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SPECIAL ISSUE
2008
A World of Energy
from AREVA
Thank you for the inspiration
Anne Lauvergeon
Chief Executive Officer AREVA group
Dear Reader,
2007 has been a momentous year for our industry.
Global energy needs, combined with climate preservation concerns, have pushed all players - from
government leaders to major utilities - to re-examine
their energy mix options.
EnergyBusiness
Special Issue 2008
Publisher
Michel-Hubert Jamard
Publication Director
Céline Roche
Design and Production
In & Out Concept
Contributing Editors
Nathalie Bonnefoy
Sophie Cretal
Guillaume Dewavrin
Beatriz Garcia
Sabine Gross
Cassie Hagan
Andrea Jennetta
Pascal Marbois
Jean-Luc Palayer
Laurence Pernot
Myrto Tripathi
Illustration support
Pia Correa-Sibrac
Stéphanie Ducloy-Agez
Danièle Rubel
Jason Riley
AREVA remained at the forefront of this effort by
proposing and delivering the safest and most reliable
CO2-free power generation solutions, all the way
through to electricity distribution and transmission.
We pride ourselves on our unique brand of expertise
– spanning the entire fuel cycle – and our integrated
offers as in the recent headline-making contract with
China Guangdong Nuclear Power Corp.
However, our greatest satisfaction derives, day-to-day,
from knowing that we have some of the world’s most
successful and demanding business organizations as
customers. Your confidence, loyalty and insistence on
the highest standards constantly inspire us to excel in
our mission: to develop, hire, train, innovate, invest,
and just to “make it happen”.
On behalf of all AREVA employees, I therefore thank
you for the inspiration and wish you a successful and
prosperous 2008.
Anne Lauvergeon
Magazine published by
AREVACOM
ISSN 1953-5856
Cover: Stone / Betsie Van der Meer – Edito: AFP / Eric Piemont – Market Visions: AREVA / Paivi Bourdon,
Georges Carillo, Nicolas Wolter, EDF/ Image&Process – Front-End: ETC / URENCO, The Image Bank /
Jorg Greuel, AREVA / Warren Wright, Nicolas Petitot – Reactors & Services: AREVA / Laurence Godart,
Paivi Bourdon, EDF – Back-End: AREVA, E.ON – Transmission & Distribution: AREVA
Business Highlights: AFP / Eric Feferberg, AREVA / Warren Wright, Pierre Troyanowsky.
www.areva.com
© AREVA 2008
At a Glance
This Special 2008 Issue celebrates AREVA’s international
presence and integrated approach to energy with selected
articles covering the group’s major businesses
4
2008 Market Visions
EnergyBusiness asked AREVA Senior
Executives to share their thoughts
on the industry’s main challenges
in the year ahead
10
Front-End
Home Grown Enrichment for US Utilities
14
Reactors & Services
The Renaissance Fleet is on its Way
18
Back-End
MOX fuel: More than
just a Nuclear Waste Solution
22
Transmission & Distribution
T&D Solutions for CO2 Reductions
26
Business Highlights
China Takes All for 8 billion euro
International Approach to Non-Destructive Examination (NDE)
INRA: A Way Forward for US Recycling Plans
Stronger Partnership for Recycling
At a Glance
3
Home Grown
Enrichment
2008 Market
Visions
for US Utilities
asked
Senior
Executives
to share
Earlier thisEnergyBusiness
year AREVA broke
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the USA,
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andpoints
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of AREVA
Inc., to find out more about AREVA’s latest plan.
3D graphic representation of the EPR construction site at Flamanville, France
Reactors, Fuel and Services
More Electricity,
more Predictability,
Less CO2 Emissions
Luc Oursel expects growing oil and gas prices will
increase pressure on utilities to find more competitive
electricity sources while minimizing carbon emissions.
Nuclear power will continue to gain favor not only as
a CO2-reducing solution but also as a low-cost energy
source, with predictable operations and maintenance
costs. Oursel says 2008 will mark a turning point in the
nuclear renaissance as more utilities will include new
build in their strategic business plans: “a total change
in the market”…
We will further
enhance both our
services and global
supply chain
“We have two major initiatives. First, to maintain
existing utilities generation
high, we will further accelerate measures to improve
both the quality and competitiveness
of
our
maintenance,
outage
and
Luc Oursel
President and CEO, AREVA NP
fuel fabrication services.
Secondly, in response to the nuclear renaissance
challenges, we will continue to boost and expand our
engineering, industrial and supply chain capacities.”
Did you know?
AREVA NP is the only vendor to have started
building a Gen III+ nuclear power fleet.
Accelerated recruitment effort: 1,400 additional
employees over 2008 and 2009.
Massive investments: hundreds of millions
of dollars to strengthen Areva NP’s industrial
capacity in the next few years.
“We expect to deliver
30 to 40 new power plants
by 2020 all over the world”
2008 Market Vision
5
Front-End
Transition and
Tension
The front-end market,
according to Olivier Mallet,
will remain under pressure. Large investments in
uranium mines have been
announced by several
players, but new production ramp up may be
Olivier Mallet
slow. Another source of
Senior Executive Vice President,
Mining-Chemistry-Enrichment
concern will come from
the transition in the enrichment market from gaseous
diffusion to centrifuge enrichment technology.
“Our overall committed
capital expenditures
demonstrate our long-term
effort to strengthen
the nuclear renaissance
and support our
customers”
We will boost production
and investments
“At a time of intense market tensions, we are investing
in order to meet customers’ expectations and support
the nuclear renaissance. Our uranium joint venture in
Kazakhstan went very successfully in 2007 through its
first full year of production and is expected to increase
further its output in 2008. Our recent acquisition of
Uramin will significantly fill out our portfolio of uranium
resources with the addition of three major deposits. The
largest one, in Trekkopje (Namibia), will be commissioned as early as 2009.
Our new conversion facilities, Comurhex II, will be the
most modern in the industry, contributing to strengthen
this essential part of the nuclear fuel cycle. Its first
production is scheduled for 2012.
The construction of AREVA’s new enrichment facility,
Georges-Besse II, is right on track, with its first
Separative Work Units (SWU) to be produced early
2009. Furthermore, a similar project has been launched
in the USA with the objective of providing enrichment
services to growing US customers requirements”.
Did you know?
Six-billion-euro investment is committed to
front-end projects to meet future market demand
for uranium, conversion and enrichment
services.
Fuel
Nuclear Services
Fuel Performance Expectations
Outsourcing Moves
in Nuclear Services
The fuel fabrication sector will continue to be a very
competitive market characterized by overcapacity,
points out Ralf Gueldner. The volatility of uranium
prices means that overall fuel cycle costs will pressurize customers to require even more product
performance. At the same time, greater constraints
during reactor operation will push suppliers to develop
and provide utilities with even more robust fuels…
We will maximize
performance
with zero-tolerance
for failure
“We are responding with a
broad initiative called
Performance Solutions, that
allows us to leverage our
strengths and thereby proRalf Gueldner
Senior Executive Vice President,
vide utilities with bundled
Fuel
fuel products, eventually
including transportation and back-end services. We are
setting a zero-tolerance standard initiative for fuel failure, which includes improved codes, methods,
calculations and uranium utilization. Finally, we are
actively engaged in developing the next generation of
fuel for Light Water Reactor (LWR) as well as Pressurized
and Boiled Water Reactors”.
The nuclear renaissance, explains Joel Pijselman, will
impact utilities in two important ways that will require
a judicious and balanced management response.
Utilities may have the perception that vendors are disproportionately focused on new build to the detriment
of existing operations and services. Meanwhile, utilities
that decide to build new plants will experience human
resources issues which will oblige them to increase
outsourcing operations and maintenance activities
such as outages. AREVA believes it is well-placed to
provide the answer…
“Committed to outstanding
support and maintenance
services worldwide”
We will bring more
vendor support
“We will offer a more complete suite of services. Today,
we support customers by
working on specific activities or projects for outages
and maintenance. However,
we are currently developing
a very comprehensive program that will allow us in
future to manage the entire
outage with the customer.”
Joël Pijselman
Senior Executive Vice President,
Nuclear Services
“We are committed to continuous
fuel improvement and technologies”
Did you know?
AREVA has 40% of worldwide fuel market share
for LWR.
AREVA is the most integrated nuclear company
in the world, combining reactor technology
and services with uranium products in
“one-stop shopping.”
The company’s innovative strength is derived from
expertise in its fuel fabrication centers located
in France, Germany and the US.
Did you know?
AREVA is the global leader for steam generator,
pressurizer and vessel head replacement.
We service more than 160 reactors worldwide.
To meet local customer demand strategic
acquisitions were made in countries such
as Sweden, Spain and South Africa.
AREVA is the only vendor to perform underreactor vessel repairs on Boiled Water Reactors.
2008 Market Vision
7
Back-End
Renewables
Keeping “energy mines” in Mind
Renewables on the Rise
For Jacques Besnainou, the continued volatility in the
uranium and enrichment markets, is making recycled
products increasingly attractive and competitive
worlwide. Utilities are
coming around to the idea
that their used fuel pools
are nothing less than
“energy mines”…
For Bertrand Durrande, the world’s growing energy
demands combined with environmental concerns will
call for a complete mix of energy solutions including
renewables. More countries will join Germany in passing laws that require utilities and power providers
to supply specific percentages of electricity generated by renewables. Some US states have enacted
similar legislation.
We will further
promote and
improve our
services
“Of course we will continue to actively promote
the value of recycling to
utilities. Moreover, we will enhance our existing
services. For example, we have designed a new line of
dry used fuel storage casks to better serve our
European customers’ storage need. These casks are
more competitive, leveraging expertise from both sides
of the Atlantic. We are also formally launching the
design of a Gen III recycling plant. This will feature a
coextraction of uranium and plutonium (COEX™ process)
and in-line recycling of plutonium into MOX fuel.”
Jacques Besnainou
Senior Executive Vice President,
Treatment-Recycling-Logistics
“Nuclear power is truly a
recyclable energy source”
“Renewables are not an option,
they are a necessity”
We will deploy
new technology
Bertrand Durrande
Executive Vice President,
Renewable Energy
“We will deploy specialized
off-shore wind technology
with Multibrid, a company in
which AREVA acquired a
majority stake in 2007. We are
also launching an R&D program in biomass to develop
specific technologies to burn
difficult biomass materials in
a highly efficient way.”
Did you know?
More than 100,000 MT in used fuel storage
world-wide today is equivalent, when recycled
to about 25,000 MT of fresh fuel—or a three-year
supply of fuel for the world’s entire nuclear fleet.
Did you know?
20% of European energy consumption is
expected to come from renewables by 2020.
Transmission & Distribution
Booming Transmission
& Distribution Markets
We will boost innovation, capacities,
staff and local presence
Philippe Guillemot sees strong growth in the transmission and distribution (T&D) market during 2008, with
overall growth expected to continue at 6% annually.
Expansion will be strongest in India, with 20% growth,
followed by China, with 10%. Meanwhile, electricity
markets like Europe and America, with mature T&D
infrastructure, will enter a new development phase,
involving the technology upgrade and replacement of
old systems. Finally, oil rich countries like the Middleeast and Russia also have plans to invest massively in
transmission and distribution.
“We will focus on five strategic initiatives. These include:
– actively pursuing more long-term, innovative business
relationships with market-leading customers
– increasing our manufacturing capacity in all geographies to meet demand and recruiting additional
employees
– localizing expertise closer to our market such as India
or China
– investing 4% of our sales revenue into new R&D
solutions
– last but not least, we will enhance our effort to penetrate the industrial sector.
Did you know?
“We will seek
more long-term
innovative business
relationships with
market-leading
customers”
AREVA has been among the top three global
T&D companies for the last four years.
Our capital expenditures have increased by seven
times since 2004.
In India, T&D’s second largest market, staff will
be doubled to 7,000 within four years.
Phillipe Guillemot
Chairman and CEO, AREVA T&D
2008 Market Vision
9
Home Grown
Enrichment
for US Utilities
In 2007 AREVA said it would start operating a three-million
SWU* centrifuge enrichment facility by 2014 in the USA,
with a possibility of expanding if market conditions are favorable.
With a preferred site soon to be selected and a licence application
with US nuclear regulators to be submitted next, the project
is gathering momentum. EnergyBusiness spoke with
Michael McMurphy, President of AREVA Inc., to find out more
about AREVA’s latest US investment.
Why is AREVA planning to build
a centrifuge enrichment plant
in the United States?
M. McMurphy: The US has 104 operating reactors
and plans to build more, making it the largest enrichment market with significant growth prospects, from
14.7 to 16.5 million SWU by 2020. Moreover, 50% of
US current supply comes from downblending highlyenriched (HEU) stockpile, supplied by Russia under
a contract which ends in 2013.
Mike McMurphy,
President of AREVA Inc.
“It is in our national security interest to expand
our enrichment capacity right here in the US”
Meanwhile, the SWU capacity expected to come on
line in the US over the coming years will only just
replace current production. So, clearly the supply
demand gap will widen, making a strong business
case for us to invest in a new plant. Most importantly,
AREVA is committed to serving its US customers
locally and this investment reflects the importance
we attach to this market for the long term. It’s also
consistent with our strategy to build the nuclear infrastructure that includes a secure domestic fuel
supply chain, to support US utilities and investors in
their decisions to build new nuclear plants.
* Separative Work Units, the standard
measurement of enrichment services.
How have key US stakeholders
reacted to AREVA’s plans?
M. McMurphy: We started out talking to utilities, of
course. Then we met with Members of Congress,
the Nuclear Regulatory Commission (NRC), Department
of Energy, Department of Commerce, Department of
State, the National Security Council, even the White
House. Everyone has been very welcoming, in relation
Sam Shakir (on the right), General Manager Strategic Enrichment Program,
AREVA group
Front-End
11
“We are actively seeking
advanced contracts
with utilities”
3D graphic representation of the US facility
to both energy security and reliability of supply in the
US. There is broad recognition that nuclear energy is
expanding across the globe and that it’s in our national
security interest to expand our enrichment capacity
right here in the US to meet our domestic needs and
be in a position to possibly supply other nations.
A key stakeholder will also of course be the community that hosts the new facility. We have received an
enthusiastic welcome from communities across
the nation that have expressed interest in hosting it.
There is a strong positive attitude towards nuclear
energy, and we have witnessed it first hand in our
ongoing efforts to find a home for this future plant.
Is AREVA concerned about
the licensing process, which
can sometimes be unpredictable
and take longer than expected?
M. McMurphy: We are positive about the licensing
process. After months of careful screening, we will
soon choose a site and file a license application. The
regulatory framework for licensing a centrifuge enrichment facility is well defined and mature. The NRC
has issued two licenses in the past 12 months for similar
facilities. Furthermore, the Enrichment Technology
Company (ETC) centrifuge technology that we plan
to use in the AREVA US facility has already been
reviewed and accepted by the NRC. Given all that,
we believe that our licensing process is in fact predictable and should be completed in a timely manner.
The project schedule calls for
an initial 500,000 SWU production
in 2014. Will AREVA be able to build
the plant in three years?
M. McMurphy: The plant is modular and what we are
talking about is completing and commissioning the
common facilities and first module by 2014. That allows
us to start production while we continue to build the
remaining modules and bring them on line as they are
completed. This schedule is consistent with what we
have achieved thus far in constructing the Georges
Besse II enrichment plant in France. Georges Besse II
started construction in mid 2006 and we are on track
to start production from the first module during the first
half of 2009.
Financing is always a challenge with
nuclear projects. How will AREVA
finance the US centrifuge plant?
M. McMurphy: AREVA has successfully financed large
scale capital projects, and has the wherewithal to
“Our centrifuge technology has already been
reviewed and accepted by the NRC”
continue doing so. As a first step, AREVA is financing the
design and licensing phase from internal cash flow. We are
actively seeking advance contracts with utilities to provide the underpinning for financing the construction.
Bill Whitacre, AREVA’s Sales
and Marketing Manager in the US,
informing his customers about the project
For more Insights, contact:
Laurence Pernot, Corporate Communications, AREVA Inc, laurence.pernot@areva.com
US project based on proven technology
GBII : two years ahead of schedule
In October 2007, AREVA decided to speed up construction of its new enrichment services plant, Georges
Besse II, in France. Construction of the second unit will start two years ahead of schedule. The whole project
is now expected to be completed by late 2016. The speeding up of the project was made possible largely
through a new cascade supply agreement, signed early 2007, between AREVA and Enrichment Technology
Company (ETC), a 50% AREVA joint venture.
The GBII plant under construction in France
Front-End
13
The Renaissance
Fleet is on its Way
When energy experts write about the “nuclear renaissance”
decades from now, AREVA and its client Teollisuuden Voima Oy
in Finland will have a space in the chapter: “They Made it Happen”.
But, as the much-publicized Olkiluoto 3 (OL3) construction project
moves forward, others are already emerging from the drawing
board: the Gen III+ fleet is on its way,…,to China.
EnergyBusiness takes a brief look at some of the key challenges
involved in this extraordinary human and technological adventure.
A year and a half ago the race to build a fleet did not
look so bright. Philippe Knoche, AREVA’s Managing
Director of the OL3 project, was at the forefront of a
daily battle to keep the construction on schedule. In
spite of Herculean efforts to stay on course, the initial
construction calendar finally had to be reassessed.
“It is an on-going challenge and we can never loose
sight of the essential goal which is to build the world’s
first generation (Gen) III+ reactor to the most exacting
standards ever in terms of economic and environmental performance as well as security”, says Knoche.
OL3 construction in Finland
The sobering point was not lost on General Electric
(GE)’s Andrew White who confirmed, at the last World
Nuclear Association (WNA) Symposium in London,
that GE had been “watching OL3’s progress closely”
because it represented challenges that other “good
competitors” would also need to overcome in turn.
“Olkiluoto is the safest
power plant in the world
in its size category.”
Jukka Laaksonen, Director General,
STUK (Finnish Safety Authority)
Greater Project Certainty
Overcoming the renaissance hurdles ahead of its
competitors has further strengthened AREVA’s already
considerable new-build experience. For Knoche
the renaissance is not a mere buzzword, it means
boosting existing infrastructure to an entirely new level:
“at times it feels like we are really shaking the whole
industry out of a forced global 20-year coma!”
everything, from equipment to construction materials.
More than 1,500 suppliers and sub-suppliers were
qualified in record time.
Perhaps one of the biggest challenges was forging
heavy components like reactor pressure vessel, steam
generators, pressurizer, main coolant lines. The group’s
extremely stringent quality requirements led it to reject
and remanufacture some pieces early on.
However, AREVA continues to optimize its EPR
construction sequence and improve its ability to deliver
advanced reactor projects with greater visibility. “In the
framework of our continuous improvement process,
we’re developing specific methodologies that should
allow us to build the next advanced reactors on even
tighter schedules,” explains Knoche.
“AREVA continues
to optimize its EPR
construction sequence”
AREVA has accelerated its worldwide recruiting campaign to attract the best talent in the market place.
Moreover, as Knocke points out: “we now have a
growing pool of technicians with first-hand Gen III+
knowledge who will be able to boost future projects”.
Supplier qualification was another preoccupation. New
sets of qualifications had to be created for just about
Senior management monitoring progress on site at OL3
Reactors & Services
15
AREVA’s Worldwide Industrial Equipment Manufacturing Platform
CHINA
USA
AREVA DONGFANG
Deyang (Joint Venture)
AREVA Inc
Lynchburg, VA
Chengdu
& Shenzhen Plants
(Partnership)
BWXT
Mount Vernon, IN
(Partnership)
BRAZIL
NUCLEP
Rio de Janeiro
(Partnership)
FRANCE
AREVA Creusot Forge - Le Creusot
AREVA Saint Marcel - Chalon sur Saône
AREVA JSPM - Jeumont
Global Procurement,
Local Benefits
One area the group will increasingly leverage, to accelerate future EPR projects, is its integrated global
supply chain, thanks to new investments and strategic
joint ventures. For example, around 100 million euros
will have been invested between 2005 and 2010 for
heavy and mobile components. In France, AREVA NP
is investing 25 million euro to expand the fabrication
capacity at its Chalon and Sfarsteel facilities.
Joint ventures are also part of the strategy. For example, the AREVA NP Inc. joint venture with BWXT Inc.,
completely revamped its Mt. Vernon, Indiana, fabrication facility in anticipation of new orders. Further joint
ventures and strategic alliances/partnerhsips on the
supply side are also being contemplated.
“AREVA is leading the race
to create a Gen III+ fleet that
will benefit EPR operators
worldwide.” Luc Oursel
Luc Oursel, CEO AREVA NP, speaking at the last WNA
conference in London emphasized that the real
challenge for his group was not to build just one or two
EPRs, but a whole fleet with the complete industry
infrastructure to support it and maintain it locally.
Growing Confidence
for EPR Fleet
Today the AREVA 1,600 MWe EPR remains the world’s
first and only Gen III+ design actually being built
anywhere. After the ‘historical first’ in Finland - followed
by the EDF Flamanville EPR, in France – two new EPRs
will now join this growing global fleet since CGNPC
(China Guangdong Nuclear Power Corp) signed up with
AREVA last November.
The record-breaking 8-billion-euro contract marks an
important step forward both for AREVA and the industry as it includes “all the materials and services required
to operate the two reactors”. Moreover, under another
agreement with China National Nuclear Corporation,
the group will undertake feasibility studies related to
the construction of a used fuel reprocessing-recycling
plant in China. These recent moves clearly demonstrate
the appeal of AREVA’s integrated vendor model.
“The best technology and
a unique level of licensing
and regulatory certainty”
EPR Fleet Progression
Finland
Olkiluoto 3 construction
Meanwhile the EPR continues to gain ground in the USA.
For instance, two utilities, Constellation and Ameren,
have ordered forgings, a clear sign of confidence.
In December AREVA NP Inc. submitted its application
for design certification to the Nuclear Regulatory
Commission and a combined construction and operating license application will be filed in June 2008.
Interestingly, the EPR has been designated the lead
plant for NRC’s multi-national design evaluation
program, a nod to the safety insights US regulators can
gain from the French and Finnish experience with
licensing the design. For Tom Christopher, President
of AREVA NP Inc., the message in the USA is clear;
“No one can predict what tomorrow will be like, but
utilities can choose the best technology with the largest
design and safety margins available, which provides a
unique level of licensing and regulatory certainty both
initially and in the future. That’s the EPR”.
2003: Turnkey contract signed with TVO
2005: Stone-laying ceremony
2006: Installation of the bottom
containment liner
2007: Concrete pouring of nuclear
island ring-wall base. First vertical
wall connected to liner in December
France
Flamanville 3 construction
2006: Preparatory work on site
2006: Stone-laying ceremony
2007: The French Safety Authority (ASN)
approved the draft permit for the creation
of Flamanville 3. First concrete in December
China
Two EPRs contract
2007: Contract signed with CGNPC
US
Licensing
2005: Creation of Unistar
2006-2007: Procurement of critical
long-lead forgings for two planned
US EPR units
2007: Design Certification Document
submitted
2008: First Unistar COL application
to be submitted by June
UK
EPR support
2007: Eleven leading European
utilities confirmed their support for
the pre-licensing of the EPR in the UK
Flammanville 3 construction in France
Reactors & Services
17
MOX fuel:
More than just a
Nuclear Waste Solution
For some utilities, mixed-oxide (MOX)* fuel is more than just a way to manage
used fuel. Since 1984, the German giant E.ON has used 812 MOX fuel assemblies
in five Pressurized Water Reactors (PWR). EnergyBusiness spoke with
E.ON’s Karl-Josef Baur to find out what makes MOX an attractive option.
Altogether, the five E.ON units —Unterweser, Brokdorf,
Grohnde, Grafenrheinfeld and Isar-2— have burned
about 13 metric tons of plutonium to produce electricity using the MOX assemblies manufactured by
AREVA. These are now achieving maximum burn up
rates of 55 MWd/THM.
Today, given uranium’s current price volatility, the utility’s 20-year old decision seems perceptive. Moreover,
“none of the MOX assemblies have ever failed”, points
out Karl-Josef Baur, Senior Engineer and Quality
Manager with E.ON. However, another reason for
which E.ON has stayed with MOX fuel is that its supplier was able to meet their high service standards.
Brokdorf nuclear power plant, Germany
“It is all about
customer
oriented attitude
and support”
Karl-Josef Baur, Senior Engineer
and Quality Manager, E.ON
All fresh fuel supplied to E.ON, whether it is uranium
oxide (UO2) or MOX, must meet stringent standards,
some of which are purely technical. However, for Baur
“one of the most important, basic prerequisites for the
delivery of fuel assemblies is that the manufacturer
performs its services in a process-oriented quality
management system”. This applies to services for both
fuel assembly design software and for the fabricated
hardware.
Business Excellence Above All
E.ON sets the bar very high. It looks for what it calls
a “multidimensional” approach to quality that integrates product, service, business practices and working conditions in the fuel manufacturing process.
During inspection visits to the supplier’s sites, it also
looks for behavioral indicators such as information
flow, employee motivation, involvement in problem
solving and a readiness to exchange experiences with
the client.
Baur says “the MELOX plant has that multi-dimensional idea of quality which we qualify as business
excellence”, but he also singles out the AREVA office
in Erlangen Germany for its role and technical support.
“The regulatory process can be quiet complex in
Germany. Assistance with the design of assemblies and
answering all the questions is critical to get licensing
approvals to use MOX fuel. This is all about customer
oriented attitude and support” he adds.
AREVA extracts plutonium from used fuel and recombines it with depleted uranium to fabricate
MOX fuel for recycling in conventional Light Water Reactor.
The two sites involved in the process —La Hague and MELOX— have continously improved their
technologies to provide utilities with the enhanced benefits of recycling.
Back-End
19
MELOX plant, Marcoule, France
MELOX without Frontiers
Located in Marcoule in southern France, MELOX has
a licensed annual capacity of 195 metric tons of heavy
metal. “It is a unique plant,” proudly explains Jürgen
Krellmann, Chairman and CEO of MELOX. “It has been
specially adapted to customers’ needs and fuel
management policy and we are also able to fabricate
for a wide range of fuel vendor’s designs.”
However, Krellmann is very much aware that as the
plant is the only operational MOX fabrication facility
in the world - which could be seen as a “drawback”
for clients - he really cannot afford to disappoint and
therefore maintains the very highest service standards
to secure confidence in MOX.
Meanwhile, in the US, the company is part of a
consortium to support the Department of Energy (DOE)
weapon plutonium disposition program. AREVA is
helping to build the MOX fuel fabrication plant.
Construction of this facility began at a DOE site in
South Carolina in August 2007.
“The only MOX fabrication
facility in the world cannot
afford to disappoint”
Moreover, in Japan, AREVA supports JNFL in the
construction of a MOX fuel plant at Rokkasho-Mura
site, which will produce MOX for Japan’s reactors.
MOX fuel cladding
“We need all
195 metric tons
of capacity to meet
the demand over
the next 5 to
10 years”
Jürgen Krellmann,
Executive VP, Recycling,
Chairman and CEO of MELOX
The business is rapidly developing. Recently, AREVA
landed three MOX fabrication contracts with the
Japanese utilities Chubu, Kyushu, and Shikoku. It has
ongoing obligations to German customers like E.ON,
and continues to supply MOX fuel to 20 of Electricité
de France’s 900 MW-class plants. AREVA anticipates
it will expand its MOX fuel business to include utilities
in the Netherlands and even South Africa.
“We need all 195 metric tons of capacity to meet the
demand over the next 5 to 10 years,” said Krellmann.
Demand looks set to grow, “because the price of uranium will stay relatively high,” he added.
MOX fuel: Parity Performance
As noted by Krellmann, the future for MOX looks bright.
A key stop on the road to making MOX fuel as attractive as UO2 fuel to utilities is a concept called “MOX
parity.” Under the concept, MOX fuel would perform
just like UO2 - the typical uranium oxide fuel.
In the past, MOX fuel assemblies were irradiated for
three reactor operating cycles. Today, MELOX is fabricating MOX fuel that can be used in four cycles, just
like UO2. France’s EdF will be the first utility to use the
“MOX parity” fuel, at its 900 MW-class reactors.
Facts and Figures
n 4 MOX assemblies is equivalent to
production of electricity for
150,000 people per year
n In 40 years 5,000 MOX fuel assemblies
were delivered to LWRs by AREVA
n According to recent studies MOX
can be loaded in GEN III as well
as GEN IV reactors
n 1963: First MOX lead test assemblies
Parity fuel is making MOX
as attractive as regular fuel
The new MOX fuel uses more plutonium. All MOX
manufactured at MELOX uses tails resulting from the
AREVA enrichment plant in Tricastin, which is just down
the road from MELOX. “Using depleted uranium helps
utilities to save uranium resources and avoids enrichment of 10% of natural uranium”, notes Krellmann.
n 1995: First production at AREVA’s
MELOX plant (licensed capacity :
100 tHM/year)
n 2003: MELOX’s increased
licensed capacity (145 tHM/year)
n 2007: MELOX’s increased licensed
capacity (195 tHM/year)
He added that with overall nuclear fuel costs rising due
to uranium price volatility and worldwide increasing
demand in enrichments services, MOX is just as attractive as regular fuel, especially with the production of
MOX parity fuel. n
For more Insights, contact:
Gilles DAVID, Sales and Program Director, MELOX,
Recycling business unit
gilles-a.david@melox.fr
Loading operations of MX6 package,
designed for MOX fuel assemblies
Back-End
21
T&D Solutions
for CO2 Reductions
AREVA T&D has developed a number of solutions
to help customers improve the operation of their grids
and reduce greenhouse gas emissions at the same time.
This innovative AREVA division is working
on the latest techniques to make electricity delivery
even more efficient. Basically that means better use
of the grid and the fuel that powers it.
Ways to reduce CO2 emissions through transmission
and distribution systems have been developed by T&D,
for quite some time, as “electricity generation contributes 25% of all greenhouse gases”, says Caroline
Drevon, AREVA T&D Vice President Sustainable
Development and Continuous Improvement. “When
we asked company engineers a year ago how we
could help our customers reduce their emissions, we
realised how much we offered already, without always
valuing it fully”, Drevon recalls, and that “powerful solutions already existed within AREVA T&D”.
Customers can act upon four different levers to reduce
their emissions: demand-side management, use of the
lowest emitting sources, improved network efficiency
and reduction of emissions from grid equipment.
AREVA offers solutions that can activate all four levers.
T&D’s impact is direct on improved network efficiency
and loss reduction, which translates into less air pollution in the case of fossil generation. “We also are real
enablers when talking about optimized use of low emitting sources such as renewables and decentralized
generation”.
Drevon cited another sobering statistic, “If management of the cross-border, interconnections in Europe
was improved, fossil fuel consumption could be
reduced by 10% and avoid 100 million tons of CO 2
emissions annually”.
“Fast track T&D solutions to
reduce CO2 emissions
can be built in just 18 months”
Therefore transmission and distribution solutions
can make a strong and immediate contribution to
CO2 reduction. “In fact, solutions can be built in just
18 months”, says Drevon.
Nordic Solutions
to European Challenge
Increasingly, customers are seeking AREVA T&D’s help
to solve these challenges. A solution called NOIS has
already been designed by AREVA T&D in North of
Europe that combines all four areas of improvement.
The Nordic Operations and Information System (NOIS)
is an energy management system that helps participating countries and their utilities to optimally use
generation resources.
NOIS is actually a suite of computer software applications that manages information on generation and
dispatching, generation forecast and scheduling, load
forecast and measurement as well as generation
control. The entire platform provides both day-ahead
and real-time information about the generation and
transmission capacity available at any one time, and
between any two points on the transmission grid.
Significantly, the corresponding marginal price of
production is also provided.
Transmission & Distribution
23
Static VAR Compensator on the National Grid site in St John, UK
“The challenge is to optimize wind-generated electricity
by distributing it where and when it is needed”
Through NOIS, which interconnects hydro, wind and
solar plants, Energienet can control the electricity grid
to dispatch “the right amount of power, from the right
source, to the right customer, at the right price,” explains
Anil Chaudhry, Sales Vice President, Automation business unit .
The challenge in this situation, continues Chaudhry, is
to optimize the wind-generated electricity when
Denmark doesn’t need it. “It is sent to a neighboring
country, so there is no waste. The technology does not
exist to store large quantities of electricity.” And less
fossil fuel is consumed.
He provided another example of an AREVA T&D solution with measurable impact. The company recently
supplied an energy monitoring system to India. Before
installation, Indian electricity networks lost 50% of
NORDEL
TSOI
UPS
UKTSOA
UCTE
NOIS - Nordic Operations and Information System
Existing interconnections
AC
DC
Dividing line between synchronous area
“We want to create
tailored solutions for
our customers”
HVDC valves
output. Now, due to the 53 monitoring systems, that
loss has been decreased to just 33%. Chaudhry noted
that the project was financed by the World Bank which
has a financing program for CO2 reduction.
In addition to the World Bank, the International Monetary
Fund and European Bank for Reconstruction and
Development are financing similar projects. Together,
the three organizations have devoted 30 billion euro to
clean emissions and clean air projects.
Just the FACTS, Please
There are several levers that utilities can use to reduce
energy losses from point-of-production to point-ofconsumption, said Michel Augonnet, Executive Vice
President, Systems business unit.
HVDC (High Voltage Direct Current) is one option.
FACTS (Flexible Alternate Current Transmission
Systems) is another. It controls, realigns and compensates for systems inbalances, making the transmission
of electricity more efficient.
“FACTS directs power according to specific paths.
It can also be used to monitor transmission,” explains
Augonnet. “We can force electricity to travel in certain
directions in a more economic and safer way.”
More Solutions on the Way
Despite some clear and effective solutions, AREVA
T&D knows it doesn’t have all the answers.
In the near-term, AREVA T&D plans to identify and
accelerate projects for which financing is available. The
company will also “take advantage of what we already
have and innovate,” said Drevon.
“We want to create tailored solutions for our customers,”
she continued. “Putting yourself in your customers
shoes and trying to factor CO2 reduction into decision
making is the best way to make a business case.” n
For more Insights, contact:
AREVA T&D’s worldwide Contact Centre
+ 44 (0) 1785 250 070
Transmission & Distribution
25
Business Highlights
China Takes All for 8 billion euro
China will benefit from the broad range
of AREVA’s expertise following a historic
8-billion-euro deal to supply two EPRs
including all the related materials and
services to operate them. China Guangdong
Nuclear Power Corp also contracted to
purchase 35% of uranium produced by
Uramin, one of AREVA’s mining company.
Moreover, France and China will undertake feasibility studies for constructing a
recycling plant in China. Commenting
the announcement, AREVA CEO Anne
Lauvergeon said, “it reaffirms our global
nuclear leadership and reinforces our
presence in one of the most promising
markets for the decades to come.”
International
Approach to
Non-Destructive
Examination
(NDE)
AREVA Nuclear Services business
unit has created an international
Non-destructive Examination Technical Center – NETEC – that will
leverage the group’s combined expertise across France, Germany and
the USA to develop global solutions
for customers’ NDE challenges.
Newly appointed Director Bill Glass
said “the aim is to enhance R&D
efficiency and creativity for base
NDE technology, including design
and
development
sensors and probe”.
of
new
NDE
INRA: A Way Forward for US Recycling Plans
The International Nuclear Recycling Alliance
(INRA), led by AREVA and Mitsubishi Heavy
Industries, has won a contract from the US
Department of Energy to evaluate closing
the nuclear fuel cycle in the USA. INRA will
perform technology development roadmaps,
conceptual design studies and provide
business plans for a nuclear fuel recycling
center and an advanced recycling reactor.
INRA members also includes Japan Nuclear
Fuel Limited, Washington Group International,
BWX Technologies, Inc., and Battelle.
The work supports the Global Nuclear
Energy Partnership.
Stronger Partnership with Japan on Recycling
AREVA and Japan Nuclear Fuel
Limited have signed an agreement to deepen their partnership
on nuclear fuel recycling. It will
allow the companies to further
improve the industrial effectiveness of their recycling plants
– at La Hague and RokkashoMura – which share design and
operations features. A “joint
team” dedicated to optimizing
solutions to common technical
issues will be created. They will
also collaborate to promote recycling initiatives internationally,
for instance through the Global
Nuclear Energy Partnership.
Business Highlights
27
You can read us or contact us at:
www.energybusiness.areva.com
EnergyBusinessAmerica@areva.com
EnergyBusinessAsia@areva.com
EnergyBusinessEurope@areva.com
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