Reliability of supplies is based on full compliance with applicable legislation (Russian, international, that of the country concerned) in the sphere of peaceful use of nuclear energy, provision of nuclear and radiation safety (NRS), as well as other issues related to FA life cycle, components of reactor core, nuclear grade products and component parts.
Reliability of supplies depends largely on industrial and human capital of the Company, management system that allows to coordinate operation of subsidiary enterprises of the Fuel Company and its subcontractors for proper and complete performance of contractual obligations.
Official representative of ITER (International Thermonuclear Experimental Reactor) project (France)
Construction of ITER complex in Cadarache research centre in the south of France (60 km from Marseilles) is on fast forward, the foundation was laid and tokamak area was prepared. Commissioning schedule and final date of first plasma obtaining will be approved in June 2015. Superconductor material production at Chepetsky Mechanical Plant is under constant control and by the end of 2014 all the results shall be definitely obtained.
Director General, Paks NPP CJSC (MVM, Hungary)
TVEL FC has supplied nuclear fuel to Paks NPP from the moment of the first unit commissioning in 1982. Long-term running on nuclear fuel produced by Public Joint stock company “MASHINOSTROITELNY ZAVOD” (PJSC “MSZ”) gives us good reasons to declare: quality and safety of Russian fuel meets the most strict requirements.
Paks NPP through MVM is an important member of electric power market and is interested in permanent power performance enhancement with due regard to new challenges. JSC “TVEL”, is both reliable supplier of top quality nuclear fuel and proven partner in its further improvement. Plant energy extension by 500 MWe may serve a good, yet not the only, example.
Existing cooperation between MVM CJSC Paks NPP and JSC “TVEL” makes it possible to settle arising problems as soon as possible. Scopes and schedules of supplies are agreed within the set time frames; and JSC “TVEL” fulfills its contractual obligations. We may represent and warrant that TVEL always strives to meet the expectations of its partners. Even in conditions unfavourable for transit supplies. NPP in proper time received new FA for test operations during transition to a 15-month fuel cycle. This was preceeded by significant work of specialists of Paks NPP and JSC “TVEL” on development and implementation of new alternative route of fuel delivery to the plant. In a similar timely manner specialists of Paks NPP, JSC “TVEL” and PJSC “MSZ” settle all technical issues.
In October 2014 transition of Paks NPP 3d unit to a 15-month fuel cycle has begun. In conformity with requirements of the Hungarian Nuclear Regulator, 12 new second generation fuel pellets with 4,7% enrichment were loaded in power reactor core of the third unit. Measurements made in the course of their operation showed good compliance with design values both in general load characteristics, and in new-type fuel cartridges. After achievement of the rated power the, unit with new-type cartridges is operated without any problems.
Acting Director General of CJSC “Aykakan Atomayin Electrakayan” (Republic of Armenia)
“Close and mutually beneficial economic relations were always intrinsic to Russian and Armenian nuclear experts. Russian Federation rendered invaluable assistance in recommissioning of power unit No. 2, and assurance of its safe, reliable and efficient operation. During all years of its operation, Armenian NPP has been using Russian nuclear fuel, and it proved to be the best. I hope we will operate the same top quality fuel in future.
Armenian NPP was to operate till 2016, but Russia and Armenia had come to an agreement on implementation of a project on current NPP unit life extension for 10 years, till 2026. Besides, construction of a new Armenian NPP unit is at the planning stage. Such projects create favourable prospects for enhancing cooperation between CJSC AAEK and JSC “TVEL”. First of all, it is nuclear fuel supply for existing unit to the end of its lifecycle, and fuel supply of a new power unit”.
Director of the Energy Research Centre of Department of Mechanical Engineering, the Czech Technical University
Currently six Czech power and three research reactors run on fuel produced by JSC “TVEL”. The Company renders services in all segments of nuclear fuel cycle and has the world’s biggest separative powers.
Czech Republic has a 60-year long experience of cooperation with Soviet and Russian nuclear technologies. Many projects in the sphere of nuclear power engineering and R&D, that were implemented in the Czech Republic, are based on Russian technologies. The Czech government has not yet approved construction of new nuclear reactors, that’s why it is difficult to forecast whether the scope of such projects would increase or reduce, but it is a matter of fact that they won’t terminate”.
Representative of Kozloduy Nuclear Power Plant (Bulgaria), Chief Expert of Nuclear Fuel Cycle
“Zero failure” project exists since 2012. Memorandum on united actions to reach zero level of nuclear fuel failure has been signed in a five-party format. Project participants are JSC ČEZ (Czech Republic), State Enterprise National Nuclear Energy Generating Company “Energoatom”, Kozloduy Nuclear Power Plant (Bulgaria), Rosenergoatom and JSC “TVEL”.
As a party to this project, we consider it effective, since manufacturer and operating company indices of fuel failure trend to zero. Our plant has 2 units VVER-1000 and for the period from 2003 to 2013 only one failure of nearly 800 assemblies, made by JSC NCCP, was registered. That’s why we can safely say that we have reached practically zero level of failure. The plant manufactures top quality products, on a regular basis we conduct audit, accept fuel. We strongly believe that we should strive to avoid any defects of fuel. For our part, we do our best to better use the fuel”.
National Centre for Nuclear Research, Poland
“Our cooperation with Russia has been lasting for more than 50 years. First fuel supplies for research reactors were made early in 1960-s for the first Polish reactor “Eva”.
The only working research reactor in Poland, Maria, which was put into operation in 1974, was named after distinguished Polish scientist, two-time Nobel prize winner Marie Skłodowska-Curie.
Our Russian colleagues developed design, and we loaded in the reactor core two experimental FA in January, 2013. They work fine. I would like to note, that Russian technologies assure top quality of produced fuel”.
According to the Contracts, the Fuel Company is ultimately responsible to the Customer for all subcontractors engaged. In this connection the Company has built a system of preliminary assessment of suppliers and subcontractors of design services, fuel fabrication, transportation, financial services, etc. Analysis is carried out on availability of international and Russian licences and permits for activity, experience and qualification, quality management system. Every subcontractor shall develop the Quality Assurance Programs and the Procedure of Interaction under every contract to guarantee compliance with the contractual terms.
To assure reliable supplies, the Company shall develop, and if necessary, implement alternative routes of nuclear fuel delivery. For instance, in 2014 nuclear fuel supplies to Slovakia and Hungary for the first time were performed by air, escaping the territory of Ukraine.
In 2015 the Company plans to start preparation for certification of supply chain security management system according to requirements of ISO 28000:2007.
The main mechanisms of customer adaptation at the stage of contractual obligations conclusion and discharge:
This systematic customer-oriented work of the Company results in no-claim and persistently high customer satisfaction index (for more details please refer to Section “Quality Management”).
TVEL FC annually sums up the experience of all power units of Russian reactors, built in Russia and abroad, and submits technical reports to the consumers of its products. Partners also share their experience of fuel operation at regular technical seminars held by TVEL FC, WANO, IAEA.
Despite the Fukushima meltdown in 2011 that had affected the plans of a number of countries for commissioning of new nuclear power-generating facilities, nuclear industry is still an integral part of the global power sector.
The international market of nuclear power generation is expected to grow with China, India, South-East Asia (Vietnam), Middle East (Saudi Arabia, the United Arab Emirates) and Africa (the Republic of South Africa). The European market will remain stable mainly by replacing the outdated decommissioned facilities with the new ones. The U.S. market is now being flooded by affordable shale gas energy carriers, causing the active expansion of the share of gas-fired power plants. According to optimistic scenario, the U.S. nuclear power sector will retain its share, or will start shrinking under the opposite scenario.
According to the forecasts, the capacity of nuclear power market will approach 400 GW by 2016.
Highlights on the global uranium conversion and enrichment markets in 2014:
The price for SWU commenced its decline in 2011 and continued in 2014. By the end of the reporting period it dropped to USD 88 per SWU under the long-term contracts. According to the updated estimates the price will stop falling by the year 2016 and start growing slowly again.
Highlights on the market of nuclear fuel fabrication in 2014:
Pilot-production operation of new TVS-KVADRAT and GAIA assemblies demonstrates the NPP world operators’ strive for optimization of fuel performance characteristics.
The Fuel Company boasts a number of properties indicative of its long-term sustainability in conditions of increasing competition on international market of FE NFC products and services.
Availability of subsidiaries engaged in separation-sublimation and fabrication processing stages makes it possible to offer complete delivery of products and services. This contributes to flexible contract pricing and optimized transport logistics. With a number of enterprises in each FE NFC cycle, the Company is able to make highly reliable supplies.
The Fuel Company is sufficiently competent to supply fuel for reactors designed in Russia, light-water western-design reactors (PWR and BWR), and components for PHWR abroad.
The Company successfully manufactures nuclear fuel from reprocessed uranium in compliance with European regulators requirements concerning manufacture technology and the products.
In 2014 JSC “TVEL” continued active participation in preparation and coordination of draft international agreements on cooperation in the sphere of peaceful uses of nuclear energy. To promote JSC “TVEL” interests within frameworks of international cooperation, core-business departments participated in drafting of a number of intergovernmental and interdepartmental agreements, with Hungary, Finland, Argentine, South-African Republic:
In 2014 the company continued cooperation with CNEIC (China), JSC NAC “Kazatomprom” (Kazakhstan), ČEZ, a.s. (Czech Republic), AREVA (France), State Enterprise National Nuclear Energy Generating Company “Energoatom” (Ukraine), Tractebel (Belgium) and many other international partners, established legal and contractual basis for the development of international cooperation with the USA. The company actively cooperates with its international partners in TVS-KVADRAT project.
At the present time the legal base is provided for interaction with all international partners.
Main Foreign Economic Events of TVEL FC in 2014:
|Cooperation with AREVA||JSC “TVEL” continues its cooperation with AREVA concerning production by PJSC “MSZ” of nuclear fuel and components from regenerated uranium using AREVA technologies for European NPP with PWR and BWR reactors. During the operation of FA made by PJSC “MSZ” under the contract with AREVA NP, no loss of containment has ever been registered|
|Promotion of nuclear fuel cycle components in the world markets.||Memorandum of Understanding was signed with European partner within the context of JSC “TVEL” expansion to international markets of nuclear fuel cycle components in 2014, specific directions of cooperation were determined, and further actions of JSC “TVEL” were agreed with the companies from some European, Asian and Latin American countries|
|Centre for Technology Services "ALVEL a.s." JSC Joint Venture||Signing of the Contract between JSC “TVEL” and ALVEL a.s., delivery of zirconium produce to Czech Republic|
|Uranium Enrichment Centre Project||Implementation of Russian-Kazakhstan Project “Uranium Enrichment Centre” (UEC). Joint venture completed discharge of its delivery obligations of 5 mln SWU, thus having reached its designed capacity|
|Project "Fabrication Plant in Ukraine"||
Implementation of the project for the establishment of nuclear fuel production facilities in Ukraine based on Russian technologies. JSC “TVEL” performed its financial obligations in a timely and proper manner. Subsidiary companies of the Fuel Company manufactured technological equipment for Stage 1 of facility, preliminary acceptance was held with participation of the customer - Ukrainian-Russian joint venture.
Nearly 80% of preparatory works were completed at construction site in Kirovograd region, project participants came close to the choice of principal contractor and main construction work commencement.
The Cabinet of Ukraine did not considered and did not approved design and estimate documentation, the Ukrainian party failed to finance the project. The above factors actually resulted in freezing of the project.
Nevertheless, JSC “TVEL” is ready to complete the project and still considers it strategically important for both parties.
Presently, JSC “TVEL” looks forward for action-oriented proposals from its Ukrainian partners on further steps to be made for implementation of the project.
In conformity with Federal Law of the Russian Federation "On Use of Nuclear Energy" (d/d November 21, 1995 No. 170-FZ), International activities of the Fuel Company is licensed by Federal Service for Ecological, Technological and Atomic Supervision (Rostekhnadzor) of the Russian Federation. Nuclear produce export is regulated by decree of the Government of the Russian Federation No. 973 d/d December 15, 2000, Federal Law d/d July 18, 1999 No. 183-FZ d/d, the President's Order No. 312 d/d March 27, 1992 and other Russian legislative norms. Export license for nuclear produce export is issued by Federal Service for Export Control of the Russian Federation after agreement with a number of ministries and agencies, it is controlled by customs services at Russian border crossing. It is an express condition for nuclear produce export to have approval of competent agency of importing state - ultimate user - about peaceful use of obtained produce and obligatory control in their country of principles of the Treaty on the Non-Proliferation of Nuclear Weapons while using Russian dual-use products.
To comply with Russian legislation in the sphere of export control of export and import of produce, from 2007 to 2014 inclusive, the following was obtained from Federal Service for Export Control of Russia:
General licenses for nuclear products export allow to plan organization of products transportation in contractual terms.
One of conditions of the General License is existence is availability of the State Accreditation Certificate in JSC "TVEL". The permanent Commission for Export Control and the Internal Program for Export Control within its competence coordinates and regulates foreign economic and international scientific and technological activities of JSC "TVEL".
To control compliance of prescribed procedure of export-import operations licensing, the Permanent Commission for Export Control shall inspect:
Following the examination of draft contracts, agreements, arrangements the Permanent Commission for Export Control shall negotiate the approval of possibility of export/import, and determines the necessity of acquisition of license or other permit for the above.
International Objectives 2015 and Mid-term Strategic Plans:
Within the strategic objective aimed at growth in the markets of front end of NFC, there are provided both retention of current position owing to unconditional performance of contractual obligations, and development of relations with new consumers. The Company implements a number of projects for long-term development of nuclear technologies, including project of NFC closure on the basis of MNUP-fuel fabrication modules development and spent nuclear fuel reprocessing (SNF) for reactor facility BREST-OD-300.
To meet objectives of Second Core Business Development in terms of new market challenges, the Company organizes production in related spheres, successfully using its competences in design and production of high-quality prospective products with unique consumer properties. Human capital of the Fuel Company enterprises is a key resource for preservation of global competitiveness in the world market. The projects of the Second Core that are provided by the Fuel Company strategy shall guarantee exponential growth of the company earnings in 2030 perspective with consistently high labor output [ i ].
In the context of the declared course for global efficiency improvement of Russian companies, TVEL FC successfully implements proposals from the employees on improvements in industry and in offices based on ROSATOM production system principles [ i ].
To assure social and environmental acceptability, TVEL FC strategy stipulates:
FC strategy is oriented at achievements of the following indicators by the year 2030:
|Growth on NFC markets||Creation of conceptually new fuels||Nuclear fuel for reactor facility BREST-OD-300, reactor facility BN-800, REMIX||SC "SGChE" successfully performed acceptance tests of experimental fuel assembly for reactor BREST-300||Development Prospects|
|Creation of pilot-demonstratiotn energy complex.||Construction of reactor facility BREST-OD-300, modules of MNUP-fuel fabrication and SNF reprocessing||Design documentation for the fabrication module and start-up complex of MNUP-fuel refabrication was successfuly reviewed by regulating authorities.|
|MOX-fuel production||MOX-fuel production design by FSUE MCP for reactor facility BN-800||Participation in commissioning of MOX-fuel production|
|TVS-KVADRAT||Entry into the market of nuclear fuel for western design reactors||Supply and commencement of fuel pilot lot test operation in PWR reactor in the territory of a European country||Market Development|
|Creation of fuel with new consumer properties||VVER-1000: TVSA-12, TVS–4A, TVS–4M
|Signing of the contract on development and operation of improved nuclear fuel, Start of production and commencement of operation of nuclear fuel with new consumer properties on Russian and foreign NPP||Market Retention|
|Second Business Core Development||New Energy||Entry into the market of energy storage systems and fuel elements||Electrochemical Converter Plant fulfilled the order for multipurpose power source design;
ZEP LLC manufactured and assembled for test operation at gas transportation infrastructure facility a test model of independent current source;
PJSC NCCP built a line for lithium-7 hydroxide monohydrate production
|Entry into new markets|
|New businesses||Expansion at Russian metallurgy market and entry into international markets;
Expansion at chemical machinery and products market;
Anchoring at precision engineering market
|Manufacture and supply of superconducting strands for ITER Project;
SC CMP mastered technologically sophisticated titanium production, and organized industrial small-scale production of calcium wire
|Efficiency improvement||ROSATOM production system, efficiency improvement projects||Lead time decline, increase in labor efficiency, manufacture cost reduction, achievement of optimal scale and topology||Gaining economic effect from implementation of ROSATOM Production System and implementation of employees’ suggestions for process improvement;
Concentration of conversion process stage at SC “SGChE”;
PJSC “MSZ” – organization of production on pull system principles;
PJSC “KMP” - gas centrifuge components manufacture cost reduction;
PJSC “KMP” – production flow forming in conformity with standard line criteria with 100% coverage;
PJSC NCCP – TVS-KVADRAT manufacture cost reduction;
Optimization of supply process of fluorohydrogen acid produced by SC “PA ECP”, at SC CMP
|Efficiency Energy||Optimization of power resources consumption by FC enterprises||Heat and electrical power consumption reduction
Commissioning of ROSATOM State Corporation project on implementation of automated energy-saving control system at enterprises of TVEL FC
|Social and environmental acceptability||Liquidation of "nuclear heritage"||Activities at the sites of TVEL FC devoted to nuclear radiation safety (NRS)||Activites at the sites of TVEL FC included in the list of FTP NRS 2008-2015 and in companies’ own lists||Maintenance of environmental security and social acceptability in the cities of TVEL FC presence|
|Formation and preservation of social cohesion environment in the regions of presence of TVEL FC||Attraction of private investments
Growth of business support projects
Growth of tax proceeds to budget system
Social infrastructure development in the cities of TVEL FC presence
|Formulation of CATU Integrated Development Planning (IDP).
Entrepreneurship support and development funds in CATU
Sport objects and social infrastructure facilities were built in the cities of FC presence