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European Nuclear Supply
Chain: Overview and Insight
By Michael Vickery - Senior Industry Analyst
Nuclear Energy Insider
Report Overview:
Part 1: Supply Chain Opportunities - New Build and Increased Capacity
Part 2: Economic Impact of Hinkley Point C
Part 3: Rosatom’s Fennovoima deal reshapes new nuclear
Part 4: Nuclear decommissioning fostering technology breakthroughs
© FC Business Intelligence
Report produced by

European Nuclear Supply Chain:
Overview and Insight
www.nuclearenergyinsider.com
European Nuclear
Supply Chain Conference
(Brussels, 1-2 September)
Strengthen your nuclear supply
chain strategy to save costs,
drive quality and ensure safety
standards across all major
nuclear projects
www.nuclearenergyinsider.com/
nuclear-supply-chain-europe/
Introduction
Despite a number of set-backs the nuclear supply chain still has a lot to look forward to.
The International Energy Agency expects global nuclear capacity to rise by 60% to 2035
and with new build projects underway or being planned in the UK, France, Finland and
across Eastern Europe the European supply chain must be ready to take advantage of
the opportunities that will present themselves in the coming decades.
With the industry approaching its 50th birthday it’s not only new build that will impact
limited industry resources. Operations, maintenance, decommissioning and waste
management will provide a further strain on industry resources whilst simultaneously
delivering billions of euros worth of investment opportunities to those in the nuclear
supply chain.
To help you gain insight into supply chain opportunities Nuclear Energy Insider has
put together a series of useful content pieces so you can streamline your supply chain
strategy in the European market.

Part 1: Supply Chain Opportunities – New Build and Increased Capacity
European New Build Timeline
Increased Capacity in Europe
Source: WNA
SLOVAKIAMochovce3,EO:2014
SLOVAKIAMochovce,EO:2014
SLOVAKIAMochovce,EO:2015
FRANCEFlamanville,EO:2016
FINLANDOlkiluoto3,EO:2016
BELARUSOstrovets1,EO:2019
ROMANIA
Cernavoda3,EO:2019
BELARUSOstrovets2,EO:2020
ROMANIA
Cernavoda4,EO:2020
FINLANDOlkiluoto4,EO:2020
BULGARIAKozloduy7,EO:2022
UKHinkleyPointC,EO:2023
UKMoorside,EO:2024
FINLANDFennovoimaHanhikivi1,EO:2024
UKWylfaNewydd,EO:2025
SLOVAKIABohuniceNew
Block,EO:2025
SLOVAKIAKecerovce,EO:After2025
UKOldburyB,EO:late2020s
UKSizewellC,EO:tbcv
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2025+
SWEDEN
Sweden's utilities have uprated all three plants.The
Ringhals plant was uprated by about 400 MWe over
2006-11, and plans will take it to 660 MWe uprate
over 25 years. Oskarshamn-3 was uprated by 21%
to 1450 MWe at a cost of EUR 313 million, and a
27% uprate of unit 2 is in progress. Forsmark 2 had
a 120 MWe uprate (12%) to 2010.
SPAIN
Spain has had a program to add 810 MWe (11%) to
its nuclear capacity through upgrading its nine
reactors by up to 13%. Some 519 MWe of the
increase is already in place. For instance, the
Almarez nuclear plant was boosted by 7.4% at a
cost of US$ 50 million.
FINLAND
Finland boosted the capacity of the original Olkiluoto
plant by 29% to 1700 MWe.This plant started with
two 660 MWe Swedish BWRs commissioned in 1978
and 1980.The Loviisa plant, with twoVVER-440
(PWR) reactors, has been uprated by 90 MWe (10%).
SWITZERLAND
Switzerland, the capacity of its ﬁve reactors has been
increased by 13.4%

European Nuclear
nuclear projects
Part 2: Economic Impact of Hinkley Point C
Source: EDF Energy
Once built, estimates
show that Hinkley Point C
will add £144m each year
to the UK’s GDP, including
£100m each year in the
regional economy during
the peak construction
phase and then £40m
annually during the 60
years that the plant will be
operational
Recently released figures
from EDF Energy report
that it hasagreed new
contracts with over 300
UK companies supporting
its plans for new, low
carbon, nuclear worth in
excess of £650m. A new
build programme would
therefore be a major boost
for the UK economy
Construction of Hinkley
Point C will represent
an investment in UK
infrastructure similar in
scale to the construction
undertaken to support
the London 2012 Olympic
Games. The project will
generate around 25,000
jobs during construction
and 900 permanent
ones once the new
power station goes into
operation.

Part 3: Rosatom’s Fennovoima deal reshapes new nuclear
We look to Finland to see how Rosatom could be aiming to consolidate its credentials
as a safe pair of hands for new nuclear projects, not just in emerging markets, but also
potentially among choosier buyers, such as EU nations, and with funding to boot.
A deal signed last December with the Finnish nuclear consortium Fennovoima could
have significant implications for Russian reactor builder Rosatom’s fortunes in Europe
and elsewhere.
The contract, for Rosatom to build and part-own a 1,200 MW, AES-2006 pressurised
water reactor in Northern Finland, will showcase Russia’s nuclear new-build capabilities
in a market where its main European competition is facing difficulty.
At Olkiluoto, 470 kilometres south of the planned Russian reactor site at Hanhikivi,
the European nuclear consortium Areva-Siemens is in a legal battle with Teollisuuden
Voima Oyj, a Finnish utility, over delays and cost overruns with a project that began
construction in 2005.
The 1,600 MW Olkiluoto 3 European Pressurized Reactor (EPR) was supposed to have
entered commercial production in 2010, with a price tag of €3bn ($4bn). Since then,
costs have ballooned, topping €8.5bn ($11.7bn) by the end of 2012.
A commissioning date, last cited as 2016, has now been left open pending an updated
schedule. In contrast, Rosatom is looking to have its reactor up and running by 2024,
with a build cost of €6 billion (USD$8.2bn).
It remains to be seen whether the Russians can make good on this promise, but there
are reasons for Fennovoima to have confidence in its choice.

European Nuclear
nuclear projects
First EPR
For a start, while Olkiluoto 3 was the world’s first EPR, and was therefore always
potentially liable to suffer from first-of-a-kind construction glitches, the AES-2006 is
based on an established Russian design, the VVER-440, which is already operational in
Finland.
This is an important consideration, particularly since subsequent EPR contracts have
yet to prove the design can be built easily and cheaply. Areva’s second attempt, for the
French state utility Electricite de France (EDF) in Flamanville, has also suffered delays
and cost overruns.
As of December 2012, the original bill of €3.3bn had escalated to €8.5bn, as at Olkiluoto.
Areva has subsequently begun work on two further EPRs, in Taishan, China, for €4 billion
apiece, in partnership with EDF.
Last November EDF’s chief executive, Henri Proglio, said“Taishan is progressing well”
despite the start date for commercial operation already having been put back a year, to
2015. No cost overruns have yet been reported on this project.
However, the cost differential between EPRs and Russian-built reactors is evident in
another project, Hinkley Point C.
There, EDF’s UK subsidiary EDF Energy is planning to build two EPRs for GBP£8 billion
(€9.55 billion) each, producing energy at GBP£92.50 (USD$155/€112) per megawatt-
hour (MWh). That is more than twice the cost of the energy Fennovoima is hoping to get
from its Hanhikivi plant.
€50 per MWh
In an interview this year with Energy Post, a European Union (EU) power sector
newsletter, Pekka Ottavainen, chairman of Voimaosakeyhtiö, which owns Fennovoima,
said the price“will not be higher than €50 per MWh. If it goes higher than that, there will
be no deal.”
Edward Kee, vice president of NERA Economic Consulting, points out that Rosatom has
an advantage when it comes to costs because the business is effectively backed by the
Russian state.
“The Fennovoima deal involves some level of Rosatom ownership and a proven
VVER reactor design,”he says.“It is similar to other deals where Rosatom bundled
government-to-government loans or outright ownership and long-term fuel
arrangements with a power plant.
“Such deals are possible with Rosatom’s government and mandate, but would be
difficult or not possible for a private nuclear power plant vendor.”

The combination of government funding and an established reactor design has helped
Russia win contracts in markets such as Bangladesh, Belarus, Hungary and Vietnam,
says Kee.
Groundbreaking deal
Rosatom even became the first nuclear vendor to enter Turkey thanks to a
groundbreaking deal that will see the Russian company build, own and operate a plant
in Akkuyu, in the south of the country.
“The Fennovoima deal is somewhat new,”Kee says,“in that it puts Rosatom into a market
that is more developed than some other targets, with participation in the Nordpool
electricity market when the plant is completed.”
World Nuclear Association analyst Jeremy Gordon says it may not be entirely fair to view
Hanhikivi and Olkiluoto as a contest between Rosatom and Areva, since every project is
a unique combination of site and design, as well as a new challenge in terms of Finland’s
meticulous regulation.
Nevertheless, there is certainly a sense that Rosatom could be aiming to consolidate its
credentials as a safe pair of hands for new nuclear projects, not just in emerging markets
but also potentially among choosier buyers such as EU nations, and with funding to boot.
“I think the Russians would really love to build in the European Union,”Gordon says:
“They have got their own technology, their own supply chain, their own research and
development, and full political backing. They are able to offer finance. That’s their key
selling point.”
Source: Nuclear Energy Insider

European Nuclear
nuclear projects
Part 4: Nuclear decommissioning fostering technology breakthroughs
The supply chain for the UK’s nuclear decontamination and decommissioning (D&D),
is a complex myriad of projects that leads many businesses to adapt to the changing
conditions around them fostering technology breakthroughs.
Recently in the UK, the Nuclear Decommissioning Authority (NDA) awarded a five
year contract to Nuclear Management Partners (NMP), which combines the expertise
of URS, AMEC and AREVA, and is the parent company of Sellafield Ltd, to continue its
management role of reprocessing and waste storage facilities at the Sellafield plant.
There has been some criticism of NMP’s performance so far, but they believe they can
deliver over the course of the new contract.
A Sellafield spokesman explains:“A starting point for us is to gain a full understanding of
the deliverability of the whole programme, understanding, for example, where we have
a scarcity of resource, lack of trained people, logistics issues and so on.”
“That helps us to understand what the risk priorities are, so we can programme our work
in a way that gives us the maximum impact on risk and hazard reduction as quickly as
we can.”
“It’s about working closely with our supply chain to ensure that we’re operating in an
integrated manner as effectively as possible. In that way, we can respond if certain
issues occur, whether that’s around provision of trained labour or issues associated with
plant or equipment.”
“That means effectively planning our campaigns of work and understanding our ability,
and the ability of the supply chain to deliver,”he adds.

NDA’s D&D Supply Chain: a £1.6bn yearly business
The NDA spends more than half of its budget on the D&D supply chain, a total of £1.6bn
each year, spent through its site licence companies (SLCs).
Additionally £80m to £100m is released annually on research and development, where
the majority of this funding is spent through the SLCs, and the remaining amount
distributed to work which is being directly funded.
There are many research and development partners that NDA collaborate with
alongside the Site Licences Companies, including central government, universities and
research institutions, national nuclear laboratories, and regulators such as the Office for
Nuclear Regulation.
A considerable 3,500 companies are involved in the D&D supply chain, and the NDA
has created a plethora of measures to ensure that the path for them is as smooth as
possible, in particular targeting SME’s.
This includes an established steering group for SME’s at a national and regional level,
with an action plan for small businesses that aims to direct 20% of funding to them.
For supply chain sub-contractors, the routes were simplified last year, as before the
NDA’s‘flowdowns’were deemed to be far too complex.
After a series of workshops with supply chain representatives, it was decided that the
ceiling on‘flowdown’regulations for sub-contact work would be raised to over £150,000
from £50,000.
There will also be a separation of which‘flowdowns’apply to lower tier projects,
compared to the more substantial D&D operations.
Supply Chain Charter
In 2010 the NDA produced a supply chain charter, which is still largely adhered to, that is
streamlined into three main sections of relationships, planning and performance.
Trust, in addition to being open with information and having reliable and clear
expectations from suppliers, is an integral theme of the relationships within the charter;
where two-way constructive feedback is also encouraged.
Entering into consultation with suppliers on pricing and specifications has been
highlighted as a vital part of the planning process, where throughout the stages of
procurement the information should be constantly updated, and all conflicts of interest
identified as soon as is possible.
Rigorous health and safety, security, and environmental standards, are to be applied to

European Nuclear
nuclear projects
enhance performance, and specifications are to be made clear on industry standards,
which ultimately can encourage an innovative environment in D&D.
Energy Solutions, a US-based company dealing with decommissioning of nuclear plants,
and all the hazardous material that accompanies this task, with have operations based
in several countries.
Currently their main decommissioning work consists of decommissioning the Magnox
fleet in the UK, and winding down the Zion nuclear power station in the Chicago area.
A spokesperson for the company outlines the issues they face:“The technology is
there for decommissioning, and in the United States there is storage capacity for waste
disposal.”
“The question being asked right now is whether a plant should be put into safe store or
begin decommissioning. If the decision is made to decommission now, there are certain
variables which include cost certainty and disposal capacity that can be accurately
projected providing D&D as an option to seriously consider.”
Japan to unite meeting of the minds
For all companies involved in the D&D supply chain, the complex pattern and the
relative solutions will continue to evolve. This is certainly the case in Japan, where
in recent weeks Japan announced that it is soliciting proposals from both domestic
and overseas nuclear experts and firms for how best to decommission Fukushima’s
damaged reactors.
The International Research Institute for Nuclear Decommissioning will publicly seek
ideas. While it is not presently putting the entire decommissioning process out to
tender, the body’s move will be welcomed by the international community, which
has long called for Japan to make better use of available expertise around the globe,
according to Japan’s media sources.
The institute, formed by nuclear-related firms and government-backed bodies in August
to dismantle the broken reactors, will screen decommissioning proposals and take the
results to the government, according to Japan an unnamed official.
There will also be a website developed in English and Japanese to notify interested
parties at home and abroad when decommissioning ideas are required. This
international meeting of the minds per se will foster new technology and supply chain
processes that will only benefit the entire nuclear industry, once lessons are learned and
communicated to the wider industry.

CONFERENCE HIGHLIGHTS
STRENGTHEN YOUR NUCLEAR SUPPLY CHAIN STRATEGY
TO SAVE COSTS, DRIVE QUALITY AND ENSURE SAFETY
STANDARDS ACROSS ALL MAJOR NUCLEAR PROJECTS
Hosted By: Endorsed by:
> Understand how harmonisation of regulatory standards
across Europe will affect the nuclear supply chain and
learn how to follow best practice in operational safety
> Gain insight into the largest European nuclear new build
projects to help you counter the resourcing challenges
posed by the latest wave of nuclear construction
> Discover ground-breaking new procurement models
being implemented by major European utilities so you
too can streamline your procurement processes, manage
physical plant ageing and create a full fleet lifetime
plan
> Review the adverse impact of obsolete equipment
and counterfeit components on your operations and
understand how to best work with your suppliers to
avoid becoming non-compliant
> Maximise the efficiency of both your global and
local nuclear supply chains to guarantee fluid and
streamlined operations throughout your supplier base
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LONG TERM FINANCING NNB PANEL: How will the surge of new
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