AREVA NC 2 Contents
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Expanding the U.S. Nuclear Infrastructure by Building a New Uranium Enrichment Facility Pre-application Meeting with the NRC May 21, 2007 1 Participants X Michael McMurphy, Executive Sponsor X Sam Shakir, General Manager, Strategic Enrichment Program X Nicolas DeTurckheim, Project Director, George Besse II X George Harper, Technical Director X Bob Poyser, Project Manager, Site Selection X Antoine Genevois, Project Legal Council X Jim Curtiss, Winston & Strawn X Tyson Smith, Winston & Strawn AREVA NC 2 Contents 1. Overview of AREVA Michael McMurphy 2. AREVA’s Enrichment Operation Nicolas DeTurckheim 3. Why the U.S. Needs Additional Enrichment Capacity Sam Shakir 4. Overview of the New U.S. Project George Harper 5. The Project Structure Sam Shakir 6. Site Selection Bob Poyser 7. International Government Agreements Jim Curtiss 8. Licensing Approach Sam Shakir 9. Tails Management Sam Shakir 10.Proposed Pre-Application Schedule Sam Shakir 11.Wrap Up Sam Shakir AREVA NC 3 Our Long Term Business Objectives X Meet our strategic business plan of expanding the U.S. commercial nuclear infrastructure to ensure safe and secure supply of CO2 free nuclear energy X Provide domestic US supply to meet the growing demand for enrichment services X Our aim: Build a new enrichment facility in the U.S. using the ETC centrifuge technology Start production in 2013 Initial plant capacity of 3 million SWU per year AREVA NC 4 Key Considerations X Key considerations for this significant investment in US infrastructure 1.Short and predictable licensing process 2.Customer commitments to plant output 3.Supportive host state and community 4.Access to US tails disposal route AREVA NC 5 Contents 1. Overview of AREVA 2. AREVA’s Enrichment Operation 3. Why the U.S. Needs Additional Enrichment Capacity 4. Overview of the New U.S. Project 5. The Project Structure 6. Site Selection 7. International Government Agreements 8. Licensing Approach 9. Tails Management 10. Proposed Pre-Application Schedule 11. Wrap Up AREVA NC 6 Overview of AREVA X World leader in the energy business Number 1 in the entire nuclear cycle Number 3 in electricity transmission and distribution X Our mission Enabling everyone to have access to ever cleaner, safer and more economical energy AREVA NC 7 An integrated offer serving energy professionals Enrichment Fuel fabrication Reactors Renewable energies Chemistry Recycling MOX fuel Mining fabrication Used fuel treatment Services Transmission OTHER SOURCES OF ELECTRIC POWER Distribution Front End Reactors and Services Back End Transmission & Distribution Division Division Division Division AREVA NC 8 Key data for 2006 Sales revenue by division Sales revenue by business (in %) (in %) Total sales: $14B Employees: 61,100 32% 26% 34% 66% 19% 23% Front End Division Back End Division Nuclear Reactors and Services Division Transmission Transmission and Distribution & Distribution Division AREVA NC 9 AREVA across the globe 41 countries 100 countries Production & Manufacturing Marketing & Sales EUROPE & CIS 62% of sales - Nuclear: 76% -T&D: 24% 73% of employees NORTH & SOUTH AMERICA 17% of sales - Nuclear: 67% ASIA-PACIFIC -T&D: 33 % 12% 14% of sales of employees AFRICA & - Nuclear: 47% -T&D: 53% MIDDLE EAST 11% of sales 7% of employees - Nuclear: 9% -T&D: 91% 4% Production & manufacturing of employees AREVA NC 10 Organization of the group TRANSMISSION FRONT END REACTORS & SERVICES BACK END & DISTRIBUTION division division division division • Mining • Plants • Treatment • Products • Chemistry • Equipment • Recycling • Services • Nuclear Services • Enrichment • Logistics • Systems • Nuclear Measurement • Fuel • Clean-up • Consulting • Automation & Information Systems • Engineering • AREVA TA • Renewable Energies AREVA NC 11 Front End division X All of the activities leading up to the generation of nuclear power: Uranium exploration and mining Uranium conversion and enrichment Nuclear fuel design and fabrication $3.8B Sales 11,995 Employees AREVA NC 12 Reactors and Services division X Design and construction of nuclear power plants and of biomass plants X Inspection, servicing and retrofitting of all reactor types X Heavy component design, manufacturing and replacement $3B Sales 14,936 Employees AREVA NC 13 Back End division X Solutions for used fuel treatment and recycling of reusable materials X Solutions for used fuel storage X Facility decommissioning at the end of service life $2.5B Sales 10,697 Employees AREVA NC 14 Transmission & Distribution division X Design, manufacturing and installation of high and medium voltage equipment and systems X Development and installation of grid control systems $4.8B Sales 22,988 Employees AREVA NC 15 U.S. Locations Seattle, WA (293) Richland, WA (636) AREVA T&D AREVA NP (571);AREVA NC Meriden, CT (361) Canberra (53);Canberra (10); Transnuclear (2) Chicago, IL (21) Toronto, Canada Tacoma, WA (21) (60) AREVA NP (17); Transnuclear AREVA NP Marlborough, MA (85) Canberra (4) Dover, NJ (53) AREVA NP • Canada Ltd Canberra Idaho Falls, ID – (16) • Denver, CO (15) AREVA NP (1); • Pittsburgh, PA (20) Canberra (14); AREVA NP (7), AREVA NP Westborough, MA Transnuclear (1) Canberra (8) (13) Columbia, MD (51) AREVA NP • Charleroi, PA (162) Medford, OR (124) Transnuclear • • • AREVA T&D •• AREVA T&D-Sold 12/6 • Mills, WY (23) • • Philadelphia, PA (46) Benicia, CA (45) • • • • • AREVA NP(8); AREVA AREVA NP Cogema Mining, • Bethlehem, PA (61) • T&D(38) • Cogema Resources, • San Jose, CA (10) • AREVA T&D Pathfinder Mining Erwin, TN (9) • Lynchburg, VA (1,512) AREVA T&D AREVA NP (4 AREVA NP locations) • • • Modesto, CA (4) ••• • Oak Ridge, TN (25) Charlotte, NC (501) Canberra Canberra Washington, DC •• AREVA NP /Bethesda, MD (49) • Los Alamos, NM (14) AREVA (15); AREVA Ft. Worth, TX (52) • Canberra NC (34) Aiken, SC – (55) AREVA NP Atlanta, GA (44) AREVA NP (1); Albuquerque, NM (87) • AREVA NC (48); AREVA NP (42); • AREVA NP (4); Canberra (3); Houston, TX (3) Canberra (2) Canberra (83) Transnuclear (3) AREVA T&D • Waynesboro, GA (134) Rockledge, FL (5) 45 Locations Bruni, TX (3) AREVA T&D AREVA T&D 4,613 Employees Cogema Mining AREVA NC 16 Contents 1. Overview of AREVA 2. AREVA’s Enrichment Operation 3. Why the U.S. Needs Additional Enrichment Capacity 4. Overview of the New U.S. Project 5. The Project Structure 6. Site Selection 7. International Government Agreements 8. Licensing Approach 9. Tails Management 10. Proposed Pre-Application Schedule 11. Wrap Up AREVA NC 17 Enrichment Experience X 1973: establishment of EURODIF, AREVA’s affiliate in enrichment business X 1974: Start construction of the GB-I plant, based on gaseous diffusion technology X 1979: Start commercial operation and supply the first SWU X 1982: Completion of GB-I X 1984: First supply of SWU to US utilities X Today: 190 million SWU have been supplied, including 26 million SWU to US market AREVA NC 18 The Eurodif Enrichment Plant Control Blending Eurodif UF6 Annexe Single •Capacity 10.8 MSWU/yr cascade •In operation for 29 years without 4 plants interruption •190 MSWU produced GBll •UNAT maximum 5% South unit •No major technical or safety problems •Will be decommissioned due to economical effects (electricity) AREVA NC 19 The Creation of ETC Joint Venture Between AREVA and URENCO Etat RWE BNFL AREVA NL +E.on 33% 33% 33% ETC(1) ( URENCO-AREVA JV) 100% New 50% 50% URENCO Design AREVA NC (Holding) Manufacturing Technology R&D 100% Centrifuges Centrifuges UEC – URENCO SET Enrichment services & services & services « GBII Project » Sales & Marketing Enrichment services (1) Enrichment Technology Company AREVA NC 20 The GBII plant An investment … X … essential to the global SWU supply demand balance At least 7.5 MSWU in a context of increasing demand X … based on the best existing technology A worldwide reference technology that will be implemented in all enrichment facilities within 10 years X … with a modular capacity to adapt to market future needs 7.5 MSWU to 11 MSWU AREVA NC 21 GBll Time Schedule • AREVA - URENCO signature November 2003 • Preliminary safety report June 2004 • Public hearing September 2004 • Technical safety approval by ASN June 2005 • Public inquiries June 2006 • Cardiff treaty (F UK D NL) ratification July 2006 • Start of construction September 2006 • GBll Nuclear license 8.2MSWU/yr -Max 6% April 2007 • 1st cascade on line 1st half 2009 AREVA NC 22 4 MSWU/yr GB II South Unit TC12 Centrifuges U235 limit 6% 1 module (0,5 MSWU/yr) Centrifuge assembly building Centrifuge utility building AREVA NC 23 GBll Construction Process corridor Eurodif Plant UF6 building Feed, Product, Tails Centrifuge assembly building Centrifuge slab 24 AREVA NC 5 Minute Video The GB II Project 25 Contents 1. Overview of AREVA 2. AREVA’s Enrichment Operation 3. Why the U.S. Needs Additional Enrichment Capacity 4. Overview of the New U.S. Project 5. The Project Structure 6. Site Selection 7. International Government Agreements 8. Licensing Approach 9. Tails Management 10. Proposed Pre-Application Schedule 11. Wrap Up AREVA NC 26 Unbalanced Demand and Supply A Clear Market Argument X US needs : 12.7 M SWUs to 15.5 M SWUs/year (WNA reference scenario) X Today the US relies on imports for more than 90% of their enrichment needs X Russian HEU provides 50% of the US demand, but the HEU agreement expires in 2013 X US domestic production: NEF-LES (start up in 2009 but fully committed), USEC ACP to replace GDP (No added capacity) z Only a small part of the current USEC GDP production is sold to US customers. The rest is exported to Asia X The US demand is larger than the capacity of NEF + ACP + AREVA US plant. X The shortfall has to be imported or be fulfilled by additional domestic capacity AREVA NC 27 Additional Domestic Capacity is Necessary X To cover some of the significant shortfall in domestic supply and reduce reliance on imports, an important US energy security objective X Maintain a viable, competitive, domestic uranium enrichment industry X To help the US achieve our non-proliferation objectives by being in a position to meet the needs of non fuel cycle countries that want to adopt or expand nuclear energy X Building the US nuclear infrastructure to support and sustain a nuclear renaissance AREVA NC 28 Contents 1.