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Nuclear Decommissioning 2012 2012 Site Developments at Capenhurst at Capenhurst Will Vaughan Will Vaughan URENCO Compliance Department 1

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Nuclear Decommissioning 20122012

Site Developments at Capenhurstat Capenhurst

Will VaughanWill VaughanURENCO Compliance Department

1

The Nuclear Fuel Supply Chain

In the mining stage specialised plants

Conversion

In the mining stage, specialised plants crush ground and purify content to obtain 100% uranium concentrate: this product is called U3O8 or yellowcake

Mining The U308 is then transformed through several chemical steps. The end results contains at least 99.9% of uranium:

Enrichment

this product is called UF6

The UF6 is then fed into enrichment plants, to augment the concentration of fissile

FuelFabrication

Electricity

to augment the concentration of fissile isotope 235 to assays of 2 to 5%: this product is called EUP or LEU

Th EUP i th t d i t d

Nuclear PowerPlant

Transmission &The EUP is then reconverted into powder and compressed into pellets. In a second step, pellets are inserted into metallic rods and the rods assembled in square or octagonal grids to fit a reactor core design:

Distribution

2URENCO Proprietary

g g gthis product is called a fuel assembly

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

URENCO LocationsA Global PresenceA Global Presence

UUKC h t UKUUKCapenhurst UK

UNLAlmelo, NLUNLAlmelo, NL

UL/UEC LtdStoke Poges, UKUL/UEC LtdStoke Poges, UK

Capenhurst, UKCapenhurst, UKUDGronau, DUDGronau, D

UUSAUUSAURENCO, IncArlington, USAURENCO, IncArlington, USA

Eunice, NM, USAEunice, NM, USA

Operating centrifuge plantOperating centrifuge plant

OfficesOffices

5,000Capenhurst400Eunice

14,600Group capacity end 2011 (tSW)

5,000Capenhurst400Eunice

14,600Group capacity end 2011 (tSW)

3

4,200Gronau5,000Almelo4,200Gronau5,000Almelo

URENCO UK Ltd (UUK)Capenhurst ChesterCapenhurst, Chester

4Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Nuclear Generating Capacity Regional BreakdownRegional Breakdown

GWe Gross WNA 2011 Reference Scenario

600

700Americas Europe Asia Russia & Eastern Europe Other

3

3% of total capacity

10

5001

2

11

11

44

300

400

29

10

3639

44

200 30 2522 20

0

10030 26 25 23

5

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Capacity Build-Up

20000 tSW

16000

18000

10000

12000

14000

6000

8000

10000

2000

4000

01975 1980 1985 1990 1995 2000 2005 2010 2011 2015

Capenhurst (UK) Almelo (Netherlands) Gronau (Germany) Eunice (USA) Planned

6

URENCO Group commits to expand its capacity to meet customer demand

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

What does it all mean?

• Greater capacity requirements• Greater capacity requirements• Constraints on our existing sites require us to address

our legacy (tails management) nowour legacy (tails management) now • Third party service providers may be unreliable and their

costs can not be controlledcosts can not be controlled• Tougher market conditions require URENCO to consider

broadening our service offering through range and g g g gvolume

• Land, facilities and expertise in new work areas are required to support the business long-term

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Tails Management

• Tails (depleted uranium by product) is still considered a• Tails (depleted uranium by-product) is still considered a valuable asset (potential for re-enrichment)• Current management of tails is by storage on site or conversionCurrent management of tails is by storage on site or conversion

off site (Russia / France) to a safer compound• Storage of tails as UF6 has chemotoxic risks, therefore is

d i bl i th l tundesirable in the long term

2008 URENCO Chemplants formed• 2008 - URENCO Chemplants formed• Deliver a new Tails Management Facility to URENCO group for

safe, sustainable deconversion & storage, g

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Tails Management

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Tails Management

• 2 kilns & facilities to deconvert c10,000 tonnes / year to U OU3O8• Cylinder Handling Facility• Tails Deconversion Plant• Cylinder Wash Facility• Residue Recovery Facility• Uranium Oxide Store • Decontamination & Maintenance Facility

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Tails Management

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Tails Management

• Allows long-term continued operation of the URENCO sites, with controllable tails management costs and reduced chemo-toxic hazard

• Potential for Hydrogen Fluoride sales

• A new venture for the group – top tier COMAH chemical plant

• Operational by Dec 2015• ~60 employees

UUK li• UUK licensee

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Addressing the site legacy

• c40% of the Capenhurst site is NDA owned and operated• c40% of the Capenhurst site is NDA-owned and operated by Sellafield Limited:• Decommissioning and clearance of the nuclear legacy• Uranic storage

I• Issues:• Large UF6 inventory, old containers• Some legacy issues at Capenhurst are lower in NDA’s prioritiesSome legacy issues at Capenhurst are lower in NDAs priorities

• 2011 Capenhurst Nuclear Services formedp• Deliver a package of work to the NDA on behalf of URENCO• ~45 employees

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Addressing the site legacy

• CNS synergies with UUK and with UCPCNS synergies with UUK and with UCP• Management of UF6• Waste management• Site managementSite management• Legacy cylinder washing

• 2012 it is planned that the site will be re-licensed into a single2012 it is planned that the site will be re licensed into a single Nuclear Site Licence held by UUK with UCP, CNS & others as tenant organisations, responsible for their own operations

• CNS will:• Wash legacy UF6 cylinders• MDU & UF6 Receipts6 p• Residue Reprocessing• Waste Packaging & Disposal• Store Uranium

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

URENCO’s view

• Land available to the group for:• Land available to the group for:• Recycling centre• Future enrichment capacityFuture enrichment capacity• Other investment opportunities for Capenhurst to support the site

and the industry

• Greater opportunity for infrastructure improvement• Electrical distribution• Effluent management

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK

Addressing the site legacy

• CNS will develop a Legacy Cylinder Facility to:• CNS will develop a Legacy Cylinder Facility to:• Decant UF6 out of older type cylinders into modern, type 48Y cylinders

capable of being transported or fed into the UCP operated TMF• Cylinder washing, decontamination, uranic reside management, waste

management

• Benefits of Site Integration• Single NSL• Diversification of skills• Diversification of skills• Sharing of experience• Reduced costs• Environmental improvements• …benefits to the tax payer

Nuclear Decommissioning 201228 June 2012 - Will Vaughan, UUK