Increasing Investment Attractiveness of Russian Atomic Industry
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STATE ATOMIC ENERGY CORPORATION “ROSATOM” Increasing investment attractiveness of Russian atomic industry Anton V. Kovalevskiy Head of Investment Policy Department of ROSATOM November 2010 Key information about ROSATOM State Atomic Energy Corporation “Rosatom” (ROSATOM) incorporates more than 250 enterprises and scientific institutions, including all civil nuclear companies of Russia, facilities of nuclear weapons complex and nuclear and radiation safety, research organizations and the world’s only nuclear-powered fleet. State Atomic Energy Corporation “Rosatom” was established on December 18, 2007. ROSATOM was founded in accordance with the Federal Law “On State Atomic Energy Corporation “Rosatom” № 317-FL dated December 01, 2007. On March 26, 2008 ROSATOM took over the functions and authorities of the abolished Federal Atomic Energy Agency. ROSATOM ensures state policy implementation in the sphere of nuclear energy use. ROSATOM combines performance of functions imposed by the state – primarily national security, nuclear and radiation security and also development of applied and fundamental sciences - and commercial activities, ensuring development of nuclear power and nuclear fuel cycle enterprises. ROSATOM is authorized in the name of the Russian Federation to fulfill international commitments of the Russian Federation for peaceful use of nuclear energy and non- proliferation of nuclear materials. The staff totals approximately 275 thousand people. 2 Structure of the Russian atomic industry State Atomic Energy Corporation “Rosatom” Nuclear power complex Uranium Fuel Distribution Engineering Nuclear and Nuclear defense mining company and trading and services radiation safety complex Nuclear Machine- Perspective NPP Scientific and Nuclear-powered power building materials and construction technical complex fleet generation technologies abroad Creation of ROSATOM is stipulated by the need for implementation of the mechanism of long-term atomic industry development strategic programs, assurance of management unity in the sphere of nuclear energy use as well as sustainable development and efficiency increase of atomic industry enterprises activities with adherence to security as the main priority. 3 Nuclear power complex in figures simultaneous construction of 7 nuclear power units abroad #1 in terms of NPP #4 in terms of construction electric power abroad generation at NPPs 17% of the Nuclear power complex of ROSATOM 10 NPPs, 32 nuclear world nuclear power units with a total installed capacity fuel market (electric) of more than 24 GW (e) (including setting in operation of #2 in terms of nuclear power unit № 2 of uranium reserves Rostov NPP) 40% and #5 in terms Energy generation at the of production Russian NPPs in 2009 – of the world volume 163,3 billion kW*h uranium enrichment including JV in Kazakhstan cutting-edge services enrichment facilities market 4 Technology chain Fuel fabrication Research and Uranium mining development Conversion and NPP construction enrichment Manufacturing of Machine gas centrifuge engineering Generation Spent nuclear fuel management 5 Main enterprises of the Russian nuclear power complex NUCLEAR POWER COMPLEX URANIUM MINING GENERATION JSC “Atomredmetzoloto” JSC “Concern Rosenergoatom” JSC “PIMCU”, JSC “Khiagda”, СJSC “Dalur”, JV “Zarechnoye”, JV “Akbastau”, JV with Cameco MACHINE BUILDING DISTRIBUTION AND TRADING JSC “Atomenergomash”, JV “Alstom - Atomenergomash”, JSC “ZiO - Podolsk”, JSC “TENEX” JSC “CDBMB” FUEL COMPANY ENGINEERING AND SERVICES JSC “TVEL”(JSC “MSZ”, JSC “NCCP”, JSC “ChMP”, JSC “CMP”) JSC “United Company Enrichment Sublimation Complex” JSC “Design-bureau Hydropress”, (JSC “AECC”, JSC “SCC”, JSC“UECC”, JSC “OKBM”, JSC “PO ECP”) JSC “Atomtechenergo” etc. JSC “Engineering center “Russian gas centrifuge” PERSPECTIVE MATERIALS AND TECHNOLOGIES NPP CONSTRUCTION JSC “NPK “Khimprominzhiniring”, LLC “Argon”, LLC “Carbon and ABROAD composite materials plant”, LLC “SNV” CJSC “Atomstroyexport” 6 Key information about JSC “Atomenergoprom” JSC “Atomenergoprom” was established in 2007 according to Russian Federation Presidential Decree № 556 dated April 27, 2007. The State Atomic Energy Corporation “Rosatom” owns 100% shares of JSC “Atomenergoprom” (Federal law № 317-FL dated December 01, 2007). JSC “Atomenergoprom” is an integrated company which consolidates civil assets of the Russian nuclear industry. Government Support: the State Atomic Energy Corporation Rosatom’s activity program for long-term period (2009-2015) envisions financing totaling 2,08 trillion RUR. In 2009 Atomenergoprom’s consolidated revenue - 347 billion RUR (RAS). On October 15, 2009 Standard & Poor’s credit rating services assigned long-term and short-term international BBB-/A-3 ratings to JSC “Atomenergoprom”. The rating outlook is stable. In August 2010 JSC “Atomenergoprom” floated a 4-year bond issue worth 10 billion RUR. The bond issue is guaranteed by ROSATOM. The coupon rate was set at 7.5%. The maturity date is August 15, 2014. Atomenergoprom’s subsidiary which operates Russian NPPs is JSC “Concern Rosenergoatom”. 7 Information about Concern Rosenergoatom JSC “Concern Rosenergoatom” is one of the biggest generating companies in Russia. Producing over 16% of all the electricity, consumed in the country, and around 40% - in regions, Concern guarantees security of energy supply of the national economy. JSC “Concern Rosenergoatom” results in 2009: # 1 in Russia in terms of electric power generation Revenue – 184, 2 bln. RUR Generation of electricity – # 4 in the world in terms of NPP 163, 3 bln. kWh electric power generation CONCERN ROSENERGOATOM Maximum total capacity – 22 700 MW # 2 in the world in terms of NPP installed capacity ICUF* – 80,2% * Installed capacity utilization factor 8 Geography of Russian NPPs Active NPPs NPPs under construction BILIBINO PATES KOLA LENINGRAD -2 LENINGRAD BALTIC PATES KALININ Viluchinsk SMOLENSK KURSK NOVOVORONEZH -2 BELOYARSK NOVOVORONEZH BALAKOVO ROSTOV Units statistics 10 NPP 32* units Installed capacity – 24,2* GW *including nuclear power unit 2 of Rostov NPP 9 Concern investment activities Concern long-term goals are determined by the State Atomic Energy Corporation “Rosatom” activity program for long-term period (2009-2015) (Government Decree № 705 dated September 20, 2008). Main directions of JSC “Concern Rosenergoatom” investment activities: investment projects for prolongation of operation life of I-st and II-nd generation units; investment projects at facilities for spent nuclear fuel (SNF) and radioactive waste (RAW) management; investment projects for completion of units construction of high degree readiness; Investment projects for serial construction of units at new and existent sites; investment projects for construction of low-powered stations; program “Providing safe and stable operation of existing units”; program aimed at increasing ICUF at operating NPPs; program aimed at increasing electricity generation at existing NPPs of JSC “Concern Rosenergoatom”; research and development. Investment program for 2009 is estimated at 171.5 bln. RUR. 10 ROSATOM’s presence in the world market Toshiba/ ROSATOM Areva Cameco GE/ Hitachi Westighouse Uranium mining + + + - - Conversion + + + - - Enrichment + + - - - Fuel fabrication + + - + + Machine building + - - + + NPP construction + + - + + Generation + - - - + ROSATOM is the only company worldwide that ensures the whole nuclear production cycle, from uranium production to NPP construction and electric power generation. 11 Global presence Finland, Sweden, the Netherlands, Belgium, Russia Germany, France, Spain, Great Britain, USA Kazakhstan Switzerland, Czech Republic, Hungary, Slovakia, Canada Ukraine Lithuania, Bulgaria, Slovenia, Turkey Mexico Armenia Japan China South Korea Vietnam India Mongolia Iran Jordan Bangladesh South Africa Venezuela Namibia Libya Morocco Egypt 12 International projects under implementation Tianwan NPP (China) NPP construction abroad, access to the new markets Kudankulam NPP (India) NPP construction CJSC “Atomstroyexport” Busher NPP (Iran) Belene NPP (Bulgaria) Acquisition of the foreign assets, acquisition of 100% shares of “Effective Energy N.V.” diversification program of natural (assets in Kazakhstan) uranium resource base Uranium mining assets swap with Canadian company Uranium One, as JSC “Atomredmetzoloto” a result of which JSC “Atomredmetzoloto” will consolidate 51% shares of Uranium One*. Creation of JV, obtainment of new JV “Alstom-Atomenergomash” (production of low-speed technologies turbines for NPP) Machine building JSC “Atomenergomash” Acquisition of core foreign assets - Ganz Energetika (Hungary), Arako (Czech Republic) Transaction, according to which CJSC “Atomstroyexport” Creation of modern radioactive obtained 100% shares of NUKEM Technologies GmbH waste management infrastructure Technologies (Germany), that possesses much experience in rendering CJSC “Atomstroyexport” of services in the sphere of radioactive waste and spent development nuclear fuel management, nuclear and radiation- dangerous objects decommissioning. *deal is during the process of its approval by regulatory authorities of a number of states. At present JSC “Atomredmetzoloto” has obtained approval of the government of Kazakhstan. 13 Perspective international projects Cooperation with Siemens Creation of JV in the sphere of NPP construction abroad based on JSC “SPbAEP” in accordance (ROSATOM, Engineering and with the Russian design (development of the JSC “Atomenergoprom”, services present and new projects in