Cooperation between AREVA and TVEL/MSZ in ERU Fuel Assembly Manufacturing - a Valuable Part of Sustainable Fuel Cycle Solutions

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1 Cooperation between AREVA and TVEL/MSZ in ERU Fuel Assembly Manufacturing - a Valuable Part of Sustainable Fuel Cycle Solutions Ingo Koban Vice President, Mining & Front End Sales Europe & South America June 27 th, 2013 Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.1

2 Global nuclear capacity is expected to increase by nearly 50% over Nuclear capacity retirements and additions 800 GW ~50% Used fuel inventories (1000 thm) ~50% 400 (thm/y) Annual unloadings ~50% Rest of the World Asia Russia Europe North America Source: IEA World Energy Outlook Optimizing the fuel cycle will become even more crucial to ensure a sustainable growth of the nuclear energy Source: AREVA Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.2

3 Used nuclear fuel management issues can be different Possible utility view: How to empty fuel pools? How to evacuate on-site interim storages? How to manage historical used fuel stockpiles & resulting Pu and RepU? How to reduce final disposal costs? How to secure public acceptance? How to manage non-proliferation issues? Possible fuel cycle industry view: How to master industrial cycle for used nuclear fuel How to ensure reactor deployment (Fast Reactors, MOX utilization) Solutions for used fuel management must evolve accordingly Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.3

4 Recycling: a cornerstone of Sustainable Fuel Cycle Solutions Existing industrial footprint for Recycling of Western used fuel: A proven industrial performance Assemblies Reprocessing of used fuel: La Hague (France) Sellafield (UK) More than 6700 MOX FAs already used in LWRs as of jan Treatment of fissile material out of the reprocessing: La Hague (France) Seversk & Elektrostal (Russia) More than 7200 ERU FAs already used in LWRs as of jan MOX ERU Fuel assembly fabrication: MOX in Melox (France) ERU in Romans (France), Elektrostal (Russia), Lingen (Germany) Performance : equivalent to UO 2 fuel Source : AREVA Recycling is a fully available and proven industrial solution of more than 40 years of experience Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.4

5 Classical integrated model: a consistent offering Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.5

6 Sustainable Cycle Solutions Case 1 How to close the cycle with a single reactor? Pre-cycling for end-of-life materials balancing Pre-Cycling scheme Final disposal Interim storage CSDV / CSDC Fresh MOX Used fuel Fresh ERU RepU advance PU advance Reactor RepU re-imbursement PU re-imbursement AREVA loans RepU and Pu for ERU and MOX fabrication that will be loaded in the reactor. MOX will be loaded until 6-7 years before EOL of the NPP. Last MOX assemblies will be discharged with the shut-down of the NPP Remaining years until shut-down, the NPP will be loaded with Uranium fuel only. Reprocessed Uranium and Plutonium resulting from treatment will be transferred to AREVA as a re-imbursement of the loaned material No Plutonium and Uranium left; only residues will be returned to the customer for storage & disposal Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.6

7 Sustainable Cycle Solutions Case 2 Global Recycling Services a innovative scheme Reprocessing utilities Reprocessing Facilities Third party reactor Used fuel SF Reproccesing MOX FA Material flows Reprocessing utilities reactors Transport Pu RepU CSD Reenrichment ERU FA MOX UOx CSD Interim storage Waste transport and disposal CSD ERU ERU and MOX burning reactor UOx Market Final disposal Waste volume reduction No safeguards, limits proliferation considerations and transfers Pu title Risks reduction on financial & environmental liabilities linked to used fuel management Offers solutions for the RepU, Pu and used ERU and MOX fuel Operates reprocessing facilities / sells ERU and MOX Has access to new financing capacities Builds and operates the reactor Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.7

8 Sustainable Cycle Solutions Case 2 Global Recycling Services Safe, responsible, sustainable and non proliferating Non proliferation Economic Value Safety & Fleet performance Limited Environmental Footprint Fuel fabrication & assemblies processed in facilities safeguarded Utilization of RepU and Pu third party reactors prevents from the constitution of RepU and Pu mines No IAEA safeguards for vitrified waste GRS pave the way to innovative financial schemes easing the access to back-end solutions Predictability of the costs Reduction of reactors pools inventories Limitation of stranded fuels ERU and MOX fulfill all operational performance and safety criterias Natural resources savings Stability of waste Excavated volumes divided by a factor of 10 Reduction of waste volume : x 5 Reduction of long term waste radiotoxicity: x 10 Responsible towards future generations Better public acceptance Sustainable Cycle Solutions allows for an optimized, long-term and responsible management of used fuel Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.8

9 ERU fuel assembly fabrication as part of the used fuel management The use of Pu and RepU for the fabrication of MOX and ERU fuel became an answer to some of the customer issues like: How to manage the historical used fuel stockpiles & resulting Pu and RepU? How to reduce final disposal costs? AREVA developed significant know-how in the supply of MOX and ERU fuel assemblies made for Western designed reactors based on more then 40 years of experience and serves today 9 European utilities with such fuel assemblies But in the 90ties some of the western facilities for the reprocessing of RepU were for different reasons not finalized or closed. A cooperation with the Russian nuclear industry was developed to replace or to extend the industrial footprint in the areas of: - re-enrichment of RepU by direct enrichment - re-enrichment of RepU by blending or blending & direct re-enrichment - fabrication of ERU fuel assemblies of Western design Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.9

10 Focus on ERU cooperation with TVEL/MSZ The main reasons for the use of ERU in Western reactors are: Economical advantages and access to material Obligation to use the RepU coming from Reprocessing Non-proliferation is for RepU not relevant The ERU-cooperation between AREVA and MSZ was agreed beginning of the 90ties After the qualification of MSZ the first fuel assemblies were delivered in 1996 to German NPP s starting from 2000 the yearly delivery volume reached industrial scale and is today above 100 tu AREVA delivers today ERU fuel assemblies to 8 different customers In 2013 the 3000th ERU fuel assembly for a Western utility will be manufactured in MSZ In addition significant volumes of ERU fuel pellets were shipped to manufacturing sites of AREVA for the fabrication of fuel assemblies there Manufacturing at MSZ based on AREVA fuel design with structural component supply by AREVA Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.10

11 Delivery volumes and quality of ERU fuel assemblies manufactured for Western utilities via blending route Contracts Option/LOI Offers Plan Quality and reliability of the ERU fuel assemblies is high No delays in deliveries Some of the customers signed with AREVA long-term contracts for ERU supply We invite you to become our customer and to take part in the celebration of the hand- over of the 4000th Fuel Assembly in 2017?, 2016?, 2015? Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.11

12 Questions? Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.12

13 Any reproduction, alteration or transmission of this document or its content to any third party or its publication, in whole or in part, are specifically prohibited, unless AREVA has provided its prior written consent. This document and any information it contains shall not be used for any other purpose than the one for which they were provided. Legal action may be taken against any infringer and/or any person breaching the aforementioned obligations. Sustainable Fuel Cycle Solutions Ingo Koban - ATOMEXPO 2013 June 27th, 2013 p.13