EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

Fuel Framatome designs, develops and manufactures fuel assemblies for pressurised water reactors, boiling water reactors and research reactors. The company's know-how spans the entire process: from the design of the fuel assembly, to the production of zirconium and its alloys – zirconium being vitally important for fuel production – on to fuel fabrication and related services, right through to operations on the nuclear power plants. The company performs all relevant calculations from general fuel management up to dedicated licensing for the highest performance and safety. Over 226,000 Framatome fuel assemblies are loaded in more than 100 reactors in operation around the world. In 2018, Framatome and the Chinese group CNNC, through their joint venture CAST, delivered the first batch of fuel cladding tubes for the Fuqing nuclear power plant unit 5 “Hualong-1”. These zirconium alloy tubes will contribute to the safe and efficient operation of the reactor. After two years of continuous and stable production, 51,494 cladding tubes (198km – equivalent to 185 fuel assemblies) will be delivered by the CAST plant. In 2018, the company also signed a contract with Talen Energy to supply its advanced fuel, ATRIUM 11, to the Susquehanna nuclear plant in the United States. In January 2021, it will deliver the first of the six fuel reloads to the site located in Berwick, Pennsylvania. Commissioning and licensing of nuclear power plants Framatome has substantial international experience working with nuclear safety authorities on all types of reactors currently in service around the world. The company also offers support for operators through relationships with their respective safety authority and in the application of existing regulations. In France, Framatome has expertise in the application of the Order relating to nuclear pressure equipment (Arrêté relatif aux Équipements Sous Pression Nucléaire – ESPN). Technical centres and test facilities are available to the company's customers to qualify equipment and to provide assistance in the preparation of the qualification studies and associated documentation. Services and solutions to maintain and modernise nuclear power plants and extend their operating lifetime Framatome offers innovative solutions and services to maintain and modernise existing nuclear power plants, and extend the lifetime of existing installations, while guaranteeing the safety, performance and availability of operations. Framatome has 60 years' international experience of all types of technologies and maintenance of more than 250 reactors worldwide. Its teams have expertise and knowledge in maintenance, component replacement, inspections and checks, refuelling operations, and optimised management of reactor shutdowns for maintenance. More specifically, its activities cover supply of fuel assemblies and related services, management of equipment and spare parts, modernisation of I&C, and chemistry and radiochemistry services. In 2018, Framatome competed the refurbishment of 31 reactor coolant pump motors for three southeastern nuclear energy facilities in the United States. From 2002 to May 2018, the company modified and upgraded these components, which resulted in a 100% reliability and zero-failure performance since being re-installed. The motors in reactor coolant pumps help move coolant around the primary circuit of a nuclear reactor core. This same year, Framatome, Bureau Veritas and Doosan Babcock created EQUALLE™, an alliance to provide nuclear equipment qualification services in the United Kingdom. Management of large projects Framatome’s participation in the construction of new-build nuclear reactor projects spans across design, through procurement and supply, and onto commissioning.

With recognised expertise in the management of complex projects, its teams are tasked with delivering to the most stringent security standards and fulfil the requirements of its customers. In the case of new-build construction projects, the company proposes solutions for the nuclear island scope. Framatome is actively involved with EDF in the construction and commissioning of 5 EPR reactors worldwide: in France (Flamanville 3), in China (Taishan 1&2), and in the United Kingdom (Hinkley Point C, 2 reactors). In 2017, EDF and Framatome created Edvance, a joint engineering subsidiary for the construction of new nuclear power plants in France and in the world (see also section 1.1 “History and development of the Company”). Key achievements by Framatome in 2018 1.4.1.3.3 In January, Framatome signed a joint development agreement with its Chinese partner CNNC, with the purpose of extending their cooperation in nuclear fuel design, engineering and services relating to nuclear fuel; enhancing their collaboration on digital instrumentation and control for nuclear power plants and increasing their cooperation in maintenance, safety and operation upgrades for in-service nuclear power plants. In parallel, a major contract renewal was signed with CNEIC (a subsidiary of CNNC) for ten years in the field of components for fuel assemblies. At the same time, in the United States, Lightbridge and Framatome launched Enfission, a 50-50 joint venture company to develop, manufacture and sell nuclear fuel assemblies based on Lightbridge-designed metallic fuel technology and other advanced nuclear fuel intellectual property. In February, Framatome completed purchase of Schneider Electric’s instrumentation and control nuclear business. With this transaction, Framatome adds to its engineering expertise and expands its Instrumentation & Control (I&C) offerings. In April, Framatome and Vattenfall signed a contract for the delivery, between 2021 and 2024, of ten fuel assembly reloads to the Swedish nuclear power reactors Forsmark 3 and Ringhals 3 and 4. These contracts include additional options for two reloads for each reactor after 2024. In May, Framatome signed a multimillion-dollar contract with Dominion Energy to provide steam generator maintenance services for its entire nuclear reactor fleet in the United States. The inspection and maintenance work is scheduled to take place during eight outages from 2018 to 2020. At end-June, Unit 1 of the Chinese plant Taishan was successfully connected to the grid for the first time, with the support of Framatome. After the first criticality reached on 6 June, this was the world's first EPR reactor producing electricity. In September 2018, Framatome also signed a contract for upgrading the Instrumentation & Control (I&C) system on EDF's 900MWe reactor fleet in France. Following on from the studies already underway since 2015, the first on-site operations will begin in 2019, coinciding with the fourth ten-yearly inspections of the 900MWe series reactors. In November, Framatome signed a memorandum of understanding (MoU) with Bruce Power in Canada as part of the Life-Extension Programme updates of nuclear reactors, covering a range of innovations and new activities.

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Nuclear facilities 1.4.1.3.4 Basic nuclear facilities (BNF)

There are two basic nuclear facilities (BNF) at the Framatome site of Romans, BNF no. 63 (fuel elements fabrication for research reactors - CERCA) and BNF no. 98 (fabrication of fuel assemblies for nuclear power reactors). In July 2018, the plant of SOMANU (Société de Maintenance Nucléaire), within Framatome's Installed Base Business Unit, changed from the BNF regime to that of facilities classified for environmental protection (ICPE).

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EDF I Reference Document 2018