Nucnet 1st March 2018, The Nuclear Decommissioning Authority (NDA) completely failed in both the procurement and management of a contract to clean up the UK’s Magnox
nuclear reactor and research sites, a report by the Public Accounts
Committee says.
The report, released on 28 February 2018, says this
disrupted an important component of vital nuclear decommissioning work and
cost the taxpayer upwards of £122m (€137m, $167m). The £6.2bn contract
— one of the largest awarded by the UK government — was to dismantle 12
first-generation Magnox nuclear sites.
It was awarded to Cavendish Fluor Partnership, a joint venture between UK-based Babcock International and
Fluor of the US. The committee, which oversees government expenditure,
said: “The NDA ran an overly complex procurement process, resulting in it
awarding the contract to the wrong bidder, and subsequently settling legal
claims from a losing consortium to the tune of nearly £100m.”
The committee also said the NDA, a public body established in 2004 to oversee
the clean-up of the UK’s nuclear legacy, “drastically
under-estimated” the scale of the work needed to decommission the sites
at the time it let the contract – a failure which ultimately led to the
termination of the Magnox contract nine years early.
The NDA did not have sufficient capability to manage the procurement or the complex process of
resolving differences between what the contractor was told to expect on the
sites and what it actually found, the committee concluded.
The NDA will now have to spend even more effort and money to find a suitable way of managing
these sites after the contract comes to an official end in September 2019,
the committee said. The NDA may have further wasted taxpayers’ money by
paying its previous contractor for work that was not done. The NDA cannot
fully account for £500m of the £2.2bn increase in the cost of the
contract between September 2014 and March 2017. In particular, it does not
know whether the £500m cost increase was due to its incorrect assumptions
about the state of the sites when it let the contract or underperformance
by the previous contractor. https://www.nucnet.org/all-the-news/2018/03/01/accounts-committee-says-nda-completely-failed-with-6-2-billion-uk-magnox-contract
Reforging its core business to return to competitiveness after record losses of €4.83 billion in 2014, French nuclear firm AREVA has split its five operational business units and rebranded them—again. All its assets related to the design and manufacture of nuclear reactors and equipment, fuel design and supply, and services to existing reactors now fall under Framatome, which until January 4 was known as New NP. Operations related to the nuclear fuel cycle will be undertaken by Orano, which until January 23 was known as NewCo.
Creation of the AREVA group itself was an overhaul effort. The company was formed in 2001 with the merger of Framatome, Cogema, a nuclear business of German giant Siemens, and French propulsion and research reactor arm Technicatome. Framatome—short for Franco-Américaine de Constructions Atomiques—was created in 1958 by Schneider, Merlin Gerin, and Westinghouse Electric to exploit the emerging pressurized water reactor (PWR) market.
. By 1975, the company had become the sole manufacturer of nuclear power plants in France, equipping French state-owned utility EDF with 58 PWRs, and gradually taking on more projects overseas, building reactors like South Africa’s Koeberg, South Korea’s Ulchin, and China’s Daya Bay and Ling-Ao. In 1989, Framatome and Siemens created a joint company called Nuclear Power International to develop the EPR, a third-generation reactor that complied with both French and German nuclear regulations. The companies eventually merged in 2001, retiring the Framatome name and giving birth to AREVA.
One of the company’s most prominent contract wins came in 2003 from Finnish utility Teollisuuden Voima Oy (TVO) for construction of the world’s first EPR, Olkiluoto 3, in southern Finland. In 2007, AREVA also signed a contract with EDF for an EPR in Flamanville, France, and separately with Taishan Nuclear Power Co., a joint venture 70% held by China Guangdong Nuclear Power Holding Corp. and 30% by EDF. Two years later, Siemens withdrew its capital in Areva NP—AREVA’s specialized nuclear steam supply system arm—citing a “lack of exercising entrepreneurial influence within the joint venture” as the reason behind the move, and transferred its 34% stake to the AREVA group.
But plagued by delays and cost overruns at Olkiluoto 3 (Figure 3) and Flamanville 3, as well as at a research reactor construction project, and financially hemorrhaging from renewable energy contracts, AREVA’s finances began to fall into disarray, reaching record losses in 2014. In 2015, EDF moved to snap up between 51% and 75% of the troubled nuclear giant’s reactor business, encouraged by the French government’s attempts to address a rivalry between the two majority state-owned companies.
In November 2016, AREVA and EDF signed a contract conferring to EDF exclusive control of a new entity—New NP—that oversaw AREVA’s reactor design and equipment manufacturing, fuel design and assemblies manufacturing, and reactor services. Closure of the sale was completed in December 2017, and EDF became the majority owner (holding 75.5% of shares) of New NP, while Mitsubishi Heavy Industries took on 19.5%, and Paris-based international engineering firm Assystem held 5%.
Then in January 2018, the companies rebranded New NP, reviving the Framatome name in a move to harken to its celebrated legacy. Staffed by 14,000 employees worldwide, Framatome today has an “existing global fleet of some 440 reactors representing output of around 390 GWe in 31 countries, and with new nuclear capacity on its way, the nuclear market presents opportunities in the areas of components, fuel, retrofits and services,” the company noted in January.
The name’s luster has this year already been burnished by two significant developments for the company. On January 25, the French Nuclear Safety Authority (Autorité de Sûreté Nucléaire [ASN]) gave Framatome and EDF the green light to resume manufacture of forgings for the French nuclear fleet at its 2006-purchased Le Creusot site (Figure 4), which was taken offline following the French regulator’s 2015 discovery of an anomaly in the composition in certain zones of the Flamanville EPR pressure vessel head and bottom head. In 2016, a quality audit identified “irregularities” in paperwork on nearly 400 plant components produced at the forge since 1965. Preventative measures ordered by ASN stemming from that debacle in December 2016 shut down more than half of France’s reactor fleet, sending contract prices across Europe soaring.
Also, on January 25, Framatome finalized and launched Enfission, a 50-50 joint venture with Lightbridge Corp., to commercialize the U.S. fuel technology developer’s metallic fuel. Lightbridge says that the “seed-and-blanket” design can safely operate at increased power density compared to standard uranium oxide fuel. For Framatome, which provides next-generation fuel assembly designs to more than 100 of about 260 light water reactors around the world, the partnership will strengthen its position in the global fuel market.
As part of restructuring efforts in June 2016, meanwhile, AREVA also created a separate company focused on the nuclear cycle, which it called, simply, “New Company” (NewCo). On January 23, that company was renamed “Orano.” The name is derived from Ouranos, a Greek god who personifies the heavens and was father of the Titans, and who in Roman mythology became “Uranus.” In 1789, German chemist and mineralogist Martin Heinrich Klaproth named his newly discovered rare metallic element “uranium” for the planet Uranus, which had also been recently found.
For Orano, the name is important because it “symbolizes a new start,” said CEO Philippe Knoche in January. “We have big ambitions for Orano, namely for it to become the leader in the production and recycling of nuclear materials, waste management, and dismantling within the next ten years.” Knoche also said, however, that the company’s name is written in lower case because the prospect of rebuilding a profitable operation will be done “with humility.” For now, the company’s operations will bank on reprocessing and nuclear growth in Asia rather than investing in new mines, owing to low prices of uranium, which have slipped 80% over the last decade as the nuclear sector sees a general slowdown.
Telegraph 28th Feb 2018, The Government must share the blame for the bungling of a multi-billion
pound nuclear clean-up contract after failing to protect taxpayers from
spiraling costs, MPs have said.
In a damning report the Public Accounts Committee (PAC) accused the Government of being “culpable” in the
collapse of a contract to clean up Britain’s redundant fleet of Magnox
nuclear reactors. The Nuclear Decommissioning Authority’s £6.1bn deal was
aborted almost a year ago after it bungled how the 14 year contract was
awarded to the Cavendish Fluor Partnership (CFP) formed by Babcock and
Fluor.
The botched award led to a two year High Court legal battle which
effectively put taxpayers on the hook to pay £122m in compensation to
companies who bid for the Magnox work but failed to get it. The
committee’s report blamed the NDA for running “an overly complex
procurement process” which ultimately ended nine years early.
The NDA also drastically under-estimated the scale of the work needed to
decommission the sites at the time it awarded the contract, the report
said. The PAC said the debacle had caused “untold reputational damage” to
the NDA, but it added that the Government must share the blame for
approving the authority’s approach. Geoffrey Clifton-Brown, the
committee’s deputy chair, branded the contract “an appalling piece of
mismanagement and financial waste” which had cost the taxpayer over
£122m. The committee has asked the NDA to update MPs within three months
on its investigation into whether it overpaid its previous contractor and,
if so, how it planned to recover money. https://www.telegraph.co.uk/business/2018/02/28/government-culpable-nuclear-clean-bungle/
Edie 27th Feb 2018, Jeremy Corbyn has pledged that Labour would keep Britain in the EU internal
energy market (IEM) and the Euratom nuclear co-operation treaty. In a
landmark speech setting out his party’s stance on the UK’s future
trading relationships following Brexit, the opposition leader said it was
in Britain’s interests to remain part of Euratom. He said: “We will
want to remain a part of agencies like Euratom, regulating nuclear
materials in energy and health sectors.” The Labour leader also used his
speech to signal Labour will seek continued UK membership of the IEM to
help support the development of the low carbon energy sector. He said
barrier-free trade of low carbon goods is necessary to underpin the growth
of the UK’s low carbon and renewable energy sectors. https://www.edie.net/news/11/Labour-would-keep-Britain-in-EU-internal-energy-market/
Democratic Senator Ed Markey, of Massachusetts, says any deal is “almost certain” to require a non-proliferation accord, known as a “123 agreement,” of the type the United States has previously signed with South Korea and India, and which is designed to prevent the spread of nuclear weapons.
“Previous US efforts to conclude a 123 agreement with Saudi Arabia have been unsuccessful because of its long-standing refusal to commit to foregoing any uranium enrichment or spent-fuel reprocessing on its territory — the so-called… ‘gold standard’ for 123 agreements,” Markey, of the Senate Foreign Relations Committee, said in a letter to Secretary of State Rex Tillerson and Energy Secretary Rick Perry.
AFP on Tuesday obtained a copy of the letter, which is dated February 26.
Riyadh plans to announce at the beginning of March its short list of firms which will bid to build its nuclear reactors.
Besides the US company Westinghouse, Russian, French, Chinese and South Korean firms are in the running.
A nuclear accord between Riyadh and Washington would allow US corporations to export their nuclear technology to Saudi Arabia, while tensions are high surrounding the civil nuclear program of Riyadh’s regional rival Iran.
US President Donald Trump has threatened to tear up a 2015 global pact under which Iran — facing suspicions it was working towards a nuclear bomb — agreed to curb its nuclear program in exchange for a lifting of sanctions.
Both Washington and Riyadh have complained of Iran’s “destabilizing” acts in the Middle East.
Markey says Saudi Arabia’s “unwillingness” to commit to a “gold standard” 123 agreement “is particularly concerning in light of comments made by Saudi officials and members of the royal family suggesting that a nuclear program may be as much for geopolitical purposes as for electricity generation.”
According to several US media reports, Saudi Arabia’s Crown Prince Mohammed bin Salman — the main driver of a more aggressive regional push by the kingdom — is to visit the United States in early March to meet with Trump.
The visit has not been officially confirmed by either country.
Ties between the kingdom and Washington have strengthened since Trump assumed office early last year. His first official trip abroad was to Saudi Arabia, which is trying to diversify its oil-based economy and energy sources.
Preparations for a potential reboot of the licensing process for the Yucca Mountain nuclear waste repository will gather steam this week at the Nuclear Regulatory Commission, even though Congress has not funded the storage project.
Some members of the Board of Public Utilities voiced doubt about a possible investment in a small-scale nuclear power project Wednesday during a meeting with the Department of Public Utilities.
The meeting was a preview of a joint public meeting the board will have about the project with the County Council at 6 p.m. March 6 at the county Municipal Building.
The board was expecting answers about what the risk would be to the county if the project went sour.
The project is proposed and designed by Nuscale and consists of 12 50-megawatt light water, nuclear reactor modules. The units would be installed in Idaho.
The Board of Public Utilities is expected make a decision about whether to invest $500,000 in the project in late March.
BPU member Stephen McLin wanted to know why they haven’t given them more definite answers, since the initial Jan. 25 meeting explaining the project.
“These cost commitments that we’re about ready to make… I think that the board members, I can’t really speak for them, but I think we had it in our mind that we were going to be voting on about $500,000 commitment for the next six months or so, and that was going to keep us in a kind of holding pattern until other costs could be fleshed out,” McLin said. “I’m really starting to question the wisdom of making even that investment based on tonight’s performance, these questions have not even been summarized. Why not?”
Deputy Manager Steve Cummins replied they were aiming for the Board of Public Utilities March 6 meeting.
“We are working very diligently, everybody is, for the March 6 meeting. As I mentioned during our introduction, one of the biggest concerns we heard was about cost, exposure and things like that to the county. So, we put a lot of time in the last couple of weeks on the resolution I talked about that’s going to be now made into a contract. Actually, we’re pretty happy about that. We see it as a huge step in the right direction,” Cummins said.
McLin then asked what happens to the county’s financial risk while it waits for the project to be approved by the Nuclear Regulatory Commission. He said he would like to see those numbers at the March 6 meeting.
“The track record is very ugly… 12- to 15-year timelines from the license submission to approval,” Mclin said. “In my mind, I’m calling it the second step for the county. What kind of commitment are we making as we submit that application. I think that’s what got a lot of people concerned. It would be helpful to see a lot of these costs and options laid out. To see them in black and white would be very helpful.”
Board of Public Utilities member Kathleen Taylor feared cost overruns on the project would drive up the costs of the construction, which would then affect the rate they pay for the power from the plant, which is expected to be between $45 and $65 per kilowatt hour.
“I want to see cost overruns and what caused them,” Taylor said. We need to see it in black and white. That’s the stopper. If they can’t build this plant in three our four years or whatever it’s going to take, then we’re off into Never Never Land. I’d like to see it in black and white.
Utilities Manager Tim Glasco said he would provide her slides NuScale provided, but said it would be up to her to decide “if they’re all wet or if they’re any validity to the claims of what they did different” in other projects.
Cory Bernardi says a nuclear power dump could make us the ‘Saudi Arabia of the south’, news.com.au 26 Feb 18 CORY Bernardi is pushing to reignite a controversial development in South Australia, saying it could make the state the “Saudi Arabia of the south”.
LEADER of the Australian Conservatives party Cori Bernardi is pushing for a nuclear waste dump in South Australia, which he says will transform the state into the economic “Saudi Arabia of the south”.
Speaking at the party’s election launch in South Australia on Sunday, founder and federal Senator Cory Bernardi said he wanted to reopen the debate on an outback nuclear dump.
He called for changes to the law to allow for “all forms of energy production”, including nuclear power, urging authorities to “complete a full rigorous analysis” of the idea.
According to The Advertiser, he claimed the dump would generate up to $6.7 billion in gross state product, allow for $3 billion in annual taxes to be scrapped, and see the state reaping in $445 billion over the next century.
“Imagine that legacy for our children … to draw on in developing this state,” he said. “We would be an economic powerhouse. We would be the strongest state in the Commonwealth.”
Upper House candidate Robert Brokenshire said the party is “committed to looking at all types of energy production including nuclear energy to find the cheapest and most reliable form of energy”.
Labor Premier Jay Weatherill was quick to rule out the suggestion.
“That’s dead,” he said on Sunday. “Labor Party policy has been opposed to a nuclear waste facility in the past and there’s no prospect of changing that in the future.”
Mr Weatherill did not rule out pursuing a High Court case against the Turnbull government if a national nuclear waste dump was to be approved in South Australia, The Australian reported last month.
At the end of last year, Flemish nationalists spoke publicly against the withdrawal of nuclear power endorsed by the Energy Pact project that was designed by the country’s four ministers for energy on the basis of the cost for households and companies. The Plan Office and Professor Johan Albrecht have been asked to evaluate the cost evolution of power in Belgium in the years to come, taking various scenarios into consideration.
The extra cost for households would come to 15 euros plus VAT as of 2025, the planned date for the phasing-out of nuclear power. It includes the producers’ investment in gas power plants, the price of gas necessary for the production of electricity, as well as the federal government’s subsidies for plants. This figure, however, does not take into account the cost of the plants’ dismantlement or the nuclear waste reprocessing, and it only covers the expenses which fall within the federal competence. The support cost for the sustainable, therefore, is not included.
For the companies, the situation will be “slightly more complicated,” according to the minister. Discounts to be discussed with partners of the majority could be granted to companies competing with foreign offers, she indicated.
Mahlobo must accept death knell of Nuclear Deal – Gavin Davis, Politics Web, Gavin Davis | 22 February 2018
DA MP says President must stop the gazetting of Integrated Resource Plan
Nuclear Deal: Ramaphosa must stop the gazetting of the Integrated Resource Plan
22 February 2018
Minister Gigaba’s Budget Speech, which contained no funding for a new nuclear build, should signal the death knell of the nuclear deal.
The time has come for Minister Mahlobo to accept that his attempt to deliver the nuclear deal has failed. With Zuma gone, he has outlasted his usefulness and should be removed from Cabinet without delay.
The Integrated Resource Plan (IRP), that was apparently approved by the Zuma Cabinet in December, left the door open for a new nuclear build. This was despite every credible study rejecting new investment in nuclear as part of the IRP and recommending investment in renewables and gas instead.
We call on President Ramaphosa to put a stop to the gazetting of Mahlobo’s IRP. Instead, Minister Mahlobo should be removed from office and a new Minister appointed to ensure that the new IRP is based on the latest cutting-edge modelling and research……..
https://fr.reuters.com/article/africaTech/idAFL8N1QC7B5 Rédaction Reuters PARIS, Feb 22 (Reuters) – France has no need to build new nuclear reactors in addition to the one currently being assembled in Flamanville, in western France, Environment Minister Nicolas Hulot said on Thursday.
President Emmanuel Macron said last week he would not rule out France building new nuclear reactors to replace state-controlled utility EDF’s ageing reactors.
“For the moment, frankly, there is no need to consider building other nuclear reactors in addition to Flamanville,” Hulot told lawmakers.
Hulot said in November last year that reducing the share of nuclear energy in France’s power mix to 50 percent from 75 percent would probably take until 2030-35, dropping an initial 2025 target date.
Reporting by Simon Carraud; Writing by Matthias Blamont. Editing by Jane Merriman
New Power 22nd Feb 2018, The Office for Nuclear Regulation (ONR) has begun procuring a system to
track nuclear materials in the UK and ensure they are not diverted from
civilian uses, which will be required if, as planned, the UK exits the
Euratom treaty as it leaves the EU.
ONR said it has to develop and deliver a UK State System of Accountancy for and Control of Nuclear Material by 29
March 2019. It will include a Safeguards Information Management and
Reporting System that meets international reporting obligations. Without
the system, ONR said it will not be able to effectively deliver the
necessary nuclear materials accountancy.
It must be ready for parallel running by the end of December 2018 and go live by 29 March 2019. ONR has
published a procurement notice on the government’s digital marketplace
website. It says questions can be asked until 28 February and applications
must be made by midday on 7 March. The contract award is expected on 1 May
and by then the bidder must have security clearance for all personnel
involved. https://www.newpower.info/2018/02/onr-begins-procurement-to-replace-euratom-nuclear-safeguards-system/
Trump floats pay bonus for teachers who carry guns in class, NBC News 22 Feb 18 byALI VITALI WASHINGTON— President Donald Trump expanded on his idea to train and arm some teachers with guns Thursday, suggesting that firearm-adept school staff be given “a little bit of a bonus” for carrying weapons, and promising federal funds for their training.
At a White House discussion of school safety solutions with state and local officials, Trump said “highly adept people…who understand weaponry” could carry guns in schools, estimating that between 10 and 40 percent of teachers could be qualified for such a task. Those who are would undergo “rigorous training,” he said, later adding that he’d consider offering federal money for that effort. Officials “can’t just give a teacher a gun,” he said.
The interior ministry announced the evacuation after it was underway, with scores of police in body armor moving in before daylight to evict activists occupying the zone, backed up by an earthmover.
The plan to store long-life nuclear waste 500 meters below ground in impermeable clay has not yet got government approval and is strongly opposed by local groups and environmentalists.
President Emmanuel Macron’s government is keen to prevent a proliferation of such protester-occupation movements following one that lasted year at a site earmarked for a new airport near Nantes in the west of France – a building plan it dropped last month.
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