightly lower than) your competitors to attract customers. However, it’s vital that you’re still covering your costs and securing a profit.

Target-based Pricing

Target-based pricing, on the other hand, is when you price your units based on the profit margin you aim to achieve. You calculate this by adding your desired profit to the cost of running a storage unit. This approach requires a solid understanding of both your costs and the value your customers place on your service.

While Houston, TX, holds the crown as the most in-demand city for self storage units, it’s not the only city with a buzzing market. The demand for storage units varies greatly from city to city, often in line with factors such as population growth, real estate trends, and local economic conditions. Below is a table highlighting the top five cities in the U.S. for self-storage demand and their average monthly prices.

Los Angeles, CA

The City of Angels comes in second place, with an average monthly price of $112.35 for a unit. Given its dense population and high real estate prices, it’s no surprise that people in LA are turning to self-storage as a space-saving solution.

New York, NY

With space at a premium in The Big Apple, New Yorkers are willing to pay an average of $176.42 per month for storage. This city is a prime example of high demand driving up prices in the storage industry.

Texas makes the list again with Dallas, where the average price for a storage unit is $91.87 per month. The city’s growth, combined with a strong economy, has led to an increased demand for storage units.

Chicago, IL

Chicago, the Windy City, rounds out our top five with an average monthly storage unit price of $98.73. Like the other cities on this list, Chicago’s dense population and urban living conditions contribute to the demand for storage facilities.

Aside from rental income from your storage units, there are other revenue streams to tap into:

• Late Fees : It’s common practice to charge late fees when customers don’t pay their rent on time. Make sure these fees are clearly outlined in your rental agreement.
• Sales of Packing Supplies : You can offer boxes, packing tape, bubble wrap, and other packing supplies for sale at your facility. It’s a convenient option for your customers and an additional revenue stream for you.
• Insurance : Many self-storage companies offer optional insurance coverage for the items stored in their facilities. If a customer chooses to purchase this, it can add to your revenue.
• Truck Rentals : If you have the resources, offering truck rentals can be a profitable add-on service.

It’s worth noting that running a self-storage business requires a keen understanding of your local market and a flexible approach to pricing. Keep an eye on your competitors, stay aware of the need for storage in your area, and adjust your pricing strategy as necessary to keep your business thriving. Remember, starting a self storage business is not just about providing space – it’s about offering a service that meets your customers’ needs at a price they’re willing to pay.

As we wrap up this guide on how to start a self storage business, it’s clear that the storage industry presents a significant business opportunity. With the average occupancy rate of self storage facilities standing at an impressive 96.5% and a robust annual revenue, it’s no wonder entrepreneurs are drawn to starting such a business. However, running a storage business requires a comprehensive understanding of the market, strategic planning, and a credible business plan to ensure success.

When considering the cost to launch a self storage business, it’s crucial to factor in both the initial construction or acquisition costs and the ongoing operational expenses. Remember, there are various ways to open a storage business, each with their pros and cons. For those starting with no money, options like small business loans and other financing alternatives can make your business dreams a reality.

The key to a successful self storage company in 2023 and beyond will be in offering competitive rental storage rates, providing excellent customer service, and staying ahead of the technological curve. The storage market is evolving, and those who adapt will thrive. Don’t forget, the location of your storage units plays a crucial role in your business’s potential success, with cities like Houston, Los Angeles, and New York being particularly in-demand.

In conclusion, starting your own self-storage business is one venture with immense business potential. However, you need to know the ins and outs, from average storage unit prices to ways to generate business income. With this guide as your starting point, you’re well on your way to carving out your own corner in the storage industry. Go ahead, learn how to start, run the business like a pro, and get ready to open for business!

LaunchKit Founder

Tim loves building businesses and has a long history of buying, developing, and selling them successfully. He was featured on Entrepreneur.com as a top online entrepreneur and has now dedicated his career to helping others launch their own business in pursuit of personal and financial freedom.

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As I was reading through your post, one question popped into my mind: With the self-storage market being so competitive, how can new businesses set themselves apart from the existing players and attract customers? With over 182,000 storage businesses operating nationwide, it’s crucial to find unique strategies that can give entrepreneurs an edge. Any ideas?

Hey Michael!

Great question. Pricing and branding would be the obvious first places to start. Undercutting your competition and potentially taking an early loss to get customers in the door could mean a fruitful year 2. On the other hand… investing in high quality marketing efforts from the start could allow you to charge more. Be very careful about selecting a business name that lends itself to a memorable campaign.

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How to Start a Storage Business

Starting a storage business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful storage business.

Importantly, a critical step in starting a storage business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Storage Business :

• Choose the Name for Your Storage Business
• Develop Your Storage Business Plan
• Choose the Legal Structure for Your Storage Business
• Secure Startup Funding for Your Storage Business (If Needed)
• Secure a Location for Your Business
• Register Your Storage Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Storage Business
• Buy or Lease the Right Storage Business Equipment
• Develop Your Storage Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Storage Business
• Open for Business

1. Choose the Name for Your Storage Business

The first step to starting a self-storage business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your storage business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your storage business.

2. Develop Your Storage Business Plan

One of the most important steps in starting a storage facility is to develop your storage business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your storage business.
• Company Overview – this section tells the reader about the history of your storage business and what type of storage business you operate. For example, are you a self-storage, data storage, or a wine storage business?
• Industry Analysis – here you will document key information about the storage industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your storage business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your storage business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your storage business.

Next you need to choose a legal structure for your storage business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the storage business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a storage business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a storage business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a storage business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your storage business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Storage Business (If Needed)

In developing your storage business plan , you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a storage business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a storage business that they believe has high potential for growth.

5. Secure a Location for Your Business

When looking for a location for your storage business, it’s important to consider the following factors:

• First, consider the needs of your business. What kind of storage do you need: personal or commercial? Do you need climate controlled units? What are your storage space requirements?
• Once you’ve determined what kind of storage you need, research the areas in your city that best meet those needs. Consider factors such as cost of living, population density, and proximity to highways and public transportation.
• Narrow down your choices to a few neighborhoods that fit your criteria, and then take a closer look at the individual locations to see if they meet your specific needs (e.g., access, security, parking).
• Finally, visit each location at different times of the day to see how busy the roads are, and whether there’s enough parking for your needs.

Make sure to consult a commercial real estate specialist before you sign a lease. You may save yourself some time and money because they may be able to help find a location that meets all of your needs from the start.

6. Register Your Storage Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your storage business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your storage business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Before you can start a storage business, there are a few licenses and permits you will need. 

The most important license you need is a business license from your local government. In addition, you may need a special license to store certain types of items, such as hazardous materials. You will also need the local fire department to review and approve the installation of a fire alarm system in your business.

Make sure to check with your local government to find out what licenses and permits you need to start a self-storage business.

10. Get Business Insurance for Your Storage Business

The type of insurance you need to operate a storage business will vary depending on the state in which you operate.

Some business insurance policies you should consider for your storage business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Storage Business Equipment

In order to start a storage business, you’ll need some basic equipment. You may need a truck or van to transport items, a self-storage unit to store them in, and locks and packing materials to keep them secure. You will also need some office equipment like a computer, phone, and printer.

12. Develop Your Storage Business Marketing Materials

Marketing materials will be required to attract and retain customers to your self-storage company.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your storage business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional storage business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your storage business.

13. Purchase and Setup the Software Needed to Run Your Storage Business

To run a storage business, you will need accounting software, customer relationship management (CRM) software, and invoicing software.

14. Open for Business

You are now ready to open your storage business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Ultimate Business Plan in 1 Day!

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How to Start a Storage Business FAQs

Is it hard to start a storage business.

It is easy to run a self-storage facility successfully. The reason for this is it only requires minimum investment to start. In fact, you can do it by using your own garage or even a spare room in your house.

How can I start a storage business with no experience?

There are a few things you can do to get started in the storage business with no experience. First, do some research on the industry and learn as much as you can about it. Next, try to find a mentor or someone who can help guide you through the process. Finally, start small and gradually grow your business as you learn more about it.

What type of storage business is most profitable?

The most profitable storage business is the self-storage business. Self-storage businesses are those that allow customers to store their belongings in a storage unit that the customer rents. Storage facilities charge a rental fee that may be paid monthly, yearly or by another time period specified in the rental agreement. Self-storage businesses generally have higher average prices per square foot than other storage types because the customer is paying for the convenience of the short-term use of a storage unit and to keep a valued possession safely stored away.

Self-storage facilities are generally very profitable because the average revenue per storage unit is high. The self-storage business model has a lot of flexibility, allowing its owners to vary rental prices according to demand by offering discounts during slow periods and charging premium rates when occupancy is high.

Self-storage businesses are attractive to investors because of the business model's high average revenue per square foot, relatively low overhead expenses, and government regulations that protect storage owners from liability for stored items. 

How much does it cost to start a storage business?

To start a storage business, you will need to invest in some initial equipment and supplies. The cost of setting up your business will vary depending on the type of storage business you want to start, but can range from a few thousand dollars to several hundred thousand dollars. You will also need to factor in the cost of marketing and advertising your business.

Some startup costs estimates for storage businesses include: 

• $500 to $5,000 for a used storage container and trailer
• $12,000 to $25,000 for a new storage container and trailer
• $4,800 to $11,200 for a portable storage unit
• $7,400 to $1M+ for a prefab facility
• $200-$500 for packing materials and boxes
• $1,000-$5,000 for advertising and marketing

What are the ongoing expenses for a storage business?

The ongoing expenses for a storage business can vary depending on the size of the business, the services offered, and the location. However, some of the most common operating expenses include rent or lease payments, insurance, employee salaries and benefits, and advertising and marketing costs.

How does a storage business make money?

Many self-storage facilities make money by charging customers to store their belongings. They may also charge for access to the self- storage units, or for certain services such as moving items in and out of the units. Another way storage businesses make money is by subletting the storage space they control to third parties.

Is owning a storage business profitable?

Storage businesses are profitable. One reason is that the storage market is growing rapidly. In addition, the storage industry is fragmented, which means there are many small players in the market. This presents opportunities for consolidation. Finally, the storage industry is recession-resistant, meaning that demand for storage services remains relatively stable during economic downturns.

Why do storage businesses fail?

One of the main reasons storage businesses fail is because they do not have a solid business plan in place. This includes having a detailed marketing plan, pricing strategy, and financial plan. Other businesses also fail because they do not have the right team in place to help them run the business. It's important to hire employees who are knowledgeable in the storage industry and have the same values as your business. Finally, another reason storage businesses fail is because they do not have a good customer service strategy in place. Make sure you are responsive to customer inquiries and complaints, and always provide excellent customer service.

Other Helpful Business Plan Articles & Templates

Small Business Trends

How to start a storage business.

People are on the move, and they need self storage units. They are changing jobs, buying houses, going to college, downsizing and more.

A business may also need a self-storage facility. A business might need to temporarily store a piece of equipment or products while remodeling or moving.

With so many possibilities for profit, it’s no wonder that storage businesses are consistently in high demand. This guide will walk you through how to start a storage business, including a full business startup checklist tailored to this industry.

The Self Storage Industry

The self-storage industry has generally been doing well in the United States. It tends to be relatively recession-resistant, as people often need storage during life changes like moves, divorces, or downsizing, which can happen regardless of economic conditions. However, like any industry, success can depend on various factors like location, management, and market saturation.

What is a Self Storage Business?

There are various types of self storage businesses:

• Traditional Self-Storage : This is the garage-style unit most people think of.
• Climate-Controlled Storage : These units have temperature and humidity control.
• Vehicle Storage : For boats, RVs, and other vehicles.
• Portable Storage : Companies deliver a container to your door, which you fill up, and they take it away for storage.
• Indoor Storage : Units are inside a building and may have more security.
• Outdoor Storage : Mostly for vehicles or large machinery.
• Specialty Storage : For specific items like wine, art, or documents.

Why Self Storage Facilities Are In Demand

People seem to always have a need for a self storage unit, whether it’s short or long term. Businesses also regularly use storage facilities.

• Life Events : People often need storage during significant life changes.
• Downsizing : As people age, they might downsize but want to keep their belongings.
• Business Needs : Companies often need storage for equipment or inventory.
• Seasonal Storage : Storing items like holiday decorations or seasonal gear.
• Student Storage : Students may need storage during breaks.

Steps to Starting Your Successful Self Storage Business

Before you start, take the necessary steps to lay the groundwork for a successful business. The following steps walk you through how to start a business in this field.

Market Analysis for a Profitable Storage Business

A thorough market analysis is a must. In some areas, it may seem that there are self storage businesses everywhere. Does that indicate an ongoing need for the self storage facilities, or is the market saturated?

What are the local demographics? Are there entities nearby, such as colleges/universities or military bases, that generate an ongoing need for self storage businesses? Is the housing market in the area booming or stagnant?

Drafting a Business Plan for Your Own Self Storage Business

A self storage unit business owner should draft a detailed business plan . The plan should describe the business, including its structure (limited liability corporation, partnership, corporation).

Other key elements of the business plan include the financials of the key people involved and plans for marketing strategies. Many businesses start small and grow, and the business plan should include the timeline and strategy for that.

When it’s time to grow, a lender will want to see all the financials and the business plan.

Buying an Existing Self Storage Facility

• Existing customer base
• Established location
• Immediate cash flow
• Potentially high upfront cost
• May inherit issues like outdated equipment
• Limited flexibility for changes

Franchising Opportunities in the Self Storage Industry

Franchises like Extra Space Storage and Public Storage offer storage franchise opportunities, although many storage facilities are independently owned.

Selecting the Right Location for Your Self Storage Business

Of course, zoning is your first concern. Research local zoning ordinances and requirements to be sure such a business can get approval to be located in your area.

Other considerations include ease of access. Many people and businesses moving items will use a truck and trailer, so access roads to and within the facility should be easy to navigate.

Also, consider the demographics of the area, which can feed demand. Is the area growing in population? Are there new businesses or housing developments coming to the area?

Creating a Self Storage Business Website

You should hire a professional to ensure your website will pop up during online searches with words such as “Self Storage” or “Storage Unit”. No matter how good your website is, it won’t help you unless it is found on a search.

Your website should include a map/directions feature and a link to do online bookings and registrations. The sizes and locations of the units should be accurately described. You’ll also need a list of items not permitted in the storage units, such as gasoline-powered equipment.

Hours of operation should be noted. State the most desirable features of the business, such as 24-hour video security. Pictures of the units’ interiors are helpful, as well as descriptions of how much square footage is typically needed for household goods.

Choosing a Business Structure

Different business structures are common in the storage unit business. Some common business structures are a limited liability corporation, or LLC, with a sole proprietor.

In other cases, a business structure could be a partnership, with two investors starting the venture. This can be common when one of the partners owns the land or an existing building, such as a warehouse.

The corporation as a business structure may be developed when a self storage business expands and opens one or more additional locations.

Secure Necessary Permits and Licenses for a Self Storage Company

You’ll need building permits for construction and business licenses to operate. Some facilities may also require small business insurance . Specifics vary by jurisdiction but could include fire safety permits, environmental permits, etc.

Zoning is another concern. Often, neighbors who live nearby are concerned about an increase in traffic and the lighting requirements of a storage business. A self-storage business owner can alleviate these concerns by establishing certain hours for the facility, but good lighting is important for security reasons.

Designing Your Self Storage Units for a Successful Self Storage Business

As you design the facility, make sure the aisles between the units are easy to navigate outdoors and indoors. Clients may use trucks and trailers outdoors and pallet jacks and carts indoors.

Outdoor facilities should be high-fenced, and you’ll need to allow access to the fencing for repairs or weed/snow control.

Areas for outdoor storage of items such as campers or trailers should be large enough to allow for vehicles to be maneuvered and backed up into spaces. The spaces should be clearly defined and numbered.

If the business will be located in a northern climate, be sure to allow room for the removal of snow/ice.

Setting Prices for Units in Your Storage Facility

One great technique used to build a clientele for a self-storage facility is offering significant introductory discounts. For day-to-day operations, there are various factors to consider:

• Location : Urban vs. rural rates differ.
• Unit Sizes : Different sizes command different rates.
• Features : Climate control, security features, etc.
• Competitor Pricing : Know the market rate.

Hiring and Training Staff

Some self-storage businesses operate with on-site staff members. Customers make appointments and are met by a staff member, especially for the initial signing-up process.

More often, bookings are done online or through a customer service representative. That person must, of course, be courteous and informed, and also be able to advise on the unit size that will be needed.

For example, here is key information staff members should know:

Approximate Storage Unit Sizes

• 5×5 (25 sq ft) : Suitable for boxes, small furniture, or seasonal items. Probably too small for an 800-square-foot apartment move.
• 5×10 (50 sq ft) : Can hold some furniture and boxes. Might work if you only have a minimal amount of furniture and are good at packing.
• 10×10 (100 sq ft) : Often recommended for a one-bedroom or studio apartment. Could be tight for an 800-square-foot apartment, depending on how much stuff you have.
• 10×15 (150 sq ft) : More appropriate for a two-bedroom apartment. This would likely give you enough space for an 800-square-foot apartment, especially if you have several pieces of large furniture or appliances.
• 10×20 (200 sq ft) : Suitable for a multi-bedroom house and would provide ample space for an 800-square-foot apartment.

Questions staff members should ask:

• Furniture Size : Do you have bulky furniture like sofas, beds, or dining tables?
• Appliances : Will you be storing a fridge, washer, or other large appliances?
• Boxes : The number and size of boxes can add up quickly.
• Vertical Space : Remember, you can stack items to take advantage of vertical space.

Marketing Your Self Storage Business

You may wonder, “what is marketing for a self storage business, anyway?” Your strategy should include building an online presence, with at least a website and Facebook page. Our website startup guide can walk you through how to create one and what to include.

You can do lots of marketing offline. Definitely join your local Chamber of Commerce, where you can network with other business owners. If there’s a military base or educational institution in the area, see if you can post information about your facility with those entities.

Embracing Technology: Online Bookings and Security

There are software solutions specifically for self-storage management that help with online bookings, payment processing, and security monitoring.

For example, a new client can book entirely online. The new client is given an access code to use on a keypad which will open a gate into the facility. An online map of the business gets the client to the storage unit. A combination lock is on the unit, and a keyed lock is inside the unit for the customer to use. The customer drops the combination lock in a dropbox.

Security monitoring can be done remotely using cameras and live feeds. Also, a camera or cameras are positioned so that the license plate of each vehicle entering/leaving the facility is recorded.

Customers will choose one self-storage business over another based on the ease of booking and security monitoring.

How to Start a Storage Unit Business with No Money

It’s challenging to start with no money due to the costs of land, construction, and operation, but leasing existing structures for conversion might be an option. Some also start small with just a few units.

It may be possible to start a facility by partnering with a property owner, such as the owner of a vacant warehouse or fenced lot. If a space is unused, the property owner may be willing to lease the property to gain some income from it.

Container-based storage units could be an option for that type of arrangement. The container is dropped at the client’s residence or business to be filled. When full it is picked up and brought to the storage facility. It can be delivered to a new location when the customer is ready for it.

Navigating the Challenges of a Self Storage Business

Though there are many benefits of running a storage business, there are also challenges. Here are some of the most common:

• Nonpayment : Customers not paying fees.
• Vacancies : Keeping units filled.
• Security : Theft or vandalism.
• Maintenance : Regular upkeep is essential.

FAQs: How to Start a Self Storage Business

How profitable are self storage businesses.

The self-storage business has the potential to be profitable, especially when well-located and well-managed. Profit margins can be decent due to the low overhead after initial setup.

Earnings can vary widely based on size, location, and other factors. Some estimates suggest profit margins between 11% and 20%, but this can fluctuate.

What security measures are needed for a self storage facility?

24-hour video surveillance is a must. Also, the facility should be physically checked, especially its fenced perimeter, at a minimum of two times daily.

If the owner of the facility is going to be away on business or vacation, be sure to ask the local law enforcement entity to make patrols in the area.

What is the best location to start a self storage unit business?

The best location for starting a self-storage business is one where the area isn’t saturated with similar entities.

The self-storage unit business should be positioned in a growing area, and be situated along a road system which provides easy access to customers driving a truck and trailer, or large cargo vans and vehicles.

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How To Start a Self-Storage Unit Business and How Much Will it Make?

October 13, 2022

Adam Hoeksema

IBIS World gives us a general insight into the $23 billion a year self-storage and warehouse leasing industry raging in the US. Over 182,000 businesses have opened nationwide to take their share of the pot. Increasing in both 2020 and 2021, despite the pandemic, profit is expected to reach the highest share of revenue since 2002 with a growth of 2.5% every year.

How Much Profit do Storage Unit Owners Make?

The average profit for a storage unit business owner is $184,500 annually. Of course the potential profit for any specific storage unit facility will depend on the size of the facility, the market rate for rent in the area, and the operating efficiency of the business. We estimated the annual profit of $184,500 by taking the average storage unit facility size of 50,000 square feet x the average annual rental rate of $9 per square foot = $450,000 in annual revenue. Then taking a profit margin of 41% gives us a forecasted annual profit of $184,500.

We will dive into the sources for these assumptions and the ranges in revenue and profit margins in the article below, and show you how to use our templates to create your own projections.  We have three templates that I will reference throughout the article:

• Simple Self Storage Facility Template - best for smaller and existing storage facilities.
• Self Storage Developer Template - best for developers looking to raise capital for new self storage facilities.
• Self Storage Acquisition Template - best for investors that are buying, renovating and selling storage facilities.

Common Steps to Starting a Self-Storage Unit Business

Such promising revenue numbers beckon forward when it comes to making the decision to start such a business. Let’s review some of the most common steps needed for a successful and profitable business.

• Budget for the business and determine the potential size
• Determine the target market and perform market research in the area
• Finance the business and purchase or rent space and equipment
• Complete all required paperwork and form a legal entity
• Obtain required permits and insurance to operate as a business in the area
• Set up necessary accounting and banking
• Start an advertising campaign
• Complete any necessary renovations before opening the doors to the public

How Much Does It Cost to Start a Self-Storage Unit Business?

The average cost to start a self storage unit business is $2 million.

Three sources ( Storable , LovetoKnow , MakoSteel ) give us estimated startup costs of starting a new self-storage unit business. 

• Minimum startup cost for a self-storage business = $1.5 million
• Maximum startup cost for a self-storage business = $2.4 million
• Average startup costs for a self-storage business = $2.0 million

The majority of the expenses incurred during the startup process fall into the following categories:

• Land purchase
• Construction
• Permits and licenses
• Outfitting the premises

What is the Average Size of a Storage Unit Facility?

The average size of a storage unit facility in the US is 56,900 square feet according to Easy Storage Solutions .  For easy math throughout this article we will use a 50,000 square foot facility as an example. 

Self Storage Facility Layout

The layout of your storage facility is going to be determined based on the land that you have.  Details around road access, drainage, zoning, etc.  The cost of your land and location will also determine whether you are building a multi story storage facility or spreading out the units on the same level.  Obviously the construction cost per unit will be more expensive if you build a multi-story facility, but if the land is expensive or you are landlocked your only option may be to build up.  Ultimately the goal of your layout will be to maximize your rentable square feet of storage space.  

Once you have solidified your facility layout that will maximize your rentable square feet, next you need to determine what your self storage unit mix should be. 

How Many Storage Units Per Acre?

On average you can fit between 130 and 215 storage units per acre assuming a 10 ft x 10 ft “standard” unit.  

We were able to calculate this based on the following assumptions:

• There are 43,560 square feet in 1 acre
• Most storage unit facilities will cover between 30 and 50% of the parcel with units according to SelfStorageNinjas .
• This means there would be between 13,000 square feet and 21,750 square feet available per acre.  
• Since the “standard” storage unit is 100 square feet, we estimate that you can fit between 130 and 215 storage units per acre.    

Of course if your average storage unit is larger than 100 square feet you will be able to fit fewer units per acre.  

Average Number of Units per Storage Unit Facility

According to a survey of 10,000 storage unit facilities the average number of storage units per facility was 546.

Self Storage Unit Mix

There is not a one size fits all unit mix when it comes to self storage facilities.  Although you might be able to charge a higher rate per square foot if you had all very small units, the reality is that your customers will need a more diverse mix of storage units.  If your target market is in the city, and your customers are typically in small apartments, then you might need more small storage units.  If you are located in a suburban area where the average home is 4,000 square feet, you are likely going to have more customers that need a larger unit.  

Average Unit Mix for Self Storage

According to Inside Self Storage the average unit mix for self storage is as follows:

Cost to Construct a Storage Unit Facility

The average cost to construct a storage unit facility can range from $1.25 million to $3.5 million.  We estimate this range based on an average size 50,000 square foot facility and a construction cost of $25 to $70 per square foot based on information provided by Storable . This does not include the cost of the land or other operational startup costs.  

Self Storage Construction Budget

Our self storage developer template will allow you to build a construction budget for your self storage facility as seen below:

Acquiring a Storage Unit Business

Rather than spending $1.25 to $3.5 million to build a new storage unit facility, you might want to consider acquiring an existing storage facility .  Although an existing facility would be older and might require some additional repairs and maintenance, if the facility is already fully operational and leased up with tenants, you will be able generate positive cash flow faster.  It can take 2 to 4 years to reach a stabilized occupancy rate for a new 50,000 square foot storage unit facility, so acquiring an existing facility with tenants can really speed things along.

You can find hundreds of self storage facilities for sale on LoopNet .  

Acquiring vs. Constructing a Self Storage Facility

One of the great things about our self storage financial models is that they will allow you to easily compare the differences between acquiring an existing facility versus constructing a new storage facility.  You can enter assumptions about the purchase price or construction price into the model, details about financing, and the number of units available to rent.  

Bonus Video Content - How to Acquire a Storage Unit Facility .

How Much Can a Self-Storage Unit Business Make in Sales?

The potential revenue for any business varies due to a number of factors. The size of the self-storage facility, whether it’s one or two floors, the market need for storage in the area, and how many units are likely to get rented at any time. 

How to Set the Price of One Unit?

The price of each unit is the key to running a successful business and making a profit. The revenue potential is held within this business element. There are two approaches to setting the right price. 

Market-Based Pricing

A quick and simple approach to setting a price is completing market research. Staying competitive in the market can make all the difference and it’s not time-consuming. Search engines provide quite a bit of information on prices in the same area. 

Target Based Pricing

This approach will require more work than the first, but it has an end goal in mind. Rather than setting the price to match those of competitors, you work to set the price of potential gross profit margin. 

The typical profit margin of a self-storage business, according to Storable , is around 41%. Target-based pricing means setting the price in such a way that you’ll meet that goal. According to QT Business Solutions , there are around $3 in operating expenses for every raw square footage of the facility.

Calculating the amount to charge per storage unit will depend on a couple of factors. For example, you’ll need the exact amount of square footage of the facility and the sizes of the units, and their number. Once you have the information, you can double any potential expenses to get to the required revenue to meet at least the 41% profit, unless you are aiming higher. 

Self Storage Rent per Square Foot

The average rent per square foot for self storage space in the US was $1.28 in 2022 according to Statista .  Although this is the average, the rate that you will be able to charge is going to differ based on your location.  Additionally, the rate per square foot for self storage units is related to the size of the units that you are renting.  You can check out SpareFoot for the most up to date rent per square foot data.  As of February 2023 you can see their estimates and the major differences in rent per square foot for small vs. large units. 

How full will the facility get?

Self-storage unit businesses run year-round which alleviates one potential worry. However, estimating revenue will depend on how many renters there will be. QT Business Solutions explains that most facilities see an occupancy rate sitting at around 90% in today’s market. 

Though most businesses in the industry will shoot for occupancy of around 80% to 90%, Storable tells us that 65% of occupancy will at least cover the operating and debt expenses of the business. 

With the current trend in downsizing homes and apartment versus home rentals, self-storage units are a popular choice among millennials. 2020 showed an occupancy average of 91.7% , and those numbers have been holding steady, if not growing. 

Of course, those who own a self-storage unit business should not shoot for anything higher than around 90% so that there is always storage to rent. You do not want to find yourself shooting for 100% occupancy and have nothing left for new customers.

Self-storage unit business revenue potential

The revenue potential for a self-storage unit business is quickly calculated once you have all the right information on hand. 

To start with our example, let’s say we are using a facility the size of 50,000 square feet -- the average for these types of businesses. To cover the expenses required to run the business, Truic advises setting the price at around $9 per square foot, per year. 

This estimates the yearly revenue around $450,000, or $37,500 monthly. Of course, this number is for 100% occupancy, which means we need to deduct vacancies of at least 10%. This brings us to a total of $405,000 a year before any other expenses are taken into account. 

Download the Storage Unit 5 year financial projection template

Self-storage unit business annual revenue.

The average revenue for a self storage business is $450,000 per year.

Three sources ( Truic , SweatyStartUp , BizFluent ) tell us the expected revenue amount for a 50,000 square foot self-storage unit business.

• Minimum revenue for a self-storage unit business = $90,000
• Maximum revenue for a self-storage unit business = $600,000
• Average revenue for a self-storage unit business = $450,000

What Are Common Operating Expenses for A Self-Storage Unit Business?

The common operating expense categories for self storage units include:

• Real Estate Taxes
• Property Insurance
• Repairs and maintenance
• Administrative Costs
• Off-site Management
• On-site Management
• Advertising
• Miscellaneous

Average Operating Costs for Self Storage Facilities

The average operating cost as a percentage of revenue for self storage facilities is roughly 35%. 

We calculated this number based on the SEC financial statement filings for Extra Space Storage, one of the largest and most diversified storage facility owners in the US.  In 2021 and 2022 their property operational costs and their general and administrative costs amounted to roughly 35% of revenue in both years.  This does not include depreciation or amortization costs.  Because depreciation costs can vary dramatically based on accelerated depreciation, we wanted to look at true operating costs only which are more stable.  Your depreciation and amortization costs will vary depending on your specific property and financing details.   

Typical Operating Costs for Self Storage Facilities

Based on a report from CBRE that analyzed 808 self storage facilities, the average operating cost per square foot was $4.03.  This is based on 2017 data, so you can expect these costs to have increased, but we can still gain some valuable insight from this information. 

Self Storage Operating Expenses as a Percentage of Revenue

Once we have estimated our expenses, we can now estimate our net operating income.

How much profit can a self-storage business generate?

Profit from a self-storage unit business will vary drastically. Depending on the area, the size, and the market need, this business has the potential for a high return on investment. 

Self-Storage Unit Business Profit Margin

The average profit margin for a self storage business is 41%.

Three different sources ( Storable , BizFluent , RoadLessTraveledFinance ) provide us with the expected profit margin for a self-storage unit business so that you too know what goals to set.

• The minimum profit margin for a self-storage unit business = 11%
• The maximum profit margin for a self-storage unit business = 60%
• The average profit margin for a self-storage unit business = 41%

Financing a Storage Unit Business

Whether you are looking to finance an acquisition of a storage facility or finance the new construction, a self storage SBA loan can be an excellent option for you.  Because a storage unit facility can be used as collateral and since the primary use of the proceeds will be for real estate, you will likely be able to secure a longer term than average with an SBA 7a loan.  SBA 7a loans offer terms of up to 25 years for real estate loans. 

Raising Investment for a Storage Unit Business

You will only be able to borrow a percentage of the acquisition price or construction cost of your storage unit facility, so you will need to raise some investment.  That could be your own personal investment into the business, or you might look to pitch investors to join you in the business.  If you are pitching investors, you should have a good understanding of what the internal rate of return that your potential investors expect.  Once you create a set of cash flow projections for your storage facility, you can calculate the IRR - internal rate of return that you expect investors would be able to generate. This video will teach you how to calculate IRR with our projection templates. 

Self Storage Business IRR

The average IRR for a self storage facility was 16.9% between 2009 and 2018 according to Forbes . So as you are calculating your forecasted IRR you will want to make sure that the facility can get within the range of returns that investors expect.  You can use our developer template as a self storage IRR calculator .

Once you complete your storage unit projections you will be able to see how your facility compares to industry standards in our Profit and Loss at a Glance table as seen below:

If you’re exploring starting your own self-storage facility and need to create comprehensive financial projections for planning, investors, or lenders we offer a CPA-developed, easy-to-use, and affordable template built specifically for self storage businesses, please check out our self storage pro forma template .

Self Storage Business Plan Outline

If you are moving forward with starting or buying a self storage business, your SBA lender may ask you for a business plan. Here is a quick business plan outline that you can use for your self storage startup.

I. Executive Summary

• Business Overview
• Management Team
• Business Goals

II.  Company Description

• Industry Analysis
• Company Objectives

III.  Market Analysis

• Target Market
• Competitive Analysis

IV.  Products and Services

• Description of Services
• Pricing Structure

V.  Operational Plan

• Business Hours

VI.  Financial Plan

• Sales Projections
• Income Statement
• Cash Flow Projection
• Break-even Analysis

VII.  Conclusion

You can get the self storage financial projection template.

The template is simple to use and will save you loads of time while still producing professional looking storage unit business projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The self storage projection template includes:

5 Year Self Storage Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the storage unit business forecast template here:

Get the template today for just $99

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

Top Right Photo by Ketut Subiyanto from Pexels

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Self-storage Business Plan: All You Need To Know

What is a self-storage business plan, why do you need a business plan for your self-storage business, components of a self-storage business plan, do you need a professional to write your self-storage business plan, difference between a self-storage business plan and a self-storage business model, challenges of writing a self-storage business plan, self storage business plan examples.

Free Self-storage Business Plan Template

A business plan is necessary if you intend to open a new self-storage facility or develop an existing one. The major things that need to be mentioned in each component of your business plan for a storage facility are discussed below.

A self-storage business plan outlines your growth strategy for the coming five years and gives a full overview of the operation of your self-storage business. It outlines your company's objectives and your plan for achieving them. Market research is also included to help you with your ideas.

You need a business plan if you want to launch a self-storage or storage unit company or expand an already successful one.

A business plan will increase your chances of success by assisting you in obtaining capital, if necessary, and planning the expansion of your self-storage company. As your firm develops and evolves, you should regularly update your self-storage business strategy.

Be sure to take into account the operational requirements needed to run this business in addition to the original planning process. Fortunately, self-storage facility investments are usually appealing since operational costs are often inexpensive.

Make sure the following elements are included in your business plan:

Executive Summary

An executive summary is a condensed description of your company. Imagine it as the very first subject you would mention in a discussion about your company. An executive summary for a self-storage enterprise, for instance, would begin as follows:

This business's goal is to build and run a 100-unit complex on a piece of property outside.

Or you can try this:

This business endeavor sorts for and purchases quality self-storage properties in minor markets. To boost revenue within the next two years, the company will remodel and upgrade its facilities with the newest technology.

An executive summary should continue by summarizing and highlighting important sections of your company's plan, such as predicted revenue and total costs.

Business Description

This section should contain our company structure: sole proprietorship, LLC, C- or S-corporation.

You may outline the specifics of how your self-storage company will function here. Include operational information about your company, such as branding, services that you intend to provide, and anticipated costs, in addition to your legal status.

Today, more than ever before, businesses have been equipped with cutting-edge phone systems, user-friendly applications, and online payment options. Although these features aren't always required for success, having a small number of tech-powered solutions will give you an advantage. Think about the adoption of these devices as soon as possible.

Think about your employment strategies, insurance requirements, and upkeep practices, among other things. Besides self-storage rents, take into account other revenue streams like the sale of renter's insurance or moving materials.

Market Research and Strategy

In this section of your business plan, summarize your most important results from the market analysis you previously conducted and explain how they influence your concept for a self-storage business.

Analyze the supply and demand dynamics and demography of your target market. For instance, you may think about providing RV storage if people ask for it. Make a plan for how you'll generate income and acquire new tenants through techniques like billboard marketing, and digital marketing.

The self-storage market has its own dynamics, just like any other industry. You may carry out a self-storage project more successfully if you are aware of these tendencies.

Management and Personnel Structure

The key players in your self-storage industry are discussed in this section. Explain the executive team's background, credentials, and responsibilities as well as any extra staff you may have on hand or may need to employ in order to carry out your strategy.

Financial Reporting Documents

Is your business concept for a self-storage facility financially/commercially sustainable? You can now prove it by outlining the specifics of your financial condition. What are your possessions and obligations? Will you have to pay back your debt?

The predicted cash flow, balance sheet, and profit and loss for your company for the coming two to three years should all be included in this area.

Developing your self-storage business plan all by yourself may not be a smart move. It is too vital to create on your own. Would you appear in court unrepresented by a lawyer? Would you release an app without a software developer?

However, even if it is recommended to collaborate with a professional, you might want to explore working on your initial draft by yourself.

The effort behind the initial draft should come from you and you alone. You may contact a business consultant for guidance on the right approach for your specific business plan or have one edit it later.

A self-storage business’s backbone is its business model, while its structure is its business plan. Therefore, a business model is the basic idea of the company, strategies for generating revenue, as well as an explanation of how it works. The business plan goes into great depth to demonstrate how this concept may operate.

Actually Starting

Be rest assured that we can all relate to how challenging this is. As a first step, it is recommended that you keep your plan to one page.

You may think that this is impossible, but it is not. Though it is not going to be the finished body of work, it serves as a canvas to plot the structure of the potential result of the main self-storage business plan.

It is a visual tool, a means to brainstorm your ideas into something more organized, built on the basic elements of your plan.

Once you've assembled the building blocks, you've already laid the groundwork for a solid business plan. It makes a lot more sense to do this than to isolate yourself in a space and try to produce a 20-page document in one go.

Budgeting and Financing Estimates

Budgeting and financing for self-storage businesses can feel overwhelming, and because the statistics appear more restrictive, the financial aspect of a business plan does seem to stimulate the most concern.

On the other hand, your business plan is meant to assist you with preparing for the future and scaling your business. Also, note that they are estimations, not forecasts, and there are no wrong or right figures. When you approach them in this manner, they become significantly less intimidating.

Make sure that you're systematic about it. One smart way to do it would be to begin from the bottom and work your way back up. You know how much money you want your company to generate, so figure out how much each part of our self-storage products and services should bring in.

Also, find out what your expenditures may possibly be in order to meet that goal. It sounds simple, yet it is so quickly forgotten. Remember, these are YOURyour figures. Don't be compelled to just select a template and fill it out yourself. Begin with the fundamentals and then link the dots.

Knowing Your Demographics

The most difficult challenge for a growing self-storage business is resisting the temptation to let the perceived momentum of their performance be the basis for broadening their opportunities.

Also, you want to be approachable. However, resist the urge to say yes to everyone and everything. Reacting to who you work with and saying yes to everybody rather than going after specific people that you know you want to work with will simply spread the value you provide clients too thinly and dilute what you do best.

It is critical to understand your target audience. You may utilize a categorization tool like 6SenseRevenueAI, which uses a scoring system to meticulously identify distinct tiers of consumers.

Not only does it keep you informed about your present customer base, but it also serves as a superb screening tool to determine whether new client leads are strong or just something put in to expand your net and weaken your value to your important clients.

Making It Interesting

Anything "interesting" is always conveyed with enthusiasm. Imagine you're chatting to a stranger, you've told them about your self-storage company, and they ask you a question—a passionate tale about how you are of service, the kind of people you help, as well as who you might be able to help in the future, should most likely follow.

That's significantly more intriguing than a scripted sales speech peppered with figures and statistics.

Below, we have included various business plan samples for your self-storage company launch to assist you in developing your own business plan:

• OGS Capital self-storage business plan samples
• Sample.net self-storage business plan samples (PDF)
• SampleTemplates self-storage business plan samples (MS word, google docs, PDF.)
• Examples.com self-storage business plan samples
• ExpertHub self-storage business plan sample

Below is a self-storage business plan template that outlines the important components of a successful self-storage business plan for your guidance.

Above all, in the marketing/management section of your business plan, you should indicate the need for an authentic self-storage property management system. The PMS should feature a sophisticated client management system, single app control, and a richer experience for all.

Your self-storage facilities can be maintained efficiently and optimized using the Booking Ninjas self-storage property management system , enabling you to better manage your clients. With our one-stop system, you may benefit from remote access, ticketing and POS systems, online customer acquisition, and much more. It is time to improve your storage.

We are glad to share our knowledge by giving this preparation guide and application to assist you in getting started in the profitable self-storage industry.

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Ultimate Guide to Starting a Storage Unit Rental Business

While storage units may not seem like a great way to make money, this business can be extremely lucrative.

Renting out your storage units is an amazing source of passive income that requires somewhat little ongoing work to operate. Each month, your renters will send you a check for the space they use.

In this guide, I’ll explore everything it takes to build a storage unit business including the costs of building storage units, how to start a storage unit rental business, and some helpful tips to making more money with storage units. Let’s get started.

Why Start a Storage Unit Business?

As previously mentioned, a storage unit business is one of the best methods to build passive income. Once your units are built, there is a relatively low time and money commitment to keep them operating.

The largest barrier to entry is the land on which your units will reside. This often scares many investors away because of how costly land can be. However, it’s not always as expensive as you may think.

So why start a storage unit business? Here are my 3 top reasons:

• Storage units establish a passive income stream .
• The market can be undersaturated in many locations.
• There is a potential to make a large amount of money.

How Much Money Can You Make Renting Storage Units?

The amount of money you can make will depend on several factors including your location, the size and type of storage unit, and any amenities you might offer.

It is common to rent your units anywhere from $75 to over $500 per month depending on the size and location. Multiply this by the number of units you plan to build and you can easily see how profitable your business can become.

Location of Storage Units

The largest factor in determining how much money you can make renting your units is where they are located.

Units closer to large cities are likely to rent for significantly more than those placed further out. It’s common to see prices of storage units in larger cities over 100% more than their rural counterparts.

It’s a good idea to spend some time researching market rates for your area before you decide to get started.

Size and Type of Unit

Another great factor in determining your rental price is the size and type of unit you offer.

There are some benefits and drawbacks of building larger units.

If offering larger units you can expect to receive a larger rent payment each month however it might be more difficult to find tenants. You’ll also want to consider the opportunity cost of breaking the unit into 2 units. Could you rent out 2 smaller units for more than a single larger offering?

These are a few questions to consider when planning your business.

Storage Unit Amenities

Will your operation offer 24/7 access? Will there be security on guard?

Renters will take these ammonites into account when choosing which storage complex is right for them. By offering these amenities, you’ll be able to charge a higher price but your costs will also increase.

How Much Does it Cost to Start a Storage Unit Business?

The costs to get started range depending on the size and location of your business. For those living in a low cost of living area, you can expect to spend much less to get started than those located in a large city.

The main costs to start your storage unit business include the cost of land and the construction of the units themselves.

For those planning on building a multi-unit complex, you can expect to spend $25,000+ to start your operations.

For those looking to construct a single storage unit on their current property, you could get started for less than $2,000.

How to Start a Storage Unit Business

Starting a storage unit business will take some time and money to get started. You'll need to cover the cost to build your units and marketing expenses when establishing your business.

Below, I’ll break down the steps to starting your rental storage unit side hustle .

Plan Your Business

Before investing in any business, you'll want to do your research to ensure it has the potential to become profitable and make you money. This is true when it comes to starting your storage unit business.

You’ll need to have a few things to get started:

• Land to build your storage units
• Money to cover the cost of building your storage units and operational expenses

You'll want to understand the most common sizes of rental units in your area. The most common sizes include 10×10, 10×15, 10×20, and 10×30.

Furthermore, you’ll need to examine rental rates in your area for a comparable unit to guarantee that there is a market for your offering.

After completing your market research, if you still believe your business is capable of succeeding, move on to the next step.

Purchase Land (If Necessary)

Once you’ve planned your storage unit business, it’s time to get started. The first thing you’ll need is space to build your units.

Depending on the complexity of your business, you’ll want to find commercial real estate that is easy to get in and out of.

For those looking to get started with less cash, you can consider building your storage unit on your own property to save money. While this option is less expensive, you’ll want to keep in mind the possibility of a decreased rental price because of less convenience for your customer. You can also opt to have your purchase financed, enabling you to get started with less money.

Build Your Storage Units

Once you’ve obtained land to build your business, you’ll need to construct your storage units.

You can choose to build them yourselves or outsource this work to a contractor.

There are several different kinds of storage units for your customers' needs.

Basic Enclosed Storage Units

These storage units are the most simple to build with a solid foundation and garage-style door for easy access. These units will be the most cost-effective and are great for investors just getting started.

Related: How to Start a Laundromat Business

Climate Controlled Storage Units

More seasoned investors might want to consider offering climate-controlled storage units to increase their income. Because these are more difficult to find, you can charge significantly more than a basic unit.

The downside? They are very costly to produce and maintain. Depending on your location, you’ll need to have both air conditioning and heating in the unit to keep it at a constant temperature.

Indoor Storage Units

Some storage units are climate controlled and are located indoors. This offers a few benefits for customers and will come with a larger price tag.

As expected, these units are more expensive to build but can be a worthwhile investment.

Finalize Amenities and Operations

If you plan on offering any additional amenities like security this is your chance to plan these operations.

You should also finalize how you will bill customers, how they will pay, and any other basic business operations such as who will answer the phone, etc.

Market Your Storage Business

Now that you’ve finalized your operations, it’s go time.

There are many methods of marketing your storage unit business. Below are a few of my favorites.

Post Your Units on Craigslist

Craigslist is full of people looking for odds and ends products and services making it a great option to promote your storage unit service. You can often find people interested in storing random items like old vehicles or large furniture.

Post Your Units on Facebook

You’ll be surprised about how many friends and family might be interested in renting your units. Be sure to publish your offerings on social media websites to get the word out.

Pass Out Flyers

Flyers are an excellent method to reach residential customers, those likely to need your services. You can print flyers with all of the information for less than $0.10 each, making it a cost-effective tactic to gain customers.

Your flyers should include information about your business including how they can contact you, where your location is, and starting prices for your units.

Create a Company Website

A website is an easy way to give potential customers access to all the information they need before deciding to use your services.

You can choose to develop the site yourself or outsource this to a local marketing company for a cost.

Tips to Growing a Storage Unit Business

Below are some helpful tips for starting and growing your storage unit business.

Start Small

While you might be enticed to go all-in from the beginning, starting small will give you the opportunity to fix any kinks in your business model without costing you a fortune.

One Up the Competition

At the beginning stages of your business, you'll want to provide your customers with a leg up over your competition. This might mean pricing your units at a lower price or having slightly larger units.

This will give customers a reason to choose your services over others giving you the opportunity to keep them for a lifetime.

Offer Discounts

By offering discounts to potential customers they’re more likely to pull the trigger on your services. You can consider offering the first month free for new clients or offer a percentage discount.

Related:  Best Things to Rent

How to Start a Mobile Storage Unit Business

When you think of storage units, you’ll most likely think they tend to be at a physical location but in the 21st century, just about everything is mobile, including storage units.

There are several companies that have mastered this concept like Pods . The business model is simple. A large container will be delivered to your location that you can temporarily store your items in until you no longer need it. Then the container will be picked up from your property.

Benefits of a Mobile Storage Unit Business

Starting a mobile storage unit business comes with several benefits. One of the largest benefits comes with not having to make a massive investment in a physical location. Because your operation is mobile, you’ll only need space to store your units.

The other main benefit is the scalability of your business. Where a physical storage unit business would require you to obtain more land in order to expand your operations, a mobile business would only require a small investment in the amount of space needed to expand your operations.

Drawbacks of a Mobile Storage Unit Business

Just because you don’t need a large track of land to get started doesn’t mean your costs will be limited. In fact, a mobile business might be more costly to operate.

You’ll need to consider the costs of your units themselves, how you will deliver them, and the employees required to drop off and pick up units when they are no longer needed.

You’ll also need space to store units if they are not currently being used.

Conclusion: Is a Storage Unit Business Right For You?

Growing a storage unit business can be extremely lucrative and offer an excellent passive income stream for your finances.

While the upfront costs can be somewhat restricting for larger complexes, you can always get started by building a storage unit on your personal property.

The amount of money you can make renting storage units is limited to the number of units you have available, meaning your limit is essentially endless.

Like any business, starting a storage unit business won’t be easy, but it can be extremely worthwhile.

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How Much Does it Cost to Start a Storage Unit Business?

Are you considering starting a storage unit business but wondering about the costs involved? The initial investment can vary greatly — influenced by factors like location, size, amenities, and operational expenses. This article will guide you through the financial aspects, whether you’re planning a small-scale operation or a larger franchise . 

We’ll break down the key elements that determine start-up costs, providing you with the insights needed to make informed decisions and manage your business effectively. When you’re ready, let’s explore what it takes financially to launch your storage unit venture.

Analyzing the Market

When entering the storage unit business, a thorough market analysis is key. This process involves a deep dive into various aspects, starting with the evaluation of construction and development costs. But that’s not all: it’s equally important to understand your target market. You need to be aware of rental price trends, which can have a significant impact on your income.

Factors such as expected occupancy rate and potential profit margin are also important metrics to consider. These indicators influence your financial projections and your business model that aligns with your goals and market conditions.

In addition to the numbers, a SWOT analysis — the assessment of strengths, weaknesses, opportunities, and threats — provides a comprehensive overview of your business landscape.

Creating a Business Plan

Creating a business plan for a warehouse is an important step that requires close attention to several factors that affect the overall cost. To develop a comprehensive business plan, consider the following steps:

• Location Analysis : Evaluate the cost implications of different locations, considering factors like land prices, accessibility, and proximity to potential customers.
• Facility Sizing : Determine the optimal size for your facility based on market demand and budget constraints.
• Material Selection : Choose construction materials that balance cost-effectiveness with durability and security.
• Business Model Development : Decide whether you’ll operate independently or as part of a franchise, and consider the cost differences between these options.
• Financial Forecasting : Prepare detailed projections of start-up costs, ongoing operational expenses, and potential revenue streams.
• Market Strategy : Develop a marketing plan tailored to your target audience, focusing on competitive pricing and visibility.
• Operational Plan : Outline day-to-day operations, including staffing, security measures, and customer service protocols.
• Risk Assessment : Identify potential risks and challenges, and devise strategies to mitigate them.

Choosing a Location

Choosing the right location for a self-storage facility requires a multi-layered analysis that begins with a market feasibility study. This study should consider demographics, site availability, competition, pricing, and special offerings such as climate control. A self-storage consultant and local broker can be invaluable in this process.

Additionally, site considerations such as accessibility, visibility, traffic volume, and proximity to potential customers are crucial. Prioritize safety to attract tenants and carefully assess land costs, aiming for them to comprise about 25%-30% of your total project budget. 

Securing Financing

Without a secure wallet, there is no cash flow , and if you want to start a warehouse business, you’ll want to find the financial foundation that will support your vision and turn your plans into reality. Here are some potential options for securing financing:

• Traditional Commercial Loan
• Real Estate Loan
• Construction Loan
• Personal Capital
• Private Investors

Identifying the Necessary Supplies

As mentioned earlier, selecting the right materials and supplies for your storage unit business is crucial, as it balances cost-effectiveness with durability and security. Here’s a list of potential necessary supplies:

• Storage Containers
• Buildings or Units
• Surveillance Cameras
• Access Control Systems
• Transport Vehicles
• Vehicle Storage Equipment
• Security Fencing
• Lighting Systems
• Office Supplies and Equipment
• Maintenance Tools and Equipment
• Signage and Marketing Materials
• Software Systems for Management and Security
• Fire Safety Equipment

Estimating the Costs

Cost estimation in the storage unit business varies significantly between constructing a new facility and taking over an existing property. New constructions typically involve higher initial investment due to land acquisition, construction, and development costs. 

In contrast, acquiring an existing facility might reduce these upfront costs but could entail renovation and modernization expenses. Additionally, operational costs including staff salaries, software for facility management, security systems, and maintenance should be factored into the budget for a realistic financial overview.

Purchasing Equipment and Supplies

Once funding is secured, purchasing equipment and supplies is a critical step. This includes acquiring storage containers, security equipment like cameras and access systems, office supplies, and potentially vehicles for transport services. 

Preparing the Facility

Preparing the facility for customers involves more than just construction and setup. It requires ensuring that all security measures are operational, the layout is customer-friendly, and the units are clean and ready for use. This stage also includes setting up office spaces, installing signage, and implementing maintenance routines. 

Establishing Policies and Procedures

Before opening your storage unit business, it’s imperative to establish clear policies and procedures. This includes drafting rental agreements, outlining move-in and move-out policies, and setting rules for facility usage. These policies should be legally vetted to protect both the business and its customers. 

Additionally, developing procedures for handling late payments, damages, and disputes is essential for smooth operation.

Advertising and Promoting the Storage Facility

With the storage facility prepped and policies in place, the next step is advertising and promoting your business to attract customers. This phase is vital for establishing your presence in the market and driving occupancy rates. From online campaigns to local community engagement, each advertising effort plays a key role in building your brand and growing your customer base.

Creating an Easy-to-Use Website

A user-friendly website is essential for attracting and retaining customers in today’s digital age. It should be intuitive, informative, and accessible, providing potential customers with all the information they need about your storage facility. 

Key components of a successful website include:

• Easy navigation and user interface
• Customer testimonials and reviews
• Online booking and payment systems
• Contact information and location details
• SEO optimization for better online visibility
• Clear and concise information about services offered

Adding Your Business to Local Directories

This step makes it easier for potential customers in your area to find your business when searching for storage solutions. Key directories to consider are:

• Google My Business
• Bing Places
• Local business chambers and directories
• Industry-specific directories

Note: Adding location-based information helps with on-page SEO (search engine optimization) to further bolster your chances of getting organic traffic. 

Local advertising can significantly increase the presence of your business in the community and attract nearby customers. It’s important to use different platforms to reach a wide audience. Some effective local advertising methods include:

• Facebook and social media ads
• Search engine advertising
• Local newspapers and magazines
• Billboards and outdoor advertising
• Community event sponsorships
• Direct mail campaigns

The Final Costs

In short, the cost of starting a storage unit business can vary greatly based on several key factors. Location plays a crucial role, as land and construction costs can vary drastically from one area to another. 

In addition, the decision between building a new facility or purchasing an existing one will affect the overall budget, with new builds usually requiring a higher initial investment.

Other variables such as the size of the facility, desired equipment, and operating costs also contribute to the final cost. So it’s important to consider these factors carefully to create a realistic financial plan for your storage unit venture, ensuring its long-term success and profitability.

How much does it cost to start a storage unit business?

The cost of starting a storage unit business can vary significantly, typically ranging from a few tens of thousands to several million dollars, influenced by factors such as location, size, and whether it involves building a new or purchasing an existing facility.

How profitable is a storage unit business?

A storage unit business can be quite profitable, especially in areas with high demand for storage. Its profitability hinges on factors like location, facility size, operational efficiency, and local market rates.

Is a self-storage facility a good investment?

Yes, a self-storage facility can be a good investment. They often offer stable revenue streams and have historically shown resilience in economic downturns, but success depends on factors such as market saturation, location, and effective management.

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How to Start a Storage Unit Business With No Money

Imagine a scenario where you could start your self storage unit business without a hefty upfront investment. Sounds like a dream? Think again!

This guide is your ticket to transforming that dream into a reality.

How To Start A Self-Storage Business With No Money

There are two paths to starting a storage unit business: the traditional way and the peer-to-peer approach. The former involves steps like finding a good location, teaming up with partners, securing funds, and marketing your facility online to attract renters.  

In a more traditional set-up, an investor would own a big piece of land dotted with rows of storage units—a hefty real estate investment when compared to starting a micro storage business.

Fortunately, you can start a storage unit business with the property you already own through a peer-to-peer storage marketplace. With this approach, you don’t need to buy or lease a storage location. Instead, you can rent out your garage , an empty drivewa y, or even an unused shed and tap into the booming storage industry through user-friendly online platforms.  

When listing unused space in your home on peer-to-peer marketplaces like Neighbor , you can turn a sizable profit without the upfront costs of purchasing land, constructing a facility, or renting an existing property.

Should you opt for the more traditional route (building an off-site storage facility from the ground up), you’ll want to follow the steps below:

Build a Blueprint for Your Self-Storage Business

A blueprint is necessary for the start of every grand trip, and this is also true for your venture into the self-storage unit industry.

This road map is your company strategy, a detailed document outlining your vision, objectives, and tactics. Think of it as the base upon which your empire will be built.

Start by asking yourself the hard-hitting questions: Who is your target market? In other words, who will be using your self-storage facility? When browsing for storage space, are people looking to store business inventory or personal possessions? How many units/renters can you feasibly manage?

Next, define the services you’ll offer once you’ve determined your target market. Will you provide various unit sizes? Climate-controlled options? With this information in hand, decide on your pricing approach and create a marketing campaign that will appeal to your target market.

Select a Location

Your storage company needs the ideal site to succeed. Aim for busy places bordered or residential areas. Ideally, look for a unit that is close to busy crossroads.

But keep in mind the competition; if there are many storage companies nearby, think about choosing a different location. Look for company visibility and accessibility. For instance, convenient entry, plenty of parking, and obvious signage can all make a big impact.

The demographics of your target customer should also be factored into this equation. Examine the local population’s age distribution, median income, and housing situation.

This knowledge will point you in the direction of places where storage business space is in the highest demand.

List your unused space

People are earning $1,000s per year from their garages and outdoor space.

Approve your renters

You're in control. Approve who rents and the hours of access.

Get paid monthly

Sit back and collect automatic payments each month.

Form Partnerships

You don’t have to start a self-storage unit business alone. Think about how collaborations can improve your ROI. A partnership can be the key factor that opens previously unimaginable avenues to achievement.

Consider the benefits of collaborating with property owners with idle land or derelict structures. These individuals may be open to transforming their underutilized assets into a revenue stream.

Such partnerships are built on the principles of shared profits and reciprocal advantages. While your partner supplies the real estate canvas, you contribute your skills in managing a self-storage unit business. This arrangement can dramatically lower your startup costs and ongoing expenses, allowing you to concentrate on providing exceptional customer service.

Look for Funding Options

How do you finance your storage unit company without a team of investors backing your vision? Fortunately, there are plenty of ways to find funds for your facility.

In Particular, CrowdFunding emerges as a ray of hope. Through websites like Kickstarter , IndieGogo , and GoFundMe , you can expand your network, increasing the likelihood of your business concept gaining traction.

Through crowdsourcing, a large number of small-scale investors can contribute to your business venture. You’ll just need to win their trust. Make a pitch that effectively communicates your vision, passion, and value. Grasp the attention of potential supporters with eye-catching graphics and a concise description of how their contributions can turn your storage unit company into a reality.

Outside of crowdsourcing, grants and loans with low interest rates are also possibilities. Governments, NGOs, and organizations routinely provide grants and loans to help small enterprises and budding business ventures.

To increase your chances of being approved, devise a well-organized business plan. Additionally, customize each application to the foundation, corporation, or government agency you’re pitching your self-storage business to.

Test the Waters with Leasing

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Leasing involves renting property or equipment from a supplier for a specified time, often for a set monthly rate. With this tactical method, you can buy the things you need without making a significant initial investment.

This approach gives you the resources you need to successfully manage your self-storage unit business. For instance, you can lease moving trucks to extend the transportation of goods or cutting-edge security systems to protect your clients’ property.

In the early phases of your business, when alterations and uncertainty are to be expected, the flexibility of leasing is a game-changer. By leasing instead of buying, you can experiment in different locations and boost cash flow.

Start your leasing journey by vetting possible leasing firms. Ensure that the leasing agreement is transparent by negotiating conditions advantageous to your company.

When launching a self-storage business and signing a leasing contract on the dotted line, transparency surrounding duration, payment terms, and any penalties is a must.

Leveraging Bartering

Bartering is a tactic that allows you to access goods and services without draining your financial resources. In this approach, you might offer space in your storage facility in return for knowledge, products, or services your company needs.

For instance, you can work with experts in those sectors who could profit from storage solutions. For example, you can offer your storage solutions to a marketing firm that needs to store its office equipment. In exchange, you can request free marketing services.  

Not only is bartering an excellent saving strategy, but also an opportunity to foster symbiotic relationships with fellow entrepreneurs.

The connections made via bartering can develop into long-term collaborations as your storage unit business expands. These alliances can boost your business performance by giving you continual assistance and access to resources such as marketing tools or legal counsel (if you partner up with a legal firm) that you would not otherwise have.

Earn $1,000s per year with your unused space

Registering your self-storage business.

As your entrepreneurial adventure progresses, you will need to properly register your storage unit business to give your concept life.

Your first creative endeavor should be picking a company name. The name should be memorable and embody the spirit of your self-storage company.

Take your time to pick the ideal name because it will serve as your company’s brand in the marketplace. However, it’s important to note that the registration procedure can change depending on where you live and the legal form your firm will take.

Typically, it entails submitting papers to the appropriate municipal or state authorities along with a registration fee. This stage establishes your company’s legal existence and gives you the privileges and obligations connected with your selected business structure.

Speaking of business structures, it’s critical to choose if your business will be a corporation, limited liability company (LLC), partnership, or sole proprietorship.

Each structure has unique tax ramifications, statutory requirements, and responsibility issues. It is wise to seek the advice of legal or commercial consultants when making a decision that will serve your long-term objectives.

Navigating the Regulations of Self-Storage Facilities

When starting a budget-friendly storage business, knowing and obeying local regulations is a smart way to avoid unexpected costs, which can include hefty fines or penalty fees.  

Starting a self-storage business could mean navigating special permissions and licenses. Failure to do so can lead to penalty charges, which can set you back financially.  

Therefore, you must hire a legal professional or a self-storage company consultant to help you understand the intricacies of permissions and licenses. This guarantees compliance and demonstrates your commitment to moral and legal business practices. 

Additionally, regulatory compliance improves public perception and customer confidence. It solidifies your moral position and sets up your self-storage business for long-term success. By deftly handling laws, you not only uphold the law but also strengthen your financial position in the cutthroat self-storage market. 

Mastering Finances

When you’re starting a budget-friendly self-storage business, keep your financial management in-house to avoid the cost of outsourcing.

With the help of accounting software, you can automate expense tracking and invoice generation. Automating these procedures will not only save you time but and reduce errors. With this extra time, you can make better decisions that help your storage business flourish.

By choosing accounting software with the optimized mobile version, you can keep your eye on your business’s finances at all times, even when traveling for business. With ready accessibility to your storage business’ financial picture, you can catch, diagnose, and troubleshoot financial issues quickly.

Remember, excessive and frivolous spending can devastate your business. So, you’ll want to catch these issues early.

To avoid costly mistakes, you’ll also want to partner with experts, like accountants or bookkeepers, who have detailed insights into taxes and business operations. While paying a professional will involve an upfront cost, these experts are worth their weight in gold, as they can show you ways to spend less money and give you advice that fits your goals. 

These experts can also help you plan out how to pay taxes in a smart way. This way, you can save money, which you can use to make your business even better.

Invest in Business Insurance

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Your entrepreneurial journey is bound to experience unanticipated turns and difficulties, such as a sudden equipment breakdown, liabilities like a customer injury on your premises, and unforeseen occurrences like supply chain disruptions due to a natural disaster.  

Here come the dream defenders: business insurance. This coverage is protection against risks that can otherwise ruin your company. It serves as your safety net, turning unanticipated difficulties into minor setbacks.

Several types of insurance are essential for your storage unit business:

1. Property Insurance

This coverage safeguards your material possessions, such as your office space and storage facilities. Property insurance aids in financial recovery in the event of loss due to fire, theft, or natural catastrophes.

2. Liability Insurance

This coverage protects you from claims of property damage or bodily harm that can take place on your business premises. Liability insurance can pay for court costs and potential settlements if a client or visitor is hurt or their property is harmed while engaging with your business.

3. Workers’ Compensation Insurance

This coverage is essential if you have employees working on-site. Employees who sustain injuries while carrying out work-related duties are compensated for their medical costs and missed pay.

You can investigate the coverage alternatives that best address your company’s specific demands and hazards by speaking with insurance professionals. Paying insurance premiums is an investment in securing your company’s future.

Crafting A Marketing Plan

As your business grows, you must upgrade your marketing game. Effective marketing allows your customers to easily find your business.  

Here’s how you can create an on-budget marketing strategy:  

• Understand Your Audience: First things first, get to know your target customers. Are they into personal storage, business storage, or temporary storage? Knowing this helps you tailor your strategy.  
• Digital Outreach: Utilize affordable online platforms to market your business. These can include social platforms like LinkedIn, Facebook, and Instagram. Since these platforms are free to use, you will not have to endure any marketing costs .  
• Repurpose Content: Create tailored content for each platform. For instance, you can post video tours of your storage facility on Instagram. Similarly, you can create posts about your affordable price plans for businesses for formal platforms like LinkedIn.  
• DIY Creativity : Create marketing materials internally or hire reasonably priced freelancers. You can use free professional-grade templates with tools like Canva . 
• Client Testimonials: Encourage satisfied customers to share authentic feedback. This can help you attract more customers.  
• Strategic Networking : Leverage industry connections for expanded exposure. Reach out to influencers to promote your services or ask your clients to recommend your services for an exclusive discount.   
• Partner with Local Businesses: You can collaborate with local businesses to save costs on marketing. For instance, partnering with a moving company can help you tap into their demographic. In exchange, you can provide them with a free promotion on your social page.

What’s Next?

As you launch a storage unit business without initial capital, the journey ahead is marked by resourcefulness and strategic planning. Embrace innovative fundraising methods, such as crowdfunding. You can also leverage peer-to-peer storage with platforms like Neighbor , tapping into the power of community support.

Are storage units a good business to start?

Absolutely! The sale of storage units can be a very lucrative business. Storage units can meet the rising need for space if they are strategically located, well-marketed, and managed.

There are a host of reasons why someone might need storage: downsizing, renovations, storing business inventory, decluttering, and estate management, among others. Unlike other businesses, seasonability isn’t an issue and a steady influx of clientele is to be expected.

How profitable is a storage lot?

A storage lot’s profitability is influenced by its location, size, market demand, and operational effectiveness. Strategically located, well-managed storage facilities can bring in a lot of money.

A medium-sized storage facility with 100 units, each rented for $100 per month, would generate $120,000 in revenue annually in a hypothetical situation. However, operational costs, taxes, and other expenses must be considered to calculate the true net profit.

Are storage units passive income?

While renting out storage space might be a relatively passive source of income, it does need constant administration and upkeep. Once functioning, storage units are a type of semi-passive income since they can provide money without continual day-to-day engagement.

However, running a successful storage unit business requires managing client inquiries, guaranteeing security, carrying out routine maintenance, and dealing with any problems that can emerge.

Is self-storage a good investment?

If well-executed, investing in self-storage can be grossly profitable. Self-storage company is a desirable alternative for investors because of the rising need for storage space, the opportunity for recurrent income, and reasonably steady performance during economic downturns.

 However, successful business operations depend on extensive market analysis, smart site selection, successful marketing, and vigilant management. Before investing, it’s critical to evaluate your risk tolerance.

What permits and licenses are required to start a storage unit business?

The permits and licenses you need depend on your location and local regulations. Generally, you’ll require business licenses, zoning approvals, and possibly building permits. Consult your local authorities or a legal professional to ensure you’re compliant with all necessary requirements.

How can I ensure the security of my storage units?

Security is paramount for customer trust. Implement access control systems, surveillance cameras, proper lighting, and secure locks. Regular facility inspections and prompt addressing of any security concerns can contribute to maintaining a safe environment for your customers’ belongings.

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Despite pushback from community, plan to bring storage unit to san marco moves forward.

Aaron Farrar , News4Jax reporter

JACKSONVILLE, Fla. – A controversial plan to bring a storage unit to San Marco advanced Tuesday night when the city’s land use and zoning committee voted 4 to 3 in favor of the project.

The plan, which has received a lot of pushback from the community, will now head to the Jacksonville City Council for a final decision.

Some very vocal neighbors live near Hendricks Avenue and River Place Boulevard, which is in the general area where the storage facility would built.

Several people who do not want the storage facility have not been shy about sharing their feelings on the proposed project.

Along Hendricks Avenue near the intersection of RiverPlace Boulevard, there is a banner hanging that reads: “Say No to Self-Storage in San Marco!”

A blueprint of the storage unit was revealed during Tuesday’s meeting, along with renderings.

It would have 10 floors for storage, shopping, parking and even apartments.

Neighbors who are fighting to stop the project say it would ruin the charm of the neighborhood, affect their safety, create traffic problems and take away walkability.

Jon Livingston, who lives in San Marco, spoke at the meeting.

“You want to believe that the government is doing the right thing for the constituents,” Livingston said. “But unfortunately, lobbyists are winning. So it is frustrating.”

Start your morning with our daily forecast, trending news and stories curated by The Morning Show team.

Livingston said he is disappointed by the board’s decision to move forward with the project.

“Think about what you want this future of Jacksonville to be,” he said. “Do you really want self-storage, something that you voted against in 2019 to not be in the area? Do you want that to be a new use for the area? This gives an open door to other self-storage units not only on the Southbank but also in downtown across the river. We really want to go down that road?”

Some are in favor of the facility and don’t think the project is as bad for the neighborhood as people are making it seem.

Allen Graetz, who spoke to News4JAX after last week’s Downtown Development Review Board meeting, is embracing the idea. He said this could be good for the area, especially the housing aspect to it.

“My concern is that we have those components so that people can enjoy being able to walk to everything that they want to walk to,” Graetz said. “I walk to the office. I walk to the grocery store. It’s great and I want others to enjoy that.”

The city council will have the final say. It is unclear when that vote might happen.

Copyright 2024 by WJXT News4JAX - All rights reserved.

About the Author

Aaron farrar.

Morning Show reporter

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SecureSpace Self Storage Is Now Available In Vista San Diego

The new opening is part of a grander plan by the company to enable more people to benefit from its facilities in California and across the country.

America - April 11, 2024 —

SecureSpace, a leading provider of high-quality self-storage solutions, is announcing the opening of a new secure storage facility in Vista, California . Customers can find the location at 220 Huff Street, offering nearby residents and businesses a convenient and secure place for their storage needs. 

“We’re delighted to be bringing SecureSpace to Vista,” the firm’s marketing strategist, Beau Thoutt, says. “The new location reflects our ongoing commitment to enable more people in California to benefit from our exceptional storage solutions. As a national business, we believe the new site will be a valuable asset to the community.”

The Vista installation in San Diego offers various unit sizes and features to meet customers’ diverse storage needs. The Vista facility’s design makes loading and unloading convenient, reducing hassle and enabling people to move their belongings fast. Clients can choose from climate-controlled lock-ups to protect sensitive belongings (such as artwork) or get convenient drive-up units for vehicular access. 

SecureSpace’s new location also boasts state-of-the-art security measures. The company has installed twenty-four-seven camera monitoring, a robust perimeter defense, and toughened locking mechanisms for peace of mind. 

“The new Vista facility is suitable for practically anyone,” Thoutt confirms, “whether customers are business owners looking for extra inventory space or students looking for temporary storage for their belongings during the summer break. We advise people to talk to our friendly staff to help them find the right-sized units and answer their questions.”

This recent opening by SecureSpace is part of a broader plan to roll out more sites across California and America. In May 2024, the company plans to open locations in Los Angeles, Martinez, Santa Fe Springs, and Signal Hill, followed by additional sites in San Jose, Kapolei, Plainfield, and Vallejo in June. 

“The Vista, San Diego, opening is one of many we plan this year,” Thoutt says. “Despite a competitive market, we continue to do more business due to our unique approach to self-storage.”

The most popular unit sizes at the new location are 5x5, 5x10, and 10x10 feet. Customers may need to take out insurance when taking out a lease. 

For more information about SecureSpace, use the contact details below:

Contact Info: Name: Beau Thoutt Email: Send Email Organization: SecureSpace Address: 220 Huff St, Vista, CA 92083 Phone: (760) 284-5682 Website: https://securespace.com

Release ID: 89126811

Should there be any problems, inaccuracies, or doubts arising from the content provided in this press release that require attention or if a press release needs to be taken down, we urge you to notify us immediately by contacting [email protected]. Our efficient team will promptly address your concerns within 8 hours, taking necessary steps to rectify identified issues or assist with the removal process. Providing accurate and dependable information is central to our commitment.

A new wholesale distribution center (DC) will be built in the Moscow region (Russia)

The construction of an export-oriented wholesale distribution center (DC) for storage and processing of agricultural products has begun in the city of Elektrostal, Moscow Region (Russia This is reported by the Minister of Agriculture and Food of the Moscow Region , Sergei Voskresensky on the website of Ministry of Agriculture of the Russian Federation.

“A large investment project for the construction of an export-oriented wholesale distribution center for storage and processing of agricultural products is being implemented by the “Freshistoria” company. The volume of investments will amount to over 1.1 billion rubles. The total area of ​​the center will be about 20 thousand square meters. More than 180 new jobs will be created,” Sergei Voskresensky said.

The project involves the construction of cold storage units for strawberries, mushrooms, tomatoes, cucumbers, freezer units for storing frozen products such as fish and meat and warehouses for dry products, auxiliary and technical premises. The center will provide services for sorting, processing and packaging of vegetables, berries and other products, their transportation outside the Russian Federation, internal and external logistics services.

“Work is now underway to complete the development of project documentation. Construction work will begin in the second quarter of this year. The planned completion date of the facility is the second quarter of 2022,” Sergei Voskresensky noted.

The construction of the wholesale distribution center will facilitate the promotion of Russian agricultural products to foreign markets.

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Rosatom Starts Production of Rare-Earth Magnets for Wind Power Generation

TVEL Fuel Company of Rosatom has started gradual localization of rare-earth magnets manufacturing for wind power plants generators. The first sets of magnets have been manufactured and shipped to the customer.

In total, the contract between Elemash Magnit LLC (an enterprise of TVEL Fuel Company of Rosatom in Elektrostal, Moscow region) and Red Wind B.V. (a joint venture of NovaWind JSC and the Dutch company Lagerwey) foresees manufacturing and supply over 200 sets of magnets. One set is designed to produce one power generator.

“The project includes gradual localization of magnets manufacturing in Russia, decreasing dependence on imports. We consider production of magnets as a promising sector for TVEL’s metallurgical business development. In this regard, our company does have the relevant research and technological expertise for creation of Russia’s first large-scale full cycle production of permanent rare-earth magnets,” commented Natalia Nikipelova, President of TVEL JSC.

“NovaWind, as the nuclear industry integrator for wind power projects, not only made-up an efficient supply chain, but also contributed to the development of inter-divisional cooperation and new expertise of Rosatom enterprises. TVEL has mastered a unique technology for the production of magnets for wind turbine generators. These technologies will be undoubtedly in demand in other areas as well,” noted Alexander Korchagin, Director General of NovaWind JSC.

For reference:

TVEL Fuel Company of Rosatom incorporates enterprises for the fabrication of nuclear fuel, conversion and enrichment of uranium, production of gas centrifuges, as well as research and design organizations. It is the only supplier of nuclear fuel for Russian nuclear power plants. TVEL Fuel Company of Rosatom provides nuclear fuel for 73 power reactors in 13 countries worldwide, research reactors in eight countries, as well as transport reactors of the Russian nuclear fleet. Every sixth power reactor in the world operates on fuel manufactured by TVEL. www.tvel.ru

NovaWind JSC is a division of Rosatom; its primary objective is to consolidate the State Corporation's efforts in advanced segments and technological platforms of the electric power sector. The company was founded in 2017. NovaWind consolidates all of the Rosatom’s wind energy assets – from design and construction to power engineering and operation of wind farms.

Overall, by 2023, enterprises operating under the management of NovaWind JSC, will install 1 GW of wind farms. http://novawind.ru

Elemash Magnit LLC is a subsidiary of Kovrov Mechanical Plant (an enterprise of the TVEL Fuel Company of Rosatom) and its main supplier of magnets for production of gas centrifuges. The company also produces magnets for other industries, in particular, for the automotive

industry. The production facilities of Elemash Magnit LLC are located in the city of Elektrostal, Moscow Region, at the site of Elemash Machine-Building Plant (a nuclear fuel fabrication facility of TVEL Fuel Company).

Rosatom is a global actor on the world’s nuclear technology market. Its leading edge stems from a number of competitive strengths, one of which is assets and competences at hand in all nuclear segments. Rosatom incorporates companies from all stages of the technological chain, such as uranium mining and enrichment, nuclear fuel fabrication, equipment manufacture and engineering, operation of nuclear power plants, and management of spent nuclear fuel and nuclear waste. Nowadays, Rosatom brings together about 350 enterprises and organizations with the workforce above 250 K. https://rosatom.ru/en/

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Russia's Nuclear Fuel Cycle

(Updated December 2021)

• A significant increase in uranium mine production is planned.
• There is increasing international involvement in parts of Russia's fuel cycle.
• A major Russian political and economic objective is to increase exports, particularly for front-end fuel cycle services through Tenex, as well as nuclear power plants.

Russia uses about 5500 tonnes of natural uranium per year.

There is high-level concern about the development of new uranium deposits, and a Federal Council meeting in April 2015 agreed to continue the federal financing of exploration and estimation works in Vitimsky Uranium Region in Buryatia. It also agreed to financing construction of the engineering infrastructure of Mine No. 6 of Priargunsky Industrial Mining and Chemical Union (PIMCU). The following month the Council approved key support measures including the introduction of a zero rate for mining tax and property tax; simplification of the system of granting subsoil use rights; inclusion of the Economic Development of the Far East and Trans-Baikal up to 2018 policy in the Federal Target Program; and the development of infrastructure in Krasnokamensk.

In June 2015 Rosgeologia signed a number of agreements to expedite mineral exploration in Russia, including one with Rosatom. It was established in July 2011 by presidential decree and consists of 38 enterprises located in 30 regions across Russia, but uranium is a minor part of its interests.

Uranium resources and mining

Russia has substantial economic resources of uranium, with about 9% of world reasonably assured resources plus inferred resources up to $130/kg – 505,900 tonnes U (2014 Red Book ). Rosatom reported ARMZ resources as 517,000 tU in September 2015, mostly requiring underground mining. Historic uranium exploration expenditure is reported to have been about $4 billion. The Federal Natural Resources Management Agency (Rosnedra) reported that Russian uranium reserves grew by 15% in 2009, particularly through exploration in the Urals and Kalmykia Republic, north of the Caspian Sea.

Uranium production has varied from 2870 to 3560 tU/yr since 2004, and in recent years has been supplemented by that from Uranium One Kazakh operations, giving 7629 tU in 2012. In 2006 there were three mining projects in Russia, since then others have been under construction and more projected, as described below. Cost of production in remote areas such as Elkon is said to be US$ 60-90/kg. Spending on new ARMZ domestic projects in 2013 was RUR 253.5 million, though in November 2013 all Rosatom investment in mining expansion was put on hold due to low uranium prices.

Plans announced in 2006 for 28,600 t/yr U 3 O 8 output by 2020, 18,000t of this from Russia* and the balance from Kazakhstan, Ukraine, Uzbekistan and Mongolia have since taken shape, though difficulties in starting new Siberian mines makes the 18,000 t target unlikely. Three uranium mining joint ventures were established in Kazakhstan with the intention of providing 6000 tU/yr for Russia from 2007: JV Karatau, JV Zarechnoye and JV Akbastau (see below and Kazakhstan paper).

* See details for April 2008 ARMZ plans. In 2007 TVEL applied for the Istochnoye, Kolichkanskoye, Dybrynskoye, Namarusskoye and Koretkondinskoye deposits with 30,000 tU in proved and probable reserves close to the Khiagda mine in Buryatia. From foreign projects: Zarechnoye 1000 t, Southern Zarechnoye 1000 t, Akbastau 3000 t (all in Kazakhstan); Aktau (Uzbekistan) 500 t, Novo-Konstantinovskoye (Ukraine) 2500 t. In addition Russia would like to participate in development of Erdes deposit in Mongolia (500t) as well as in Northern Kazakhstan deposits Semizbai (Akmolonsk Region) and Kosachinoye.

*(this chart is now slightly out of date but still gives a general picture)

AtomRedMetZoloto (ARMZ) is the state-owned company which took over Tenex and TVEL uranium exploration and mining assets in 2007-08, as a subsidiary of Atomenergoprom (79.5% owned). It inherited 19 projects with a total uranium resource of about 400,000 tonnes, of which 340,000 tonnes are in Elkonskiy uranium region and 60,000 tonnes in Streltsovskiy and Vitimskiy regions. The rights to all these resources had been transferred from Rosnedra , the Federal Agency for Subsoil Use under the Ministry of Natural Resources and Environment .

JSC ARMZ Uranium Holding Company (as it is now known) became the mining division of Rosatom in 2008, responsible for all Russian uranium mine assets and also Russian shares in foreign joint ventures. In 2008, 78.6% of JSC Priargunsky, all of JSC Khiagda and 97.85% of JSC Dalur was transferred to ARMZ. In March 2009 the Federal Financial Markets Service of Russia registered RUR 16.4 billion of additional shares in ARMZ placed through a closed subscription to pay for uranium mining assets, on top of a RUR 4 billion issued in mid 2008 to pay for the acquisition of Priargunsky, Khiagda and Dalur. In November 2009 SC Rosatom paid a further RUR 33 billion for ARMZ shares, increasing its equity to 76.1%.

In 2009 and 2010 ARMZ took a 51% share in Canadian-based Uranium One Inc, paying for this with $610 million in cash and by exchange of assets in Kazakhstan: 50% of JVs Akbastau, Karatau and Zarechnoye, mining the Budenovskoye and Zarechnoye deposits. (An independent financial advisor put the value of ARMZ's stakes in the Akbastau and Zarechnoye JVs at $907.5 million.) Uranium One has substantial production capacity in Kazakhstan, including now those two mines with Karatau, Akdala, South Inkai and Kharasan, as well as small prospects in USA and Australia (sold in 2015). In 2013 ARMZ completed the purchase of outstanding shares in Uranium One Inc, and it became a full subsidiary of ARMZ. JSC Uranium One Group (U1 Group) is from December 2016 a 78.4% owned subsidiary of Atomenergoprom and apparently separate from ARMZ.

Following this, late in 2013 Rosatom established Uranium One Holding NV  (U1H) as its global growth platform for all international uranium mining assets belonging to Russia, with headquarters in Amsterdam. It lists assets in Kazakhstan, USA and Tanzania, as well as owning and managing Rosatom’s stake in Uranium One Inc. In 2013 it accounted for 5086 tU production at average cash cost of $16/lb U 3 O 8 , and reported 229,453 tU measured, indicated and inferred resources (attributable share). In 2014 it produced 4857 tU and listed resources of 177,000 tU. The company plans to extend its interests into rare earths. Its ‘strategic partner’ is JSC NAC Kazatomprom.

ARMZ remains responsible for uranium mining in Russia. At the end of 2013 it was 82.75% owned by Rosatom and 17.25% TVEL. Exploration expenditure has nearly doubled in two years to about US$ 52 million in 2008. In 2013 the government approved an exploration budget of RUR 14 billion ($450 million) through to 2020, principally in the Far East and Northern Siberia. Deposits suitable for ISL mining will be sought in the Transurals, Transbaikal and Kalmykyia. Other work will be in the Urals, Siberian, Far East Federal Districts (Zauralsky, Streltsovsky, Vitimsky and Vostochno-Zabaikalsky, and Elkonsky ore regions).

Rosgeologia, the Russian state-run geological exploration services company set up in 2011, has identified "promising" uranium deposits in the North-West Federal District of Russia following completion of a survey of the Kuol-Panayarvinskaya area on the border of the Murmansk region and the Republic of Karelia. It signed an agreement with Rosatom in 2015 to focus on uranium.

CJSC Rusburmash (RBM) is the exploration subsidiary of ARMZ. VNIPIPT is the subsidiary responsible for R&D and engineering of mining and processing plants.

In December 2010 ARMZ made a $1.16 billion takeover bid for Australia's Mantra Resources Ltd with a prospective Mkuju River project in southern Tanzania, which was expected in production about 2013 at 1400 tU/yr, but is now deferred. This is now under U1H.

Domestic mining

In 2009 the government accepted Rosatom’s proposal for ARMZ and Elkonsky Mining and Metallurgical Combine to set up the “open-type joint stock company” EGMK-Project. The state’s contribution through Rosatom to the EGMK-Project authorized capital will be RUR 2.657 billion, including RUR 2.391 billion in 2009 and RUR 0.266 billion in 2010. EGMK-Project is being set up to draw up the project and design documentation for Elkonsky Mining and Metallurgical Combine (see below).

The Russian Federation’s main uranium deposits are in four districts:

• The Trans-Ural district in the Kurgan region between Chelyabinsk and Omsk, with the Dalur ISL mine.
• Streltsovskiy district in the Transbaikal or Chita region of SE Siberia near the Chinese and Mongolian borders, served by Krasnokamensk and with major underground mines.
• The Vitimsky district in Buryatia about 570 km northwest of Krasnokamensk, with the Khiagda ISL mine.
• The more recently discovered remote Elkon district in the Sakha Republic (Yakutia) some 1200 km north-northeast of the Chita region.

Present production by ARMZ is principally from the Streltsovskiy district, where major uranium deposits were discovered in 1967, leading to large-scale mining, originally with few environmental controls. These are volcanogenic caldera-related deposits. Krasnokamensk is the main town serving the mines.

In 2008 ARMZ said that it intended to triple production to 10,300 tU per year by 2015, with some help from Cameco, Mitsui and local investors. ARMZ planned to invest RUR 203 billion (US$ 6.1billion) in the development of uranium mining in Russia in 2008-2015. It aimed for 20,000 tU per year by 2024. Total cost was projected at RUR 67 billion ($2 billion), mostly at Priargunsky, with RUR 4.8 billion ($144 million) there by end of 2009 including a new $30 million, 500 tonne per day sulfuric acid plant commissioned in 2009, replacing a 1976 acid plant.

Russian uranium mining

Source: 2016 ‘Red Book’ except Olovskaya and Lunnoye.

Russian uranium production, tonnes U

Trans-Ural, Kurgan region

A modest level of production is from Dalur in the Trans-Ural Kurgan region. This is a low-cost ($40/kg) acid in situ leach (ISL) operation in sandstones. About 1350 km east of Moscow, Uksyanskoye is the town supporting the Dalur mine. ARMZ’s 2008 plan had production at Dalur by acid ISL increasing from 350 to 800 tU/yr by 2019 (expanding from the Dalmatovskoye field in the Zauralsk uranium district to Khokhlovskoye in the Shumikhinsky district, then Dobrovolnoye in the Zverinogolovsky district). In 2014 JSC Dalur completed further exploration of the Khokhlovskoye deposit and increased its resources from 4700 to 5500 tonnes. A mill upgrade was started in 2016. More than half of 2016 production was from the Ust-Uksyansky part of Dalmatovskoye field.

In 2016 geological exploration at the Dobrovolnoye deposit was advanced, and a permit for development was received in June 2017, allowing construction of the pilot plant, which commenced in 2020. Its reserves are quoted as 7067 tU. After pilot operation to 2021, commercial operation is expected to maintain Dalur production at 700 tU per year to about 2025 after Dalmatovskoye and Khokhlovskoye are exhausted, reaching full capacity in 2031.

Transbaikal Chita region, Streltsovskiy district

Here, several underground mines operated by JSC Priargunsky Industrial Mining and Chemical Union ( PIMCU  – 85% ARMZ) supply low-grade ore to a central mill near Krasnokamensk. PIMCU was established in 1968, and produces some other metals than uranium. Since 2008 it has been an ARMZ subsidiary. Historical production from Priargunsky is reported to be 140,000 tU (some from open cut mines) and 2011 known resources (RAR + IR) are quoted as 115,000 tU at 0.159%U. In 2013 ‘reserves’ were quoted by ARMZ at 108,700 tonnes. Production is up to about 3000 tU/yr, about one-tenth of it from heap leaching. In 2015 production was 1977 tU and costs were reduced by 11%, so that it hoped to break even in mid-2016.

The company has six underground mines, most of them operating: Mine #1, Mine #2, Glubokiy Mine, Shakhta 6R, Mine #8 with extraction from Maly Tulukui deposit, and Mine #6 (see below). ARMZ’s 2008 plan called for Priargunsky's production to be expanded from 3000 to 5000 tU/yr by 2020.

Mine #1 production rate was increased in 2016. It is on the opposite side of the Oktyabriski settlement from mine #2 and about 2 km from it.

Mine #2 was making a loss in 2013 due to market conditions, so it was closed in order to concentrate on bringing mine #8 to full production. Stoping operations resumed in February 2015, with production target 130 tU for the year, from average grade 0.15%. It is now known as section 2 of mine #8. Some production has been exported to France, Sweden and Spain.

Mine #8 began producing in 2011, towards phase 1 target capacity of 400 t/yr by the end of 2014. The total cost of development is expected to be RUR 4.8 billion (RUR 3.5 billion for phase 1). Production was increased 22% in 2016.

Mine #6  will access the Argunskoye and Zherlovoye deposits which comprise 35% of the Streltsovskoye reserves of 40,900 tU, with much higher grade (0.3%U) than the rest. Production cost from mine #6 is projected at $90/kgU. Future plans for Priargunsky are focused on development of mine #6, official construction of which commenced in 2018.

Development began in 2009 for stage 1 production from 2015 to reach full capacity in 2019, but this was put on hold in 2013. In March 2015 ARMZ said it hoped to find co-investors in the project, and federal funds might be forthcoming. Then in June 2015 Rosatom’s Investment Committee decided to finance the development. In August 2016 ARMZ said that RUR 27 billion was required to enable 2022 commissioning. In March 2018 a new financing arrangement was announced to the extent of RUR 18.5 billion, with Priargunsky to own 51% of the project and ARMZ 49% directly. Most of the project financing – RUR 16.1 billion – would be from China National Nuclear Corporation (CNNC), with the balance of RUR 2.5 billion from a new Russia-China Investment Fund for Regional Development (RCIF) “as a first step in widening cooperation” with China. According to the Russian Gazette (quoted by Platts Nuclear Fuel ), CNNC’s investment would give it a 49% stake in the joint venture, entitling it to that proportion of annual production. Construction recommenced in March 2018, aiming for first production in 2023, ramping up to full capacity of 1800 tU/yr by 2026. Rosatom reported that the Mine #6 development project is supervised by the government of Zabaikalsky Krai.

Mine #4. Mining the Tulukuy pit of Mine #4 ceased in 1991 due to low grades, but now low-cost block-type underground leaching is ready to be employed in the pit bottom to recover the remaining 6000 tU. Following this the pit will be filled with low-grade ore for heap leaching.

A re-evaluation of reserves in 2012 suggested that mineable resources apart from Mine #6 amounted to only 32,000 tU. Mine #8 resources were quoted at 12,800 tU in December 2012. In 2014 PIMCU, as part of the Kaldera project, identified four promising areas over 100 sq km in the Streltsovskoye ore field, with resources estimated at 80,000 tU, and they will be explored over 2015-17.

In 2014 PIMCU completed an upgrade of its sulfuric acid plant to take daily production from 400 to 500 tonnes, for use in both the conventional mill and in underground and heap leaching. Also the mill (hydrometallurgical plant) process was improved.

There is a legacy environmental problem at Priargunsky arising from 30 waste rock and low-grade ore dumps as well as tailings. Rehabilitation of waste rock dumps and open pits is proceeding and low-grade ores are being heap leached. Dams and intercepting wells below the tailings dams with hydrogeological monitoring and wastewater treatment is addressing water pollution. Final rehabilitation of the impacted areas will occur after final closure takes place. In 2016 ARMZ announced a new heap leaching initiative for very low-grade ores stockpiled on the surface, to produce 50 to 63 tU/yr.

In 2006 Priargunsky won a tender to develop Argunskoye and Zherlovoye deposits in the Chita region with about 40,000 tU reserves. Dolmatovsk and Khokhlovsk have also been identified as new mines to be developed (location uncertain).

Development of Olovskoye and Gornoye deposits* in the Transbaikal region near Priargunsky towards Khiagda would add 900 tU/yr production for RUR 135 billion ($5.7 billion). Measured resources together are 12,200 tU and inferred resources 1600 tU, all at 0.072% average (JORC-compliant). In 2007 newly-formed ARMZ set up two companies to undertake this, and possibly attract some foreign investment:

• Gornoye Uranium Mining Company (UDK Gornoye) to develop the Gornoye and Berezovoye mines in the Krasnochikoysky and Uletovsky districts in Chita, with underground mining and some heap leach (ore grade 0.226%U) originally to produce 300 tU/yr from 2014, but now anticipating up to 1000 tU/yr from 2025.
• Olovskaya Mining & Chemical Company to develop the Olovskoye deposits in the Chernyshevsk district of Chita region with underground, open cut and heap leach to produce 600 tU/yr from 2016.

The 2016 Red Book noted that UDK Gornoye was undertaking pilot mining project design for the Berezovoye deposit.

* 2006 plans were for 2000t/yr at new prospects in Chita Region and Buryatia (Gornoye, Berezovoye, Olovskoye, Talakanskoye properties etc.), plus some 3000t at new deposits.

Buryatia, Vitimsky district

JSC  Khiagda 's operations are at Vitimsky in Buryatia about 570 km northwest of Krasnokamensk, serving Priargunsky's operations in Chita region, and 140 km north of Chita city. They are starting from a low base – in 2010 production from the Khiagdinskoye ore field was 135 tU, rising to 440 tU in 2013 (fully utilising the pilot plant) and targeting 1000 tU/yr from 2018 with a new plant. These are a low-cost (US$ 70/kgU) acid in situ leach (ISL) operations in sandstones, and comprise the only ISL mine in the world in permafrost. Groundwater temperature is 1-4°C, giving viscosity problems, especially when winter air temperature is -40°C. The main uranium mineralisation is a phosphate, requiring oxidant addition to the acid solution. In the Khiagdinskoye field itself there are eight palaeochannel deposits over 15 x 8 km, at depths of 90 to 280 metres (average 170 m). Single orebodies are up to 4 km long and 15 to 400 m wide, 1 to 20 m thick.

JSC Khiagda has resources of 55,000 tU amenable to ISL mining, with resource potential estimated by Rosatom of 350,000 tU, giving a mine life of over 50 years. In 2015 ‘reserves’ were quoted by ARMZ at 39,300 tonnes U. The 2008 ARMZ plan envisaged production from JSC Khiagda's project increasing to 1800 tU/yr by 2019, but in 2013 the higher target was postponed. The 2018 plan is now 1000 tonnes. In 2014 JSC Khiagda continued construction of the main production facility and on the sulfuric acid plant, the first stage of which was commissioned in September 2015. Its final design capacity is 110,000 t/yr.

JSC Khiagda is currently mining uranium from the Khiagdin and Istochnoy deposits of the Khiagda ore field. Preparatory work for mining operations at the Vershinny deposit is under way. In May 2018, JSC Khiagda announced that engineering and geological surveys ahead of the construction of mining facilities was under way at Kolichikan and Dybryn deposits. The other two fields in the immediate vicinity are Namaru and Tetrakhskoye. All these deposits occur over an area about 50 x 20 km. There are also plans to install plant for extracting rare earth oxides (REO) as by-product. The nearest towns are Romanovka, 133 km north of Chita, and Bagdarin.

Sakha/Yakutia, Elkon district

ARMZ’s long-term hope is development of the massive Elkon project with several mines in the Sakha Republic (Yakutia) some 1200 km north-northeast of the Chita region. The Elkon project is in a mountainous region with difficult climate conditions and little infrastructure, making it a challenging undertaking. Production from metasomatite deposits is planned to ramp up to 5000 tU/yr over ten years, for RUR 90.5 billion ($3 billion), and 2020 start up was envisaged, but this is now "after 2030". Elkon is set to become Russia's largest uranium mining complex, based on resources of over 270,000 tU (or 357,000 tU quoted by Rosatom in 2015). It will involve underground mining, radiometric sorting, milling, processing and uranium concentrate production of up to 5000 tU/yr.

Elkon Mining and Metallurgical Combine (EMMC) was set up by ARMZ to develop the substantial Elkonsky deposits. The Elkon MMC project involves the JSC Development Corporation of South Yakutia and aims to attract outside funding to develop infrastructure and mining in a public-private partnership, with ARMZ holding 51%. Foreign equity including from Japan, South Korea and India is envisaged, and in March a joint venture arrangement with India was announced. The Elkon MMC developments are to become “the locomotive of the economic development of the entire region”, building the infrastructure, electricity transmission lines, roads and railways, as well as industrial facilities, from 2010. Of 15 proposed construction sites, three have been tentatively selected: at the mouth of Anbar River, Diksi Village and Ust-Uga Village. The building of four small floating co-generation plants to supply heat and electricity to northern regions of Yakutia is linked with the Elkon project in southern Yakutia.

There are eight deposits in the Elkon project with resources of 320,000 tU* (RAR + IR) at average 0.146%U, with gold by-product: Elkon, Elkon Plateau, Kurung, Neprokhodimoye, Druzhnoye (southern deposits), as well as Yuzhnaya, Severnaya, Zona Interesnaya and Lunnoye (see below). In mid-2010 ARMZ released JORC-compliant resource figures for the five southern deposits: 71,300 tU as measured and indicated resources, and 158,500 tU as inferred resources, averaging 0.143%U. ARMZ pointed out that the resource assessment against international standards will increase the investment attractiveness of EMMC. However, in September 2011 ARMZ said that production costs would be US$ 120-130/kgU, which would be insufficient in the current market, and costs would need to be cut by 15-20%.

* 257,800 tU of this was in the five southern deposits. The 2011 Red Book gives 271,000 tU resources for Elkon, or 319,000 tU in situ.

First production from EMMC was expected in 2015 ramping up to 1000 tU/yr in 2018, 2000 tU/yr in 2020 and 5000 tU/yr by 2024 based on the southern deposits as well as Severnoye and Zona Interesnoye. This schedule has slipped by at least ten years. Also, it is remote, and mining will be underground, incurring significant development costs. ARMZ and EMMC are seeking local government (Sakha) support for construction of main roads and railways to access the Elkon area, and make investment there more attractive.

JSC Lunnoye was set up by ARMZ at the same time as EMMC to develop a small deposit jointly by ARMZ (50.1%) and a gold mining company Zoloto Seligdara as a pilot project to gain practical experience in the region in a polymetallic orebody. Lunnoye is expected in full production in 2016, reaching 100 tU/yr. It has reserves of 800 tU and 13 t gold, and is managed by Zoloto Seligdara. ARMZ in mid 2011 expressed impatience with the rate of development.

Further mine prospects

The Federal Subsoil Resources Management Agency (Rosnedra) was transferring about 100,000 tonnes of uranium resources to miners, notably ARMZ, in 2009-10, and 14 projects, mainly small to medium deposits, were prepared for licensing then. They are located mainly in the Chita (Streltsovskiy district), Trans-Ural (Zauralskiy district) and Buryatia (Vitimskiy district) uranium regions.

The projects prepared for licensing include:

• Chita Oblast – Zherlovskoye, Pyatiletnee, Dalnee and Durulguevskoye.
• Republic of Buratiya – Talakanskoye, Vitlausskoye, Imskoye, Tetrakhskoye, and Dzhilindinskoye.
• Kurgan Oblast – Dobrovolnoye (now licensed).
• Khabarovsk Krai – Lastochka.
• Republic of Tyva – Ust-Uyuk and Onkazhinskoye.
• Republic of Khakassia – Primorskoye.

All together these projects have 76,600 tonnes of reasonably assured and inferred resources, plus 106,000 tonnes of less-certain 'undiscovered' resources.

Rosnedra published a list of deposits in the Republic of Karelia, Irkutsk Region and the Leningrad Region to be offered for tender in 2009. In particular, Tyumenskiy in Mamsko-Chuiskiy District of Irkutsk Region was to be offered for development, followed by Shotkusskaya ploshchad in Lodeinopolsky District of Leningrad Region. In Karelia Salminskaya ploshchad in Pitkyaranskiy District and the Karku deposit were offered. None of these 2009 offerings had reasonably assured or inferred resources quoted, only 'undiscovered' resources in Russia's P1 to P3 categories and it appears that none were taken up. In 2016 the Karelia Ministry of Natural Resources and Ecology acknowledged only one uranium deposit “of no commercial interest” at Srednyaya Padma (Medvezhegorsk District) and announced that no mining was planned.

Foreign and private equity in uranium mining

In October 2006 Japan's Mitsui & Co with Tenex agreed to undertake a feasibility study for a uranium mine in eastern Russia to supply Japan. First production from the Yuzhnaya mine in Sakha Republic (Yakutia) is envisaged for 2009. Mitsui had an option to take 25% of the project, and was funding $6 million of the feasibility study. Construction of the Yuzhnaya mine was estimated to cost US$ 245 million, with production reaching 1000 tU/yr by 2015. This would represent the first foreign ownership of a Russian uranium mine. However, according to the 2016 Red Book , Yuzhnaya now appears to be part of the Elkon project (see above).

Following from previous deals with Tenex, in November 2007 Cameco signed an agreement with ARMZ. The two companies are to create joint ventures to explore for and mine uranium in both Russia and Canada, starting with identified deposits in northwestern Russia and the Canadian provinces of Saskatchewan and Nunavut.

In addition to ARMZ, private companies may also participate in tenders for mining the smaller and remote uranium deposits being prepared for licensing in Russia. ARMZ is open to relevant investment projects with strategic partners, and Lunnoye deposit is an example where a private company Zoloto Seligdara is partnering with ARMZ.

Mine rehabilitation

Some RUR 340 million (US$10m) is being allocated in the federal budget to rehabilitate the former Almaz mine in Lermontov, Stavropol Territory, in particular Mine 1 on Beshtau Mountain and Mine 2 on Byk Mountain, as well as reclamation of the tailings dump and industrial site of the hydrometallurgical plant. The work will be undertaken by Rosatom organizations under Rostechnadzor. In 2008, rehabilitation of Lermontovsky tailings was included in a federal target program, and over RUR 360 million was allocated for the purpose.

Secondary supplies

Some uranium also comes from reprocessing used fuel from VVER-440, fast neutron and submarine reactors - some 2500 tonnes of uranium has so far been recycled into RBMK reactors.

Also arising from reprocessing used fuels, some 32 tonnes of reactor-grade plutonium has been accumulated for use in MOX. Added to this there is now 34 tonnes of weapons-grade plutonium from military stockpiles to be used in MOX fuel for BN-600 and BN-800 fast neutron reactors at Beloyarsk, supported by a $400 million payment from the USA. Some of this weapons plutonium may also be used in the MHR high-temperature gas-cooled reactor under development at Seversk, if this proceeds.

About 28% of the natural uranium feed sent to USEC in USA for enrichment, and contra to the LEU supplied from blended-down Russian military uranium, is being sent to Russia for domestic use. The value of this to mid 2009 was US$ 2.7 billion, according to Rosatom. See also Military Warheads as Source of Fuel paper.

Russia's uranium supply is expected to suffice for at least 80 years, or more if recycling is increased. However, from 2020 it is intended to make more use of fast neutron reactors.

Fuel Cycle Facilities: conversion & enrichment

Many of Russia's fuel cycle facilities were originally developed for military use and hence are located in former closed cities (names bracketed) in the country. In October 2015 the ministry of economic development moved to open four of these which host facilities managed by Rosatom: Novouralsk, Zelenogorsk, Seversk and Zarechny.

In 2009 the conversion and enrichment plants were taken over by the newly-established JSC Enrichment & Conversion Complex, and in 2010 this became part of TVEL , a subsidiary of Atomenergoprom.

Seversk in Western Siberia is a particular focus of new investment, with Rosatom planning to spend a total of RUR100 billion on JSC Siberian Chemical Combine (SCC, SGChE) over 2012-20 to develop its “scientific, technical and production potential in terms of nuclear technology.” SCC comprises several nuclear reactors and plants for conversion, enrichment, separation and reprocessing of uranium and separation of plutonium. In 2012 Rosatom announced that it was investing RUR 45.5 billion ($1.6 billion) in SCC at Seversk to 2017 for modernising the enrichment capacity and setting up a new conversion plant.

TVEL has decided to rationalize some of its activities at Novouralsk, setting up a scientific and production association (SPA) in 2016 to incorporate Urals Gas Centrifuges Plant (UZGT or UGCP), Novouralsk Scientific and Design Center (NSDC), Uralpribor, and Electrochemical Converters Plant (ECCP).

Russia’s total uranium conversion capacity is about 25,000 tU/yr, but only about half of this is used as of 2013.

TVEL plans to consolidate its conversion capacity at JSC Siberian Chemical Combine (SCC) at Seversk near Tomsk, where some capacity already operates. In 2012 Rosatom said it would spend RUR 7.5 billion to set up a new conversion plant at SCC Seversk, to commence operation in 2016. The new plant is designed to have a capacity of 20,000 tU per year from 2020, including 2000 t of recycled uranium. Public hearings on the project were under way in 2014. The 2015 edition of the World Nuclear Association Nuclear Fuel Report gives capacity then as 12,500 tU.

The main operating conversion plant has been at Angarsk near Irkutsk in Siberia, with 18,700 tonnes U/yr capacity – part of TVEL's JSC Angarsk Electrolysis & Chemical Combine (AECC). In anticipation of the planned new plant at SCC Seversk however, the Angarsk conversion plant was shut down in April 2014.

TVEL also had conversion capacity at Kirovo-Chepetsky Chemical Combine (KCCC) in Glazoy, which was shut down in the 1990s. Since 2009 this has been a RosRAO site, for clean-up

The Elektrostal conversion plant, 50 km east of Moscow, has 700 tU/yr capacity for reprocessed uranium, initially that from VVER-440 fuel. It is owned by Maschinostroitelny Zavod (MSZ) whose Elemash fuel fabrication plant is there. Some conversion of Kazakh uranium has been undertaken for west European company Nukem, and all 960 tonnes of recycled uranium from Sellafield in UK, owned by German and Netherlands utilities, has been converted here. UK-owned recycled uranium has also been sent there.

Uranium enrichment

Four enrichment plants totalling 24 million kg SWU/yr of centrifuge capacity operate at Novo-Uralsk (formerly Sverdlovsk-44) near Yekaterinburg in the Urals, Zelenogorsk (formerly Krasnoyarsk-45), Seversk (formerly Tomsk-7) near Tomsk, and Angarsk near Irkutsk – the last three all in Siberia. The first two service foreign primary demand and Seversk specialises in enriching reprocessed uranium, including that from western Europe. As of early 2011, all are managed by TVEL, rather than Tenex (Techsnabexport).

The Novouralsk (Novo-Uralsk) plant is part of the JSC Urals Electrochemical Combine (UECC) in the Sverdlovsk region. It has operated 8th generation centrifuges since 2003, and 9 th generation units from 2013. The fourth cascade of 9 th generation centrifuges was commissioned in August 2016. TVEL is spending RUR 42 billion on re-equipping the plant with 9 th generation units by 2019. In 2016 it was operating 6 th to 9 th generation centrifuges. The plant can enrich to 30% U-235  (for research and BN fast reactors), the others only to 5% U-235.

The TVEL-Kazakh JV Uranium Enrichment Centre (UEC) bought a 25% share of UECC and became entitled to half its output – up to 5 million SWU/yr (see below). In April 2013 the government commission for control over foreign investments approved this sale.

UECC once claimed 48% of Russian enrichment capacity and 20% of the world’s. Rosatom in 2015 applied to the government to create a territory of priority development (TPD) in Novouralsk, a special economic zone enjoying low taxes, simplified administrative procedures and other benefits.

The Zelenogorsk plant is known as the PA Electrochemical Plant (ECP) in the Krasnoyarsk region (120 km east of that city), and has ISO 14001 environmental accreditation and ISO 9001 quality assurance system. It is starting to run 9 th generation centrifuges and in 2021 commissioned its third cascade of these. In 2011 Rosatom said the plant's capacity was 8.7 million SWU/yr and it planned to increase that to 12 million SWU/yr by 2020, with a view to exporting its services. Rosatom was investing RUR 70 billion ($2.3 billion) by 2020 in developing the plant, with up to 90% of the new centrifuges installed there to make it the main enrichment plant. It is the site of a new deconversion plant (see below).

The Seversk plant is part of the JSC Siberian Chemical Combine (Sibirsky Khimichesky Kombinat – SKhK or SCC), Tomsk region, which opened in 1953. It is about 15 km from Tomsk. As well as the enrichment plant with substantial capacity for recycled uranium the site has other facilities, and several plutonium production reactors (now closed). It is starting to run 9th generations centrifuges.

Angarsk , near Irkutsk in Siberia, is part of the JSC Angarsk Electrolysis & Chemical Combine (AECC). It is the only enrichment plant located outside a 'closed' city, nor has it had any defence role, and hence it became the site of the new International Uranium Enrichment Centre (IUEC) and fuel bank. In 2014 AECC said it would retain its present capacity. In December 2014 it started to undertake enrichment of tails (depleted UF 6 ) stored onsite up to natural UF 6 levels, and expects this to continue to 2030 as a major activity.

Technology: Diffusion technology was phased out by 1992 and all plants now operate modern gas centrifuges, with fitting of 8th generation equipment now complete. New units have a service life of up to 30 years, compared with half that previously. The last 6th & 7th generation centrifuges were set up in 2005, 8th generation equipment was supplied over 2004 to 2012, and about 240,000 units per year replaced 5th generation models. (6th generation units are still produced for export to China.) Two new 9 th generation cascades were commissioned in 2015 and 10 th generation units were being tested in 2016.

While TVEL had taken over responsibility for manufacture, in 2016 Rosatom decided to combine the design and production of centrifuges at the Urals Gas Centrifuge Plant (UZGT or UGCP) in Novouralsk, as part of the scientific and production association (SPA) set up by TVEL. OKB-Nizhniy Novgorod and Cetrotech-SPb had been involved in design and manufacture. The first 9 th generation centrifuges were supplied to UECC early in 2013 from UZGT.

Tails re-enrichment: A significant proportion of the capacity of Novouralsk and Zelenogorsk plants – some 7 M SWU/yr – was earlier taken up by enrichment of tails (depleted uranium), including for west European companies Areva and Urenco. According to WNA sources, about 10,000 to 15,000 tonnes of tails per year, with U-235 assays between 0.25% and 0.40%, has been shipped to Russia for re-enrichment to about 0.7% U-235 since 1997. The tails were stripped down to about 0.10% U-235, and remain in Russia, being considered a resource for future fast reactors. The contracts for this work for Urenco and Areva ended in 2010.

A portion of the Zelenogorsk capacity, about 4.75 M SWU/yr, was taken up with re-enrichment of tails to provide 1.5% enriched material for downblending much of the Russian HEU destined for USA. It was also the site for downblending much of the of ex-weapons uranium for sale to the USA (though all the other three plants may have contributed over the 20 years).

Seversk capacity is about 3 M SWU/yr, and some recycled uranium (from reprocessing) has been enriched here for Areva, under a 1991 ten-year contract covering about 500 tonnes UF 6 . (French media reports in 2009 alleging that waste from French nuclear power plants was stored at Seversk probably refer to tails from enrichment of the recycled uranium.) It is understood to be enriching the 960 tU of reprocessed uranium from Sellafield in UK, belonging to its customers in Germany and Netherlands, sent to Elektrostal in eight shipments over 2001-09.

In 2012 Rosatom announced that it was investing RUR 45.5 billion ($1.6 billion) in SCC at Seversk to 2017 for modernising the enrichment capacity and setting up a new conversion plant.

Angarsk (AECC) is the smallest of three Siberian plants, with capacity of about 2.6 million SWU/yr. In July 2011 TVEL confirmed that there were no plans to expand it. A significant focus is tails enrichment. The International Uranium Enrichment Centre (IUEC) has been set up at Angarsk (see following IUEC section).

TVEL-Kazakh JV Uranium Enrichment Centre (UEC)

In the context of a December 2006 agreement with Kazakhstan, in 2008 Kazatomprom set up a 50-50 joint venture with Techsnabexport (Tenex) for financing a 5 million SWU/yr increment to the Angarsk plant, with each party to contribute about US$ 1.6 billion and hold 50% equity. It then appeared that initial JV capacity would be about 3 million SWU/yr, with first production in 2011. However, in 2010 Rosatom announced that this would not proceed, due to surplus world capacity, but other joint venture enrichment arrangements with Kazatomprom were offered, notably up to a 49% share in Novouralsk or Zelenogorsk.

After deciding that it would be uneconomic to expand capacity at Angarsk, in March 2011 it was announced that Kazatomprom would buy a share in Urals Electrochemical Combine (UECC) which owns the Novouralsk plant through its 50% equity in the TVEL-Kazakh JV Uranium Enrichment Centre (UEC), "instead of building new capacity at AECC" at Angarsk where UEC was originally established. In mid-2011 it was reported that Kazatomprom would acquire shares in UECC either directly (30%) or in the event as a 50% shareholder in UEC with TVEL, related to the need to enrich 6000 tU/yr. Over 2012-13 UEC acquired 25% of UECC, and UEC became operational in the second half of 2013, with access to 5 million SWU/yr – about half of UECC production. The cost of the Kazatomprom share, earlier estimated by it at $500 million, was not disclosed. The first batch of enriched uranium was shipped in November 2013. UEC share of production in 2014 was 4.99 million SWU.

Deconversion

Russia's W-ECP or W-EKhZ deconversion plant is at Zelenogorsk Electrochemical Plant (ECP). The 10,000 t/yr deconversion (defluorination) plant was built by Tenex under a technology transfer agreement with Areva NC (now Orano), so that depleted uranium can be stored long-term as uranium oxide, and hydrogen fluoride is produced as a by-product. The W1-ECP plant is similar to Areva's W2 plant at Pierrelatte in France and has mainly west European equipment. It was commissioned in December 2009 and to January 2021 had processed 100,000 t depleted uranium hexafluoride. The Russian-designed phase 2 for production of anhydrous hydrogen fluoride was commissioned in December 2010. During the ten years to end of 2020, some 11,000 t of anhydrous hydrogen fluoride as well as much more hydrofluoric acid were shipped to customers. TVEL is building a second unit, W2-ECP, with equipment from Orano Projects in France. This will expand ECP’s capacity to 20,000 t/yr depleted uranium hexafluoride from 2023 and producing up to 2400 t/yr of anhydrous hydrogen fluoride. 

Fuel fabrication

Fuel fabrication is undertaken by JSC TVEL, which supplies 76 nuclear reactors in Russia and 13 in other countries as well as 30 research reactors and fuel for naval and icebreaker reactors. Its operations are certified against ISO 9001 and it has about 17% of the world market for fabricated fuel. Russian fuel technology is supported by TVEL’s A.A. Bochvar High Technology Research Institute of Inorganic Materials ( VNIINM ).

Fuel cycles

Russia aims to maximise recycling of fissile materials from used fuel. Hence reprocessing used fuel is a basic practice, with reprocessed uranium being recycled and plutonium used in MOX, at present only for fast reactors. However, innovative developments of MOX use open up wider possibilities, and both the REMIX cycle and the Dual Component Power System are described below.

Uranium fuel fabrication

TVEL has two fuel fabrication plants with combined capacity of 2800 t/yr finished fuel:

• The huge Maschinostroitelny Zavod (MSZ) at Elektrostal 50 km east of Moscow – known as Elemash.
• Novosibirsk Chemical Concentrates Plant (NCCP) in Siberia.

TVEL's Chepetsk Mechanical Plant (CMP or ChMZ) near Glazov in Udmurtiya makes zirconium cladding and also some uranium products.

Most fuel pellets for RBMK and VVER-1000 reactors were being made at the Ulba plant at Ust Kamenogorsk in Kazakhstan, but Elemash and Novosibirsk have increased production. MSZ/Elemash produces fuel assemblies for both Russian and west European reactors using fresh and recycled uranium. It also fabricates research reactor and icebreaker fuel and in 2016 is producing the first fuel for the RITM-200 reactors in new icebreakers. VNIINM claims the fuel has greater energy density than previous icebreaker fuel.

Novosibirsk produces mainly VVER-440 & 1000 fuel, including that for initial use in China.

MSZ/Elemash is the principal exporter of fuel assemblies. Total production is about 1400 t/yr, including fuel assemblies for VVER-440, VVER-1000, RBMK-1000, BN-600 reactors, powders and fuel pellets for delivery to foreign clients. It has a contract to supply high-enriched uranium (HEU) fuel over seven years for China's first CFR600 fast reactor. The plant also produces nuclear fuel for research reactors.

TVEL is developing a uranium-erbium fuel for VVERs enriched to 5-7% for load-following and longer fuel cycles. Some RBMK fuel is already enriched over 5%.

Early in 2021 MSZ set up a new production line for fast reactor fuel, including HEU. Russia’s BN-600 reactor uses uranium fuel with three levels of enrichment: 17%, 21% and 26%. Fuel for China’s CFR600 is likely to be similar. On another production line MSZ has already provided fuel for China’s CEFR, including a 2020 reload, reported to be 64% enriched.

TVEL’s NCCP also produces pure lithium-7, and accounts for over 70% of the world supply of Li-7, both 99.95% for use in PWR cooling systems, and also now 99.99% pure. A plant upgrade in 2013 makes it possible to double the volume of Li-7 output there.

TVEL has done extensive work done on utilization of reprocessed uranium (RepU) in VVER-type reactors, and there are plans for all units of the Kola nuclear station to shift to RepU fuel. Some PWR reactors, e.g. Kalinin 2 and Balakovo 3, are using recycled uranium in TVSA fuel assemblies already.

There is no plan or provision to use MOX in light-water reactors.

TVEL owns 35% equity in the Ulba Metallurgical Plant in Kazakhstan. This has major new investment under way. It has secured both ISO 9001 and ISO 14001 accreditation. Since 1973 Ulba has produced nuclear fuel pellets from Russian-enriched uranium which are used in Russian and Ukrainian VVER and RBMK reactors. Some of this product incorporates gadolinium and erbium burnable poisons. Ulba briefly produced fuel for submarines (from 1968) and satellite reactors. Since 1985 it has been able to handle reprocessed uranium, and it has been making fuel pellets incorporating this for western reactors, supplied through TVEL.

TVEL's Moscow Composite Metal Plant designs and makes control and protection systems for nuclear power reactors.

REMIX fuel cycle

REMIX (Regenerated Mixture) fuel has been developed by the  V.G. Khlopin Radium Institute  for Tenex as a development of MOX to supply light water reactors. Remix fuel is produced directly from a non-separated mix of recycled uranium and plutonium from reprocessing used fuel, with a low-enriched uraniium (up to 17% U-235) make-up comprising about 20% of the mix. This gives fuel with about 1% Pu-239 and 4% U-235 which can sustain burn-up of 50 GWd/t over four years and has similar characteristics to normal LWR fuel. It is distinct from MOX in having low and incidental levels of plutonium – none is added. The spent Remix fuel after four years is about 2% Pu-239* and 1% U-235, and following about five years of cooling and then reprocessing the non-separated uranium and plutonium is recycled again after LEU addition. The waste (fission products and minor actinides) is vitrified, as today from reprocessing, and stored for geological disposal. Before vitrification it may be processed to recover valuable fission products such as isotopes Cs, Sr and Tc.

* a 68% increase, compared with 104% in MOX fuel cycle, according to Tenex.

Remix fuel can be repeatedly recycled with 100% core load in current VVER-1000 reactors and correspondingly reprocessed many times – up to five times, so that with fewer than three fuel loads in circulation a reactor could run for 60 years using the same fuel, with LEU recharge. As with normal MOX, the use of Remix fuel reduces consumption of natural uranium in VVERs by about 20% at each recycle as compared with open fuel cycle. Remix can serve as a replacement for existing reactor fuel, but in contrast to MOX there is a higher cost for fuel fabrication due to the high activity levels from U-232. Compared with UO 2  fuel, the cost increment is 25-30%. The Remix cycle can be modified from the above figures according to need. The increasing concentrations of even isotopes of both elements is compensated by the fresh uranium top-up, possibly at increasing enrichment levels.

A 2019 study showed that the use of regenerated uranium in Remix fuel for VVER reactors, and therefore the U-236 isotope, also significantly increases the proportion of Pu-238 in the fuel, which prevents its diversion for non-peaceful purposes.

Remix allows all the recovered uranium and plutonium to be recycled and will give a saving in used fuel storage and disposal costs compared with the once-through fuel cycle, matched by the reprocessing cost, though this is expected to reduce. Compared with the MOX cycle, it has the virtue of not giving rise to any accumulation of reprocessed uranium (RepU) or allow any separated plutonium.

Rosatom loaded three TVS-2M fuel assemblies each with six REMIX fuel rods into Balakovo 3 in June 2016. They remained for two fuel cycles, and a third 18-month cycle began in early 2020. These all showed good results, and Rosatom is now proceeding to pilot operation of several full-REMIX fuel assemblies. No changes in reactor design or safety measures are required. Remix fuel is also being tested in the MIR research reactor at RIAR in Dimitrovgrad.

Tenex suggests Remix being used with a form of fuel leasing from a supplier to a utility, with repeated recycle between them. Commercial application is planned for the mid-2020s. 

In August 2020 Rosatom announced that Remix fuel for VVER-1000 reactors would be produced on a new production line at the Siberian Chemical Plant (SCC) at Seversk from 2023. In June 2021 TVEL commissioned equipment for the pilot fuel production line, enabling initial production of fuel assemblies by year end, using fuel pellets made at the MCC Zheleznogorsk plant. Eventually a commercial-scale Remix fuel fabrication plant is envisaged.

MOX fuel fabrication (only for fast reactors)

In late 2007 it was decided that MOX fuel production using recycled materials should be based on electrometallurgical (pyrochemical) reprocessing and vibropack dry processes for fuel fabrication, as developed at RIAR. The goals for closing the fuel cycle included minimising cost, recycle of minor actinides (for burning), excluding separated plutonium, and arrangement of all procedures in remote systems to allow for 'hot' materials. However, plans for vibropack fuels are not being pursued with any vigour.

MCC Zheleznogorsk MOX plant: A 60 t/yr commercial mixed oxide (MOX) fuel fabrication facility (MFFF) commenced operation at Zheleznogorsk (formerly Krasnoyarsk-26, 70 km northeast of Krasnoyarsk) in 2015, operated by the Mining & Chemical Combine (MCC or GKhK). This was built at a cost of some RUR 9.6 billion as part of Rosatom’s Proryv, or 'Breakthrough', project, to develop fast reactors with a closed fuel cycle whose MOX fuel will be reprocessed and recycled. It represents the first industrial-scale use of plutonium in the Russian civil fuel cycle, and is also the Russian counterpart to the US MFFF for disposition of 34 tonnes of weapons-grade plutonium.* About half the plant’s equipment was imported.

* The head of Rosatom reported to the president in September 2015: “Industrial operation has begun at a new MOX fuel (uranium-plutonium fuel) production plant, the first such plant in history. Our American partners have still not managed to finish the plant they were building. They have already spent $7.7 billion on it and, as Congress informs, they are now going to suspend the project because no one knows how much more money it will cost. We built our plant in 2.5 years at a cost of a little over $200 million, or 9.6 billion rubles. The plant is working and is now reaching industrial capacity.”

MCC’s MFFF will make 400 pelletised MOX fuel assemblies per year for the BN-800 and future BN-1200 fast reactors. The MOX can have up to 30% plutonium. The capacity is designed to be able to supply five BN-800 units or equivalent BN-1200 capacity. First production of 20 fuel assemblies for Beloyarsk 4 was in 2015, working up to full capacity in 2017. The BN-800 each year requires 1.84 tonnes of reactor-grade plutonium recovered from 190 tonnes of used VVER fuel. The first serial batch of MOX for BN-800 passed acceptance tests in December 2018. (Plutonium from used BN fuel will be used in VVER-1000 reactors.) The MFFF is built in rock tunnels at a depth of about 200 metres.

Longer-term MCC Zheleznogorsk was intending to produce MOX granules for vibropacked fuel using civil plutonium oxide, ex-weapons plutonium metal and depleted uranium. Initial capacity of 14 t/yr of granules was funded to RUR 5.1 billion (US$ 169 million then) over 2010-12. The granulated MOX is sent to RIAR Dimitrovgrad for vibropacking into FNR fuel assemblies.

In June 2011 Rosatom announced that it was investing RUR 35 billion in MCC to 2030, including particularly MOX fuel fabrication. In February 2012 the figure was put at RUR 80 billion minimum.

Mayak MOX plant: A small pelletised MOX fuel fabrication plant has operated at the Mayak plant at Ozersk since 1993, for BN-350 and BN-600 fuel (40 fuel assemblies per year), and it supplied some initial pelletised MOX fuel for BN-800 start-up, the assemblies being made by RIAR Dimitrovgrad.

Seversk MOX plant: Another MOX plant for disposing of military plutonium is planned at Seversk (Tomsk-7) in Siberia, to the same design as its US equivalent. This is for dense MOX fuel for fast reactors, and was planned for completion by the end of 2017, with RUR 5.8 billion allocated by TVEL for the equipment. (Seversk had the other two dual-purpose but basically military plutonium production reactors, totalling 2500 MWt. One of these – ADE4 – was shut down in April 2008, the other – ADE5 – in June 2008.)

RIAR Dimitrovgrad MOX plant: The Research Institute of Atomic Reactors (RIAR or NIIAR) at Dimitrovgrad, Ulyanovsk, has a small MOX fuel fabrication plant. This produces vibropacked fuel which was said to be more readily recycled. Under the federal target programme this was allocated RUR 2.95 billion (US$ 83 million) for expansion from 2012. Its main research has been on the use of military plutonium in MOX, in collaboration with France, USA and Japan. From 2014 the plant produced 106 fuel assemblies for Beloyarsk 4 BN-800, before MCC's MFFF took over this role.

Vibropacked MOX fuel (VMOX) was earlier seen as the way forward. This is made by agitating a mechanical mixture of (U,Pu)O 2 granulate and uranium powder, which binds up excess oxygen and some other gases (that is, operates as a getter) and is added to the fuel mixture in proportion during agitation. The getter resolves problems arising from fuel-cladding chemical interactions. The granules are crushed (U,Pu)O 2 cathode deposits from pyroprocessing. VMOX needs to be made in hot cells. It has been used in BOR-60 since 1981 (with 20-28% Pu), and tested in BN-350 and BN-600 as part of a hybrid core (with some military plutonium). This was evaluated by OKBM and Japan Nuclear Cycle Development Institute. However, its future is uncertain, and MOX fuel may revert to being conventional sintered pellets.

Dual-component power system MOX

Rosatom has proposed a fuel cycle involving both thermal and fast reactors, using two kinds of MOX fuel, and envisages implementing this system when the first BN-1200 reactors are online about 2027. In 2020 the first MOX using plutonium from conventional power reactors was loaded into Beloyarsk's BN-800 reactor and later in the year another 180 such fuel assemblies will be added. By the end of 2021, the reactor will fully switch to MOX fuel.

In this fuel cycle, normal thermal reactors are the primary plutonium source, but this plutonium is reactor-grade, with about one-third even-mass number non-fissile isotopes. The plutonium is mixed with deflourinated tails from uranium enrichment ( i.e. depleted uranium). Whether derived from used uranium fuel or MOX fuel, it is separated and made into MOX fuel for fast breeder reactors with not less than 1.2 breeding ratio, and the used fuel from these has a much lower proportion of even-number non-fissile plutonium isotopes.

In future this ‘clean’ or high-fissile plutonium recovered from fast reactor fuel can then made into MOX fuel for the original thermal reactors, and comprise about 30% of their fuel. The other 70% could be enriched reprocessed uranium (RepU), the depleted tails of which are also used for MOX, instead of using normal depleted uranium. Their used fuel is reprocessed to continue the dual cycle. Minor actinides are burned in the fast reactors.

One fast reactor running on 'dirty' MOX would therefore be in balance with two VVER reactors fuelled with 'clean' MOX (30% of load) and RepU oxide enriched to about 17% U-235 (70% of load) via segregated reprocessing facilities and segregated fuel fabrication.

Further details are in the information paper on Mixed Oxide Fuel .

Nitride fuel fabrication for fast reactors

Overall, RUR 17 billion is budgeted for nitride fuel development, which is mainly for the BREST-300 reactor, part of Rosatom’s Proryv or 'Breakthrough' project . Both SCC plants will be part of the Pilot Demonstration Power/Energy Complex (PDPC or PDEC) with the BREST reactor, integral to the Proryv project and approved by government decree in August 2016. The Proryv project at SCC is expected to be fully operational from 2023.

To avoid problems in reactor operation and spent fuel, nitrogen-15 is the preferred isotope. VNIINM has patented a technique for enrichment in N-15, annual demand for which is expected to be several tonnes.

SCC nitride fuel plant KEU-1: In collaboration with TVEL, the Siberian Chemical Combine (SCC) at Seversk is making test batches of dense mixed nitride uranium-plutonium (MNUP) fuel for fast reactors, essentially prototype fuel for BREST. Construction of SCC’s pilot nitride fuel plant started in March 2014 with a view to commissioning in 2017-18, in time to produce fuel for the first BREST-300 reactor, which is now expected in operation about 2024. In April 2016 Atomenergomash supplied to SCC a plant for preparation of input materials for automated fabrication of MNUP fuel for fast neutron reactors. 

SCC completed acceptance tests on the first ETVS nitride fuel assembly in September 2014, and it had further ones (ETVS-10 & 11) ready a year later, using parts supplied by VNIINM. In April 2015 the first ETVS nitride fuel assemblies were put into the BN-600 reactor at Beloyarsk for testing over three years, and by August 2015 there were nine ETVS there. In November 2015 the post-irradiation inspection of ETVS-1 after six-month storage to cool showed it to be in good shape. In April 2016 two more dense nitride fuel assemblies (ETVS-12 & 13) were delivered to Beloyarsk for irradiation in the BN-600 reactor. They were designed by VNIINM and made by SCC as prototypes for BREST-300 and BN-1200 reactors. In mid-2016 VNIINM produced two more pilot fuel assemblies, ETVS-14 & 15, with mixed nitride fuel for testing in the BN-600 reactor at Beloyarsk.  MSZ completed acceptance tests on these in August. In December 2016 SCC announced successful post-irradiation tests on ETVS fuel assemblies, confirming their suitability for BREST. ETVS-16 to 21 were scheduled for 2017. The next series of ETVS will be of a different design. By November 2020, more than 1000 MNUP fuel rods had been produced and more than 21 fuel assemblies had been irradiated in BN-600, the latest ones each with 61 fuel rods.

SCC nitride fuel plant KEU-2: SCC started construction of a second integrated experimental facility (KEU-2) in 2016, to fabricate fuel for testing in the BN-800 reactor at Beloyarsk. A U-Pu-Np nitride fuel fabrication and recycling facility is part of the Pilot Demonstration Power Complex (PDPC; Russian acronym: ODEK) at SCC. Rosatom began installing equipment here for MNUP fuel fabrication and refabrication for the BREST-300 in 2017. The main fabrication line was expected in operation in 2020, with daily production capacity of up to 60 kg of fuel, or 120 nuclear fuel assemblies, and a total of 14.7 tonnes of fuel per year.

In October 2014 SCC announced a tender for a reprocessing plant to be completed by 2018, with VNIPIET as SCC’s preferred bidder. It included a module for processing used nuclear fuel, to examine technologies VNIINM and the VG Khlopin Radium Institute have developed. VNIINM said its experiments in 2016 had confirmed for the first time that the technology used for the reprocessing of used mixed nitride fuel enables the re-use of more than 99.9% of the actinides. The actual RUR 20 billion plant is to have a capacity of 5 t/yr used fuel from the BREST-300 and 0.5 t/yr of “rejects from electrolysis process and americium-containing burning elements.” It will  commence operation about 2024, after the BREST-300 is in service. This will be part of the Pilot Demonstration Power/Energy Complex (PDPC or PDEC) with the BREST reactor.

SCC started testing three different refining technologies for the plant in 2016. The best option will be selected and used in the used fuel recycling module within PDPC. The project manager said that the refining installation “can be used as a sector-wide test-bench to deal with uranium, plutonium, and neptunium.”

Mayak nitride fuel plant: A new 14 tonne per year plant to fabricate dense mixed nitride fuel for fast neutron reactors is planned at PA Mayak, to operate from 2018. In the federal target programme to 2020, RUR 9.35 billion ($310 million) was budgeted for it. Later it may be expanded to 40 tonnes per year.

International Uranium Enrichment Centre (IUEC)

The IUEC concept was inaugurated at the end of 2006 in collaboration with Kazakhstan, and in March 2007 the International Atomic Energy Agency (IAEA) agreed to set up a working group and continue developing the proposal. In September 2007 the joint stock company Angarsk International Uranium Enrichment Centre (JSC Angarsk IUEC) was registered and a year later Rostechnadzor licensed the centre.

Late in 2008 Ukraine's Nuclear Fuel Holding Company, SC Nuclear Fuel, decided to take a 10% stake in it, matching Kazatomprom's 10%, and this was effected in October 2010. Armenia finalised its 10% share in IUEC in May 2012 (2600 shares for RUR 2.6 million). Negotiations since then have proceeded with South Africa, Vietnam, Bulgaria, UAE, Jordan, South Korea and Mongolia (in connection with Russian uranium interests there). Russia also invited India to participate in order to secure fuel for its Kudankulam plant. The aim is for Techsnabexport/TVEL eventually to hold only 51%. Each of the 26,000 IUEC shares is priced at RUR 1000.

Present equity in JSC Angarsk IUEC: TVEL 70%, Kazatomprom 10%, Ukraine State Concern Nuclear Fuel 10%, Armenia NPP 10%.

The centre is to provide assured supplies of low-enriched uranium for power reactors to new nuclear power states and those with small nuclear programmes, giving them equity in the project, but without allowing them access to the enrichment technology. Russia will maintain majority ownership. IUEC will sell both enrichment services (SWU) and enriched uranium product. Arrangements for IAEA involvement were being sorted out in 2009, and in 2010 a feasibility study commenced on IUEC investment, initially for equity in JSC Angarsk Electrolysis & Chemical Combine (AECC) so that part of its capacity supplies product to IUEC shareholders.

The existing enrichment plant at Angarsk was to feed the IUEC and accordingly was removed from the category of "national strategic installations", though it had never been part of the military programme. In February 2007 the IUEC was entered into the list of Russian nuclear facilities eligible for implementation of IAEA safeguards. The USA has expressed support for the IUEC at Angarsk. Since 2010 the facility has been under IAEA safeguards.

Development of the IUEC was envisaged in three phases:

• Use part of the existing capacity at Angarsk in cooperation with Kazatomprom and under IAEA supervision.
• Expand Angarsk capacity (perhaps double) with funding from new partners by 2017.
• Full internationalisation with involvement of many customer nations under IAEA auspices.

In 2012-13 the IUEC website said: “The JSC IUEC has been established within the Angarsk Electrolysis Chemical Complex , but it can use capacities of other three Russian combines to diversify production and optimize logistics.”

In 2016 a major customer was Ukraine’s State Concern Nuclear Fuel, which since 2012 has bought 60,000 SWU per year, proportional to its shareholding.

IUEC guaranteed LEU reserve ('fuel bank')

In November 2009 the IAEA board approved a Russian proposal to create an international guaranteed LEU reserve or 'fuel bank' of low-enriched uranium under IAEA control at the IUEC at Angarsk. This was established a year later and comprises 123 tonnes of low-enriched uranium as UF 6 , enriched 2.0-4.95% U-235 (with 40t of latter), available to any IAEA member state in good standing which is unable to procure fuel for political reasons. It is fully funded by Russia, held under safeguards, and the fuel will be made available to the IAEA at market rates, using a formula based on spot prices. Following an IAEA decision to allocate some of it, Rosatom will transport material to St Petersburg and transfer title to the IAEA, which will then transfer ownership to the recipient. The 120 tonnes of low-enriched uranium as UF 6 is equivalent to two full fuel loads for a typical 1000 MWe reactor, and in 2010 was worth some $250 million.

This initiative complements the   IAEA LEU Bank set up in Kazakhstan by making more material available to the IAEA for assurance of fuel supply to countries without their own fuel cycle facilities. The IAEA LEU Bank is located at the Ulba Metallurgical Plant (UMP) in Kazakhstan, which has 50 years of experience in handling UF 6 . A formal agreement with Kazakhstan to establish the legal framework was signed in August 2015, and the partnership agreement between the IAEA and UMP was signed in May 2016. Construction of the building with 600 m 2 storage area started in September 2016, and the facility was formally opened at the end of August 2017. It became operational in 2019, and it awarded contracts to Orano and Kazatomprom to supply it.

Used fuel and reprocessing

Russian policy is to close the fuel cycle as far as possible and utilise recycled uranium, and also to use plutonium in MOX fuel. However, its achievements in doing this have been limited – in 2011 only about 16% of used fuel was reprocessed, this being from VVER–440s, BN-600, research reactors and naval reactors. The reprocessed uranium (RepU) is mainly used for RBMK fuel. By 2030 Rosatom hopes to fully close the fuel cycle. Commercial reprocessing started in 1977, and several projects at two sites have been under way to progress this intention:

• At Mayak Production Association in Ozersk, the RT-1 spent fuel reprocessing facility was first updated and returned to service in 2016, and will then be shut down in about 2030.
• At Mining and Chemical Combine (MCC) in Zheleznogorsk, the MOX fuel fabrication plant for fast reactors was commissioned in 2015 (see above).
• At MCC the Pilot Demonstration Centre (PDC) for used nuclear fuel reprocessing was commissioned in 2015.
• At MCC the full-scale RT-2 facility would be completed by 2025 to reprocess VVER, RBMK and BN used fuel into mixed-oxide (MOX) fuel or into REMIX – the regenerated mixture of uranium and plutonium oxides.
• At MCC Zheleznogorsk the spent fuel pool storage would be supplemented by dry storage, commissioned in 2012, and MCC will become the destination for all of Russia’s used fuel.

In 2013 used fuel arisings in Russia were:

All used fuel is stored at reactor sites for at least three years to allow decay of heat and radioactivity. High burn-up fuel requires longer before it is ready to transport. At present the used fuel from RBMK reactors and from VVER-1000 reactors is stored (mostly at reactor sites) and not reprocessed. It is expected that used fuel in storage will build up to about 40,000 tonnes by the time substantial reprocessing at MCC Zheleznogorsk gets under way about 2022. The materials from this will be burned largely in fast reactors by 2050, when none should remain.

In late 2007 it was decided that MOX fuel production using recycled materials from both light water and fast reactors should be based on electrometallurgical (pyrochemical) reprocessing. The goals for closing the fuel cycle are minimising cost, minimising waste volume, recycle of minor actinides (for burning), excluding separated plutonium, and arrangement of all procedures in remote-handled systems. This reprocessing route remains to be developed.

In August 2016 a new program for management of used fuel to 2020 was announced. It provides for transport of used fuel to Mayak at Ozersk for reprocessing, or to a central storage facility at MCC Zheleznogorsk where the reprocessing plant is due to be commissioned.

RT-1 reprocessing plant, Mayak

Used fuel from VVER-440 reactors Kola 1-4 and Rovno 1-2 in Ukraine), the BN-600 (Beloyarsk) and from naval reactors is sent to the Mayak Chemical Combine's 400 t/yr RT-1 plant (Chelyabinsk-65) at Ozersk, near Kyshtym 70 km northwest of Chelyabinsk in the Urals for reprocessing.* An upgrade of the RT-1 plant to enable it to take VVER-1000 fuel was completed in 2016, and reprocessing of fuel from Rostov began late in the year. In 2017, 20 tonnes of used VVER-1000 fuel from Balakovo is to be reprocessed.

* The original reprocessing plant at the site was hastily built in the mid-1940s, for military plutonium production in association with five producer reactors (the last shut down in 1990).

The RT-1 plant started up in 1971 and employs the Purex process. Since about 2000 the plant has been extended and modified so that it can accept a wide variety of inputs, including U-Be research reactor fuel.  It had reprocessed about 5000 tonnes of used fuel to 2012 and was reported to be running at about 100 t/yr capacity, following the loss of foreign contracts. In 2015 RT-1 processed 230 tonnes of fuel, 35% more than in 2014, and its capacity is expected to reach 400 t/yr “within several years”, comprising all types from Russian designed reactors, notably VVER-1000 and RBMK. From 2017 it will also be able to reprocess uranium nitride fuel. However, after the commissioning of the RT-2 plant at MCC, it is due to be decommissioned about 2030.

About 93% of its feed to 2015 has been from Russian and Ukrainian VVER-440 reactors, about 3% from naval sources or icebreakers and 3% from the BN-600 reactor. It earlier reprocessed BN-350 used fuel. Damaged used fuel is to be reprocessed there to avoid the need for prolonged storage. In September 2015 Rosatom said that reprocessing the fuel from 201 decommissioned vessels transferred to it from the Ministry of Defence was 97% complete, and that no naval fuel remained in the Far East. Regular shipments of used submarine fuel from Andreeva Bay storage to Mayak for reprocessing commenced in mid-2017, and 22,000 naval fuel assemblies are expected to be shipped by 2024, via Murmansk.

In 2015 Mayak started reprocessing the uranium-beryllium fuel from dismantled Alfa -class submarines, as a ‘nuclear legacy project’. These unsuccessful vessels had a single reactor of 155 MWt cooled by lead-bismuth and using very highly enriched uranium – 90% enriched U-Be fuel. The experience gained with lead-bismuth eutectic is being applied in Russia’s fast reactor programme – notably BREST (since SVBR was dropped).

Recycled uranium is enriched to 2.6% U-235 by mixing RepU product from different sources and is used in all fresh RBMK fuel, while separated plutonium oxide is stored. High-level waste is vitrified and stored. There are plans to use RepU for all the Kola VVER reactors. Vitrified HLW from Ukraine’s VVER-440 used fuel is to be returned to Ukraine from 2018.

Used fuel storage capacity there is being increased from 6000 to 9000 tonnes, but will remain limited compared with Zheleznogorsk. Hence the used fuel received is usually treated fairly promptly. In 2015, 5184 RBMK used fuel assemblies were sent there from the Leningrad and Kursk plants, for storage initially.

Zheleznogorsk MCC: Pilot Demonstration Centre and RT-2 reprocessing plant

A Pilot Demonstration Centre (PDC) for several reprocessing technologies is operated by MCC at Zheleznogorsk, built at a cost of RUR 8.4 billion and completed in 2015 as a "strategic investment project". Its initial capacity with research hot cells is 10 t/yr, increasing to 100 t/yr, with later increase to 250 t/yr from 2018 as phase 2. PDC phase 2 was expected to be in full operation in 2019. It will have innovative technology including embrittlement by crystallization, and simultaneous gas, thermo and mechanical spent fuel assembly shredding. Initially it will deal with VVER-1000 fuel, later with fuel from fast reactors. It will effectively be the first stage of the large redesigned RT-2 plant at the MCC/GHK site to be operational about 2024. The cost of RepU product is expected to be some €500/kg. The PDC “can be used for demonstration of the closed nuclear fuel cycle of thermal neutron reactors running on REMIX-fuel” as well as producing MOX fuel.

The RT-2 reprocessing plant at Zheleznogorsk is now on track for completion with 700 t/yr capacity by 2025 (in addition to the 250 t/yr at PDC). Another 800 t/yr is planned by 2028. Originally it was planned to have two 1500 t/yr lines, but for some time the project was under review. Construction started in 1984 but halted in 1989 when 30-40% complete due to public opposition and lack of funds (though in 1993 it was officially reported as "under construction"). It has now been redesigned and is expected to operate from around 2025 with advanced Purex process, for both VVER-1000 and RBMK fuel, and also BN fuel. Its cost is about $2 billion, with no federal funds. The facility could form part of the new Global Nuclear Infrastructure Initiative and foreign equity in a joint stock company is being considered. (See also International Collaboration section below.)

Zheleznogorsk MCC: RBMK and VVER used fuel storage

VVER-1000 used fuel is sent to the Mining & Chemical Combine (MCC) (Gorno-Khimichesky Kombinat – GHK) at Zheleznogorsk (Krasnoyarsk-26) in Siberia for pool storage. The site is about 60 km north of Krasnoyarsk. This fuel comes from three Russian, three Ukrainian and one Bulgarian plants. A large pool storage facility was built by MCC at Zheleznogorsk in 1985 for VVER-1000 used fuel, though its 6000 tonne capacity would have been filled in 2010. The facility was fully refurbished over 2009-10, and some dry storage capacity was commissioned in 2011. In December 2009 Rostechnadzor approved pool storage expansion to 7200 tonnes and MCC sought approval to expand it to 8400 tonnes capacity to allow another 6 years input. It is now planned to expand wet storage for VVER-1000 fuel to 11,000 tonnes.

In 2012 the first stage of an 8600 tonne dry storage facility for used fuel (INF DSF-2) was commissioned at Zheleznogorsk. It was built by the E4 Group at a cost of about $500 million for the MCC/GHK. It is the largest dry storage facility in the world, holding 8129 tonnes of RBMK fuel, initially from Leningrad and Kursk power plants, followed by Smolensk. At Leningrad the fuel is cut up and put into the large containers before being shipped to MCC. RBMK fuel is not presently economic to reprocess so has been stored at reactor sites, and when transferred to MCC it is stored in hermetically sealed capsules filled with nitrogen and helium, inside a building but air-cooled.

The second stage of MCC dry storage will take VVER-1000 fuel currently in wet storage there and increase capacity to over 37,000 tonnes (26,510 t RBMK, 11,275 t VVER). MCC expects to commission it about the end of 2016. It is expected to be commissioned about the end of 2015. The original wet storage facility is to be decommissioned in 2026. Used fuel will be stored for up to 50 years, pending reprocessing. MCC has flagged the possibility of storing foreign VVER-1000 used fuel, such as that from fuel take-back arrangements linked to foreign reactor sales (initially Iran). This can be reprocessed in Russia, but the waste must be repatriated.

Bilibino's LWGR used fuel is stored at Bilibino site.

(Three decommissioned graphite-moderated reactors which principally produced military plutonium, with associated underground reprocessing plant, are also at MCC Zheleznogorsk. The huge underground complex, 200-250 m deep, was originally established in 1950 for plutonium and weapons production.)

Other reprocessing plants

At SCC Seversk a reprocessing plant for nitride fuel from BREST fast reactors is envisaged to operate from 2024, closing that fuel cycle. See above under SCC nitride fuel plant KEU-2 .

In  2016 it was announced that decommissioning of the HEU downblending and mixing plant at SCC would be completed by 2022. The plant was built in 1996 at the conversion plant in order to implement the Russia-US program for blending down high-enriched uranium from Russian nuclear weapons into low-enriched uranium for export and use in US nuclear power plants. This program concluded in 2013.

Some kind of radioactive waste processing plant is under construction at the Kursk nuclear power station, according to Nikimt-Atomstroy. A completed section, fully operational by the end of 2014, would process liquid radioactive waste. The two remaining sections of the project include a processing facility for solid radioactive waste and a storage facility.

Legacy materials

Russia has a significant amount of legacy materials, some as a result of military materials production ( e.g. slightly irradiated uranium), others from the civil fuel cycle ( e.g. reprocessed uranium), and as a result of reviews over 2006-08 these are now recognised as potentially having significant value. The total quantity is not such as to impact the civil market; there are some technical challenges ( e.g. limiting U-232 to 5 ppb in enriched RepU), and in any case Russia’s preference is to use the material domestically while making resultant expertise available internationally.

The main material not found in the civil nuclear fuel cycle is slightly irradiated uranium (SIU, 0.65% U-235) from military plutonium production with low burn-up of natural uranium, after reprocessing to separate that plutonium. If SIU is enriched, the product can readily be used in nuclear plants and the tails become DSIU, with lower content of even uranium isotopes (232, 234, 236) than normal RepU, hence more valuable.

Historically, Russian used fuel from all but VVER-1000 civil reactors has been reprocessed at Mayak to yield RepU with about 0.9% U-235. This has mostly been enriched to provide fuel for RBMK reactors, with the tails as DRepU.

Also historically, to 2000, foreign used fuel was reprocessed and the RepU blended with LEU to yield reactor fuel which was returned as if the RepU had been enriched.

In the centrifuge enrichment process, different ways of feeding cascades with both U nat and RepU and blending the product can control U-232 levels and also U-236 levels (which if over 0.1% can be compensated by higher enrichment levels). Russian enrichment plants have provision for this flexible cascading. Then blending the enriched uranium product (from SIU, DSIU or RepU) with U nat or SIU can further reduce both of these even isotopes according to customer requirements, and below the pending Russian limit of 5 ppb U-232 (now 2 ppb).

This will enable use of RepU in VVER-1000 reactors from 2021 and increase the value of Russian RepU for domestic needs. It will also mean that production and use of RepU are balanced, especially as RBMK units are decommissioned and the Mayak RT-1 plant capacity is increased to 250 t/yr and the PDC at MCC Zheleznogorsk reaches 250 t/yr.

Russia expects to have spare capacity to process foreign RepU from about 2020.

Radioactive waste

Russia's Duma passed a new Federal Law on Radioactive Waste Management in June 2011, after 19 months consideration and many amendments. It was passed by the state Council in July and then signed into law. It establishes a legal framework for radioactive waste management, provides for a national radwaste management system meeting the requirements of the Joint Convention on the Safe Management of Spent Nuclear Fuel and on the Safe Management of Radioactive Waste ratified by Russia in 2006.

In November 2015 the government approved Rosatom’s second federal target programme (FTP NRS-2) for nuclear and radiation safety for 2016 to 2030. "The key issue is the deferred liabilities accumulated during the 70 years of the nuclear industry, particularly during the time of the Soviet Union.” In the first FTP since 2008 Rosatom has completed more than was set out then, against a budget of RUR 123 billion. About 73% of the new FTP budget of RUR 562 billion will be for decommissioning commercial reactors, and the withdrawal of buildings and facilities at Mayak Production Association, Siberian Chemical Combine, Angarsk Electrolysis and Chemical Complex and Novosibirsk Chemical Concentrates Plant – facilities once involved in state defence programmes. Nearly 20% of the funding will go on creating the infrastructure required for the processing and final disposal of used nuclear fuel and radioactive waste; 5% on monitoring and ensuring nuclear and radiation safety; and 2% on scientific and technological support. About 70% of the budget is from federal funds, much of the rest from Rosatom. It will be implemented in three 5-year stages, and involves the transition to new used fuel recycling technologies to close the fuel cycle, establishing a final HLW repository, decommissioning of 82 nuclear & radiation hazardous facilities, two nuclear icebreakers and other tasks.

Rosatom and the National Operator for Radioactive Waste Management – FSUE NO RAO – is responsible for coordination and execution of works associated with radwaste management, notably its disposal. This includes military waste. The law establishes time limits for interim radwaste storage and volume limits for waste generators, and defines how they should bring waste in condition suitable for disposal and transfer it to the national operator along with payment of disposal charges. Import and export of radwaste is banned. All newly-generated waste is the responsibility of its generators who will pay for its disposal and storage, with funds accumulated in the SC Rosatom’s bank account as a special fund. However, the 2011 law did not address how to resolve property disputes in siting, nor local authority responsibilities, nor financing mechanisms for affected municipalities. In October 2014 NO RAO submitted to Rosatom proposals for changes in legislation on these matters so that it could proceed with its mandate. In 2015 RUR 6.5 billion will be paid over by various enterprises to Rosatom’s reserved fund for radioactive waste disposal, at rates set in 2013 for the period to 2017.

Rosatom plans to draft two more laws: on decommissioning and used fuel management.

FSUE RosRAO is a Moscow-based Rosatom company providing commercial back-end radwaste and decommissioning services for intermediate- and low-level waste as well as handling non-nuclear radwaste and nuclear decommissioning. It commenced operation in 2009 under a temporary arrangement pending finalisation of regulations under the new legislation, and became part of Rosatom’s Life Cycle Back-End Division (LC BED) in 2013. It incorporates Radon, and now has branches in each of seven federal districts. The Kirovo-Chepetsk branch is responsible for decommissioning that conversion plant with 440,000 tonnes of waste by 2025 at a cost of RUR 2.1 billion.

Naval waste

RosRAO’s Far East Centre for Radioactive Waste Management is DalRAO , near Vladivostok in the Maritime Territory. It has Fokino and Viluchinsk divisions or regions, and operates a long-term open-air storage facility in Razboinik Bay for reactor compartments* from dismantled submarines. The long-term storage facility was under construction from 2006 with Japanese assistance and was commissioned in 2012. It has three nuclear service ships, and the Japanese government donated a floating dock and other equipment to move the reactor compartments. RosRAO plans to have the Regional Center for Conditioning and Long-term Storage of Radioactive Waste (RAW Regional Center) here, mainly for naval waste pending handover to NO RAO. In October 2014 the last spent fuel from dismantled nuclear submarines in the Maritime Territory was dispatched to the Mayak reprocessing plant.

* In 2014 the first three were brought ashore, in 2015 RosRAO planned to move five and then raise the number to ten per year, with a total of 54 three-compartment units to be placed. 

RosRAO's Northwest Centre for Radioactive Waste Management is SevRAO , in the Murmansk region, which is engaged in remediation of the sites which were Navy Northern Fleet bases, and dismantling of retired nuclear-powered naval ships and submarines as well as nuclear service ships at several sites. Andreeva Bay is the main centre of attention today, and international funding is applied to removing its stock of used naval fuel under the Northern Dimension Environmental Partnership ( NDEP ), which was established in 2002 and is supported by many countries and the EU through the European Bank for Reconstruction and Development (EBRD). Its Nuclear Window funds work at Andreeva Bay, dismantling Lepse and the Papa -class submarine at Severodvinsk, with €165 million pledged to mid-2017.

Sayda Bay west of Murmansk was a low-level waste storage site for the navy and has become a regional radioactive waste storage centre as well as a major ship and submarine dismantling centre. After being docked for 24 years at Atomflot’s base near Murmansk, the nuclear service ship Lepse was towed to the Nerpa shipyard in Sayda Bay in 2012 and cut up on a slipway over 2013-16, leaving two problematical sections of the hull. It had served as a floating receptacle for used fuel from Russian icebreakers from 1961 to 1988, and stored damaged fuel from the Lenin . An aft section contained radioactive waste that was sent to the nearby Sayda Bay facility, and a fore section contained 639 used fuel assemblies from icebreakers, many of them badly damaged, were removed over 2019-21 inside a special structure and sent to Mayak. All this is funded internationally under the NDEP.

The old Volodarsky, used as a nuclear service ship from 1966 to 1991 and laden with a lot of low- and intermediate-level radioactive waste, anchored near Murmansk until 2013, was also towed to Sayda Bay, unloaded and then dismantled by the end of 2014. This was funded by the Russian government. Other solid radioactive waste was collected at Andreeva Bay for transport to Sayda Bay for long-term storage. A lot of submarine dismantling was undertaken at Sayda Bay, with many three-compartment reactor units now stored there on land. In August 2021 Rosatom reported that 120 out of 123 decommissioned submarines in the Arctic region had been dismantled.

Gremikha is a current naval base between Murmansk and Archangel where SevRAO is undertaking the defuelling and dismantling of 11 highly-radioactive liquid metal-cooled naval reactors from Alfa -class submarines from 2014 to 2023. After the 50-tonne reactors are removed from the hull segments shipped apparently from Sayda Bay, they are put into a hot cell and then defuelled, with the fuel loaded into containers for transport to Mayak for reprocessing. This work takes about a year for each core. Raising the scuttled K-27 submarine with similar reactors and dismantling it is pending there (see below). 

Andreeva Bay, in Litsa Fjord 55 km from the Norway border, was set up in the 1960s as a naval base for nuclear submarine refuelling. In 1982 a major leak from a used fuel pool caused the contents to be transferred to temporary and poorly engineered dry storage. Most of the used fuel from dismantled Northern Fleet submarines was stored at Andreeva Bay – some 22,000 fuel assemblies from 100 naval reactors. In 1992 Norway signed an agreement to address the nuclear legacy issues of the former Northern Fleet and the decommissioning of the nuclear submarines. Andreeva Bay was transferred to civil management in 1993 as Branch #1 of SevRAO. The strategy for removing used fuel from the original dry storage units was developed from 2002, with funding from the UK. The removal procedure included building an enclosure of the dry storage units, some of which are damaged and leaking, then transferring the fuel to new canisters, which are then put into 40-tonne casks for storage or transport. In May 2014 SevRAO signed a RUR100 million contract with Norway’s Finnmark to upgrade the Andreeva Bay dry storage facility, and this was commissioned in 2017. From 2017 to 2020 about 10,000 fuel assemblies were removed from Andreeva Bay to a storage site outside the Murmansk region for disposal.

Submarine fuel is shipped to Andreeva Bay in the 1620 dwt Rossita . This is a dedicated ship to transport up to 720 tonnes of used nuclear fuel and radioactive waste, and was built for Atomflot in Italy in 2011. The Rossita is primarily for naval waste and fuel from decommissioned submarines, and is used on the Northern Sea Route cruising between Gremikha, Andreeva Bay, Sayda Bay, Severodvinsk and other Russian facilities which dismantle nuclear submarines.  Rossita also moves casks of used submarine fuel from Andreeva Bay to the railhead at the Atomflot base at Murmansk, for transport to Mayak.

A new vessel built in Italy under a 2013 contract, the semi-submersible pontoon dock Itarus , designed to transport three-compartment units of dismantled Russian nuclear submarines for SevRAO in Sayda Bay, was delivered in 2016.

As SevRAO has made good progress, there are plans costed at €123 million to recover seven items of radioactive debris from Arctic waters, where most were dumped in Soviet times, by 2032. This includes submarine reactor compartments and two entire submarines with fuel still in their reactors – K-27 which was scuttled in 1982 in shallow water after major failure in one of its lead-bismuth cooled reactors, and K-159 which sank while under tow to decommissioning in 2003. The majority of the debris is in the eastern bays of the Novaya Zemlya, in the Kara Sea. Some is in the Barents Sea. The total radioactivity of nuclear submarines in both seas is estimated at 37 PBq.

Civil waste

RosRAO is envisaged as an international operator, providing back-end fuel cycle services globally.

The National Operator for Radioactive Waste Management ( NO RAO ) is a federal-state unitary enterprise set up in March 2012 as the national manager of Russia's used nuclear fuel and radioactive waste, including its disposal. It is the national operator for handling all nuclear waste materials and the single organisation authorised to carry out final disposal of radioactive waste, and also other related functions. Its functions and tariffs are set by government, notably the Ministry of Natural Resources. Its branches are at Zheleznogorsk in Krasnoyarsk, Seversk in Tomsk, Dimitrovgrad in Ulyanovsk and (from late 2013) Novouralsk in Sverdlovsk.

NO RAO is planning an underground research laboratory in Nizhnekansky granitoid massif near Krasnoyarsk for study into the feasibility of disposal of solid HLW and solid medium-level long-lived waste. It has called for tenders, with stage 1 to be completed by the end of 2019, and the whole project completed in 2024. See section below on High-level waste disposal, geological repositories .

The System of State Accounting and Control of Nuclear Materials and Radioactive Waste (SSAC RM&RAW) is intended to perform physical inventory testing of nuclear materials and radioactive waste at their locations, and carry out accounting and control of them at the federal, regional and departmental levels. In February 2015 Rosatom introduced an automated system for accounting and control of radwaste from more than 2000 organisations, which is to be fully implemented by the end of the year.

About 32 million cubic metres of radioactive waste is to be disposed of within the framework of NO RAO’s program at a cost of about RUR 307 billion, according to Rosatom. NO RAO’s investment program runs to 2035 and includes capital investment in infrastructure of RUR 158 billion ($4.77 billion). Owners of the radioactive waste needing disposal are to provide 80% of that money, while the remaining 20% is to come from the federal budget. In 2013, 24,000 tonnes of used fuel was reported to be awaiting reprocessing or disposal. Rosatom’s Social Council plays a major role in achieving public acceptance.

Plant 20 at PA Mayak, Ozersk, is understood to be a military plutonium processing facility employing 1900 people. There was a plan to close it down and transfer operations to the Siberian Chemical Combine at Seversk as part of restructuring the nuclear weapons complex, but this was cancelled in March 2010. In 2011 Rostechnadzor said that urgent attention was needed “to the 20 open liquid radioactive waste pools, including decommissioning those at FGUP PA Mayak as containing the highest concentration and amount of liquid radioactive waste.”

Used fuel from Russian-built foreign power and research reactors is repatriated, much of it through the port of Murmansk. Some 70 containers were unloaded and moved south by rail over 2008-2014.

High-level waste disposal, geological repositories

No repository is yet available for high-level waste. Earlier, site selection was proceeding in granite on the Kola Peninsula, and 30 potential disposal sites have been identified in 18 regions, including Siberia, the Urals, the Volga region and the Northwest federal district in order of priority. In 2003 Krasnokamensk in the Chita region 7000 km east of Moscow was suggested as the site for a major spent fuel repository.

Then in 2008 the Nizhnekansky Rock Massif at Zheleznogorsk in Krasnoyarsk Territory was put forward as a site for a national deep geological repository. Rosatom said the terms of reference for the facility construction would be tabled by 2015 to start design activities and set up an underground rock laboratory. Public hearings on the Nizhnekansky Granite Massif were held in July 2012 and in November 2013 it was identified in the Regional Energy Planning Scheme as the planned repository site. In August 2016 the Territorial Planning Scheme to 2030 confirmed the site and approved construction of repository facilities here for 4500 m 3 net of class 1 waste and 155,000 m 3 net of class 2 waste.

The National Operator for Radioactive Waste Management (NO RAO) envisages the establishment of an underground laboratory in the Yeniseysky area near Krasnoyarsk for this waste and then no less than nine years' research. It completed the design documentation for the underground laboratory in March 2015 and expects to begin construction in 2017. A decision on repository construction is due by 2025, and the facility itself is to be completed by 2035. Phase 1 of the facility is to be designed to hold 20,000 tonnes of intermediate- and high-level waste, which will be retrievable.

Low- and intermediate-level waste

These are mostly handled similarly to those in other countries. Radon has been the organisation responsible for medical and industrial radioactive waste. It has had 16 storage sites for waste up to intermediate level. Not far outside Moscow, the major Radon facility has both laboratories and disposal sites. Other near-surface storage facilities were in 2008 planned for Sosnovy Bor, Glazov, Gatchina, Novovoronezh, Kirovo-chepetsky, Murmansk, Sarov, Saratov, Bilibino, Kransokamensk, Zelenogorsk, Seversk, Dimitrovgrad, Angarsk, and Udomlya.

NO RAO is planning to establish repositories for at least 300,000 m 3 of low- and intermediate-level waste (LILW, class 3&4 radioactive waste), and these plans are to be in place by 2018. One facility would be built in each of Russia’s seven federal districts to dispose of these three waste streams. In August 2016 the Territorial Planning Scheme to 2030 approved construction of the following near-surface repository facilities:

• 100,000 m 3 LILW at Ozersk in Chelyabinsk region for Mayak.
• 200,000 m 3 LILW at Tomsk/ Seversk for SCC.
• 48,000 m 3 LILW from Urals Electrochemical Combine at Novouralsk.
• 50,000 m 3 LILW at Sosnovy Bor in the Leningrad oblast.

In December 2015 NO RAO received a licence to operate the first stage of a repository at Novouralsk. The licence permits the near-surface disposal of solid radioactive waste by its Seversk branch on behalf of the Urals Electrochemical Combine, and the first stage of 15,000 m 3 was opened in December 2016. Construction of the second stage is to start in 2017, taking capacity to 54,000 m 3 . The facility with a total final capacity of 150,000 m 3 is planned to operate until 2035. “The investments in design, operation and care & maintenance of the facility, as well as subsequent monitoring of the environment will be RUR 6 billion (US$820 million), as per preliminary estimates,” according to NO RAO.

NO RAO has received local government approval in the Chelyabinsk and Tomsk regions respectively for the final disposal of low- and intermediate-level waste (LILW) at the sites of Mayak Production Association in Ozersk, and Siberian Chemical Combine (SCC), based in Tomsk. In 2017 NO RAO said it planned a 214,000 m 3 repository near Ozersk, and 150,000 m 3 at Seversk near Tomsk, both to be built by 2021.

However, Russia has also for many years used deep-well injection for low- and intermediate-level waste from some facilities, notably Seversk, Zheleznogorsk and Dimitrovgrad. This is mainly waste from reprocessing. A Central Europe review report in 1999 said that the wells ranged from 300 up to 1500 metres deep, and that Seversk was the main site utilising the method, with 30 million cubic metres injected. This practice has delayed Russian acceptance of an IAEA standard for radioactive waste disposal, since it has no packaging or engineered barriers and relies on the geology alone for safe isolation. The new 2011 Radioactive Waste Management law said: “Underground disposal of liquid radioactive waste may be executed, in accordance with the requirements of federal regulations and rules, inside geological formations (‘collector horizons’) as limited by the bounds of the area allotted, within which liquid radioactive waste must remain localised.”

In July 2013 Rostechnadzor issued five-year licences to the three regional branches of NO RAO, for “activities associated with final disposal of liquid radioactive waste.” In the November 2013 Regional Energy Planning Scheme two active sites for deep geological disposal of liquid radioactive waste (LRW) are identified: Dimitrovgrad, Ulyanovsk oblast, on the NIIAR site 1300 km SE of Moscow, and a northern one: Zheleznogorsk, Krasnoyarsk territory in Siberia, on the MCC site. A preliminary finding of the 2013 IRRS mission from IAEA was that “License conditions related to the safety assessment and safety case of liquid radioactive waste disposal facilities should be revised.” In August 2016 the Territorial Planning Scheme to 2030 approved deep well repository for 50 million m 3 of liquid radioactive waste.

Energospetsmontazh announced in March 2015 that the trial operation of plasma-based processing of radioactive waste had started at Novovoronezh. The system is designed for plasma pyrolysis processing of solid radioactive waste of medium and low activity containing both combustible and non-combustible components.

Kyshtym accident and related pollution

There was a major chemical accident at Mayak Chemical Combine (then known as Chelyabinsk-40) near Kyshtym in Russia in 1957. This plant had been built in haste in the late 1940s for military purposes. The failure of the cooling system for a tank storing many tonnes of dissolved nuclear waste resulted in an explosion due to ammonium nitrate having a force estimated at about 75 tonnes of TNT (310 GJ). Most of the 740-800 PBq of radioactive contamination settled out nearby and contributed to the pollution of the Techa River, but a plume containing 80 PBq of radionuclides spread hundreds of kilometres northeast. The affected area was already very polluted – the Techa River had previously received about 100 PBq of deliberately dumped waste, and Lake Karachay had received some 4000 PBq. This ‘Kyshtym accident’ killed perhaps 200 people and the radioactive plume affected thousands more as it deposited particularly Cs-127 and Sr-90. It is rated as a level 6 ‘serious accident’ on the International Nuclear Event Scale, only surpassed by Chernobyl and Fukushima accidents.

Up to 1951 the Mayak plant had dumped its waste into the Techa River, whose waters ultimately flow into the Ob River and Arctic Ocean. Then they were disposed of into Lake Karachay until at least 1953, when a storage facility for high-level waste was built – the source of the 1957 accident. Finally, a 1967 duststorm picked up a lot of radioactive material from the dry bed of Lake Karachay and deposited it on to the surrounding province. It appears that some radioactive discharges into the Techa River continued, and that in particular between 2001 and 2004, some 30-40 million cubic metres of radioactive effluent was discharged near the reprocessing facility, which “caused radioactive contamination of the environment with the isotope strontium-90.” There is no radiological quantification.

The outcome of these three events made some 26,000 square kilometres the most radioactively-polluted area on Earth by some estimates, comparable with Chernobyl.

Decommissioning

Rostechnadzor oversees a major programme of decommissioning old fuel cycle facilities, financed under the Federal target program on Nuclear and Radiation Safety. The government said it planned to spend some $5 billion to 2015 on decommissioning and waste management. Since 1995 nuclear power plants have contributed to a decommissioning fund.

Several civil reactors are being decommissioned: an experimental 50 MWt LWGR type at Obninsk which started up in 1954 (5 MWe) and was the forerunner of RBMKs, two early and small prototype LWGR (AMB-100 & 200) units – Beloyarsk 1&2 – the Melekess VK-50 prototype BWR, and three larger prototype VVER-440 units at Novovoronezh, a V-210 and V-365 and a V-179. Five were shut down 1981-90 and await dismantling. The fuel has been removed from these and that from Novovoronezh has been shipped to centralised storage in Zheleznogorsk and will be stored there for about ten years before reprocessing. The Beloyarsk fuel is still onsite since reprocessing technology for it is not yet available. The plant is being dismantled, and the site is due to be clear by 2032.

Shutdown Civil Power Reactors

At Novovoronezh 1&2 a decommissioning project with partial dismantling of equipment was largely completed in 2020. The work will take several years, and buildings are likely to be re-used. In particular that portion of the site houses the district heating pumps and equipment, which provides 75% of the heat for the city, and a spare parts store for Rosenergoatom. Novovoronezh 3 was shut down in December 2016 and it will be cannibalised to keep unit 4 (also V-179) operating for up to 60 years.

In 2010 Siberian Chemical Combine (SCC) in collaboration with Rosatom set up the JSC Pilot Demonstration Center for Decommissioning of Uranium-Graphite Reactors (PDC UGR) at SCC site to implement a decommissioning concept for 13 shut-down uranium-graphite production reactors (PUGR) for military plutonium. These are at Mayak Chemical Combine at Ozersk (5), near Kyshtym, at Siberian Chemical Combine, Seversk (5), and at Mining & Chemical Combine, Zheleznogorsk (3). The last plutonium production reactor, ADE-2 at Zheleznogorsk, finally closed for decommissioning in April 2010.* The fuel has been removed from the shut-down reactors and nearly all of it has been reprocessed at Mayak and Seversk. The concept provides for building multiple safety barriers and sealing of shut-down reactors rather than their dismantling, at a cost estimated to be RUR 2 billion (US$ 67 million) each. Entombment is the option selected for EI-2, ADE-4 and ADE-5 reactors. All 13 are expected o be decommissioned by 2030. EI-2, also described as Russia’s first industrial nuclear power station since it produced power as well as military plutonium, operated to the end of 1990 and was decommissioned in 2015. In 2009 SCC won a tender to prepare for decommissioning of the four Bilibino reactors (due to close 2019-21) and two closed ones at Beloyarsk (all LWGRs).

*Russia's plutonium was produced by 13 reactors at three sites: PO Mayak in Ozersk, also known as Chelyabinsk-65 (A, AV-1-3, AI-IR); SKhK – the Siberian Chemical Combine in Seversk, also known as Tomsk-7 (ADE-3,4&5, EI-1, EI-2); and GKhK – the Mining and Chemical Combine in Zheleznogorsk, also known as Krasnoyarsk-26 (AD, ADE-1&2). The five Mayak reactors produced an estimated 31t of weapons-grade plutonium between 1948 and 1990, the five SKhK reactors produced 68t between 1955 and 2008, and the three GKhK reactors produced 46t between 1958 and 2010. Ten of these reactors were shut down between 1987 and 1992, leaving only ADE-2, 4 and 5 until 2008 & 2010. Of four heavy water reactors at Mayak (OK-180, OK-190, OK-190M and LF-2) the first was intended for plutonium production but in fact all were used for producing isotopes and tritium. LF-2 remains in operation.

In January 2014 Rosatom announced that the PDC UGR, having established its credibility and expertise, would cease to be part of SCC and become part of its new End-of-Life (EOL) Management Division, under the Federal Centre for Nuclear and Radiation Safety (FC NRS).

Three nuclear-powered icebreakers have been decommissioned: Lenin , Sibir and Arktika, also the support vessel: Lepse which held some used nuclear fuel from the Arctic fleet. Lepse was taken out of the water in October 2014 for further dismantling at the Nerpa Shipyard in Murmansk. Lenin is being turned into a museum. SevRAO, the northern branch of RosRAO, dismantles nuclear-powered naval vessels at its Sayda Bay site in Murmansk, and Atomflot is considering using it for retired icebreakers.

In 2014 the Angarsk Electrolysis & Chemical Complex (AECC) said that decommissioning of its conversion plant and diffusion enrichment plants would require RUR 20 billion ($500 million). Decommissioning the conversion capacity at Kirovo-Chepetsky Chemical Combine which was shut down in the 1990s is expected to cost RUR 2.1 billion.

Organisation

The State Corporation (SC) Rosatom is a vertically-integrated holding company which took over Russia's nuclear industry in 2007, from the Federal Atomic Energy Agency (FAEA, also known as Rosatom). This had been formed from the Ministry for Atomic Energy (Minatom) in 2004, which had succeeded a Soviet ministry in 1992. The civil parts of the industry, with a history of over 60 years, are consolidated under JSC AtomEnergoProm (AEP).

During 2008 there was a major reorganisation or "privatisation" of nuclear industry entities involving change from Federal State Unitary Enterprises (FSUE) to Joint Stock Companies (JSC), with most or all of the shares held by AtomEnergoProm. By mid August 2008, 38 of 55 civil nuclear FSUEs had been reformed. Some renaming occurred due to new restrictions on the use of "Russia" or derivatives (eg "Ros") in JSC names. In mid 2014 eight of the remaining FSUEs were designated ‘federal nuclear organisation’, including Mayak PA and MCC.

The State Nuclear Energy Corporation Rosatom (as distinct from the earlier Rosatom agency) is a non-profit company set up in 2007 to hold all nuclear assets, including more than 350 companies and organisations, on behalf of the state. In particular, it holds all the shares in the civil holding company AtomEnergoProm (AEP). It took over the functions of the Rosatom agency and works with the Ministries of Industry and Energy (MIE) and of Economic Development and Trade (MEDT) but does not report to any particular ministry. Early in 2012 the government announced that its civil divisions might be privatized, at least to a 49% share in individual entities. The total workforce is over 250,000.

SC Rosatom divisions are:

• Nuclear weapons complex.
• Nuclear & radiation safety and waste.
• Nuclear power – Atomenergoprom, Rosenergoatom.
• Applied and fundamental science, composite materials.
• Atomflot – Arctic fleet of seven nuclear icebreakers and one nuclear merchant ship.

AtomEnergoProm (Atomic Energy Power Corporation, AEP) is the single vertically-integrated state holding company for Russia's nuclear power sector, separate from the military complex. It was set up at the end of 2007 to consolidate the civil activities of Rosatom including uranium production, engineering, design, reactor construction, power generation, isotope production and research institutes in its several branches, but not used fuel reprocessing or disposal facilities. It incorporates more than 80 enterprises operating in all areas of the nuclear fuel cycle. The April 2007 Presidential decree establishing it specifies nuclear materials, which may be owned exclusively by the state, lists Russian legal entities allowed to possess nuclear materials and facilities, existing joint stock companies to be incorporated into Atomenergoprom, and lists federal state unitary enterprises to be corporatized first and incorporated into Atomenergoprom at a later stage. Exclusive state ownership of nuclear materials had been seen as a barrier to competitiveness and other Russian corporate entities will now be allowed to hold civil-grade nuclear materials, under state control.

Entities from Atomenergoprom itself down to various third-level subsidiaries will be joint stock companies eventually. Public investment in the bottom level operations is envisaged – the joint venture between Alstom and Atomenergomash to provide large turbines and generators is cited as an example.

JSC AtomEnergoProm's many entities include the following (most are JSCs):

- ARMZ Uranium Holding Co (JSC AtomRedMetZoloto) – uranium production – owns Russian mine assets. - Uranium One Group (U1 Group) – responsible for all foreign uranium mining, 78.4% owned. - Techsnabexport (TENEX) – foreign trade in uranium products and services, with North American subsidiary TENAM. - JSC Enrichment & Conversion Complex. - TVEL – conversion, enrichment and nuclear fuel fabrication. The BREST-300 reactor is being built by TVEL at SCC Seversk, apparently due to the integration of fuel cycle facilities in the project. - ASE Group is Rosatom’s engineering division, accounting for 30% of the global nuclear power plant construction market according to Rosatom. Most foreign projects are ASE's reponsibility. It now incorporates the following entities: - Atomproekt, the new name for VNIPIET (All-Russia Science Research and Design Institute of Power Engineering Technology) which since 2013 incorporates St Petersburg Atomenergoproekt (SPbAEP) – design of nuclear power projects, radiochemical plants and waste facilities. From 2015 this is part of the ASE Group. - Nizhny-Novgorod Atomenergoproekt (NN AEP or NIAEP) – power plant design, from 2012: holding company for ASE. Sometimes then known as NIAEP-ASE, but re-named Atomstroyexport in December 2016. From October 2014 this is the parent company of Moscow JSC Atomenergoproekt (AEP), so the whole entity became the ASE Group (united company NIAEP-ASE-AEP). Then in 2015 Atomproekt was added to it. - Atomstroyexport (ASE) – construction of nuclear plants abroad, merged with NIAEP in 2012. Sometimes known as NIAEP-ASE until re-named Atomstroyexport in December 2016. From the end of 2014, ASE owns all the shares in JSC Atomenergoproekt and 49% of those in NIAEP, taking them over from Atomenergoprom. - Moscow Atomenergoproekt (AEP) – power plant design, became part of NIAEP-ASE. - Energospetsmontazh – construction and assembly, also repair of nuclear plants. - Atomenergomash (AEM) – a group of companies building reactors. - OKBM Afrikantov (formerly just OKBM – Experimental Design Bureau of Machine-building – Mashinostroyeniya) at Nizhny Novgorod- reactor design and construction. - OKB Gidropress (Experimental Design Bureau pressurised water – Hydropress) at Podolsk near Moscow – PWR reactor design. - JSC Rosenergoatom (briefly Energoatom) – responsible for construction and operation of nuclear power generation. - Rusatom Overseas was established in 2011 to promote Russian nuclear technologies in world markets. After restructuring in May 2015, it is divided into two companies served by Rusatom International Network which runs Rosatom's regional offices around the world, supporting the activities of Rosatom's divisions in foreign markets, seeking new business opportunities and promoting Rosatom's products and services abroad. The two companies are:  • JSC Rusatom Energy International , 44% owned by Rosatom and 56% by Atomenergoprom. It manages foreign construction projects and operation of those nuclear power plants as a shareholder in project companies. It is a major shareholder in JSC Akkuyu Nuclear in Turkey and a 34% shareholder in Fennovoima Oy in Finland. The functions of the company include financing, construction on budget and on time, safe and efficient operation of nuclear power plants, and sale of electricity on foreign markets. • JSC Rusatom Overseas Inc , based in Moscow and responsible for promotion of the integrated offer of nuclear power plant construction projects in international markets. Its key tasks are growth of the overseas orders portfolio of Rosatom companies and retaining the leading positions of Russia in global nuclear market. It is to ensure full back-up of the customer nuclear power programmes at all stages of implementation, including financing, training, localisation of supply chain, fuel supply with take-back of used fuel for reprocessing, and decommissioning. - Rusatom Overseas Germany (RAOS Germany) in 2016 will take over the international sales and marketing activities of NUKEM Technologies GmbH in the regions outside of the Western European markets, hence bundling all international marketing activities in the nuclear back-end area and high-temperature reactor fuel with Rusatom Overseas. - Rusatom Service – coordination of servicing nuclear plants abroad, providing “customised solutions for the modernization and operating period extension of VVER-based nuclear power plants”. - Atomenergoremont – maintenance and upgrading of nuclear power plants, - NUKEM Technologies GmbH is active worldwide in management of radioactive waste and spent fuel, and decommissioning of nuclear facilities. NUKEM Technologies Engineering Services GmbH focuses on engineering. Both are wholly-owned subsidiaries of JSC Atomstroyexport, and from 2016 are apparently part of Rusatom Overseas. - Research & Development Institute for Power Engineering (NIKIET) at Moscow – power plant design (originally: submarine power plants) - Central Design Bureau for Marine Engineering (CDBME) of the Russian Shipbuilding Agency – involved in some reactor design. - JSC State Specialised Design Institute (SSDI or GSPI) was a direct subsidiary of Atomenergoprom set up in 1948 for producing plutonium but now designing SMRs.

Electricity:

JSC Rosenergoatom is the only Russian organization primarily acting as a utility operating nuclear power plants. It was established in 1992 and reorganized in 2001 and then in 2008 as an open JSC. From December 2011 JSC Atomenergoprom holds 96% of the shares, and SC Rosatom (which owns Atomenergoprom) holds 4%. Rosenergoatom owns all nuclear power plants, both operating and under construction.

InterRAO UES was formerly a joint venture of Rosenergoatom and RAO UES, the utility which was broken up in mid 2008. It is now 57.3% owned by Rosatom and focused on electricity generation in areas such as Armenia and the Kaliningrad part of Russia, as the country's exporter and importer of electricity. It has 8 GWe of generating plant of its own and plans to increase this to 30 GWe by 2015, with the Baltic nuclear plant at Kaliningrad as an early priority. It heads a group of over 20 companies located in 14 countries, involving 18 GWe of capacity. Inter RAO-WorleyParsons (IRWP, with Inter RAO 51%) was set up in mid 2010 to work on the transfer of power engineering technology into Inter RAO's market and to promote Inter RAO's projects oversees.

Engineering and general designers:

In July 2008 the St Petersburg, Moscow and Nizhny-Novgorod divisions of Atomernergoproekt were converted to joint stock companies, with all shares held by Atomenergoprom. The first two are engineering companies and general designers of nuclear power plants mainly using VVER reactors developed by Gidropress. By the end of 2015 all the following engineering companies had been consolidated into the ASE Group as Rosatom's engineering division.

Atomproekt at St Petersburg was formed from the 2013 merger of St Petersburg Atomenergoproekt (SPbAEP) with the All-Russia Science Research and Design Institute of Integrated Power Engineering Technology – VNIPIET (established in 1933) to create the country’s largest nuclear power plant design and development company. It has a particular focus on fast reactors as well as VVER. The company supports all stages of the nuclear fuel cycle, from a decision to start a nuclear power plant construction project to decommissioning. On completion of the merger in mid-2014 it became Atomproekt. Earlier, SPbAEP worked closely with Atomstroyexport (ASE) on exported plants. Atomproekt is responsible for Leningrad II plant, Beloyarsk, Baltic, and also the Belarus, Tianwan, Hanhikivi and Paks II plants as export projects.

Atomproekt is also much involved in fuel fabrication and radioactive waste management. It is Russia's sole design company for used nuclear fuel storage facilities. It is closely involved with the Proryv project for closed fuel cycle with fast reactors.

Atomenergoproekt (formerly Moscow AEP) established in 1986 is a major general design and engineering company for nuclear power plants. It may also function as general contractor. In October 2014 it became a subsidiary of NIAEP-ASE.

Its version of the AES-2006 evolved to the VVER-TOI, which Rosatom says is planned to be standard for new projects in Russia and worldwide. It is general designer of Novovoronezh II, being built by NIAEP-ASE, Kursk II, Smolensk II as well as Kudankulam in India and Akkuyu in Turkey. It has been responsible for Kursk and Smolensk RBMK plants, Novovoronezh I, Balakovo, and the Zaporozhe, Temelin and Bushehr plants.

NIAEP-ASE:  Nizhny-Novgorod Engineering Company Atomenergoproekt (NIAEP) set up in 1951 is building plants at Rostov (Volgodonsk) and Kalinin. NIAEP in March 2012 was merged with Atomstroyexport (ASE) to bolster the latter's engineering capability. (Earlier it had linked with ASE to utilize some 1980s VVER equipment not required for Bulgaria's proposed Belene plant, and built it at Kalinin.)  NIAEP  became a holding company for JSC ASE, but NIAEP-ASE was being used as acronym to late 2014.

Atomstroyexport  (ASE), established by merger in 1998, emerged from the reorganisation as a closed joint stock company owned by Atomenergoprom (50.2%) and Gazprombank (49.8%, it is 69% owned by Gazprom). Early in 2009 the Atomenergoprom and related equity was increased to 89.3% by additional share issue, leaving Gazprombank with 10.7%. It was responsible for export of nuclear plants to China, Iran, India and Bulgaria. In 2009 German-based Nukem Technologies GmbH, which specialises in decommissioning, waste management and engineering services, became a 100% subsidiary of Atomstroyexport. In 2012 ASE merged with Nizhny-Novgorod Atomenergoproekt (NN AEP or NIAEP) to form NIAEP-ASE.

Rosatom, through NIAEP-ASE, offers both EPC (engineering, procurement, construction) and BOO (build, own, operate) contracts for overseas nuclear power plant projects, the latter involving at least 25% Rosatom equity. Rosatom offers various kinds of project financing, including attraction of strategic and institutional investors and debt financing. Some project finance is covered by international agreements involving either export credits, Russian government credit or the participation of Russian state banks. It says that lending rates can be optimized for nuclear power plant projects, and up to 85% of the finance may be provided by government credit from Russia.

In November 2014 the projects in hand on the company website were: Rostov 3&4, Baltic 1&2, Nizhny Novgorod 1&2, Kursk II, all in Russia, and Kudankulam 1&2, Tianwan 3&4, Akkuyu 1-4, Ostrovets 1&2, Bushehr 1, Ninh Thuan 1&2. In mid-2013 Rooppur in Bangladesh was added (but then removed). It is also building a large (3x400 MWe) gas combined-cycle plant: South Ural/Yuzhnouralskaya GRES-2 units 1&2.

NIAEP (post 2012 merger) has a design institute in Nizhny-Novgorod, project management offices in Nizhny-Novgorod, Moscow and St Petersburg, and 11 representative offices in Europe and Asia to oversee projects.

Titan-2 was a major subcontractor for the Leningrad II construction, and in 2015 it took over as general contractor for units 1&2. It will also be general contractor for Hanhikivi in Finland.

Rusatom Service was set up in October 2011 by Rosenergoatom (51%), Atomenergomash (16%), Gidropress (16%) and Atomtekhenergo (16%). It will undertake maintenance and repair as well as modernization of Russian-design nuclear power plants abroad, applying Russian domestic experience. The company is also to work in the area of technical consultancy, training and retraining of plant personnel. The market is estimated at €1.5 billion per year, rising to €2.5 billion by 2020, including western-design reactors by then.

OTsKS – Rosatom Branch Centre for Capital Construction – was set up in August 2012 to manage its capital investment program in Russia and internationally. It oversees regulatory, technical and legal aspects of capital construction projects, as well as estimating costs and developing schedules. It also provides training for customer-contractors and general contractors such as NIAEP-ASE as well as the personnel of construction companies. Rosatom subsidiary companies had to complete their transition to new rules on planning capital construction projects developed by OTsKS, by the end of 2013. Its main customer is Rosenergoatom which is building about ten units in Russia, with 12 more planned by 2025.

AKME-engineering was established in 2009 to implement the SVBR-100 project at Dimitrovgrad, including design, construction and commercial operation. It is a JV of Rosatom and JSC Irkutskenergo, and is licensed for construction and operation of nuclear plants by Rostechnadzor.

Uralenergostroy in Yekaterinburg is a civil works general contractor responsible for BN-800, BN-1200 and MBIR plants.

The Federal Centre of Nuclear and Radiation Safety ( FC NRS ) is a federal-state unitary enterprise set up in 2007 by Rosatom as part of its End-of-Life (EOL) Management Division. The Pilot Demonstration Center for Decommissioning of Uranium-Graphite Reactors (PDC UGR) is to become part of it, rather than staying with SCC.

The National Operator for Radioactive Waste Management ( NO RAO ) is a federal-state unitary enterprise set up in 2012 responsible for waste management and disposal. It is the National Operator for handling all nuclear waste materials, with functions and tariffs set by government.

FSUE RosRAO provides commercial back-end radwaste and decommissioning services for intermediate- and low-level waste as well as handling non-nuclear radwaste. It commenced operation in 2009 under a temporary arrangement pending finalisation of regulations under the new legislation. It incorporates Radon, which was the organisation responsible for medical and industrial radioactive waste, and now has branches in each of seven federal districts. RosRAO’s Far East Centre (DalRAO) operates long-term storage for over 70 submarine reactor compartments, pending their recycling. Its northern centre is SevRAO, in the Murmansk region, is engaged in remediation of the sites of Navy Northern Fleet bases, and dismantling of retired nuclear-powered naval ships and submarines. RosRAO is envisaged as an international operator. RosRAO became part of Rosatom’s Life Cycle Back-End Division (LC BED) in 2013.

In 2013 Rosatom’s Life Cycle Back-End Division (LC BED) was set up to incorporate entities hitherto the responsibility of FC NRS: the Mining and Chemical Combine (MCC), RosRAO, SPA V.G.Khlopin Radium Institute and Radon. FC NRS will continue involvement with the new division.

FSUE Atomflot is a Rosatom division operating the nuclear powered icebreakers and merchant ship in Arctic waters.

Situation and Crisis Centre of Rosatom was established in 1998 acts as the Operator of the Nuclear Industry System for Prevention and Management of Emergencies. It keeps track of nuclear enterprises and transport of nuclear materials.

SNIIP Systematom is an engineering company for nuclear and radiation safety systems. It will supply the equipment for automated radiation monitoring systems (ARMS) at the Kalinin 1 nuclear unit in Russia and Tianwan 4 in China.

The VI Lenin All-Russian Electrotechnical Institute and its affiliated Experimental Plant were made FSUEs by presidential decree in March 2015, and removed from the Ministry of Education & Science.

Supply chain entities

Atomenergomash (AEM) was set up in 2006 to control the supply chain for major reactor components. After an equity issue in 2009 it was 63.6% owned by AEP, 14.7% by TVEL and 7.6% by Tenex, and 7% by AEM-finance. In 2009 AEM had sales of RUR 16 billion. AEM companies claim to have provided equipment in 13% of nuclear plants worldwide. Rosatom has one of the largest procurement budgets in the Russian economy, with the annual value of its orders totaling more than RUR 1000 billion ($17.8 billion) in recent years. Almost 85,000 companies are registered as suppliers to Rosatom and 70,000 contracts are signed each year by the group.

Supply chain reliability for nuclear procurement is a significant concern for Rosatom, and it is seeking reform from the Federal Antimonopoly Service (FAS), in particular to ensure a credible ability to deliver high quality goods and services on time rather than just accepting the lowest price. Rosatom wants to conduct audit checks of suppliers prior to their participation in competitive bidding procedures, in order to verify that they would actually be able to fulfil the orders on which they bid. Rosatom cited as an example of the need for procurement reform the purchase of circulation pumps and combined valves for the Novovoronezh power plant. The supplier agreed to a schedule, but this stretched to 80 months and the equipment eventually delivered failed safety tests at the plant. A similar situation occurred at the Beloyarsk plant. The costs of such delays to Rosatom far exceed any compensation it can claim from delinquent suppliers.

The former main nuclear fabrication company, Atommash, was established in 1973 at Volgodonsk and went bankrupt in 1995. It was then profoundly restructured and resurrected as EMK-Atommash before becoming part of JSC Energomash, a major diversified engineering company apparently independent of Rosatom/AEP. Atommash largely moved away from nuclear equipment, though Atomenergomash (subsidiary of AEP) was keen to resuscitate it as an alternative heavy equipment supplier to OMZ. In 2009 Atomenergomash was doing due diligence on the Energomash group, with a view to taking a half share in it, "to create competition in the segment of monopoly suppliers of long-lead nuclear equipment.” In October 2014 AEM-Assets, a subsidiary of Rosatom, acquired the production assets and a 100% interest in Energomash LLC (Volgodonsk)-Atommash, the forging company, and Energomash JSC (Volgodonsk)-Atommash, which provides services related to the lease of equipment and immovable property. Atommash was integrated into Rosatom as part of AEM-Technology, and can now produce four complete sets of nuclear island equipment per year. The reactor pressure vessel supplied to Belarus in 2015 was the first it had produced in 30 years. Two reactor pressure vessels for the RITM-200 reactors for Russia’s new icebreaker were also produced in 2015. In 2017 it was building the reactor pressure vessel for the MBIR fast research reactor.

Objedinennye Mashinostroitelnye Zavody (OMZ – Uralmash-Izhora Group) itself is the largest heavy industry company in Russia, and has a wide shareholding. Izhorskiye Zavody, the country's main reactor component supplier, became part of the company in 1999, and Skoda Steel and Skoda JS in Czech Republic joined in 2003. OMZ is expected to produce the forgings for all new domestic AES-2006 model VVER-1200 nuclear reactors (four per year from 2016), plus exports. At present Izhora can produce the heavy forgings required for Russia's VVER-1000 reactors at the rate of two per year, and it is manufacturing components for the first two Leningrad II VVER-1200 units.

The Power Machines Company (JSC Silovye Mashiny Concern, or Silmash) was established in 2000 and brought together a number of older enterprises including Leningradsky Metallichesky Zavod (LMZ), Elektrosila, Turbine Blades Factory, etc. Siemens holds 26% of the stock. Silmash makes steam turbines up to 1200 MWe, including the 1000 MWe turbines for Atomstroyexport projects in China, India and Iran, and has supplied equipment to 57 countries worldwide. It is making 1200 MWe turbine generators for the Leningrad and Novovoronezh II nuclear plants. A significant amount of Power Machines' business is in Asia.

The Russian EnergyMachineBuilding Company (REMCO) was established as a closed joint stock company in Russia in 2008, amalgamating some smaller firms, with half the shares owned by Atomenergomash. It is one of the largest manufacturers of complex heat-exchange equipment for nuclear and thermal power plants, oil and gas industry. Its subsidiaries include JSC Machine-Building Plant ZiO-Podolsk and JSC Engineering Company ZIOMAR.

JSC Machine Building Plant ZiO-Podolsk is one of the largest manufacturers designing and producing equipment for nuclear power and other plants. It has made equipment, including steam generators and heat exchangers, for all nuclear plants in the former USSR. It is increasing capacity to four nuclear equipment sets per year. It appears to be 51% owned by REMCO. It is making the reactor pressure vessel and other main equipment for the BN-800 fast reactor at Beloyarsk as well as steam generators for Novovoronezh, Kalinin 4, Leningrad and Belene.

In April 2007 a joint venture company to manufacture the turbine and generator portions of new nuclear power plants was announced by French engineering group Alstom and JSC Atomenergomash. The 49:51 Alstom-Atomenergomash LLC (AAEM) joint venture, in which both parties would invest EUR 200 million, was established at Podolsk, near Moscow. It includes the technology transfer of Alstom's state of the art Arabelle steam turbine and generator (available up to 1800 MWe) tailored to Russian VVER technology. In 2010 AAEM signed an agreement with Inter RAO-Worley Parsons (IRWP) to establish an engineering consortium to design turbine islands for Russia's VVER reactor-based nuclear power plants. At the same time Alstom signed strategic agreements with major Russian energy companies to jointly provide power generation products and services for Russia's power industry in hydro, nuclear and thermal power generation and electricity transmission. Another agreement, between Alstom Power and Rosatom, details plans to set up a local facility to manufacture Alstom's Arabelle steam turbines for nuclear plants. In 2011 Petrozavodskmash joined the group, and its site is more suitable for shipping large components, so in 2011 the company decided to build its factory for Arabelle manufacture at Petrozavodsk, in Karelia, by 2015 instead of continuing with ZiO-Podolsk near Moscow. First production was expected in 2013 with output reaching three 1200 MWe turbine and generator sets per year in 2016. The Baltic plant will be the first customer, in a RUB 35 billion order, with Russian content about 50%. This will increase to over 70% for subsequent projects.

In September 2007 Mitsubishi Heavy Industries (MHI) signed an agreement with Russia's Ural Turbine Works (UTZ) to manufacture, supply and service gas and steam turbines in the Russian market. Under the agreement, MHI, Japan's biggest machinery maker, will license its manufacturing technologies for large gas turbines and steam turbines to UTZ – part of the Renova Group. The agreement also calls for a joint venture to be established in Russia to provide after-sales service.

Russia has developed several generations of centrifuges for uranium enrichment. Ninth-generation machines are now being deployed, 10th generation ones re being developed, and 11th generation are being designed. The 9th generation units are said to be 1.5 times as efficient as 8th. Overall since 1960, the machine weight, size and power characteristics have remained practically unchanged, but their efficiency was raised more than six-fold, design service life was increased from 3 to 30 years, and the SWU cost was reduced “several times”. Centrifuges for China under a US$ 1 billion contract are manufactured at both Tocmash and Kovrov Mechanical plant, both of which will become part of the Fuel Company being established by TVEL. Russia intends to export its centrifuges to the USA and SE Asia.

For more up to date information on heavy engineering, see paper on Heavy Manufacturing of Power Plants .

Early in 2006 Rosenergoatom set up a subsidiary to supply floating nuclear power plants (BNPPs) ranging in size from 70 to 600 MWe. The plants are designed by OKBM in collaboration with others. The pilot plant, now under construction, is 70 MWe plus heat output and incorporates two KLT-40S reactors based on those in icebreakers.

Regulation and safety

Two main laws govern the use of nuclear power: the Federal Law on the Use of Atomic Energy (November 1995 and Federal Law on Radiation Safety of Populations (January 1996). These are supported by federal laws including those on environmental protection (2002) and the Federal Law on Radioactive Waste Management (2011). The 1996 Federal Law on Radiation Safety of Populations is administered by the Federal Ministry of Health.

Rostekhnadzor   is the regulator, set up (as GAN) in 1992, reporting direct to the President. Because of the links with military programs, a culture of secrecy pervaded the old Soviet nuclear power industry. After the 1986 Chernobyl accident, changes were made and a nuclear safety committee established. The State Committee for Nuclear and Radiation Safety – Gosatomnadzor (GAN) succeeded this in 1992, being responsible for licensing, regulation and operational safety of all facilities, for safety in transport of nuclear materials, and for nuclear materials accounting. Its inspections can result in legal charges against operators. However, on some occasions when it suspended operating licences in the 1990s, Minatom successfully overrode this. In 2004 GAN was incorporated into the Federal Ecological, Technological & Atomic Supervisory Service, Rostechnadzor, which has a very wide environmental and safety mandate. It has executive authority for development and implementation of public policy and legal regulation in the environmental field, as well as in the field of technological and nuclear supervision. It controls and supervises natural resources development, industrial safety, nuclear safety (except for weapons), safety of electrical networks, hydraulic structures and industrial explosives. It licences nuclear energy facilities, and supervises nuclear and radiation safety of nuclear and radiologically hazardous installations, including supervision of nuclear materials accounting, control and physical protection.  A 2011 overview is on IAEA website.

Safety has evidently been improving at Russian nuclear power plants. In 1993 there were 29 incidents rating level 1 and higher on the INES scale, in 1994 there were nine, and since then to 2003, no more than four. Also, up until 2001 many employees received annual radiation doses of over 20 mSv, but since 2002 very few have done so.

In 2008 Rostechnadzor was transferred to the Ministry of Natural Resources and the Environment, but this was reversed in mid 2010 and it was brought back under direct control of the government and focused on civil nuclear energy. Following other changes in federal legislation, an IAEA Integrated Regulatory Review Service (IRRS) mission in 2013 said that Rostechnadzor had made "significant progress" in its development since 2009 and had “become an effective independent regulator with a professional staff”. Rostechnadzor undertook to make the final IRRS report early in 2014 public.

Glavgosexpertiza , the Russian State Expert Examination Board, is the authority responsible for appraising design documentation and engineering services on behalf of the Ministry of Construction of Russia. Glavgosexpertiza ensures compliance of all major infrastructure construction projects with national technical regulations and statutory requirements. 

Rosprirodnadzor , the Federal Service for Supervision of Natural Resources needs to give environmental approval to new projects, through its State Environmental Commission.

Exports: fuel cycle

Soviet exports of enrichment services began in 1973, and Russia has strongly continued this, along with exports of radioisotopes. After 1990, uranium exports began, through Techsnabexport (Tenex). At 2015 Atomexpo it was announced that at the start of the year Rosatom’s foreign portfolio totaled US$ 101.4 billion, of which $66 billion was reactors, $21.8 billion was the contracted sales of EUP and SWU, and the remaining $13.6 billion was attributable to the sales of fabricated fuel assemblies and uranium. Rosatom’s goal is to gain half its revenue from exported goods and services.

Tenex expects to increase its share in the global market for front-end fuel cycle services to 40% by 2030, assisted by offering an ‘integrated product’ covering the entire nuclear fuel cycle, and to contribute up to half of Rosatom’s foreign currency revenue. Tenex revenue in 2014 was over $2.2 billion, and forward orders totalled almost $23 billion, including almost $6 billion in over 20 contracts with US utilities for enriched uranium product. Tenex sees the Asia-Pacific market as a growth area, using a new transport route through Vostochny Seaport, Primorye Territory.

In 2009 Tenex signed long-term enrichment services contacts with three US utilities – AmerenUE, Luminant and Pacific Gas & Electric – and one in Japan – Chubu. The contracts cover supply from 2014 to 2020. Then it contracted to supply enriched uranium product over the same period with Exelon, the largest US nuclear utility. By the end of 2010, the value of contracts with US companies rose to about $4 billion, beyond the diluted ex-military uranium already being supplied to 2013 from Russian weapons stockpiles. In 2012, Tenex supplied about 45% of world demand for enrichment services and 17% of that for fabricated fuel. It exported fuel for 34 reactors as well as supplying 33 Russian ones.

This US-Russian "Megatonnes to Megawatts" program supplies about 15% of world reactor requirements for enriched uranum and is part of a US$ 12 billion deal in 1994 between US and Russian governments, with a non-proliferation as well as commercial rationale. USEC and Tenex are the executive agents for the program. However, Rosatom confirmed in mid 2006 that no follow-on program of selling Russian high-enriched uranium from military stockpiles was anticipated once this program concludes in 2013. The 20-year program is equivalent to about 140,000 to 150,000 tonnes of natural uranium, and has supplied about half of US needs. By September 2010 it was 80% complete.

TVEL in 2010 won a tender to construct a fuel manufacturing plant in Ukraine, against competition from US company Westinghouse. Russia's long-term contract to supply fuel to the Ukrainian market is set to run until the end of the useful life of existing Ukrainian reactors, perhaps up to 35 years.

TVEL in 2014 secured contracts with foreign partners that exceeded $3 billion, keeping its ten-year order book at more than $10 billion. Contracts were signed with Finland, Hungary and Slovakia, as well as for research reactors in the Czech Republic, the Netherlands and Uzbekistan. TVEL said it has 17% of the global nuclear fuel supply market.

Rosatom has claimed to be able to undercut world prices for nuclear fuel and services by some 30%.

It was also pushing ahead with plans to store and probably reprocess foreign spent fuel, and earlier the Russian parliament overwhelmingly supported a change in legislation to allow this. The proposal involved some 10% of the world's spent fuel over ten years, or perhaps up to 20,000 tonnes of spent fuel, to raise US$ 20 billion, two thirds of which would be invested in expanding civil nuclear power. In July 2001 President Putin signed into effect three laws including one to allow this import of spent nuclear fuel (essentially an export of services, since Russia would be paid for it).

The President also set up a special commission to approve and oversee any spent fuel accepted, with five members each from the Duma, the Council, the government and presidential nominees, chaired by Dr Zhores Alferov, a parliamentarian, Vice-President of the Russian Academy of Sciences and Nobel Prize physicist. This scheme was progressed in 2005 when the Duma ratified the Vienna Convention on civil liability for nuclear damage. However in July 2006 Rosatom announced it would not proceed with taking any foreign-origin used fuel, and the whole scheme lapsed.

Exports: general, plants and projects

Russia is engaged with international markets in nuclear technology, well beyond its traditional eastern European client states. An important step up in this activity was in August 2011 when Rosatom established Rusatom Overseas company, with authorized capital of RUR 1 billion. In mid-2015 it was split into JSC Rusatom Overseas Inc. and JSC Rusatom Energy International .

Rusatom Overseas Inc  is responsible for implementing non fuel-cycle projects in foreign markets, though apparently it also promotes products, services and technologies of the Russian nuclear industry generally to the world markets. According to Rosatom, "Rusatom Overseas acts as an integrator of Rosatom's complex solutions in nuclear energy, manages the promotion of the integrated offer and the development of Russian nuclear business abroad, as well as working to create a worldwide network of Rosatom marketing offices." Rusatom Overseas planned to open some 20 offices around the world by 2015, as a market research front and shop window for all Rosatom products and services.

Rusatom Energy International acts "as a developer of Rosatom's foreign projects, which are implemented with the build-own-operate (BOO) structure" and is a shareholder in those project companies. One of the first projects that Rosatom is implementing using the BOO structure is the Akkuyu plant in Turkey. A second project is Hanhikivi in Finland.

At 2015 Atomexpo it was announced that at the start of the year Rosatom’s foreign portfolio totaled US$ 101.4 billion, of which $66 billion was reactors, $21.8 billion was the contracted sales of EUP and SWU, and the remaining $13.6 billion was attributable to the sales of fabricated fuel assemblies and uranium. The total at the end of 2015 was over $110 billion, and export revenues in 2015 were $6.4 billion, up 20% from 2014. Rosatom’s goal is to gain half its revenue from exported goods and services. Its long-term strategy, approved by its board in late 2011, calls for foreign operations to account for half of its business by 2030. It aims to hold at least one-third of the global enrichment services market by then, as well as 5% of the market for pressurized water reactor (PWR) fuel. The corporation said that it is "actively strengthening its position abroad for the construction of nuclear power plants." In April 2015 Rosatom said that it had contracts for 19 nuclear plants in nine countries, including those under construction (5). In September 2015 it said it had orders for 30 nuclear power reactors in 12 countries, at about $5 billion each to construct, and it was negotiating for 10 more. It said that the total value of all export orders was $300 billion. It aims to have orders for the construction of some 30 power reactors outside of Russia by 2030.

Atomstroyexport (ASE, now NIAEP-ASE) has had three reactor construction projects abroad, all involving VVER-1000 units. It is embarking upon and seeking more, as detailed in Nuclear Power in Russia companion paper, final section on Exports of Nuclear Reactors.

Since 2006 Rosatom has actively pursued nuclear cooperation deals in South Africa, Namibia, Chile and Morocco as well as with Egypt, Algeria, Jordan, Vietnam, Bangladesh and Kuwait. In 2012 an agreement with Japan was concluded.

Tenex has also entered agreements (now taken over by ARMZ) to mine and explore for uranium in South Africa (with local companies) and Canada (with Cameco).

In September 2008 ARMZ signed a MOU with a South Korean consortium headed by Kepco on strategic cooperation in developing uranium projects. This included joint exploration, mining and sales of natural uranium in the Russian Federation and possibly beyond, but no more has been heard of it.

International collaboration

Russia is engaged with international markets in nuclear energy, well beyond its traditional eastern European client states. In June 2011 Rosatom announced that it was establishing Rusatom Overseas company, a new structure to be responsible for implementing non fuel-cycle projects in foreign markets. It could act as principal contractor and also owner of foreign nuclear capacity under build-own-operate (BOO) arrangements. It is vigorously pursing markets in developing countries and is establishing eight offices abroad.

President Putin's Global Nuclear Infrastructure Initiative was announced early in 2006. This is in line with the International Atomic Energy Agency (IAEA) 2005 proposal for Multilateral Approaches to the Nuclear Fuel Cycle (MNA) and with the US Global Nuclear Energy Partnership (GNEP). The head of Rosatom said that he envisages Russia hosting four types of international nuclear fuel cycle service centres (INFCCs) as joint ventures financed by other countries. These would be secure and maybe under IAEA control. The first is an International Uranium Enrichment Centre (IUEC) – one of four or five proposed worldwide (see separate section). The second would be for reprocessing and storage of used nuclear fuel. The third would deal with training and certification of personnel, especially for emerging nuclear states. In this context there is a need for harmonized international standards, uniform safeguards and joint international centers. The fourth would be for R&D and to integrate new scientific achievements.

In March 2008 AtomEnergoProm signed a general framework agreement with Japan's Toshiba Corporation to explore collaboration in the civil nuclear power business. The Toshiba partnership is expected to include cooperation in areas including design and engineering for new nuclear power plants, manufacturing and maintenance of large equipment, and "front-end civilian nuclear fuel cycle business". In particular the construction of an advanced Russian centrifuge enrichment plant in Japan is envisaged, also possibly one in the USA. The companies say that the "complementary relations" could lead to the establishment of a strategic partnership. Toshiba owns 77% of US reactor builder Westinghouse and is also involved with other reactor technology.

Regarding reactor design, Rosatom has said it is keen to be involved in international projects for Generation IV reactor development and is keen to have international participation in fast neutron reactor development, as well as joint proposals for MOX fuel fabrication.

In April 2007 Red Star, a government-owned design bureau, and US company Thorium Power (now Lightbridge Corporation) agreed to collaborate on testing Lightbridge's seed and blanket fuel assemblies at the Kurchatov Institute with a view to using thorium-plutonium fuel in VVER-1000 reactors, partly in order to dispose of surplus military plutonium (see information papers on Fuel Fabrication and Military Warheads as a Source of Nuclear Fuel for details).

In 2006 the former working relationship with Kazakhstan in nuclear fuel supplies was rebuilt. Kazatomprom has agreed to a major long-term program of strategic cooperation with Russia in uranium and nuclear fuel supply, as well as development of small reactors, effectively reuniting the two countries' interests in future exports of nuclear fuel to China, Japan, Korea, the USA and Western Europe.

In June 2010 Rosatom signed a major framework agreement with the French Atomic Energy Commission (CEA) covering "nuclear energy development strategy, nuclear fuel cycle, development of next-generation reactors, future gas coolant reactor systems, radiation safety and nuclear material safety, prevention and emergency measures." Much of the collaboration will be focused on reprocessing and waste, also sodium-cooled fast reactors. Subsequently EdF and Rosatom signed a further cooperation agreement covering R&D, nuclear fuel, and nuclear power plants - both existing and under construction.

In March 2007 Russia signed a cooperation declaration with the OECD's Nuclear Energy Agency (NEA), so that Russia became a regular observer in all NEA standing technical committees, bringing it much more into the mainstream of world nuclear industry development. Russia had been participating for some years in the NEA's work on reactor safety and nuclear regulation and is hosting an NEA project on reactor vessel melt-through. This agreement was expected to assist Russia's integration into the OECD, and in October 2011 Russia made an official request to join the NEA. It was accepted as the 31st member of the OECD NEA in May 2012, effective from January 2013. Russia will be represented by its Ministry of Foreign Affairs, Rosatom, and nuclear regulator Rostechnadzor.

Over two decades to about 2010 a Russian-US coordinating committee* was discussing building a GT-MHR prototype at Seversk, primarily for weapons plutonium disposition. Today OKBM is responsible to collaboration with China on HTR development, though NIIAR and Kurchatov Institute are also involved.

* involving SC Rosatom, NIIAR, OKBM, RRC Kurchatov Institute and VNIINM on the Russian side and NNSA, General Atomics, Oak Ridge National Laboratory on the US side.

Research & development

In mid-2009 the Russian government said that it would provide more than RUR 120 billion (about US$3.89 billion) over 2010 to 2012 for a new program devoted to R&D on the next generation of nuclear power plants. It identified three priorities for the nuclear industry: improving the performance of light water reactors over the next two or three years, developing a closed fuel cycle based on deployment of fast reactors in the medium term, and developing nuclear fusion over the long term. Rosatom said that its 2014 spending on R&D would amount to RUR 27-28 billion (US$ 528 million), about 4.5% of its revenue. In 2013 it spent RUR 24 billion, and in 2012 RUR 22.7 billion on R&D. In 2015 Rosatom said that it invested 5% of its revenues in R&D “to reinforce our technological leadership.”

Many research reactors were constructed in the 1950s and 60s. In 2015, 52 non-military research and test reactors were operational in Russia, plus about three in former Soviet republics and eight Russian ones elsewhere. Most of these use ceramic fuel enriched to 36% or 90% U-235. Overall over 130 research reactors have been built based on Russian technology. MBIR is now under construction at Dimitrovgrad.

Kurchatov Institute

Russia has had substantial R&D on nuclear power for seven decades. The premier establishment for this is the Russian Research Centre Kurchatov Institute in Moscow, set up 1943 as the Laboratory No. 2 of the Soviet Academy of Sciences. In 2010 it joined the Skolkovo project, an R&D centre set up to rival Silicon Valley in the USA, and became a Federal State Unitary Enterprise. It has run twelve research reactors there, six of which are now shut down. The 24 kW F-1 research reactor was started up in December 1946 and has passed its 70th anniversary in operation. The largest reactor is IR-8, of 8 MWt, a high-flux unit used for isotope production.

The Kurchatov Institute has designed nuclear reactors for marine and space applications, and continues research on HTRs. Since 1995 it has been involved internationally with accounting, control and physical protection of nuclear materials. US Lightbridge Corporation's seed and blanket fuel assemblies are being tested there with a view to using thorium-based fuel in VVER-1000 reactors.

Kurchatov’s Molten Salt Actinide Recycler and Transmuter (MOSART) is fuelled only by transuranic fluorides from uranium and MOX LWR used fuel, without U or Th support. The 2400 MWt reactor has a homogeneous core of Li-Na-Be or Li-Be fluorides without graphite moderator and has reduced reprocessing compared with the original US design. Thorium may also be used, though MOSART is described as a burner-converter rather than a breeder.

Since 1955 the Institute has hosted the main experimental work on plasma physics and nuclear fusion, and the first tokamak systems were developed there. Since 1990, much of its funding comes from international cooperation and commercial projects.

Petersburg Nuclear Physics Institute (PNPI)

The Petersburg Nuclear Physics Institute ( PNPI ) is near St Petersburg but part of the Kurchatov Institute. It was formerly the B.P. Konstantinov Petersburg Nuclear Physics Institute (PIYaF). In 1959 the 18 MWt WWR-M high-flux research reactor was put into operation, and in 1970 the 1 GeV proton synchrocyclotron SC-1000 started up, these continue in operation.

A 100 MWt high-flux reactor with 25 associated research facilities, PIK , achieved criticality in 2011 at Gatchina but further major work led to its launch at 100 kW in 2019. It uses 27 kg of 90% enriched uranium fuel, tenders for which were called in 2020. PIK is the most powerful high-flux research beam reactor in Russia and is planned to be the basis for the International Centre for Neutron Research. In October 2020 Glavgosexpertiza approved a project for the modernisation of the PIK reactor, and a further launch was announced in February 2021.

The Institute for High Energy Physics and the Institute of Theoretical and Experimental Physics are also part of the Kurchatov Institute, as are the 'Prometheus' Central Research Institute of Structural Materials and the Research Institute of Chemical Reagents and High Purity Chemicals, which were previously part of the Ministry of Education and Science.

Research Institute of Atomic Reactors (RIAR/NIIAR)

Russia's State Scientific Centre – Research Institute of Atomic Reactors ( RIAR , or NIIAR) – said to be the biggest nuclear research centre in Russia, is in Dimitrovgrad (Melekess), in Ulyanovsk county 1300 km SE of Moscow. It was founded in 1956 to host both research and experimental reactors, and it researches fuel cycle, radiochemicals and radioactive waste management, as well as producing radionuclides for medicine and industry. It hosts the main R&D on electrometallurgical pyroprocessing, especially for fast reactors, and associated vibropacked fuel technology for these.

RIAR/NIIAR has the largest materials study laboratory in Eurasia, used particularly for irradiated fuel.* The complex's major future role will be in fuel reprocessing. The initial fuel for MBIR is likely to be from reprocessed BOR-60 fuel, as also intended for SVBR-100. In 2014 construction of a new multifunctional radiochemical research centre for closed fuel cycles for fast reactors commenced as part of the revised federal target programme for 2010-2015 and until 2020. Fuel research at RIAR already includes integration of minor actinides into FNR closed fuel cycle, nitride fuel (both mononitride and U-Pu nitride), metallic fuel (U-Pu-Zr, U-Al, U-Be) and RBMK spent fuel conditioning. It also is working on molten salt fuel – reprocessing and minor actinide behaviour, though Kurchatov Institute seems to be the main locus of MSR research.

* In 2010 TerraPower from the USA proposed that RIAR should carry out in-pile tests and post-irradiation examinations of structural materials and fuel specimens planned for its travelling-wave reactor. A final agreement was expected in November, but apparently did not eventuate.

RIAR's first research reactor – SM – has been running since 1961 and now produces radioisotopes and does materials testing. It is a 100 MWt very high-flux water-cooled pressure vessel-type reactor originally using 90% enriched fuel with a neutron trap that operates in the intermediate neutron spectrum. It has been modernised several times and as SM-3 it was recommissioned in 1993. In 2020 it again had a new core. It is expected to operate until 2040. 

The MIR-MR  loop-type reactor commissioned in 1967 is used for testing fuels in runs up to 40 days at up to 100 MWt. It has been important in developing fuel rod designs for power and naval reactors. It is testing the first batch of REMIX fuel and also accident-tolerant fuel (ATF). It has a beryllium moderator and uses 90% enriched fuel. It was due to be retired in 2020.

The small pool-type reactors RBT-6 & RBT-10/2 commissioned in 1975 and 1984 are used for long-term experiments and use the spent fuel assemblies from SM. They are 6 & 7 MWt respectively. 

As well as three other research reactors, the BOR-60 * experimental fast reactor is operated here by RIAR – the world’s only operating fast research reactor. It started up in 1969 and is to be replaced with the  MBIR , with four times the irradiation capacity.

* BOR = bystry opytniy reaktor. BOR-60 was licensed to 2015 but was extended to December 2020.

The multi-purpose fast neutron research reactor – MBIR* – will be a 150 MWt multi-loop reactor capable of testing lead or lead-bismuth and gas coolants as well as sodium, simultaneously in three parallel outside loops. Initially it will have sodium coolant. It will run on vibropacked MOX fuel with plutonium content of 38%, produced at RIAR in existing facilities. A 24% Pu fuel may also be used. RIAR intends to set up an on-site closed fuel cycle for it, using pyrochemical reprocessing it has developed at pilot scale. MBIR’s cost was estimated at RUR 40 billion in 2015. Rostechnadzor granted a site licence to RIAR in August 2014, and a construction licence in May 2015. Construction started in September 2015. Completion was expected in 2020, but the project was paused after starting construction. In November 2020 Rosatom appointed a new contractor, AO Institut Orgenergostroy, and construction resumed, with commissioning expected in 2028. The reactor pressure vessel is being made by Atommash at Volgodonsk.

* MBIR = mnogotselevoy issledovatilskiy reaktor na bystrych neytronach.

Russia's only boiling water reactor, the prototype VK-50 of 200 MWt was commissioned in 1964 and was due to be retired in 2020.

Rosatom is setting up an International Research Centre (IRC) based on MBIR and is inviting international participation in connection with the IAEA INPRO programme. In June 2013 an agreement with France and the USA was signed to this end. In April 2017 Rosatom was soliciting Japanese involvement. The full MBIR research complex is now budgeted at $1 billion, with the Russian budget already having provided $300 million from the federal target programme. Pre-construction shares of 1% were being offered for $10 million, allowing involvement in detailed design of irradiation facilities. From 2020 the fee would rise to $36 million per 1% share. RIAR will be the legal owner of MBIR, performing operational and administrative functions, while the International Research Centre will be the legal entity responsible for marketing and research management. In May 2017 Rosatom announced that the multifunctional radiochemical research facility under construction at RIAR would be included in the IRC, to be used for testing technologies to close the fast reactor fuel cycle.

The first 100 MWe Lead-Bismuth Fast Reactor (SVBR) from Gidropress was to be built at RIAR, but the project was dropped in 2018. It was designed to use a wide variety of fuels, though the demonstration unit would initially have used uranium enriched to 16.3%. With U-Pu MOX fuel it would operate in closed cycle. It was described by Gidropress as a multi-function reactor, for power, heat or desalination.

RIAR has established a joint venture with JSC Izotop – Izotop-NIIAR – to produce Mo-99 at Dimitrovgrad from 2010, using newly-installed German equipment. This aimed to capture 20% of the world market for Mo-99 by 2012, and 40% subsequently. In September 2010 JSC Isotop signed a framework agreement with Canada-based MDS Nordion to explore commercial opportunities outside Russia on the basis of this JV, initially over ten years.

Institute of Physics and Power Engineering (FEI/IPPE)

In 1954 the world's first nuclear powered electricity generator began operation in the then closed city of Obninsk at the Institute of Physics and Power Engineering (FEI or IPPE). The AM-1* reactor is water-cooled and graphite-moderated, with a design capacity of 30 MWt or 5 MWe. It was similar in principle to the plutonium production reactors in the closed military cities and served as a prototype for other graphite channel reactor designs including the Chernobyl-type RBMK** reactors. AM-1 produced electricity until 1959 and was used until 2000 as a research facility and for the production of isotopes. FEI also bid to host the MBIR project.

* AM = atom mirny – peaceful atom

** RBMK = reaktor bolshoi moshchnosty kanalny – high power channel reactor

In the 1950s the FEI at Obninsk was also developing fast breeder reactors (FBRs), and in 1955 the BR-1* fast neutron reactor began operating. It produced no power but led directly to the BR-5 which started up in 1959 with a capacity of 5 MWt which was used to do the basic research necessary for designing sodium-cooled FBRs. It was upgraded and modernised in 1973 and then underwent major reconstruction in 1983 to become the BR-10 with a capacity of 8 MWt which is now used to investigate fuel endurance, to study materials and to produce radioisotopes.

* BN = bystry reaktor – fast reactor

Research & Development Institute for Power Engineering (NIKIET)

NIKIET in Moscow is one of Russia’s major nuclear design and research centres with a primary focus on advanced reactor technologies including those for regional power supplies, research and isotope production reactors, and neutronic systems for the international fusion reactor (ITER). 

NIKIET is at concept development stage with a seabed reactor module – SHELF – a 6 MWe, 28 MWt remotely-operated PWR with low-enriched fuel of UO 2 in aluminium alloy matrix. Fuel cycle is 56 months. The SHELF module uses an integral reactor with forced and natural circulation in the primary circuit, in which the core, steam generator, motor-driven circulation pump and control and protection system drive are housed in a cylindrical pressure vessel. The reactor and turbogenerator are in a cylindrical pod about 15 m long and 8 m diameter, sitting on the sea bed. It is intended as electricity supply for oil and gas developments in Arctic seas. In 2018 NIKIET also proposed its use for the RUR 100 billion Pavlovsky lead-zinc mine project in northern Novaya Zemlya.

In 2010 the government was to allocate RUR 500 million (about US$ 170 million) of federal funds to design a space nuclear propulsion and generation installation in the megawatt power range. In particular, SC Rosatom was to get RUR 430 million and Roskosmos (Russian Federal Space Agency) RUR 70 million to develop it. The work would be undertaken by (NIKIET) in Moscow, based on previous developments including those of nuclear rocket engines. A conceptual design was expected in 2011, with the basic design documentation and engineering design to follow in 2012. Tests were planned for 2018.

Since 2010 NIKIET is also involved with Luch Scientific Production Association (SPA Luch) and a Belarus organization, the Joint Institute for Power Engineering and Nuclear Research (Sosny), to design a small transportable nuclear reactor. The project draws on Sosny’s experience in designing the Pamir-630D truck-mounted small nuclear reactor, two of which were built in Belarus from 1976 during the Soviet era. This was a 5000 kWt/630 kWe HTR reactor using 45% enriched fuel in rods with zirconium hydride moderator and driving a gas turbine with dinitrogen tetroxide (N 2 O 4 ) through the Brayton cycle. After some operational experience in 1985-86 the Pamir project was scrapped. The new design will be a similar HTR concept but about 2 MWe.

Joint Institute for Nuclear Research

The Joint Institute for Nuclear Research, at Dubna near Moscow, is an international physics research centre with 18 member states and six associate members. It has the IBR-2M fast periodic pulsed reactor of 2 MWt, commissioned in 1984 and modernised in 2010 with higher neutron flux. It uses plutonium oxide fuel. 

Mining & Chemical Combine (MCC)

At the Mining & Chemical Combine (MCC), Zheleznogorsk the ADE2 reactor was the third nuclear reactor of its kind built in Russia and came on line in 1964, primarily as a plutonium production unit. However, from 1995 heat and electricity production became its main purposes. The ADE-2 operating experience contributed to technological measures to justify and extend service lives of RBMK reactors at nuclear power plants, with considerable economic benefit and safety improvement. This work was given a governmental science and technology award in 2009. ADE2 was closed for final decommissioning in April 2010 after "46 years of nearly faultless operation".

MCC Zheleznogorsk also produces granulated MOX for vibropacked FNR fuel, using both military and civil plutonium.

Other R&D establishments

PA Mayak  at Ozersk is the main production centre for radioisotopes.

The Institute for Reactor Materials  (IRM) is at Zarechny, near Beloyarsk, Penza oblast.

TVEL's A.A. Bochvar High Technology Research Institute of Inorganic Materials ( VNIINM ) at Mayak supplies components for fast reactor fuel assemblies. It earlier developed the technology for reprocessing spent uranium-beryllium fuel from liquid metal-cooled fast reactors in dismantled Alpha-class nuclear submarines.

The All-Russian Scientific and Research Institute for Nuclear Power Plant Operation ( VNIIAES ) in Moscow was founded in 1979 to provide scientific and technical support for operation of nuclear power plants aimed at improving their safety, reliability and efficiency as well as scientific coordination of the setup of mass-constructed nuclear power facilities.

In 2009 the Moscow Engineering and Physics Institute (MEPhI) was renamed the National Research Nuclear University and reformed to incorporate a number of other educational establishments. While partly funded by Rosatom, it is the responsibility of the Federal Education Agency (Rosobrazovaniye).

Public opinion

An April 2008 survey carried out by the Levada Centre found that 72% of Russians were in favour of at least preserving the country's nuclear power capacity and 41% thought that nuclear was the only alternative to oil and gas as they deplete. Over half said that they were indignant about Soviet attempts to cover up news of the Chernobyl accident in 1986.

In April 2010 the Levada Centre polled 1600 adults and found that 37% supported current levels of nuclear power, 37% favoured its active development (making 74% positive), while 10% would like a phase-out and 4.3% would prefer to abandon it completely. 42.6% saw no alternative to nuclear power for replacing depleting oil and gas.

Immediately after the Fukushima accident in 2011 Levada had only 22% for active development, 30% maintaining current level (ie 52% positive), 27% wanting a phase-out and 12% wanting to abandon it.

In February 2012 a Levada Centre poll showed that 29% of respondents favoured active development of nuclear power, while 37% support retaining it at the current level, so 66% positive. Only 15% of suggested phasing it out, and 7% preferred abandoning nuclear.

The Russian Public Opinion Research Center (VCIOM) took a poll in April 2012 on the anniversary of the Chernobyl accident. It found that 27% of Russians support nuclear power development – up from 16% in 2011, 38 % agree with the present level, and 26% want to reduce it. Nuclear development is supported by young (32%), highly-educated Russians (31%), residents of cities with a population of one million and more, large cities and towns (30-33%). Regarding safety, 35% consider plants of be sufficiently safe, and 57% don’t.

In 2015 a poll commissioned by Rosenergoatom found that a clear majority of citizens living near nuclear power plants were in favour of them, and that support had grown since 2013. Most figures for the local plants were more than 70% favourable, and for nuclear power development they were above 80%.

Non-proliferation

Russia is a nuclear weapons state, and a depository state of the Nuclear Non-Proliferation Treaty (NPT) under which a safeguards agreement has been in force since 1985. The Additional Protocol was ratified in 2007. However, Russia takes the view that voluntary application of IAEA safeguards are not meaningful for a nuclear weapons state and so they are not generally applied. One exception is the BN-600 Beloyarsk-3 reactor which is safeguarded so as to give experience of such units to IAEA inspectors.

However, this policy is modified in respect to some uranium imports. All facilities where imported uranium under certain bilateral treaties goes must be on the list of those eligible and open to international inspection, and this overrides the voluntary aspect of voluntary offer agreements. It includes conversion plants, enrichment, fuel fabrication and nuclear power plants. Also the IUEC at Angarsk will be open to inspection.

Russia undertook nuclear weapons tests from 1949 to 1990.

Russia's last plutonium production reactor which started up in 1964 was finally closed down in April 2010 - delayed because it also provided district heating, and replacement plant for this was ready until then. The reactor may be held in reserve for heating, not dismantled. The other two such production reactors were closed in 2008. All three closures are in accordance with a 2003 US-Russia agreement.

Peaceful Nuclear Explosions

The Soviet Union also used 116 nuclear explosions (81 in Russia) for geological research, creating underground gas storage, boosting oil and gas production and excavating reservoirs and canals. Most were in the 3-10 kiloton range and all occurred 1965-88.

Background: Soviet nuclear culture

In the 1950s and 1960s Russia seemed to be taking impressive steps to contest world leadership in civil development of nuclear energy. It had developed two major reactor designs, one from military plutonium production technology (the light water cooled graphite moderated reactor – RBMK), and one from naval propulsion units, very much as in USA (the VVER series - pressurised, water cooled and moderated). An ambitious plant, Atommash, to mass produce the latter design was taking shape near Volgodonsk, construction of numerous nuclear plants was in hand and the country had many skilled nuclear engineers.

But a technological arrogance developed, in the context of an impatient Soviet establishment. Then Atommash sunk into the Volga sediments, Chernobyl tragically vindicated western reactor design criteria, and the political structure which was not up to the task of safely utilising such technology fell apart. Atommash had been set up to produce eight sets of nuclear plant equipment each year (reactor pressure vessels, steam generators, refueling machines, pressurizers, service machinery – a total of 250 items). In 1981 it manufactured the first VVER-1000 pressure vessel, which was shipped to South Ukraine NPP. Later, its products were supplied to Balakovo, Smolensk (RBMK), and Kalinin in Russia, and Zaporozhe, Rovno and Khmelnitsky plants in Ukraine. By 1986 Atommash had produced 14 pressure vessels (of which five have remained at the factory), instead of the eight per year intended. Then Chernobyl put the whole nuclear industry into a long standby. Russia was disgraced technologically, and this was exacerbated by a series of incidents in its nuclear-propelled navy contrasting with a near-impeccable safety record in the US Navy.

An early indication of the technological carelessness was substantial pollution followed by a major accident at Mayak Chemical Combine (then known as Chelyabinsk-40) near Kyshtym in 1957. The failure of the cooling system for a tank storing many tonnes of dissolved nuclear waste resulted in a non-nuclear explosion having a force estimated at about 75 tonnes of TNT (310 GJ). This killed 200 people and released some 740 PBq of radioactivity, affecting thousands more. Up to 1951 the Mayak plant had dumped its waste into the Techa River, whose waters ultimately flow into the Ob River and Arctic Ocean. Then they were disposed of into Lake Karachay until at least 1953, when a storage facility for high-level waste was built – the source of the 1957 accident. Finally, a 1967 duststorm picked up a lot of radioactive material from the dry bed of Lake Karachay and deposited it on to the surrounding province. The outcome of these three events made some 26,000 square kilometres the most radioactively-polluted area on Earth by some estimates, comparable with Chernobyl.

After Chernobyl there was a significant change of culture in the Russian civil nuclear establishment, at least at the plant level, and this change was even more evident in the countries of eastern Europe who saw the opportunity for technological emancipation from Russia. By the early 1990s a number of western assistance programs were in place which addressed safety issues and helped to alter fundamentally the way things were done in the eastern bloc, including Russia itself. Design and operating deficiencies were tackled, and a safety culture started to emerge. At the same time some R&D programs were suspended.

Both the International Atomic Energy Agency and the World Association of Nuclear Operators contributed strongly to huge gains in safety and reliability of Soviet-era nuclear plants – WANO having come into existence as a result of Chernobyl. In the first two years of WANO's existence, 1989-91, operating staff from every nuclear plant in the former Soviet Union visited plants in the west on technical exchange, and western personnel visited every FSU plant. A great deal of ongoing plant-to-plant cooperation, and subsequently a voluntary peer review program, grew out of these exchanges.

Notes & references

General references.

Prof V.Ivanov, WNA Symposium 2001, Prof A.Gagarinski and Mr A.Malyshev, WNA Symposium 2002 Josephson, Paul R, 1999, Red Atom - Russia's nuclear power program from Stalin to today Minatom 2000, Strategy of Nuclear Power Development in Russia O. Saraev, paper at WNA mid-term meeting in Moscow, May 2003 Rosenergoatom Bulletin 2002, esp. M.Rogov paper Perera, Judith 2003, Nuclear Power in the Former USSR , McCloskey, UK Kamenskikh, I, 2005, paper at WNA Symposium Kirienko, S. 2006, paper at World Nuclear Fuel Cycle conference, April and WNA Symposium, Sept Shchedrovitsky, P. 2007, paper at WNA Symposium, Sept Panov et al 2006, Floating Power Sources Based on Nuclear reactor Plants Rosenergoatom website Rosatom website nuclear.ru OECD NEA & IAEA, 2012, Uranium 2011: Resources, Production and Demand – 'Red Book' Rybachenov, V. 2012, Disposition of Excess Weapons-grade Plutonium – problems and prospects, Centre for Arms Control, Energy & Environmental Studies Status of Small and Medium Sized Reactor Designs – A Supplement to the IAEA Advanced Reactors Information System (ARIS) , International Atomic Energy Agency, September 2012 Diakov, A. & Podvig, P, March 2013, Spent nuclear fuel management in the Russian Federation Gavrilov, P.M. Sept 2015, Establishing the centralised ‘dry’ SNF storage and the MOX-fuel production for fast neutron reactors at MCC site, World Nuclear Association 2015 Symposium presentation. M. Baryshnikov, REMIX Nuclear Fuel Cycle, World Nuclear Fuel Cycle conference, Abu Dhabi, April 2016 M. Aboimov, Enriching the Past (legacy nuclear materials), World Nuclear Fuel Cycle conference, Abu Dhabi, April 2016 A.V. Boitsov et al , Uranium production and environmental restoration at the Priargunsky Centre, Russian Federation , International Atomic Energy Agency (2002) European Bank for Reconstruction and Development (EBRD) & Northern Development Environmental Partnership, Overcoming the Legacy of the Soviet Nuclear Fleet , Andreeva Bay 27 June 2017 Anatoli Diakov. The History of Plutonium Production in Russia , Science & Global Security, 19, pp. 28-45 (2011)

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