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News and Insight for the New Commercially Focused Nuclear Industry

News and Insight for the New Commercially Focused Nuclear Industry

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    IHS McCloskey Nuclear business IHS McCloskey Nuclear business Document Transcript

    • NOVEMbER 011 ISSUE 50IHS McCloskeyNuclear businessNews and Insight for the New Commercially Focused Nuclear Industry mccloskeycoal.combattle for Temelin Uranium Prices Spot 05-Sep 10-Oct 31-Oct $ 51.00 52.75 52.00contract gets underway € Source: Ux Consulting (uxc.com) Future Nov-11 36.15 Dec-11 38.64 37.34 Jan-11 CME 52.50 52.50 52.75A CONTRACT TO build two new units at the The tender documentation, with 6,000 Source: CMECzech Republic’s Temelín nuclear power pages and weighing over 70kg in its printed wNA Nuclear Energy Index (total return)plant (NPP) could be the largest tender in form, was put together over three years by Aug-11 Sep-11 Oct-11Czech history and one of the biggest civil a 400-strong team. All bids and plans must In US $ 2,963 2,647 2,923engineering projects in the European Union comply with the relevant legislation of the In EURO € 1,832 1,756 1,866for the foreseeable future. Czech Republic as well as applicable EU re- index: 1000 = Dec 2001 Czech utility CEZ on 31 October formally quirements and safety requirements defined Regional nuclear power overviewissued an invitation to three candidates bid- by the International Atomic Energy Agency No. Units Under Con Plannedding to complete units 3 and 4 at Temelin. (IAEA) and the Western European Nuclear InstalledThe tender document calls for the supply of Regulators’ Association (WENRA). Further- Europe 187 14 41two complete nuclear power units on a full more, Benes said, the plans must also be N. america 123 4 10turn-key basis, including nuclear fuel supply licensed in the vendors’ home countries or S. America 4 2 2for nine years of operation. in one of the EU member states. “The plans Asia 109 41 93 The deadline for submitting bids is 2 July will only be licensed in the Czech Republic if M. East 1 - 82012 and the winning bidder is expected the aforementioned set of requirements has Africa 2 - -to be announced and the contract signed in been fulfilled,” he emphasised. Total 426 61 154late 2013. The three candidates are a consor-tium led by US-based Westinghouse Electric Transparency in bidder selection Capacity(Mw) UnderCon PlannedCorporation (now part of Japan’s Toshiba) AREVA is putting forward its EPR design, as Installedwith its AP1000 reactor unit; France’s licensed in Finland and France and eventu- Europe 163,104 13,260 47,120AREVA with its European Pressurised Water ally also to be licensed in the UK and US. N. America 115,077 3,408 11,940Reactor (EPR1600); and a consortium led by The ASE bid is based on the MIR-1200 third S. America 2,836 2,150 773Russia’s Atomstroyexport (ASE) with OKB generation VVER model under construction Asia 79,808 42,416 103,892Gidropress and Czech-based Skoda, offering in Russia at Leningrad Phase II and Novovo- M. East 915 - 9,600the MIR (Modernised International Reac- ronezh Phase II. Westinghouse’s AP1000 is Africa 1,800 - -tor) 1200 unit. undergoing design certification revisions Total 363,540 61,234 173,325 The Czech Republic currently has six op- soon to be complete in the US and is in the Generation Uraniumerating units – four Soviet-design VVER-440 licensing process in the UK. Twe(010) Needed 011(t)units at Dukovany NPP and two VVER-1000 Bidders will have the opportunity to Europe 1,142.2 27,049units at Temelin, which began operating in participate in joint meetings including N.America 898.2 20,5062000 and 2003. site visits and a pre-bid conference. CEZ S.America 20.6 526 Temelin was originally conceived as a four- has promised to proceed in an “absolutely Asia 516.3 12,331unit plant. In April 2009, local authorities in transparent manner” in selecting the sup- M.East - 168South Bohemia signed a contract with Czech plier. The first of the two new units should Africa 12.9 304state-owned power utility CEZ that cleared be launched in 2022 or 2023 and the second Total 2,590.2 60,884obstacles to the construction of Temelin-3 the following year. Source: Derived from WNAdataand -4, overturning a 2004 resolution block- Vaclav Bartuska, the Czech government’sing construction of the units. CEZ chairman envoy for energy matters, said the tender © IHS Global Limitedand CEO Daniel Benes said the invitations to has no predetermined winner and all three Licensee warrants and undertakes to IHS Global Limited that it recognises and will not infringe thebid were “an important step” towards ensur- bidders have a chance. “Criteria to evalu- copyright and any other intellectual property right of IHS Global Limited in the Publications; it shall not use,ing a reliable supply of electricity to Czech ate the bids is set in the optimum ratio in distribute, reproduce, copy, transmit or enter into any computer or computer network or procure or permit thecustomers in the coming decades, adding which 50% is centred on technical specifi- use, distribution, reproduction, copying, transmission or entering into any computer or computer network ofthat completion of the Temelin NPP is “a key cations including safety and licensing, and any or any part of the Publications, including, but not limited to, single prices, charts and altered Data, unlesspillar” of CEZ’s strategy. the remaining 50% on the economics of expressly permitted to do so under IHS Global Limited.1 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Contents For further in-depth coverage go to mccloskeycoal.comLEADS NEw bUILD EU studies find geological disposal effective 44Battle for Temelin contract gets underway 1 Finland’s EPR may face more delays 9 Dounreay begins workon LLW store 45Renewed pressure on Iran 5 New projects move forward in China 30 AREVA signs Ukraine waste pact 45No showstoppers in UK Post-Fukushima Review 6 China signs Tianwan II contract 30 Westinghouse team gets Bulgarian waste deal 45Fission not criticality at Fukushima unit 2 8 US Watts Bar-2 revises management 31 Serbia builds storage facility 46 US Vogtle newbuild under budget 31 Continuing tension over Lithuanian storage 46FUKUSHIMA UPDATE Russia’s Baltic NPP still seeking investors 31 Waste briefs 46NPP released more radiation than reported 9 Progress continues at Russian NPPs 3Decontamination methods considered 10 CLEAN UPDealing with waste material 11 PLANT OPERATIONS Spent fuel imports fund Mayak clean-up 47Government no longer promotes nuclear 11 UK Oldbury NPP to close 3 Clean up briefs 47Bailing out Tepco 1 Plant operation briefs 3Fukushima update - briefs 1 DECOMMISSIONING SUPPLY CHAIN EQUIPMENT Russia to develop decommissioning concept 48bUSINESS Ansaldo joins UK module partnership 33 Decommissioning briefs 48EDF opposes Constellation-Exelon merger 1 Equipment briefsFluor takes majority stake in NuScale 13 NUCLEAR MATERIALSCost recovery approved for two US utilities 13 SAFETY & SECURITY Activists sue to stop Los Alamos plutonium lab 48Energy Fuels and Titan seek merger 13 US NRC approves Fukushima recommendations 34 US support sisotope production 48US joint venture for tails management 14 Cracks found in US NPP containment 34Rio Tinto outbids Cameco for Hathor 14 Sweden increases earthquake protection 35 NEw TECHNOLOGIESAREVA sales down 15 Safety briefs 35 South Carolina to set up nuclear centre 49Russia to improve procurement transparency 15 New technology briefs 49Russia restructures nuclear fuel industry 16 URANIUMTVEL plans rapid growth 16 Olympic Dam hurdles 37 PEOPLECommissioning of Russia’s floating plant delayed 17 Mixed results for Paladin 37 On the move 49Business briefs 17 Bannerman takeover falters 37 Forsys gains 100%of Namibian project 38 THE MNb INTERVIEwGENERAL DEVELOPMENT Uranium mining controversial in Tanzania 38 Richard Myers, Nuclear Energy Institute 50Belgium shutdown agreement 19 AREVA puts Central African mine on hold 38E.ON and RWE get taxes reimbursed 19 Slovak resource estimate 39 COUNTRY PROFILEChina to scale back nuclear plans 0 Colorado uranium lease programme halted 39 US Nuclear Fuel Cycle 5Bangladesh signs NPP deal with Russia 0 US county backs mining moratorium 39 New Mexico licencere activated 40 NUCLEAR PLATFORMAustralia wavering on uranium sales to India 1 UrAmerica and Cameco look to Argentina 40 Mike Berriochoa, Washington River ProtectionIndian anti-nuclear protests continue 1 British Columbia compensates Boss Power 40 Solutions 57Taiwan puts limits on nuclear power Vietnam’s programme draws interest  Uranium briefs 40 REGULARSJapan to continue nuclear plant exports 3 FUEL - ENRICHMENT TO STORAGE Uranium Market Round up 58UAE seeks approval for construction 3 USEC centrifuge plant still on hold 4 Outage Watch 59Russia prepares for reactor export 4 Russia to start reprocessing RBMK fuel 4 Carbon Market View 59Belarus and Russia sign NPP contract 4 Ukraine fuel plant gets local approval 4 S&P’s Global Energy Indices 60Armenian NPP settles pay dispute 4 Fuel briefs 43 Competing fuels, power prices and carbon 60Belene financing still unresolved 5 Global Nuclear Capacity 61South Africa considers NPP tender 5 wASTE MANAGEMENT Nuclear Business Share Prices 6General briefs 6 US waste solutions considered 44 Events Calendar 64 Senior Vice President IHS US Correspondent Editorial Address Published once a month ® MIX Michael Dell Thecla Fabian IHS McCloskey Annual subscription £1,075* Paper from responsible sources Unit 6, Rotherbrook Court (hard copy and email) FSC® C020438 Publisher & Managing Editor Marketing Petersfield, GU32 3QG, UK Annual subscription £920* (email only) John Howland Marketing Manager This publication was produced john.howland@mccloskeycoal.com Alina Bucur Sales and Subscriptions * Plus VAT where applicable using FSC® certified paper alina.bucur@ihs.com Nicola Tame Editorial nicola.tame@mccloskeycoal.com Managing Editor Production Published by IHS McCloskey Tel: +44 (0)1730 265 095 Scott Dendy Production Manager scott.dendy@mccloskeycoal.com Emma Duncan Registered Office Editor Production Assistant IHS Global Limited Judith Perera Liam McEwan Willoughby Road judith.perera@mccloskeycoal.com production@mccloskeycoal.com Bracknell, Berkshire, RG12 8FB, UK | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Leadthe offers, namely the price, commercial terms such as guarantees, Another EPR under construction at Taishan in China is supposedpayment terms or conditions in the supply of nuclear fuel,” CEZ to come on line ast the end of 2013, as is Westinghouse’s firs AP1000said in a statement. unit at Sanmen in China. Unit 1 at Russia’s Leningrad II plant is also The tender includes an option for CEZ to order the contractor to due for start-up in 2013.build up to three more reactors at other sites under the same termsand conditions, one of which could be build by a joint venture be- AREVA’s casetween the CEZ and Slovakia’s state nuclear company, JAVYS. Meanwhile the lobbying will continue. AREVA has criticised US support for Westinghouse, noting that Westinghouse, now ownedFrantic lobbying by Japan’s Toshiba, employs fewer Americans than AREVA. “We haveThe formal invitation to tender was preceded by some frantic lob- excellent relationships with the US energy industry as a whole,”bying by the bidders. Leaders have been shaking a lot of hands to AREVA’s Central and Eastern Europe Regional Director Thomas Epronpush for preferred bids, which is “completely normal,” Bartuska said, told The Prague Post. “AREVA is the largest company operating in thedenying the process has become overly politicised. nuclear field in the US, and the biggest employer in our sector.” Temelín was the main issue discussed by Czech Prime Minister Epron repeated in a recent interview with Czech Position. HePetr Necas when he visited Washington for talks with US President claimed that the EPR is the safest design, noting that it is the onlyBarack Obama on 27 October. A few days before, Rosatom CEO one of the three reactors on offer to have received licences in theSergei Kirienko had held talks with Necas during a trip to Prague, European Union. AREVA also claims that the EPR outstrips its rivalsand Russian President Dmitri Medvedev is due to visit Prague in De- in productive performance. “Two of our reactors will have a totalcember. Necas also visited French Industry Minister Eric Besson in output of 3,300MWe, but three of the competitors’ reactors wouldFebruary to discuss French participation in the tender, but generally be needed to reach that,” says Epron.the French have been less active in lobbying. He points out that Westinghouse’s AP 1000, has not received With the competition becoming more intense, speculation is licensing for construction in the US and alleges that the first fourmounting about which group has an advantage, especially as all implementations of this new reactor, currently being built at thethree bidders face challenges, such as delays in the construction Sanmen and Haiyang NPPs in China, are behind schedule. He alsoof their required reference reactors. AREVA’s EPRs being built in disputes that Russia’s Leningrad II NPP will be ready by 2013 sayingFinland and France are delayed and over budget; Westinghouse’s it will go online in 2014 at the very earliest, with 2015 or 2016 beingAP1000 has faced problems with regulatory approval in the US and a more realistic date.UK, although these are now more or less resolved; and construction AREVA says it would provide around 5,000 jobs locally if it wins theat Russia’s Leningrad NPP phase two, the reference model for MIR, contract, but is declining for the time being to put a figure to the valuewas briefly suspended because of an accident at the site, but has now of potential contracts for Czech subcontractors. “In order to be com-restarted. petitive, we have to harness local capacity to the maximum. And in this respect, we don’t believe the Russians have the edge,” Epson said.Intelligence leak favours Russia In January, AREVA announced an official partnership with theReports from the news site Aktualne.cz recently cited an unnamed Czech Technical University (CVUT)-Faculty of Nuclear Sciences andsource claiming to have seen documents from the Czech counter- Physical Engineering, and the University of West Bohemia in Plzenintelligence agency (BIS) saying the Russian-led bid was the most where it is funding R&D projects and exchange programmes withattractive but was saddled by security concerns, and that AREVA French research institutes. Over the past year AREVA has also organ-was “out of the picture.” What is more, the French are probably not ised a number of visits to French nuclear facilities by Czech nuclearall that interested because they have “plenty of orders elsewhere,” engineers and scientists, and also state officials.Aktualne.cz commented. One argument that could be used in favour of the French bid is the Security concerns about Russia have been a sensitive aspect of the fact that it is an EU member and French–Czech cooperation wouldtender since it was first introduced in 2009, when then-energy secu- enhance the union’s energy security. AREVA, however, claims it isrity envoy Bartuska asked the Russian bid not be included and later not playing this card. “We don’t do geopolitics,” Epron told Czechthat year two Russian diplomats were expelled for allegedly spying Position. When pressed, he said the Czech Republic needs to “care-to obtain sensitive energy information. fully consider its strategic energy options,” nevertheless, he says this “The Russians will get fair treatment like everyone else,” is political matter for the Czechs alone to decide.Bartuška said, adding the Aktualne.cz report was erroneous as Overall, however, AREVA is not making the same effort to winthere is no way for anyone to compare bids that have yet to be over the CEZ as either Westinghouse or Rosatom. Ruben Lazo,submitted. AREVA refused to comment on the alleged BIS report, AREVA Chief Commercial Officer recently noted that, while thecalling it “purely speculative.” Temelin tender was “very strategically important” for AREVA, it also None of the bidders have reference reactors up and running, which was focusing its resources in China and India, where it is buildingmakes comparative study difficult. Bartuska, recently said it would two and six EPR reactors respectively - and bidding for more.be advantageous for the bidders, and for CEZ, to have at least one oftheir new reactors operating before a final decision is made on the American diplomacytender Indeed, this could delay a decision on the supplier beyond Westinghouse appears to be depending more on diplomatic2013. Currently AREVA’s EPR being built at Olkiluoto in Finland manoevring than technical arguments in the battle for Teme-is expected to be operating in 2014 following a series of delays and lin. The issue clearly topped the agenda during Prime Ministersafety issues. It was originally scheduled for start up in 2009. Necas’s two-day visit to Washington. Underlying the importancemccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 3
    • Leadof the Temelín project to this visit, was the presence alongside wider Russian co-operationNecas of Daniel Benes, the new CEZ The project was discussed When asked by Czech Position about the Czech Ministry of Industrywith President Obama and US Secretary of Energy Steven Chu. “I and Trade government’s draft energy strategy for the next 50 yearshave clearly assured Obama the tender will be fair and transpar- leaked to the press in the summer, which proposes expanding ura-ent, that we expect three quality offers, and the best will win,” nium mining and establishing a full nuclear cycle including enrich-Necas said. US Ambassador to Prague Norman Eisen has lobbied ment and disposal in deep repositories, Kirienko said the strategyextensively on behalf of Westinghouse since taking up his post is “altogether reasonable”. He added that Rosatom had alreadyearly this year. proposed potential cooperation to CEZ and the Czech government in During his visit to Prague in October, Rosatom head Sergei Kirien- the areas of uranium enrichment and disposal.ko, said if the tender is decided primarily according to technologi- It would make economic sense for the Russian nuclear sector tocal and economic criteria then the consortium headed by Rosatom build an enrichment facility in the Central European region if andhas the best credentials to win, but if it is decided on geopolitical when there are 10 or more VVER-type reactors in operation in thegrounds, then it was a different matter. When asked at a press con- CEE region, he said.ference in Prague how Russia could match the high-level political A nuclear fuel fabrication plant may become an option within thelobbying being undertaken by Westinghouse, Kirienko said that if Russian package of offers on Temelin, according to Fuel Companystrategic allegiances were to be the deciding factor in selecting the TVEL Vice President Vasily Konstantinov. He said discussions on thetender winner Russia would lose. “There’s no doubt about that: the possibility of building a fuel fabrication plant in the Czech RepublicUS is a more important geopolitical partner for the Czech Republic.” was ongoing and a final decision was yet to be made by the company.However, he said that in negotiations with Czech representatives, “We are trying to cooperate and produce a good offer for the Czechincluding special envoy Bartuska, he had “no feeling of bias” or that market and Czech producers,” the executive explained.anything had already been agreed. The issue is global cooperation, participation of Czech companies Kirienko emphasised safety, technology and the jobs the Rus- and producers of equipment, in construction of nuclear reactors us-sian-led consortia could offer the Czechs. “However, we believe we ing Russian technology not only in the Czech Republic but in thirdcan win on a practical level,” he said listing key factors he believes countries as well. In this case, “fuel fabrication will become an inher-gives MIR 1200 the advantage. He claims the security credentials ent constituent of the cooperation,” Konstantinov said.of the reactor are superior to Westinghouse’s AP1000. Gidopressclaims the new VVER 1200 can withstand the impact of a plane Czech involvementweighing up to 400t and the reactor fully complies with the tight- Deals with Czech companies will have varying degrees of impor-ened safety recommendations drafted by the International Atomic tance, said Radek Skoda, a lecturer from the Energy Institute at theEnergy Association (IAEA) in response to the accident at the Fuku- Czech Technical University in Prague. The Czech nuclear industryshima plant in Japan. has not been running at full capacity for some time, he added, mak- ing some of the suppliers or services less available than others.Russia offers local participation “In the end, there are not so many suppliers in some areas...YouThe cost of contracts to be awarded to Czech suppliers if the Rosatom need big companies to build all the concrete and foundations, andbid wins could amount to €4-5bn (45.5-6.9bn), Kirienko told journal- they are likely to be involved in all three or at least two of the bids,”ists at the Russian-organised nuclear industry suppliers forum, Ato- Skoda said. He added companies have an interest in not limitingmex Europe that started in Prague on 25 October. Russia is also ready themselves to any one bidder, especially during a recession. Evento transfer technologies which can be mastered rapidly by Czech en- Skoda JS, which is part of the Russian-led consortium, has not ex-terprises “given similarity of the technological platforms”, he added. cluded the possibility of being involved in the other two bids.In future, after the Temelin project is completed, Czech enterprises Skoda JS is currently working with AREVA on other projects, andwould then able to manufacture equipment for other projects being was present at a meetings in Washington with Westinghouse offi-implemented by Rosatom in Russia and abroad, he noted. cials. “Some participants are trying to have eggs in many baskets,” Kirienko said he would sign agreements of cooperation with 12 Skoda said.Czech companies during his visit to the Czech Republic. The larg- As a concrete step toward increasing Czech-Russian co-operation,est would be with machine engineering firm Vítkovice Holding. a memorandum was signed by Czech and Russian enterprises atHe stressedhat there were opportunities for cooperation with the Atomex-Europe establishing Prague Atomic Alliance production andRussian nuclear sector for all of the 300 or so Czech companies at- trade association. Companies included IBC, Prahaspol, ZVUPoteza,tending Atomex. SigmaGroupa, Arako spol, ArmaturkaKrnova from the Czech Re- Rosatom believes that main advantage of the Russian is a unique public and AMT Group and Nizhniy Novgorod Nuclear Engineeringcombination of passive and active safety systems, reference reactors Business Centre from Russia.already built and the experience Czech specialists have in operat- Rusatom Overseas, an affiliate of Rosatom, signed cooperationing Russia-designed plants. A central, if not pivotal, argument the agreements with 15 Czech companies, including Arako, ModranyRussian-led consortium will present in their bid is a high degree of Power, Ckd Group, Mpower Engineering, Envinet, Sigma Group, Ex-localisation of the project. Up to 70% of the work on the Temelín proj- mont Energo, Skoda JS, Hochtief Cz, Vítkovice, Chemcomex Praha,ect would go to Czech firms, compared with a maximum of 30% which Zat, Chladící veze Praha, ZVVZ-Enven Engineering and Kralovopol-he said AREVA or Westinghouse could offer: “Why only 30%? It’s not ska Ria. The agreements involve specific cooperation projects on con-because they are greedy and wouldn’t want to outsource more. …It’s struction of Russia-designed NPPs both in Russia, Czech Republicbecause they simply can’t; there’s not the local know-how.” and third countries.4 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Lead Skoda JS Director General Miroslav Fial said this provided an op- sources, the West’s documents have been relegated to the appendi-portunity forCzech producers to go beyond the Temelin project and ces of the report by Agency Director General Yukiya Amano, much“jointly build up cooperation both in the Russian nuclear marker and to the annoyance of the US.in third countries’ markets” through the cooperation with Rosatom. According to Pierre Canesa, deputy research fellow at the Insti- Russia’s engineering holding Atomenergomash, which owns tute of International and Strategic Relations (IRIS,) the report isCzech machine engineering companies ARAKO and Chladici being manipulated. “The Agency’s boss is cornered now,” he says.veze Praha, is ready to establish a machine engineering centre in “If his report is not tough enough on Tehran, he will be accusedthe Czech Republic. Atomenergomash Director General Vladimir of having concealed evidence under pressure from the RussiansKashchenko told Atomex-Europe. The company, is considering and the Chinese. If, however, it points an accusing finger at thesetting up a common production and engineering cluster in central Iranians, people will say that he has yielded to pressure from theEurope based on these and other assets. Americans and the French.” One of the centre’s objectives will be deployment, at Czech en- The IAEA report is expected to unveil detailed intelligence point-terprises, of technologies for manufacture of machine engineering ing to military dimensions of Iran’s nuclear programme, whileequipment for NPPs being built in Russia and third countries, and stopping short of saying explicitly that Tehran is trying to build suchfor other power industry facilities. The Atomenergomash also does weapons. The report will expand on concerns voiced by the IAEAnot rule out acquisitions of new machine engineering assets in the for several years over allegations that Iran had a linked programmeCzech Republic. of projects to process uranium, test high explosives and modify a missile cone to take a nuclear payload. It is not believed to contain anRenewed pressure on Iran explicit assessment that Iran is developing a nuclear weapons capa- bility. “The IAEA’s report will not likely contain any smoking guns,” said Mark Hibbs of the Carnegie Endowment for International Peace.LAST MONTH’S SIGNS of moves towards a settlement of the Iran issue The UN Security Council, with the reluctant backing of Iran’swere clearly a false dawn. In the run up to the November Interna- traditional supporters, Russia and China, has imposed four roundstional Atomic Energy Agency (IAEA) board meeting Iran has come of increasingly tough sanctions on Tehran since 2006. However,under immense pressure again from the US and its allies. these would have been much more severe without the moderating New Western intelligence reports and other dramas which were influence of Moscow and Beijing, say sources close to the IAEA. Nowso strangely absent before the September IAEA General Conference a concerted effort is being made by the West to create conditions forare predictably in the forefront of the news again in the run up to the greatly increased sanctions.November board. This time they are accompanied by media reportsof Israeli plans for a military strike on Iran’s nuclear facilities. Threats of military action The deterioration began in early October with reports (which were Responding to a report in The Guardian that Britain was stepping upunsubstantiated) that Iran was implicated in a clumsy and absurd military contingency plans amid mounting concerns about Iran, aplot to murder the Saudi Arabia Ambassador to the US. While the spokesman for the British Foreign Office said that London was keep-press was full of details of the evidence to support Iranian involve- ing all options open - including the possibility of military action.ment in this, there were no reports explaining what Iran could “We want a negotiated solution, but all options should be kept on theconceivably have hoped to gain by this. table,” a Foreign Office spokesperson said. Officials in Tehran said they were ready to investigate allegations The Guardian report said the UK Ministry of Defence believedby the US that the Quds Force plotted to kill the Ambassador. “We the US may accelerate plans for missile strikes at some key Iranianare ready to patiently investigate any issue, even if it’s fabricated,” facilities and cited British officials as saying it would seek and receiveForeign Minister Ali Akbar Salehi told the state-run Islamic Republic military help from Britain for any mission. Other sources, however,News Agency. “We also asked America to give us the information say Israel would be more likely to use military force against Iranianrelated to this scenario.” Salehi and other Iranian officials, however, nuclear facilities than the US.continued to maintain that Iran had nothing to do with the alleged The French Liberation website quoted the representative of “a mi-plot, which they dismissed as a “bad Hollywood script.” nor country of the Community of Independent States” as saying, “So The best explanation the “experts” could offer for what they these are the real stakes that are still being concealed from us.” Heacknowledged was a “bizarre’ plot was that Iran was beginning to said the purpose of the sabre rattling by the US and France is “to sellcrack under the strain. In any event, this and the latest intelligence Moscow and Beijing the toughest economic sanctions ever adoptedreelations, have set the scene for more stringent sanctions on Iran. against Iran; they want to stifle the regime before contesting theUS administration officials briefed key lawmakers on the “plot”, and elections again, and since they know that they will never succeed ina number of senators and former officials publicly called for stronger having the Security Council adopt them, following NATO’s excessesaction against Iran beyond existing sanctions that critics say have in Libya, they are holding us to ransom: adopt our sanctions, or wefailed to have any real impact on Iran. can’t promise you that we will be able to restrain (Israeli Prime Min- ister) Netanyahu.”Another IAEA reportThe IAEA is due to produce another report on Iran shortly and the Programme setbacks allegedagency has been under severe pressure from the US and its allies Along with the sabre rattling, the Western press has also been carry-on one side and Russia and China on the other on how it should ing reports that Iran’s nuclear programme is suffering new setbacks,dela with the “new” intelligence information. According to several with suggestions that it has never fully recovered from the Stuxnetmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 5
    • Leadcyber attacks on its nuclear facilities and the assassination of several (NPPs), but identified more than 30 areas where the UK could learnleading nuclear scientists. The Washington Post quoted “Western from the Japanese crisis. These included reliance on off-site infra-diplomats and nuclear experts” as saying the programme “appears structure such as the electrical grid supply in extreme events, emer-beset by poorly performing equipment, shortages of parts and other gency response arrangements, plant layout, risks associated withwoes as global sanctions exert a mounting toll”, flooding, planning controls around nuclear facilities and prioritising The paper says output is falling at Iran’s Natanz enrichment safety reviews. Weightman report drew on national and interna-facility due to equipment failures. It adds that new centrifuges tional experts, and a June fact-finding mission to Japan including therecently introduced at Natanz contain parts made from an inferior Fukushima-Daiichi NPP.type of metal that is weaker and more prone to failure, according The report concluded that the direct causes of the Fukushimato a report by the Institute for Science and International Security, nuclear accident—a magnitude nine earthquake and the associateda Washington nonprofit group widely regarded for its analysis of 14-metre high tsunami—were far beyond the most extreme naturalnuclear programs. events that the UK would be expected to experience. However, The Institute says that Iranian scientists replaced more than 1,000 Fukushima demonstrated problems when the vulnerabilitiescrippled machines following the Stuxnet computer virus attacks. of older plants were not recognised and addressed, leading to aThe Natanz plant appeared to quickly recover, with production sur- conclusion that work to clean up legacy wastes in ponds and silos atpassing levels seen before the attack but the gains have not lasted. Sellafield must be pursued “with utmost vigour and determination.” “The decline could stem from the lingering effects of the cyberat- Weightman said ONR would continue to monitor detailed techni-tack, or it could indicate that Iran’s centrifuges are simply wearing cal information as it emerged from Japan. “We will ensure lessonsout. In any case, the decline is so significant that Natanz is incapable are learned from Fukushima. Action has already been taken in manyof fulfilling the needs of the country’s only nuclear power plant”, the cases, with work under way to further enhance safety at UK sites.”paper said, quoting the Institute. This is a strange assertion given ONR has asked the UK nuclear industry to deliver progress reportsthat fuel for the Bushehr nuclear power plant is being supplied by by June 2012 and will publish a report on this later that year.Russia. The Institute contends that Iran is using inferior carbon fibresteel in the new centrifuges now being installed in Nataanz and Huhne stresses safetyanother enrichment facility near Qom, compared with the Maraging Chris Huhne, head of the Department for Energy and Climatesteel used in the prototype machines. Change (DECC) presented the report to parliament. A government statement said additional information received since the interimProgress continues report “reinforced and further validated” its findings.However, regardless of the reported “setbacks” to its programme, He told a Royal Society meeting in London that, while nuclear hasIran in the past few months has begun producing 20% enriched fuel a role in UK electricity generation, government and industry mustintended for its Tehran research reactor which is used to produce learn from past mistakes, otherwise nuclear policy could becomemedical isotopes. Production of this fuel is being moved to the “the most expensive failure of post-war British policy-making”.Fordow facility near Qom which is an underground facility offering The UK has 6,900m2 of high-level nuclear waste and manages thebetter protection against military attacks. world’s largest plutonium stocks—more than 100t. Half of DECC’s To date Iran has produced 70 kg of 20% enriched uranium and will budget goes to “cleaning up this mess, and it will rise to two thirds”inaugurate a new facility to turn it into research reactor fuel plates in 2012, he said. The government is paying £2bn/year ($3.1bn/year)within the next three months. At the same time, the first batch of to clean up and manage £49bn in nuclear liabilities, and the UK washome-produced uranium oxide has been shipped to the Isfahan Ura- “continuing to pay for electricity that was consumed in the fifties,nium Conversion Facility, most probably from a uranium mine in the sixties and seventies on a false prospectus”, he added.province of Yazd and the nearby mill at Ardakan. Iran’s permanent However nuclear can be a vital and affordable means of providingrepresentative to the IAEA Ali Asghar Soltaniyeh, has previously said low carbon electricity electricity and should play a part in the UK’sthat Iran needs 120 kg of 20% enriched uranium to fuel the Tehran energy future, provided new NPPs are built without public subsidy,research reactor. he said. He noted that nuclear planning consultant Arup has esti- MNB will analyse the latest IAEA report on mated costs at £66/MWh for nuclear, £95/MWh for gas with carbon Iran in detail in the next issue. capture and £130/MWh for offshore wind, including waste and decommissioning costs. Based on Weightman’s report, he said thereNo showstoppers in UK was no reason for the UK to curtain nuclear power use.Post-Fukushima Review EDF Energy and Centrica reaffirm plans EDF Energy (a subsidiary French power producer Electricite de France -EDF) and its partner Centrica, said they would review theIN A 300-PAGE post-Fukushima safety review, Dr Mike Weightman, Weightman findings and build them into their plans. EDF CEOhead of the Nuclear Installations Inspectorate and executive head Vincent de Rivaz said the report would provide a valuable input toof the Office for Nuclear Regulation (ONR), found no fundamental the process of continuous improvement and welcomed reaffirmationsafety weaknesses in the UK nuclear industry, but concluded that that ‘UK nuclear facilities have no fundamental safety weaknesses”.lessons from the accident could boost safety further. Since and earlier interim report from Weightman, EDF has car- The report found no reason to curtail operations of UK nuclear fa- ried out additional work to strengthen safety, he added, includingcilities or change siting strategies for newbuild nuclear power plants providing additional training in severe accident management for key6 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Leadtechnical staff. EDF also is enhancing backup equipment, such as marine environmental services contract from Horizon to supportcooling system electrical supplies, fuel pool cooling, and emergency the Wylfa newbuild. Officials did not disclose the contract value.Thecommand and control facilities. EDF invests more than £300m/year work includes a baseline marine ecology survey programme cover-on its UK nuclear fleet, and will invest even more as a result of Fuku- ing fisheries, benthos, marine birds, plankton and water quality;shima, he noted. environmental impact assessments; option appraisals; and Habitat The Weightman report reconfirmed that, subject to implementing Regulations Assessments (HRA) for the new NPP and its associatedits recommendations, no safety issues that would prevent EDF/Cen- infrastructure.trica plans for newbuild NPPs. This is important, he said, “becauseBritain needs new nuclear to tackle the three challenges of keeping New UK NPPs by 00the lights on, keeping prices affordable and reducing emissions”. The first new UK NPP is likely to come online around 2020, two years In early November, EDF Energy submitted thousands of pages of later than the initial projected start date, according to French bankdocuments to ONR as required under the European Union’s (EU) Societe Generale (SG), which also noted a rise in construction risksstress testing programme. Following Fukushima, NPP operators in and costs. EDF Energy has admitted its scheduled start date in 2018all EU member countries were required to submit safety assessments for Hinkley Point has slipped, without giving a new date. SG analyststo their regulators, who would report to the EU in 2012. explained that one reason for the expected delays was the require- EDF’s response to the Weightman report and to ONR for the EU ment for increased security during construction and operation,stress tests, have been combined into a Comprehensive Safety As- which will translate to higher risks and costs and has “jeopardisedsessment. An expert team, with independent verification, is coordi- nuclear competitiveness”.nating the effort. EDF’s UK team is working closely with colleagues Before the next generation of NPPs come on line, the UK faces ain France to share experience appropriate to the European context. capacity shortage as old thermal plants are shut down. New low-car- De Rivaz said the comprehensive safety review confirmed the safe bon capacity plants, such as coal plants fitted with carbon capturedesign of EDF’s UK nuclear fleet. “The assessment has proved that and storage (CCS) technology, will be slow to come on line, SG said.we are very robust under the most extreme scenarios, even those far Analysts expect baseload power prices for delivery in 2014 to risebeyond what could ever be plausible in the UK—including combina- 13% above current year-ahead levels to £63.5/MWh ($102.2/MWh)tions of flooding, seismic events, fire and extreme weather—and as supply margins tighten. The UK may face more of a deficit afterconfirmed that the plants would operate safely as they are designed 2016 because of the long lead times to build new clean generationto do.” (nuclear and/or coal CCS) and the retirement of a sizeable part of the thermal fleet. However sluggish demand growth will help levelHinkley Point application out the impact a tighter supply as consumption is forecast to rise atEDF Energy delivered a development consent order to the Infrastruc- an average rate of only 0.7%/year until 2015 under normal weatherture Planning Commission (IPC) to build and operate a new two- conditions, SG said.unit, 3,260MWe NPP at Hinkley Point in Somerset with associated SG said the UK power market will be well supplied over the nextinfrastructure. IPC, an independent body that examines applications two years. This winter, it is expected to rely less on power importsfor nationally significant infrastructure projects, has until the end from neighbouring markets because Germany’s nuclear shutdownof November to decide whether to accept the submission. IPC only will draw higher imports from markets such as France and thewill publish the documents after the application has been formally Netherlands, which also export to the UK. However, there is suf-accepted. Individuals and organisations will then be able to view the ficient overcapacity and no major structural impact is expected indocumentation, register their interest and make representations. the near term. The Secretary of State for Energy and Climate Change will makethe final decision on whether to grant development consent based Interim approval for reactor designson IPC’s recommendation. However, the IPC process is still subject ONR and the UK Environment Agency (EA) expect to issue interimto the enactment of a new Localism Bill currently before parlia- approvals for the Westinghouse AP1000 and AREVA UK EPR reactorment. De Rivaz said that the development consent application would designs by the end of the year, according the latest quarterly progressinclude an indicative timetable, although no decision on a start date report on the UK’s Generic Design Assessment (GDA). In July, ONRis likely before a final investment decision is made. and EA completed their initial assessment of the safety cases and listed thbe issues that remained to be resolved .Horizon’s wylfa NPP plans proceed The GDA process allows the generic safety, security and environ-Horizon Nuclear Power, the UK consortium that plans to build a new mental aspects of new reactor designs to be assessed before applica-NPP on the island of Anglesey in north Wales, has completed the tions are made for permits to build on a particular site. The GDA onlyland purchase for the plant. Horizon secured rights to purchase the needs to be completed once for each design, speeding up subsequentland near the proposed Wylfa-B site at auction in 2009 subject to a site licencing and providing investors with more certainty.number of conditions that have now been met. The latest progress report for the period from June to September, Horizon, a joint venture between E.ON UK and RWE Npower, is said the only resolution plans still to be agreed address issues frombringing forward plans to build up to 3,300MWe new capacity at the Fukushima accident. ONR and EA said companies should be ableWylfa, with the first unit scheduled to come online around 2020. to use the Weightman report to develop those plans. If the agenciesIt plans to deliver 6,000MWe of new nuclear capacity in the UK by find the plans “credible”, they will consider providing an interim2025. The Wylfa site currently hosts two 490MWe Magnox reactors. Design Acceptance Confirmation (DAC) and interim Statement of Jacobs Engineering Group Inc has received an extension to its Design Acceptability (SoDA) for each design.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 7
    • Lead > Fukushima Update ONR would issue the interim DAC and reference a full suite of continuously at a low level in all nuclear reactors and is one of severaltechnical assessment reports published at the same time. EA would possible forms of radioactive decay.issue the interim SoDA, which would reference a parallel set of final Temperatures and pressures at all the damaged reactors at Fuku-assessment reports. shima have been stable and declining for several months, and all are Westinghouse has requested a pause in the GDA process for the now well below the target temperature of 100ºC: units 1, 2 and 3 areAP1000 once the interim DAC and SoDA have been issued, and has at 59.4ºC, 76.3ºC and 71ºC respectively. Airborne radioactive emis-signalled that it will not proceed to address GDA issues until it can sions from the site have dropped to within normal operating limits.secure funding for the work. However, AREVA and EDF plan to Tepco continues to focus on repairing and remediating the siteexecute their resolution plans “without delay” and have commit- to bring it to a proper level of safety and ultimately decommissionted to provide sufficient evidence to secure the full certificates, it. As part of this work, the company restarted a gas managementAfter the interim DAC and SoDA are issued, the agencies will focus system in unit 2’s containment vessel on 28 October. It was samplessolely on the close-out phase for the UK EPR. Both applicants had taken from system which contained the xenon. These isotopes havepaid about £24.5m ($39.3m) in regulatory charges for the GDA by a short half-life of less than six days wich meant the fission whichthe end of June. produced them had occurred fairly recently. However, sustained fis- sion would also result in other products such as isotopes of caesium,FUKUSHIMA UPDATE iodine and molybdenum, which were not found in the samples. Japan’s government now plans to study ways to confirm thatFission not criticality at sustained nuclear fission has not resumed at the Fukushima Daiichi plant. The minister in charge of the nuclear crisis, Goshi Hosono,Fukushima unit  said he supported the view that xenon was produced through spon- taneous fission, not sustained fission, or criticality.Hosono said aTHE DISCOVERY IN early November of xenon in the containment of precondition for putting the plant’s reactors into a cold shutdown isFukushima Daiichi 2 raised fears about renewed criticality inside ensuring that the accident will no longer escalate, and an absence ofthe reactor, but further investigations suggested that it was probably criticality is one way to achieve such a state.due to spontaneous fission, a process of radioactive decay which doesnot involve any chain reaction. Fukushima closure could take 30 years Plant operator Tokyo Electric Power Company (Tepco) initially A Japanese government panel said in late October that it will take atsaid particles from melted fuel in unit 2 might have “temporarily least 30 years to safely close the the Fukushima Daiichi plant. Thetriggered a criticality incident”. This means the particles were of a estimate was contained in a draft of a report to be submitted to aconfiguration that could have led to a self-sustaining chain reaction. committee on medium- and long-term decommissioning measures In a statement the company said it had begun spraying boric acid and finalised later this year. The draft was posted on the Japan Atom-to prevent accidental chain reactions. Tepco said it found xenon, ic Energy Commission website. The panel noted that it took 10 yearswhich is associated with nuclear fission, while examining gases to remove nuclear fuel after the 1979 Three Mile Island accident intaken from the reactor. One hundred thousandth of a becquerel per the US, and suggested that the process at Fukushima would be muchcubic centimetre of xenon-133 and xenon-135 was detected in gas more complicated and would take longer. It is also expected to besamples, the company reported. more costly. A report in Yomiuri newspaper, said independent ex- Xenon-133 and xenon-135 are created through nuclear fission and perts believe the process will cost more than JPY1,500bn ($19.2bn).are not usually detected even when a reactor is in operation because The panel said removal of the fuel rods at Fukushima would notfuel rods are enclosed in gas-tight zirconium metal tubes. This sug- begin until 2021, after the repair of the plant’s containment vessels.gested that fission might have occurred in the melted fuel, or corium It noted that the biggest challenge in decommissioning the reactors, also called fuel containing material (FCM) or lava-like fuel contain- will be collecting nuclear fuel and safely managing the material onceing material (LFCM). It is a molten mixture of portions of nuclear it is gathered. In the draft plan, the panel also said work to removereactor core, formed during a nuclear meltdown. It comprises of fuel remaining in the spent nuclear fuel pools adjacent to the reac-uranium fuel, fuel clads, and other core-internal material. tors should start in 2015. The decommissioning process will begin Japan’s Nuclear and Industrial Safety Agency (NISA), however, next year by installing cranes and building containers to store fuel.said there have been no drastic changes in the reactor’s temperatureand pressure level, and the reactor was stable overall. NISA spokes- Interim measuresman Yoshinori Moriyama, a, told NucNet there is a possibility fission As an interim measure, unit 1 now has an outer shell made of air-started from some small pieces of melted fuel. However, the fission tight polyester designed to contain radioactive particles inside thewas probably small and partial, he said, adding, “large-scale fission building. Similar covers are planned for other units. Tepco has beenwas unlikely”. building the casing for unit 1 since June. The cover was installed on Tepco said it considered the source of the xenon to be spontaneous 28 October. It is 54 metres high, 47 metres wide and 42 metres deep,fission on the grounds that it had injected boric acid to the reactor and has a ventilation system that filters out radioactive substances.vessel to reduce the likelihood of chain fission reactions but was still Tepco said that during pilot tests, the system removed more thanable to detect xenon. Temperature and pressure data from the unit 90% of radioactive caesium from the reactor.also showed no change around the time of the xenon’s discovery Tepco has also started building a water-shielding wall at unit 1 towhich also indicated that no that chain reactions were taking place. prevent polluted groundwater from leaking into the sea. It will in-While spontaneous fission is infrequent, it nevertheless occurs stall a total of 700 water-proof steel pipes to totally cover the exist-8 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Fukushima Updateing seawalls of units 1 and 4. The wall will be 800 metres long. Eachpipe, weighing 10t, is 22 metres long and one metre in diameter. The NPP released morework is expected to take two years. At present, the seawalls of thefour reactors are covered with cement in order to prevent leaks of radiation than reportedcontaminated water into the sea. The disaster at the Fukushima Daiichi nuclear power plant (NPP) in March released far more radiation than the Japanese govern-Cold shutdown this year ment reported, according to a study based on radioactivity data fromThe government and Tepco say they are still hoping to achieve a around the world. The study also suggests that, contrary to govern-stable condition – cold shutdown - by the end of this year. They also ment statements, spent fuel pools played a significant part in thesaid in the road map, which is updated every month, that they have release of the long-lived environmental contaminant caesium-137,succeeded in reducing the amount of highly radioactive water ac- which could have been prevented by prompt action. The analysis hascumulating at the plant. been posted online for open peer review by the journal Atmospheric Realising cold shutdown and reducing the contaminated water Chemistry and Physics.are key goals in the “step 2” phase of the road map, and the aim is Andreas Stohl, an atmospheric scientist with the Norwegianto achieve this step by January at the latest. The temperature of Institute for Air Research in Kjeller, who led the research, believesthe pressure vessels of unit 1 to 3 reactors is now well below the that the analysis is the most comprehensive effort yet to understandtarget of 100 degrees C and radioactive emissions are also much how much radiation was released from Fukushima Daiichi. “It’s areduced but NISA said it needs further assessment on the radioac- very valuable contribution,” says Lars-Erik De Geer, an atmospherictive emissions from the unit. 3 reactor and has to check whether modeler with the Swedish Defense Research Agency in Stockholm,the plant’s safety can be ensured in the medium-term before who was not involved with the study.declaring the end of step 2. The reconstruction relies on data from dozens of radiation moni- Tepco has drawn up a set of measures to ensure safety at the plant toring stations in Japan and around the world, many part of a globaland has submitted the programme to NISA. Earlier in October NISA network to watch for tests of nuclear weapons . The scientists addedinstructed Tepco to work out measures necessary to ensure the safe- data from independent stations in Canada, Japan and Europe, andty at the plant for a period of about three years between the planned combined those with large European and American caches of globalcompletion of Step 2 under its roadmap and the start of work to scrap meteorological data.reactors at the power station. Stohl warns that the resulting model is not perfect. Measurements Tepco aims to boost the reliability of the current water-circulation were scarce after the Fukushima accident, and some monitoring postscooling system for the reactors and fuel pools on the assumption were too contaminated to provide reliable data. More importantly,that the cooling method will be continued for the next three years. exactly what happened inside the reactors remains a mystery thatIt also plans to secure alternative ways of reactor cooling in case of may never be solved. “If you look at the estimates for Chernobyl, youemergencies. Tepco plans to replace hoses used for water injection still have a large uncertainty 25 years later,” says Stohl.with those made of polyethylene which is more durable, and installinsulation materials and heating devices to prevent the water injec- Challenging numberstion system from freezing up during the winter. Japanese investigators had already developed a detailed timeline of events following the 11 March earthquake that precipitated theInvestigating panel disaster. But accounting for the radiation from the plants has provedA panel set up by the Japanese government to investigate the much harder than reconstructing the chain of events. The latestcauses of the Fukushima disaster has chosen three experts from report from the Japanese government, published in June, says thatother countries to seek advice. The experts are Richard Meserve, the plant released 1.5x1,0016 bequerels of caesium-137, an isotopeformer chairman of the US Nuclear Regulatory Commission and with a 30-year half-life that is responsible for most of the long-termPresident of the Carnegie Institution, Andre-Claude Lacoste, contamination from the plant. A far larger amount of xenon-133,Chairman of the French nuclear safety authority, and Lars-Erik 1.1x1019Bq, was released, according to official government estimates.Holm, head of Sweden’s National Board of Health and Welfare and On the basis of its reconstructions. thee new study challenges thoseformerly a Chairman of the International Commission on Radio- numbers. The team says the accident released around 1.7x1019Bqlogical Protection. of xenon-133, greater than the estimated total radioactive release of The panel members said that the opinions of the foreign experts 1.4x1019 Bq from Chernobyl. The fact that three reactors explodedwould not be reflected in their midterm report due out in December, in the Fukushima accident accounts for the huge xenon tally, says Debut they would invite the experts to Japan around February for a Geer. The new model shows that Fukushima released 3.5x1016Bqconference. Yotaro Hatamura, head of the panel, indicated the inves- caesium-137, roughly twice the official government figure, and halftigation was progressing, saying “quite a lot of things have become the release from Chernobyl. However, ongoing ground surveys are theclear,” but he did not give details. only way to truly establish the public-health risk. The panel has gathered information from around 340 people, Stohl believes that the discrepancy between the team’s resultsbut Hatamura said they did not include politicians involved in the and those of the Japanese government can be partly explained byhandling of the nuclear crisis. Hatamura also countered doubts that the larger data set used. Japanese estimates rely primarily on datathe panel may be “intimidated,” saying, “The relation between the from monitoring posts inside Japan, which never recorded the largeaccident and politics should be made clear at some point, but it’s not quantities of radioactivity that blew out over the Pacific Ocean, andthat you should just pose questions blindly (to politicians).” eventually reached North America and Europe. “Taking account ofmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 9
    • Fukushima Updatethe radiation that has drifted out to the Pacific is essential for getting contribution of artificial radionuclides to the marine environmenta real picture of the size and character of the accident,” says Tomoya ever observed”. The results showed the need for continued monitor-Yamauchi, a radiation physicist at Kobe University who has been ing of marine life species from the Fukushima region.measuring radioisotope contamination in soil around Fukushima. IRSN emphasised in its report that the location of the Fuku- The differences between the two studies may seem large, notes shima-Daiichi plant meant most contamination was dispersed andYukio Hayakawa, a volcanologist at Gunma University who has also is expected to be of such low concentrations that from the autumnmodeled the accident, but uncertainties in the models mean that the of 2011 it will be of little threat to pelagic species.However, surfaceestimates are actually quite similar. The new analysis also says spent waters from the Fukushima region might still carry radioactivefuel stored in the unit 4 pool emitted copious quantities of caesium- substances into the sea and this will also need continued monitoring.137 while Japanese officials have said that virtually no radioactivityleaked from the pool. However, Stohl’s model clearly shows that Radiation hotspotdousing the pool with water caused the plant’s caesium-137 emis- A radiation hotspot in Kashiwa had still not been decontaminatedsions to drop markedly. The finding implies that much of the fallout a week after radiation of 57.5 microsieverts (mSv) per hour wascould have been prevented by flooding the pool earlier. recorded on a city-owned plot of land. The city says the level of radia- The Japanese authorities continue to maintain that the spent fuel was tion is beyond anything a local government can handle on its own,not a significant source of contamination, because the pool itself did although it decided to conduct surveys to find other hotspots afternot seem to suffer major damage. “I think the release from unit 4 is not many residents expressed concern.important,” says Masamichi Chino, a scientist with the Japanese Atomic The Kashiwa municipal government said radiation of 57.5mSv/hrEnergy Authority in Ibaraki, who helped to develop the Japanese official had been detected about 30cm below the surface of the land. Subse-estimate. But De Geer says the new analysis “looks convincing”. quent examination of soil at the location detected radioactive cae- The analysis also presents evidence that xenon-133 began to vent sium of up to 276,000 becquerels per kilogram. Airborne radiation offrom Fukushima Daiichi immediately after the quake, and before 2mSv/he was recorded a metre above the ground.the tsunami swamped the area. This implies that the earthquake The land affected used to be the site of a city-run housing complexalone was sufficient to cause damage at the plant. now used for recreational activities. It comprises a field, a paved The model also shows that the accident could easily have had a pedestrian walkway and a street gutter that is 30cm wide and 30cmmuch more devastating impact on the people of Tokyo. In the first deep. The high level of radiation was detected in the soil near andays after the accident the wind was blowing out to sea, but on the L-shaped corner in the gutter, of which a nearby 50cm-long sectionafternoon of 14 March it turned inshore, bringing clouds of radioac- was found to be damaged.tive caesium-137 over a significant area. Where precipitation fell, Takao Nakaya, head of the ministry’s Office of Radiation Regu-along the central mountain ranges and to the northwest of the plant, lations, said it was highly possible the high level of radiation washigher levels of radioactivity were later recorded in the soil but luck- caused by water containing radioactive cesium seeping into the soilily Tokyo, and other densely populated areas had dry weather. “There over a long period. It will be no surprise if similar levels of radiationwas a period when quite a high concentration went over Tokyo, but it are detected in other places,” said Tsutomu Tohei, Professor Emeri-didn’t rain,” says Stohl. “It could have been much worse.” tus at Tohoku University. If radioactive cesium adheres to the surface of soil or a leaf, it tendsMarine contamination higher than assumed to remain there, Tohei said. However, rainwater may bring caesiumA reassessment of marine contamination caused by the Fukushima that was previously scattered over various places to a particular spot,points to a higher level of radioactive substances in the ocean than such as a gutter. If it accumulates for a long time, the radiation levelpreviously assumed, according to the French Institute of Radiologi- would increase.cal Protection and Nuclear Safety (IRSN). The main origin of the The Kashiwa municipal government has decided to examine allcontamination was the direct discharge of contaminated water from other plots of land owned by the city and will implement similarthe plant which lasted until around 8 April 2011, almost a month measures for private properties in November by examining premisesafter the accident. To a lesser extent, contamination of the ocean or lending residents measuring devices. The municipality has startedresulted from radionuclides released into the atmosphere from the discussions with the Environmental Ministry and Cabinet Office,plant between 12 March and 22 March, IRSN said. asking central government to take responsibility for determining In the immediate vicinity of the plant, the concentration in seawa- the cause of the hotspot and the exact amount of contaminated soil,ter at the end of March and the beginning of April was up to “several as well as for decontaminating the location. Japan’s Science Ministryten thousands” of becquerels per litre (Bq/l) for caesium-134 and has launched a telephone hotline to deal with public concerns about-137, and exceeded 100,000 Bq/l for iodine-131. Levels of Iodine- radiation exposure in areas outside Fukushima prefecture.131 have declined rapidly because of its short half-life of eight days. DecontaminationConcentrations of caesium-134 and -137 have been decreasing sincemid-July and have now fallen below the detection limit (five Bq/l) ofthe techniques used for monitoring. IRSN said has updated its estimate of the total amount of cae- methods consideredsium-137 released directly into the sea near Fukushima between21 March and mid-July to 27 petabecquerel (PBq or quadrillion Bq), JAPAN IS SETTING aside $14bn to clean up after the Fukushima ac-most of which (82%) was discharged before 8 April. The institute said cident. Fukushima prefecture has already received 143 preliminarythis radioactive discharge at sea represents the “largest one-time proposals, mostly to decontaminate radiated soil and water, from10 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Fukushima Updatecompanies, universities, non-profit organisations and individuals, The team’s report calls on the Japanese authorities to “maintainaccording to documents obtained by Bloomberg from the prefectural their focus on remediation activities that bring best results in reduc-government. ing the doses to the public.” The final report of the mission will be The Environment Ministry will budget more than JPY1,100bn submitted to the Japanese government by 15 November.($14bn) for decontamination by the end of the next fiscal year, says Dealing with wasteGoshi Hosono, minister in charge of the response to the nuclear crisis. Estimating costs is difficult and the government intends to usetest projects, according to Tadashi Inoue at the Central ResearchInstitute of Electric Power Industry who is advising the Fukushima materialgovernment. “The cost will be enormous.” CONTAMINATED MATERIAL FROM the Fukushima nuclear plant willIAEA offers advice be collected over 30 years and stored at a secure site at a cost ofA 12-member team was assembled by the International Atomic Energy JPY1,100bn ($14bn), according to the Environment Ministry’s roadAgency (IAEA) at the request of the Japanese government to help map on decontamination.develop remediation strategies. The mission has advised the govern- Officials will select a site in Fukushima prefecture to build con-ment to avoid “over-conservatism” in its efforts to remediate large crete-walled pits to contain contaminated soil and other waste byareas of contaminated land around the Fukushima Daiichi plant. the end of March 2013. The focus will be on maintaining a centrally The team reviewed remediation-related strategies, plans and managed storage facility that will be safe and secure,” the Ministryworks, including contamination mapping, currently undertaken by said in a document outlining the plan.Japanese authorities. It focused on the remediation of affected areas Certain areas around the plant, which continues to emit radiation,outside of the 20km restricted area. may be uninhabitable for at least two decades, according to a govern- The team said that it agrees with the prioritisation and the general ment estimate in August. The Ministry plans to begin decontamina-strategy being implemented, and suggests that further missions tion efforts once a recently passed cleanup law takes effect in January.could be sent to confirm the progress being made and to address the Ministry officials will begin working to acquire areas where con-remediation challenges actually within the zone. taminated waste can be held for a three-year period before it can be The expert team said that Japan’s approach of using demonstration transported to the storage sitesites to assess various remediation methods “is a very helpful way to Companies seeking to win decontamination contracts in Fukushi-support the decision-making process.” ma include, Sumitomo Corp, IHI Corp and Obayashi Corp, according to However, Japanese authorities were encouraged to “cautiously documents obtained by Bloomberg News from the prefectural govern-balance the different factors that influence the net benefit of the ment in October. The temporary sites and permanent storage site willremediation measures to ensure dose reduction.” They should “avoid be selected in consultation with residents of the affected areas.over-conservatism” which “could not effectively contribute to the Goshi Hosono, Japan’s nuclear crisis minister, says Japan does notreduction of exposure doses.” yet have a comprehensive plan for disposing of the massive quanti- ties of radioactive waste that have been accumulating.Classifying waste He said there is no “full picture” of how to deal with the wasteThe major strategy being considered by Japanese authorities for decon- from the disaster and subsequent clean up. Possibly years of researchtaminating affected areas is the removal of up to 5cm of top soil. How- and development on waste management may be needed.ever, the mission team notes that, although this would significantly He pointed to the need to compress the huge volume of waste,reduce radionuclide concentrations in the upper layer of soils, it would since the amount is too massive to move from the site. The Ministrygenerate “unnecessarily huge amounts of residual materials”. has estimated that waste volumes could total 45m m3 in Fukushima The preliminary estimate of the volume of contaminated material and neighbouring prefectures.that could come from clean-up is 5-29m m3. This is in addition to some Government no longer2.3mt of contaminated debris that has already been collected. Themission’s preliminary report noted that it is “important to avoid clas-sifying as ‘radioactive waste’ such waste materials that do not causeexposures that would warrant special radiation protection measures.” promotes nuclear The team suggests that authorities establish “realistic and crediblelimits” regarding associated exposures. Slightly contaminated mate- JAPAN’S GOVERNMENT HAS abandoned its policy of promotingrial, it says, could be used in various ways, such as the construction nuclear power, reducing dependence on the sector in its first annualof reclamations, banks and roads. review of energy since the Fukushima nuclear disaster. The team also warned the Japanese government of the “potential An energy white paper, approved by the Cabinet in October, callsrisk of misunderstandings that could arise if the population is only for a reduction in the nation’s reliance on atomic power. It also omitsor mainly concerned with contamination concentrations rather than a section on nuclear power expansion that was in last year’s policydose levels.” review. The government delayed the publication of the white paper, It added: “The investment of time and effort in removing con- usually issued in May or June, because of Fukushima.tamination concentrations from everywhere, such as all forest areas Prime Minister Yoshihiko Noda is planning to reduce the depen-and areas where the additional exposure is relatively low, does not dence on nuclear energy while also seeking to restart idled nuclearautomatically lead to reduction of doses for the public.” reactors once their safety is secured and local governments approve.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 11
    • Fukushima Update > business Japan was the third-most reliant country on nuclear power after off Tepco’s nuclear power business. Nishizawa says Tepco “hopes tothe US and France, but now has only 10 of its 54 reactors operating, remain a private-sector company”.either because they were shut down by the quake and tsunami or Fukushima update - briefsbecause of scheduled maintenance. None has been restarted since the accident because of safetyconcerns. However, in early November, Hideo Kishimoto, themayor of Genkai, Saga prefecture effectively approved Kyushu DOSE RATES: Japan’s government has lowered the maximum allow-Electric Power Co’s plan to restart a nuclear reactor halted due to able exposure for workers at Fukushima after radiation levels fell.human error. The limit for new workers at the Fukushima plant was lowered to The reactor shut down automatically on 4 October due to an ab- 100mSv from 250mSv, according to an ordinance by the Ministry ofnormality in its steam condenser after repairs were carried out based Health, Labour and Welfare. Staff assigned to some tasks and thoseon a faulty manual. who have already worked at the site are exempt from the revised Industry Minister Yukio Edano said the government would leave limit. Some 3,500 staff are working every day to contain the crisis atit up to Kyushu Electric to decide whether to restart the reactor the plant. The International Commission on Radiological Protec-while encouraging the utility to consult local residents before mak- tion recommends a maximum dose of 500mSv in a nuclear accidenting a final decision. except during rescue operations. The white paper makes no mention of plans to separate theNuclear and Industrial Safety Agency from the Ministry of Economy, ExCLUSION zONE: The Secretariat of the Nuclear Safety Commis-Trade and Industry. NISA’s lack of independence hampered a quick sion of Japan has proposed expanding the zone where intensiveresponse to the disaster, the government said in a report to the Inter- disaster countermeasures must be taken to 30km around a nuclearnational Atomic Energy Agency in June. power plant from the current 8-10km in the event of a future A government panel confirmed in September that NISA had been nuclear accident. It also proposed designating a 5km radius aroundinvolved in attempts by utilities to influence public opinion in favor a nuclear plant in its guidelines as a zone from which people shouldof nuclear energy, further damaging public confidence in the indus- immediately be evacuated following a plant accident. It sought thetry. The government is aiming to form a new nuclear agency under establishment of a 50km perimeter around a disaster-struck plantthe Environment Ministry by April through merging NISA and the within which preparations would be made for distributing potas-Nuclear Safety Commission. sium iodide tablets to mitigate the impact of exposure to radiation. The government also designated some vicinities of the no-go zonebailing out Tepco as so-called emergency evacuation preparation zones, prompting many of those residing in such areas to evacuate.TOKYO ELECTRIC POwER Co (Tepco) has effectively been taken under bUSINESSstate control in exchange for JPY890bn ($11.4bn) in government aid. Tepco’s emergency action plan, a precondition for the taxpayer-funded money, was approved by the government. Tepco has prom- EDF opposes Constellationised to pursue drastic cost-cutting under government supervision. Additional aid is conditional on a more comprehensive plan that -Exelon mergerincludes bolder restructuring measures, due next spring. Tepco FRENCH-bASED ELECTRICITE DE France (EDF), which owns 49.99% ofreported a JPY627.2bn consolidated net loss for April-September. Constellation Energy Nuclear Group (CENG) with Constellation Energy The action plan calls for regular meetings of a reform committee owning the remaining 50.01%, has asked the Maryland Public Serviceconsisting of Nishizawa, Tepco Chairman Tsunehisa Katsumata Commission to reject a merger between Constellation and Exelon, whichand the top two officials at the government-backed organisation hopes to complete its $7.9bn acquisition of Constellation in early 2012.supporting Tepco as it compensates disaster victims. Staffers from In testimony filed with the commission in mid October, EDF saidthe organisation will work full time at company headquarters. CENG would lose autonomy if Exelon assumes Constellation’s share. Tepco reported JPY1 first-half extraordinary losses resulting EDF also argued that the market share and control over electricitypartly from compensation payments. These were partly offset by the prices on the US East Coast could prompt regulators to reject anygovernment aid, which goes on Tepco’s books as extraordinary profit. bids from the joint company for any new nuclear power plants (NPPs) “I hope you understand that the public is entrusting Tepco with on the East Coast.a huge amount of their money,” Economy, Trade and Industry EDF continues to support a proposed third unit at Constellation’sMinister Yukio Edano told Tepco President Toshio Nishizawa. The Calvert Cliffs NPP in Maryland.latter only nodded. As well as approval from Maryland, the Federal Energy Regula- Tepco’s core business is suffering from the after effects of the tory Commission, the US Nuclear Regulatory Commission, and thedisaster, and without additional financial aid, it is heading for a cash New York State Public Service Commission (Constellation has acrisis. The full costs of compensating victims and decommissioning second NPP in New York state) also must approve the merger.the broken reactors is as yet unknown. Exelon, the largest US nuclear operator, is moving its nuclear Tepco has about six months to complete the comprehensive plan division headquarters from Chicago to the east coast. It plansneeded to qualify for more government assistance. Under discus- to move the division and some 100 jobs to suburban Philadel-sion are a taxpayer-funded recapitalisation and a proposal to spin phia, Pennsylvania by the end of 2013. However, it will keep the1 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • businesscompany’s headquarters, its business services unit and the Midwest than $280m from customers in 2012.nuclear operations in the Chicago area. PSC approved Progress’ recovery of $85.9m in costs, including costs associated with the uprate of its existing Crystal River nuclearFluor takes majority power plant (NPP) and construction of its proposed two-unit Levy NPP. PSC said the projects would add 2380MWe of new nuclear basestake in NuScale load generation. Levy-1 and -2, both Westinghouse AP1000 reactors are set to start operation in 2021 and 2022, respectively. PSC approved FPL’s recovery of $196.1m in costs, including thoseUS-bASED FLUOR CORPORATION announced in mid October that it was associated with the uprates of four existing reactors (Turkey Point-3investing more than $30m in NuScale Power, an Oregon-based com- and -4, and St Lucie-1 and -2) and construction of its proposed Turkeypany that is commercialising small modular reactor (SMR) technology. Point-6 and -7. These projects will add 2,614MWe of new nuclear Fluor purchased shares in NuScale, which hopes to bring its modu- base load generation, PSC said.lar, scalable light water reactor concept to the market, possibly as The new Turkey Point units, with a combined capacity of betweenearly as 2020. Fluor group executive for corporate development and 2200MWe and 3000MWe, are scheduled to begin operating in 2022new ventures, John Hopkins, said that Fluor’s history of accomplish- and 2023, respectively. The Florida legislature in 2006 enacted legis-ment in the nuclear industry, combined with NuScale’s “innovative lation to encourage nuclear power development by allowing utilitiesand safe nuclear technology” would provide customers with a very to recover costs for some NPP project costs during the constructioncompetitive option. process, rather than after the plants begin operating. As part of its investment, Fluor purchased NuScale shares that had Energy Fuels and Titanpreviously been held in US Securities and Exchange Commissionreceivership, and has become NuScale’s majority shareholder. Goingforward, NuScale will continue to operate as an independent company. Fluor and NuScale also have entered into a separate contractual seek mergerarrangement whereby Fluor will provide certain services to NuScaleand will have exclusive rights to provide engineering and construc- US-bASED ENERGY FUELS and Canada’s Titan Uranium signed a lettertion services for future NuScale SMR facilities. of intent to pursue a merger under which Energy Fuels would acquire Oregon State University developed the initial concept for NuS- all the outstanding shares of Titan.cale’s SMR technology from 2000 to 2003, with funding provided A joint statement said the companies believe the transaction willby the US Department of Energy. Bill Fehrman, president and CEO provide significant benefits to their shareholders. These include in-of Des Moines, Iowa-based MidAmerican Energy Company said the creased scale and market presence in the uranium sector; substantialagreement between Fluor and NuScale was a strong signal that SMR NI 43-101 compliant resource (37m lbsU3O8); measured and indi-technology would be a viable alternative for the next generation of cated resource of 4.3m lbs U3O8; an enhanced near-term productionnuclear energy deployment. MidAmerican is one of 11 major US and profile; a focus on US production with low political risk; creation of aCanadian utilities that serve on NuScale’s customer advisory board. strong platform for continued uranium consolidation within the US; NuScale is developing a 45MWe self-contained pressurised water greater financial strength; and the combined management experi-reactor and generator set, which will be factory made and shipped for ence and expertise of both companies.deployment in sets of up to 12. These could result in scalable nuclear Energy Fuels’ Pinon Ridge uranium/vanadium mill, 19.2km westpower plants with capacities ranging from 45MWe to 540MWe. The of Naturita in the Paradox Valley of western Colorado was grantedreactor units will use conventional nuclear fuel assemblies with 5% its final radioactive materials licence in March, making it the firsturanium-235. Fuel assemblies would be replaced every two years. US uranium mill to be licenced in more than 30 years. Energy Fuels Fluor’s investment effectively rescued NuScale after the company also has uranium properties in western Colorado, eastern Utah, andwas paralysed by a fraud case concerning a shareholder. Francesco northern Arizona. It has two fully permitted mines, the WhirlwindIllarramendi, head of the Michael Kenwood Group of hedge funds, and Energy Queen Mines and has initiated permitting on two addi-was found guilty of routing investors’ money through accounts he tional mines, the Calliham and the Sage, both in southeast Utah.controlled for personal gain, which came to SEC’s attention and Titan’s major asset is a 100% interest in the Sheep Mountain ura-resulted in his conviction this February. Illarramendi had to pay back nium mine in the Crooks Gap Mining District of Fremont County,$53m of his “ill-gotten gains,” with significant knock-on effects for Wyoming. Sheep Mountain currently is at an advanced stage ofNuScale’s balance sheet. permitting, production expected to begin in 2014. Production is expected to peak at 1.5m lbs/year of U3O8. Titan also has signifi-Cost recovery approved cant interests in uranium exploration projects in Utah, Wyoming, Arizona and Saskatchewan.for two US utilities New mining lease In October Energy Fuels bought a 20-year mining lease (the SkidmoreTHE FLORIDA PUbLIC Service Commission (PSC) has agreed to al- Lease) in southeast Utah’s Sage Plain district from privately held Nu-low Florida Power & Light (FPL) and Progress Energy to recover clear Energy Corporation for $1,500,702. Energy Fuels said that, withfrom ratepayers costs for planned construction of new reactors and the purchase it would begin permitting a uranium/vanadium mine inuprates of existing reactors. The utilities will be able to collect more the Uravan Mineral Belt with Utah’s Department of Oil, Gas, and Min-mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 13
    • businesserals. The new mine could become the third mine permitted to feedthe proposed Pinon Ridge mill. It would supplement future production Rio Tinto outbidsfrom the already permitted Whirlwind Mine near Gateway, Colorado,and the Energy Queen Mine near La Sal, Utah. Cameco for Hathor The Skidmore Lease is located on approximately 709 acres in San RIO TINTO GROUP, one of the world’s biggest miners, will accelerateJuan county, Utah, and includes large portions of the historic Cal- exploration and assessment of Hathor Exploration Ltd’s Northernliham Mine. It is adjacent to the Calliham and Crain lease, the Sage Saskatchewan uranium properties to unlock their full potential. RioProperties, and other mining claims already owned or controlled by has offered a friendly $4.15 a share for Hathor, which holds a high-Energy Fuels through Colorado Plateau Partners (CPP), a 50/50 joint grade uranium property in Saskatchewan’s Athabaska Basin uraniumventure of Energy Fuels and Lynx-Royal JV. belt. This values Hathor at about $578m and trumps an earlier hos- Energy Fuels has said it will assign the Skidmore Lease to CPP, in tile bid from Cameco Corp, Canada’s leading uranium producer withexchange for Lynx-Royal paying $250,000 to Energy Fuels, reducing mines in the same area.Energy Fuels’ current net expenditure on the Skidmore property to Rio Energy CEO Doug Ritchie said Rio’s exploration and extraction$250,000. In addition, the CPP joint venture will assume 100% of technologies and its commitment to sustainable development, “willfuture monetary obligations for the purchase. build on the strong technical foundation established by Hathor”. Cam- As the contractual operator of any mines developed by CPP, Ener- eco’s offer of $3.75 per Hathor share expires November 14. The companygy Fuels will receive all production from this property as feed for the has not commented on Rio’s counter-offer, except to say its directors arePinon Ridge mill. The Skidmore Lease currently contains 184,000t studying it and would issue an update later. Hathor holders who haveof historic uranium and vanadium resources at grades of 0.20% U3O8 tendered under the Cameco offer can withdraw those shares any time(729,000 lbs.) and 1.11% V2O5 (4,072,400 lbs.). before November 14 and tender to Rio’s offer by November 30. Some experts consider Hathor’s Roughrider deposit in north-US joint venture for ern Saskatchewan to be one of the richest undeveloped uranium deposits in the world. Roughrider lies in the Athabasca Basin, whichtails management currently provides 20% of world uranium production. Roughrider is a moderate sized deposit, at 26,000t, but the grade is exceptionally high at 11% uranium oxide. A preliminary economic assessment ofUS URANIUM CONVERSION company ConverDyn and enrichment Roughrider indicated that it had a net present value of $1bn. But thatcompany Urenco USA have formed a partnership that aims to provide was based on only part of the known resource, with Hathor’s drillingservices to help manage the US Department of Energy’s (DOE) pointing to resource upgrades over time.stocks of depleted uranium. The Competitive American Tails Up-grade Partnership (CATUP) will be able to respond to potential DOE Liberalising ownership rulesinterest in upgrading and managing depleted uranium stocks, also Canada’s ruling Conservative government has indicated that it in-known as uranium tails. tends to liberalise ownership rules governing uranium purchases by Uranium tails can be used for down-blending former weapons grade foreign companies. The offer from British-Australian Rio Tinto couldhighly enriched uranium for commercial nuclear fuel; blending with be a test of the government’s intent, analysts say. In August whenplutonium to make mixed oxide (mox) fuel for commercial reactors; Cameco announced its hostile bid for Hathor, some observers said aor for uses exploiting its very high density, such as military projectiles. white knight was unlikely to emerge because of the federal uranium-In a statement, the CATUP partners said DOE might be interested in ownership rules.pursing a long-term commercial upgrade programme as part of its ura- Natural Resources Canada says on its website that foreign ownershipnium inventory management policy. In 2005, DOE conducted a pilot of producing uranium-mining properties is capped at 49%. Even thoughprogramme in which more than 8,000t of tails were treated. Hathor is years away from production, critics had predicted the owner- CATUP plans is to use the two companies’ existing US conver- ship limits would discourage foreign investment. The Ministry has saidsion and enrichment facilities, in combination with inventories of higher ownership levels are possible if it can be clearly established thatnatural uranium concentrates, to recover usable material from DoE’s the project is Canadian-controlled, as defined in the Investment Canadadepleted uranium while reducing the volume of tails that ultimately Act. Exemptions also are possible, subject to cabinet approval.will require disposal. The partnership envisages converting naturaluranium concentrates into uranium hexafluoride (UF6) at Conver- A joint offer seen as possibleDyn’s Metropolis works in Illinois, and then exchanging them for For Cameco to come back with a higher offer, it also would havedepleted uranium from DOE. to cover the $20m break fee Rio secured with Hathor. Rio’s agreed CATUP will sample, clean and repackage DOE’s depleted ura- bid for Hathor does not have to pass Canada’s “net-benefit” test fornium for upgrading at Urenco USA’s centrifuge enrichment plant foreign investment because the book value of Hathor’s assets fallsin New Mexico. The joint statement said the approach would help below the trigger point.to protect US uranium miners from “unpredictable and excessive Last year, the net-benefit test led BHP Billiton’s $40bn bid for Pot-DOE inventory sales,” as well as creating local jobs and stimulating ash Corp to unravel. Some analysts have speculated that ultimatelycapital investment in nuclear fuel cycle infrastructure. DOE’s old Rio Tinto and Cameco could team up on a joint offer. They have point-gaseous diffusion uranium enrichment operations gave rise to nearly ed out that Rio Tinto did not try to blow Cameco out of the water with700,000t of uranium tails over more than 50 years of operation. a extremely high bid, but only upped Cameco’s offer by $0.40/share. The market is gearing up for a higher future bid, pushing Hathor14 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • businessstock up 10% in Toronto to $4.40 on the day the Rio Tinto deal was satom to continue working to uncover violations, improve procure-announced, a 6% premium to the offer. One of those betting on a ment standards and train procurement specialists.higher offer was New York-based First Eagle Investment Manage-ment, which bought 1.9m shares in Hathor for roughly $8.3m. This Violations draw corruption chargesbrought First Eagle’s stake in the company to 5.65%, and put it on par In future, representatives of law enforcement agencies will be includedwith the Rio Tinto’s current 5.7% ownership. in bidding commissions appointed to select suppliers for the nuclear industry, Rosatom Director General Sergei Kirienko told the meeting.AREVA sales down “The topic of corruption is disturbing but inevitable,” he noted. However, Rosatom has decided to carry out its anticorruption activ- ity “in a maximally open and transparent manner”, he added.FRENCH NUCLEAR COMPANY AREVA said third-quarter (Q3) sales were “We will not stop at dismissals for violations; we will hand overdown 2.9% because of disruptions in its used fuel recycling business. evidence for criminal charges to be laid.” Revenues fell to €1.95bn ($2.77bn) from €2.01bn in Q3 2010. A Since the beginning of the year, 48 heads of enterprises withincompany statement said incidents in the first half of the year at the La the Rosatom system have been called to account in different ways.Hague and Melox production lines had been resolved and production re- Of these, 12 have been dismissed and 12 packages of documentsstarted in September. The temporary shutdowns offset higher revenue have been submitted to law enforcement agencies to initiatefrom uranium sales, reactor constructions and maintenance services. charges. He accepted that publicising such activity could damage AREVA CEO, Luc Oursel, said he would outline the company’s strat- Rosatom’s reputation.egy in mid December, given the slowdown in demand for reactors, fuel At the same time, tighter control over procurement has economicand services following Japan’s Fukushima Daiichi nuclear disaster. benefits. In the first half of 2011 nuclear utility Rosenergoatom Oursel has said the company may cut jobs, delay investments and saved RUB6.2bn ($200m) through improved procurement, or 9% ofsell assets to shore up finances. Standard and Poor’s has threatened total purchases.to lower AREVA’s BBB+ credit rating. Cancellation of orders since The procurement plan over six months was 90% fulfilled andFukushima have amounted to €301m as of the end of September, an the procurement transparency index exceeded 80% on average forAREVA statement said. Rosenergoatom and operating nuclear power plants (NPPs). The AREVA’s order book fell to €42.7bn at the end of September from introduction of the Uniform Industry-wide Procurement Standard€43.1bn at the end of June, AREVA said. The backlog does not include and open tendering led to decreasing contract prices for processan Electricite de France (EDF) order for 32 steam generators, worth equipment for NPPs.about €1.1bn, which will be booked in Q4 2011. It also excludes an For instance, in 2008 a cost of housing for Leningrad NPP was aboutorder for the completion of a NPP in the US state of Alabama. RUB203,000 per item, but in 2011 this fell to RUB119,000 per item. During a bidding process for design and installation of turbine con-Russia to improve denser piping at Kalinin NPP, the cost of the contract was brought down from RUB1.375bn to RUB900m as a result of competitionprocurement transparency between suppliers. According to Anatoly Baitov, Director of the department for procurement management at Rosenergoatom, in 2012 the utilityRUSSIAN STATE NUCLEAR corporation Rosatom has to improve the le- will hold bidding processes for items worth RUB120bn. Almost allgal regulatory basis of its procurement system, said Yelena Panfilova, the tenders will be open and bidders will be given the opportunity todirector of the Centre for Anti-Corruption Research and Initiative at prepare their offers in advance.Transparency International – Russia. She was attending a joint session of the Public Council and Eyeing the international marketRosatom’s Activity Transparency Enhancement Board. Transpar- Currently, the share of equipment produced for Rosatom byency International – Russia undertakes monitoring and analysis of Russian machine engineering enterprises amounts to over 96% ,Rosatom’s procurement activities to assess corruption risks. Alexey Dub, Director General of the Central Research Institute Panfilova noted significant changes in Rosatom’s anti-corruption of Machine Engineering Technology (TsNIITMASH) told theactivities. During the first round of monitoring of corruption risks first international forum “Russian & CIS Machine Building &in late 2009 and 2010, information transparency was minimal, she Engineering.”said, but the situation started to change towards the end of 2010. He said this showed that domestic enterprises are able to produce Many violations, both “of greater and less significance” were iden- “high quality equipment” which is “quite competitive in the interna-tified. “Now, the situation has noticeably improved: transparency tional market.”has increased sharply and standards have changed qualitatively,” Provided a customer is competent and can clearly formulate itsPanfilova continued, adding that this, however, did not mean that technical requirements at the start, domestic enterprises are quitethe ideal situation had been reached. capable of producing good quality equipment on time at the agreed “It’s still rather far from ideal, but at the same time, Rosatom is price,” Dub noted.tuned to dialogue and an attempt to rectify deficiencies,” she said. He said that at present Russian producers held only about 2% ofShe agreed that anticorruption activity could impct on Rosatom’s the world market for power engineering equipment. However, thereputation, but inaction would lead to more negative consequences. aim is to increase the share held by Russian enterprises, including Based on the monitoring results, the centre recommended Ro- joint ventures set up in Russia, to 9% by 2015.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 15
    • businessRussia restructures NIP which is aimed at increasing labour efficiency, reducing costs and raising wages.nuclear fuel industry Non-related and auxiliary structural divisions have been separated from the enterprises as affiliated companies, while some servicesIN 01 LAbOUR efficiency at Russia’s nuclear industry enterprises is were outsourced. As a result, labour efficiency at different enter-expected to increase by 23.9%, and in 2013 by a further 14.7%. prises increased from 15% to 50%, with an estimated average for This forecast was given by Mikhail Goland, deputy head of the in- this year of 27.8%. The average wage for this year is planned to reachnovative development division with the strategic management and RUB43,500, up 27.9% on last year and up 38% on 2008.budgeting department of the Ministry of Economic Development. Gross tax payments to local and federal budgets in 2010 were Efficiency overall in the nuclear industry is improving through the RUB24.5bn and are expected to increase substantially this year. Inintroduction by state nuclear corporation Rosatom of two new sys- 2010, RUB27.2bn was spent on production development.tems – the New Image Programme (NIP) and the Rosatom Produc- This year, FC TVEL plans to invest about RUB39bn to modernisetion System (RPS). production capacities at its enterprises and develop their scien- tific potential through the introduction of new high technologyRestructuring TVEL production systems.The effects have been most evident within Fuel Company TVEL. The By 2013 the implementation of a number of projects (nano-coat-aim of NIP is to remove non-related assets from FC TVEL enterprises. ings, nano-wires, cathode materials, nano-catalysts etc.) at FCAs a result, the Electrochemical Combine (ECP) in Krasnoyarsk TVEL enterprises should result in 2,000 new jobs increasing toshould become the most efficient enrichment plant in the world, ac- 3,000 new jobs by 2015.cording to FC TVEL President Yuri Olenin. Results for the first nine months of 2011 were acknowledged as sat- Positive results of RPSisfactory. Olenin says investments in development of ECP up to 2020 FC TVEL enterprises are also continuing to deploy the RPS which iswill amount to about RUB60-70bn ($1.9-2.2bn) to increase production expected to produce a cumulative economic benefit of RUB800.3mcapacities by 1.6-2 times and substantially reduce the cost of products. this year. The economic benefit of introducing the RPS at the Kovrov “The restructuring of FC TVEL’s enterprises has made ECP an in- Mechanical Plant (KMP) is put at RUB760,115 over the first half ofdustry leader due by increasing labour efficiency, reducing cost, and 2011 and it should approach RUB2.66m by the end of the year.modernising production,” he adds. KMP specialises in the manufacture of gas centrifuge machines Olenin said FC TVEL’s near-term plans included conversion to and is part of FC TVEL. Using the RPS, the stock-in-process fell byother products for some enterprises and consolidation of nuclear pro- 95% against kick-off indicators. If current stocks are taken as 100%,duction. In particular, an enrichment centre is to be set up at ECP, a by the end of 2011 the reduction should be 20% more.centrifuge technology development centre at Urals Electrochemi- The number of equipment items decreased to 109 from 185. Oc-cal Combine (UECC) in Novouralsk, and a conversion centre at the cupied space has been reduced from 3,367m2 to 1,805m2 and bySiberian Chemical Combine (SCC). the end of 2011 the pilot section will occupy just 1,755m2. Other enterprises will also be made to specialise, including those According to KMP Director General Yuri Mamin, the RPS systemmaking industrial products. FC TVEL “has practically” completed is being introduced throughout the plant. Inline with FC TVEL’sthe programme for restructuring UECC, according to Rosatom Di- consolidation plans, from 2012 gas centrifuge production, whichrector General Sergei Kirienko. The restructuring is part of the New is now at two enterprises – Tochmash and KMP, will be centred atImage programme (see Business). The process would be completed KMP. In the first half of 2011, a share of proceeds from gas centri-next year, he added. fuge production at KMP was 96.4% or RUB1.148bn of the total. According to Kiriyenko, at UECC the last facility to be removed is Rosatom head Kirienko says the volume of orders to be placedthe conversion plant. “All decisions on this issue have been already with UECC will grow to RUB38bn ($1.3bn) over several years fromtaken, he adds. Under the restructuring programme, those entities RUB24bn today as a result of the RPS.removed from UECC will form an association in Novouralsk which A number of production processes will be transferred to No-will continue to receive support from the combine for some time. vouralsk as part of the restructuring of FC TVEL. The 2010 UECC In addition, a mechanism is being developed to guarantee orders annual report showed net profit grew by 4.3% to RUB3.47bn. Grossfor these enterprises. Kirienko says “two decisions of principle” have profit was RUB10.13bn.been made. First, contracts with the combine will be signed for 3-5 UECC’s proceeds from the sale of goods, products, works and ser-years instead of one year. vices in 2010 grew by 23% to RUB21.18bn, RUB3.6bn above the 2010 Second, during the first year the enterprise will be guaranteed 75% target. In addition, the average wage of the combine’s employeesof the order for its products and just 25% will be subject to a bidding increased to RUB36,113, 20% above 2009, the report said.process where the enterprise can also participate. Later the guaran- TVEL plans rapid growthteed order share will be gradually reduced.Economic benefits of NIPThe cumulative economic benefit of introducing the NIP at FC TVEL RUSSIAN FUEL COMPANY TVEL plans to increase its proceeds to $11-enterprises was more than RUB4.5bn ($146m) over the last year 12bn by 2030, the company said in mid October. Financial resultsand eight months of this year. On 18 October FC TVEL said it had for 2010, drawn up in accordance with International Accountingcompleted the basic stage of restructuring of its enterprises using Standards (IAS), showed proceeds amounting to RUB98.8bn ($3.2bn)16 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • businessup on 2009 (RUB70.6bn) by nearly 40%. Rosenergoatom (REA), in 2012. Most of the proceeds arose from sales of nuclear fuel. Net profit Trotsenko said the FNPP contract was unprofitable from thewas RUB13.3bn, down 2.6% on 2009 (RUB13.7bn). The reduced very beginning. “It appears that the previous shareholders did notprofit was attributed to an increase in feed consumption, wages and intend to complete it,” he said, adding that today this contract iswear due to the corporate expansion of FC TVEL. “undoubtedly loss-making.” The company increased its spending for research by 33% (from REA will have to pay RUB3bn ($95m), of which RUB1.7bn will beRUB917.1m in 2009 to RUB1.2bn in 2010). The company also notes to pay off debts to suppliers and RUB1.3bn to pay wages, he noted. Hethat in 2010 it became responsible for enterprises of the conversion said at present the facility employs 52 people, while there should beand enrichment, gas centrifuge and research complexes. 1,500 working on the project. TVEL First Vice President Vladimir Rozhdestvensky said overall Before the settlement the shipyard’s workers were planning aproceeds of state nuclear corporation Rosatom, of which FC TVEL is strike because of wage payment delays. Dmitry Kozak, Deputypart, amount to $15bn, and by 2030 may reach $60bn. Chairman of the Russian government said disagreements with REA He added that the nuclear energy business alone could not support had been settled and suspended financing would be resumed. FNPPthe planned growth. Therefore, it would be necessary for TVEL to be- construction will be continued under guarantees from USC whichcome a global company and actively develop other production sectors. has taken direct control of BZ. One way to achieve this goal would be to set up specialised cen- In August, the St Petersburg and Leningrad region court of arbitra-tres such as the planned metallurgical centre at Chepetsky Metal- tion seized the FNPP as a guarantee for a claim against BZ by REA. BZlurgical Plant (CMP) and a mechanotronics centre at Tochmash. By argued that REA owed the shipyard about RUB1.3bn but has since2030 FC TVEL’s proceeds from sales of non-nuclear products should dropped its appeal against the court decision to impound the FNPP.increase to $2bn. Russia’s Legal Information Agency said proceedings will continue to TVEL reported that investments in development of the metallurgy determine whether ownership of the vessel lies with BZ or REA.centre at CMP will be more than RUB3bn ($93.7m) by 2012-2016. For USC to manage the enterprise effectively, a 100% ownedThe centre will merge all of TVEL’s metallurgy-related operations. subsidiary company, Baltiyskiy Zavod Sudostroyeniye, will be TVEL said the centre was needed to stay competitive in the established, Vedomosti reported. The new company will concludenuclear market and ensure orders in line with the growth targets contracts for the construction of ships, and all of the enterprise’sin TVEL’s long-term development programme, planned re-con- personnel will be transferred to it.figuration of production, and the need to retain personnel and BZ will retain its property and all preceding contracts and BZ willproduction capacities. gradually settle accounts with its creditors. Aleksandr Voznesens- The centre also will have the capacity to support metallurgical kiy is expected to become the director of the new company. He isproduction outside the nuclear industry. TVEL’s “Development currently director of strategic development for the manufacture ofof Industry-wide Metallurgy Centre” concept paper provides for Klimov helicopter engines and USC and also head of the board for thea jobs growth by 40% in 2012-2016. The centre’s production over construction of a shipbuilding complex in Kronshtadt. For the timethis period is expected to increase from 3,160t to nearly 5,000t and being he will hold all three jobs.proceeds will exceed RUB4bn by 2016. In mid-October, USC assumed management of BZ which was The TVEL metallurgical centre will produce rolled titanium items, 88% owned by Sergey Pugachev’s Obedinennaya Promyshlennayacalcium, tomograph wires, nanowires, rare-earth elements, zirco- Korporatsiya .nium dioxide-based industrial ceramics, stainless steel tubes, and In mid 2010 BZ was put up as collateral at Tsentrobank for a loancomponents for foreign companies, including GNF, GE and AECL. of Rub32bn its Mezhprombank, which soon lost its licence. Tsentro- The development framework for rare earth metal production bank tried unsuccessfully to obtain ownership of the plant’s sharescalls for establishing sections to produce granules, nanopowders through the courts, then at the end of September, the Moscow arbi-and powders for plasma spray coating, R&D and upgrading of the tration court placed BZ’s shares under Tsentrobank’s management,pilot installation. and the bank gave the enterprise to USC. But it was discovered that BZ was around RUB7bn in debt. USCCommissioning of Russia’s now plans to give BZ an order for an icebreaker/supply ship for Gaz- flot for RUB3bn, which was originally designated for the Amurskiyfloating plant delayed Sudostroitelnyy Zavod [Amur Shipyard], as well as to transfer several military ships for final outfitting from Kaliningrad’s Yantar and Severnaya Verf.COMMISSIONING OF THE pilot floating nuclear power plant (FNPP) business briefsbeing built at the Baltijskiy Zavod (BZ) shipyard will be delayed for1.5 years, until early 2014, according to Roman Trotsenko, Presi-dent of the United Shipbuilding Corporation (USC or ObedinennayaSudostroitelnaya Korporatsiya) in St Petersburg. bELGIUM: Utility Electrabel will contest any proposals by the new This followed an announcement that the shipyard was being trans- Belgian government to increase taxes on the nuclear industry byferred to USC management. The FNPP was the largest order BZ had “all legal means.” European nuclear news service NucNet reportsever received but the work was not completed and was suspended that Electrabel has called for “respect of international agreementsbecause bank accounts were blocked by shipyard owner USC. The protecting the sector’s investments”. Electrabel was responding toFNPP was scheduled to be release to the customer, nuclear utility media reports that French-speaking Socialist Party leader Elio Dimccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 17
    • businessRupo, who is in talks to form a government, wants to levy €1bn/year RUB60.3m) compared with the similar period in 2010. At the same($1.3bn/year) on Electrabel, the Belgian branch of French utility time, net profit dropped 1.6 times to RUB12.2bn. AEP includesGDF Suez. In a statement, Electrabel threatened to close the three about 45 Rosatom organisations, which cover the entire nuclearoldest Belgian nuclear reactors, Doel-1 and -2, and Tihange-1, if power production cycle from uranium mining through construc-taxes are imposed on nuclear power. All three units began commer- tion of nuclear power plants to electricity generation.cial operation in 1975. RUSSIA: Rosatom is planning to merge Atomstroyexport (ASE) pinci-CzECH REPUbLIC/RUSSIA: Czech company Arako, a subsidiary of pal contractor for construction of nuclear power facilities abroad andRussia’s Atomenergomash that produces valves for the nuclear power Nizhny Novgorod Atomenergoproekt (NN AEP), chief architect andindustry, will invest CZK160m ($9.2m) in major equipment replace- principal contractor for many NPP construction projects. The mergerment over the next two years. This will allow Arako to reduce prod- procedure should start by 1 December, with the appointment of auct costs and increase production efficiency to meet the growing single executive body for both companies. “This may be a legal entityneeds of NPPs planned or under construction in Russia. To finance or physical person,” a Rosatom source told Nuclear.ru. The mergerthe modernisation programme, Arako took a loan from the Czech- should be completed in the second quarter of 2012. ASE is buildingSlovak Operational Bank (Ceskoslovenska obchodni banka or CSOB) five nuclear reactors abroad while NN AEP is principal contractor forat a 3.5% interest rate. Russian state nuclear corporation Rosatom reactors at Russia’s Kalinin, Rostov and Baltic NPPs and is helpingguaranteed the loan. In addition, Arako will spend 8% of proceeds to design NPPs for Turkey, India and Nizhniy Novgorod in Russia. Inon production improvements and implementation of innovations. 2008, Rosatom planned to merge ASE with St Petersburg Atomen-Arako’s proceeds were CZK417m in 2010 and are expected to reach ergoproekt (SPb AEP) and appointed Leonid Reznikov to head bothCZK450m in 2011. In 2010, Arako’s net profit was CZK32m and an- companies. A common management structure was planned butnual average profit growth was 70% in 2008-2010. Nuclear products never put in place. In March 2010, ASE President Dan Belenkiy wasamount to 70% of its production. appointed part-time Director General of SPb AEP but the merger never went ahead.FRANCE: Unions at AREVA fear up to 10% of AREVA’s staff, up to4,000 workers, could lose their jobs as a result of a strategic review RUSSIA: The Federal Antimonopoly Service (FAS) says the Isotopeof the company to be presented by CEO Luc Oursel in mid Decem- Company violated Russian law by setting high monopolistic pricesber, according to reports in French newspaper Le Figaro. In October, for isotope products and imposing disadvantageous, technically andAREVA said it was reviewing its investments, and might postpone economically unjustified terms on delivery. In May, Atom, Kvant andsome because of the March disaster at Japan’s Fukushima Daiichi Murmansk Exploration Expedition, which had previously purchasednuclear power plant (NPP) has impacted decisions on nuclear invest- isotopes directly from producers, complained about the high pricesments worldwide. According to Le Figaro, AREVA said no numbers set by Isotope after Rosatom in September 2010 made Isotope solewere final and that it is still considering several scenarios. AREVA agent for isotope sales at home and abroad. FAS found that Isotopehas hired Boston Consulting Group for a review, and analysts say charged an additional 50% or more than the prices charged byAREVA could make up to 30% in across the board cuts. producers. In August Rosatom investigated Isotope’s activity and withdrew its approval for Isotope to act as sole agent. In SeptemberINDIA: Oil and Natural Gas Corporation Ltd (ONGC) plans to conclude Isotope admitted breaching the antimonopoly law. FAS requireda joint venture (JV) agreement with Nuclear Power Corporation Isotope to set economically and technologically justified prices forof India Ltd (NPCIL) before the end of this fiscal year to set up a isotopes within three months and to report to FAS every six months2,000MWe NPP. NPCIL has submitted a draft memorandum of on its economic activities, prices, trade margins, and purchase andunderstanding (MOU) to ONGC for review. ONGC officials have sales volumes of isotopes in the Russian market.said the company seeks to become an integrated energy company.The draft MOU calls for NPCIL to hold a 51% stake in the JV, with RUSSIA: Murmansk electricity supplier Kolenergosbyt owesONGC holding 49%. The cost of the 2,000MWe NPP is estimated at nuclear utility Rosenergoatom RUB1.5bn ($48.3m). Kola NPP PlantRs200bn ($4bn), which NCPIL plans to finance through 70% debt Manager Vasily Omelchuk says Rosenergoatom is treating the debtand 30% equity financing. Only NPCIL and Bhartiya Nabhikiya problems “with understanding” and is ready for further negotia-Vidyut Nigam Ltd are empowered to establish NPPs in India. Other tions. Earlier talks resulted in agreements on partial payment of thecompanies wishing to have a stake in the industry must enter into debt and provisions to cover current payments. Kolenergosbyt andagreements with them. Rosenergoatom have agreed on the possible transfer of ownership to Rosenergoatom of part of the property of the heat supply organisa-RUSSIA: Nuclear holding company Atomenergoprom (AEP) will tion in Polyarnye Zory City, TVS, for repayment and restructuringpay out RUB8.1bn ($254.3m) in dividends on ordinary shares the remainder of the debt, and payment by instalments. “We expectfor the first half of the 2011 fiscal year. Dividends will amount Kolenergosbyt to produce proposals on a debt repayment scheduleto RUB12.04 /share. State nuclear corporation Rosatom is the and a record of market value assessment of TVS assets,” Omelchuksole shareholder in AEP and received RUB3.3bn as dividends said. The companies will then jointly develop a plan to restructureon 2009 results. Results from 2010 suggest dividends will total the remainder of the debt, he added.RUB14.043bn. Dividends were to be paid in two parts: RUB6bnby the beginning of July 2011, and RUB8bn by the end of August. UKRAINE: Nuclear utility Energoatom has selected Alfa-Bank andIn the first half of 2011, AEP proceeds increased 5.2 times (up Oschadbank, both based in Kiev, to open two renewable credit lines18 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • business > General Developmentworth a total of UAH700m ($87.3m), according to the Economic Devel- US: Uranium Energy Corp (UEC) has reported financial and produc-opment and Trade Ministry’s web site. The cost of servicing Alfa-Bank’s tion results for the fourth quarter (Q4) and fiscal year to the end ofcredit line of UAH400m will be UAH206.212m (including VAT), and July. During Q4, UEC produced 83,000lbs of U3O8 in inventory,that of Oschadbank’s credit line of UAH300m, UAH157.356m (includ- including work-in-progress, compared with 49,000lbs in the previousing VAT). Both credit lines will run for three years from the date of the quarter. From the beginning of production in November 2010 untilsigning the agreement, expected in mid November. In July, Energoat- the end of July 2011, UEC produced a total of 153,000lbs of U3O8om signed an agreement with Ukreximbank on the attraction of loans at a cash operating expense of $13/lb. As of the end of July, UECworth a total of $130m. Prominvestbank won an Energoatom tender to remained debt free, with $30.7m in cash, and 153,000lbs of U3O8open a renewable credit line worth $50m. in inventory. Also in Q4, Uranium Energy signed its first multi-year sales contract, and acquired the historically significant AndersonUKRAINE: Nuclear utility Energoatom intends to raise UAH150m Mine project in Arizona: In May 2011, terms were finalised on UEC’s($18.8m) in credit lines, according to a statement on the Ministry merger with Concentric Energy Corp, specifically to acquire the An-of Economic Development and Trade website. Bids will be accepted derson Mine project.UEC also acquired the Coronel Oviedo Uraniumuntil the end of November, and the tender proposals will be disclosed Project in Paraguay.then as well. The tender is divided into two lots: UAH100m as anoverdraft and UAH50m as a renewable credit line. The loans will be GENERAL DEVELOPMENTraised for one year from the signing date of the credit agreement.Energoatom operates Ukraine’s four nuclear power plants, witha total of 15 VVER reactors and an overall generating capacity of belgium shutdown13.835GWe. agreementUKRAINE: The electricity generating enterprises that make up nuclear bELGIAN POLITICAL PARTIES have reached a conditional agreementutility Energoatom produced 1.6% more electricity year-on-year in to shut down the country’s two remaining nuclear power plantsJanuary-September, increasing production to 65.588bn kWh. Col- (NPPs), owned by GDF Suez unit Electrabel. The plan calls for closinglectively, Ukraine’s NPPs exceeded their production targets by 3.2%. Belgium’s three oldest reactors by 2015, and a complete pullout fromZaporizhia NPP increased power generation by 1.2% to 30.198TWh nuclear power by 2025. However, it is conditional on finding suf-and Khmelnytsky NPP by 20.8% to 11.540TWh. However, South ficient alternative sources of energy to prevent shortages.Ukraine NPP produced 3.7% less power than expected, 11.554TWh, Belgium’s energy and climate ministry said that the countryand Rivne NPP 6.9% less (12.134Th). The Tashlyk pumped-storage would stay with the nuclear exit law of 2003, unless this would pro-electric power station produced 9.6% more power (125.1m kWh), the duce energy shortages or spiking prices. Belgium now operates sevenDonuzlav wind power plant 2.3 times more (4.4m kWh). The Olek- reactors at two NPPs.sandrivska hydropower plant produced 3.2% less power (33.3m kWh). GDF Suez shares fell nearly 5% on the announcement. Ana- lysts at Itinera think tank have said that Belgium cannot haveUK: The government has offered Sheffield Forgemasters a loan of up replacement capacity in place by 2015, and added that Belgium’sto £36m ($57m) to continue upgrades to increase production for energy regulator CREG already has made statements to this effect.the nuclear and steel industries. Forgemasters will repay the money Another concern is the state of the economy. If a new recessionin full over time, but in the meantime the funds should help the materialises, electricity demand will drop, and there would becompany to service the global civil nuclear renaissance and global more margin to take capacity off the grid. If the economy recoversnuclear refurbishment programmes, Forgemasters said. In June 2010 strongly, it will be harder to reduce capacity.Forgemasters lost on out a planned loan of £80m due to cuts the cur- Belgium will now negotiate with investors to see how it can findrent government made immediately on taking power. The loan was new capacity to replace the 5,860MWe that will be lost if the Doelfor a 15,000t press capable of making the largest nuclear forgings and Tihange NPPs close.from steel ingots weighing up to 600t. Forgemasters CEO Graham The political parties also discussed increasing taxes on Electrabel,Honeyman says the new loan would be used for new plant and equip- which agreed in 2009 to pay between €215m ($304m) and €245mment enhancements for the forge and machine shops. per year in the period 2010-2014, for operating the NPPs. Belgian business daily L’Echo wrote that Elio Di Rupo, the French-speakingUS: The Shaw Group announced financial results for the fourth quar- Socialist party chief leading coalition talks, wanted to charge theter (Q4) of fiscal year 2011. A company statement said the market Electrabel-dominated nuclear industry €1bn/year.outlook for the year was very positive overall with significant op- E.ON and RwE getportunities in most operating segments. Shaw expects constructionlicences for its nuclear projects by early 2012, which should have apositive impact on earnings. Shaw’s backlog of unfilled orders totals$20.0bn, including new Q4 three-year maintenance and service taxes reimbursedcontracts with Florida Power & Light for four NPP units in Florida,and with NextEra Energy Seabrook for the Seabrook NPP in New GERMANY’S TwO LARGEST utilities, E.ON and RWE, have been condi-Hampshire. Shaw announced its special purpose subsidiary, Nuclear tionally reimbursed €170m ($237m) in nuclear fuel taxes after twoEnergy Holdings intended to exercise put options to sell its invest- courts ruled in their favour.ment in Westinghouse back to Toshiba Corporation. E.ON, Germany’s biggest nuclear power producer, received a tenta-mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 19
    • General Developmenttive reimbursement of €96m in taxes on its Grafenrheinfeld reactor. and US based Westinghouse, owned by Japan’s Toshiba.RWE received €74m for the Gundremmingen plant. After a four-month review, Chinese regulators have concluded Courts in Hamburg and Munich ruled in the utilities’ favour after that the nuclear industry meets international and domestic safetythey protested against the levy. Ultimately, a federal fiscal court will standards. Initial results of the safety inspections indicate thatdecide whether the utilities can keep the money. China’s nuclear power plants (NPPs) comply with International The levy was drafted last year to accompany a proposal by Chancel- Atomic Energy Agency (IAEA) standards, as well as China’s currentlor Angela Merkel to extend the life of the reactors into the 2030s. nuclear safety regulations, according to China’s National NuclearHowever, the government scrapped the life extension plan in the Safety Administration (NNSA). Results of the assessments are stillwake of Japan’s Fukushima accident, but kept the tax in order to help being evaluated in greater detail. NNSA, Ministry of Environmentaltrim the budget deficit. Some analysts have put the utilities’ chances Protection, National Energy Administration (NEA) and China Earth-of gaining a favourable decision from the fiscal court at less than 50%. quake Administration joint inspected all plants between April and EON, RWE, EnBW Energie Baden-Wuerttemberg and Vattenfall August. NEA suspended future approvals of NPPs pending comple-have extended cost-cutting and asset-sale programmes to curb losses tion of the review.from Germany’s decision to close its NPPs. EON in August reportedits first quarterly loss in a decade, citing costs linked to the fuel tax China may invest in Romanian NPPand the nuclear phase-out. RWE said the policy reduced first-half However, China Guangdong Nuclear Power Corp (CGNPC) may2011 profit by €900m. invest in a project to build two additional reactors at Romania’s only NPP in Cernavoda on the Danube River, according to Romania’sE.ON readies German shutdown lawsuit Economy Ministry. Romania’s state-owned nuclear power plantE.ON plans to file a complaint with Germany’s highest court seeking operator Nuclearelectrica and CGNPC signed a confidentiality agree-compensation for lost profits from Germany’s decision to pull out of ment in Beijing that allows CGNPC to seek details about the reac-nuclear power, according to reports in German newspaper Financial tors. Romania now operates two 706MWe units at Cernavoda, whichTimes Deutschland. The paper quoted unidentified industry sources provide 20% of its electricity and plans to have the new units on lineas saying the lawsuit would be filed before the end of the year with by 2019. It is seeking private partners to help finance the project.the German constitutional court. The confidentiality agreement will allow CGNPC to access informa- tion about ways to invest in Cernavoda-3 and -4. A ministry statement,China to scale back said the agreement is part of a procedure to select new investors. Since European power groups GDF Suez, Iberdrola, RWE and CEZnuclear plans withdrew from the Cernavoda partnership, Romania has increas- ingly looked to Asian companies as funding partners. In Septem- ber, a South Korean consortium led by BKB Co visited Romania toCHINESE NUCLEAR INDUSTRY officials have said that China’s 2020 discuss the project.nuclear capacity targets will probably be scaled down in the wake of The Economy Ministry has said it intends to sell 40% of its sharesthe moratorium on new project approvals issued after Japan’s Fuku- in the €4bn ($5.7bn) project. Nuclearelectrica still has two of its sixshima Daiichi accident in March. original foreign partners, Italy’s Enel and a local unit of ArcelorMit- China originally planned to release a revised nuclear develop- tal, which together hold slightly more than a 15% stake.ment blueprint this year, with many analysts predicting a new 2020 bangladesh signs NPPtarget of 86GWe, up from the previous 40GWe. At the end of 2010,China’s capacity stood at 10.9GWe, with an additional 40GWe underconstruction. China’s reactor builders had suggested that as much as100-120GWe could be available by 2020. However, Beijing said that deal with Russiasuch plans would be adjusted in the wake of Fukushima. Li Yongjiang, Vice President of the China Nuclear Energy Associa- RUSSIA AND bANGLADESH on November 2 signed an intergovern-tion (CNEA), said on the sidelines of an industry conference in Hong mental agreement for construction of the first nuclear power plantKong that China was likely to resume new projects in 2012, but had (NPP) in Bangladesh. A statement by state nuclear corporationalready lost a year of construction time. He said the 86GWe target had Rosatom said the agreement provides for the design, construc-been tight even before Fukushima, and that the suspension would tion and commissioning of two units with VVER-1000 reactorsforce a delay of around 10GWe of new capacity this year. If new proj- at Rooppur, 200km from Dhaka, as well as construction of theects restart next year, China would only be able to build 60-70GWe by relevant infrastructure.2020, so the target would definitely have to be reduced, he said. Rosatom head Sergei Kirienko said the plant will have a passive In March, China ordered a nationwide inspection of existing heat transfer system, hydrogen recombinators, a molten-core catcherplants and construction sites in order to allay public safety fears. and double containment in order to meet post-Fukushima securityAreas of concern included the safety of the many second-generation requirements. Russia will supply nuclear fuel to the plant through-(Gen II) reactors set to go into operation, the shortage of qualified out its service life, Bangladeshi specialists will begin an internshipsafety and operational personnel, and the possible construction of and training with Rosatom starting next year.nuclear projects in seismically vulnerable provinces like Sichuan. Of- Bangladesh will fund all research at the $1.5bn site, with construc-ficials have suggested that no new Gen II reactors will be approved, tion expected to be completed by 2018, said Alexander Glukhov,leaving the way clear for Gen III models designed by France’s AREVA President of Russian construction company Atomstroyexport. A0 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • General Developmentpreliminary agreement in February provided for design, construc- the sidelines to discuss the issue.tion and commissioning of the two reactors and followed a 2009 Recently, South Australian (SA) Premier Mike Rann retracted hisframework cooperation agreement with Russia. earlier opposition to selling uranium to India. Asked by Australia’s Rosatom and and Bangladesh’s Atomic Energy Commission will Sky News Showdown if the federal government was wrong to bannow work on two further deals relating to costing and equipment uranium exports to India, Rann said that he believed it was “prob-procurement TheInternational Atomic Energy Association approved ably time for a sensible discussion about that”. He noted that IndiaBangladesh’s plans to build a NPP in 2007. France, South Korea, China was now prepared to sign up to very strict standards for its nuclearand Pakistan have all expressed interest in assisting with the project. power programme. He had previously said sales to India would be a Officials earlier said the major part of the cost will be provided “grave mistake” and “extremely foolhardy”.through domestic funds with the rest coming from the supplier or Rann’s remarks came a week after he agreed to BHP Billiton’s pro-international donors as soft loans. Currently only 40% of the popula- posal to expand the Olympic Dam mine in SA, which he said wouldtion has access to electricity provided by 41 public and private sector be the world’s largest uranium mine.plants with de-rated capacity of 5,198MWe. Bangladesh has a deficit Indian anti-nuclearof 1,000-1,500MWe with dwindling reserves in existing gas fields,the main source for its power generation, along with expensiveimports of oil. protests continueAustralia wavering on INDIA’S FEDERAL GOVERNMENT has set up a 15-member panel ofuranium sales to India experts to discuss safety issues with villagers protesting against a nuclear power plant (NPP) in the southern state of Tamil Nadu. Villagers near the Kudankulam NPP under construction withAUSTRALIAN FOREIGN MINISTER, Kevin Rudd, and the Resources Russian assistance have been protesting for weeks and want theMinister, Martin Ferguson, say the Labour Party is free to debate plant scrapped out of concern for their safety and livelihoods. Thea policy change to allow uranium exports to India. While Rudd 15-member panel includes specialists in radiation, reactor safety,remains opposed, saying India does not need any more uranium, oncology, fisheries and nuclear waste management.Ferguson has long been pressing for a policy change. At least 100 villagers have staged a hunger strike in front of the Indian officials and businesses lobbied quietly at the Common- plant, and protesters have blocked the entry of workers to the plant.wealth Heads of Government Meeting in Perth for the government The protests accelerated after the March accident involving Japan’sto change its policy and allow uranium exports. However, the Fukushima Daiichi NPP. Two 1,000MWe reactors at the NPP areruling Labour Party formally continues to oppose uranium sales to scheduled to begin operation at the end of the year.India and other states that have not signed the nuclear non prolif- Tamil Nadu Chief Minister Jayalalithaa has said her governmenteration treaty (NPT). stands firm on suspending work on the controversial Kundankulam The Age reported in October that a confidential briefing note to NPP until the people’s concerns are addressed. Jayalalithaa issuedFerguson last February says Australia and India have already begun a strongly worded statement that said the federal government anda “dialogue” over a potential sale. The note says the opened dialogue Kundankulam have done little to allay fears surrounding the Indo-will prove useful if Labour decides to change its policy at its national Russia joint venture. She also charged that she had not received twoconference in December. “The dialogue could be elevated in the future letters on the issue from Prime Minister Manmohan Singh, evenas conditions allow agreement on exporting uranium to India,” it said. though the Indian media already has reported on their contents.Ferguson will be pushing to “modernise” Labour’s uranium policy atthe national conference, The Age added. Earlier this year he declared Russian experts leave NPP siteIndia had a “very, very good history of nuclear non-proliferation”. Meanwhile, experts from Russian nuclear construction company Australia is presently among the top three sellers of uranium in Atomstroyexport (ASE) have left the site after they were refusedthe world, with over 20% of the world’s reserves still in the ground. permission to visit the area by the police in face of the ongoing pro-Current uranium sales are subject to strict controls under agree- tests. Police said as they feared that there could be “surprise attacks”ments between the International Atomic Energy Agency and Austra- on the Russians by the protesters, they were hesitant to permit thelia. Under pesent law any buyer of Australian uranium must also be Russian engineers to visit the site.part of the NPT. The Russians were staying in the nearby Anu Vijay township but A spokesperson for Ferguson told ABC News that suggestions said they could not stay there indefinitely. Police had issued warningsAustralia was looking to sell uranium to India were incorrect, adding to the Central Industrial Security Force personnel who were providingthat the dialogue was about selling resources and energy but not security to the Russian group. NPP officials are concernd that they willuranium. Ferguson told The Age the government was sticking by its be unable to prepare a report for the government’s panel of experts ifpolicy only to supply uranium to NPT signatory countries. they are not allowed to go the project site and have asked for immedi- However, earlier WikiLeaks cables indicated that Ferguson told ate government intervention to sort out the problem.the US embassy in Canberra that a deal to supply India with ura- There are also concerns about the ongoing pre-commissioningnium could be reached within three to five years. Liberal opposition tests at the plant. Atomic Energy Commission of India’s Chairmanleader Tony Abbott, who was also in Perth for the Commonwealth Srikumar Banerjee says the tests cannot be stopped and “minimalmeeting, reportedly met Indian Vice President Hamid Ansari on maintenance activity” was required to ensure the project proceededmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 1
    • General Developmentsmoothly. He said that any stoppage of trials would endanger the Taiwan’s oldest operating nuclear units are the two 604MWe Gen-workers and the protestors. With the hot run at unit 1 “very close to eral Electric boiling water reactors at Chinshan, which started com-completion,” the cooling apparatus needs to continue its monitored mercial operation in 1978 and 1979. Taipower had been expectingcirculation, he said. “The coolant should not be allowed to stagnate to seek 20-year licence renewals for all of its operating plants, and inas it will create problems in the future. Minimum maintenance ac- 2007 Taiwan’s Atomic Energy Council (AEC) approved a life exten-tivity is required for the health of the plant and its future,” he added. sion for the Chinshan units after a safety evaluation found them safe Refusing to speculate on what the recommendations of the to run for a further 20 years. However, they will now be closed at thePrime Minister’s special panel were likely to be, Banerjee indicated end of their original 40-year licence provided the two 1300MWethat the reactor could be operated safely with the few workers still Lungmen ABWRs are working by then. The operating licences forinside, despite the protestors blocking people from entering or Kuosheng and Maanshan NPPs expire in the early 2020s.leaving. He also echoed the statement by Nuclear Power Corpora- The two Advanced Boiling Water Reactors (ABWR) under con-tion of India (NPCIL) Chairman Shreyans Kumar Jain, that a NPP is struction at Lungmen will be allowed to start up but only after pass-not a car to be switched on and off anytime, and that the protests ing strict safety evaluations by the government and internationalwere damaging the plant. nuclear safety organisations. Additional improvements are being car- ried out at the plant in the wake of the Fukushima Daiichi nuclearSchedule changes crisis earlier this year, and an operation date is to be announced earlyThe protests have also caused the dates of the planned first criti- in 2012. However, at the end of October Minister of Economic Af-cality of Kudankulam-1 to be changed. Atomstroyexport President fairs Shih Yen-shiang said they would enter commercial operation noAlexander Glukhov said talks are underway to determine a new later than 2017.commissioning schedule. The first reactor was to have been loaded Although work started on Lungmen in 1999, the project has facedwith fuel in December but Glukhov believes the schedule “should political, legal and other delays. The first unit is currently undergo-be adjusted”. ing pre-operational tests and was scheduled to open in December, He thinks that India should pay more attention to the public but start-up has been repeatedly delayed partly because of unsatis-opinion and better prepare the way for NPP construction. The delays factory trial runs and then because of the need for post-Fukushimaand schedule changes could also affect financial arrangements he upgrades. Taipower Chairman Edward KM Chen estimated thatadded, saying this issue may be discussed in future. However he each year of delay would increase costs by NT$5bn ($166.7m). Somedoes not believe cuirrent events will affect implementation of other 99% of energy used on Taiwan is imported. Although nuclear powernuclear construction projects on the agreed “roadmap”. The number comprises only 11% of installed generating capacity it has played aof reactors to be built are important but not the sites, which can be significant part in the island’s electricity supply for two decades, andchanged, “in principle,” he said, noting that India has a “very posi- now provides about a quarter of base-load power. In 2010 Taipowertive” attitude towards cooperation with Russia. had announced that it was considering uprating the six existing reac- Civil nuclear cooperation was also among the key issues dis- tors as well as completing three new ones, including the two alreadycussed by the Indian and French foriegn ministers during a series of under construction, by 2025.meetings in mid October. In a press briefing following the meet- Vietnam’s programmeings, French Foreign Minister Alain Juppe said discussions includedFrance’s stringent safety standards. France is in discussions withIndia on the construction of two 1,650MWe European pressurisedwater reactors (EPRs) in Jaitapur in Maharashtra. draws interestTaiwan puts limits RUSSIA’S FINANCE MINISTRY has concluded an intergovernmental agreement with Vietnam that calls for Russia to provide a stateon nuclear power loan for construction of Vietnam’s first nuclear power plant (NPP), said Aleksandr Glukhov the head of nuclear construction company Atomstroyexport (ASE), which is part of Russia’s state nuclearTAIwAN’S NEw ENERGY policy rules out any life extensions to Taip- corporation Rosatom.ower’s existing nuclear power plants (NPPs). The aim of the policy is Glukhov did not specify the size of the loan. Project financing willeventually to make Taiwan nuclear-free”. Chinshan, Kuosheng and be opened when “real work” begins on the Ninh Thuan NPP in earlyMaanshan NPPs will not operate beyond their planned 40-year lives 2012, he said.and that Taiwan’s fourth NPP at Lungmen will only start operations Vietnam is also ready to forge a new intergovernmental agree-when all safety requirements have been met. The oldest two units ment with Japan for construction of its phase two of its first NPPwill face early closure if both Lungmen units are in commercial using Japanese technology. During a state visit of Vietnamese Primeoperation before 2016. Minister Nguyen Tan Dung to Japan at the end of October, Japan The new policy had been prepared “in keeping with the principles and Vietnam reaffirmed their plan to build a NPP in Vietnam usingof no power rationing, maintenance of stable electricity prices and Japanese technology.continued reduction of carbon dioxide emissions to meet interna- Last October, Vietnam accepted Japan as a partner in the construc-tional goals,” said officials. They also noted that it is in line with Ar- tion of two reactors but this was put in doubt after the Fukushimaticle 23 of the Basic Environment Act, which directs the government accident. However, a joint statement released after the recent talksto make plans that will eventually see Taiwan become nuclear-free. said Japan was committed to enhance nuclear safety by sharing les- | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • General Developmentsons learnt from Fukushima. NPP. Jordan plans to have the plant on line by 2019. Vietnam had presented six conditions to the Japanese govern- Khaled Touqan, Jordan’s Energy and Mineral Resources Minister,ment, including the introduction of safety-verified, cutting-edge met with Japanese officials in early October and requested that thetechnology, and provisions covering nuclear waste disposal. Japan Diet endorse the accord by the end of December, when the success-has met these conditions. The final outstanding issue involved low- ful bid would be selected. A consortium of Japan’s Mitsubishi Heavyinterest loans to the Vietnamese government that would provide Industries Ltd and France’s AREVA is competing with Russian andcapital for construction. Both countries are believed to have reached Canadian firms to win contracts worth more than $4bn (¥300bn)agreement on this. for the plant. Kazakhstan is also taking an interest in Vietnam’s nuclear plans. In late August, the Foreign Affairs Committee of the Lower HouseDuring a visit to Vietnam in October, Kazakh President Nursultan of the Diet decided not to vote on the agreement after an expert out-Nazarbayev noted the huge potential of a Kazakh-Vietnamese lined problems with the supply of cooling water to the planned sitepartnership. A statement released by the Kazakh presidential press in Jordan. Japan’s Foreign Ministry urged that a vote be scheduledservice said Kazakhstan was ready to cooperate with Vietnamese after it inspected the site and concluded the problems there could bepartners in many areas and had “significant interest in long-term solved. The Upper House has approved the measure and both coun-supplies of nuclear fuel to Vietnam and in taking part in projects tries signed it last September.to build NPPs”. UAE seeks approvalJapan to continue for constructionnuclear plant exports UNITED ARAb EMIRATES (UAE) Emirates Nuclear Energy Corpora-JAPANESE TRADE MINISTER Yukio Edano said in October that Japan tion (ENEC) has requested the Federal Authority for Nuclear Regu-will continue to promote nuclear plant exports. He told a news con- lation (FANR) approval of additional preparatory constructionference at an International Energy Agency ministerial meeting in work for the UAE’s first nuclear power plant (NPP). UAE expects toParis that Japan wants to provide other countries with its world-class have four NPPs in operation by 2020, which will produce almostnuclear safety technologies and knowledge. 25% of its electricity. ENEC expects to begin producing electricity However, he noted that Japan aims to accelerate efforts to promote for the grid by 2017.the use of renewable energy and development of relevant technolo- ENEC hopes to begin pouring concrete at Bakra, the site UAEgies. Addressing the meeting, Edano expressed gratitude for other selected for its first NPP, by 2012. ENEC has applied for approvalcountries’ support in the wake of the crisis at Fukushima and said to create a smooth flat surface at the bottom of the excavation toJapan intends to share lessons from the crisis with other countries. prepare for pouring concrete for units 1 and 2, according to an ENEC The previous day, Japanese Prime Minister Yoshihiko Noda said statement. It also seeks approval to place reinforcing steels, embed-that with respect to nuclear exports, the government will be careful ded pipes, electrical conduits and electrical grounding material.not to damage the trust it has developed with longtime diplomatic ENEC will not be authorised to pour concrete for the permanentpartners, and will move ahead with nuclear agreements with Russia, power block until it receives a construction licence from FANR, theSouth Korea, Jordan and Vietnam. He added that the government statement said. ENEC submitted its construction licence applicationwill decide on ways to negotiate new nuclear deals while taking into to FANR in December 2010.account the official findings on the Fukushima accident. In December 2009, UAE contracted with a South Korea-led con- After a meeting with Turkish Prime Minister Recep Tayyip Erdo- sortium for design, construction and operation of the four reactors.gan Noda agreed in early November to resume negotiations on the ci- It is expected to award a fuel supply contract early next year. In Julyvilian nuclear cooperation agreement with Turkey which had started 2010, FANR and the Environment Agency approved licences forbefore the Fukushima accident. Erdogan said he hoped the bilateral non-safety-related preparations at Braka, such as the construction ofnegotiations on plans to construct a nuclear power plant (NPP) in a jetty, and a limited licence for the manufacture of major compo-Turkey would go forward. Talks were suspended after Fukushima. nents in South Korea. FANR officials have said the agency expects to Japan has also reaffirmed plans to build a NPP in Vietnam (see complete review of the licence application by mid 2012.previous story) and at the end of October Foreign Minister Koichiro Meanwhile, in October a week-long workshop on Safety Assess-Gemba and his Indian counterpart, S.M. Krishna agreed to move ment of NPPS drew 19 participants from ENEC, Khalifa Universityahead with talks toward a civilian nuclear power agreement - a and FANR itself, who have recently graduated from science and en-precondition to enable Japan to export nuclear technology India. gineering studies. The workshop was organised jointly by FANR, the“In a transparent manner, we will provide (India) with information International Atomic Energy Agency (IAEA) and the Korea Instituteon the cause and the research outcome of the Fukushima Daiichi of Nuclear Safety (KINS).accident, as well as on our efforts at ensuring safety,” Genba told a “This is an investment in a sustainable nuclear energy pro-press conference in Tokyo. gramme,” said Ian Grant, Director of FANR Nuclear Safety De- However, Jordan is becoming impatient and warned Japan that if partment. FANR has been reviewing ENEC’s construction licencethe Diet (parliament) does not ratify a bilateral civil nuclear coopera- application since 27 December 2010. The review, planned to take ap-tion agreement by the end of the year, a Japanese-French consortium proximately 18 months, will include any supplemental issues raisedwould not be considered for a lucrative contract to build Jordan’s first by the Fukushima accident.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 3
    • General DevelopmentRussia prepares Glukhov, President of Russia’s Atomstroyexport (ASE) in October signed the general contract for the construction of the first nuclearfor reactor export power plant (NPP) in Belarus. The contract is for the turnkey construction by ASE of twoDEMAND FOR RUSSIAN nuclear power plants has remained strong de- 1,200MWe AES-2006 model VVER reactors, developed by the Stspite the Fukushima-Daiichi accident in March 2011 and Russia aims Petersburg Atomenergoproekt.to further increase its international presence, state nuclear corporation Belarus earlier launched a tender for construction of the plant in-Rosatom head Sergei Kirienko told investors in London in October. viting bids from state nuclear corporation Rosatom, France’s AREVA He said all six export contracts signed by Rosatom in 2010 and and US-based Westinghouse-Toshiba.2011 remain in place and Rosatom has also concluded agreements ASE, Rosatom’s subsidiary for the construction of nuclear powerwith China and Slovakia to improve their existing nuclear infra- plants abroad, was the only bidder willing to proceed and to providestructure, as well as a “road map” with India for its civilian nuclear financing for the estimated $9bn plant, to be built at Ostrovetsk inprogramme, he said. Grodno near the Lithuanian border. Work has already started on the Russia is looking for new western partners to further develop its site. The house of representatives of the Belarus National Assemblynuclear investments both at home and abroad. “Our goal is to open ratified the construction agreement later in October.up the sector to broad, free dialogue with the western investment In May 2009, Russia and Belarus signed an intergovernmentalcommunity,” he said. agreement on nuclear cooperation which specified the main direc- Rosatom’s acquisition of a majority stake in Canada-based Ura- tions of cooperation in the development, design, construction andnium One was “a vital step towards this goal”. Part of Russia’s strat- operation of NPPs, nuclear fuel supply, nuclear and radiation safety,egy includes design of a new internationally competitive reactor, as well as scientific cooperation and training.VVER-TOI (standard optimised and informatised large power unit This was followed in September 2009 with ASE signing an agree-with a water-water reactor) which is now 53% complete and it should ment to assist in a feasibility study into the construction of the plantbe ready by the end of 2012. It is intended for extensive construction and investment options available to finance the project.abroad, in particular, in Turkey, Vietnam and other countries. Officials in Belarus have said Russia would provide Belarus with a loan The VVER-TOI is designed for rapid (40-46 months) serial con- that will cover at least 90% of the value of the construction contract.struction with the aim of making possible a world-beating cost of Deputy Energy Minister Mikhail Mikhadzyuk told reporters in$2.5m/MW of installed capacity. Minsk that the remaining funding will come from the government Compared with Russia’s current standardAES-2006 design, the or from other lenders. He did not disclose the cost of the NPP or theVVER-TOI will offer more efficient power generation and fuel usage; size of the Russian loan but noted that it would not cover the costs ofincreased reactor thermal power with increased electrical capacity the necessary housing.(gross) up to 1,250-1,300MWe; improved core design to increase cool- He also refused to say when the loan agreement was likelying reliability; and further development of passive safety systems. to be signed but said it was at “a high degree of readiness”, and It will have a 60-year design life. Its IT platforms will allow for con- would be submitted to the governments of Belarus and Russiatinuous improvement of the core VVER design, while a new supplier after expert consultationsrelationship management system will optimise procurement costs. According to the Strategy for the Development of the Energy Poten- The terms of reference document for the VVER-TOI design were ap- tial of the Republic of Belarus for the period to the end of 2020, a totalproved in July after a coordination process that involved all project par- of $9,334m is to be spent on building the NPP between 2011 and 2020,ticipants and potential customers, explained Rosatom Deputy Director $3bn between 2011 and 2015, and $6,334m between 2016 and 2020.General And Director of Project Engineering Alexander Polushkin. Aleksey Kudrin, who was then the Russian Finance Minister, said In addition to the major customer, nuclear utility Rosenergoatom, in May that the loan was expected to exceed $7bn. Glukhov said thethe project involved two co-customers: construction company Atom- loan agreement might be signed “in 2011 or early 2012.”stroyexport and Rosenergoatom’s Capital Projects Department. At present, the document is “at the concurrence stage”, he added, Polushkin said the design work involves interaction of contrac- noting that Vnesheconombank would act as the operator-bank fortors for all constituents of the project operating within a common the agreement on the Russian side.information space, contractors for reactor installation, turbine, civil Armenian NPPconstruction, ventilation, metal structures etc. “For instance, we are working jointly and in parallel with theIzhorskiye Zavody and Petrozavodskmash on the reactor installa-tion,” Polushkin noted. Both works are ready to start making the settles pay disputereactor in a year, but suppliers will be selected through bidding. DOzENS OF EMPLOYEES of Armenia’s nuclear power plant (NPP) atbelarus and Russia Metsamor, who resigned over a pay dispute with the plant, agreed in late October to return to work after accepting a 10% raise offered bysign NPP contract the government, Energy Minister Armen Movsysian announced. More than 150 plant employees resigned after demanding the plant administration raise their wages by 50%, citing the dangerousAFTER YEARS OF wrangling, the head of the Belarus Nuclear Power character of their work and the increased cost of living.Plant Construction Directorate, Mikhail Filimonov, and Alexander In a short statement, the Ministry said the average wage of the4 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • General Development450 workers would be increased by 10%. Employee representatives (NPP) project and “hopes for a fair verdict regarding the claims”, Ro-said they accepted the offer, although it satisfied no one. Metsamor satom Director General Sergei Kirienko told journalists in Moscow.NPP, closed for repairs and refuelling since early September, re- In July, Russian construction company Atomstroyexport (ASE)started on 28 October after some delays. Vahram Petrosian, head of laid a claim with the International Court of Arbitration seeking re-the Hayatom state-run nuclear energy research institute, attributed covery of €58m ($80m) for delayed payments from Bulgarian powerthe delays to the mass resignations. utility NEK, which, in turn put in a counter-claim for €61m. The employees, including senior nuclear engineers, had asked Kirienko said the construction project was underway and RussianMetsamor Director Gagik Markosian to increase their wages 50% or companies were continuing to make equipment ordered earlier. “How-terminate their employment contracts. Under Armenia’s Labour Code, ever, the work that has been done and accepted must be paid for,” heworkers are considered to have been automatically relieved of their du- said, adding that Russia had allowed Bulgaria to defer its decision onties if their written quit requests are not granted or rejected for 30 days. Belene a number of times, but that the due date had now expired. In the case of Metsamor, the legal deadline expired just before the He said the Russian and Bulgarian state authorities should notfinal agreement. However, under Armenian nuclear safety regulations, interfere with disputes between the economic entities. “We trustsome workers had remained at the plant until replacements were found. the European legal procedures and believe a fair verdict will be Metsamor employs more than 1,700 people, including the brought in,” he said.450 working at the NPP’s only operating reactor. They earn Earlier in October, ASE warned it may double its claim againstAMD145,000-443,000 ($390-1,200) a month. The average monthly NEK, but Bulgarian officials say they have had no formal notificationwage of workers demanding better pay stands at AMD277,500, about of this. “NEK already owes us more than €130m for activities on thetwice the nationwide pay average, according to plant officials. two reactors … but we are yet to decide whether to increase the claim in court,” ASE President Alexander Glukhov announced at the forumA key energy supplier Atomex Europe 2011 in Prague.Metsamor is the only NPP in the South Caucasus, and supplies 40% However, Russia has agreed to extend the negotiations over Be-of Armenia’s electricity. It was closed following a 1988 earthquake lene again, this time until the end of March 2012. The new, four-but blockades by Turkey and Azerbaijan led to severe energy short- teenth, annex to the original agreement will allow them to take intoages and the government to decide to reopen the plant in 1993. account the results from the stress tests and the expected develop- One of its two VVER 440-V230 light-water reactors (unit 2) was ments on the electricity market.recommissioned in 1995. Since 2003, Inter RAO UES, owned by Rus- Bulgaria and Russia are unable to agree on the price for the con-sian state nuclear corporation Rosatom, has managed Metsamor’s struction of the 2,000MWe Belene NPP, with Russia seeking €6.3bnfinancial flows. The agreement expires in 2013. and the Bulgarian government offering only €5bn. In 2010 Russia and Armenia signed a nuclear energy cooperation British bank HSBC, consultant on the Belene project, has startedagreement under which Russia assumed responsibility for 20% of all working on an assignment for attracting financing by Russia’s Ro-expenses. The Armenian government will cover another 20% and satom, the Bulgarian Energy Holding (BEH) announced.the rest is supposed to come from investors Russia has several times offered to finance part of the project but Armenia plans build a new NPP to replace the ageing facility Bulgaria has so far refused the offers. HSBC is expected to come upwhich will have twice the capacity of the present plant. However, with clear parameters for financing the project by the end of Marchthe government has yet to attract funding for the project that was 2012, research the market, approach potential strategic investorsestimated by a US-funded feasibility study to cost around $5bn. and launch negotiations. Aremnia has been under continuous pressure from the European Russia is ready to finance the construction of the nuclear powerUnion (EU) to close the nuclear plant but has refused to do so until plant at Belene in full, although Sofia will have a controlling stakereplacement capacity is in place. The EU has forced closure of similar in the project. Rosatom head Sergey Kiriyenko, told journalists atplants in Bulgaria leading to significant power problems for the region. Atomex Europe-2011 in Prague that Russia was willing to finance Stress-tests will be conducted at Metsamor NPP in April, 2012. all of the project.Experts of the European Union and the Council of Europe will be He said this was possible partly because “some of the groundworkinvolved in the third phase of the tests. has already been done - equipment for the plant has been practically Construction of a new reactor for Armenia is a priority interna- assembled, so the plant can be built quickly.tional project for Rosatom, said Deputy Director Nikolay Spassky, “In addition, the equipment has been bought at old prices, whichwho was helped to prepare an intergovernmental agreement signed makes the construction work cheaper.”last year on construction of the new reactor. He said Rosatom was South Africa considersready to participate not only in construction, but in financing andoperation of the plant. NPP tenderbelene financingstill unresolved SOUTH AFRICAN ENERGY Minister Dipuo Peters has confirmed that the Cabinet is reviewing a tender proposal for construc- tion of 9,600MWe of nuclear power by 2030 that could be worthRUSSIA IS ACCEPTING the court proceedings now in train to settle the ZAR1,000bn ($129.6bn). However, Department of Energy Directorfinancial disputes with Bulgaria over the Belene nuclear power plant General Nelisiwe Magubane has said the NPP programme would costmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 5
    • General DevelopmentZAR400bn, not ZAR1,000bn. lence. Under the agreement, the two parties will work on improving If approved, this would be the largest public tender South Africa, operating performance and on optimising maintenance of exist-the largest economy in Africa, has ever issued. The government has ing reactors. A working group will be created to explore the scopenot released details on how cash-strapped state-owned utility Eskom and modalities of the collaboration, which will encompass lessonswould raise money to pay for the plants. learned from Japan’s Fukushima accident and measures for optimis- South Africa, which produces 85% of its power from coal-fired ing CNNC’s NPPs.plants, has a rapidly rising energy demand, largely from its platinumand gold producers. Eskom operates Africa’s only nuclear power plant EUROPE/FRANCE/CzECH Republic: France’s AREVA is “not at all(NPP) at Koeberg. concerned” about the outcome of stress tests on Europe’s NPPs, Reuters quotes Peters as saying that the government has not yet done according to Ruben Lazo, AREVA Chief Commercial Officer. Japan’sthe full calculation, and would only be sure of the total cost at the time Fukushima disaster would not stop construction of new reactorsit places the bid. The bid process is expected to begin in early 2012. in Europe, he said after a bidders meeting in Prague on technical Speaking on the sidelines of an International Energy Agency specifications for two planned reactors at CEZ’s Temelin station.meeting in Paris, Peters said a key factor would be the impact Also present at the meeting were rival bidders Toshiba Westinghouseof nuclear expansion on consumers. Industries and residences and a Russian-Czech group led by ZAO Atomstroyexport. “We are allhave already seen steep tariff increases to help Eskom pay for waiting for the stress tests, but we are completely calm,” Lazo said,new plants. A 2008 tender for a new NPP was scrapped because of and added that Fukushima had not stopped many countries from go-Eskom’s financial difficulties. ing ahead with their newbuild plans. He said that, while the Temelin If a tender is issued, bidders are expected to include France’s tender was “very strategically important” for AREVA, it also wasAREVA and Electricite de France (EDF); Japan’s Toshiba subsidiary focusing its resources in China and India, where it is building twoWestinghouse; China Guangdong Nuclear Power Group; South Ko- and six EPR reactors respectively—and bidding for more.rea’s Korea Electric Power Corp (KEPCO) and Russian state nuclearcorporation Rosatom. FINLAND: Fortum will participate in financing the bidding and en- gineering phase of the proposed fourth unit at Teollisuuden VoimaGeneral briefs Oyj’s (TVO’s), Olkiluoto NPP (OL-4). Fortum owns a 26% stake in TVO, a non-profit company that delivers electricity to its sharehold- ers at cost price. TVO shareholders will make the final decision onAUSTRALIA/RUSSIA: An Australian delegation has for the first time beginning bidding on the new unit. The government received threevisited Russia’s Mashinostroitelny Zavod (MSZ) nuclear fuel plant, separate proposals for construction of new power reactors. Parlia-part of Fuel Company TVEL. The visit came under the Russian-Aus- ment issued a decision in principle in July 2010 for constructiontralian working group on the peaceful uses of atomic energy. The of OL-4 and a new NPP in the north of the country proposed byAustralian delegation included representatives of the Australian Fennovoima. However, Fortum was denied a decision in principleSafeguards and Nonproliferation Office (ASNO), the Department of for the construction of a third reactor at its Loviisa NPP in southeastResources, Energy and Tourism, and the Australian Embassy to Rus- Finland. Under terms of the OL-4 decision, TVO must apply for asia. The delegation was shown fabrication of fuel pellets, charging construction licence by June 2015.of fuel rods and bundling of fuel assemblies. TVEL officials said thevisit represented a “new page” of cooperation between state nuclear IAEA: The IAEA said that construction of new NPPs would increasecorporation Rosatom and Australia. ANSO and Rosatom signed an steadily in the coming decades despite Japan’s nuclear accident atagreement in June which named Russian facilities where it would Fukushima Daiichi. However, IAEA Director General Yukiya Amanobe possible to process, use and store Australian uranium or convert told the UN General Assembly in New York that new plants wouldand/or enrich it. Russia could buy up to 4,000t/yr of natural uranium be built less rapidly than expected, but the factors contributing tofrom Australia. increased interest in nuclear power have not changed. These include increased global energy demand, concerns about climate change,AzERbAIJAN/IAEA: The International Atomic Energy Agency (IAEA) volatile fossil fuel prices and security of energy supply. IAEA alsohas agreed to perform five new projects together with Azerbaijan, sees an expanded role in nuclear safety worldwide. Amano said theaccording to the director of the Radiation Problems Institute of new IAEA global action plan for nuclear safety must be fully imple-Azerbaijan National Academy of Sciences (ANAS), Adil Garibov. The mented in all countries with NPPs so lessons could be learned fromprojects will be carried out between 2012-2014, and Azerbaijan must the Fukushima disaster. The IAEA General Conference endorsed thepay 5% of the costs. The projects were developed by the Radiation 12-point IAEA Action Plan on Nuclear Safety in September.Problems Institute, National Cancer Centre, State Committee onStandardisation, Metrology and Patents, the Emergency Situations IEA: An International Energy Agency (IEA) ministerial meeting inMinistry and the ministry’s Isotope Centre, Garibov said. One proj- Paris heard forecasts that energy demand would grow by one third byect involves creation of a dosimetry laboratory for steriliser installa- 2035 and would require a global investment of $40,000bn. Invest-tion in Azerbaijan by 2014. ments to meet energy supply infrastructure needs, most of which will come from the private sector, will be one of the major challeng-CHINA/FRANCE: China National Nuclear Corporation (CNNC) and es. IEA predicted that two-thirds of the investment needed by 2035France’s AREVA have signed a memorandum of understanding to will be in emerging economies. The ministers agreed on the need tostrengthen collaboration in nuclear safety and operational excel- promote supply diversity by development of natural resources, new6 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • General Developmenttransit routes, renewable energy and low carbon energy technolo- tion of nuclear weapons. Kyrgyzstan ratified the nuclear non-prolif-gies, including nuclear energy. Meeting Chairman Martin Ferguson, eration treaty in July 1994. Economic Regulation Minister Uchkun-Australia’s Energy Minister, said that reducing the role of nuclear en- bek Tashbayev said the Additional Protocol would raise Kyrgyzstan’sergy, which currently provides 14% of the world’s electricity, would status as a nuclear-free state and show the stability of its non-pro-be likely to increase dependence on coal and gas. The meeting drew liferation policy. So far, 132 countries have signed the Additionalministers and delegates from 37 countries, representing more than Protocol, and it is in force in 101 countries, including Kazakhstan,75% of world energy consumption. Russia, Tajikistan, Uzbekistan, Ukraine and Belarus.INDIA/IAEA: The Comptroller and Auditor General of India (CAG) has KYRGYzSTAN/KAzAKHSTAN: Kyrgyz member of parliament Raykanbeen appointed external auditor of the IAEA in Vienna as well as to the Tologonov said that coal imported from Kazakhstan for the Bish-United Nations (UN) World Intellectual Property Organisation (WIPO) kek heat and power plant was “highly radioactive”. Tologonov saidin Geneva. This is the first time an audit organisation from outside Emergency Ministry’s experts have visited the Bishkek plant andEurope has been appointed to either position. India’s Finance Ministry confirmed that 8,000t of coal from Kazakhstan’s Kulan coal minesaid the appointments recognised the professional capabilities of CAG’s contained seven to eight times normal radiation levels. She also saidauditing talent pool. The audits could extend up to six years, he said. the coal was of poor quality. Experts from the sanitary and epidemio-In the past, CAG has been appointed to the UN board of auditors and logical department of the Kyrgyz Health Ministry in charge of moni-as external auditor to a number of other major UN agencies like the toring radioactivity have said that it is too early to arrive at a specificFood and Agricultural Organisation (FAO), the World Health Organisa- conclusion. Some members of parliament have called for bringingtion (WHO), the International Maritime Organisation (IMO) and the criminal action against those who brought the coal to Bishkek, andOrganisation for Prohibition of Chemical Weapons (OPCW). others have proposed setting up a parliamentary commission to probe the incident.INDONESIA: The head of Indonesia’s National Nuclear Energy Agency(Batan) said Indonesia’s first NPP in the Tanjung Ular Muntok Cape LITHUANIA: The government has formally notified the Europeanregion, West Bangka, would be delayed due to concerns raised by Commission (EC) of its plans to build a new NPP at Visaginas withJapan’s Fukushima Daiichi accident. Hudi Hastowo said experts had Estonia, Latvia and Poland. Lithuania’s Energy Minister Arvydasraised concerns because the proposed NPP is located in a seismically Sekmokas said the 1,350MWe boiling water reactor would beginactive region. Of particular concern was the possibility that a repeat commercial operations around 2020. The Visaginas plant will helpof the 2004 tsunami that devastated Indonesia could lead to a di- replace generation from the two 1,300MWe units at Ignalina shutsaster similar to Fukushima. Indonesia currently has three research down under Lithuania’s European Union membership agreement.reactors: Kartini, Siwabessy and the Triga Mark II nuclear research In May 2010 ministers from Lithuania, Estonia, Latvia and Polandfacility. The country also has two uranium mines: Remaja-Hitam and signed a joint communiqué in Brussels stating their intention toRirang-Tanah Merah in western Kalimantan and Borneo. work together on Visaginas and to explore financing models. An environmental impact assessment and site suitability evaluationJAPAN/FRANCE: Japanese Prime Minister Yoshihiko Noda and French have already been completed. The government selected GE-HitachiPrime Minister Francois Fillon have agreed to cooperate on nuclear as technology provider in July 2011. Under the Euratom Treaty,safety and confirmed further cooperation on cleaning up radioactive member states must inform the EC of newbuild plans within threematerials after emergencies. They agreed to study the possibility of months of signing supplier contracts.establishing an international emergency response team that wouldbe dispatched to deal with nuclear accidents, and to form a commit- MExICO: Ambitious nuclear newbuild plans have been abandoned intee to strengthen bilateral nuclear energy cooperation. favour of using newly discovered natural gas reserves. Mexico had planned to build 10 new NPPs by 2028, but the discovery of “trillionsKAzAKHSTAN: Sergey Yashin, deputy head of national nuclear com- of cubic feet” of gas has changed the decision, said Energy Ministerpany Kazatomprom told the 6th Eurasian Kazenergy Forum in Astana Jordy Herrera. Mexico now will seek about $10bn over five years tothat a NPP could be built within 10 years and preliminary work had expand its natural gas pipeline, he said. Petroleos Mexicanos dis-already started. In the near future, he said, Kazakhstan must identify covered new gas deposits in the Gulf of Mexico and shale gas in thethe role of nuclear power in the energy mix; determine possible NPP border state of Coahuila. Mexico had been considering using nuclearsites; chose a technology based on safety considerations; and settle a power as the major component of plans to boost capacity by 75% to“vast number” of other issues, including personnel training, develop- 86GWe within 15 years, up from about 50GWe. Herrera said thement of operating standards, and the role Kazakh companies will play Energy Ministry plans to update Mexico’s long-term strategic plan byin construction of the plants. The government first expressed interest the first quarter of 2012. “Until we find a model to make renewablein building an NPP near Lake Balkhash in 1998 when it expected to energy more profitable, gas is more convenient,” he said.have the first unit operating by 2005 and the plant completed by 2015.The proposed location for the NPP was later changed to Aktau, near the POLAND/FRANCE: French company AREVA said it would form a con-decommissioned fast breeder reactor BN-350.. Earlier, Yashin had said sortium to bid on construction of Poland’s first NPP, with consortiumthe Aktau NPP would begin operating in 2016. partners to be selected by January 2012. Electricite de France (EDF) is likely to be a key member of the team, according to Adam Roz-KYRGYzSTAN: Parliament has ratified an Additional Protocol to an wadowski, CEO of AREVA Polska. Poland expects to issue the tenderagreement between Kyrgyzstan and the IAEA on the non-prolifera- for its first NPP by the end of the year. Poland plans to build twomccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 7
    • General Development3,000MWe NPPs, with the first to go into operation by 2020. of radioactive material by road and rail in Great Britain. They also ad- vise on its transport by and sea and air within the UK, including trans-RUSSIA/CHINA: The Volgodonsk Branch of Russia’s National Research port to and from licenced nuclear sites and non-nuclear sectors such asNuclear University Moscow Engineering Physics Institute (NRNU hospitals and education establishments. The move follows legislativeMEPHI) and China’s Changchun University of Science and Technol- changes allowing for the transfer of competent authority powers fromogy have signed a cooperation agreement on training specialists for the Secretary of State for Transport to the Secretary of Sate for Energythe nuclear industries of both countries. Signing came during a visit and Climate Change. RMTT’s transfer also marks another milestoneto Volgodonsk. A Chinese delegation observed a training simulation in ONR’s transformation into a single, integrated regulator.of an accident based on Japan’s Fukushima Daiichi disaster. The par-ties agreed to develop joint staff training programmes, conduct joint UK: Public exposure from authorised radioactive discharges andresearch aimed at enhancing training of specialists, organise student direct radiation around the 39 UK nuclear sites has remained withininternships, and exchange lecturers and students. legal limits and radioactivity in food is “well within safe levels”, according to a report on Radioactivity in Food and the EnvironmentRUSSIA/CHINA: Russia intends to increase nuclear cooperation with (RIFE) 2010. RIFE 2010 is the ninth joint annual report combiningChina based on the latest technology, Russian Prime Minister the results of the radiological monitoring programmes of the FoodVladimir Putin said. “Drawing upon the successful experience of Standards Agency, the Environment Agency, the Scottish Environ-the construction of the Tianwan nuclear power plant, we are going ment Protection Agency and the Northern Ireland Environmentto develop closer cooperation in nuclear energy, and it will be based Agency. RIFE 2010 found that public radiation doses from all sourceson the world’s very latest technology, and take possible risks into at UK nuclear facilities were less than 5% of the European Unionaccount - we are going to virtually reduce these risks to zero,” Putin (EU) and UK dose limit of 1mSv/year for members of the public.said in October, following talks with Chinese Premier Wen Jiabao.He Discharges, environmental concentrations and dose rates in 2010added that China and Russia would use the yuan and the rouble more were broadly similar to those in 2009, although concentrations ofwidely in trade transactions and in mutual investment as “insurance radiocaesium and transuranic elements were increased around someagainst many of today’s risks”. An agreement on construction of a sites, mainly due to discharges from Sellafield in Cumbria.SellafieldRussia-designed fast neutron reactor BN-800 in China may be signed doses were 0.18 mSv, mainly due to permitted discharges.in 2012, according to state nuclear corporation Rosatom head SergeiKirienko. A work commencement protocol to build the fast neutron UK: A report from the UK Royal Society says the increasing use ofreactor in China was signed in October 2009, Kirienko noted, but nuclear power worldwide must be accompanied by a greater focusthe contract cannot be implemented until an inter-governmental on security and waste management. Noting the disaster at Japan’sagreement is in place, which is now being drafted. Fukushima Daiichi nuclear power plant, the report, Fuel Cycle Stew- ardship in a Nuclear Renaissance (available at www.royalsociety.RUSSIA/NEA: has joined the Nuclear Energy Agency (NEA) of org) called for establishment of a World Nuclear Forum. This wouldthe Organisation for Economic Cooperation and Development enable business leaders and governments to explore nuclear power(OECD). The Foreign Ministry, nuclear regulator Rostechnadzor development and related non-proliferation and nuclear security re-and state nuclear corporation Rosatom will represent Russia in sponsibilities. The report suggests that the forum could be proposedNEA, a specialised agency within the OECD, that helps members to at a 2012 Nuclear Security Summit in South Korea. The report looksmaintain and develop the scientific, technological and legal bases at ways of making the nuclear fuel cycle more secure and prolifera-required for the safe, environmentally friendly and economical use tion resistant. The report says UK plans for a new generation of NPPsof nuclear power through international co-operation. Membership are “short-sighted”, and urges the government to avoid burdeningincludes 30 industrialised countries from Europe, North America future generations with a legacy of spent fuel. It called for construc-and the Asia-Pacific region. tion of a new mixed oxide (mox) fuel plant. The UK’s only mox plant, at Sellafield, closed in August.TAIwAN/CHINA: Mainland China and Taiwan signed an agreement oncross-strait cooperation on nuclear power safety. The agreement calls US: In the wake of an August 5.8 magnitude earthquake, Domin-for the two sides to cooperate and hold technical exchanges on safety ion Virginia Power has said that it will launch a new study of how aregulations and standards, analysis and evaluation of experiences, ba- proposed new build NPP at its North Anna site would handle a largesic NPP information, management of ageing NPPs, emergency report- earthquake. The company is considering building a third unit ating, radiation monitoring near NPPs, and information transparency. North Anna. Dominion officials say the new study is needed for twoBoth parties will organise their own nuclear power safety work teams reasons: federal regulators will want all proposed new reactors toand launch their first meeting within two months to discuss informa- consider new seismic standards being developed for existing nucleartion sharing and exchange programmes. Analysts expect the agree- units, and the ground vibrations during the mid August quakement to boost cross-strait cooperation on nuclear safety monitoring exceeded standards in the site permit and licencing applications forand to pave the way for a joint information reporting system. North Anna-3. Plant officials said they did not expect the new study would affect the Nuclear Regulatory Commission’s schedule to actUK: The Office for Nuclear Regulation (ONR) has added a new team on the North Anna-3 licence application.with regulatory responsibility for the transportation of radioactivematerial. Formerly part of the Department for Transport (DfT), the US: Mayors of two Florida cities, South Miami and Pinecrest, are lead-Radioactive Materials Transport Team (RMTT) regulates the transport ing a campaign to repeal the state law that allows utilities to charge8 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • General Development > Newbuildcustomers for planned nuclear power plants (NPPs) before the plants unscheduled extraordinary session of the Main Governing Board de-are built or in operation. South Miami Mayor Philip Stoddard and cided to set up a committee to study lessons from Japan’s FukushimaPinecrest Mayor Cindy Lerner urged repeal of the law, and opposed accident and to work out recommendations for reforming WANO.$337m in nuclear fees proposed for 2012. The state Public Service The committee produced five recommendations. These called forCommission will consider the proposal. Florida Power & Light Co broadening WANO programmes in emergency response; implemen-seeks $196m and Progress Energy Florida wants $141m. Stoddard con- tation of a global modern strategy of general corporate response totends consumers are being charged for unproven nuclear designs that events in the nuclear industry; enhancement of peer review results;will double the price of electricity. Biscayne Park and the Miami-Dade winning public confidence through greater openness; and enhance-League of Cities also have passed resolutions opposing the fees. ment of self-improvement.US: Nuclear power is the most important form of clean energy, NEwbUILDformer US Environmental Protection Agency Administrator ChristieTodd Whitman told the Governor’s Conference on Energy in Rich-mond, Virginia. She said the nuclear industry was “extremely safe” Finland’s EPR mayand Americans would need clean, cost-effective energy sources.Whitman, a former governor of the state of New Jersey, served as face more delaysEPA administrator from 2001 until 2003 under former US President FINNISH PLANT OPERATOR Teollisuuden Voima Oyj (TVO) has saidGeorge W Bush. She currently co-chairs the Clean and Safe Energy commercial operation of Olkiluoto-3 in Finland could be delayed a yearCoalition, which promotes the use of nuclear energy. until 2014. TVO said in a statement that construction of the European pressurised water reactor (EPR) unit has proceeded “in several areas”,US: The governor of New York State and the mayor of New York City are but based on the latest progress information submitted by plant suppli-at loggerheads over the fate of the Indian Point NPP about 55km from er AREVA-Siemens, regular operation “may be postponed until 2014”.downtown Manhattan. Governor Andrew Cuomo, a former state attor- TVO said AREVA-Siemens is responsible for the schedule and thatney general, wants to close the ageing plant, which has applied for a 20- TVO has asked the supplier for an analysis of the anticipated date foryear licence extension. He says the safety risks are not worth the power the start of regular operation.benefits. He notes that more than 20m people live within 80km of the The main civil construction at the site is complete, primary com-NPP, which would make evacuation impossible in the event of a Fuku- ponent installations are close to completion, TVO said. However,shima-type accident. New York Mayor Michael Bloomberg, however, TVO’s statement said AREVA-Siemens has noted a further delaysays closing the plant would result in “enormous blackouts”, since the in development of the instrumentation and control (I&C) system,plant accounts for about 25% of the area’s electricity. Meanwhile, plant which has become critical for the time schedule.owner Entergy has hired former New York Mayor Rudy Giuliani as a Reactor plant piping and electrical installation works also havepaid celebrity spokesman. In a series of television commercials Giuliani taken longer than expected, and the accumulated delays will impactsays Entergy has spent $1bn on safety and equipment enhancements at the start of commissioning, TVO said. In December 2010 AREVA de-Indian Point to ensure the plant can operate safely. nied rumours in the French media that Olkiluoto-3 was experiencing delays. At that time, AREVA said it was it was keeping to the scheduleUS: The Nuclear Regulatory Commission (NRC) has certified an announced in June 2010: the unit would be connected to the grid inamended version of the Advanced Boiling Water Reactor (ABWR) de- 2013, following completion of construction and fuel loading in 2012.sign, clearing the way for it to be referenced in a construction and op-erating licence (COL) application for the South Texas Project (STP), Oursel “surprised”and for other US sites. GE and Toshiba partnered on the ABWR de- Following TVO’s latest statement, AREVA CEO Luc Oursel told thesign, which they built jointly in Japan in cooperation with Hitachi. In European press that he was surprised by the predicted changes. He1997, NRC certified the design, which included certain proprietary said that under the current schedule, fuel would be loaded as plannedengineering belonging to the merged GE-Hitachi Nuclear business. in late 2012. Olkiluoto-3 is the first AREVA EPR to be built. The 2005Toshiba developed its own variant on the certified ABWR design for construction start was followed by several delays resulting fromconstruction at STP-3 and -4. The Toshiba ABWR design was submit- problems with concrete and plant components.ted to NRC in June 2009, and thus had to meet new aircraft impact The AREVA-Siemens consortium said it was working with TVO torules that NRC had issued in March 2009. NRC approved the design have a consolidated schedule for the remaining tasks at Olkiluoto-certification in October. STP Nuclear Operating Company (STPNOC) 3 by the end of the year. The consolidated schedule would give theand then partner NRG applied for a COL for two new units at STP partners “a clear, detailed view”, of the tasks that still need to bein 2007, and in 2008 selected the ABWR and chose Toshiba as lead performed to commission the reactor, the consortium statementcontractor. STP-3 and -4 would be the first US ABWRs. said. AREVA-Siemens said the project is 80% complete, including finalisation of civil engineering work, completion of the outer domewANO: The World Association of Nuclear Operators (WANO) General and the full installation of the four primary cooling systems.Assembly in October elected Vladimir Asmolov, First Deputy Direc-tor General of Russian nuclear utility Rosenergoatom, as President Flamanville-3 welding resumesfor another two-year period. Yevgeny Romanov, Director General The EPR under construction at France’s Flamanvilled NPP has also beenof the utility, was elected to WANO’s Main Governing Board. The facing some problems, but work is now resuming. France’s nuclear regu-2011 General Assembly focused on reforming WANO. In March, an lator, Autorite de Surete Nucleaire (ASN), has approved AREVA’s requestmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 9
    • Newbuildto restart vessel head welding operations on the Flamanville-3 unit. reactor is connected to the grid in 2012, it will become China’s 15th Work was interrupted after quality control inspections found operating power reactor.“discrepancies” in the welds, said an AREVA statement, which also Qinshan II already hosts three operating CNP-600s, an indig-said the client, Electricite de France (EDF), had been informed of the enous Chinese reactor design. Units 1 and 2 began operating inproblem. AREVA said it had developed technical solutions for restor- 2002 and 2004, respectively. Unit 3 entered commercial operationing compliance in accordance with ASN safety standards. in October 2010. Future operations at Flamanville-3 will be subject to increased Qinshan phase 1 saw construction the first indigenously de-oversight by both AREVA and ASN. Flamanville-3, the first new signed Chinese reactor, a 300MWe PWR start in 1985. Phase 3 con-nuclear power plant in France in 15 years, is scheduled to begin com- sists of two 750MWe pressurised heavy water reactors (PHWRs)mercial operation in 2016. supplied by Atomic Energy of Canada Ltd (AECL) and commis- sioned in 2002 and 2003.New projects move China signsforward in China Tianwan II contractCHINA HAS SUCCESSFULLY completed cold tests of the nuclear islandof Hongyanhe-1, located in the Liaoning province in northeast China. TwO CHINA NATIONAL Nuclear Corporation (CNNC) subsidiar- Cold testing is conducted after the completion of construction ies have signed the engineering, procurement and constructionand equipment installation. It involves checking the nuclear island (EPC) contract for the second phase of the Tianwan nuclear powermain equipment and systems to verify the integrity of nuclear safety plant (NPP). Jiangsu Nuclear Power Corporation (JNPC) and Chinasystems. Further tests will be conducted to check the operation of Nuclear Power Engineering Company (CNPE) signed the contractequipment and instrumentation under normal working conditions, for design and supply of the non-nuclear components and equip-prior to commissioning the reactor. ment in mid October. Hongyanhe-1 is the first of four indigenous CPR1000 units that Tianwan Phase II, units 3 and 4, like Tianwan Phase I, will com-are being built at the site. Construction began in August 2007. prise two Russian-designed 1,060MWe VVER-1000 pressurised wa- Liaoning Hongyanhe Nuclear Power Co (HNPC) will own and ter reactors. Russia’s Atomstroyexport (ASE) will supply the nuclearoperate the nuclear power plant (NPP). HNPC is a joint venture islands for the new units.between China Guangdong Nuclear Power Corporation (CGNPC) China has not disclosed a planned construction start date. Inand China Power Investment Corporation (CPIC), with each hold- response to the Fukushima Daiichi accident in Japan, the Chineseing a 45% stake. Dalian Construction Investment Group holds the government said that it would not issue permits for new reac-remaining 10%. Hongyanhe-1 is scheduled to begin commercial tors until a new national nuclear safety regime had been phasedoperation by the end of 2012. in, expected by the end of 2011. Plant approvals are expected to restart in 2012.Dome placed on first EPR China signed the preliminary agreement with ASE in OctoberThe reactor building dome has been lowered into place on the 2006 for construction of Tianwan II at Lianyungang city in China’sfirst European Pressurised Reactor (EPR) unit under construction Jiangsu province. Construction originally was planned to start whenat the Taishan NPP in Guangdong province, said China Nuclear the first two units were commissioned, however this has been de-Engineering and Construction Corporation (CNECC), which is layed by several years. A general contract, agreed in November 2010,building the plant. came into force after the June 2011 signing of a final agreement that The dome has a circumference of 147 metres and weighs 270t. A defined commercial terms and payment details.crane lifted the dome 70 metres above the ground, then lowered itonto the 44 metre high reactor building. CNECC said it was the larg- China wants to speed up workest reactor-building dome to be lifted in the world. ASE is now discussing a possibility of accelerating work on Tianwan Taishan-1 and -2 are China’s first two reactors based on AREVA’s II, says ASE President Alexander Glukhov. He adds that China wantsEPR design. They are part of €8bn contract signed by AREVA and to shift first concrete, which was planned for the end of 2012, to thethe Guangdong Nuclear Power Group (CGNPC) in November 2007. beginning of 2012 and has already allocated funds for this. However,Taishan, 140km from Hong Kong, is owned by the Guangdong ASE says this will not be possible. “If this issue had been raised atTaishan Nuclear Power Joint Venture Company, a joint venture least eight months ago, we would have reconfigured and, perhaps,between France’s Electricite de France (EDF) with a 30% stake and could have managed this,” Glukhov says noting negotiations wereCGNPC with a 70% stake. continuing and that “some acceleration” might be agreed such as moving first concrete to mid-2012.Qinshan II-4 fuel loading complete Because the region is in urgent need of electrical power, construc-China National Nuclear Corporation (CNNC) has completed fuel tion of Tianwan III, units 5 and 6, could begin before constructionloading on the fourth reactor of phase 2 of the Qinshan NPP in starts on Phase II. CNPE and JNPC signed an EPC contract for PhaseZhejiang province. Fuel loading on the CNP-600 design pressurised III in February, with CNPE acting as the project contractor. Unitswater reactor (PWR) lasted approximately 45 hours. The next stage 5 and 6 could be either Russian-supplied VVER-1200 reactors or Chi-in commissioning Qinshan II-4 will be the first criticality. When the nese-designed CPR-1000 units.30 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • NewbuildUS watts bar- compliance, project oversight and readiness. It had also experienced issues with site preparation work and pre-construction costs, butrevises management did not provide details. Georgia Power said it was closely monitoring manufacturing and vendor issues. Many analysts view Vogtle as aTENNESSEE VALLEY AUTHORITY (TVA) in mid October said it was test of whether the US nuclear industry can build new reactors onrevising management of the effort to complete the partially built time and on budget. President Barack Obama’s administration hasWatts Bar-2 nuclear power plant (NPP) in Tennessee. Changes pledged $8.33bn in federal loan guarantees to finance the plant.included revised agreements with major contractors and the layoff Environmental group, the Southern Alliance for Clean Energyof 800 contract workers, including some 600 craft workers and 200 (SACE), said in mid October that it would return to court in efforts tosupport staff, most ly with contractors Bechtel Power Corporation compel the Department of Energy (DOE) to reveal additional detailsor Day & Zimmerman. Watts Bar Unit 2 Vice President Dave Stinson about the loan guarantee.said TVA was also changing its contract with Bechtel to improve The group’s attorney Mindy Goldstein said SACE wanted to knowwork performance. Mike Skaggs, TVA Senior Vice President for the terms and conditions of the loan guarantees, and the creditnuclear generation, development and construction, said the pace of subsidy fee estimate (the amount the power companies have to putconstruction had been slower than originally planned for the aggres- down to get the loan guarantees). SACE filed a federal Freedom of In-sive five-year project. formation Act request for details on the loan guarantees in 2010, but Bechtel’s original contract included engineering, procurement, says it received only heavily redacted documents that did not includeand construction. TVA will now be taking greater responsibility for the desired information. DOE and Southern Company say some ofoverall management and is leading the project controls and project the information the group seeks is proprietary.management leaving Bechtel and other contractors responsible for Georgia Power owns a 45.7% stake in Vogtle, Oglethorpe Powersome technical aspects. Skaggs said TVA was conducting a detailed Corporation 30%, Municipal Electric Authority of Georgia 22.7%, andschedule and cost review to optimise resources.TVA decided to Dalton Utilities 1.6%. Plant owners want to use the loan guarantees tocomplete construction of 1,180MWe Watts Bar-2 in August 2007, build two additional reactor units at the Burke county site, which cur-following detailed studies of energy needs, schedule, costs, environ- rently hosts two pressurised water reactors. They hope to have Vogtle-mental impacts, and financial risks. The utility expects to complete 3 on line by 2016 and Vogtle-4 by 2017, at an estimated cost of $14.5bn.the $2.5bn Watts Bar-2 by 2013, making it the first new reactor to Russia’s baltic NPPstart up in the US since Watts Bar-1 began operating in 1996. In October, Texas-based Global Power Equipment Group an-nounced that Williams Plant Services, a division of Global’s WilliamsIndustrial Services Group, had won a $27m contract for indirect still seeking investorssupport services to TVA for the startup of Watts Bar-2. Williams willprovide support services to assist TVA in the final phase of comple- CONTRACTS ON INVESTING in construction of Russia’s Baltic nucleartion. The contract will run to the third quarter of 2012. power plant (NPP), being built in Kaliningrad, will be signed in mid 2012, according to Sergei Boyarkin, Director of engineering projectUS Vogtle newbuild management programmes at state nuclear corporation Rosatom. When the plant is completed in 2018, half of the electricity pro-under budget duced will be exported, mainly to Lithuania which now buys more than 1GWe of electricity from Russia. Poland and Germany are also expressing interest, he said. “We areATLANTA-bASED GEORGIA POwER said it was slightly under its approved negotiating with companies from these countries on both electricitybudget on the $14bn newbuild project for two Toshiba Westinghouse supplies and investing in the plant with participation in its equityAP1000 reactors at the Vogtle nuclear power plant (NPP) near Augusta. capital,” he noted. Georgia Power, a subsidiary of Southern Company, has applied for a “Participation in a project which costs several billion euros meansconstruction and operating licence (COL) from the Nuclear Regulatory serious investments even for a large company, therefore, the negotia-Commission (NRC). If approved, it would be the first US NPP to get a tions are taking a long time,” he explained. Rosatom hopes to obtainconstruction licence in more than 30 years. Southern Company says a construction licence for the plant before the end of November andNRC could issue COLs for the units either late this year or early in 2012. work will then start on unit 1 immediately. In its latest cost estimate in a semi-annual report to the Georgia However, outside investors are wary. Polish power company PolskaPublic Service Commission (GPSC), Georgia Power estimates its share Grupa Energetyczna (PGE) has rejected Russia’s offer to participateof the project at $18m less than the previously approved $6.1bn. GPSC in the construction and operation of the Baltic NPP. Rosatom andmust now decide whether to approve the company’s spending for the Inter RAO have spent months trying to persuade German firms andfirst half of 2011. Georgia regulators changed the way they monitor PGE to become co-shareholders in the plant.construction spending after Georgia Power experienced massive costs PGE CEO Tomasz Zadroga says PGE is only interested in buyingoverruns in building the first two Vogtle units. The utility originally electricity. “This is the only option that interests us,” he told Rzecz-estimated the NPP would cost $660m, but costs reached $9bn by the pospolita. For PGE, which is preparing its own nuclear project, theretime the reactors came on line in 1987 and 1989. is no economic justification for investing its capital abroad. In its report, Georgia Power said it had increased spending on It seems increasingly possible that Poland may also pull out of par-labour so it could give more attention to quality and regulatory ticipation in the NPP being built in Lithuania. Rzeczpospolita’s saysmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 31
    • Newbuild > Plant Operationsthe current talks with Russia on contracting energy supplies are at a the project. The FSS upgrades were funded from an investmentpreliminary stage, noting that at present there is no suitable energy programme worth more than RUB17bn ($547m).connection with Kaliningrad. PLANT OPERATIONSProgress continues at UK Oldbury NPP to closeRussian NPPs THE UK’S MAGNOx Ltd plans to shut down the Oldbury-1 nuclear power plant (NPP) in February, 10 months ahead of schedule. Mag-THE COOLING TOwER of unit 1 at Novovoronezh nuclear power plant nox Ltd said further operation of the 44-year old Magnox reactor wasphase two (NNPP-II) has reached an elevation of more than 100 no longer economically viable.metres, says chief architect and principal construction contractor The 217MWe reactor is the only one operating at the site. MagnoxAtomenergoproekt (AEP). Ltd said the decision to close the reactor early came after discussions At NNPP-II only one 171-metre cooling tower is being built to with the Nuclear Decommissioning Authority (NDA), which ownsserve two reactors to save capital costs, reduce in-house electricity the site, and the Office for Nuclear Regulation (ONR).consumption and land use, while observing all technology and safety The Oldbury reactor was one of the first generation of advancedrequirements, the company emphasises. gas-cooled, graphite moderated (AGR) reactors in the UK. Originally, Work is also underway to assemble the metal structures of the both units at Oldbury were scheduled to be closed at the end of 2008.dome which consists of two parts and weighs about 400t. In the However, NDA requested permission from the regulator to continueturbine hall the foundation is being built for the turbine. operating them to earn revenue to help pay for decommissioning. Petrozavodskmash, part of Atomenergomash, has produced the Unit 2 was shut in June, but unit 1 was expected to operate untilfirst of 16 passive core flooding systems (PCFS) for NNPP-II. The the end of 2012. Magnox noted that the extended operation beyondcompany is making eight for each reactor and the first batch of eight 2008 was worth an estimated £300m ($478m) to the British tax-will be produced before the end of this year. Petrozavodskmash has payer and saved 6mt of carbon from being released. Mark Lesinski,also manufactured and shipped off six of 16 pipe spools for the plant. NDA Executive Director for Delivery, said that the income from elec- AEP plans to halve the time needed to make and install reinforced tricity sales has provided an important contribution to the fundingbar blocks. This is one of two pilot projects being implemented under of NDA’s decommissioning programme.the Rosatom Production System programme aimed at improving effi- Current plans call for removal of fuel from both Oldbury units byciency within the nuclear industry (see Business). 2013. After most of the structures at Oldbury have been removed, The other pilot project is to halve the time needed for concreting the site will enter the ‘care and maintenance’ stage of decommis-of the inner containment at unit 2. This year the aim is to shorten sioning around 2027, after which the reactor is left to cool. Final sitethe period for making rebar blocks from 60 to 30 days; their instal- clearance activities are scheduled between 2092 and 2101. The twolation from 90 to 40 days, and tier concreting from 12 to 6 days. 490MWe reactors at the Wylfa site are the last two operating Mag-Construction of Novovoronezh II started in 2007. Unit 1 is due for nox reactors in the UK. Both will close at the end of 2012.commissioning in 2013 and unit 2 in 2015. Prospect trade union congratulated staff at Oldbury for a 44-year unblemished safety record. Prospect National Secretary Mike Gra-Construction restarts at Leningrad II ham said the union recognised that the decision to bring forward theThe Federal Environmental, Industrial and Nuclear Supervision closure date of the plant was made purely on financial grounds. HeService (Rostechnadzor) has renewed the construction licence for St said defuelling and decommissioning of the plant would continue toPetersburg Atomenergoproekt (SPb AEP) to continue work on Lenin- require the services of Oldbury’s skilled staff, as would the antici-grad NPP phase two (LNPP-II). pated newbuild NPP at the site, known as Oldbury B. The regulator also issued a notice affirming that SPB AEP “is ready Plant operation briefsto continue construction in accordance with safety and reliabilityrequirements”. The construction licence was suspended in Septem-ber because of an earlier incident at the site involving collapse of therebar cage of the outer containment of unit 1. CANADA: NB Power in Canada’s New Brunswick province has installed SPb AEP said de-installation of the collapsed cage, examination of 79% of the 380 new fuel channels for refurbishment of Atlantic Canada’sconcrete and restoration of the outer containment structures would only NPP, Point Lepreau. Refurbishment is running three years behindnot affect the construction schedule and work at the other 71 facili- schedule and more than $1bn over budget. NB Power has applied for aties at LNPP-II “will be carried out routinely”. In parallel, the inner five-year operating licence renewal from the Canadian Nuclear Safetypart of the containment will be built. Commission. Public hearings will run through December. In October acceptance tests were completed of the operator’ssimulator at LNPP-II’s training centre. The equipment is an upgraded FINLAND: Utility Teollisuuden Voima Oyj (TVO) has begun operatingfull-scale simulator (FSS) of the main control room of units 3 and 4. a full scope simulator of its Olkiluoto NPP unit 3 (OL3), a European The FSS upgrades started in 2007 under a modernisation Pressurised Water Reactor (EPR) now under construction. Theprogramme for LNPP-II when new reactor control and safety simulator, delivered, installed and commissioned by Canada-basedsystems were introduced. The American GSE Power System with L-3 MAPPS in cooperation with France’s AREVA, will be used to sup-Russia’s Kurchatov Institute and Elektropult works took part in port training exercises. An AREVA-Siemens consortium is building3 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Plant Operations > Supply Chain and EquipmentOL-3 for TVO. The reactor is about 80% complete. L-3 MAPPS said AP1000s and AREVA EPRs, initially for the UK market.the OL3 full scope simulator is the first for an EPR plant. In coopera- The modules will be built in an off-site, weather-protectedtion with AREVA, L-3 MAPPS delivered, installed and commissioned construction hall with sea access load-out facilities at shipbuilderthe simulator in early July 2011. Michael Chatlani, Vice President of Cammell Laird’s shipyard in Birkenhead on the River Mersey nearL-3 MAPPS Power Systems and Simulation, said that new simulator Liverpool. The facility can handle modules weighing up to 5,000t.marked “a significant breakthrough” in NPP simulation. A Cammell Laird statement said that the principle advantages of this innovative approach was the ability to design and build largerRUSSIA: In mid October, unit 3 at Kalinin NPP shut down for sched- units than previously possible in a weather protected factory envi-uled maintenance and to shift the plant to an 18-month fuel cycle. ronment. This will ultimately reduce construction costs, improveVitaly Trutnev, Kalinin Deputy Chief Engineer for maintenance and quality, safety and delivery performance while reducing onsite con-repair, said the 18-month fuel cycle would change the reactor’s repair struction content by a considerable factor, Cammell Laird said. Theand maintenance cycle from once a year, to once every 18 months. UK new build programme is scheduled to begin in about 18 months.Work during the scheduled maintenance includes: disassembling the Cammell Laird initially teamed with nuclear technology supplier Nu-reactor, refuelling, reassembly of the reactor; in-service inspection via in August 2010 to enter the nuclear module market. Cammell Lairdof metal; major overhaul of the No. 2 and 3 reactor cooling pumps; CEO John Syvret said that Ansaldo Nucleare added an important new di-turbine and generator repairs; and upgrading a low pressure heater. mension to the partnership because they have patented module designsKalinin-3 is a VVER-1000 reactor commissioned in December 2004. together with operational capability and significant design capacity. Ansaldo Nucleare has a history of collaboration with Toshiba-RUSSIA: The three-unit Smolensk NPP has generated 500TWh since Westinghouse dating to 2001, when it took part in the US licencingit was commissioned in 1982. All three reactors are operating, with process of the AP1000.a total capacity of 3,070MWe. The reactors are uranium-graphite Equipment briefschannel-type RBMK-1000 reactors commissioned in 1982, 1985and 1990. The NPP provides about 20TWh/year to the national grid,about 13% of Russia’s total nuclear electricity and more than 80% ofthe electricity produced in Smolensk region. Significant upgrades on ARGENTINA/CANADA: Nucleoelectrica Argentina has awarded Can-unit 1 were carried out in 2010 to extend its service life. ada’s L-3 MAPPS a contract to replace the digital control computer (DCC) system hardware at the Embalse NPP. Under the contract, L-3SPAIN/US: Spain’s Iberdrola and Nuclenor have awarded GE Hitachi MAPPS will deliver four DCC systems to Nucleoelectrica. The firstNuclear Energy (GEH) multi-year service contracts to help ensure system will be used as a testing and training platform and is due tothe long-term reliability, availability and safe operation of the Cofr- be installed in early 2013. Three other redundant DCC systems forentes and Santa María de Garona nuclear power plants (NPPs). The plant operations are expected to enter service in mid-2014. Cana-six-year, multi-cycle service contract, which can be extended to 10 dian-designed CANDU reactors such as Embalse use DCC systems toyears, calls for GEH to provide a wide range of outage and refuelling monitor and control major reactor and power plant functions.services, including drywell and vessel head disassembly and assem-bly, reactor pressure vessel maintenance, and visual and ultrasonic CHINA/CANADA: Canada’s L-3 MAPPS announced that a second pair ofinspections. GEH and the utilities will establish a new steering L-3 MAPPS-developed simulators for China’s indigenous CPR1000+committee, a leadership group, an asset management plan and an en- nuclear power plant (NPP) design have entered service at the Hon-gineering consulting programme. GENUSA, the European BWR fuel gyanhe Nuclear Power Training Centre. The first of the two simu-joint venture (JV) between Global Nuclear Fuel (GNF) and Spanish lators, which was developed for units 3 and 4, was handed over tonuclear fuel company ENUSA, will provide nuclear fuel reloads under Liaoning Hongyanhe Nuclear Power Co (LHNP) in November 2010,a separate agreement. GNF is the GE majority-owned fuel fabrica- and the other, for units 1 and 2, in March 2011. The new simula-tion and fuel engineering services joint venture established by GE, tor set was deployed after extensive testing, and will be updated asHitachi and Toshiba. L-3 MAPPS receives information on upgrades to the digital control system. Earlier, L-3 MAPPS provided high-performance simulatorsSUPPLY CHAIN AND EQUIPMENT for China Guangdong Nuclear Power Company’s (CGNPC) Daya Bay, Ling Ao and Ling Ao Phase II sites. The first three full-scope simula-Ansaldo joins UK module tors are being used for operator training six shifts per day with an availability of 99.8%.partnership CzECH Republic, Slovakia/Russia: Arako spol, a Czech-based unitANSALDO NUCLEARE, A member of Italian technology group Finmec- of Russian state nuclear corporation Rosatom’s machinery divisioncanica, signed a partnership agreement with UK-based Nuvia and Atomenergomash has won a contract to supply components to theCammell Laird to design and build heavy modules and components Slovak Mochovce NPP (owned by Italy’s Enel). The contract is worthfor the UK’s civil nuclear new build programme. €20m ($27.4m), according to Arako General Director Rovsan Abbasov. Ansaldo Nucleare has designed major modules for the Westing- Enel is currently expanding Mochovce NPP, operated by its Slovakhouse AP1000, and is involved in the design and construction of the unit Slovenske Elektrarne. Arako, based in the north-eastern Czechcontainment vessel at Sanmen nuclear power plant (NPP) in China. town of Opava, is a maker of industrial valves and high-pressureThe three partners propose to build heavy modules for new build valve fittings used in energy and nuclear power engineering. Arako,mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 33
    • Supply Chain and Equipment > Safety & Securitypart of Atomenergomash, hopes to have a 50% of orders for valves a controlling stake in EMSS, which became a division of Rosatom’sintended for NPPs planned or being built in Russia. Before the end of Atomenergomash.2012, Arako plans to double manufacturing of valves for NPPs from1,200 up to 2,400 items a year. SAFETY & SECURITYRUSSIA: The Alstom-Atomenergomash (AA) joint venture (JV) willmake a final decision on a Russian site for turbine manufacture by US NRC approves Fukushimathe end of the year. Originally AA planned to use a site in ZiO-Podolsk, but now is also considering a site in Petrozavodskmash, recommendationsaccording to AA Director-General Alexander Tsvetkov. “We are THE US NUCLEAR Regulatory Commission (NRC) in mid October di-optimising our production sites to tailor them to individual equip- rected the agency’s staff to begin immediately implementing sevenment components,” he said, adding that selection of a location would safety recommendations from the NRC’s Near-Term Task Force ondepend on economic parameters. Financing of company activities is lessons learned from the reactor accident at Fukushima. The sevenlinked to a phased increase in production capability, Tsvetkov said. recommendations are among 12 comprehensive safety recommenda-Possibly at the first stage, financial support will be from internal tions the task force presented to the commission in July.investments by the JV founders, followed by funding from external The NRC staff reviewed the task force’s July report and providedinvestors. AA is involved in the VVER-TOI NPP design work and is a proposal to the commission that selected the seven recommenda-implementing a project to supply backup power to the Leningrad II tions as most appropriate for immediate action. The recommenda-NPP. Rosatom also signed an order on AA participation in the Ak- tions cover issues including the loss of all A/C electrical power at akuyu NPP project in Turkey. reactor (station blackout), reviews of seismic and flooding hazards, emergency equipment and plant staff training.RUSSIA/UKRAINE: Russia’s Atomenergomash and Ukrainian utility In keeping with NRC’s regulatory actions over the past few years,Energoatom signed a memorandum on cooperation on power equip- such as mitigation strategy requirements, the commission called onment manufacture; organisation of equipment supplies for NPPs the staff to use performance-based standards in any new or revisedwith the possibility of one or more Ukrainian production sites; and regulations wherever possible. Performance-based requirementsservicing nuclear power equipment in Ukraine. The memorandum specify the objective or result to be attained, rather than prescribingis intended to help broaden the supply of machine engineering prod- to licensees how the objective or result is to be attained.ucts in Russia and Ukraine, and facilitate safety enhancements for The commission also set an April 2014 deadline for the staff to com-newbuild NPPs and plants undergoing life extension retrofits. plete the new station blackout rule. Commission Chairman Gregory B Jaczko said the 2014 deadline was an achievable goal, but that it wouldRUSSIA/UKRAINE: Kharkov-based Turboatom has signed a contract be complicated by the commission’s directive to initiate the rulemak-for equipment supplies for unit 5 at Russia’s Novovoronezh NPP. ing through an advance notice of rulemaking, rather than a proposedUkraine’s Turboatoom will produce two modular condensers with rule, which will add an extra step to the rule-making process.stainless steel piping for the turbo-feeding pump of the 500MWe In its reports to the commission in September and early October,turbine to replace the old condensers, Delivery is set for May the NRC staff endorsed virtually all of the task force recommenda-2012. This is the first time Turbatom has made these products. tions. The October staff review also proposed additional steps be-The total weight of the condensers is about 30t. Novovoronezh-5 yond the task force recommendations, which touch on safety issueswas Ruyssia’s first power unit with VVER-1000 reactor. Its design such as spent fuel storage and emergency planning.service life expired in 2010 but has been extended for another 25 The commission is still considering the remaining task force rec-years. The old condensers used piping made of a copper-nickel ommendations and the additional staff recommendations.alloy which were not durable while the new condensers have Cracks found intheir cooling tubes and periphery tube plates made of stainlesssteel to give a longer service life, higher economic efficiency,reliability and safety. Turboatom’s contractual obligations alsoinclude design, manufacture and supply, with follow-on, startup US NPP containmentand adjustment, and commissioning of the equipment. The designdocumentation is being developed. US ENERGY PRODUCER FirstEnergy discovered small cracks in the 76cm-thick concrete of the containment building at its Davis-BesseUKRAINE: Energomashspetsstal (EMSS), which produces custom nuclear power plant (NPP) in Ohio. The cracks, one of which was 9parts for nuclear and wind power generation units, the steel industry metres long, were found by contractors hydro cutting through theand shipbuilding, will receive a $79m loan from the European Bank containment during a $115m project to replace the reactor pressurefor Reconstruction & Development (EBRD) to modernise its entire vessel head of the 913MWe pressurised water reactor (PWR).production complex. By upgrading its production facilities and Davis-Besse has been plagued by serious problems for almost aprocesses, EMSS will significantly improve its operational efficiency decade and was shut down for more than three months in 2010 afterand competitiveness, as well as reduce its energy consumption per workers discovered cooling water leaking through cracks in someproduction unit by nearly 25%, EBRD said. EMSS produces castings reactor head nozzles. FirstEnergy was also forced to close the plant forand forgings in special steel grades for the nuclear power industry. more than two years (2002-2004) when a series of leaks led to corro-Russian state nuclear energy corporation Rosatom in 2010 acquired sion of the vessel head near the control rod drive mechanism that came34 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Safety & Securitywithin a fraction of an inch of eating entirely through the vessel head. tional Research Universal (NRU) reactor, which provides 40% of the In 2005, the Nuclear Regulatory Commission (NRC) imposed its world supply of the medical isotope molybdenum-99. NRU experi-largest fine ever ($5.45m) for FirstEnergy’s failure to discover the enced serious corrosion problems in 2009 that led to a shutdown ofcorrosion as well as attempts to deceive NRC about the problem. 15 months. In principle, the CNSC decision allows NRU to continueFirstEnergy then discovered problems with the first replacement operating, but that approval depends on AECL’s ability to show thatvessel head and has now shut down the plant to install a third new the reactor is continuing to operate safely and meeting licensedreactor vessel head, three years earlier than previously planned. safety requirements. AECL must submit an extensive inspection At the end of October, FirstEnergy was still finding more hairline report on the repaired reactor vessel in February.cracks in the containment. In a letter to investors, FirstEnergy saidthat the sub-surface cracks on the shield building did not affect CHINA/IAEA: The International Atomic Energy Agency (IAEA) hasstructural integrity or safety, and the reactor, closed since the begin- signed a cooperation agreement with China on safe NPP construc-ning of October, would restart in November. tion. The arrangement provides for stronger collaboration between NRC had sent a concrete materials expert to the plant to assess IAEA and China’s International Construction Training Centre.the cracks but said that the shield building is not part of the primary China currently has 27 newbuild NPPs under construction.safety barrier. Cracking in its reinforced concrete is therefore notconsidered a safety threat and NRC permission is not needed to EUROPE: The European Commission (EC) has proposed a comprehen-restart the plant. sive European Union (EU) radiation protection directive that would FirstEnergy has also applied for a licence extension to operate the take account of workers’ exposure to both natural and artificialplant for an additional 20 years. sources of radiation in a wide range of industries. Brussels acted on a 2007 recommendation from the International Commission onSweden increases Radiological Protection (ICRP), upon whose expertise Euratom legis- lation is generally based. This proposed guidance includes new detailearthquake protection on any exposure, whether the source of radiation is man-made or natural. If the EU Council of Ministers approves the proposals, a new directive will be crafted that lays down basic safety standards forNUCLEAR POwER PLANT (NPP) operators in Sweden will incorporate protection from exposure to ionising radiation. Protective controlsimprovements highlighted by stress tests with a pre-existing pro- outlined in the directive would take effect when dose to workers isgramme to standardise safety in earthquake scenarios. liable to exceed 7mSv/year. Employers would be required to keep In the wake of Japan’s Fukushima accident, the European Union records of employee exposure.asked member countries with NPPs to analyse the plants’ resistanceto extreme circumstances such as major natural disasters. FINLAND: Fortum and Teollisuuden Voima Oyj (TVO) have told A statement from the Swedish Radiation Safety Authority (SSM) said nuclear regulator STUK that stress tests at Finland’s NPPs showedthat: “What we can already see is that some plants do not fully meet re- no need for any major modifications. The stress tests were part ofquirements in the case of earthquakes. Here we will need to take action.” the European Council’s reassessment of NPP safety in the wake of Jan Hanberg, SSM’s head of radiation protection who led the stress Japan’s Fukushima accident. In June, STUK instructed Fortum andtest programme in Sweden, said there were no specific earthquake TVO, to conduct the specific safety evaluations. The Ministry ofrequirements in the early days of the Swedish nuclear programme. Employment and the Economy earlier had asked STUK to undertakeSweden relied on the intrinsic strength of each design. Of the coun- safety assessments. The EU stress test and the Ministry assessmenttry’s 10 reactors, only Oskarshamn-3 and Forsmark-3 were licensed essentially addressed the same safety issues. Fortum and TVO nowto specific earthquake standards. have now submitted reports to STUK on the tests. These addressed In 2005, a new earthquake specific regulation gave operators until the safety of Fortum’s Loviisa NPP and TVO’s Olkiluoto NPP in con-2013 to ensure that existing plants met earthquake resistance re- junction with an earthquake, flood, exceptional weather phenom-quirements. The operators, however, had to conduct the stress tests enon and a loss of cooling at either the reactor or used fuel pools.based on plant status at the beginning of July. The also addressed failures of multiple safety systems, and looked at According to Hanberg, the operators will continue to work toward utility operations in the event of a severe accident.the 2013 deadline, but might implement additional safety measuresin light of what they have learned from the stress tests. Some plants, JAPAN: The government has acknowledged that hackers who gainedhe said, could need to request an extension of the 2013 deadline to access to information from Mitsubishi Heavy Industries systemsaccommodate the additional work. during recent cyber attacks may have obtained information about NPPs and military aircraft. The Ministry of Economy, Trade andSafety briefs Industry said data on nuclear reactors might have been transferred between Mitsubishi servers, but they have no evidence that it was released outside of Mitsubishi. Mitsubishi previously had reportedCANADA: The Canadian Nuclear Safety Commission (CNSC) renewed that its computer network had come under cyber attack and 45 serv-for five years, through October 2016, the operating licence for the ers and 38 computers had been infected with more than 50 comput-Chalk River Nuclear Laboratory. Atomic Energy of Canada Ltd er viruses at 11 locations in Japan. A “Trojan horse”, a virus that can(AECL) operates the laboratory, which is the centre of Canadian order data to be transmitted outside, was among those found. Somenuclear research and development. It also hosts the 54-year-old Na- of the affected servers and computers had been forcibly connected tomccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 35
    • Safety & Securitywebsites abroad, resulting in a loss of some data including Internet (NNSA) in October completed its first pilot Weapons of Mass De-Protocol addresses. Police are investigating the attacks.Ten power struction Commodity Identification Training (WMD-CIT) workshopcompanies that manage NPPs have also experienced attacks on at the RTC Academy in Bangkok with Royal Thai Customs (RTC)their computer networks in the past year. and the Royal Thai government. NNSA and RTC began joint work in 2009 on development of a comprehensive training programmeNETHERLANDS: Press reports say Netherlands is in violation of inter- for customs officers aimed at strengthening Thailand’s ability tonational guidelines on nuclear power because its safety regulator is prevent the smuggling of sensitive commodities that could be usedpart of the same ministry that licenses NPPs. Nuclear safety person- by state proliferators or terrorists. The two-year effort has includednel are under the auspices of Economic Affairs Minister Maxime development of a national WMD CIT course specifically tailored toVerhagen, an outspoken supporter of nuclear power. The problem the needs of Thai customs inspectors. Thai government officials willarose last year when the new government abolished the Environ- teach future iterations of the course. Thailand is the first member ofment Ministry and divided up its jobs, placing both NPP licensing the Association of Southeast Asian Nations (ASEAN) to develop andand safety monitoring under economic affairs. Marius Enthoven, a implement its own national WMD-CIT course.former Environment Ministry nuclear power expert, said it was “ex-tremely unwise” to place them both under the same ministry. The UKRAINE: The Superior Rada (upper house) approved a bill to estab-International Atomic Energy Agency (IAEA) has called for all nuclear lish a new national commission to regulate safety at civilian nuclearsafety regulators to be completely independent. facilities. The commission, which is being set up as part of the reform of the State Nuclear Regulatory Inspectorate, will be given specialNETHERLANDS: The 485MWe Borssele NPP, Netherlands’ only status. Its main tasks will include: formulation and implementationnuclear plant and one of the oldest in Europe, has passed a stress test of the state policy on safe use of nuclear power; safety regulation;conducted at the request of the European Union (EU) after Japan’s coordination of activities of central and local authorities responsibleFukushima Daiichi disaster. Plant Manager Jan van Cappelle said for nuclear and radiation safety; and ensuring that Ukraine fulfils itsthe NPP was safe but there was room to improve safety further. obligations under international agreements on nuclear and radiationBorssele was built in 1973 with a design life of 40 years. However, in safety. The commission will include a chairman and four members2006, the government extended its life for 20 years, until 2033. appointed for six-year terms.PAKISTAN: Karachi NPP (KANUPP) declared a seven-hour emer- UKRAINE: Operating NPPs have submitted results of stress tests to thegency after heavy water leaked from a reactor feeder pipe. Officials State Nuclear Regulatory Inspectorate (SNRI), according to nuclearsay there was no radiation release or damage to the reactor. The utility Energoatom. Ukraine’s four NPPs (Zaporozhe, Khmelnitsky,137MWe NPP began commercial operation in 1972. It is located Rovno and South Ukrainian) were told to conduct the stress tests in24km west of Karachi, Pakistan’s biggest city and commercial capi- the wake of Japan’s Fukushima Daiichi accident in March. SNRI willtal, on the coast of the Arabian Sea. The plant already was shut down incorporate the reports into a state-level review of nuclear and radia-at the time of the leak, which began during maintenance checks. tion safety. Since April, SNRI has conducted unscheduled examina-The plant is expected to resume operation in November. KANUPP tions of conditions of NPP buildings and structures, spent fuel pools,reached the end of its 30-year design life in 2002, and was upgraded and outdoor switchyards. It also has analysed the reliability of in-to extend operations. Currently, it is licenced to operate until 2015. house power supply systems and emergency reactor cooling systems.RUSSIA: Nuclear utility Rosenergoatom reported that one employee UK: During routine operation of the plant destroying the liquidwas injured when molten metal splashed at the Ecomet-S facility, metal coolant in the Dounreay Fast Reactor (DFR), drips of causticone of the auxiliary structures at the Leningrad NPP. Rosenergoatom liquor from pipework in a shielded cell were detected by the monitor-said Ecomet-S is a private company that is not under control of either ing systems. The plant was immediately shut down and the leakthe utility or state nuclear corporation Rosatom. The company repro- isolated and stopped. There was no release of radioactivity to thecesses low-level radioactive metal structures. The incident did not environment and no harm to the workers. The Scottish Environ-affect the operations at the NPP, Rosenergoatom said. ment Protection Agency, the Office for Nuclear Regulation and the Nuclear Decommissioning Authority were all informed immediatelySwEDEN: The onsite fire brigade extinguished a turbine fire at the leak was isolated. Working with the Regulator ONR, DounreaySweden’s Oskarshamn-2 NPP, and the fire never presented a hazard Site Restoration Ltd (DSRL) will investigate the leak The pipeworkto the public or the environment, plant operator OKG confirmed in will be flushed out to reduce radiation levels before workers repairlate October. An oil leak was the most likely cause of the fire. Hakan the pipe. DSRL has destroyed more than three quarters of the 57t ofOttosson, Production Manager at Oskarshamn-2, said he expected primary liquid metal coolant in DFR, and expects to complete thefurther investigation would show that oil came into contact with job by March 2012.hot surfaces next to the high pressure turbine. Oskarshamn-2 wasrestarted in mid October after an annual maintenance outage, but US: North Anna NPP in Virginia, which has been shutdown since apower rates were unstable because of turbine vibration, a plant state- 5.8 magnitude earthquake in August, leaked about 272gal of nonra-ment said. Operators decided to shut down the unit to rebalance the dioactive industrial water into Lake Anna in early October, accordingturbine, a routine procedure. to the Nuclear Regulatory Commission (NRC). An NRC event report said the water overflowed from a basin used to cool bearings on theTHAILAND/US: The National Nuclear Security Administration plant’s main feed pumps, condensate pumps, and main generators.36 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Safety & Security > UraniumA leaky valve overfilled the basin, and a malfunctioning indicator remains convinced that uranium’s prospects are good.alarm failed to warn of the problem. A spokesman for plant owner Fukushima “was a terrible tragedy” which the nuclear industryDominion said the basin water contained small amounts of chlorine. would “take great lessons from”, but “the long-term fundamentalsHe said that, while the amount of chlorine was within environmen- for nuclear power remain,” he said. “It is still the only carbon-free,tal limits, because the leak pathway to the lake was not an approved reliable baseload form of energy available to many, many countries.discharge point, the company notified the Virginia Department of We still see the growth happening, especially in developing nations,Environmental Quality. especially China and India.” However, Dalla Valle said BHPB would only sell uranium to coun-US: The National Academy of Sciences (NAS) said it expects to tries with bilateral agreements with Australia - a situation whichfinish the first phase of a study examining potential cancer risks now excludes India.for populations living near nuclear power plants (NPPs) and other Mixed results for Paladinnuclear facilities by early 2012. NRC requested the study. Phase 1,which is currently under way, will identify methods and approachesfor how to design and conduct a study of cancer risk in populationsaround NRC-licenced facilities. Phase 1 will identify methodological URANIUM OxIDE PRODUCTION at Paladin’s Langer Heinrich mine inapproaches for assessing off-site radiation dose and approaches for Namibia rose steadily from July to September, bringing total produc-assessing cancer methodology. The results of the Phase 1 scoping tion this year to more than 2.5m lbs.study will be used to inform the design of the cancer risk assessment Production in the third quarter (Q3) was almost 850,000 lbs,to be carried out in Phase 2. The study is being carried out under about 5% below Q2, mainly due to a six day shutdown to bring onthe auspices of the NAS Division of Earth and Life Sciences, and the board equipment for the phase 3 expansion.National Institute of Medicine. Paladin expects production to the end of October will be more than 90% of the phase 3 nameplate target. Paladin CEO JohnURANIUM Borshoff said that although further minor production disruptions were scheduled, production was expected to be well above phase 2Olympic Dam hurdles nameplate in Q4. The phase 3 expansion at Langer Heinrich will increase productionPOLITICAL ISSUES APPEAR likely to hamper expansion of BHP from 3.7m lbs/year to 5.2m lbs/year. The expansion is 99% complete.Billiton’s (BHPB’s) $30bn Olympic Dam mine in South Australia The Q3 drop in production, even in the wake of record sales, led to a(SA). Minority parties in the SA parliament want BHPB to appear 5% drop in Paladin’s share price.before a parliamentary inquiry to discuss the indenture arrangement Borshoff said Langer Heinrich and Kayelekera, Paladin’s mine in Ma-it signed with former Treasurer and Premier Mike Rann. lawi, reported record sales of more than 2m lbs of uranium oxide in Q3, The arrangement, which runs up to 70 years, fixes BHPB’s royalties with revenue of $102.7m, representing an average price of $51.33/lb.at 5% for uranium and 3.5% for other minerals for the first 45 years. Spot prices continue to languish in the wake of Japan’s Fuku-The Greens have contested the arrangement, saying it is too much of shima accident, he said. This has negatively affected the averagean exemption offer for BHPB. However, the SA government has said sales price by a further $5/lb from Paladin’s internal forecast, and isthe 45-year term fixed rate would bring in $350m/y in revenue once impacting financial returns.the mine is fully operational. bannerman takeover falters SA Greens forerunner Mark Parnell wants a thorough analysis ofthe mine by a select committee of scientific experts and BHPB ex-ecutives. Rann, who left office in October, wants parliament to fasttrack approval of the bill to facilitate the start of work at the mine. AUSTRALIAN URANIUM HOPEFUL Bannerman Resources said that Olympic Dam, north of Adelaide, is the world’s largest known uranium it was looking to other suitors as an A$143.5m ($149.2m) bid fromdeposit and fourth-largest copper and gold deposit. More than 13,000 China’s Hanlong Mining continues to drag after a financier called forjobs are expected once work begins and it is expected to contribute further due diligence.$45bn/y to Australia’s coffers and to yield about 19,000t/y of uranium. Bannerman said it will now focus on existing discussions with In mid October, BHPB approved $1.2bn in pre-commitment capital other unnamed parties regarding alternative corporate arrange-to start expansion work on Olympic Dam, which analysts estimate ments and the development of joint ventures.could cost more than $30bn to develop fully. The funds will be used It also has advised Hanlong that it would be willing to considerto buy trucks, build worker housing and for other items requiring a more definite proposal. However, a Bannerman statement to thelengthy lead times. Australian Securities Exchange said it was “unlikely” that Ban- BHPB said it would not make a final decision to go ahead until mid- nerman would know whether Hanlong was in a position to enter2012, after looking at the 150 environmental conditions imposed into a binding agreement within a timeframe that would meet theon the project by the national and SA state governments. The Rann expectations of Bannerman’s shareholders and other stakeholders,agreement requires BHPB’s board to give its final approval for the including the Namibian government.first phase within a year. Bannerman has interests in two uranium properties in Namibia. BHPB will focus on producing commodities for market and has no In July, it received a conditional takeover proposal from Hanlong,intrest in further processing of uranium, says BHPB President (ura- and said in September that the due diligence investigations werenium) Dean Dalla Valle. Despite the Fukushima disaster, Dalla Valle well progressed.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 37
    • Uranium However, in recent negotiations, Bannerman was informed that Committee Chairman James Lembeli said that, while the projectChina Development Bank, which was to finance Hanlong’s offer, looked promising, it had proceeded in secret, making people suspi-required greater certainty regarding the timing and conditions of cious and fearful. He said the government must be very clear ona mining licence. Bannerman’s key asset is its 80%-owned Etango issues of environmental preservation and mining if it wants to pro-project, southwest of Rio Tinto’s producing Rossing uranium mine. ceed. He called for the government to involve all stakeholders and Both Bannerman and Australia’s Sundance Resources had pushed confirm that they would share in the benefits.ahead with takeover negotiations with Hanlong despite an investiga- Magdalena Sakaya, a committee member, complained that thetion by the Australian Securities and Investments Commissions into ownership and names of companies exploring for uranium have beensuspected insider trading by former Hanlong executives. changing. She said one contract referred to Mantra Resource, Mantra In October, Sundance said Hanlong saw no reason why it would Tanzania and Mantra Resource Tanzania Ltd. “How is it possible for anot secure regulatory approval for its takeover. Bannerman began a company to use three names in one contract”, she asked.feasibility study at Etango in the second quarter of 2011, and aims to Sakaya also said Mantra was exploring for uranium in other partscomplete it by the end of March 2012. of the reserve, indicating that it might expand its operations. The As part of the study, Bannerman was investigating increasing the company was given 3,250km2 for exploration, but it has applied forplant’s throughput by 33%, which would result in a 20% production another 300km2, for which it has done prospecting, she said.increase to between 6m and 8m lbs/yr. Bannerman earlier had esti- Mantra recently applied for a licence for 100km2. “It is possiblemated production at 5-7m lbs/yr. they have many areas in the reserve and they can in future mine in a bigger place destroying the ecology of the reserve,” she said.Forsys gains 100% Mantra Tanzania Limited Country Director Assah Mwaipopo has said the government believes that development of the proposedof Namibian project mining operation is of strategic importance to the nation and its development programme. He said Tanzania could become the world’s eighth largest uraniumCANADIAN bASED MINER Forsys Metals Corp has entered into a producer, and the third largest in Africa based on 2009 productionpurchase agreement with Etherlin Management Corp that will allow figures.Forsys to acquire from Etherlin its indirect 30% equity interest in AREVA puts Centralthe Namibplaas Uranium Project in Namibia. The acquisition is in exchange for 13m new common shares ofForsys and 2m common share purchase warrants, each warrant en-titling the holder to acquire one share at a price of C$1.10 ($1.09) for African mine on holdtwo years from the date of issue. Upon completion, Forsys will havea 100% equity interest in Namibplaas. FRANCE’S AREVA IS suspending a mining project in the Central African Forsys also announced that it has commenced the second phase Republic for a year or two because of a drop in uranium prices sinceof its 2011/12 drilling programme at Namibplaas with an approved the Fukushima Daiichi disaster in Japan.budget of C$2.5m ($2.47m). Work on the Bakouma mine, estimated to hold about 32,000t of Forsys plans to have an updated compliant NI 43-101 technical uranium has been suspended until uranium prices begin rising again.report in the third quarter of 2012. CEO Marcel Hilmer said that by A company spokesman stressed that this does not mean AREVA isacquiring the remaining 30% of the project, Forsys would be able to abandoning the project.benefit fully from the advanced exploration programme and has full Since Fukushima, the price of uranium has dropped about 30%,control over the project consolidation assessment with the already from about $68/lb before the accident to about $52/lb at the end100% owned Valencia Uranium Project. of October. He expects the consolidated project will show lower capital and AREVA Vice President in charge of mining, Sebastien de Montes-operating costs, and improve overall project economics. The maiden sus, has said that the company is convinced the uranium market willresource statement for Namibplaas released in September confirmed rebound over the next two years. He called Bakouma a promisingthe project’s potential, Hilmer said. deposit with significant potential resources. AREVA has spent €106m ($145.9m) on developing the site sinceUranium mining 2007, when it bought out British-Canadian company UraMin’s min- ing rights. AREVA expects to present an overall plan in Novembercontroversial in Tanzania detailing its corporate strategies in the wake of Fukushima. The Central African Republic says it will dispute the contract with AREVA if the project is frozen. “We reserve the right to dispute theTANzANIA’S PARLIAMENTARY COMMITTEE on Lands, Natural Re- contract with this company if its directors maintain their position,”sources and Environment has advised the government to suspend Mines Director Jean-Sylvain Feigoudozoui told AFP.uranium exploration in Selous Game Reserve, which is being under- Noting that the contract said drilling would start from 2010,”taken by Mantra Resource Tanzania. Feigoudozoui said: “If AREVA decides to abandon a project at this The MPs said most Tanzanians see no benefit from the project, level and leave, we consider that it has already violated the termsnoting that mining in the area could have a detrimental effect on of the clause.” The government is still waiting for official writtenwild animals in the reserve, and could lead to a loss of tourist income. confirmation of AREVA’s intentions.38 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • UraniumSlovak resource estimate that any uranium mining and milling in the Dolores River watershed would be protective of the environment and human health, andCANADIAN ExPLORER TOURNIGAN Energy has announced a resource said the plaintiffs looked forward to the Environmental Protectionestimate for its Novoveska Huta uranium project in Slovakia, the Agency’s “leadership in disclosing the full impacts of uranium activ-first NI 43-101 compliant resource estimate prepared for the deposit. ity in this important watershed.” Tetra Tech has reviewed, audited and approved the estimate. The conservation groups bringing the lawsuit charged that ura-Results of the resource estimate at a 0.06% cutoff grade are: 3.75m nium mining and milling resulting from the lease programme wouldlbs U3O8 in measured and indicated resources of 1.662m t grad- deplete Colorado River basin water and threaten to pollute riversing 0.102% U3O8; and an additional 12.738m lbs U3O8 in inferred with uranium, selenium, ammonia, arsenic, molybdenum, alumi-resources of 4.689m t grading 0.123% U3O8. num, barium, copper, iron, lead, manganese, vanadium and zinc. The Novoveska Huta deposit is near the town of Spisska Nova Ves, They argued that selenium and arsenic contamination in the50km northwest of Tournigan’s high-grade Kuriskova uranium deposit. Colorado River basin from abandoned uranium-mining operations At Kuriskova, the most recent resource estimate comprises an already have been implicated in the decline of four endangered Colo-indicated resource of 28.5m lbs U3O8 at a grade of 0.555% U3O8 rado River fish species.contained in 2.3mt and an additional inferred resource of 12.7m lbs The Colorado Environmental Coalition, Information Network forU3O8 at a grade of 0.185% U3O8 contained in 3.1mt, both estimates Responsible Mining, Rocky Mountain Wild, Centre for Biologicalat a 0.05% cutoff grade. Tetra Tech will complete the Kuriskova Diversity and Sheep Mountain Alliance sued DOE and the Bureauprefeasibility study in early 2012. of Land Management in July 2008 for approving the programme Tournigan’s objective at Novoveska Huta was to verify historic without analysing the full environmental impacts from individualdata collected during Slovakia’s communist period, and to find uranium-mining leases spread over 20,000 acres and for failing toadditional resources. The western part of the deposit (currently ensure protection of threatened and endangered species prior tocomprising the measured and indicated resource) was known before authorising the programme.Tournigan acquired the property, but the database had not been veri- DOE had refused to conduct a full environmental impact statementfied and underground sampling data had not been evaluated. (EIS) analysis in 2008, instead issuing a “finding of no significant Tournigan’s work in the western part of the deposit verified the impact”(FONSI), which also was struck down as part of the court ruling.historical data. In addition, Tournigan included underground chan- US county backs miningnel sample data in the new resource estimate. Tournigan’s exploration drilling in the eastern part of the depositconfirmed the extension of mineralisation to the east and increasedthe exploration potential of the deposit. The eastern block is at a moratoriumhigher grade than the western block and remains open to the eastand north. THE bOARD OF supervisors in Patrick county, Virginia, voted in October to support a continued moratorium on uranium mining inColorado uranium lease Virginia. The Virginia Assembly approved the legislative moratorium inprogramme halted 1983. The Patrick county resolution said the natural environment, including “scenic beauty, clear air and clean water”, is the county’s most important resource. It added that future economic develop-A US FEDERAL judge has halted the Department of Energy’s (DOE’s) ment of the region was closely related to the region’s natural beauty108.8km2 uranium-leasing program that threatened the Dolores and desirability as a destination for visitors and new residents.and San Miguel rivers in southwestern Colorado. Virginia Uranium Inc has proposed establishing one of the largest Five conservation groups had sued to halt the leasing program, uranium mining operations in North America at Coles Hill in nearbycharging DOE had failed to adequately protect the environment or Pittsylvania county. The Patrick county resolution said Virginia Ura-analyse the full impacts of renewed uranium mining on public lands. nium has stated to its investors that it will seek legislation to repeal Judge William J. Martinez of the US district court for Colorado the moratorium in the 2012 session of the Assembly.issued the 53-page ruling, which invalidates DOE’s approval of the The resolution adds that the proposed mining operations will mostprogramme; suspends its 31 existing leases; enjoins DOE from is- probably result in large quantities of highly mobile, radioactive millsuing any new leases; and enjoins any further exploration, drilling tailings that must be stored in sludge ponds, and that will remainor mining activity at the 43 mines approved under the programme, radioactive for thousands of years.pending new environmental reviews under the National Environ- The sludge ponds or tailings pile confinement structures for dewatermental Policy Act and the Endangered Species Act. sludge could fail, resulting in the release of radioactive materials into Hilary White, executive director of Sheep Mountain Alliance, surface waters and the surrounding environment, the resolution said.one of the plaintiffs, said the groups as well as local governments It added that the Cole Hill site is in the Roanoke River Basin,had been requesting the federal government “take responsible steps which serves as a drinking water source for more than 1m people into disclose the full range of impacts of mining uranium on public Virginia and North Carolina.lands in combination with the impacts from Energy Fuels’ proposed The resolution noted that, in the past, Patrick County, along withuranium mill”. other counties in the state, had been identified as potential uranium She said the ruling was an important step that will help ensure mining sites. More than 60 local and regional governing bodies, andmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 39
    • Uraniumcitizens’ groups in Virginia and North Carolina have adopted resolu- Basin into a world class uranium district. The project should alsotions calling on the Assembly to keep the moratorium in place. benefit Argentina, which began work on its first uranium enrich- ment plant in October 2010, and began operation of its third nuclearNew Mexico licence reactor, Atucha II, in September. CNEA expects to start production at Cerro Solo in the near future.reactivated british ColumbiaTHE US NUCLEAR Regulatory Commission (NRC) has reactivatedUranium Resources Inc’s (URI’s) licence to mine uranium in New compensates boss PowerMexico using in-situ leaching (ISL) technology. URI said the source materials licence, originally issued in 1998 to THE GOVERNMENT OF Canada’s British Columbia (BC) province saidits Hydro Resources subsidiary, has been in “timely renewal status” it would pay C$30m ($30m) plus legal costs to Vancouver-based Bosssince 2003. NRC’s reactivation of the licence will allow URI to resume Power Corp to compensate for the economic value of its Blizzarduranium mining operations under its current licence conditions. uranium deposit near Kelowna. URI now will proceed to renew the licence for a standard 10-year The settlement results from an April 2008 provincial decision plac-term. The company also has resources and active uranium projects in ing a “no reservation reserve” on uranium and thorium under the Min-the neighbouring state of Texas. eral Tenure Act. This meant no new claims for uranium exploration Under its licence, URI can produce up to 1m lbs/year (385 tU) from would be allowed, and existing deposits would remain undeveloped.its Churchrock Section 8 property until a successful commercial In October 2008, Boss Power took action in the BC Supreme Courtdemonstration of restoration is made, after which mining on other seeking compensation for what it argued was “expropriation” of itsproperties can begin and the quantity of production can be increased rights and interest in the Blizzard property, namely the Blizzard 1 claimto 3m lbs/year (1,154 tU). covering about 335ha and surrounding claims totalling about 1,979ha. The company said it plans to complete a feasibility study by BC had placed a moratorium on uranium exploration in 1980,the end of the year to determine its options for advancing the which lapsed in 1987. In April 2008, the BC government imposed aChurchrock/Crownpoint project. URI says that it already has ban on uranium exploration and development. While the provincethe necessary licences and permits to allow development of took the position that regulation did not apply to Boss Power’sChurchrock Section 8, which it claims has 6.5m lbs (2,500 tU) of legacy claims, it has now admitted that it acted unlawfully in refus-in-place mineralised uranium. ing to process a Notice of Work to enable the company to complete The feasibility study will determine the best mining method for the remaining exploration work necessary to move into federalthe company’s New Mexico projects, as well as the size, design and regulatory jurisdiction.capabilities of its Churchrock/Crownpoint ISL well field and process- In March 2009, the province passed an order in council banninging facilities. URI plans to be in production by 2013. exploration on legacy claims such as Boss Power’s.UrAmerica and Cameco Uranium briefslook to Argentina ARGENTINA/CANADA: Toronto-listed Blue Sky Uranium Corp an- nounced the discovery of surface uranium mineralisation at itsURAMERICA AND CAMECO Global South America have signed a strate- Sierra Colonia project located in the central part of the Chubutgic alliance to advance exploration in Argentina’s Chubut province. province in Argentina. The project is located 96km from the Cerro UrAmerica completed a non-brokered private placement of $10m Solo project where the National Commission of Atomic Energywith Cameco, representing 19.9% of the equity in UrAmerica. Cam- (CNEA) identified in the same geological environment a historicaleco purchased 11,954,579 ordinary shares of UrAmerica at $0.8365/ resource of 15m lbs of contained U308. Mineralisation at Cerroshare, giving it certain rights, including the exclusive right to acquire Solo is found at depths ranging from 50m to 130m; whereas at70% of each deposit discovered within the mining rights currently Sierra Colonia it is found in outcropping. Following a surfacecontrolled by UrAmerica in the Chubut San Jorge Basin. UrAmerica radiometric survey, Blue Sky’s exploration team defined 12 zoneswill continue to hold the remaining 30%. over a 14km long mineralised trend. Under the strategic alliance, a joint technical committee (JTC)comprised of two members each from Cameco and UrAmerica, has AUSTRALIA: Energy Resources of Australia (ERA) has raisedbeen set up to manage and approve the use of proceeds from Cameco’s $380m from institutional investors in a new share sale to extendequity investment in UrAmerica for the exploration programmes. its Ranger uranium mine. ERA, in which Rio Tinto commands a The JTC already has approved an initial 12-month drilling majority stake, said it sold 249m shares at $1.53 each to institu-programme of 30,000 metres, focused on seven drill targets, sur- tions in the 12 for seven accelerated renounceable entitlementrounding and close to the National Commission of Atomic Energy’s offer. An ERA statement said that Rio Tinto bought its full(CNEA) Cerro Solo deposit. entitlement of 68.4%. Proceeds from the sale will be used to fund Omar Adra, founder, CEO and CFO of UrAmerica, said he feels that construction of a brine concentrator and other water manage-the strategic alliance will allow UrAmerica to convert the San Jorge ment initiatives, construction of the Ranger 3 Deeps explora-40 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Uraniumtion decline and associated drilling, completion of evaluation unrest. Speaking at the opening of the annual Namibia Agriculturestudies into the development of the Ranger 3 Deeps mine and an Union (NAU) congress, Alweendo said Namibians should recogniseexpanded exploration programme. that at times, what is good for those who are employed today is not necessarily in the best interest of the country’s collective futureAUSTRALIA: Toro Energy completed acquisition of two key uranium development, and that profitability at all cost is not everything. “Ittenements in the Wiluna region of Western Australia (WA) from a is, therefore, important to strike the appropriate balance betweengroup of vendors headed by fellow listed player, Impact Minerals. The divergent views, and parties should engage each other meaningfullytenements, bought for A$1.3m ($1.36) in cash and 10m shares, at 15 and with mutual trust and respect,” he advised. Local economistcents/share, increase Toro’s Wiluna uranium resource by around 25%. Emile van Zyl says the continuous increases in the cost of living andMD Greg Hall says Toro is working on a Joint Ore Reserves Commit- widening gap between the poor and the rich are fuelling the strikes.tee (JORC) compliant resource update for the Wiluna region, and the The National Union of Namibian Workers Secretary General Evilas-two tenements, which cover around 70% of the Nowthanna project, tus Kaaronda says workers cannot survive on their pay and shouldshould constitute part of the revised consolidated resource when share in Namibia’s wealth.released this month. Hall earlier noted that Nowthanna is in the rela-tively early stages of project development, with significant potential, PARAGUAY/US: US-based Uranium Energy Corp (UEC) entered intogiven its higher-grade tenor, which allows it to withstand increases a property purchase agreement with three Paraguayan companiesin cut-off grade in the event of a higher development costs. Subject that will allow its Paraguayan subsidiary to acquire, subject to a grossto government and board approval, Toro plans to start production at overriding royalty, a 100% stake in six unencumbered prospectingWiluna by 2013. The project would involve mining up to 2mt/yr of permits covering approximately 740,000 acres. The permits aremineralised ore, over a 10-year period, producing 700t/yr of uranium located in an area contiguous on the northwest, west and east ofoxide concentrate. UEC’s Coronel Oviedo Project in central Paraguay, acquired in May. The latest acquisition increases UEC’s total package in Paraguay toCANADA: Crosshair Exploration & Mining Corporation has changed 987,000 acres. The purchase price for the property interests is the is-its name to Crosshair Energy Corporation to reflect its focus on sue of 100,000 restricted common shares in the capital of UEC and athe exploration and development of its North American uranium cash payment of $7,500. Anschutz Corp conducted reconnaissanceprojects. Crosshair’s trading symbols: CXX on the Toronto Stock exploration of the acquired areas from 1976 to 1983 with eight drillExchange and CXZ on the NYSE Amex will remain unchanged. holes showing uranium mineralisation. Uranium Energy also cov- ered the area in a recently completed carborne radiometric survey,JORDAN: The Jordanian French Uranium Mining Company (JFUMC), which outlined several promising drilling targets.a joint venture of Jordan Energy Resources and French AREVA,announced the discovery of some 12,300t of potential uranium RUSSIA: One of the miners’ rotation camps has been completed at theresources over an 18km2 area in central Jordan. JFUMC has been Khiagda site in the Republic of Buryatia as part of the preparationsexploring the area since 2009, and exploration is ongoing at secondary for the production programme for 2012. Uranium mining holdingadjacent areas, where the drilling programme will be completed by the Atomredmetzoloto (ARMZ) said about 100 workers would live in theend of the year. Based on preliminary results from this second explora- camp which is provided with electricity, heat and water. When phasetion phase, JFUMC is confident that the overall uranium potential will one of the complex is completed it will accommodate up to 200 people.exceed 20,000t. Jordan considers these resources strategic because The Khiagda company is mining uranium using in-situ undergroundthey could enhance its future nuclear fuel supply security. Technical leaching at Khiagdinskoye ore field. ARMZ estimates Khiagda reservesand economic studies will be conducted in 2012 to assess the feasibil- at 39,337t. In 2010, uranium output totalled 135.1t. It is planned toity of a uranium mine within the central Jordan licence area. achieve nameplate capacity in 2019 when Khiagda will mine up to 1,800t a year.KAzAKHSTAN: National nuclear company Kazatomprom may raiseits uranium production to 25,000-30,000t/yr if world market SPAIN/AUSTRALIA: Australia’s Berkeley Resources has begun thedemand supports the increase, said Kazatomprom Vice President licensing and permitting process for development of the RetortilloSergei Yashin. Current production stands at 20,000t - 33% of global and Santitad deposits within the Salamanca 1 uranium project inuranium production, Yashin said. The latest forecasts show that Spain. The deposits are 100%-owned by Berkeley, which intends toworld uranium demand will increase by half by 2030, he told the 6th develop Salamanca 1 as a stand-alone project. This will be indepen-Kazenergy Forum in Astana, adding that Kazakhstan was one of the dent of its joint venture with Spanish company Enusa to resurrectfew countries capable of rapidly increasing its uranium production. production at Enusa’s deposits in the same province. Berkeley hasSo far Kazakhstan has mined only 4.2% of its total uranium reserves. said this will simplify the path to construction and operation of Sala-Kazatomprom revised the outlook for Kazakhstan’s 2011 uranium manca 1, enabling licensing and permitting to proceed through theproduction to 19,900t. In 2010, its uranium production was 17,803t. regional government. Berkeley plans to use a biological heap leach-Kazatomprom operates 21 uranium mines in Kazakhstan. ing method to recover the uranium, with a preliminary feasibility study due by the end of the year. A programme to upgrade inferredNAMIbIA: In the wake of labour unrest that has affected Namibia’s to indicated resources at Retortillo and Santitad is ongoing. Berkeleyuranium mining as well as other industries, National Planning Com- expects the final estimates for its 100%-owned resources, to be pub-mission (NPC) Director-General Tom Alweendo has called for genu- lished later this year, will be around 12% down on current resourcesine dialogue between employers and employees to prevent future of 31.7m lbs (14,380t).mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 41
    • Uranium > Fuel - Enrichment to StorageUS: The Wyoming Department of Environmental Quality (WDEQ) USEC applied for a DOE loan guarantee in July 2008, but a decisionhas issued a mining permit for Ur-Energy’s Lost Creek in-situ recovery has been repeatedly delayed due to problems with the project. DOE(ISR) uranium project in Sweetwater county, Wyoming. The permit has not yet made a final decision on the application, which will remainauthorises Ur-Energy to build and operate the Lost Creek ISR uranium pending during implementation of the RD&D agreement.mine facilities, including the first mine unit. Ur-Energy earlier had However, DOE has stressed that it is not offering any assurancereceived a source and byproduct materials licence from the Nuclear that the RD&D discussions will lead to either a loan guarantee orRegulatory Commission, an aquifer exemption from the Environmen- further funding of the project.tal Protection Agency, a class 1 underground injection control permit DOE in May 2010 granted the US subsidiary of France’s AREVAfrom WDEQ, and approval of the development plan from the Sweet- a conditional commitment for a $2bn guarantee for a competingwater county government. Ur-Energy needs one more permit before enrichment project in Idaho. In a statement at the end of September,it can begin construction and operations: US Bureau of Land Manage- USEC said that layoffs would be likely unless DOE provided a con-ment approval of the plan of operations. Ur-Energy is a junior uranium ditional commitment before the beginning of November for a loancompany engaged in the identification, acquisition, exploration and guarantee. USEC has not said whether the latest agreement would bedevelopment of uranium properties in the US and Canada. sufficient to prevent those layoffs. In a related action, USEC strategic investors, US-based Babcock &US: The Interior Department’s Bureau of Land Management (BLM) Wilcox Investment Company (B&W) and Japan’s Toshiba Corpora-released the final Environmental Impact Statement (EIS) on its tion, have agreed in principle to further extend a standstill agree-proposed withdrawal of 1m acres (404,600 hectares) of federal lands ment related to their investment agreement until mid January 2012,near the Grand Canyon National Park from hard rock mining claims if USEC and DOE reach agreement on the framework for the RD&Dfor 20-years. BLM said the withdrawal would prevent individuals and programme. As part of their investment, Toshiba and B&W eachcompanies from staking new mining claims; however, currently ap- have a member on USEC’s board of directors.proved mining could continue and new operations could be approved Russia to starton valid existing mining claims. Up to 11 uranium mines could beoperational over the next 20 years under the proposal, including thefour mines currently approved. BLM Director Bob Abbey said thaturanium remains an important part of US comprehensive energy reprocessing RbMK fuelresources, but stressed the need to identify the predicted level ofmining and its impacts on the Grand Canyon. Interior Secretary Ken FROM 013 RUSSIA’S Production Association Mayak will start repro-Salazar will issue a final decision 30 days after the EIS release. cessing spent nuclear fuel from RBMK reactors, according to Mayak’s Deputy Director General Sergey Kirillov.FUEL - ENRICHMENT TO STORAGE This year, under a a pilot project, substandard RBMK fuel from unit 1 at Leningrad nuclear power plant (NPP) will be moved toUSEC centrifuge plant Mayak and reprocessed. In 2013, Mayak will start taking RBMK spent fuel from on-site NPP storage facilities.still on hold Initially Mayak will deal with around 50t a year “with further increases”, Kirillov said. The first fuel taken from will be LeningradUS ENRICHER USEC and the US Department of Energy (DOE) have NPP followed by the Kursk and Smolensk plants.agreed that a troubled centrifuge uranium enrichment project in Ohio The RT-1 plant at Mayak was initially built to reprocess spent fuelwill not be abandoned while DOE puts the company’s application for a from VVER and RBMK reactors. However, until 2000 reprocessing$2bn federal loan guarantee on hold. of RBMK fuel was considered uneconomic. At that time, VVER-440 DOE and Bethesda, Maryland-based USEC will work jointly on a fuel was reprocessed, which had a relatively low burnup. But as burnupresearch, development and demonstration (RD&D) programme that increased, the content of uranium-235 in spent fuel became the samewill keep the American Centrifuge Plant project on a path to com- as in RBMK spent fuel and reprocessing was reconsidered.mercialisation, USEC officials said. Under the agreement, USEC will At present, 650t of substandard RBMK spent fuel is stored at NPPdevelop some 720 centrifuges. sites and this is expected to increase to 1,250t. In addition, standard The RD&D programme is expected to involve manufacturing and operat- spent fuel, for example, at Leningrad NPP’s four reactors is increas-ing additional production-design machines so that key systems can be tested ing each year by about 1,500 assemblies. As of the end of 2010, moreas they would operate at the scale necessary for full commercialisation. than 40,000 spent fuel assemblies were stored at the Leningrad site A cost sharing agreement under discussion would involve an 80- . Ukraine fuel plant gets20% federal-private cost split during the initial technology verifica-tion phase and a 20-80% split for the remainder of the programme. Congress will have to authorise the use of DOE funds, and agencyspending would be capped at $300m. There is as yet no timetable for local approvalthe project. USEC is working with its strategic investors to determinehow best to structure on going investment in the project and move PUbLIC HEARINGS ON the construction and operation of a nuclearforward with this RD&D programme and future commercialisation. fuel fabrication plant in Ukraine, held in Smolino village in Kirovo-The company said that if an agreement is reached with DOE, further grad region, have unanimously voted to approve the project.demobilisation of the trouble-plagued project would be avoided. A feasibility study will now be forwarded for review and approval4 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Fuel - Enrichment to Storageto the Ukrainian government. According to Russia’s Fuel company provides for plutonium stored at the MCC to be used in fuel for BNTVEL which won the bid for the 400t/year plant, says it will be com- reactors. The cost of the project is RUB7bn ($226.5m). MCC Deputymissioned in three phases. Chief Engineer Konstantin Kudinov says the new industrial facil- The first phase will include sections for charging fuel rods and ity, which will be built inside a mountain, will create more thanbundling fuel assemblies, and a section for manufacture of some 400 jobs. The combine plans to start producing mox-fuel in 2014. Acomponent parts as well as the plant infrastructure. preliminary environmental impact assessment was presented at the The second phase will include a section for making zirconium hearings which approved development of the mox-fuel fabrication fa-component parts and additional infrastructure. The third phase will cility by 213 votes with one abstention and no votes against the plan.be for production of fuel pellets and powders, and additional infra-structure. The plant will employ about 250 people. The first phase TAIwAN: Test operations are expected to begin in early 2012 atcould be commissioned in 2015 and phase threee in 2020. Taiwan’s first used fuel interim storage facility. The Atomic Energy FC TVEL says it is ready to ensure access to financing for up to 60% of Council (AEC), said operator Taipower would apply in Novemberthe cost of the plant’s construction which is estimated at $300-350m. for a licence to begin commissioning the facility, which is located at FC TVEL Vice President Vasiliy Konstantinov said the feasibility the Chinshan NPP. Full facility operation may not begin until 2013.study is 90% complete. Production should start three years after the Taiwan operates six reactors at three NPPs, and has two more unitsfeasibility study is approved. The agreement on the construction of under construction. Nuclear power provides about 25% of Taiwan’sthe plant was signed in October. Early in September a joint venture baseload electricity. Taiwan imports all of its nuclear materials and(JV) was set up with Ukraine holding a controlling stake (50% plus services, and plans to have a geological repository for used fuel inone The JV will also be formalised by the end of the year. operation by 2032. Currently, used fuel is stored in pools at the reac- tor sites, which AEC describes as “almost full”. AEC gave Taipower aRussian fuel tests postponed licence to begin building the Chinshan dry storage facility in 2008,However, Ukraine has decided to postpone operational testing of im- but will not issue an operating licence until it has inspected the com-proved TVSA-12 nuclear fuel assemblies made by FC TVEL which was to pleted facility and qualified pre-operational tests.have begun in 2012 at Ukrainian nuclear power plants (NPPs), a sourcein the Energy and Coal Industry Ministry told Interfax-Ukraine. UKRAINE: The upper house of parliament (Superior Rada) in mid He said a feasibility study on the use of TVSA-12 submitted by TVEL October approved a bill calling for centralised storage of used nuclear“did not show any obvious competitive advantages of the new fuel”. fuel. The bill provides for construction of a centralised storage facil- In early 2011 Ukrainian nuclear utility Energoatom and TVEL ity for used fuel from Ukrainian NPPs. The plan calls for building theforecast that the operational testing of the new fuel would start in facility within the Chernobyl exclusion area, specifically, between2012. It was expected that a pilot batch of 42 test assemblies would the villages of Staraya Krasnitsa, Buryakovka, Chistogalovka andbe loaded into unit 6 at Zaporizhia NPP. Stechanka in the Kiev region. The facility will use surface dry stor- Despite the postponement, TVEL does not rule out the future age technology, and will have a total capacity of 16,529 assembliestransfer of the TVSA-12 technology to Ukraine as part of the Smo- from VVER-440 and VVER-1000 reactors. It will become part oflino fuel fabrication plant project. TVSA-12 fuel has been used at the common spent fuel management complex of the state-ownedRussia’s Kalinin-1 since 2006. They are fourth generation assemblies company Chernobyl NPP. An explanatory note to the bill says con-with 12 spacer grids and a stiffer skeleton. In addition to Ukraine, FC struction of the facility will be funded by loans, which will be repaidTVEL plans to supply TVSA-12 to Kozloduy N-plant in Bulgaria. by nuclear utility Energoatom out of electricity rates during the four years after the facility is commissioned. Energoatom now is payingFuel briefs Russia for temporary storage and reprocessing of used fuel. US: Babcock & Wilcox Company’s (B&W) subsidiary Nuclear FuelKAzAKHSTAN/US: Some 33kg of highly enriched uranium (HEU) has Services (NFS) has been awarded a $114.7m contract for fuel manu-been removed from the Institute of Nuclear Physics in Almaty, Ka- facture and delivery and support services for the US Naval Nuclearzakhstan, and downblended into low enriched uranium (LEU), the Propulsion Programme. NFS President Joseph G Henry said sup-US National Nuclear Security Administration (NNSA) announced. port of the naval fuel programme was an important part of B&W’sThe HEU, fresh fuel for the research reactor at the institute, was business portfolio. He added that NFS had developed the process forshipped to the Ulba Metallurgical Plant in Ust-Kamenogorsk in manufacturing naval nuclear fuel. NFS manufactures fuel for theAugust and has now been converted to LEU. This will be returned to US Navy’s nuclear powered aircraft carrier and submarine fleet, andthe institute where NNSA’s Global Threat Reduction Initiative and processes highly enriched uranium in a facility licensed by the USKazakhstan are working to convert the research reactor from the use Nuclear Regulatory Commission (NRC).of HEU to LEU fuel. The removal and downblending of the HEU fuelwas a combined effort between NNSA, the Kazakh government and US: NRC in mid October issued a licence to AREVA Enrichment Ser-the International Atomic Energy Agency (IAEA). vices (AES) to build and operate the Eagle Rock Enrichment Facility, a gas centrifuge enrichment plant in Bonneville County, Idaho. TheRUSSIA: The city of Zheleznogorsk hosted the public hearings on licence authorises AES to enrich uranium up to 5% by weight for useconstruction of a mixed oxide (mox) fuel production facility at in the manufacture of fuel for commercial nuclear power plants. AESthe Mining and Chemical Combine. The facility will supply fuel to plans to begin construction in 2012. AES applied for the licence inthe BN-800 fast reactor being built at Beloyarsk NPP. The project December 2008. In September 2010, the NRC staff issued a safetymccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 43
    • Fuel - Enrichment to Storage > waste Managementevaluation report that concluded the proposed facility complied with Glenn Sjoden, a professor of nuclear engineering at GeorgiaNRC regulations and would not pose an undue health or safety risk Technical University, urged the commission to consider reviving theto workers or the public. A February 2011 environmental impact Yucca Mountain project. The commission’s charter explicitly pro-statement concluded there would be no significant impacts from the hibits it from considering Yucca Mountain or any other site. Sjodenfacility. NRC’s Atomic Safety and Licensing Board held a public hear- also called for consideration of reprocessing, and said that Franceing on the proposal in January 2011, and issued its decision authoris- reprocesses 85% of its spent fuel.ing the agency staff to license the facility in October. The commission’s draft report, which is being discussed at a series of public meetings nationwide, called for creating a new organisationUS: Used nuclear fuel is not “waste”, says astronomer Patrick with the authority to make better use of the Nuclear Waste Fund toMoore, a former director of Greenpeace International. He told the support nuclear waste management.Governor’s Conference on Energy in the US state of Virginia that While supporting efforts to develop one or more permanentit was a resource that could be reused to make energy. Moore split disposal sites, the commission also recommended consolidatingwith Greenpeace when he concluded that nuclear power represented spent fuel now scattered at plants across the country into one ora safe, environmentally sound energy source. A similar message more interim storage facilities. The commission will make formalwas delivered by Eric Knox, with San Francisco, California-based recommendations to the Secretary of Energy in January, taking intoengineering firm URS Corp. Knox said that for a number of years, consideration public comments.there was no business case for reprocessing, but now it “just makesso much sense”. Adrian Heymer with the Nuclear Energy Institute, a Yucca Mountain alternative usesUS nuclear industry association, stressed the safety of used fuel stor- At the request of US Senate Majority Leader Harry Reid, the US Gov-age. He said used fuel at Japan’s earthquake and tsunami-devastated ernment Accountability Office (GAO) has reviewed possible alterna-Fukushima-Daiichi nuclear power plant (NPP) came through the tive uses for the Yucca Mountain site in Nevada, once designated byplant meltdowns safely. Officials from Virginia’s North Anna NPP, the US government as the host site for the nation’s repository forhit by a much smaller earthquake in August, also said used fuel held spent fuel and high-level radioactive waste.in dry storage at that site was not damaged. The site is adjacent to two national security sites: the Air Force’s Nevada Test and Training Range and the Department of Energy’swASTE MANAGEMENT Nevada Nuclear Security Site, formerly used for above- and below- ground nuclear weapons testing.US waste solutions The GAO report, Yucca Mountain: Information on Alternative Uses of the Site and Related Challenges, said experts identified alternativeconsidered uses in five broad categories: nuclear and radiological uses, such as a spent fuel reprocessing site; defence or homeland security activities,wITH THE DEMISE of the Yucca Mountain project in Nevada, a new US such as testing systems to detect radioactive materials; informationhigh-level waste repository will be needed, said Paula Marino, Vice technology uses, such as secure electronic data storage; energy devel-President of Engineering for US energy producer Southern Nuclear. opment or storage, such as using the site for renewable energy devel- Speaking to a mid October meeting in Atlanta of the federal blue opment; and scientific research, such as geology or mining research.ribbon task force on waste management, Marino said that the tech- GAO pointed out that the most notable features at the site are twonical knowledge developed for the Yucca Mountain project should large tunnels, one about five miles long and 25ft in diameter, and thebe preserved, and that research should be conducted to improve other about two miles long that branches off the main tunnel of theexisting repository designs. former Exploratory Shaft Facility. She also called for “depoliticising” any new organisations created . EU studies find geologicalto handle nuclear waste. Southern operates six reactors: two at theVogtle nuclear power plant (NPP) in Georgia; two at Hatch NPP, alsoin Georgia; and two at Farley NPP in Alabama. Hatch and Farley havebuilt on-site dry storage facilities. disposal effective Bobbie Paul, executive director of the Southern Alliance for CleanEnergy, which opposes a two-unit new-build proposal at Vogtle, urged EUROPEAN SCIENTISTS STUDYING the geological disposal of high-the Blue Ribbon Commission on America’s Nuclear Future not to create level radioactive waste (HLW) concluded that the process is anany interim storage facilities or allow the transportation of used fuel. effective isolation barrier for tens of thousands to millions of years. Susan Corbett, Chairman of the South Carolina chapter of the Writing for the June e-news bulletin of the European Nuclearenvironmental group Sierra Club, said South Carolina may be consid- Society (ENS), researchers at Laboratoire Subatech in France andered as an interim storage site because the state hosts the Depart- SCK-CEN in Belgium based their conclusions on the results of twoment of Energy’s Savannah River Site. Interim could very easily EU-funded waste research projects they coordinated.become “permanent”, she said. SCK-CEN coordinated field work for the Glamor project carried out Georgia Public Service Commission Chairman Stan Wise said between 2002 and 2006. It was followed by the 2007-2010 MicadoGeorgia ratepayers have paid at least $586m into the federal Nuclear project, coordinated by Subatech.Waste Fund. He said that $7bn collected nationally “was spent on Both studies assessed the uncertainties in existing modelsan 8,000 page licence application and a tunnel”, and that the pro- predicting the dissolution rates of nuclear waste from the open andgramme now is at an “impasse”. closed fuel cycle over geological time periods.44 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • waste Management Glamor assessed the uncertainties of models of the the dissolutionof vitrified waste glass in pure water without additional materials, AREVA signssuch as bentonite or metallic corrosion products. It concluded that HLW waste blocks could be expected to retain Ukraine waste pactintegrity for more than 100,000 years. It noted that the final dissolu- UKRAINIAN NUCLEAR UTILITY Energoatom and France’s AREVA plantion rate could be as much as 10,000 times less than initial rates, a to sign a framework agreement in mid November on cooperation onkey factor to ensuring block longevity. However, remaining uncer- radioactive waste and used nuclear fuel processing, said Energoatomtainties over the mechanisms that affect dissolution rates provided Vice President Natalia Shumkova.the basis for subsequent model development. She said one possible option for future cooperation could be for Micado brought together the expertise of waste management AREVA to process nuclear fuel made by Toshiba subsidiary Westing-agencies, regulatory technical support bodies and research organi- house and used at South Ukraine nuclear power plant (NPP).sations from Belgium, France, Germany, Spain, Sweden, Switzer- The Ukrainian parliament in late October approved at first reading aland and the UK. bill to authorise construction of a central used fuel storage facility. She They undertook uncertainty analyses about how radionuclides said the Westinghouse fuel could be taken to France for processing,would be released from used fuel structures, including cladding and and high-level waste (HLW) would be returned to Ukraine for storage.glass, over different time intervals: for the first few thousand years, Shumkova said Energoatom plans to cooperate with AREVA in thewhen a container was intact; and for the next few hundreds of thou- purchase of containers for removing HLW obtained during the pro-sands of years, when a container had corroded and released a lot of cessing of used fuel. Noting that Russia does not have a container fleethydrogen; and very long subsequent time periods, where there was to bring HLW back to Ukraine, she said Ukraine was ready to buy theless hydrogen, but containers were even less likely to be dependable. containers from France to place in its national storage facilities. The project concluded that the dissolution rate of vitrified glass The French have well developed logistics for this, she added. Shecontainers (from reprocessing) and fuel rod cladding was slow; be- said talks with AREVA would determine whether Ukraine opted totween 0.02 and 5 micrograms/m2 per day in the latter two periods. buy containers, or buy the technology and set up a joint venture to This meant that the largest contribution to dose would come from produce the containers in Ukraine.the radionuclides in non-confined zones of the fuel, rather than for Energoatom sends used fuel from seven VVER-1000 reactors forinstance the fuel pellet, and that the resulting lifetime of the spent storage in Russia’s Krasnoyarsk-based mining and chemical combinefuel [glass and cladding] is significantly longer than 106 years. Both and from two VVER-440 reactors to Russia’s Mayak productionstudies identified further areas for research. centre in Chelyabinsk. Ukraine must begin taking back HLW from these activities inDounreay begins work 2013. Used fuel from the VVER-1000 reactors at Ukraine’s Zapori- zhia NPP is not taken to Russia, but placed in dry storage at a facilityon LLw store near the plant commissioned in 2001.wORK wILL bEGIN in November on a £100m ($160m) low-level waste westinghouse team gets(LLW) store at the UK’s former nuclear site at Dounreay, Scotland.The store will include up to six shallow vaults, with the first ex- bulgarian waste dealpected to begin accepting waste in 2014. The demolition of Dounreay is expected to fill up to 7,000 shipping TOSHIbA SUbSIDIARY wESTINGHOUSE has signed a multi-million dollarcontainers with contaminated debris, which will be grouted before contract to design the low- and intermediate-level waste ( LLW/ILW)disposal in the vaults, which are being constructed by Graham Con- repository at the Kozloduy nuclear power plant (NPP) in Bulgaria.struction. The vaults are designed to house 240,000t of LLW. A consortium comprised of Spanish waste management company The Nuclear Decommissioning Authority (NDA) will fund the site, ENRESA, Westinghouse Electric Spain (WES) and DBE Technologywhich will accept LLW from decommissioning at Dounreay. Con- signed the contract with SERAW, the Bulgarian State Enterprisetaminated material will be placed in 500l steel drums, which will be responsible for managing radioactive waste under an agreement withcompressed and put in shipping containers filled with cement, then the European Bank for Reconstruction and Development.moved to the vaults and covered with more cement. WES led the bid, based on the company’s experience on the El However, the breakdown of a 2,000t super-compactor which Cabril project (Spain’s LLW/ILW repository), which it designed in thecompacts the steel drums to about a fifth of the original size means 1980s. Kozloduy offered WES and ENRESA their first opportunity todrums currently awaiting treatment are accumulating at the plant.. take advantage of the El Cabril technical and operational experience Meanwhile, Dounreay Site Restoration Ltd (DRSL) has invited in a market outside Spain.bids from seven pre-selected companies for the design and construc- Westinghouse’s Decommissioning & Dismantling and Wastetion of a plant to grout low-level waste (LLW) at Dounreay. Management (D&D & WM) division has worked across Europe for The companies are Costain Oil Gas & Process Ltd, Graham more than 20 years. Westinghouse has participated in D&D proj-Construction, Nuvia Ltd, NUKEM Technologies, ONET Technolo- ects that include those at the Vandellos I NPP, Zorita NPP, El Cabrilgies UK, Portasilo Ltd and Redhall Nuclear Ltd. DRSLexpects to and CIEMAT restoration in Spain; ISPRA (Italy/European Union)award the contract in March 2012 for plant to be operational by and La Latina NPP (Italy); Mochovce (Slovakia), Chooz A (France),April 2014. Sellafield in the UK.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 45
    • waste Management Westinghouse Vice-President for the Southern Europe region, Jose Lithuania’s radioactive waste management agency (RATA), con-Emeterio Gutierrez said the contract further demonstrates Westing- struction of facility B3/4 (management and storage of solid radwastehouse’s commitment to the Bulgarian nuclear market. complex) is moving forward, but construction of the B2 facility (solid radwaste retrieval complex) is “seriously delayed.”Serbia builds “It may happen that the disposal facility is already available, but there is no waste to dispose,” he said.storage facility Vaidotas also said that while he hoped B1 would be commis- sioned in 2012, there were still some open issues related to the used fuel storage containers and modernisation of the hot cell toSTATE OwNED NUCLEAR Facilities of Serbia (NFS) is building a radio- repackage fuel in the storage facility. The containers, he said wereactive waste storage facility on a 70-hectare site at the former Vinca “too heavy” for B1, with one container, at 117t, approaching theNuclear Research Institute. Construction has taken four years on what legal weight limit of 125t.NFS describes as a “state-of-the-art” radioactive waste storage facility. waste briefs The size of the new facility has left environmentalists speculat-ing about whether Serbia expects to import radioactive waste fromabroad. Radojica Pesic, CEO of NFS, has denied that Vinca will takeforeign radioactive waste, citing Serbia’s law on nuclear safety and GERMANY: Angry protesters greeted the arrival of a radioactive wasteprotection against ionising radiation, which prohibits the import of shipment at a northern Germany long-term storage facility at Gor-radioactive waste and used nuclear fuel. leben, Lower Saxony. The shipment comprised 11 containers of high- Two old facilities at Vinca, known as Warehouses X1 and X2, store level waste (HLW) from the La Hague facility in France, which hadradioactive waste generated by nuclear research, industry and medi- reprocessed fuel from German NPPs. Environmentalists and otherscine in the former Yugoslavia. Warehouse X1 is full to capacity and charged that the new design containers (TN 85) emitted 40% moresealed. Warehouse X2 is in use, but is considered substandard. neutron radiation than the old container design. The TN 85 contain- Eventually, all the waste will be transferred to the new facility, ers have shells designed to withstand greater heat from the HLW.known as Warehouse X3. Serbian officials acknowledge that both German officials said tests showed radiation was within legal limits.the International Atomic Energy Agency (IAEA) and the US StateDepartment have pressured Serbia to replace the dilapidated Ware- SLOVAKIA: Power producer Slovenske Elektrarne (SE) plans to cuthouses X1 and X2. liquid radioactive waste to 5% of current volumes. SE wants to Next to Warehouse X3 is another, smaller new building known implement the waste reduction project in both its NPPs: Jaslovskeas the Safe Storage of Strong Sources (BS), where depleted uranium Bohunice and Mochovce. SE already has applied for licensing for the(DU) munitions dropped from NATO’s A-10 aircraft during the 1999 new process. SE plans to supplement its existing system of modifica-war will also be stored. tion and processing of liquid waste with additional filtration equip- The DU munitions currently are stored in Warehouse X2. Pesic ment and a dryer to decrease the final volume of waste that must besaid Warehouse X3 has the capacity to store 8,600 drums of 200 processed by an outside company. SE hopes to cut waste processinglitres each, or 1,700m3 of radioactive waste. costs, and intends to launch the project in Mochovce next April, and This warehouse, he says, is not the biggest in Europe, but “it is the three months later in Bohunice. The new waste system should be inbiggest empty warehouse in Europe at the moment.” The new ware- place by February and December of 2013, respectively.house, which cost €2.5m ($3.4m), has received an operating licencefrom the Ministry of the Environment, Mining, and Spatial Planning. SwEDEN: The Swedish Radiation Safety Authority (SSM) recommend- ed tripling the fee paid by the nuclear power industry for managementContinuing tension over of nuclear waste. SSM was asked to assess fees nuclear generators should pay into the Nuclear Waste Fund for the next three years. BasedLithuanian storage on information from relevant organisations, including cost estimates from Swedish Nuclear Fuel and Waste Management Co (SKB), SSM recommended that the fee should be set at SEK0.003/kWh ($0.003/CONSTRUCTION OF THE interim dry storage facility for used nuclear kWh) of nuclear electricity produced. The current level is SEK.001/fuel (Project B1) at Lithuania’s Ignalina nuclear power plant (NPP) kWh. SSM said much of the increase resulted from new SKB estimateswill be completed in 2012 if the customer and contractor reach an that he remaining costs of the planned final repository for used fuelagreement, according to Andreas Weichard, director for Eastern had grown by about SEK18bn ($2.7bn) compared with 2008 estimates.Europe at Nukem Technologies. SSM said it believed SKB underestimated future costs, and adjusted The facility is almost complete, and all necessary equipment has the proposed fee to reflect this. SSM submitted its proposals to the gov-been supplied, Weichard said. Only the roof waterproofing technol- ernment, which will make the final decision. Earlier this year, SKB ap-ogy remains under construction. plied for a licence to build a final used fuel repository at Forsmark. Site Construction of a complex for management and storage of solid preparation work is expected to begin in 2013, with full constructionradioactive waste (Project B2/3/4) also is near completion. Since all expected to start in 2015. Operation is planned for the early 2020s.the equipment is available, installation and start-up can take place in2013,” Weichard said. US: The Nuclear Regulatory Commission (NRC) has proposed draft However, according to Algirdas Vaidotas, deputy director of guidance that would allow uranium recovery facilities to accept,46 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • waste Management > Clean upprocess, and dispose of resins used to remove naturally occurring would last until 2042 and cost CZK31.3bn ($1.7bn). The Counciluranium from municipal drinking water systems. The regulator will of Economic Ministers still has to discuss the work, said Primeaccept comments on the proposal until mid November. The guidance Minister Petr Necas. He said remediation is inevitable, becausewould clarify that NRC considers the resins “equivalent feed”, es- more than 4mt of sulphuric acid and hundreds of thousands ofsentially identical to material already processed by uranium recovery tonnes of other chemicals have drained into the ground. Thefacilities, and would allow these facilities to process such resins Council of Economic Ministers will also discuss financing. Necaswithout obtaining a licence amendment. said these discussions would centre on whether to make a single, 30-year commitment, or take the decision in stages. He defendedUS: The Utilities Service Alliance a cooperative of 15 US utilities, has simultaneous discussions of future uranium mining in the Czechentered into an agreement to dispose of low-level radioactive waste Republic, but agreed that this would be contingent on finding(LLW) in a soon-to-be-opened repository in Texas. Dallas-based Waste environmentally friendly mining methods, as well as effectiveControl Specialists (WCS) announced the agreement, which is still methods to remediate past contamination.subject to regulatory approval. WCS CEO William Lindqvist said fiveof the 17 NPPs represented by the alliance had already committed to RUSSIA: State nuclear corporation Rosatom plans to begin develop-ship their LLW to WCS’s Texas repository. WCS is building the reposi- ing a long-term national strategy on “nuclear legacy” problems.tory in western Texas near the border with New Mexico. The reposi- Oleg Kryukov, head of Rosatom’s nuclear and radiation safety di-tory is licensed to dispose of all three US categories of LLW (classes A, rectorate, said it would take 18 months to develop the programme,B, and C). The repository is expected to open in November and begin which would cover a period of 50-70 years. Kryukov said Rosatomreceiving waste in December. Alliance members collectively operate would inventory Russia’s nuclear facilities, determine their mis-27 nuclear reactors. The alliance was established in 1994 to allow utili- sions, and plan for decommissioning. The effort has been partiallyties with only a single NPP site to share resources, consolidate selected started in the frames of an existing federal target programme, how-support functions, and source products and services. ever, the focus has been on problems requiring urgent solutions. The new programme also must create a business environmentCLEAN UP where work can be carried out effectively.Spent fuel imports UKRAINE: Construction of the New Safe Containment (NSC) over the Shelter facility at Ukraine’s Chernobyl NPP will be completedfund Mayak clean-up in 2015, according to Plant Manager Igor Gramotkin. Work is con- tinuing on the fifth licensing package, which covers foundations,PUbLIC HEARINGS AT Russia’s Production Association Mayak in Oz- main crane systems, metal structures, lining and process build-ersk (Chelyabinsk) have approved the continued import of spent fuel ings. The most difficult part of the effort is the design of the arch,assemblies from research reactors in Ukraine, Uzbekistan, Poland, he said. The arch will be 108 metres high and span 250 metres. Itand Romania, the proceeds of which are used to finance environ- must have a lifetime of at least 100 years. The dry storage facilitymental clean-up programmes. for used fuel is also expected to begin operation in 2015. Regula- The special environmental programmes have been under way in tory authorities have approved a conceptual design, and contrac-the Chelyabinsk region since 2006. According to Tatiana Meshkova, tor Holtec International will start work on the detailed design.division head at the regional Ministry for Radiation and Environ- Chernobyl authorities also hope to begin operations in 2012 of amental Safety, proceeds from future spent fuel imports will be used facility to manage solid radioactive waste. In December, equipmentto build water supply and sewage piping and inner village roads. will be installed at a liquid radioactive waste processing plant to be Some of the funds will be spent to complete the rehabilitation of commissioned in 2012.the area around Muslyumovo village and flood lands of the Techariver which were heavily contaminated as a result of defence related UK: Sellafield workers have removed more than 1,000m3 ofnuclear projects at PA Mayak in the 1950s. radioactive sludge from six large concrete tanks. The sludge was Funds to be channelled to the Chelyabinsk region budget are put a product of fuel reprocessing liquid effluent treatment methodsat RUB91m ($3m). used in the 1950s. Sludge removal is running months ahead of Mayak’s radiochemical plant (RCP) Acting Director Dmitry schedule. The first tank was emptied in 2005, two more have beenKolupaev said some of the money was used to build special lines emptied since Nuclear Management Partners (NMP) took over theto channel waste accumulated as a result of reprocessing activities management of Sellafield Ltd and the fourth is almost emptied.related to the weapons programmes. To date, the design work has The sludge has been placed in a modern, high-integrity holdingbeen completed and construction and stage-by-stage commissioning vessel pending process through Sellafield’s current effluent plants.of the RCP special line is planned. It will then be mixed with cement in stainless steel drums and so- lidified for long-term storage. The UK Nuclear DecommissioningClean up briefs Authority (NDA) expects the process will take about two years. Ian Hudson, head of NDA’s Sellafield programme, said sludge re- maining in old sea tanks was one of the main environmental andCzECH REPUbLIC: The cabinet has deferred a decision on remediat- safety hazards at Sellafield. With two tanks left to empty, workersing former uranium mines in the Staz pod Ralskem area. Under have already dealt with almost 80% of the radioactive inventorya proposal from the Trade and Industry Ministry, remediation from the old tanks.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 47
    • Decommissioning > Nuclear MaterialsDECOMMISSIONING UK: Operations to remove the fuel from the two shut down Magnox reactors at the UK’s Calder Hall NPP at Sellafield have begun. The fourRussia to develop 50MWe units at Calder Hall, the world’s first industrial-scale NPP, were shut down in 2003 after 47 years of operation. Its four coolingdecommissioning concept towers were demolished in 2007, but the used fuel has remained in place. Defuelling is expected to take up to six years. The fuel will be re-RUSSIA PLANS TO select a concept for decommissioning its nuclear processed on the Sellafield site. After the fuel is removed, the reactorsfacilities in 2012, said Alexander Rokshin, Deputy Director General and associated infrastructure will be decommissioned to allow Calderof state nuclear corporation Rosatom. Currently two options are Hall to enter a “care and maintenance” phase, where the reactorbeing considered: a green field option that would leave no trace of buildings will be continuously monitored until the site is completelyformer nuclear activities, and a brown field option that would leave cleared. Plans call for completion of decommissioning in 2017.some structures that pose no radiation hazard on the site. In 2010, Russia decommissioned 10 nuclear and radiation hazard- NUCLEAR MATERIALSous facilities, according to Yevgeny Komarov, head of office for devel-opment of a system for NRHF decommissioning at Rosatom. Last year, decommissioning began at 151 facilities. The govern- Activists sue to stopment intends to complete decommissioning at 42 facilities by 2015,82 by 2020, and about 120 by 2025. Los Alamos plutonium lab Komarov also said that, by 2015, Russia should complete a nuclear US NUCLEAR wATCHDOG group Los Alamos Study Group has filed aindustry-wide system for decommissioning, an inventory of Ro- second lawsuit seeking to halt construction of a $5.8bn plutoniumsatom facilities, and an assessment of the nominal cost of decommis- research laboratory at the Department of Energy’s (DOE) Los Ala-sioning. A regulatory legal basis for the industry-wide system also mos National Laboratory in New Mexico.should be completed. Russia also will develop a strategic timetable The suit filed in a US district court aims to force the laboratory tothrough 2050 and build three pilot demonstration centres and consider cheaper alternatives to the project. DOE’s National Nuclearimplement two pilot decommissioning projects. Safety Administration (NNSA), which manages the lab, in October Russia so far has spent $46.2m to decommission uranium-graphite approved issuing a bid request for final design and construction of thereactors under a federal target programme on nuclear and radiation Chemistry and Metallurgy Research Replacement (CMRR) project.safety, according to Dmitry Mikhailov, head of Rosatom’s project CMRR would replace a 60-year-old building that has been declaredoffice PDC UGR. Total budget allocations for decommissioning urani- seismically unsafe. The project has been on the drawing board forum-graphite reactors in 2008 to 2015 totals $144m. The programme decades, and DOE expects it will take another decade to complete.covers 19 reactors, of which 15 are already shut down. Critics have fought the facility since it was first proposed, arguing Mikhailov said that seven buildings at the Siberian Chemical Com- that it is not needed and is prohibitively expensive. The latest lawsuitbine would be demolished this year under the programme. Decom- contends that NNSA failed to evaluate alternatives as required by themissioning of cooling towers and below ground equipment would National Environmental Policy Act.also continue. Last year, Los Alamos Study Group filed a lawsuit that contended At the Beloyarsk nuclear plant, radioactive waste accumulated DOE and NNSA violated federal law by preparing to build CMRRearlier will be removed and reprocessed. At the Mining and Chemical without a new environmental impact statement or without properlyCombine in Zheleznogorsk (Krasnoyarsk) , design work and drafting considering alternatives. A federal judge dismissed the earlier law-of a safety justification document has begun. suit in June after NNSA released a new project review.Decommissioning briefs US supportsLITHUANIA: The government and the European Union (EU) continue isotope productionto argue over financing for the decommissioning of Lithuania’sIgnalina NPP. Lithuanian Prime Minister Andrius Kubilius has THE ObAMA ADMINISTRATION has signed a $4.6m deal to promotereiterated that Lithuania is dissatisfied with the project, in terms domestic production of medical isotope molybdenum-99 (Mo-99)of the performance of contractor Nukem and the EU’s projected without using highly enriched uranium (HEU), the US Nationalfinancing. Lithuania asked the EU to allocate $1.2bn for decom- Nuclear Security Administration announced in early November.missioning in the 2014-2020 budget, although Brussels only plans The cost-share agreement with NorthStar Medical Radioisotopesto budget a combined $972m for decommissioning in Slovakia, in Wisconsin would speed up development of proprietary systemsBulgaria and Lithuania. Lithuania says this amount is inot enough that would help establish a more stable Mo-99 supply.to complete the work by its 2029 deadline, and has warned that the Mo-99, though a decay process, produces technetium 99m, whichwork could be pushed back indefinitely. The EU, in turn, complains is used worldwide, particularly for diagnosing heart disease and can-that $396m already paid to Lithuania is currently not accounted for cer. The US cannot currently produce Mo-99, while reactor closuresand says Vilnius is not investigating the discrepancy.. When news in Canada and elsewhere have limited available supplies. NNSA isof the missing funds surfaced in 2010, Brussels threatened to halt cooperating with four private US groups to develop a US Mo-99 pro-further financing. duction capability that does not require HEU.48 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • New Technologies > PeopleNEw TECHNOLOGIES and medium nuclear power facilities using SVBR-100 technology. The pilot reactor is planned to start up in 2017. Total investmentSouth Carolina to set up is estimated at RUB16bn ($513.5m).nuclear centre US: Supporters of fast reactor research have placed a petition on the White House web site to renew funding and restart the integral fastIN MID OCTObER, the University of South Carolina (USC) an- reactor (IFR) programme. The White House has said it will considernounced that it would establish the General Atomics Centre for petitions that gain more than 5,000 signatures, and the IFR petitionDevelopment of Transformational Nuclear Technologies within has until the end of October to meet the deadline. One of the argu-USC’s engineering department. ments made in favour of IFR is that it can burn used fuel from light- San Diego, California-based nuclear technology company General water reactors, and elements in the used fuel that cannot be recycledAtomics will provide $900,000 for the centre, and the state will have half-lives of 300 years or less.provide $3m in proceeds from the state lottery. The centre will research technologies for recycling used fuel, better US/ITER: The US ITER Project Office at the Department of Ener-resource utilisation and waste reduction, and technologies for faster gy’s (DOE) Oak Ridge National Laboratory in Tennessee awardedand less expensive construction of nuclear power plants (NPPs). It a $13.2m task order to AREVA Federal Services for fabrication ofalso will train new engineers and scientists in nuclear technology. five drain tanks for the ITER tokamak cooling water system. The Dr Tony Ambler, dean of the USC engineering school, said the ITER device, under construction in south France, aims to dem-university has launched a nationwide search for a recognised expert in onstrate the scientific and technical feasibility of fusion energy.transformation nuclear technologies and concepts to head the centre. ITER is intended to produce 500MWe of fusion power with first The General Atomics Centre is the second USC-based state plasma planned for 2020. AREVA Federal Services won the bidCentre of Economic Excellence (COEE) dedicated to nuclear tech- for the cooling water system in 2009. Joseph Oat Corporation, anology. The first was dedicated to the design and development of privately held family business founded in 1788, will manufactureadvanced materials needed to extend the life of existing NPPs and the tanks in Camden, New Jersey. The drain tanks will be amongto develop new reactors. the first equipment installed inside the ITER tokamak building, and must be delivered by January 2014. The US is one of sevenNew technology briefs ITER members, along with China, the European Union, India, Japan, Korea and Russia.AUSTRALIA: Queensland University of Technology has developed a PEOPLEnanofibre technology that removes radioactive waste from con-taminated water and aid clean up after nuclear disasters. Chemis-try professor Huai-Yong Zhu said the process uses the world’s first On the moveintelligent absorbent, which uses titanate nanofibre and nanotube US: Ken Langdon has been named Vice President for Constella-technology. It firmly binds radioactive material from contaminated tion Energy Nuclear Group’s Nine Mile Point NPP. In a relatedwater. The used absorbents can be safely disposed without risk of move, Michel Philippon, Former Manager for operations at Nineleakage, even if the material became wet, according to a university Mile Point has been named the new plant general manager, re-statement. Zhu said 1g of nanofibres could effectively purify at least porting to Langdon. Frank Payne, currently the general supervi-1t of polluted water. The technology was developed in cooperation sor for shift operations, has been named manager for operations,with the Australian Nuclear Science and Technology Organisation reporting to Philippon.(ANSTO) and US Pennsylvania State University. In the process,water is run through nanotubes and the nanofibres trap radioactive US/JAPAN: Yves Brachet has been appointed by Westinghouse-caesium (Cs+) ions through a structural change. Toshiba as President for the Europe, Middle East and Africa (EMEA) region, effective at the beginning of November. He wasRUSSIA: AKME-engineering will soon sign a contract with the previously Vice President and Managing Director for France,chief architect of a NPP to be built in Dimitrovgrad with a pilot Benelux, and Republic of South Africa and before that led theSVBR-100 commercial reactor unit. The company said a competi- development of the Westinghouse business in France as Regionaltive dialogue held late September had resulted in selection of Vice President, France.the All-Russia Science Research and Design Institute of PowerEngineering Technology (VNIPIET) in St Petersburg the as chief wANO: Vladimir Asmolov has been elected President of the Worldarchitect. The contract with VNIPIET for preparation of the Association of Nuclear Operators (WANO). He was formerlydesign materials and working documentation for construction Deputy Director of Russian nuclear utility Rosenergoatom. Hewill be signed by the end of the year. The SVBR-100 reactor has succeeds China Guangdong Nuclear Power Holding Co chairmanbeen designed by OKB Gidropress and the Institute of Physics He Yu and will serve a nominal two-year term.and Power Engineering in Obninsk is the scientific supervi-sor. AKME-engineering is a joint venture between state nuclearcorporation Rosatom and EuroSibEnergo established in 2009 todevelop a business in design, construction and operation of smallmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 49
    • The MNB Interview The MNB Interview Beyond that, strong, bipartisan political support from both the Ex- ecutive Branch and Congress is critical. Political support is an impor- BIOGRAPHY tant part of the foundation, and we think we have that. Public support also is important, and we think we have that as well. Public support Richard J Myers, dropped after Fukushima, but the latest polls show it is recovering Vice President nicely. Political and public support are the bedrock on which to build a Policy Development, Planning and Supplier Programs at the healthy nuclear energy programme, in the US or anywhere. Nuclear Energy Institute TF: How will the accident at Fukushima in Japan affect the industry? Richard Myers is responsible for defining policy initiatives, devel- RM: Over the long term, the nuclear industry—operators from the oping legislative proposals and managing Nuclear Energy Institute US and around the world - will learn from the Fukushima accident. (NEI) programmes in the following areas: used nuclear fuel policy; The industry will incorporate these lessons into operating practices fuel supply; support for suppliers of equipment, services and fuel; and plant design, and come out of the event stronger and safer. This nonproliferation; tax issues affecting the nuclear energy industry; has been the historical precedent after past accidents. After the financing of new nuclear facilities, and environmental policy. Three Mile Island accident, both industry and the Nuclear Regula- NEI’s Policy Development Division is also responsible for developing tory Commission took steps to improve safety, including creation of NEI’s annual business plan, monitoring energy policy issues and the Institute of Nuclear Plant Operations (INPO). After Chernobyl, market trends, liaison with the financial community, and analysis of the World Association of Nuclear Operators (WANO) was created how changes in the energy markets affect existing nuclear plants to do for the world nuclear industry what INPO did for US plants. and the economic prospects for new nuclear plants. WANO just finished a major world meeting in China, the first since Myers started his career as a journalist. From 1973 to 1986, he the Fukushima accident, and committed to a number of new initia- was Executive Editor of King Publishing Group and managed all the tives to improve safety and performance going forward. company’s publications, including The Energy Daily and Defense Accidents are unfortunate, and we all wish they didn’t happen. But Week. He has also written extensively the measure of an industry is its ability to take a cold-blooded honest for other publications, including look at itself, identify what went wrong, and learn from it. If it can do The Financial Times, Fortune this in an open and transparent way, the industry will come out stronger. and The American Spectator. He joined the US Council for TF: What are the major obstacles - technical, financial, regulatory Energy Awareness (USCEA) or other - to newbuild and a healthy US nuclear programme? - one of NEI’s predeces- RM: The 104 operating plants are well positioned. Virtually all have sor organisations - in 1987 renewed their licences, or are in the process of renewing their li- as director of editorial cences, to operate for 60 years. The industry now is looking into what programmes. He received it would take to run plants for 80 years. The 104 US nuclear power a bachelor’s degree in plants represent the lowest-cost, dispatchable baseload capacity on English literature from Hobart the grid. The long-term fundamentals are quite solid. The US will need College, Geneva, New York, new capacity to meet new demand over long term. It will have to and completed the University replace some part of its existing capacity, whether the plants are coal- of Michigan Business fired, gas-fired or nuclear School’s Electric Over the next 5-6 years, new nuclear plant development in the US Utility Execu- will proceed rather slowly. These are large projects being implemented tive Program by relatively small companies. We expect to see 4-8 new plants by in 1993. 2020, with the pace of development accelerating after 2020. But it is too early to speculate on just what that means in terms of numbers. The major near term challenge has to do with electricity markets and low natural gas prices. Over the last several years, an enormous resourceRichard Myers, Nuclear base of shale gas has started coming to market at very low prices - in the $4/million BTU range. Analysts don’t expect the price to rise aboveEnergy Institute $6/million BTU before 2020. This challenges the economics not only of new nuclear plants, but of any new large baseload power plant.With the nuclear industry worldwide still reeling from the effects of Electricity demand is also depressed because of the recession. Wethe Fukushima accident in Japan, MNB US correspondent Thecla Fabia have lost four to five years of electricity demand growth. This willspoke to Richard Myers of the US Nuclear Energy Institute about push our schedules on new build, because capacity will not be neededprospects in the US. as quickly. So in the near term, the challenges are market-related.TF: What do you see as the major needs for a healthy US TF: What about financing?nuclear power programme over the next 10 to 20 years? RM: Financing is a challenge. Again, these are large projects beingRM: The industry obviously must maintain a strong focus on safe, undertaken by relatively small companies. Regulated states thatreliable plant performance. That is essential. have shown strong support for nuclear power, such as Florida,50 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Country Profile The MNB InterviewGeorgia, and South Carolina, are allowing the recovery of certain focus of integration among the federal agencies, including DOE, andcosts before the plants go into service. This helps enormously with the departments of State and Commerce. The only place to integratefinancing, by relieving stress on cash flow during construction. In nuclear energy policy is through the White House, most likely theregulated states, the legislatures and public service commissions look National Security Council or the National Economic Council.]at resources over a 40- 60-year period. Newbuild will be more difficultin unregulated, merchant power states. In merchant states, the only TF: How do you see the waste issue playing out? Do you see acriterion that counts is the cost of electricity from the plant on the resurgence of interest in reprocessing?day it enters service.Since the upfront costs of building a nuclear plant RM: We’re not particularly happy about the Obama Administration’sare high, nuclear will be more of a challenge in merchant power states. decision to terminate the Yucca Mountain project in Nevada. There Originally, the industry had high hopes for the Department of was no scientific basis to terminate the effort. We continue to believeEnergy loan guarantee programme, but the loan guarantees are prov- the licensing process should move forward. Whether or not we evering to be more of a challenge than they should be. Both of the lead build a repository at Yucca Mountain, we would learn a lot fromprojects in merchant power states, located in Texas and Maryland, licensing. It is unfortunate that we spent more than $8bn and we areare essentially marking time. But If we can build 4-8 plants by 2020 now turning our backs on it. We recognise the political reality, butand can demonstrate that they can be built approximately within that doesn’t mean we have to be happy about it.budget and on schedule, and can demonstrate that the new licencing An effective, credible used fuel management programme has aprocess works as intended, we will have achieved a major victory. number of components. We will need centralised interim storage The major growth in nuclear power in the near term will be overseas facilities. NEI supports interim storage. We believe the programmewith 65 reactors under construction worldwide. More than twice that must be restructured and would like to see management responsibil-number are planned. We need to make sure that US suppliers and US ity removed from DOE and vested in a new quasi-federal corporation.technology can compete for globally. If the US is in the market, it stands We believe there is long-term potential and promise in reprocessingthe best chance of influencing nonproliferation policy and sharing our and recycling, and support a technology development programme tosafety and operational practices. The US still has some of most innova- bring these advanced fuel cycle technologies to market.tive reactor designs. Many countries want to buy American technology. No matter what kind of fuel cycle we use, we will need a disposal facility for some waste products. The Blue Ribbon Commission hasTF: What is needed for the US to rebuild the supply chain? What pretty much concluded that a strategy that includes centraliseddo supplier companies need to get into the nuclear market, or interim storage facilities, management reform, development of ato increase their presence in the nuclear market? permanent disposal facility, and technology development is theRM: We need to create a partnership between US industry and the US way to go. The key will be generating political support to put thisgovernment to promote the export of technology, safety practices, op- program on a sustainable success path going forward. This is a majorerations and maintenance expertise, and non-proliferation practices. issue and a strategic priority that needs to be addressed.US companies are competing with state-owned companies such asthose in France and Russia, or countries where the governments and TF: What about small modular reactors (SMRs)? Do you see anuclear companies are closely aligned, such as South Korea. US market? Do you see a role for US companies in the world Succesful participation in the global supply chain could create tens marketplace? How do you read NRC’s consideration of this issue?of thousands of US jobs, and generate economic growth. We need to RM: We think SMRs are a very promising technology. They canmake sure US policies are efficient. We need better integration among provide generating companies with greater flexibility. Their smallerfederal agencies, including the Departments of State, Energy, Com- scale allows companies to match expansion with demand growth.merce. This is not always the case today. Financing could be easier because of the lower per unit cost. There We need the government to look at the nuclear industry as an always will be a market for large 1,000-megawatt-class plants, but weinstrument of US foreign policy. If US companies are not part of the think SMRs could find a major market both in the US and overseas.market, the US will not be part of the policy discussion over non-pro- The US may replace older coal fired power plants, which tend to beliferation. We will have little opportunity to influence other people’s smaller, with SMRs. Overseas, countries just getting into nuclearbehavior with regard to issues such as safety and non-proliferation. power, which do not have a large infrastructure in place, may findNEI and the nuclear industry are working with the Executive Branch SMRs attractive.and Congress to move in this direction. Even SMR developers do not expect to see commercial deploy- The US companies with N-stamps (those that meet American So- ment until 2020 at the earliest. A lot of work remains to be doneciety for Mechanical Engineers standards for nuclear-grade compo- in terms of technology development and licensing. We are workingnents) have increased dramatically over the last several years. The new with NRC on how to address licensing issues such as security andreactors under construction in Georgia and South Carolina will source control room staffing. This will take some time. If SMRs providea lot of components—particularly precision, high-end components higher levels of safety than today’s plants, which are already ex-such as valves and control rod drives—from US companies. The US tremely safe, then theyare definitely worth pursuing. This is a highsupply chain will thrive, prosper and grow if these companies can ac- priority for NEI.cess the world market on competitive terms with overseas suppliers. With SMRs, we see the potential to expand nuclear energy’s [At a 1 November 2011 press briefing in Washington, DC, Myers product slate beyond electricity to include process heat and steamestimated the potential world nuclear market at $500bn-$750bn over and used fuel management. Innovative fast reactors can consumethe next 10 years. Better integration and alignment in the Executive actinides and other fissile materials in used fuel. So there is enormousBranch on nuclear power issues is critical, he said. There is no single potential with the small modular reactors.51 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Country ProfileCOUNTRY PROFILE Currently USEC is the agent for supply to the US of blended-down Russian uranium from weapons stockpiles under the Megatons toUS Nuclear Fuel Cycle Megawatts arrangement which ends in 2013. USEC in March 2011 signed a further contact with Tenex for supply of low-enriched ura-IN LINE WITH plans to build new nuclear power plants (NPPs), the US nium from 2013 to 2022, ramping up to about half of present levelsis expanding its nuclear fuel production capacity with up to three from Russia, with option to match present levels.new enrichment plants likely to begin operation before 2020. Other The new supplies will come from mined uranium enriched in Rus-aspects of fuel policv are also changing. Between 1977 and 2005, sia, rather than recycled weapons. This provides a fallback in case ofthe government did not allow reprocessing of used fuel for commer- problems with USEC’s new American Centrifuge plant. USEC is build-cial reactors. Recent legislation, however, calls for more research in ing the American Centrifuge Plant in Piketon, Ohio for operation inadvanced fuel technology and advanced reactors to recover the energy 2010, but the project was put on hold in July 2009. Three new enrich-value of used fuel and reduce waste volume. ment plants, being built by other companies, are expected to begin Originally all fuel cycle facilities in the US were owned and operated operation before 2020 - Urenco US (formerly National Enrichmentby the government, primarily for military purposes. The major conver- Facility), AREVA US’s Eagle Rock Enrichment Facility, and Globalsion and enrichment facilities were commissioned in the 1950s. Laser Enrichment with Australia’s Silex Systems. Under a US Atomic Energy Commission contract, Metropolis Worksplant (MTW) in southern Illinois began operation in 1958. After American Centrifuge Plantthe contract’s conclusion, the facility was mothballed in 1964 but In April 2007, the Nuclear Regulatory Commission (NRC) licensedreopened in 1967, and since 1968 has operated as a private converter. construction and operation of the American Centrifuge Plant whichThe government-owned US Enrichment Corp (USEC) operated two uses technology developed over many years by USEC, based on worklarge gaseous diffusion enrichment facilities at Paducah, Kentucky, by DOE in the 1970s and 1980s. The plant is being constructed on theand Portsmouth, Ohio. The Paducah plant was commissioned in 1952 Portsmouth site where the now-closed diffusion plant operated andfor military use, but began providing enriched uranium for civilian where a DOE experimental plant operated in the 1980s, involvingreactors in the 1960s. 1,300 centrifuges and based on a major R&D programme. From the 1960s to 2001, the Portsmouth Gaseous Diffusion Plant The prototype lead cascade started operation in September 2007worked in tandem with its sister facility in Paducah to enrich uranium and the test programme with it to April 2010 refined the design of thefor use in power plants. The Paducah plant enriched uranium up to AC100 centrifuge machines (which are much larger than the Euro-2.75% U-235 and then shipped it to Portsmouth for further enrich- pean Urenco centrifuges).ment to some 4-5%. An AC100 lead cascade started operation in March 2010 with “ap- USEC was privatised in 1998, and leased the two plants from the proximately two dozen” machines which USEC planned to increase toDepartment of Energy (DOE). In 2001, it consolidated its enrichment 40-50 later in 2010. The original design was superseded in 2009 byoperations at Paducah after closing the older Portsmouth facility. In the AC100 Mod 1, which is to be used in the commercial plant, and isAugust 2010, the DOE awarded a $2.1bn contract to a joint venture expected to deliver 350 SWU/yr per machine. Recent cost estimatesbetween Fluor Corp and Babcock and Wilcox (B&W) for decontamina- for the plant are around $4.5bn, excluding finance, and using existingtion and decommissioning of the 15km2 Portsmouth site. infrastructure. By the end of 2010, USEC had spent $1.95bn and said it needed $2.8bn more than the $2bn in DOE loan guarantees it hadConversion applied for and its internally generated cash flow.Honeywell-MTW, the only conversion plant in the US, converts urani- The plant would use only 5% of the power per SWU of the old dif-um oxide, U3O8 (yellowcake), to uranium hexafluoride (UF6) which fusion plant it replaces. The licence authorises 7m SWU/yr enrich-then goes to the Paducah enrichment plant across the Ohio River as ment up to 10% U-235, though normal levels today are only up towell as to customers abroad. Capacity has expanded from 9,000 tU as 5%, which is becoming a serious constraint as reactor fuel burnupUF6 per year to 17,600 tU as UF6 today, and is expected to increase to increases. In March 2009, USEC said that it had commitments for23,000 tU by 2020. $3.3bn of services from 10 customers including leading utilities in The next level of planned expansion at MTW is to 18,000 tU as UF6 the US, Europe and Asia, and amounting to more than half of theby 2012, depending on market conditions. ConverDyn, a partnership initial sales from the plant.between affiliates of Honeywell and General Atomics, is the exclusive The full plant was to start commercial operation by early 2010,agent for conversion sales. reach 1m SWU capacity a year later and achieve full 3.8m SWU an- nual capacity at the end of 2012. However, in 2009 the project wasEnrichment delayed when DOE loan guarantee funding was suspended. USECIn 2001, USEC consolidated enrichment operations at Paducah after refused a DOE request to withdraw its application, and in July 2010,closing the older Portsmouth facility. Paducah has a capacity of 8m resubmitted the application after it received $200m investment fromSWU/yr compared with the 12.7m SWU/yr needed by the US’s 104 Toshiba and Babcock & Wilcox (B&W) which, it said, had strength-operational NPPs. Its diffusion technology is inefficient and exzpen- ened its credentials.sive to run and it is expected to close when new US centrifuge-based However, the loan guarantees have still not been decided and USECcapacity comes on line. However, USEC is negotiating to extend its entered into a standstill agreement with Toshiba and B&W which hadelectricity supply agreement with Tennessee Valley Authority (TVA) been due to complete the second phase of investment by June 2011when it expires at the end of March 2012 and is considering enriching provided DOE made a commitment on a loan guarantee. Recentlydepleted uranium tails at the plant. USEC’s board of directors voted to continue investment in the52 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Country ProfileAmerican Centrifuge Plant for October 2011, but at a reduced rate, licensing and public acceptance support if needed for developmentin the hope of getting a conditional loan guarantee commitment by of a commercial-scale GLE plant. In August 2010, TVA agreed to buy1 November but with warnings of layoffs of employees and cancella- $400m of enrichment services from GLE if the project proceeds.tions with suppliers if the deadline is not met. GEH is now operating the GLE test loop at Global Nuclear Fuel’s (GNF’s) Wilmington, North Carolina fuel fabrication facility. [GNF is aUrenco US partnership of GE, Toshiba, and Hitachi, while GLE comprises GE (51%),Urenco US has a major centrifuge enrichment plant at Eunice, New Hitachi (25%) and Cameco (24%).] In April 2010, GLE announced suc-Mexico. It uses 6th generation Urenco technology from Europe, and cessful completion of the first phase of the test loop programme and saidwas planned by the Louisiana Energy Services (LES) partnership – technology validation would continue and a decision on proceeding withcomprising Urenco, Exelon, Duke Power, Entergy, and Westinghouse. a full-scale commercial enrichment facility would then be made.Construction of the $1.5bn plant was licensed by NRC in mid-2006 In mid-2009, GEH submitted the last part of its licence applicationwhen the three utilities passed their share to Urenco. Utility support for this GLE plant, which is expected to take the NRC 30 months tofor the venture – initially amounting to $3.15bn in orders – was crucial process. If construction proceeds, the GLE commercial productionin persuading NRC that further US enrichment capacity was required facility at Wilmington, North Carolina would have a target annualbeyond that provided and envisaged by USEC. capacity of 3.5 to 6m separative work units (SWU). In August 2011 NRC approval to begin commercial operation was obtained in mid- GLE applied to NRC for a permit to build the plant. NRC is expected to2010, with full phase 1 capacity of 3.3m SWU/yr to be reached in deliver its decision in 2012. (See table below)2013. LES has confirmed phase 2 plans to increase capacity to 5.9mSWU/yr over 2014-17, with total investment reaching $4bn. A new Fuel fabricationcentrifuge design may be used in the expansion. The incremental The US has five fuel fabrication facilities to produce enriched uraniumcapacity will require NRC approval. pellets for fuel rods. AREVA, Westinghouse, B&W and General Electric (GE) operate fabrication facilities in Virginia, Washington state, NorthEagle Rock Enrichment Facility Carolina and South Carolina. In addition, Shaw-AREVA MOX ServicesIn mid-2007, France’s AREVA announced that it proposed to build (30% AREVA) is constructing a mixed oxide (mox) fuel fabrication fa-a 3.3m SWU/yr $2bn centrifuge plant in the US to supply domestic cility at DOE’s Savannah River Site (SRS) in South Carolina. The plantenrichment services. It submitted a licence application to NRC for will be owned by the DOEs National Nuclear Security Administrationthis Eagle Rock Enrichment Facility in December 2008 with a view (NNSA), and will dispose of at least 34t of weapons-grade plutoniumto licence approval in mid-2011 and operation early in 2014, ramping and convert it into useable fuel. Construction of the $4.9bn facilityup to full capacity in 2018. AREVA Enrichment Services, the owner began in 2007, and it is due to start operation in October 2016.and operator, signed a procurement & construction contract with In 2009, AREVA’s 35-year-old Richland, Washington fuel fabrica-URS in February 2011. It will be similar to AREVA’s new French plant tion plant was the first to receive a 40-year licence extension from(Georges Besse II) and will be built at Idaho Falls, near the DOE Idaho the NRC. In December 2010, AREVA and Mitsubishi Nuclear FuelNational Laboratory. In 2009, AREVA notified a planned doubling in announced a 50-50 joint venture – US Nuclear Fuel – to manufacturecapacity to 6.6m SWU/yr, with the first stage being 3m SWU/yr. In APWR fuel at the Richland plant.May 2010, DOE granted it a $2bn loan guarantee. DeconversionGlobal Laser Enrichment Deconversion of the depleted uranium (DU), a byproduct of enrich-In 2006 Silex Systems in Australia and GE Energy received US govern- ment, sometimes considered as a ‘waste’, is not undertaken on a largement approval to develop the Silex (Separation of Isotopes by Laser scale. There are over 700,000t of DU hexafluoride in US. UraniumExcitation) uranium enrichment process using laser technology. This Disposition Services (UDS), a joint venture of AREVA, Duratek/ Ener-cleared the way for development and eventual full commercial pro- gySolutions, and Burns & Roe, was awarded a $558m contract by theduction under a licence agreement with Silex. GE (now GE-Hitachi, DOE in 2002 to design and build deconversion plants at PortsmouthGEH) is funding the development and making a series of payments to and Paducah using a process developed by AREVA.Silex. It will then pay a royalty on revenues from commercial produc- The contract ran to August 2010. The 13,500 t/yr Portsmouthtion. GE said that “commercialisation of the Silex enrichment tech- plant started up in mid-2010 and the 18,000 t/yr Paducah later innology is a crucial part of its long-term growth strategy for the nuclear 2010. B&W Conversion Services won a five-year $428m contractbusiness.” SILEX was renamed Global Laser Enrichment (GLE). from DOE in December 2010 for uranium deconversion operations In October 2007, the two largest US nuclear utilities, Exelon and at bothe plants. At Portsmouth about 250,000 t depleted UF6 isEntergy, signed letters of intent to contract for uranium enrichment stored, with another 75,000t expected from Oak Ridge. Paducahservices from GEH. The utilities may also provide GEH with facility holds a further 440,000t. New US enrichment capacity Source: World Nuclear Association Type Status Capacity (million SWU/yr) Start-up Full capacityUrenco/LES Urenco centrifuge Operating 5.9 Mid-2010 2015USEC American Centrifuge Construction 3.8 on hold 2012 plannedAREVA Urenco centrifuge Planned 3.0 then 6.6 2014 2019GEH/GLE Laser Proposed 3.5 - 6.0 Possibly 2013mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 53
    • Country Profile In December 2009, International Isotopes (INIS) applied for a li- used highly enriched uranium (HEU) fuel and similar materials. It wascence to build and operate a 6,500t/y deconversion plant and fluorine commissioned in 1955 and originally recovered uranium, neptuniumextraction facility near Hobbes, New Mexico, 50km from the Urenco and plutonium from used military and research reactor HEU fuel. SinceUS enrichment plant. In April 2010, INIS signed a five-year agreement 1998 it has recovered HEU from degraded materials and spent fuel, toto provide toll deconversion services for DU tails from Urenco, from recycle it as LEU. This programme will continue to 2019. From 20112014. INIS hopes to start production in 2013, subject to raising $75m it will treat used HEU fuel from the US and overseas research reactorscapital. In-mid 2010, the first part of a $65m loan guarantee applica- which have been converted to use low enriched uranium (LEU) or shuttion by INIS was approved DOE, and the company has been invited to down under the Global Threat Reduction Initiative.submit the second part of its application2. Earlier an agreement was signed in 2005 between LES and AREVA Policy changesto use AREVA technology to deconvert LES DU tails. AREVA NC has Several shifts in energy policy since 2002 indicate that the US may re-operated a small deconversion plant in association with its Richland sume reprocessing. In June 2005, the report accompanying the $31bnfuel fabrication plant in Washington state. energy and water funding bill approved by the Senate Appropriations Committee emphasised the need for new nuclear energy technolo-Plutonium disposition gies. The DOE’s Advanced Fuel Cycle Initiative (AFCI) was allocatedThe US government has declared 61.5t of weapons-grade plutonium $85m to develop fuel cycle technologies for Generation IV reactorsto be excess to the needs of the defence programme. Under the 2000 including reprocessing and use of fast neutron reactors to destroyUS-Russia Plutonium Management and Disposition Agreement to the long-lived components of wastes.US agreed to dispose of 34t by 2014, incorporating it (with depleted Reducing the volume of high-level wastes (HLW) was seen as im-uranium) into mox fuel. portant to avoid the need to expand the planned repository at Yucca Construction of a mox fuel fabrication plant at the SRS to use this Mountain. In July 2005, with passage of the Energy Policy Act ofplutonium was authorised by NRC early in 2005 and began in August 2005, the “recovery of the energy value from spent commercial fuel”2007 when funding became available. The Mox Fuel Fabrication became an explicit objective of the AFCI.Facility (MFFF) is being built by Shaw AREVA MOX Services under In late 2005, the American Nuclear Society issued a position papera $2.7bn contract with the NNSA, which will own the plant. (Mox stating that “the development and deployment of advanced nuclearplants usually use fresh reactor-grade plutonium which includes about reactors based on fast-neutron fission technology is important to thea third non-fissile plutonium isotopes while weapons plutonium has sustainability, reliability, and security of the world’s long-term energymore than 90% fissile isotopes.) The plant is expected to be in opera- supply.” An initial $50m for “integrated spent fuel recycling facilities”tion in 2016, eventually producing 1,700 mox fuel assemblies from focused largely on fast reactors was committed by Congress in 2006.the 34t of weapons plutonium or more if the government decide to The US industry body, the Nuclear Energy Institute (NEI), has stressedrelease further stocks for this purpose. the need to plan for recycling used fuel to reduce long-lived radioac- In February 2010, the NNSA signed an agreement with TVA to tivity arising from it so that in a relatively short time HLW becomesevaluate the use of this mox in its Sequoyah and Browns Ferry NPPs. no more toxic than the original uranium ore. This means recycling andDuke Energy has used four mox test fuel assemblies incorporating this burning all the long-lived actinides, which is most efficiently done inweapons-grade plutonium (fabricated in France) at its Catawba 1 NPP. fast neutron reactors.This was to prepare for possible use of mox for 20-40% of the cores ofthe Catawba and McGuire reactors from about 2010, using the fuel GNEP comes and goesfabricated at MFFF. Mox using weapons plutonium was burned at the The development of new reprocessing technology became a centralSaxton prototype reactor in the mid-1960s, and some was burned in element in the government’s 2006 proposal for a Global Nuclearother US plants before 1977. Energy Partnership (GNEP), which was intended to reduce the risk of nuclear proliferation. Under this proposal, the US and other developedReprocessing used fuel countries would develop proliferation-resistant recycling technologiesIn 1977, the US government called a halt to the reprocessing of used and provide nuclear fuel to developing countries that promised notfuel from commercial reactors as part of its stance against nuclear pro- to engage in enrichment and reprocessing activities. However, GNEPliferation. The US has some experience with reprocessing oxide fuels was criticised for the restrictions it sought to place on developingas part of its military programme, and has also built three civil repro- countries and financial support steadily decreased.cessing plants. The first, a 300 t/y plant at West Valley, New York, was By 2009, under Barack Obama’s Democratic administration, the DOEoperated successfully from 1966-72. However, increasing regulation removed its GNEP website and did not refer to the programme in its bud-required plant modifications which were deemed uneconomic, and get request for FY 2010. In June 2009, the DOE cancelled the program-the plant was closed. The second was a 300 t/y plant built at Morris, matic environmental impact statement for GNEP “because it is no lon-Illinois, incorporating new technology. This worked well on a pilot- ger pursuing domestic commercial reprocessing, which was the primaryscale, but failed to work successfully in the production plant, and was focus of the prior Administration’s domestic GNEP programme.”declared inoperable in 1974. The third, a 1,500 t/y plant at Barnwell, Despite the lack of US government support for GNEP, researchSouth Carolina, was built but not commissioned when government activities under AFCI have continued. A DOE-funded demonstrationpolicy changed, and was demolished. project involving several versions of the UREX+ process for spent The US has over 250 plant-years of reprocessing operational experi- fuel is underway at the Argonne National Laboratory. The DOE is alsoence, mostly at government-operated defence plants. These include the exploring reprocessing technologies such as AREVA’s COEX, which isH-Canyon plant at SRS which is the last operational facility able to treat based on processes already used in France, the UK, Russia and Japan,54 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Country Profileas well as a number of other technologies that would require the wide- Management, which ran the repository programme, would be elimi-spread use of fast neutron reactors. nated, and work on all nuclear waste management issues transferred AREVA has costed plans for a major recycling complex in the US, in- to the DOE Office of Nuclear Energy.cluding a reprocessing plant and mox fuel fabrication plant, at $25bn. However, in June 2010, NRC’s Atomic Safety and Licensing BoardIt would have annual input capacity of 2,500t, and is expected to take (ASLB) ruled that DOE had no right to substitute its own ideas in12-15 years to licence and build. The reprocessing cost is expected to place of those legislated by Congress. The DOE and the NRC are boundbe less than the 0.1 cent/kWh fee now charged for the nuclear waste by law to complete their work at Yucca Mountain unless Congressfund. A possible site is at Morris, Illinois, which is the only licensed acts to supercede the Nuclear Waste Policy Act. ASLB stated: “Unlessaway-from-reactor wet used fuel storage facility in the US. It is adja- Congress directs otherwise, DOE may not single-handedly derail thecent to the Dresden NPP and currently stores about 700t of used fuel. legislated decision-making process by withdrawing the Application.It was the site of GE’s Midwest Fuel Recovery Plant, a small reprocess- DOE’s motion must therefore be denied.”ing plant built in the early 1970s but not operated. In January 2010, DOE announced the formation of a 15-member Blue Ribbon Commission on America’s Nuclear Future to “provideNuclear wastes recommendations for developing a safe, long-term solution to manag-The question of how to store and eventually dispose of HLW has been ing the nation’s used nuclear fuel and nuclear waste.”debated in the US for several decades and is still unresolved. As well as In a memorandum to Energy Secretary Steven Chu Presidentcivil HLW (all US used fuel as well as research reactor used fuel of US Obama said: “The commission should conduct a comprehensiveorigin) there is a significant amount of military HLW which Congress review of policies for managing the back end of the nuclear fuel cycle,intended to share the same geological repository. Naval used fuel is including all alternatives for the storage, processing, and disposal of ci-stored at the Idaho National Laboratory. vilian and defence used nuclear fuel and nuclear waste.” On that basis Since the beginnings of the commercial use of nuclear power, used Yucca Mountain would not be ruled out. However, the commission’sfuel assemblies have been stored under water in pools (and later in mandate is strategy, not siting. The review will “include an evaluationdry casks as well) at reactor sites, and remained the responsibility of of advanced fuel cycle technologies that would optimize energy recov-the plant owners. The prohibition of reprocessing in 1977, combined ery, resource utilization, and the minimization of materials” – in otherwith the continued accumulation, brought the question of permanent words, reprocessing and recycling.. The commission was to submit anunderground disposal to the forefront. interim report within 18 months and a final report within 24 months The Nuclear Waste Policy Act of 1982 established federal respon- Before the budget cuts and policy changes by the Obama adminis-sibility for all civil used fuel, including a timetable and procedures for tration, DOE estimated that the Yucca Mountain repository might bethe building of two repositories, funded by fees from utilities, with operational about 2021, with some expansion of the original 70,000tthe federal government taking delivery of the fuel by 1998 along capacity. The total cost in mid-2008 was put at about $96bn (in 2007with responsibility for its disposal. The Act was amended in 1987 dollars) for construction, operation for 110 years, decommissioningdesignating Yucca Mountain in Nevada as the sole initial repository from 2133 and the transport of used fuel.for 70,000t of HLW. This would include 63,000t of used reactor fuel,2,333t of naval and DOE used fuel and 4,667t of other HLW, all from Cost of accumulated wastes126 sites in 39 states. In the meantime, storage space at some operating NPPs has run out After several years of failure to get matching bills through both and at 40 of the 65 nuclear sites pool storage is being supplementedhouses of Congress, early in 2000 the House of Representatives with dry cask storage. Of the total inventory of 58,000t of usedfinally passed the Nuclear Waste Policy Amendments Act 2000 fol- fuel, 10,700t was in dry cask storage as of early 2008. By 2017, it islowing the earlier Senate passage of the legislation. However, the anticipated that practically all NPP sites will need dry storage whichPresident then vetoed it. The Bush Administration pressed ahead with will then hold 22,300t of used fuel. A number of utilities have suedthe issue, with several reports in 2001 suggesting no insurmountable the federal government for not meeting its obligation under the 1982scientific or technical problems, although other experts queried this. Nuclear Waste Policy Act to begin taking waste by 1998 and have beenThe US Energy Secretary recommended approval of the site as the US awarded about $1bn by the courts.permanent repository. This was strongly supported by Congress and In 2004, Exelon agreed with the Justice Department on recoveringsigned into law in July 2002. up to $300m in storage costs for its used fuel from its 17 nuclear reac- tors to 2010, with funding from tax monies, not the Nuclear WasteYucca Mountain Fund. In 2006, the US Federal Court awarded $143m in damages toDOE finally submitted a licence application to NRC in June 2008, but three related New England utilities and $40m to the Sacramento Util-less than a year later, the new Barack Obama administration sought ity District after they had been obliged to build storage facilities.to abort the project. In early 2009, Secretary of Energy Steven Chu Then $43m was awarded to Pacific Gas & Electric. In 2007, Dukestated that notwithstanding the 1987 Act, Yucca Mountain was no Energy negotiated $56m for three plants, plus ongoing costs, andlonger considered an option, and funding was cut back. The admin- Xcel Energy was awarded $116m for costs associated with threeistration’s budget request for FY 2011 envisaged shutting down the reactors between 1998 and 2004. Entergy Arkansas was awardedproject altogether. $48.6m for costs to 2006. Progress Energy received $82.8m in In February 2010, DOE filed a motion with NRC to “stay” the Yucca 2008. Other utilities have been suing the federal government in-Mountain licensing review, and said it intended to withdraw the ap- volving billions of dollars.plication “with prejudice”, which would prevent it from ever being Congress established a trust fund for waste management inconsidered again. The DOE’s Office of Civilian Radioactive Waste 1982 under the Office of Civilian Radioactive Waste Managementmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 55
    • Country Profile(OCRWM), and by the beginning of 2010, utilities had contributed constituents, and WIPP first received mixed waste in 2000. Mixedover $31bn (including interest) to the Nuclear Waste Fund through a waste is joint-regulated by the Environmental Protection Agency0.1 cent/kWh levy towards final disposal, so that by the end of Janu- (EPA) and the New Mexico Environment Department.ary 2010 it had a balance of $24bn, after development expenses for Waste is placed in rooms 655 metres underground that have beenYucca Mountain. The fund is growing by about $770m a year from excavated within a 1000 metre thick salt formation where saltutility inputs and $1bn from investment returns. tectonics have been stable for more than 250m years. Because drill- ing or excavation in the area will be hazardous long after the area isOther waste projects actively used, there are plans to construct markers to deter inadver-As well as the Yucca Mountain enterprise, Private Fuel Storage (PFS), tent human intrusion for the next ten thousand years. Since 1991,a consortium of eight utilities, planned to store used fuel on a site in the DOE has been working with various experts to devise with aUtah for up to 40 years pending disposal. In February 2006, the NRC warning system. The markers, called “passive institutional controls”,issued a 20-year licence for a 40,000t centralised surface dry storage will include an outer perimeter of 7.6 metre-tall granite pillars builtfacility on land owned by the Skull Valley band of the Goshute Indi- in a four-mile (6 km) square. These will surround an earthen wall, 10ans. PFS then offered the facility to DOE for use from 2008 pending metres high and 30 metres wide. Inside this wall will be another 16Yucca Mountain repository opening, suggesting that it would be very granite pillars and directly above the waste site a roofless granitemuch cheaper than leaving the used fuel at reactor sites. While fuel room providing more information. The team intends to etch warn-ownership was originally intended to remain with utility customers, ings and informational messages into the granite slabs and pillars inthe proposal to DOE was that it would take ownership at the reactor the six official languages of the United Nations (English, Spanish,site (as was legally required by 1998) and be responsible for moving it Russian, French, Chinese, Arabic as well as the Native Americanto PFS, and ultimately to Yucca Mountain. Navajo language native to the region, with additional space for trans- But ongoing state government opposition led to the Department lation into future languages.of Interior then disapproving the Goshute-PFS lease and the use ofpublic land as a transport corridor to the planned facility. An appeal Low-level wasteagainst this decision was successful and in July 2010 the “arbitrary For low-level waste (LLW), there are a number of specialist USand capricious” 2006 Department of Interior ruling was overturned facilities – otherwise LLW storage is at reactor sites. Specialistby a District Court ruling. In the light of the 2006 Utah setback, NEI facilities include:started a search for communities willing to host interim storage sites 1. EnergySolutions at Barnwell, South Carolina, for Class A-C LLWfor used fuel. It received several offers and by mid-2008 had reduced from that state, New Jersey and Connecticut.the possibilities to two, and discussions are proceeding. A commer- 2. EnergySolutions facility at Clive, Utah, which accepts class A LLWcially-operated facility on a 400 ha site is envisaged for each location, (about 90% of all LLW) from all over the US.with the DOE paying rent for casks stored there. 3. EnergySolutions at Oak Ridge, Tennessee which claims to be the Under new standard contracts with DOE, proponents of new largest licensed commercial US LLW facility with innovativereactor construction must undertake to store used fuel on site technologies for radioactive material volume reductionindefinitely, so that the DOE does not become liable for delays. The (compaction, melting, incineration) and nearby capacity forcontracts specify that the DOE will begin removing used fuel within recycling depleted uranium.20 years of the first refuelling. As of January 2009, 19 contracts 4. US Ecology at Richland, Washington accepts Classes A-C wastehad been signed under the NRC’s Waste Confidence Rule. They are a from the Northwest and Rocky Mountain compacts.prerequisite for new reactor licensing and for licence renewals. The 5. Waste Control Specialists in Texas, whose facility was licensed inrule states that the NRC is confident that a repository (not necessar- 2009 for class A, B & C LLW, to operate from late 2010 and alsoily Yucca Mountain) will be available 50 to 60 years after a reactor take Vermont’s and DOE LLW. The company is also seeking to takeoperating licence expires. LLW from other stateThe WIPP facility Decommissioning reactorsDespite all the controversy over Yucca Mountain, the US has had a Nearly 30 civil prototype and commercial reactors have been decom-successful waste disposal facility operating since 1999. DOE began missioned in the US. NEI reported in 2006 that of the total $32bnplanning the facility in 1974 and after more than 20 years of scientific estimated to decommission all eligible NPPs at an average cost ofstudy, public input, and regulatory struggles, the Waste Isolation Pilot $300m, about two-thirds had already been funded. The remainderPlant (WIPP) began operations in New Mexico. Disposal operations would be funded over the next 20 years.are expected to continue until 2070 with active monitoring for a fur- In the US, the option of immediate decommissioning of nuclearther hundred years. By 2010, the facility had already processed 9,000 plants is known as the Decon strategy. The second option, safes-shipments of waste. Research continues on the disturbed rock zone tor, is where a facility is dismantled after allowing much of thegeomechanics at WIPP. radioactivity to decay. The third option, Entomb, is to permanently Waste for disposal at WIPP must meet certain “waste acceptance encase radioactive contaminants onsite until the radioactivity hascriteria”. The facility accepts transuranic waste generated DOE activi- decayed to a level where restricted release of the facility is possible.ties. It must have radioactivity exceeding 100 nCi per gram from US plants with Decon completed are: Big Rock Point, Elk River,wastes that produce alpha radiation with a half life of more than 20 Fort St Vrain, Haddam Neck, Maine Yankee, Pathfinder, Ranchoyears. This includes plutonium, uranium, americium, and neptunium Seco, Saxton, Shippingport, Shoreham, Trojan and Yankee Rowe.among others. Mixed waste contains both radioactive and hazardous In 2011 Decon is in progress at Fermi 1, Humboldt Bay 3 and San56 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Country Profile > Nuclear Platform > Uranium Market Round upOnofre 1. Those plants in Safstor include Dresden 1, Indian Point articulated, allowing it to reach around obstructions encountered1, LaCrosse, Millstone 1, Peach Bottom 1, and Zion 1&2, as well as in the tank. Because of the size of the arm a 139.7cm diameter holeNS Savannah. Three Mile Island 2 is in post-defuelling monitored was cut in the top of C-107 in December 2010. MARS was insertedstorage. The only US plants subject to the Entomb option are three into the tank in June 2011.small experimental ones. Hanford contractor Washington River Protection Solutions is also testing a vacuum version of MARS that could be used in tanks that ** Next month, the final US country profile will look at R&D are known to have leaked. The vacuum version would use a minimum Most of the information in this profile came from the WNA. amount of liquid to mobilise waste and would remove the liquid almost immediately after it is introduced into the tank.NUCLEAR PLATFORM System descriptionMike Berriochoa MARS is operated remotely from a computer control station, and itWashington River Protection Solutions offers in-tank viewing capability. Two cameras allow operators to view and control the activity of the arm. A third camera is located on theRobotic arm removes waste from US storage tanks mast assembly. The large robotic arm has a reach of 12 metres. The in- For the first time in history a large robotic arm is at work removing tank assembly, including the arm, carriage, mast, and hose managementwaste from an aging single-shell radioactive waste storage tank on systems weighs 9,000kg. The above-ground equipment, including thethe US Department of Energy’s (DOE’s) Hanford Site in Washington containment box internals, rotary union, and above-ground hose man-State. Known as the Mobile Arm Retrieval System (MARS), it began agement system, weighs 43,200kg. The ancillary equipment, includingtransferring waste to a nearby double-shell tank for safe storage at the above-ground instrumentation, valve box, electrical system, hydraulicend of September. power unit, and high pressure water system, weighs 27,000kg. Tank C-107 is a 530,000-gallon tank built in 1943. When retrieval The retrieval pump can remove approximately 100 gallons/min-operations began it held approximately 253,000 gallons of waste. ute at 120 psi pressure, and the pump can be raised and lowered inSince operations began, MARS has removed more than 20% of the the tank a total of 3 metres. The sluicing nozzle can handle 90 gal-waste volume. The tank farm is located near the centre of DOE’s lons/minute at 100 psi and the high-pressure sluicing nozzles up to1,517.74km2 Hanford site. 20 gallons/minute at up to 5,000 psi. Columbia Energy and Environ- “It’s been an extraordinary two-year journey getting MARS mental Services, Richland, Washington, developed the MARS sys-designed, built, installed and tested, said Kent Smith, manager of tem. Columbia is a protégé company of Washington River Protectionsingle-shell tank retrieval and closure for Washington River Protec- Solutions, DOE’s contractor that manages the underground wastetion Solutions, DOE’s contractor at the Hanford tank farms. storage tanks at Hanford.MARS saves time and money URANIUM MARKET ROUND UPThe arm combines lessons learned from previous equipment de-velopment into a single technology, making it capable of retriev-ing all of the waste forms found in Hanford’s waste tanks. In the No shortage of resourcespast, each waste form required a separate technology to remove THE SPOT URANIUM market fluctuated quite gently in October, andit, significantly adding to the time and expense of waste retrieval. ended the month in the same place as it began at $52/lb. MarketMultiple sets of equipment had to be installed in the tanks and volumes continued at a rather low level throughout October, extend-removed during each clean up. ing the period of slumber and low volumes that have been the general The new MARS system also will enable DOE to meet its regula- trend in the aftermath of the Fukushima accident. We have still to seetory commitment to remove all waste from the tanks in Hanford’s a renewed test of the $50/lb level, which has surprised some marketC Tank Farm - the oldest, single-shell tanks - by 2014. MARS uses observers, given the possibility of surplus material coming onto theliquid waste from a nearby double-shell tank to mobilize the solids so market post-Fukushima. Late August saw the last test of the $50they can be pumped. Using liquid waste reduces the overall volume level (which was also the low point reached immediately after newsof waste that must be stored and ultimately processed through the of the Fukushima accident broke). There are signs of support as soonWaste Treatment Plant, a waste vitrification plant scheduled to begin as the market goes below $50, which clearly has some psychologicalprocessing waste in 2019. If necessary, MARS can also use water for significance as a good marker for the market. Buying activity in thewaste retrieval. late August through October period reversed the slide in the market down to $49/lb in mid-August .‘A game changer’ Whether it is the financial players or industry buyers who provide“MARS IS AN innovative tool in our waste retrieval tool box and we support at below $50 is still not unknown, although it is thoughtare excited to be able to put it into service,” Smith said. He added that the Chinese move into the market as soon as the price is in thethat MARS would be a “game changer” for Hanford - it would allow $40s. The gap with the longer term price remains striking, despitemore waste to be removed from the single-shell tanks faster, and quotations of this having moved down to the low $60s/lb. Even atat a lower cost. Because of its hydraulic arm MARS is capable of a this level, there is clearly money to be made by the financial playerswide range of telescoping motion to reach all parts of a tank. The through buying spot and delivering long. This is assuming that theyoperating head has multiple low and high-pressure spray nozzles can find interest among the often-conservative uranium buyers inthat hydraulically “rake” waste to a central pump. The head is also the world’s nuclear utilities.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 57
    • Uranium Market Round up > Uranium PricesAdequate resources Ensuring security of supplyThe question of the adequacy of uranium resources to fuel future The degree of security afforded by uranium resources is greater if ac-nuclear growth does still come up, despite the quiet uranium count is taken of some of the less well-proven resources quoted in themarket in recent times. The latest IAEA Red Book published in Red Book, termed Prognosticated and Speculative Resources. These may2010, essentially the “bible” on uranium resources, concludes that also only be mined at significantly higher extraction costs, but a worldregardless of the magnitude of nuclear power growth in the future, total of over 15mt is reasonable. If uranium did ever become apparentlythe identified uranium resource base is adequate to meet projected scarcer, tails assays could be lowered to reduce uranium requirements,future requirements. while further recycling of nuclear fuel would be promoted. While uranium resources are extensive, the vast majority are not Additional security is essentially provided by world resources ofdelineated or developed. Given the prolonged period of artificially thorium, which are believed to be more extensive than uranium.low prices in the 1990s, the primary supply segment has only There has been a significant amount of research into fueling reac-recently begun to keep up with world demand. With the world’s tors with thorium and this continues today. India, in particular,inventories of secondary supply gradually being depleted, the remains set on utilizing its thorium reserves to fuel reactors, butindustry is once again turning to the primary markets to secure the opening up of its nuclear sector to outside supply may lessenthe bulk of long-term fuel contracts. However, it will take time for this. It assumes exploiting thorium in future breeder reactors inproducers to respond. conjunction with usage of plutonium accumulated from repro- The myriad of effort and capital required to bring uranium in the cessed spent fuel from current reactors. Norway is another countryground into full-scale production is considerable. For example, after which has been considering the thorium fuel cycle on the basis oflocating a potential resource, numerous activities need to follow: its vast thorium resources.resource delineation and development; engineering estimates for Of greater importance within the next 20-30 years than themining and milling; development of tailings capacity; power, road and exact magnitude of the uranium resources base, are the econom-other infrastructure development; assessment of technical, jurisdic- ics of exploiting the present established reserves in order to ensuretional and political risk; establishing a workforce, many with spe- that there is adequate supply available on a timely basis to fuel thecialised skills; decommissioning and reclamation planning; licensing present and anticipated reactors. This is the issue currently beingand regulatory approvals. It is understandable that the lead times to assessed in all the prospective mines around the world, particularlybring a newly discovered resource on stream can take in excess of 10 those (very much in Africa) where the grades are relatively low andyears, depending on the mine type. capital investment requirement high. URANIUM PRICES CME Uranium Futures - 07 November 2011 CME Uranium Futures Spot uranium prices ($) - 07 November 2011 Spot ¥ 4,486 56.00 11-Oct 07-Nov % Change 4 Jul (ex €/$0.68900, ¥/$80,849) 54.00 Nov-11 52.50 52.50 0.0% Spot $ 52.75 52.00 Dec-11 52.50 52.50 0.0% Spot € 36.34 Jan-12 52.50 52.75 0.5% Spot ¥ 4,265 50.00 Feb-12 52.75 53.00 0.5% 1 Aug (ex €/$0.70084, ¥/$77.128) 48.00 Mar-12 53.15 53.00 -0.3% Spot $ 52.25 46.00 Apr-12 53.55 53.40 -0.3% Spot € 36.62 11 -O c t 44.00 07 -N ov May-12 53.55 53.80 0.5% Spot ¥ 4,030 42.00 Jun-12 53.70 53.80 0.2% 5 Sep (ex €/$0.70883, ¥/$76.928) Jul-12 53.70 53.95 0.5% Spot $ 51.00 40.00 Aug-12 53.80 54.00 0.4% Spot € 36.15 38.00 Sep-12 53.80 54.45 1.2% Spot ¥ 3,923 Oct-12 53.80 54.50 1.3% 10 Oct (ex €/$0.73251, ¥/$76.663) Nov-12 53.80 54.60 1.5% Spot $ 52.75Source: CME Dec-12 54.75 Spot € 38.64 Tracking Unit: 250 pounds of U308 Source: CME Spot ¥ 4,044 31 Oct (ex €/$0.71807, ¥/$78.003) Spot $ 52.00 Spot € 37.34 Spot ¥ 4,056 Note: prices are for Ux U3O8 All prices quoted are from Ux Consulting Company Source:www.uxc.com Spot Uranium prices have been collected from the Ux Consulting Company, the leading provider of global Uranium pricing information. Futures prices are from CME Uranium Futures listing. Both are reported in US Dollars per pound (weight).58 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Outage Watch > Carbon Markets ViewOUTAGE WATCH Tepco’s Fukishima Daichi 1-6 (earthquake), Fukushima Daini 1- 4 (earthquake) Chubu’s Hamaoka 3-5 (at government request);ARMENIA Hokiruku’s Shika 1 (idling for check up) and 2; Kansai’s Mihama 1 andThe Armenian nuclear power plant resumed operations on 28 October, 3, Takahama 1and 4 and Ohi 1,3 and 4; Chugoku’s Shimane 1 (suspend-having been offline since 11 September for refuelling and preventive ed for check up); Shikoku’s Ikata 1 and 3; Kyushu’s Genkai 2 and 3 and 3maintenance work. Sendai 1 and 2; and JAPC’s Tokai II (earthquake) and Tsurugu 1 and 2; as well as five of Tepco’s seven units at Kashiwazali-Kariwa (units 2-4 fromCzECH REPUBLIC earlier earthquake and 1 and 7).Power utility CEZ restarted unit 2 at Dukovany NPP on 18 Octoberafter a scheduled maintenance and refuelling shutdown. Unit 1 RUSSIAremains halted while units 3 and 4 are operating at almost full Four units were offline for routine maintenance on 7 November:capacity, CEZ said in a statement. Balakovo one unit; Bilibino one unit; Kalinin one unit; and Leningrad one unit.FRANCEFrance’s grid company, Reseau de Transport d’Electricite (RTE) reported SOUTH KOREAno unplanned outages on 7 November. The following plants were On 7 November, Ulchin units 2 and 4 were offline.offline: Belleville 1, Bugey 2 and 5, Chinon B2, Chooz B1, Civaux 1 and 2,Cruas 2, Fessenheim 2, Gravelines 1, Paluel 4 (to 12 November), Penly 1 UKRAINEand Tricastin 3. Unit 3 at South Ukraine was disconnected from the grid on 25 October for repairs after two turbine pumps stopped and an automatic protec-GERMANY tion system was activated. It was restarted the next day. KhmelnytskyOn 7 October E.ON reported planned outage for Grohnde from19 unit 1 and Zaporizhia unit 5 were also closed for repairs.November-2 December. RWE reported no planned outages. Vatten-fall/E.ON’s Kruemmel plant has been closed since 4 July 2009 and UKis not expected to restart. The Brunsbuettel plant has been closed The 450MWe nuclear plant Heysham 1-2 was closed on 4 Novem-since 18 July 2007. ber for a scheduled statutory outage until 14November. Sizewell B was reconnected to the grid on 23 October, following its plannedIRAN refuelling outage which started on 2 September. Unit B21 atIran’s electricity grid in September, was “temporarily disconnected” Dungeness nuclear plant restarted on 23 October, after an un-for safety tests, the government’s news website reported. The Rus- planned outage on 9 October.sian-built 1,000MW Bushehr plant started generating electricity at50% of its capacity on 7 October and will be offline for “several weeks” USuntil it can operate at full capacity by the end of 2011. The Nuclear Regulatory Commission on 7 November reported the following units offline: Millstone 3, Salem 1, Three Mile Island 1,JAPAN Brunswick1, Crystal River 3, Farley 2, North Anna 1 and 2, Oconee 2,On 2 November there were 43 units offline including: Hokkaido’s Davis-Besse, Dresden 2, Point Beach 1, Arkansas Nuclear 1, Callaway,Tomari 1and 2: Tohoku’s Higashidori 1 and Onagawa 1-3 (earthquake); Fort Calhoun, and South Texas 2.CARBON MARKET VIEW05 NOVEMBER 2011: The price of offsetting carbon emissions has The differential between EU carbon and CERs is currently €3.18/tremained on its downward trajectory over the past fortnight as for 2011 products. This is a smaller differential for the 2011 producteconomic concerns and demand uncertainty dragged on the outlook than was reported two weeks ago when the margin was at €3.43/t.for both the European carbon permit and CER (Certified Emission Further out, the differential rises to €3.57/t for 2012, which alsoReductions) markets. narrowed slightly compared with its margin a fortnight ago of €3.79/t. European carbon permit prices for 2011 are currently trading at€9.71/t (Marex Spectron based). This is 6% lower than their value a Forward EU carbon Prices (€/t of CO2)fortnight ago when they closed the week at €10.36/t. Further out, 2011 2012 2013 2014the 2014 product was also lower, falling to €11.30/t (from €12.27/t 14 Oct 10.40 10.89 11.70 12.42on October 21), which represents a loss of 8%. 21 Oct 10.38 10.85 11.58 12.27 The CER market saw similar declines to the European carbon 28 Oct 10.40 10.88 11.56 12.23permits. 2011 CERs are currently trading at €6.53/t, down 6% from 3 Nov 9.71 10.16 10.73 11.30€6.93/t on October 21. 2012 CERs are now at €6.59/t from €7.06/t a -8.1% -7.8% -7.7% -7.8%fortnight ago, representing a weakening of 7%. Source: Marex Spectronmccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 59
    • S&P’s Global Energy IndicesS&P’S GLOBAL ENERGY INDICES Standard & Poor’s Global Energy Indices (Total Return) - HistoryThe S&P Global Nuclear Energy Index is comprised of 20 of the 4 ,5 0 0 .0 0largest publicly traded nuclear energy companies from both S & P G lo b a l N u cle a r E n e rg y In d e x 4 ,0 0 0 .0 0developed markets and emerging markets and has been developed S & P G lo b a l A lte rn a tive E n e rg y In d e x 3 ,5 0 0 .0 0to provide investors with diversified exposure across the global S & P G lo b a l C le a n E n e rg y In d e xnuclear energy markets. It is equally distributed between two 3 ,0 0 0 .0 0clusters: Nuclear Materials, Equipment and Services and Nuclear 2 ,5 0 0 .0 0 P o in tsEnergy Generation. 2 ,0 0 0 .0 0 The S&P Global Clean Energy Index provides exposure to 30 1 ,5 0 0 .0 0companies from around the world that are involved in clean en- 1 ,0 0 0 .0 0ergy related businesses, including a diversified mix of clean energy 5 0 0 .0 0production and equipment and technology companies. - Designed to measure investable opportunities in the completealternative energy space, the S&P Global Alternative Energy Index is the combination of the S&P GlobalClean Energy Index and the S&P Global Nuclear Index, with 50constituents. S& P Global Energy Indices (Total Return) - Sep to Oct 11 S&P’s Global Indices Aug-11 Sep-11 Oct-11 Change 2 ,5 0 0 .0 0 Nuclear Energy 2,516 2,372 2,390 0.8% Alternative Energy 1,595 1,429 1,358 -5.0% 2 ,0 0 0 .0 0 Clean Energy 912 771 678 -12.1% P o in ts index: 1000 = Nov 2003 1 ,5 0 0 .0 0 Source: Standars & Poors 1 ,0 0 0 .0 0 5 0 0 .0 0 S & P G lo b a l N u cle a r E n e rg y In d e x S & P A lte rn a tive E n e rg y In d e x S & P G lo b a l C le a n E n e rg y In d e x - COMPETING FUELS, POWER PRICES AND CARBONOil PowerClose prices ICE Brent ICE Gas Oil UK Germany US* Japan $/bbl $MT £/MWh €/MWh $/MWh 000’Y/MWh03-Oct 103.12 898.25 May-11 49.40 58.39 48.02 11.3301-Nov 107.72 941.25 Jun-11 50.16 53.41 52.25 10.63% change 4.5% 4.8% Jul-11 47.65 46.63 55.34 12.04Source: ICE Aug-11 46.49 48.55 45.41 13.58 Sep-11 48.15 53.66 40.73 11.85 Coal Oct-11 46.45 52.42 38.20 14.63 NW Europe Japan % change (MoM) -3.5% -2.3% -6.2% 23.5% Steam coal ($/t) Into Into * Note: average of PJM peak and off peak 07-Oct 118.72 138.65 Source: Marex Spectron, ICE, JEPX 04-Nov 117.57 134.10 % change -1.0% -3.3% Source:TheMcCloskeyGroup European Carbon Natural gas 2011 2012 2013 US (Henry Hub) UK GER (BEB) €/t CO2 $/mmBtu (£)ppt €/MWh 03-Oct 10.74 11.20 12.01 Sep-11 3.91 54.36 24.23 01-Nov 9.88 10.35 11.00 Oct-11 3.57 54.73 23.12 % Change -8.0% -7.5% -8.4% % change -8.6% 0.7% -4.6% Source: Marex Spectron Source: ICE, Marex Spectron60 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • Global Nuclear World Nuclear Association’s global nuclear statistical overview Nuclear Electricity Reactors Operable Reactors Under Reactors Planned Reactors proposed Uranium Generation 2010 October 2011 Construction October 2011 October 2011 Required October 2011 2011 billion kWh %e No. MWe net No. MWe gross No. MWe gross No. MWe gross tonnes U Argentina 6.7 5.9 2 935 1 745 2 773 1 740 208 Armenia 2.3 39.4 1 376 - - 1 1,060 63 Bangladesh - - - - - - - - 2 2,000 - Belarus - - - - - - 2 2,000 2 - Belgium 45.7 51.2 7 5,943 - - - - - - 995 Brazil 13.9 3.1 2 1,901 1 1,405 - - 4 4,000 318 Bulgaria 14.2 33.1 2 1,906 - - 2 1,900 - - 309 Canada 85.5 15.1 17 12,044 3 2,190 3 3,300 3 1,845 Chile - - - - - - - - 4 4,400 - China 71.0 1.8 14 11,271 27 28,920 51 59,780 120 123,000 4,079 Czech Republic 26.4 33.2 6 3,722 - - 2 2,400 1 1,200 591 Egypt - - - - - - 1 1,000 1 1,000 - Finland 21.9 28.4 4 2,741 1 1,700 - - 2 3,000 1,152 France 410.1 74.1 58 63,130 1 1,720 1 1,720 1 1,100 9,254 Germany 133.0 28.4 9 12,003 - - - - - - 1,934 Hungary 14.7 42.1 4 1,880 - - - - 2 2,200 331 India 20.5 2.9 20 4,385 6 4,600 17 15,000 40 49,000 1,305 Indonesia - - - - - - 2 2,000 4 4,000 - Iran - - 1 915 - - 2 2,000 1 300 168 Israel - - - - - - - - 1 1,200 - Italy - - - - - - - - 10 17,000 - Japan 280.3 29.2 51 44,642 2 2,756 10 13,772 5 6,760 2,805 Jordan - - - - - - 1 1,000 - Kazakhstan - - - - - - 2 600 2 600 - Korea DPR (North) - - - - - - - - 1 950 - Korea RO (South) 141.9 32.2 21 18,785 5 5,800 6 8,400 - - 4,029 Lithuania - - - - - - 1 1,350 - - - Malaysia - - - - - - - - 1 1,200 - Mexico 5.6 3.6 2 1,600 - - - - 2 2,000 285 Netherlands 3.8 3.4 1 485 - - - - 1 1,000 102 Pakistan 2.6 2.6 3 725 1 340 1 340 2 2,000 113 Poland - - - - - - 6 6,000 - - - Romania 10.7 19.5 2 1,310 - - 2 1,310 1 655 175 Russia 159.4 17.1 32 23,084 10 8,960 14 16,000 30 28,000 4,912 Saudi Arabia - - - - - - - - 16 20,000 - Slovakia 13.5 51.8 4 1,816 2 880 - - 1 1,200 299 Slovenia 5.4 37.3 1 696 - - - - 1 1,000 137 South Africa 12.9 5.2 2 1,800 - - - - 6 9,600 304 Spain 59.3 20.1 8 7,448 - - - - - - 1,379 Sweden 55.7 38.1 10 9,399 - - - - - - 1,366 Switzerland 25.3 38.0 5 3,252 - - - - 3 4,000 527 Thailand - - - - - - - - 5 5,000 - Turkey - - - - - - 4 4,800 4 5,600 - Ukraine 84.0 48.1 15 13,168 - - 2 1,900 11 12,000 2,288 UAE - - - - - - 4 5,600 10 14,400 - United Kingdom 56.9 15.7 18 10,745 - - 4 6,680 9 12,000 2,093 USA 807.1 19.6 104 101,433 1 1,218 7 8,640 27 37,400 18,376 Vietnam - - - - - - 2 2,000 12 13,000 - WORLD** 2,630.0 13.8 432 368,467 63 63,934 152 171,325 350 399,655 62,552IAEA- for nuclear electricity production & percentage of electricity (% e) 01/07/11. WNA: Global Nuclear Fuel Market (reference scenario) - for U.Operating = Connected to the grid; Building/Construction = first concrete for reactor poured, or major refurbishment under way; Planned = Approvals, funding or major commitment in place, mostly expected in operation within 8-10 years;Proposed = Specific program or site proposals, expected operation mostly within 15 years. Planned and Proposed are generally gross MWe, operating and construction generally net MWe.New plants coming on line are balanced by old plants being retired. Over 1996-2009, 43 reactors were retired as 49 started operation. There are no firm projections for retirements over the period covered by this Table,but WNA estimates that at least 60 of those now operating will close by 2030, most being small plants. The 2009 WNA Market Report reference case has 143 reactors closing by 2030.TWh = Terawatt-hours (billion kilowatt-hours), MWe = Megawatt net (electrical as distinct from thermal), kWh = kilowatt-hour.mccloskeycoal.com ©IHS Global Limited November 2011 McCloskey Nuclear Business | 61
    • Nuclear Business Share PricesNuclear Related Share Prices - as of 7 November 2011Company 11-Oct 07-Nov % Change Currency ExchangeAlstom 25.24 27.06 7.2% € ParisAreva 22.50 20.37 -9.5% € ParisCentrica 307.60 302.50 -1.7% pence (£) LondonCameco Corp 20.57 20.35 -1.1% C$ TorontoCEZ 0.71 0.75 5.5% K ‘000 PragueChubba Electric Power 1.49 1.37 -8.2% Y ‘000 TokyoDenison Mines Corp 1.21 1.52 25.6% C$ TorontoE.ON 17.89 16.62 -7.1% € FrankfurtEdF 22.96 21.30 -7.2% € ParisENBW 32.79 34.80 6.1% C$ TorontoEndesa 17.45 16.91 -3.1% € MadridEl Paso Electric 31.24 33.55 7.4% $ New YorkEnergy Resources of Australia Ltd 3.29 1.82 -44.7% A$ SydneyEntergy Corp 65.72 69.42 5.6% $ New YorkExelon Corp 42.10 44.83 6.5% $ New YorkFirst Uranium 0.23 0.27 17.4% C$ TorontoFortum 17.80 17.69 -0.6% € HelsinkiGDF Suez 23.17 20.49 -11.6% € ParisGeneral Electric 16.14 16.39 1.5% $ New YorkHitachi 0.39 0.42 9.3% Y ‘000 TokyoIberdrola 5.25 4.97 -5.3% € MadridKansai Electric Power 1.21 1.12 -7.4% Y ‘000 TokyoKorea Electric Power 22.10 24.15 9.3% Won ‘000 SeoulMcDermott International 14.20 11.64 -18.0% $ New YorkMitsubishi Heavy Industries 0.33 0.32 -0.6% Y ‘000 TokyoNextEra Energy 54.77 56.03 2.3% $ New YorkPaladin Energy Ltd 1.64 1.42 -13.4% A$ SydneyPaladin Energy Ltd 1.70 1.46 -14.1% C$ TorontoRWE 30.54 29.33 -4.0% € FrankfurtSiemens 72.85 72.84 0.0% € FrankfurtTohoku Electric Power 1.01 0.80 -21.3% Y ‘000 TokyoTokyo Electric Power 0.22 0.29 36.1% Y ‘000 TokyoToshiba 0.33 0.35 5.5% Y ‘000 TokyoUranium One Inc 2.14 2.79 30.4% C$ TorontoUranium Participation Corp 5.58 5.86 5.0% C$ TorontoUSEC Inc 1.29 1.88 45.7% $ New YorkMNB basket 885.64 883.69 -0.2%Note: The MNB basket is a simple sum of the stocks it tracks in this table. It is purely used as an indication for which way the wind is blowing for Nuclear related companystocks and should not be viewed as a empirical financial tool.62 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com
    • McCloskey Asia Pacific CoalOutlook Conference 2011November 30 – December 1 2011, Conrad Bali, Bali, IndonesiaThe event for producers, traders, financiers, logistics operators and buyerswithin the Asian coal markets.Sponsorship and exhibition opportunities are available:If your company is interested in sponsoring or exhibiting at this event, please contact:Julia Potter, Tel: +44 (0)1730 236169, Email: julia.potter@ihs.comFor further information please contact: Susie Hansford, Tel: +44 (0) 1730 236174, Email: susie.hansford@mccloskeycoal.com For updates visit www.mccloskeycoal.com/conferences IHS Jane’s CBRN Response Handbook 4th Edition A comprehensive pocket guide providing essential planning and response procedures for a chemical, biological, radiological or nuclear incident. Jane’s CBRN Response handbook provides comprehensive single-source instruction for professional first responders and anyone involved in responding to a CBRN-related incident. Includes the latest information on: • Indicators of possible chem-bio agent use • Response plan scenarios 3701_0811TB • Chem-bio agents and their treatments • Personal protective equipment • Detection equipment • Decontamination procedures Order your copies now at www.ihs.com/jcbrnrh IHS Jane’s Sales Department 3 Princess Way, Redhill, Surrey, RH1 1UP, UK Enquiries: Carole.Devereux@ihs.com
    • Events Calendar 14-18 Nov 2011: International Conference on Research 17-18 Apr 2012:Nuclear Environmental Discharge Conference Reactors: Safe Management and Effective Utilization; Rabat, 2012; Harwell, UK; Nuclear Institute. Morocco; International Atomic Energy Agency (IAEA). Contact: Tel: +44 20 8695 8223; Fax: +44 20 8695 8229 Contact: Conference Secretariat. Tel: +43 1 26000 21314; Email: r.hayman@nuclearinst.com Fax: +43 1 2600 7. Email: Official.Mail@iaea.org http://www.nedcon2012.com http://www-pub.iaea.org/MTCD/Meetings/ 17-19 Apr 2012 : World Nuclear Fuel Cycle : Helsinki ; 5-6 Dec 2011: Nuclear Energy Asia 2011; Hong Kong; International World Nuclear Association. Quality and Productivity Centre. Contact: IQPC. Contact: Tel: +44 20 7451 1520; Fax: +44 20 7839 1501 Tel: +65 6722 9388; Fax: +65 6224 2515. http://www. wnfc.info Email: enquiry@iqpc.com.sg http://www.nuclearenergyasia.com/ 18-19 Apr 2012: 45th JAIF Annual Conference; Tokyo, Japan; Japan Atomic Industrial Forum. Contact: Conference Secretariat. 6-8 Dec 2011: III International Forum of Nuclear Industry Tel: +81 3 6812 7101; Fax: +81 3 6812 7110. Suppliers ATOMEX 2011, Moscow, Russia, Rosatom. Email: 45th-annual@jaif.or.jp Contact: Tel: +7 495 66 33 821; Fax: +7 495 66 33 820 http://www.jaif.or.jp/english/index.php http://www.atomeks.ru/en/atomex2011 23-25 Apr 2012: Nuclear Fuel Cycle Conference 2012; Manchester, 17 Jan 2012: World Nuclear Power Briefing 2012 - UK; Nuclear Institute. Policies, Issues, Safety and Technological Enhancement Contact: Tel: +44 20 8695 8220; Fax: +44 20 8695 8229 for New Nuclear; Hanoi, Vietnam; Strategic Email: rcragg@icheme.org Communications. Contact: Christina Logan. http://www.nuclearinst.com Tel: +64 21 858 455 E mail: clogan@pacific.net.sg http://www.stratcoms.com/nuclearpower2012 21-23 May 2012: Nuclear Energy Assembly (NEA); Charlotte, US; Nuclear Energy Institute. 9-10 Feb 2012: Platts 8th Nuclear Energy Conference: Bethesda, Contact: NEI. Tel: +1 202 739 8000; Fax: +1 202 785 4019. US: Platts. Contact: Ron Berg, Tel: 781-430-2118 Email: conferences@nei.org ron_berg@platts.com / www.nuclearenergyconference.com http://www.nei.org/newsandevents/conferencesandmeetings/2012 12-15 Feb 2012: Pime 2012; Warsaw, Poland; European Nuclear 23-24 May 2012: Radioactive Materials Transport and Storage Society. Contact: Ms Kirsten Epskamp, Tel: +32 2 505 30 54; 2012; London, UK; Nuclear Institute. Fax: +32 2 502 39 02 Email: pime2012@euronuclear.org Contact: Tel: +44 20 8695 8223; Fax: +44 20 8695 8223 http://www.euronuclear.org/events/pime/pime2012 Email: r.hayman@nuclearinst.com http://www.ramtransport2012.com 21-23 Feb 2012: India International Nuclear Symposium; New Delhi; World Nuclear Association. 3-6 Jun 2012: 9th International Conference on Nuclear Option in Contact: Tel: +44 20 7451 1520; Fax: +44 20 7839 1501 Countries with Small and Medium Electricity Grids; , Zadar, Croatia; http://www.wna-symposium.org/india/ Croatian Nuclear Society. Contact: Dr Igor Vukovic, igor.vukovic@fer.hr 26 Feb-1 Mar 2012: Waste Management 2012; Phoenix, US; WM http://www.nuclear-option.org/ Symposia. Contact: Jenny Seffrood, Tel: +1 480 557 0263; Fax: +1 520 829 3550 4-6 Jun 2012: Atomexpo 2012; Moscow, Russia; Rosatom. Email: onlinereg@wmarizona.org Contact: Tel +7 495 66 33 821; Fax: +7 495 66 33 820 www.wmsym.org Email: atomexpo@atomexpo.com http://www.atomexpo.com 13-15 Mar 2012: Regulatory Information Conference (RIC): Washington DC, US; US NRC. Contact: Tel: +1 301 415 7000 2-6 Sep 2012: Top Fuel 2012; Manchester, UK: European Nuclear http://www.nrc.gov/public-involve/conference-symposia/ric/ Society. Contact: Kirsten Epskamp, Tel. +32 2 505 30 54; Fax +32 2 502 39 02 3-6 Apr 2012: Nuclear Industry China 2012 (NIC ‘12); Beijing, Email: topfuel2012@euronuclear.org China; Chinese Nuclear Society (CNS), China Nuclear Energy www.topfuel2012.org Industry Corporation (CNEIC) and Beijing Municipal Commission of Commerce (BMCC). 12-14 Sep 2012: 37th Annual Symposium; London, UK; Contact: Lin Yi. Tel: +86 10 65268150; Fax: +86 10 6526815. World Nuclear Association. Email: linyinic@126.com Contact: Tel: +44 20 7451 1520; Fax: +44 20 7839 1501 http://www.nic-expo.net/nic2012/ http://www.wna-symposium.org/64 | McCloskey Nuclear Business November 2011 ©IHS Global Limited mccloskeycoal.com