Sellafield Strategy Nov2013

Key to Britain’s energy future The Strategy for Sellafield Introduction

The following document sets out the vision, mission and strategic objectives that make up the strategy for Sellafield Ltd. Although primarily focused on the Sellafield site, the strategy covers all of our activities and will be delivered by our employees who are based on the site, across West Cumbria and at Risley.

The safe, accelerated clean-up of the Tony Price provides the overview of Sellafield site is not only my priority as Chief Executive of the Nuclear the strategy, in the first section of this Decommissioning Authority (NDA), but also the focus area for the NDA as a whole. document, along with a summary of each of

The challenges at Sellafield are our strategic themes. unprecedented and the need to deliver progress consistently across risk and hazard reduction, waste management and Within each theme there are a number of reprocessing has never been greater. strategic objectives. The majority of this I am pleased that Tony and his executive document is dedicated to explaining each team have dedicated the time to develop a strategy for Sellafield that is consistent with strategic objective, how they align to our our mission for the site and that will put the site and its workforce in the best possible customer’s objectives and how we are position for the future. already making progress. John Clarke Chief Executive, NDA

There is no guarantee of new work and new facilities in West Cumbria. Failure to deliver the existing mission of safe accelerated progress at Sellafield will guarantee that there are no future missions.

2 0VERVIEW SAFE, SECURE SITE STEWARDSHIP DEMONSTRABLE PROGRESS RETURN ON INVESTMENT POTENTIAL REWARDS 4 6 8 30 16 18 20 22 24 26 28 10 12 14 Potential Rewards Strategic Objective 4 Strategic Objective 5 Strategic Objective 6 Strategic Objective 7 Strategic Objective 8 Strategic Objective 9 Strategic Objective 10 Strategic Objective 1 Strategic Objective 2 Strategic Objective 3 – change only constant to 2020 The 2013 Overview Managing Director Ltd Strategy Sellafield We are focused on delivering the NDA’s mission of safely accelerating mission on delivering the NDA’s are focused We Through the execution of this mission of the Sellafield site. the clean-up waste management and and leading the way in cost-effective nuclear we will demonstrate that we are the people who can decommissioning, deliver new missions. Potential Rewards Return on Investment The NDA presently invests more than £1.7bn of their budget to fund We will ensure that we demonstrate value work at Sellafield every year. for money through the delivery of our mission and best position the site and its people for the future. Sellafield is home to some of the oldest nuclear facilities in the UK and Sellafield is home to some of the oldest nuclear of our we are focusing our efforts on safely accelerating the clean-up will also demonstrate our progress through the timelyWe facilities. legacy Thorp reprocessing programmes. completion of both the Magnox and the Demonstrable Progress Demonstrable The safe and secure stewardship of the Sellafield site is our overriding of the Sellafield site is our overriding The safe and secure stewardship It covers everything from the safety of our employees and care priority. managementfor the environment through to the secure of nuclear materials and it underpins every decision we make. Safe, Secure Site Stewardship Secure Safe, Overview Managing provides an overview Director of Ltd’s Sellafield Price, Tony This section vision and mission. our including the strategy for Sellafield, that some of the changes also sets out will happen atbetween Sellafield end of reprocessing. such as the now and 2020, 2013 to 2020 The only constant – change

Risk and Hazard Reduction Spent Fuel Management

We face significant Both Magnox and Thorp challenges as we start reprocessing plants will waste retrievals from cease operations before high hazard facilities and 2020 with a direct impact bring major new waste on downstream effluent treatment facilities into and waste treatment operation. plants.

These are some of the first major nuclear new build projects in Post reprocessing we will continue to provide spent fuel the UK for decades, so the design and construction of these new management services to the NDA and its customers. plants is a significant challenge to Sellafield Ltd and our design, construction and fabrication supply chain. This could include storing spent fuel and consolidating material from other NDA sites and providing inspection and storage of In addition, the next phase of operation, bringing these new nuclear material. waste treatment plants into service and recovering material from plants that have not operated for 30 years, will bring its own challenges.

Waste Management Project Delivery

Once reprocessing We currently have 11 major plants have closed and projects either in design been washed out they or construction, with more will cease to generate than £350 million per year waste. invested in new nuclear projects.

Between 2013 and 2020 the return of overseas waste The high hazard and risk reduction programmes are dependent will continue. New waste treatment plants and stores on successful delivery of these projects. will be brought into operation to support retrieval and decommissioning projects. We need world class project and design capability to successfully deliver these from both Sellafield Ltd and our partners in the Nuclear waste will continue to be processed, and then stored supply chain. Sellafield is at the leading edge of rebuilding on site until a geological disposal facility becomes available. nuclear design and construction capability in the UK.

4 0VERVIEW SAFE, SECURE SITE STEWARDSHIP DEMONSTRABLE PROGRESS RETURN ON INVESTMENT POTENTIAL REWARDS SUMMARY

5 Managing Director Overview

Sellafield has never backed Our success relies on us demonstrating consistent delivery across three key areas: down from a challenge. • Continuing our safe, secure stewardship When the UK needed support in its war effort of the Sellafield site we created a site that could produce the • Making demonstrable progress in the nuclear material that the country needed. completion of our commercial operations It is at Sellafield where we pioneered the and the safe acceleration of risk and harnessing of nuclear power to generate hazard reduction electricity for the country, creating a blueprint that would be used across the UK to build the • Delivering a return on the investment that Magnox fleet. our internal and external stakeholders make in the Sellafield site and The potential to recycle spent nuclear fuel demonstrating value for money to recover useable nuclear material in the UK on an industrial scale was also realised These areas of focus make up the core of our at Sellafield. strategy for Sellafield and are underpinned by specific strategic objectives. When faced with the challenge of how to manage nuclear waste, the site delivered Many of these objectives will be familiar again. We are still the only nuclear site in the to you; the need to accelerate our risk and UK that can safely manage all three nuclear hazard reduction programme, the completion waste streams: low, intermediate and high. of reprocessing operations, the priority that Not only can we turn this waste into solid, we will continue to give to safety and the stable forms, we continue to look for ways to need to improve our project delivery. reduce the amount of waste generated. We can only deliver our vision, mission and Today we face another challenge where objectives for Sellafield if we all take an active there is no blueprint; emptying and role in achieving high performance every demolishing some of the most difficult and day. We must identify ways to work smarter, complex nuclear buildings in the world. The to improve our processes and to accelerate decommissioning of our Legacy Ponds delivery for our customer, the NDA. and Silos. We need to demonstrate that we are This is no easy challenge, but we have the an efficient, honest and hardworking skills and experience needed to address organisation that can play a significant role in it. This is our opportunity to demonstrate Britain’s energy future. that Sellafield is still at the forefront of the UK’s nuclear industry; designing and In the coming years we will see the Sellafield delivering processes and plants that will not site transformed as old buildings are emptied only support our mission but also have the and demolished, as operating plants are potential to be used to meet the national and closed and as new buildings are constructed, global decommissioning challenge. commissioned and operated. This is an exciting chapter of the Sellafield story and I am Cleaning up Sellafield is a national delighted to be a part of it. mission. The challenge is an exciting one. It is our opportunity to keep Sellafield at the forefront of the UK nuclear industry.

Tony Price Managing Director 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Plan structure

Sellafield Ltd Strategy

Sets out our vision and mission for Sellafield along with details of our specific strategic objectives. DEMONSTRABLE PROGRESS

Enablers • Nuclear safety and operations

• Organisation and leadership

• Resourcing and training

• Engineering

1NB: AWAITING DOCUMENT CLEARANCE AND ANY SECURITY MARKING

• Commercial management RETURN ON INVESTMENT Excellence Plan • Site logistics Sellafield Plan • Site integration Sets out the things that we Sets out the work that we need to deliver need to improve to deliver • Programme and project at Sellafield and when we will do it. our strategy. management

Journey to Excellence

POTENTIAL POTENTIAL REWARDS REWARDS Sellafield Ltd Strategy

Vision Through the safe and expert delivery of our mission we will be recognised as an efficient, honest and hardworking organisation that will play a significant role in Britain’s energy future.

Mission To deliver safe, secure site stewardship whilst demonstrating value for money and urgency in the reduction of risks and hazards posed by Sellafield’s historic facilities and wastes.

8 0VERVIEW SAFE, SECURE SITE STEWARDSHIP DEMONSTRABLE PROGRESS RETURN ON INVESTMENT POTENTIAL REWARDS 9 Key to Britain’s Energy Future To achieve the highest appropriate To achieve the highest appropriate standards in environmental employees, performance, health of our of nuclear safety, security, safeguarding material and quality of operations to To invest intelligently in infrastructure ensure security and operational resilience especially To ensure our stakeholders, our workforce and communities, understand and support what we do and how we do it To accelerate risk and hazard reduction To complete timely reprocessing and provide ongoing services to the nuclear industry To deliver our major projects through programme and project excellence To be open and transparent about our performance and drive recognition of our success to ensure we are the workforce of choice for current and future missions To invest in our people and make best use of supply chain partners; having the right people, with the right skills in place at the right time To provide our communities and taxpayers with a socio-economic and growth return on their investment at Sellafield To drive taxpayer value for money

Return on Investment Safe, Secure Site Stewardship Secure Safe, Progress Demonstrable

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NDA NDA strategy Value for Value money Stakeholder expectations

Energy Future Key to Britain’s Key to Britain’s We will achieve our vision and mission by keeping keeping by our vision and mission will achieve We by making demonstrable Sellafield safe and secure, a providing progress in all of our activities and by in the stakeholders return on the investment made by in covered of our objectives are Each Sellafield site. pages. detail in the following more Safe, Secure Site Stewardship

Strategic Objective 1 To achieve the highest appropriate standards in environmental performance, health of our employees, safety, security, safeguarding of nuclear material and quality of operations

Strategy The safety and security of the Sellafield site Our care for the environment is a core and our employees continues to be our value and will be embedded in all of our The safety of the site, our number one priority. The strategy will see us activities from design through to operations continue our programme of improving nuclear and decommissioning. Our integrated employees and the protection safety using the best available techniques waste strategy is underpinned by detailed of the environment is a core from around the world, including the supporting strategies for each nuclear waste value for Sellafield Ltd. experience we gain through our membership stream; low, intermediate and high. These of the World Association of Nuclear Operators strategies give priority to reducing any (WANO). risk to the environment, align with the UK government’s discharge policy and are based Existing programmes which are designed to on the waste management hierarchy of avoid, protect and improve the health and safety minimise, reuse, recycle, with disposal being of our employees will continue and will be the last option. supplemented with campaigns to target specific aspects of health and wellbeing.

NDA strategy alignment

• Business Optimisation Health, Safety, Security, with appropriate regulations lies with our Safeguards, Environment and contractors, the individual Site Licence • Integrated Waste Management Quality Companies. • Nuclear Materials NDA Objective: To reduce the inherent Integrated Waste Management • Site Restoration health, safety, security, safeguards and NDA Objective: To ensure that wastes environmental risks associated with • Spent Fuels are managed in a manner that protects the nuclear legacy, and encourage high people and the environment, whilst • Critical Enablers standards in operational health, safety, complying with UK government and security, safeguards, environmental Scottish government policies and and quality performance. providing value for money. The NDA’s mission is founded on ensuring safe operations, whilst remediating hazards, Nuclear Materials reducing risks and restoring the environment at each of our sites. Operational responsibility NDA Objective: To ensure safe, for health, safety, security, safeguards secure and cost-effective lifecycle and protection of the environment during management of our nuclear materials. delivery of the mission and for compliance

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Delivery in action

ACEMAN Injury Prevention Liquor Activity Reduction DEMONSTRABLE PROGRESS Accident free, Control dose, Event free, We use the MoveSMART® occupational Within one of our Legacy Ponds and Meet commitments, Attend and use injury prevention programme which Silos buildings, the Magnox Swarf training, Nil rework. raises safety awareness and aims to Storage Silos, we have successfully ease strain and stresses on the body reduced the radioactivity levels of the ACEMAN is a human performance to help prevent injuries, particularly soft liquor held in the facility using existing tool that we use to help teams tissue injuries. ion exchange equipment at Sellafield. identify and recognise the barriers that they face daily when completing Our employee led peer to peer This project is a key part of the overall their work. Teams discuss these observation programme continues, reduction of risk from the building and barriers and identify solutions where reinforcing safe behaviours and has been achieved without increasing possible or escalate up through the preventing unsafe acts and injuries. environmental discharges from the site; management structure for resolution. demonstrating both risk reduction and Our wellness programme focuses environmental care. An organisation as large and complex on proactive health and lifestyle as ours needs to maintain a line of sight improvements, prevention of soft across all levels of our organisation and tissue injuries and enhancing employee across all of our activities. ACEMAN wellbeing. is one of the visual management tools RETURN ON INVESTMENT that we use to help us do this. Regular Focus on injury prevention has seen ACEMAN discussions also contribute to significant reductions in lost time a positive safety culture. accidents, with 2012/13 performance being our best since records began.

Key to Britain’s Energy Future

We are committed to nuclear safety Through disciplined operations in Over the past forty years, we excellence and delivering a strong all aspects of safety we will keep have worked hard to reduce ourselves, our environment and our the environmental impact of our nuclear safety culture. communities safe. operations at Sellafield. Overall, our discharges from the site have reduced Our highest value at Sellafield Ltd is POTENTIAL REWARDS Every day we have the opportunity by a factor of approximately 1,000 placed on safety. It covers everything from to demonstrate that it is possible since their peak in the 1970s. keeping ourselves and others safe, to safe to operate and clean up a complex operations, safeguarding nuclear materials, nuclear site with due care for our This reduction has been achieved reducing risk and hazards and stewardship people, the community and the through abatement technology which of the environment. environment. was pioneered at the site.

11 Safe, Secure Site Stewardship

Strategic Objective 2 To invest intelligently in infrastructure to ensure security and operational resilience

Strategy In recognition of this custodianship, and in Investments in the site will be assessed line with their ongoing commitment to the against the value added to our operations The requirement to safely and safety of Sellafield, the government and NDA and resilience and the full life of the assets, are investing in the security of the site. using the British Industry Standard Publicly securely manage nuclear material Available Specification (PAS) 55 model. This in above ground storage at Our strategy of maintaining and improving will ensure that the level of investment is Sellafield will continue for many the site’s infrastructure and assets includes a appropriate and that we are making best use decades to come. range of investments in security, emergency of the money given to us by the NDA. management, resilience and infrastructure and also includes our response to An extensive programme of training and recommendations post-Fukushima. exercises will continue to provide an opportunity for our employees to rehearse Our strategy is also based on National their response in the event of an emergency Objectives Requirement and Model at Sellafield and will identify areas for Standards (NORMS), which are issued improvement. by our regulator and is continually reviewed against the latest information on the changing nature of domestic and international threats.

NDA strategy alignment

• Business Optimisation Site Restoration • Integrated Waste Management NDA Objective: To restore our • Nuclear Materials designated sites and release them for other uses. • Site Restoration

• Spent Fuels Our priority within this theme is to remediate intolerable risks in the Legacy Ponds • Critical Enablers and Silos (LP&S) at Sellafield. We will also decommission redundant facilities at Sellafield whilst maintaining, and, as appropriate, upgrading the infrastructure and capability across the site to sustain the operations of key supporting plants and services.

12 2 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Guard Force Modern stores Emergency preparedness DEMONSTRABLE PROGRESS We have deployed a Guard Force for We will continue to invest in modern We have robust arrangements in place deployment on the Sellafield site. fit-for-purpose stores and facilities to to respond to the unlikely event of a ensure that we safely and securely major incident at Sellafield. The Guard Force complements the Civil manage nuclear materials at Sellafield. Nuclear Constabulary (CNC), which A recent example of this investment The effectiveness of our emergency continues to form part of our security is the Sellafield Product and Residues response programme is continuously arrangements on the Sellafield site, Store. assessed through a series of emergency and complete a range of duties for us exercises, both locally and nationally. including searching and controlling With over 36,000 cubic metres of access into and out of the Sellafield concrete, the same amount of steel We routinely test our emergency site. as the Eiffel Tower and enough cable arrangements through training and to stretch from London to Paris, the response exercises. These exercises are facility incorporates some of the most based around many scenarios including advanced nuclear security features. accidents, radiological releases and security threats.

The scenarios are agreed with the Office

of Nuclear Regulation (ONR) and test RETURN ON INVESTMENT both the management of an incident as well as the employee response.

Key to Britain’s Energy Future

Our response to the recovery We continue to support Fukushima operations at Fukishima following together with the NDA and specialist UK based supply companies under the devastating tsunami in agreement between the Japanese Japan in 2011 has included the and UK government. This builds on transportation of vital supplies and our decommissioning and waste our technical expertise. management experience together with equipment and knowledge POTENTIAL REWARDS Using our emergency response teams and provided by specialist manufacturers processes, in the immediate aftermath which have been used on of the tsunami we shipped ten drums of decommissoning projects. specialist ion exchange medium from one of our legacy ponds so that the site could start its water clean-up activities early.

13 Safe, Secure Site Stewardship

Strategic Objective 3 To ensure our stakeholders, especially our workforce and communities, understand and support what we do and how we do it

Strategy Our strategy will see us continue with our Internally, all have a role to play. Line commitment to provide information on all managers have the responsibility to ensure By its nature, the work that we of our activities in an open and transparent that teams understand fully how their way. work contributes to the overall success of do at Sellafield is complicated. It the organisation, the key milestones that isn’t easy to understand technical Our success in delivering our vision and we are all working towards and how any processes within nuclear facilities mission for Sellafield relies on our internal improvement programmes are progressing. and programmes of work that and external stakeholders understanding stretch beyond our lifetimes. fully what we need to achieve, by when, and For our employees it’s important that they how we will do it. know how to contribute to our delivery and how both their programme and the Formal engagement with external business overall is performing. They are stakeholders and regulators will continue to encouraged to get actively involved, take be managed centrally by our Stakeholder the opportunity to ask questions and Relations and Strategy teams and will be make suggestions that could improve underpinned by our commitment to ‘no performance. surprises.’

NDA strategy alignment

• Business Optimisation Public and Stakeholder Engagement and • Integrated Waste Management Communications • Nuclear Materials NDA Objective: To build and maintain • Site Restoration the support, confidence and trust of • Spent Fuels the public and stakeholders.

• Critical Enablers It is important that NDA decision-making is informed by a diverse range of views and that the rationale for major decisions and the processes by which they are reached is clear. We therefore regard openness, transparency and effective public and stakeholder engagement and communications as key to building the support, confidence and trust necessary for us to deliver our mission.

14 3 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Union engagement Unions play an important role in our organisation and we welcome a healthy and challenging relationship with them to ensure we do what’s best for the company and our workforce.

We have structures in place so that union representatives and managers at all levels can discuss tactical as well as strategic themes and issues. We are committed to early consultation Effective communications Employee engagement locally on issues that directly affect DEMONSTRABLE PROGRESS the workforce and we have a formal Our strategy of providing information Employee understanding of, and consultation process in place to to internal and external stakeholders commitment to, our plans and ensure the right level of engagement on the basis of avoiding surprises will activities, is key to the success that on company-wide matters. At times, continue. we can expect to achieve together. We it’s fair to say, we have not engaged as provide a range of means to inform well as we could and we are working to A disciplined approach to our employees about organisational improve this. communications will ensure that performance, strategy and priorities, information is made available in a and the contributions we all make. We timely manner and in a format that seek to involve our employees in the is appropriate to the audience. The organisation’s dialogue, and in shaping disciplined communications framework our engagement through discussions, sets out who is responsible for briefings, our Journey to Excellence engaging with our various stakeholder programme and interactions with the groups and will prevent duplication leadership team. of effort; the accuracy of information provided and will facilitate feedback We aim to inspire our employees to from stakeholders back into the commit and contribute to continuous business. improvement and help forge a place RETURN ON INVESTMENT in Britain’s nuclear future for them and future generations.

Key to Britain’s Energy Future

We are developing our responsible Understanding the aspirations of our 3m³ boxes procurement philosophy to help local community and matching these to create the right environment for local our future business and skills needs is Britain’s Energy Coast vision for businesses to grow and flourish. the starting point of developing the best West Cumbria is as the ‘centre procurement strategy. As a result of for excellence’, the go-to place Creating that environment is a complex this engagement, we have embedded direct socio-economic criteria into the for all things nuclear and energy matter, and relies upon close working with a range of stakeholders including 3m³ box Invitation to Tender and will POTENTIAL REWARDS related. the NDA, central government, local evaluate tenders against weighting government, Britain’s Energy Coast and factors that balance delivery, quality Key to success is attracting new supply chain. We are working with them and cost with socio-economic opportunities and understanding on a pilot project, procurement of 3m³ considerations. how our local supply chain could boxes to package waste coming out of maximise benefit from these openings. the decommissioning programme.

15 Demonstrable Progress

Strategic Objective 4 To accelerate risk and hazard reduction

Strategy The challenges are substantial: the existing material. The retrieved waste will be sent storage facilities are aged and deteriorating to either permanent disposal or to modern Our strategy is to mitigate and and the present condition of the nuclear interim storage facilities suitable for waste in those facilities is uncertain. In extended-term monitoring and storage. then eliminate the risks posed addition to the intolerable risk facilities, there by the large accumulations of are numerous other facilities at Sellafield that Key to success in accelerating risk reduction nuclear waste in decades-old are no longer in use, that present significant is the application of ‘special arrangements’ – facilities at Sellafield, particularly potential hazard, and must be safely innovative, fit-for-purpose technical methods decommissioned. those in the legacy ponds and and management practices that balance the risks of necessary retrieval actions with silos classified as ‘intolerable Activities continue to characterise the waste the longer term risk of inaction or delayed risk’. stored, keep the existing facilities safe and retrievals. secure, and plan, design and build new systems and equipment and structures to retrieve, package and store the hazardous

NDA strategy alignment

• Business Optimisation Site Restoration • Integrated Waste Management NDA Objective: To restore our • Nuclear Materials designated sites and release them for other uses. • Site Restoration

• Spent Fuels Our priority within this theme is to remediate intolerable risks in the Legacy Ponds and • Critical Enablers Silos at Sellafield as well as other significant legacy risks. We will also decommission redundant facilities at Sellafield whilst maintaining, and, as appropriate, upgrading the infrastructure and capability across the site to sustain the operations of key supporting plants and services.

16 4 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

First Generation Magnox Magnox Swarf Storage Silo Pile Fuel Cladding Silo DEMONSTRABLE PROGRESS Storage Pond Work is proceeding on manufacture This is one of the oldest facilities on site The special arrangements approach of three large machines for removal and it presents difficult structural and was first piloted on this programme, of legacy nuclear materials from this configuration challenges, demanding an leading to a revised strategy for huge storage facility – when installed, imaginative retrieval approach. One has fuel movements and retrieval with a the machines will be able to operate been selected, and work is proceeding significantly improved risk profile. A simultaneously, retrieving material from on design and fabrication of the large new facility for storage of retrieved different sectors. scale, complex retrievals equipment. sludge has been built and is being readied for operation. Delays have been sustained in the In anticipation of the installation of design and installation of the new the new equipment, major structural Work is under way to refurbish existing facility for treatment of much of the changes and equipment, including the equipment and provide new equipment waste to be removed; for that reason, installation of a new control building for retrievals, to refine detailed planning a separate, simpler system, suitable for and a very large crane system, have and to ready the pond for full-scale some of the material, is being designed been accomplished. This ambitious retrieval operations. In parallel, ongoing and will be installed in time for use as installation project was achieved development work is exploring the soon as the retrieval equipment is in safely, a success that garnered global adaptation of new technology for place. construction industry recognition. sludge retrieval. RETURN ON INVESTMENT

Key to Britain’s Energy Future

Sellafield is home to some of The Legacy Ponds and Silos were not the oldest buildings in the UK constructed with decommissioning in mind. There is no blueprint for how nuclear industry. We refer to to clean up these facilities or how to them as our Legacy Ponds treat the waste that will be retrieved and Silos. These facilities from them. were constructed in the 1940s and supported the original Through the decommissioning of Windscale reactors and then these facilities we are delivering against our customer’s primary the first generation of Magnox mission and reducing the risks POTENTIAL REWARDS nuclear power stations. and hazards at Sellafield. We are An aerial view of the Sellafield also designing and developing site in the 1940s. technologies and processes to safely treat and store nuclear waste that could be used by the wider UK and global nuclear industry.

17 Demonstrable Progress

Strategic Objective 5 To complete timely reprocessing and provide ongoing services to the nuclear industry

Strategy The strategy for Magnox fuel is to reprocess Any future receipts of fuel on to the all spent Magnox fuel as early as possible Sellafield site will be placed in long term The strategy for managing spent including any fuels which are compatible storage pending future policy decisions with Magnox reprocessing from the on management, currently assumed to be nuclear fuel has been set by the Dounreay nuclear site in Scotland. disposal. NDA following a period of public consultation. The strategy for oxide fuel is to complete The timely completion of reprocessing the Light Water Reactor fuel and Advanced activities at Sellafield is dependent on the Gas-cooled Reactor (AGR) contracts as reliability of plant and equipment on the soon as possible which will see the end site, some of which is in its sixth decade of reprocessing with the Thermal Oxide of operation. We will use best practice Reprocessing Plant (Thorp). established by recognised external sources where appropriate to improve our operational performance.

NDA strategy alignment

• Business Optimisation Spent Fuels • Integrated Waste Management NDA Objective: To ensure safe, • Nuclear Materials secure and cost-effective lifecycle management of spent Magnox, spent • Site Restoration Oxide and spent Exotic fuels. • Spent Fuels We will manage all spent Magnox fuel and • Critical Enablers place all Exotic fuels into a final disposition form.

On Oxide fuels, we will continue to receive and manage fuel from EDF Energy, thereby supporting the operation of the UK’s AGR power stations, and seek to optimise value from our spent fuel management contracts.

18 5 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Magnox Reprocessing Thorp Life beyond reprocessing DEMONSTRABLE PROGRESS Magnox Reprocessing Plants first Thorp has been reprocessing spent By the end of 2019, all reprocessing processed fuel in 1964 and have oxide fuel since the 1990s. The facility operations will have come to an end at operated every year since then, has generated a substantial income for Sellafield. reprocessing more than 50,000 tonnes the UK and the revenue from the plant of spent Magnox fuel. continues to contribute toward the cost This however, does not spell the end of cleaning up Sellafield. for these plants; as they move into the Processing the remaining fuel from Post Operational Clean Out (POCO) shut-down stations and the last Our strategy is to invest in pond storage phase we will require a skilled nuclear operational Magnox reactor will be equipment within Thorp. This would workforce for many years to come. completed by 2020. The focus of support the possible life extension of our improvement programme is on the AGR station by providing a secure Operations and maintenance support preventing the failure of old or obsolete and safe route for spent fuel. teams will be required to support the equipment which could prevent the fuel operational plant areas, modifications to from being reprocessed. plant for POCO, asset and safety case maintenance and transition. Many other disciplines will still be required to carry out work on the plants. RETURN ON INVESTMENT In summary, there will still be a lot of work to carry out beyond reprocessing; to carry out that work we require skilled people.

Key to Britain’s Energy Future

The continued safe operation of Success in our spent fuel our reprocessing facilities management programme will see us: at Sellafield is not only a key • Carry out efficient, predictable part of our mission on behalf operational performance of the NDA, it is an essential • Meet the demands of our

enabler to the operation of the POTENTIAL REWARDS reprocessing contracts and UK’s current nuclear fleet. customer expectations

• Demonstrate that our workforce are the experts at world class operational delivery Spent nuclear fuel being delivered to the Fuel Handling Plant at Sellafield.

19 Demonstrable Progress

Strategic Objective 6 To deliver our major projects through programme and project excellence

Strategy The development of which is challenging at The approach: Sellafield due to the compact nature of the Our primary mission at Sellafield site which can make construction difficult. • Improves programme delivery, in There is no ‘off-the-shelf’ solution that we particular at the early studies phase of is the accelerated clean-up of can replicate. projects, so as to meet the objectives set our legacy facilities. In order for the programme to complete these and other As challenging as construction is at decommissioning projects, it is Sellafield, we must improve the consistency • Improves Sellafield project management necessary to design, construct, of our project execution. and design capability to manage commission and operate new complex ‘first of a kind’ projects Our strategy to improve our performance in waste treatment facilities. programme and project delivery uses the • Works with the supply chain to increase experience gained from nuclear projects and the nuclear capability, particularly in international best practice. design and fabrication, to meet the increased demand from the site and potentially across the UK

NDA strategy alignment

• Business Optimisation Site Restoration Critical Enablers • Integrated Waste Management NDA Objective: To restore our NDA Objective: To provide the • Nuclear Materials designated sites and release them for stable and effective implementation other uses. framework that enables the delivery • Site Restoration of our mission. • Spent Fuels Our priority within this theme is to remediate intolerable risks in the Legacy Ponds and The NDA has a responsibility to deliver skills, • Critical Enablers Silos at Sellafield. We will also decommission Research & Development (R&D) and supply redundant facilities at Sellafield whilst chain development, to consider the socio- maintaining, and, as appropriate, upgrading economic aspects of its programme and to the infrastructure and capability across maintain effective stakeholder engagement. the site to sustain the operations of key supporting plants and services.

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Delivery in action

Simplified design Sharing best practice Early engagement DEMONSTRABLE PROGRESS We are delivering a purpose-built above We have a well established programme We are actively looking at how we ground nuclear waste store at Sellafield. to improve consistency across our can engage our supply chain as early This project includes the fit-out of an project delivery which includes as possible on work packages at existing building and the construction increasing the quality of our project Sellafield. One solution already being of a new facility. Combined, these specifications, greater engagement with implemented is the creation of longer buildings will handle radioactive waste the supply chain, extensive training for term framework agreements which which is retrieved from our high hazard our project managers and a drive to provide a platform for early engagement and risk reduction projects. bring additional resource and capability offering the potential for development into the business. We will build on and innovation that produces cost- Following a period of review the project this programme of improvements to effective and technically excellent has been simplified from its original implement the recommendations made solutions. design to reflect new information by the National Audit Office following available about the waste that will be their review in 2012. treated in the facility. RETURN ON INVESTMENT

Key to Britain’s Energy Future

Our performance in project management has been the subject of close scrutiny and we can rightly expect that interest in our performance and improvement to continue.

Our ability to execute projects effectively and efficiently is key to the future success of the Sellafield site. The site will be home to many new facilities and stores in the coming decades and we must ensure that they are available when they are needed.

The nuclear waste management processes that we will design and POTENTIAL REWARDS build at Sellafield are not only critical to our own decommissioning projects but could also be used by the wider UK and global decommissioning industry. The construction of a retrievals building is a key step in the programme to empty one of our legacy silos.

21 Demonstrable Progress

Strategic Objective 7 To be open and transparent about our performance and drive recognition of our success to ensure we are the workforce of choice for current and future missions

Strategy Although increased security arrangements Openness and transparency also includes mean that we are no longer able to take the sharing information with employees, our For more than thirty years, public on to the site, we continue to tell the customer, regulators, stakeholders and the Sellafield story. We provide information on media when we haven’t achieved what we we have delivered against our activities through our website, through hoped to or when unexpected events take a commitment to provide publications and through the provision of a place. information about our operations 24/7 media service. at Sellafield in an open and By openly sharing information with our We are committed to promoting our internal and external stakeholders on our transparent way. In the past this successes and the achievements of our plans, progress and improvement plans, we included the development and facilities, teams and individuals. This will continue to create an environment of operation of a visitors centre and promotion will range from stakeholder trust and two-way dialogue that is crucial to coach tours of the site for the engagement through to technical our long term success. presentations and industry events so that general public. we can share our experience and expertise Our strategy includes the development of with others who are facing the same or our community outreach programme to help similar challenges. improve understanding of what we do and how we do it.

NDA strategy alignment

22 7 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Closing gaps in performance Stakeholder scrutiny Sellafield Plan DEMONSTRABLE PROGRESS Our Corrective Action Programme We will continue to provide regular In August 2011, we published the (CAP) is all about helping us better updates, information and briefings to Sellafield Plan which set out details meet industry standards by improving the West Cumbria Sites Stakeholder of every programme of work at the way we continually identify, learn Group (WCSSG) as part of our Sellafield, how we will complete these from, and close performance gaps. stakeholder engagement activities. programmes and when. The benefits of CAP are higher levels of safety, performance and efficiency The WCSSG is an independent body Launched in partnership with the NDA – by embedding industry-leading whose role is to provide public scrutiny and Nuclear Management Partners, processes, solving company-wide of the nuclear industry in West Cumbria the plan is supported by the annual issues with company-wide solutions, by providing an active, two-way publication of specific targets which and greater oversight and integration of channel of communication between must be met in order for us to succeed. performance improvements. the site operators, the NDA and local stakeholders. By making this information public we hope that it is easier for interested parties to understand what we do at Sellafield and also so that they can assess for themselves the progress that we are making. RETURN ON INVESTMENT

Key to Britain’s Energy Future

In his report (July 2012) into the Recommendation 4 said that Our strategy of openness and events at Fukushima in 2011 ‘both the UK nuclear industry transparency will seek to increase and ONR should consider ways and improve the way that we (Japanese earthquake and tsunami: of enhancing the drive to ensure communicate about Sellafield and in Implications for the UK nuclear more open, transparent and trusted doing so will support the broader UK industry), Mike Weightman, communications, and relationships, nuclear industry’s effort to maintain POTENTIAL REWARDS HM Chief Inspector of Nuclear with the public and other and increase trust and confidence in Installations, included a series stakeholders.’ the industry. of recommendations for the UK nuclear industry.

23 Return on Investment

Strategic Objective 8 To invest in our people and make best use of supply chain partners; having the right people, with the right skills in place at the right time

Strategy Our strategy recognises that core skills Key features of our strategy are: and knowledge of the Sellafield Ltd • Reskilling and development of the workforce will need to adapt to changing Sellafield is key to the UK Sellafield Ltd workforce circumstances and that it needs to be used nuclear capability and will in partnership with the skills and knowledge • Investment in leadership continue to play an important of supply chain partners. role in the future. Locally, the • Developing the supply chain site will continue to provide This approach ensures that our strategy will • Workforce mobility significant levels of employment recognise that there are some things that our workforce does best and there are some • Knowledge retention both directly and through the things that the supply chain can do better. • Apprentices supply chain.

NDA strategy alignment

• Business Optimisation Critical Enablers • Integrated Waste Management NDA Objective: To provide the • Nuclear Materials stable and effective implementation framework that enables the delivery • Site Restoration of our mission. • Spent Fuels The NDA has a responsibility to deliver • Critical Enablers skills, research & development and supply chain development, to consider the socio- economic aspects of its programme and to maintain effective stakeholder engagement.

24 8 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

SMP Mobility Resourcing Next Generation DEMONSTRABLE PROGRESS In August 2011, the decision was taken Ensuring that we have the right people, Our commitment to growing the to close the Sellafield MOX Plant. with the right skills, available at the capability of the Sellafield Ltd workforce Although the Post Operational Clean right time is a key component of our includes our ongoing investment in new Out phase of the plant closure will take Excellence Plan. The Excellence Plan employees. In 2012 we announced a number of years to complete, the sets out the things that we need to the recruitment of more than 500 new announcement meant an immediate improve to deliver our strategy. It will employees at Sellafield, which will be reduction in the number of employees help us to identify changing resource followed by a further recruitment drive needed in the facility. requirements in employee numbers, in 2013. opportunities to utilise the skills of our Working with the trade unions and supply chain and also specific areas Our investment in apprentice training human resources, we embarked on a where we can start to nurture and will also continue. In the last few years, programme to mobilise as many of our develop new skills and capabilities. not only has the number of apprentices employees from the plant to other work that we recruit increased, we have also buildings and projects as possible. worked with our training partner, GENII In some instances this involved to develop new courses and specialist retraining employees to deliver skills, including business administration. completely new roles. RETURN ON INVESTMENT

Key to Britain’s Energy Future

Key developments in the UK’s Throughout the site’s history, our We believe that this leadership role nuclear history have been led expert employees have been called can continue with our employees on to support the wider UK and global sharing their skills and expertise by Sellafield. From the site’s nuclear industry. in decommissioning and waste infancy and its role in supporting management for many years to POTENTIAL REWARDS the national defence priorities, More recently we have been called come. through to harnessing the power on to support the recovery operations of the atom and developing safe under way at the Fukushima plant treatment and storage options for in Japan following the devastating events of 2011. nuclear waste.

25 Return on Investment

Strategic Objective 9 To provide our communities and taxpayers with a socio-economic and growth return on their investment at Sellafield

Strategy Our partnership approach remains part Our commitment to ensuring that our of our strategy for the site and will see us communities and taxpayers receive a return Sellafield is not just a large nuclear continue to play a full part in the socio- on their investment is rooted in our desire to economic development and regeneration of make the best use of every pound given to site that sits on the edges of the West Cumbria. us to deliver our mission. We will continue to community. We are part of our help the development of our supply chain. community. We will continue to invest the £3m that A strong nuclear supply chain will not only the NDA gives to us every year for socio- be able to help us to deliver our mission at economic investment. We will also seek to Sellafield, but will also be well placed to gain offer the skills and capabilities to community a share of the multi-billion pound nuclear projects as appropriate. Our employees will decommissioning market around the world. continue to be supported as we pay for their time to carry out vital community roles such We will not impose solutions but will seek as councillors, school governors, emergency to work with all interested parties to create service volunteers and many more. sustainable economic growth and to help make West Cumbria an attractive area for investment.

NDA strategy alignment

• Business Optimisation Supply Chain Development Socio-Economics • Integrated Waste Management NDA Objective: To optimise the NDA Objective: To support the • Nuclear Materials NDA supply chain to develop an creation of dynamic, sustainable local affordable, cost-effective, innovative economies for communities living • Site Restoration and dynamic market to deliver our near our sites. • Spent Fuels mission. The NDA is a major stakeholder in the • Critical Enablers Given the scale of NDA spend, a vibrant communities in which it operates, and its supply chain is vital to secure value for activities can have a significant social and money, reduce risk and optimise delivery economic impact. We are obliged to take of our mission. This depends on having account of these impacts, which we do by effective procurement processes and clear actively supporting these communities and alignment between the aims of the client and those organisations formally accountable for supply chain companies. As a key player in economic development. the nuclear supply chain, we are in a strong position to link with other nuclear clients and support government supply chain initiatives.

26 9 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Supply chain working group Britain’s Energy Coast Small and medium sized DEMONSTRABLE PROGRESS enterprises Key to delivering a socio-economic Britain’s Energy Coast (BEC) was return on taxpayers’ investment is established in 2009 with the mission of Working with the small and medium creating a shared vision between the transforming Allerdale and Copeland sized enterprises (SMEs) in our supply nuclear industry, our supply chain and (West Cumbria) into a diverse, resilient chain provides a way of boosting local government. and low carbon economy. local economies by ensuring that locally based firms benefit from big We joined with our three local BEC has evolved into a public-private infrastructure and construction projects. authorities to set up the Supply Chain partnership consisting of Nuclear Working Group to discuss all supply Funding Partners, local authorities As well as the obvious socio-economic chain and local socio-economic issues, (Allerdale Borough Council, Copeland benefit to our local communities, a identifying opportunities and resolving Borough Council and Cumbria County strong local supply chain provides a challenges. Council) and independent members great business benefit to Sellafield from the private sector with experience Ltd. We know that by investing money This new approach to working together in sectors of importance to the local with SMEs we grow the supply chain’s should deliver mutual benefit for all economy. capability, which brings huge benefits involved and provide a mechanism for for us as we tackle our complex checking delivery of outputs against Together with Nuclear Management decommissioning challenge. promises. Partners and the NDA, we provide £6m RETURN ON INVESTMENT of funding to BEC every year. That’s why we fully support the NDA’s commitment of doubling the amount of money with SMEs so that it reaches 20% of its entire sub-contracting budget by 2015. We will actively encourage our tier two suppliers, who are often large multinational companies to do the same.

Key to Britain’s Energy Future

Workington based engineering firm The company presently delivers The mainly local workforce has used Stobbarts has used its core work at minor civil works on the Sellafield its skills and energy to help tackle site, amounting to an annual value of a wide range of difficult challenges. POTENTIAL REWARDS Sellafield to expand from an 18 man between £15 million and £20 million These include the maintenance of outfit ten years ago to a 200 strong and acts as a hub for other local tier Sellafield’s ageing infrastructure and company servicing industries as 4 contractors. rebuilding projects elsewhere in the diverse as construction and solar community following the 2009 floods. panel installation.

27 Return on Investment

Strategic Objective 10 To drive taxpayer value for money

Strategy The NDA’s value framework defines where • Making the right investments in the customers judge value from activities assets at Sellafield to reduce lifetime The NDA invests the majority of carried out at Sellafield. The framework costs uses the following criteria; Affordability its annual budget on our work (short, medium and long-term), Value for • Improving efficiencies across the programmes at Sellafield. Their Money, Safety and Environmental Impact, company to reduce capital and operating investment in Sellafield as their Deliverability, Socio-Economic and UK costs priority site continues to grow Government Policy Impact. meaning that we are responsible • Creating future opportunities in Our strategy work within this framework for the effective use of over nuclear waste management and ensures maximum value to the UK decommissioning through innovative £1.7bn of taxpayer money every taxpayer by: solutions developed at Sellafield able to year. This NDA investment in be developed by the supply chain in a Sellafield has increased by 70% • Delivering NDA commercial contracts at worldwide market since 2005. lowest cost thereby providing income to NDA and reducing the cost to the taxpayer Demonstrating value for this investment and improving our • Carrying out additional work at Sellafield productivity is a key part of our at marginal cost thereby reducing the strategy. cost at other NDA sites

NDA strategy alignment

• Business Optimisation In 2013/14 Sellafield Ltd will receive Through the effective and efficient use of more than £1.7bn of the NDA’s the money given to us we can accelerate • Integrated Waste Management our risk and hazard programmes while also total £3.2bn budget, representing increasing our customer’s confidence in our • Nuclear Materials a further increase in the amount of ability to deliver value for money. money invested by our customer at • Site Restoration Sellafield. • Spent Fuels Driving taxpayer value for money applies to • Critical Enablers all of our activities across Sellafield Ltd from our commercial operations, decommissioning and waste management activities to our support functions.

28 10 0VERVIEW SAFE, SECURE SITE STEWARDSHIP

Delivery in action

Support to UK nuclear fleet Fuel storage Improving efficiency and DEMONSTRABLE PROGRESS productivity High density storage of AGR fuel is Stores which were created at Sellafield being deployed within the ponds in in support of the Sellafield Mox Plant, Demonstrating value and improving Thorp at Sellafield using a new design which closed in August 2011, are being productivity is key to our strategy and a of Multi-Element Bottles. used to store some fuel which has been cornerstone of the improvements in our transferred from the Dounreay nuclear Excellence Plan. This fuel storage project not only makes site in Scotland. best use of the available pond storage In the Excellence Plan are the focus space we have available, it also allows Not only does this accelerate their risk areas of the Integrated Change the extension of the UK nuclear fleet by and hazard reduction programme it also Programme, where we see improvements at least a decade. prevents additional costs being incurred in productivity as changes start to at the Dounreay site. embed. For example, operators talk about the time they are saving through our changes to instructions. Integrated work management means planning and availability are more stable and more work goes ahead as planned. RETURN ON INVESTMENT We know we have much more to do, but early feedback shows encouraging improvements in productivity. Key to Britain’s Energy Future

The joint government and Government is keen to ensure that industry review of the UK the decommissioning of the UK’s existing nuclear facilities is done in a nuclear future identified a way to deliver the skills and capacity number of areas of strength needed to support not only the of the UK nuclear industry decommissioning programme but and considerable potential also the potential new build and plant international markets in waste life extension programme. and nuclear decommissioning. We believe that the Sellafield Ltd workforce and supply chain can play POTENTIAL REWARDS The report estimated that the global a key role in this growing nuclear decommissioning market would be market. worth £50bn per year by 2020, with between 82 and 145 reactors retired by 2030, mostly in Europe.

29 Potential Rewards

The safe delivery of our vision and mission will not guarantee new missions but will enhance our chances of success.

We will not deliver our work safely because Leading the UK capability in of the promise of new work; we will do it decommissioning and waste because it is the right thing to do. We will deliver what we say we will, when we say we • Partner with academia, Small to Medium will for our customer, because it is the right sized Enterprises (SMEs) and the National thing to do. Nuclear Laboratory • Technology demonstrators Through timely delivery and exceeding expectations, we can establish ourselves • Access to Sellafield Ltd knowledge as experts and leaders in nuclear • New UK skills growth decommissioning, nuclear material management and nuclear waste Long-term structure for growth management. We can make Sellafield Ltd Leading the UK capability in and West Cumbria the obvious choice for • Strategic partners in different segments of decommissioning and waste new missions. industry Working in partnership with National • Divisionalised more autonomous decision There are many new missions out there that Nuclear Labratory we are already making we can be part of, including: demonstrating new technology such as • Developing the opportunity to extend our the Rad Ball at Sellafield Supporting additional NDA missions customer base • Plutonium recycling and management To achieve any of these rewards we must • Support for Ministry of Defence adapt, we must deliver and we must decommissioning continually improve. • Services to the nuclear industry

Long-term structure for growth We are working closely with strategic partners from our supply chain to accelerate working in legacy ponds and silos

Journey to Excellence The people of Sellafield Ltd will be recognised for resolving the UK’s nuclear legacy.

30 0VERVIEW SAFE, SECURE SITE STEWARDSHIP DEMONSTRABLE PROGRESS RETURN ON INVESTMENT

“The strategy developed by Tony and his team underpins the priority for Sellafield; safe, successful and accelerated clean up. As Parent Body Organisation, Nuclear Management Partners welcomes the strategy and will support Sellafield Ltd in POTENTIAL REWARDS delivering the Nuclear Decommissioning Authority’s mission.”

Tom Zarges Chairman, Nuclear Management Partners

31 Sellafield site Sellafield, Seascale Cumbria CA20 1PG www.sellafieldsites.com