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EDF says reactor extensions to cost EUR50bn Companies mentioned: EDF, Autorite de Surete Nucleaire, Shaw, Westinghouse, NRC, Areva, ONR, Hinkley Point, USEC, TENEX, and Carmanah

Weekly Intelligence Brief 16 Dec. – 4 January 2012

EDF says reactor extensions to cost EUR50bn

Paris-based EDF, operator of France’s 58 nuclear reactors, was ordered by the Autorite de Surete Nucleaire to spend billions of euros on improvements in a safety review following last year’s Fukushima disaster in Japan.

Electricite de France (EDF) has since reported that the cost of extending the lifecycle of its nuclear reactors to 60 years could reach EUR50bn ($65bn) to accommodate for regulator enforced safety measures.

The figure is 43 per cent more than an estimate of about EUR35bn EDF Chief Executive Officer Henri Proglio estimated in 2010.

The improvements “will require an increase in annual capital expenditure,” Jean-Marc Miraucourt, head of nuclear engineering, said in a telephone interview to Bloomberg.

EDF is forecasting spending of about EUR700m at each existing reactor to allow for operations through 60 years, Miraucourt said.

Westinghouse receives NRC final design certificate

The Shaw Group had some good news at Christmas when it was able to congratulate Westinghouse Electric for receiving final certification for the AP1000 nuclear power plant design from the US Nuclear Regulatory Commission (NRC).

Final design certification marks the formal completion of the public comment period and rule-making activities. It also indicates approval by the NRC of a standard nuclear power plant design independent of a specific site or an application to construct or operate a plant.

“The final design certification of the AP1000 reactor from the NRC is a testament to the nuclear industry’s dedication to safety and dependability in reactor design,” said J.M. Bernhard Jr., chairman, president and chief executive officer of Shaw.

“The AP1000 design is a significant advancement in the safety of nuclear energy, and now with the design certification in place, the technology will play an important role in providing safe, clean and reliable energy for our future.”

Areva meets EPRTM reactor milestone

Before the Christmas holidays the United Kingdom’s Office of Nuclear Regulation (ONR) issued an interim Design Acceptance Confirmation (iDAC) for Areva’s E reactor following a four-year Generic Design Assessment process.

This achievement is a major step forward for the construction of EPR reactors in the UK selected by EDF Energy.

The issuing of the IDAC follows the signing this past July between AREVA and EDF of a contract for the manufacture of heavy forgings required for critical components for the Hinkley Point C EPR reactor.

Alain-Pierre Raynaud, Chairman of AREVA UK, said: “This is a very important moment. After four years of the most detailed and careful examination of the EPR design by the UK regulators, they have concluded that they are largely satisfied with both the design and the safety case of our technology and are prepared to issue an Interim Design Acceptance Confirmation for the UK.”

Slovakia passes EU nuclear stress tests

Slovakia's four nuclear reactors have passed EU stress tests, according to Slovakia’s nuclear regulator. 
The Slovak regulator released its report a day after the neighboring Czech Republic announced that the nuclear power plants of utility CEZ at Temelin and Dukovany had passed the EU-mandated stress tests, a Reuters report said.

The Slovak tests included an analysis of unexpected incidents such as quakes, floods, power failures, a long-term interruption of the water supply and other system checks.

The regulator reported that facilities had added new emergency diesel generators and purchased manual, portable pumps in case of flooding.

USEC TENEX supply deal sealed

JSC TENEX and United States Enrichment Corporation have signed a supply agreement for a multi-year contract for the supply of low enriched uranium beginning in 2013.

“We are excited to continue our fruitful relationship with TENEX, which has been built on the foundation of the successful Megatons to Megawatts program,” said Phil Sewell, USEC senior vice president of American Centrifuge and Russian HEU.

“We appreciate the work and support of the U.S. government to complete the administrative arrangements under the US-Russia nuclear cooperation agreement that now allows this commercial contract to move ahead.”

Under the terms of its agreement with TENEX, the supply of LEU to USEC will begin in 2013 and ramp up until it reaches a level in 2015 that is approximately one-half the level currently supplied by TENEX to USEC under the Megatons to Megawatts program with the mutual option to increase the quantities up to the same level as that program. The Megatons to Megawatts program is scheduled to expire at the end of 2013.

Unlike the Megatons to Megawatts program, the quantities supplied under the new contract will come from Russia’s commercial enrichment activities rather than from downblending of excess Russian weapons material.

Deliveries under the agreement are expected to continue through 2022.

Nuclear facility installs $1.5m in solar security lighting

A large US power utility in the Southwestern US has selected the EverGEN 1530 solar LED outdoor lighting system for the second installment in a perimeter fence security lighting project.

The solar lighting systems supplied by Carmanah are being installed to increase the security of a nuclear power generating facility by providing backup safety lighting in the unlikely event of power failure, allowing the facility to maintain critical security functions that are mandated by Homeland Security.

The combined value of both orders by the power utility represents over $1.5 m in solar security lighting.