Areva - Reference Document 2016

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BUSINESS OVERVIEW

6.4 Operations

Recycling of uranium from used fuel treatment After a reactor residence time of nearly four years, uranium still represents approximately 95% of the used nuclear fuel’s content. The uranium is recovered through treatment operations performed at the AREVA la Hague plant (see Section 6.4.4.1. Recycling ) and is shipped in the form of liquid uranyl nitrate for chemical conversion into a stable oxide powder. Uranium from used fuel treatment (reprocessed uranium, or RepU) may then be reconverted into uraniumhexafluoride and re-enriched for reuse in the fabrication of new fuel, in which case it is called enriched recycled uranium (ERU). Other fluorine derivatives The know-howneeded for conversion, particularly in the field of uraniumfluorination, has served to develop fluorination operations such as the production of chlorine trifluoride, used to clean enrichment barriers from the Eurodif plant, which was shut down permanently in 2012. Human and industrial resources The operations in the Front End of the fuel cycle (Chemistry and Enrichment) are split between two industrial sites in France, the Malvési site and the integrated Tricastin platform: UF 4 is produced by the plant at the AREVA NC Malvési site (annual capacity: approximately 14,000 metric tons); UF 6 is produced by the plant at the AREVA NC Tricastin site (annual capacity: approximately 14,000 metric tons); UF 6 is enriched by the Georges Besse II plant of Société d’Enrichissement du Tricastin (SET) at the Tricastin site (annual capacity: 7.5 million SWU); p depleted uranium is defluorinated in the W Plant at the Tricastin site (annual capacity: approximately 13,000 metric tons); p uranyl nitrate is converted into oxide in the TU5 facility at the Tricastin site (annual capacity: approximately 1,250 metric tons); p the integrated Tricastin platform also pools all of the resources for logistics, laboratory, waste and effluent treatment, and equipment repair in the Department of Industrial Services, serving all of the site’s plants more efficiently and in a more cost-effective manner. On the financial level, SET is wholly owned by SET Holding. The majority of SET Holding is owned by AREVA NC (subsidiary of New AREVA Holding); two partners also hold an interest totaling 5% of the capital, i.e. 2.5% for Korea Hydro & Nuclear Co. Ltd (KHNP) and 2.5% for Japan France Enrichment Investing (JFEI). AREVA holds a 50% interest in the Enrichment Technology Company (ETC) alongside Urenco. ETCmanufactures the centrifuges used for uraniumenrichment. Customers In 2016, AREVA made deliveries to more than 35 customers across the globe, mostly in Europe, Asia and the United States. The number and volume of transactions remained stable in relation to 2015, but the transaction volume was distinctly lower than pre-Fukushima volumes, in view of the already high level of coverage of utility requirements. The enrichment market is structured aroundmulti-year commitments. The backlog for enrichment operations represents more than 40 utility customers, primarily in the United States, Europe and Asia, corresponding to the supply of an average of about 60 reactors worldwide each year. p p p Relations with customers and suppliers

At the same time, the PRISME program, designed to reduce the remaining radioactivity in Eurodif’s gaseous diffusion enrichment plant in preparation for its dismantling, continues according to the projected schedule and will be completed at the end of 2016. The most critical phase, consisting of removing the majority of the uranium present, was completed in October 2015. At the same time, AREVA filed the application for a dismantling permit at the end of March 2015. Submittals are still beingmade, with the public hearing scheduled to start inmid-January 2017.

CENTRIFUGATION CONCEPT

Feed

Enriched uranium

Depleted uranium

238 U F 6 235 U F 6

Source:AREVA. The centrifugation process takes advantage of the difference in the atomic weight of 235 U and 238 U to separate those two isotopes in the UF 6 . The centrifugal force concentrates the heaviest particles at the cylinder walls, creating isotopic separation. The gas enriched in the lighter isotope, located closer to the center of the bowl, flows towards the top of the machine, while the gas with the heavier isotope flows towards the bottom. The enriched and depleted products are recovered at either end of the machine. Conversion of depleted uranium hexafluoride (depleted UF 6 ) into an oxide Uranium enrichment generates uranium hexafluoride (UF 6 ) depleted in the uranium-235 isotope. This depleted uranium is converted into a stable, insoluble, non-corrosive uranium oxide which can be safely stored pending reuse, either in its depleted state or after a new enrichment stage. Very few defluorination facilities in the world are able to convert depleted uranium hexafluoride into an oxide on a production scale. The conversion of depleted uranium hexafluoride into an oxide generates a byproduct: an ultra-pure, aqueous, 70% hydrofluoric acid, which is marketed. AREVA earns a return from its internationally recognized expertise in depleted uranium defluorination through technology sales agreements with world-class companies. AREVA’s know-how enables customers to store this reusable material safely and to produce hydrofluoric acid that can be marketed to the chemical industry. AREVA’s know-how led to the signature of contracts with Tenex and Urenco for the sale and installation of defluorination lines.

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2016 AREVA REFERENCE DOCUMENT