Areva - Reference Document 2016

06

BUSINESS OVERVIEW

6.4 Operations

Power companies can manage their used fuel in one of two ways:

Kingdom. Its recognized expertise in the management of production/dismantling transitions, particularly for the UP1 plant at Marcoule and the UP2-400 plant at la Hague, is a valuable asset: the United Kingdom has asked for our support over a period of five years during the final shutdown of the Thorp and Magnox plants. In the dismantling field, the strategic objective is to strengthen the business unit’s position as a major player in managing and bringing solutions to customers for their dismantling projects, particularly in the United States, the United Kingdom, Germany and Japan. Human and industrial resources The Recycling Business Unit’s principal base consists of the industrial platforms of la Hague andMELOX, respectively located in theManche and Gard Departments of France. These two sites represented close to 6,000 employees and subcontractors in 2016. The installed capacity of the la Hague and MELOX plants along with AREVA’s cumulative experience rank the group number one worldwide in recycling. The Recycling Business Unit also draws on the skills of the AREVA Temis entity. AREVA LA HAGUE The la Hague site provides the first stage of recycling operations: the recyclable materials are first separated from the waste in the used fuel of French and foreign power plants and research reactors, and then these recyclable materials and final waste are packaged in a safe and stable form. The plant has two production lines, UP2-800 and UP3, which have a combined licensed capacity of 1,700 metric tons of used fuel per year, corresponding to the generation of 600 TWh per year of electricity. In 2016, the la Hague plant treated 1,118 metric tons of used fuel and produced 999 canisters of vitrified waste. In October 2016, the new industrial organization was implemented at the la Hague plant following the authorization given by the nuclear safety authority ASN. In November, the decree authorizing the extension of storage capacity for French vitrified waste at regulated nuclear facility no. 116 (INB, installation nucléaire de base ) was published in the Journal Officiel. This publication follows the public inquiry commission’s favorable opinion on the project to extend the storage capacity by an additional 12,000 canisters, rendered in June 2015. In addition, preparatory civil engineering work began related to projects to install new fission product concentration evaporators (NCPF projects) in the T2 and R2 facilities. This equipment will ultimately replace the evaporators currently in service. Lastly, most of the remediation means defined pursuant to the post-Fukushima supplementary safety assessments (cooling, emergency generators, pumps, etc.) were in operation at the end of the year. AREVA MELOX The AREVA MELOX site is the world leader in the fabrication of recycled nuclear fuel, or MOX. In 2016, MELOX produced 124 metric tons of MOX fuel for its French and international customers. For the international market, fabrication resumed for the Japanese customer Kansai Electric Power Company in 2016. Concerning technology, four Japanese specialists from Japan Nuclear Fuel Limited began a six-month training program at the MELOX plant in the autumn of 2016.

p Recycling: this solutionmeets the objectives of natural resource conservation and environmental impact limitation. After removal from the reactor and cooling in a storage pool, the fuel is treated to recover materials that still have energy potential in order to fabricate fresh fuel. The uranium and plutonium, which represent 95 to 96% of the materials contained in the used fuel, are thus recycled into new fuels called MOX (fuel containing a mixture of uranium and plutonium oxides) and ERU (enriched recycled uranium fuel). Final waste, which represents 4 to 5% of the materials, is incorporated into glass and packaged for safe and stable disposal in a geologic repository. Countries such as France, the Netherlands, Russia, China and Japan have opted to recycle their used fuel; p Direct Disposal: the used fuel is stored temporarily in pools or at dry storage sites. Storage is not a lasting solution and must be followed by deep geologic disposal. For the medium term, direct disposal solutions for used fuel are under assessment as a component of national nuclear waste management policies. However, these solutions are not available on an industrial scale today. The direct disposal policy is currently being implemented in two countries: Sweden and Finland. Used fuel recycling contributes to the conservation of natural uranium resources and to non-proliferation, and it facilitates radioactive waste management by significantly reducing its volume and radiotoxicity. Waste is packaged in universal canisters designed specifically to trap contamination over very long periods of time. The sustainability of nuclear power programs requires the implementation of a used fuel management policy accepted by all stakeholders. Many countries are planning to recycle their used fuel or are interested in doing so. Some countries seeking to deploy large-scale nuclear power programs are turning to recycling technology as an important factor in energy self-sufficiency. Some of them, such as China, even want to have their own facilities when warranted by their power programs. Recycling is also a response to non-proliferation issues. AREVA can offer utilities global services consisting of removing the used fuel from the power plant and producing the corresponding recycled fuel, returning to the customer country only final waste that does not contain materials subject to International Atomic Energy Agency (IAEA) safeguards. Recycling allows utilities to constitute reserves of nuclear materials which could be used in future generation IV reactors. Operations and highlights The treatment and recycling framework agreement defines the terms of industrial cooperation in treatment and recycling between AREVA and EDF for the years to come. Pursuant to that framework agreement, AREVA and EDF signed a new contract for the 2016-2023 period. This agreement includes the transportation, treatment and recycling of used nuclear fuel. In 2016, in connection with the review of its facilities following the Fukushima accident, the Recycling Business Unit continued to implement the action plans submitted to the nuclear safety authority ASN in June 2012. These measures aim to strengthen nuclear safety in the event of extreme situations at the la Hague and MELOX sites. Internationally, the Recycling Business Unit is still in technical negotiations with its customer CNNC for the construction of a used fuel treatment and recycling plant in China. The construction of the MFFF also constitutes a major goal. On December 21, 2016, AREVA and Sellafield Ltd signed an assistance contract (ASSIP) for the 2017-2021 period, thus broadening AREVA’s prospects in the United

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2016 AREVA REFERENCE DOCUMENT

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