1 January RECYCLING

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1 1 1 January 2009

2 Your health, your security are our priorities Welcome to the AREVA La Hague Plant. Here are our rules which during your visit should be yours! Follow your guide at all times Do not run Hold on to the handrail Use the pedestrian walkways Cameras, video cameras and computers are subject to authorisation 2 2

3 Nuclear energy, a recyclable energy January 2009

4 1 AREVA, world leader for nuclear 4 4

5 An integrated offer serving energy professionals CO 2 - free power generation solutions Nuclear Transmission & Distribution Solutions for reliable electricity transmission and distribution 5 5

6 2 A favorable energy context for nuclear power 6 6

7 A favorable energy context for nuclear power Uranium will continue to be available for many years Nuclear energy does not exacerbate global warming Nuclear is competitive Nuclear energy and renewables are complementary In the context of the nuclear renaissance, recycling presents a greatest advantage 7 7

8 3 Recycling, a responsible solution 8 8

9 Recycling nuclear fuel : our job at the AREVA la Hague plant Recycled Fuel Customers Reactors Recycling Used Fuel Packaged Waste Interim storage facility or repository Return to our customers 9 9 January 2009

10 96% of a used fuel assembly is recyclable Composition of used light water reactor fuel 1 LWR = 500 kg uranium before irradiation in the reactor Recyclable materials Waste After irradiation* Uranium 475 to 480 kg (94 to 96%) Plutonium 5 kg (1%) Fission Products 15 to 20 kg (3 to 5%) UOX Fuel MOX Fuel Final Waste * Partly dependant on the burn-up rate January 2009

11 The main stages in recycling Treatment operations (shearing - dissolution - separation - purification) Recycled Fuel Fuel elements U Pu Unloading Interim storage Hulls and end-pieces Vitrified residues (CSD-V) Compacted residues (CSD-C) Ultimate Waste At each stage of the process, nuclear material is accounted for under EURATOM and IAEA safeguards January 2009

12 Standard packaging for long-term management Compacted waste (CSD-C container) Vitrified waste (CSD-V container) Hall January 2009

13 Recycling, a responsible solution Savings in natural resources 96% of recyclable material is recovered Savings of up to 25% in natural uranium Recycling creates available energy reserves 1 gram of plutonium or 100 grams of uranium are the equivalent of more than 1 ton of oil Using recovered Plutonium to produce electricity, recycling used fuel contributes to non-proliferation 13 13

14 Recycling, a responsible solution Recycling doesn t weigh down the nuclear bill In France, the recycling process accounts for only 6% of the cost of the kwh The uranium price hike makes recycling a more interesting proposition: the price of uranium oxide rose from $20/lb in January 2005 to $74/lb in March 2008 Proven competitiveness compared to direct disposal Waste is easier to manage The volume of highly radioactive waste is reduced by 5 The toxicity of highly radioactive waste is reduced by 10 All the while protecting mankind and the environment 14 14

15 4 Social acceptance, a major issue 15 15

16 The waste question, an issue of public opinion Nuclear waste represents a very small quantity of total waste The high-level long-lived nuclear waste accounts for only 5 grams per year per inhabitant of France Waste generated per person per year in France Total waste production (industry, agriculture, household, public works ) kg Long-lived waste 20 to 30 gr Nuclear waste, less than1 kg Industrial waste 450 kg High-level waste 5 gr Sources : ADEME 2004, site ANDRA et Inventaire National de l ANDRA 16 16

17 5 La Hague : a recycling site 17 17

18 La Hague site The largest reprocessing-recycling plant in the world Two production units with the same output UP3, commissioned in 1990 UP2 800, commissioned in 1994 Two adjoining plants A total annual capacity of 1700 tons of used fuel The original production unit will be decommissioned A flexible, high-performance industrial tool An appropriate organizational structure Surface area : 300 hectares Direct jobs : 3100 direct jobs + sub-contractors (5000 in all) The largest employer in North-Cotentin area Purchasing : around 350 Million invested each year in local economy Taxes and duties : around 175 Million per year Environmental analyses : samples and analyses 18 18

19 More than 24,000 tons of used fuel treated at la Hague plant At 1st January 2009 Tons treated EDF France 14,260 German utilities 5,479 Japanese utilities 2,944 Swiss utilities 771 Synatom (Belgium) 672 EPZ (The Netherlands) 336 SOGIN (Italy)

20 6 Nuclear Safety : our top priority 20 20

21 Safety without compromise The safety of a reprocessing plant is based on : Design bases Facilities designed to be 2/3 underground Operating procedures The plant is highly automated 1 st barrier : Process containment 2 nd barrier : facility There are two predominant safety features: Containment (three barriers) Cooling 3 rd barrier : building INES 21 21

22 7 A completely controlled impact on health and the environment 22 22

23 A high priority : employees Taking radioprotection into account from the original design has allowed us to achieve extremely low personnel exposure levels 6 msv/man/year 3 msv/man/year , , Average annual dose per person (AREVA NC and subcontractors) SITE (2008 : 0,131 msv /Man/year) AREVA NC (2008 : 0,038mSv/man/year) SUBCONTRACTORS (2008 : 0,246 msv /man /year) NATURAL RADIOACTIVITY msv 23 23

24 In-depth monitoring Monitoring is carried out: in the air on land: surface water, grass, milk, etc. at sea: coastal waters, seaweed, shellfish, fish, etc. A host of measurements around 23,000 samples taken every year around 70,000 analyses made every year Under the watchful eye of the authorities who also make their own checks 24 24

25 No impact on health From a radioecological perspective, living one year near the site is the equivalent dose of two days of natural exposure Natural Exposure 2.4 msv / year La Hague impact < 0.02 msv / year Impact calculated since 2004 using a model produced by the GRNC, making allowance for the results of the AREVA NC public enquiry (1998), for a reference group: population likely to be the most highly exposed due to its position and lifestyle. msv Releases January 2009

26 Comparison of approximate annual doses Average natural exposure in France : Natural exposure in Limousin : A medical X-ray of the abdomen : A medical X-ray of the lungs : Consumption of one litre of mineral water per day during one year 2.4 msv per person 6 msv per person 1 msv 0.1 msv 0.03 msv Annual impact of AREVA-La Hague releases : < 0.02 msv A Transatlantic flight from Paris : A 400-meter increase in altitude : Consumption of 200 grams of mussels: 0.02 msv 0.02 msv 0.02 msv msv 26 26

27 AREVA La Hague in video January 2009

28 28 28 January 2009

29 AREVA worldwide uranium operations Canada Germany Finland Russia Kazakhstan USA France Senegal Niger Mongolia UM UM Centrafrican Rep. Gabon Namibia UM UM Australia South Africa Mines Operating Mining Projects under Development Exploration UM Mines Reclamation Offices UraMin Sites 29 29

30 Uranium will continue to be available for many years Known uranium reserves represent around 300 years of consumption YEARS 300 Estimated reserves Oil Gas Natural Uranium Coal 30 30

31 and for even longer thanks to recycling Thanks to recycling and Gen. IV reactors, 50 years worth of used fuel will represent 5000 years of resources YEARS Estimated reserves Natural Uranium Gen.III Recycled Uranium Gen.IV Recycled Uranium 31 January

32 Nuclear energy does not exacerbate global warming In France, electricity generation accounts for only 10% of greenhouse gas emissions, compared to an average of 40% in the rest of the world gc eq /kwh 400 Greenhouse gas emissions due to electricity generation from a variety of sources The ranges correspond to differences in production technology Coal Oil Natural Gas Renewable Energies Nuclear Energy Source: OECD/NEA (2001) 32 32

33 Nuclear is competitive and even more so if we include the carbon tax MWh Cost of production $2003/MWh Investment Op.& Maintenance Fuel Carbon taxes???????? Nuke Coal Gas Nuke Coal Gas Nuke Coal Gas Nuke Coal Gas OECD study, 2005 Average baseload generating costs with new power plants 33 33

34 Nuclear energy and renewables are complementary Meeting the planet s energy requirements is a challenge It requires a global approach that aims to meet demand while combating global warming The advantages of nuclear over all other sources of energy must be considered Nuclear energy can be used to generate electricity free of all external constraints 24/

35 The nuclear renaissance will lead to greater amounts of used fuel The nuclear renaissance is underway China and India will be home to at least 35% of all nuclear plants by around 2035 The USA has decided to become the leader of recycling technology by countries representing 2/3 of the world s population have revived or maintained the nuclear option 35 35

36 The nuclear renaissance will lead to greater amounts of used fuel More and more used fuel will be unloaded from reactors In tons (REL + AGR + VVER reactors scenario AREVA: +200 GWe by 2030) WORLD TOTAL (tons) EU + Switzerland Eastern Europe Americas Asia Rest of the world

37 Used fuel from nuclear power reactors 37 37

38 Additional infrastructure TN International rail terminal (Valognes) Harbor facilities (Cherbourg) January 2009

39 Used fuel assemblies are transported in special casks The casks arrives at AREVA la Hague plant by road from the Valognes rail terminal or Cherbourg harbor facilities 39 39

40 Used fuel assemblies are transported in special casks Transport cask TN 12 A 110 tons cask is used to transport 6 tons of used fuel elements 40 40

41 EV South East Vitrified waste is temporarily stored in this building awaiting final disposal The vitrified waste containers corresponding to 40 years of French electronuclear production lined up side by side would only occupy a single football field January 2009

42 Recycling is one way of combating proliferation The treatment plants in the G12 (*) countries provide a double guarantee Facilities situated in stable geopolitical countries Facilities placed under international safeguards In this case, recycling cannot be a vector for proliferation Prevent countries whose intentions are deemed to be less certain from keeping their used fuel containing Pu Once plutonium has been recycled into MOX fuel, its isotopic quality degrades even fureter (*) Australia, Belgium, Canada, France, Germany, Italy, Japon, Netherlands, Spain, Sweden, Switzerland, UK, USA 42 42

43 Recycling is a competitive solution compared to direct disposal A 1994 OECD study shows that the overall costs of recycling and direct disposal are more or less identical A study conducted by BCG (Boston Consulting Group) in the US in 2006 shows the costs of recycling and direct disposal to be comparable DIRECT DISPOSAL Credits (Plutonium and Uranium) Interim Storage Recycling Transports Waste disposal Interim Storage Transports Packaging Waste Disposal 43 43

44 Recycling makes waste easier to manage Less waste m3/gwhe Previous generation: Gas-cooled graphite moderated reactors Current generation: Pressurized water reactors m3/gwhe m3/gwhe m3/gwhe m3/gwhe m3/gwhe Future generation: Gen. IV (> 2040) Gen. II Gen. III (conception) Gen. III (1991) Gen. III (1995) Gen. III (2000) Gen. IV (goal) in a standardized form 44 44

45 Reducing final waste volume by 5 m3/mtu Canistered Used fuel 0.5 Compacted Vitrified 0 Final waste after Treatment Direct disposal of used fuel % Pu in final waste 0,1% (base) 100% January 2009

46 24,500 tons of used fuel treated (*) Situation at 1 January 2009 Tons (*) Excluding gas-cooled graphite moderated reactor fuels Uranium oxide MOX

47 7 6 MAJOR ACCIDENT SERIOUS ACCIDENT The International Nuclear Event Scale Off-site Impact On-site impact Defense in depth degradation Major release : widespread health and environmental effects Significant release : likely to require full implementation of planned countermeasures ACCIDENT WITH OFF-SITE RISK ACCIDENT WITHOUT SIGNIFICANT OFF-SITE RISK SERIOUS INCIDENT Limited release : likely to Severe damage require partial implementation to reactor core / of planned countermeasures radiological barriers Minor realease : Significant damage public exposure to reactor core / of the order of radiological bariers / prescribed limits fatal exposure of a worker Very small release : Severe spread public exposure of contamination / at a fraction of acute health effects prescribed limits to a worker Near accident no safety layers remaining 2 INCIDENT Significant spread of contamination / overexposure of a worker Incidents with significant failures in safety provisions 1 ANOMALY Anomaly beyond the authorized operating regime 0 DEVIATION No safety significance Out of sacle event No safety relevance January 2009

48 A few definitions The Becquerel (Bq) : a unit of measure of radioactive decay (radioactivity) quantifying the number of radioactive disintegrations per second The Gray (Gr) : a unit of measure of energy absorbed by a biological organism from radiation. Absorbed dose (Gray) The Sievert (Sv) : a measure of the potential biological impact of the energy absorbed by an organism from radiation Radiological impact (Sievert) Even though radioactivity cannot be seen or smelled, it can be easily measured! 48 48

49 Sources of natural background radiation Other sources (nuclear industry < 0,6 %) Terrestrial radiation Cosmic radiation Radiation from the human body Average natural exposure in France : 2.4 millisieverts /man/year Medical radiation Radon (natural gas) Natural exposure January 2009

50 Releases strongly reduced at La Hague Activities Liquid radioactive releases: period TBq TBq TBq tu GWa , , , , , , , , , Releases in sea : β,γ activities (out of tritium) Releases in sea : α activities (out of tritium) Releases in sea : activities tritium tu : annual tonnage of used fuel treated GWa : annual energy produced by the used fuel treated January 2009