Springfields Site Stakeholder Group Site Reports – April 2017 Contents Business Report 2 Environment, Health & Safety Report 6 Socio-Economic Report 9 Glossary and Abbreviations 12 Springfields Fuels Limited Springfields, Salwick, Preston, PR4 OXJ T+44 (0) 1772 762000 www.westinghousenuclear.com/springfields Business Report Simon Marshall Managing Director 1 Environmental, Health, Safety & Quality – Highlights 1.1 As of 27th March 2017, Springfields employees have worked 429 days without an industrial safety accident that resulted in a days-away case. In addition, there have been no recordable injuries so far this financial year. 1.2 A counter terrorism Security exercise was conducted on January 11th. We would like to thank everyone for their cooperation and participation. There were a number of good points and some learning. 1.3 In March Springfields Fuels was successful in transitioning to the latest ISO 9001 Quality and 14001:2015 Environmental Management standards. 2 Operational 2.1 The 31st March brought to a close the 2016/17 financial year, during which the production of Advanced Gas-Cooled Reactor (AGR) fuel was completed as planned, and deliveries to EDF Energy’s stations successfully achieved. Intermediate products (UO2 powder and granules) have also been manufactured to time and delivered in line with our customers’ requirements. The LWR (Light Water Reactor) fuel manufacturing facility has increased productivion taking on additional fuel load and successfully achieving all deliveries to EDF SA in France. In order to meet the growing demand for the RFA1300 fuel variant (a physically longer fuel assembly than the RFA900 being manufactured) the LWR production facility has been modified to accommodate this requirement. All process and product qualification activities were completed and approved by EDF SA in November 2016, enabling our first delivery of RFA1300 fuel in December 2016. 2.2 Following Toshiba’s acquisition of a controlling stake in NuGen, Springfields is looking forward to manufacturing the AP1000 fuel for the initial cores and the subsequent re-loads of the three stations planned for the Moorside site in Cumbria. The introduction of the LWR fuel manufacturing capability has been a crucial step in positioning Springfields to produce fuel for both the current and next generation of reactors planned for construction in the UK and across the rest of Europe, Middle East and Africa. This objective is further supported by the modifications of the facility to accommodate the longer RFA1300 fuel variant, as the AP1000 fuel is of a similar geometry. 2.3 The installation of the HT-IDR (High Throughput – Integrated Dry Route) technology for UF6 re-conversion has been completed on all three process streams. All streams are continuing to perform extremely well. This project has been vital to ensure we have the necessary UF6 to UO2 re-conversion capacity to meet future fuel demand. 3 3 Uranium Recovery 3.1 All Nuclear Decommissioning Authority (NDA) and Ministry of Defence (MOD) contractual targets should be met this year. This has involved the development and successful implementation of new processing capability on many production lines. 3.2 Pre-processing of off-site material to allow processing in SFL facilities has been completed, work is now complete in preparing for storage the material that will not be processed. The NDA do not currently have any plans for transferring any other material from any other site to Springfields. International opportunities for Uranium Recovery continue to be explored to off- set any decline in UK business. 3.3 Washing of the obsolete hex cylinders continues to plan. This work will continue into next year. The effluent blending rig is functioning, allowing cylinder effluents to be processed which have previously slowed the process. 4 Decommissioning 4.1 A336 (UN Production) & A337 (UO3 Production) Though operations continue in these plants, work has now commenced on the initial phase of decommissioning across the two areas. This has been primarily focused on the decontamination and removal of several items of plant and equipment that have been identified as already redundant. In addition, civil and mechanical works are also currently ongoing to construct new pipe-bridge structures to allow for the diversion of several mechanical services currently passing through the buildings. Future decommissioning plans continue to be developed with the NDA to align with the site’s residue processing programme, plant closure strategies and NDA funding availability. 4.2 A88 (Main Workshop) Work continues on the construction of an extension to A611 to enable the relocation of the site’s Main Workshop, and discussions are continuing with the NDA to agree the decommissioning plan for A88 including diversion of all associated services. A suitable Care and Maintenance plan is being developed for the building in the interim, and prior to its final demolition. 4.3 Contaminated Land Management The 2016/17 programme of routine sampling and monitoring has progressed without issue or any significant changes being reported. Surveying of the historic east site drainage network was also completed in late 2016 and NDA has now requested that an options report including cost estimates be prepared on potential remedies and next-steps regarding its potential impact on downward flow into Deepdale Brook. 5 Employees 5.1 Springfields is currently in the process of conducting this year’s apprentice recruitment – a total of five are required. Aptitude tests and interviews have been carried out and the five successful candidates will begin their employment in August 2017. These additions are key to ensuring we continue to bring new blood into the organisation to support growth and base business going forward from a talent perspective, even though the company continues to reduce its number of employees overall in the UK. 5.2 Since the last meeting (November 2016), a total of eight employees have left the company. We have recruited two people into new roles supporting the wider Westinghouse organisation in both New Build and Decommissioning business as we look to grow these opportunities in the UK, with a further three recruits in the process of being finalised. At present approximately 1065 people are employed by Westinghouse in the UK. Some of our employees have again supported Westinghouse projects at power stations in the UK and in other international locations such as Korea. 5.3 The annual reward and recognition event (Recognising Excellence) was held on 24 November. The event recognises those employees who have won UK safety awards and George Westinghouse Signature Awards of Excellence – the company’s highest award for technological excellence. Around 80-employees attended the lunch and awards presentations which were held at The Villa, Wrea Green. 5.4 The site transformation team continue to work on projects in partnership with union representatives to ensure the site remains competitive and is in a strong position to attract new business. As it becomes more and more difficult to operate in commercial markets, the focus remains on the safe operation of the site at all times. 5.5 As our presence in West Cumbria increases with the growth in our decommissioning and new build activities, we continue to be involved in the Centre of Nuclear Excellence and the National College for Nuclear alongside our continued support for the National Skills Academy for Nuclear showing our commitment to play an active role in ensuring future skills requirements on both a local and national level are understood. 6 Commercial 6.1 Westinghouse has secured a new contract for Springfields to 2021 with EDF for the provision of UF6 cylinder maintenance services covering transport, storage, washing, inspection and certification in support of the EDF fleet of cylinders which is used in the fuel cycle operations of EDF in France and EDF Energy in UK. 6.3 Agreement has been reached with the Nuclear Decommissioning Authority for the work on their legacy materials to be performed at Springfields in the coming financial year to 31st March 2018. This confirms extension of the work on processing NDA’s uranium residues for another 12 months and retains operation of unique facilities into this period. Westinghouse continues to work with the NDA to find the most appropriate route for disposal of any remaining historic liabilities located on the Springfields site. 6.4 The Hex Plant remains in care and maintenance regime pending a decision on the ultimate future for the facility. Westinghouse is continuing to pursue opportunities to start the plant in the coming years. 6.5 Westinghouse UK was awarded a contract for design and manufacture of 247 Self Shielded Boxes that will be used at Sellafield for the interim storage of decommissioning material from the First Generation Magnox Storage Pond. The number of boxes could increase should 5 further safety cases be approved for additional inventory. The commercial team which supports this work is based at Springfields. 6.6 Westinghouse has established a new team at Springfields to support servicing of operating nuclear plants. The group will participate in approximately two years of training globally alongside the existing Westinghouse Operating Plant Business (OPB) teams in locations such as USA, Germany and South Korea, using a range of non-destructive examination (NDE) techniques. Westinghouse intends to establish a centre of excellence for NDE at Springfields, supporting OPB requirements in UK. Environment,