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RESEARCH AND DEVELOPMENT PROGRAMS, PATENTS AND LICENSES

11

11.1 Research and Development

11.1.4.

FUTURE DIRECTIONS IN TECHNOLOGY

The group’s research and development programs focus on developing competitive

and reliable power generation technologies with lowCO

2

emissions whichmeet our

customers’ requirements. The programs’ main goals are to continuously improve

nuclear safety, to reduce capital costs and operating costs, and to minimize

environmental impacts. They include means for responsible waste management,

natural resource conservation and the development of future generations of

technologies in the nuclear energy field.

A summary of 2016 research and development projects and results is presented

below.

R&D ACTIVITIES IN THE FUEL CYCLE

R&D activities in mining

R&D in the mining operations covers the four key areas of geological prospecting,

mining techniques, ore processing, and the post-mining period and the environment.

In ore processing, for example, R&D covers all of the techniques that AREVA uses

for dynamic ore processing, heap leaching and in-situ leaching. A significant share

of the research and innovation expenditure was also devoted to mining operations

using the in situ recovery method (ISR).

The mining business also carries out research in partnership with research

organizations and other companies to assess the technical feasibility of extracting

uranium from so-called “unconventional” resources, such as phosphates. The

economic recovery of metals and rare earths as byproducts of uranium ore is

another area for research.

Mineral exploration and outlook

AREVA continued its mineral exploration efforts in 2016. However, due to

deteriorating market conditions, AREVA will concentrate on targets with the most

potential over the next few years.

NEAR TERM

The first action items are to intensify development work for active mining sites,

conduct exploration for projects under development, and plan new exploration

campaigns in uranium-rich provinces identified by the group.

In addition to Canada, particularly the Athabasca basin, a historical uranium-

producing region that is still among the most promising, AREVA is pursuing

exploration programs in countries in which the group is a producer (Canada, Niger

and Kazakhstan) as well as in Mongolia and Gabon.

MEDIUM AND LONG TERMS

Joint teams of geologists, mining engineers, chemists and economists are working

on selecting, preparing and developing emerging and previously identified projects,

particularly in Africa, North America and Central Asia. These projects will be

launched when the technical, economic and regulatory conditions are right.

R&D activities in the front end

Research and development efforts in the front end of the fuel cycle concentrate in

particular on upgrading industrial tools in the conversion and enrichment operations

while improving safety and productivity and reducing the environmental impacts

of the processes.

Development and upgrading of production resources

Natural uranium conversion facilities around the world that have been operating for

several decades will probably see their maintenance costs increase over the short

term and experience availability problems.

To guarantee conversion services to its current and future customers under

strengthened regulatory conditions, AREVA invested in a new plant, Comurhex II.

At the Malvési site, following the startup of the new Isoflash denitration process

last year, startup of all of the new Comurhex II units was completed. In addition,

industrial-scale experiments on effluent volume reduction are in progress.

R&D in the field of conversion also concerns the development of a new process

that would eliminate the nitric dissolution and solvent purification stages. Such a

process would offer significant advantages in terms of environmental footprint.

In the field of fluorine gas production, development efforts are focusing on improving

electrolyzer productivity and on tools to better monitor their operation.

To meet the need to upgrade the cylinder maintenance facility, a new washing

process is under development.

In connection with the Enrichment Technology Company (ETC), the AREVA-Urenco

joint venture, new improvements to the centrifugation enrichment technology are

gradually being integrated into the plants.

R&D activities in the back end

R&D activities in recycling

DEVELOPING SUSTAINABLE SOLUTIONS FOR FUEL TREATMENT AND RECYCLING

Supporting and adapting production resources

The la Hague industrial platform consisting of the la Hague and MELOX plants

is the culmination of more than 30 years of industrial research and development.

It attains the highest levels of performance of treatment and recycling facilities

worldwide. Research and development programs are defined based on the design

and daily operating experience of these plants, with the goal of constantly improving

performance, such as the flexibility of this platform, and harvesting industrial

experience for international contracts.

R&D follows four major thrusts:

1) Support to the la Hague and MELOX plants to increase

operating flexibility

Programs are being conducted to anticipate plant aging (corrosion, plugging),

meet new post-Fukushima regulatory requirements, and optimize intervention

means for hostile environments in order to increase the effective production time

of the plants. The R&D programs have enabled new preventive rinsing procedures

for head-end equipment at the la Hague plant which are appreciably faster and

more efficient that previous procedures and are now routinely implemented at both

plants. Ongoing efforts seek to optimize rinsing operations in other facilities and

to increase availability.

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2016 AREVA

REFERENCE DOCUMENT