UK Cleanup Market Overview

1. UK Cleanup Market Overview • A Strategic approach to Cleanup & Hazard ReductionNov 2010 Marcus Mackay marcus@mercurystone.co.uk mercury stone

2. Purpose • Provide an overview of the UK Civil Nuclear Estate • Explore the UK Nuclear Decommissioning Authority (NDA) strategy which is driving UK cleanup and the market opportunity • Describe the UK site restoration context & strategy mercury stone

3. UK Cleanup Overview The Nuclear Decommissioning Authority was established in 2005 with a remit to clean up the civil public sector nuclear legacy Sites and facilities built from 1940s onwards Annual funding of ~£2.8Bn ($4+Bn) Head Office based in North West England Total staffing circa 18,500 plus contractors mercury stone

4. The UK legacy - Sellafield mercury stone

5. The UK legacy – Magnox Reactors mercury stone

6. The UK legacy - Research Facilities Dounreay Harwell Dounreay Winfrith mercury stone

7. New Sellafield product store under construction The NDA mission covers a diverse range of complex activities as well as cleanup Demolition of towers at Chapelcross Chapelcross begins Reactor 3 defuelling Trawsfynydd ILW store opens Dounreay Puma Cell cleared out and cleaned up VRR back overseas mercury stone

8. Progress since 2005 • First UK-wide strategy 2006, five yearly review underway • Understanding the nature of the legacy, the interactions and the scale of the Nuclear Liability Estimate (circa £70Bn) • Changed the architecture of the industry, moving 18,000 workforce under private sector management, replacing two monoliths with six Site Licensed Companies (SLCs) • Successfully competed and sold sites, placing them under private sector management • Real focus on high hazards & programme delivery mercury stone

9. The NDA's Strategic Approach isfocussing effort on priority activities NDA activities are grouped under six strategic themes that translate into key programmes of work that must be delivered in the short to medium term. Reduce hazards and liability across our estate (eg legacy ponds & silos) Ensure fuel from 1st and 2nd generation is reprocessed and managed in a safe and secure way Implement storage and disposal for LLW, ILW and HLW inc. Geological Disposal Facility (GDF) Deal with plutonium and uranium in a safe and secure way Maximise commercial value from our assets SITE RESTORATION SPENT FUELS WASTE MANAGEMENT NUCLEAR MATERIALS BUSINESS OPTIMISATION CRITICAL ENABLERS Build an effective industry (supply chain, skills, R&D, competition, socio-economic) The NDA Strategy was first published in 2006. Consultation on Strategy 2 started in Sept 2010, for further information: http://www.nda.gov.uk/strategy/ mercury stone

10. Current UK expenditure breakdown Estate wide expenditure broken down by strategic theme. This is indicative and based on previous years. 53% of spend is on Sellafield mercury stone

11. For more information download the NDA Business Plan 2010-13 www.nda.gov.uk/loader.cfm?csModule=security/getfile&pageid=38406 The NDA Business Plan 2010-13…a top level guide to priorities for delivery • Defines the NDA Strategic Objectives • Provides an overview of Costs & Funding • Maps Activities against Strategic Themeseg. Site Restoration - £863m in 2010/11 Spent Fuels - £439m in 2010/11 etc… • Activities in some cases specific…eg. “Complete the asbestos stripping from 8 of 16heat exchangers at Chapelcross”… in some cases general…eg. “Continue Preparation of retrieval of legacy waste” • Further Detail are held in - Site Life Time Plans,- 3 year detailed Operating Plans - Procurement Plans mercury stone

12. Site Restoration - Context Restoration of the UK’s nuclear legacy presents a major and time critical challenge; in 2009/10 the discounted future cost estimate amounts to £40.8 billion • Legacy plants dating from late 1940’s and 1950’s • Large quantities of old corroding radioactive waste • Degrading infrastructure • Contaminated ground and / or groundwater at every NDA site as a result of various land uses (not all nuclear) • Volume of ground estimated to be radioactively contaminated exceeds (~x4) current UK low level waste disposal capacity mercury stone

13. Site Restoration - Context • Site Restoration covers three key activities required to deliver a site or facility through to a planned Site End State • Decommissioning and Clean-Up • Cleaning out, dismantling and demolishing redundant facilities (from cessation of operations to demolition) • Land Quality Management • Managing contaminated ground and groundwater • Site End States • Providing credible objectives for the restoration of each site; defining the physical condition of a site when NDA has completed its mission • Takes account of Non NDA Liabilities located on NDA sites mercury stone

14. Site Restoration - Context (Site Restoration is the driving strategy that other strategies (inc. Integrated Waste Management) support) Operations Decommissioning and Clean-up Site End States Land & Property Management Dedesignate Divest Next societal use Land Quality Management Interim States mercury stone

15. Focus on reducing risks to people and the environment, while restoring each site as soon as reasonably practicable to a condition suitable for its next planned use Site restoration is considered on a case-specific basis, taking account of a range of relevant factors Intolerable risks – the NDA will take urgent continuous action to reduce them to at least a tolerable level Less significant risks – the NDA will take greater account of other factors Act proportionately to ensure net level of risk does not increase in the long-term Consider full lifecycle impacts on people & environment to avoid compromising future generations – ie. Adopt sustainable solutions Site Restoration Site Restoration Objective: To restore NDA designated sites and release them for other uses mercury stone

16. Key Messages • The UK nuclear landscape has transformed over the last 5 years, with Nuclear New Build providing new challenges & end-state possibilities • Joined up Strategy and Business Plans are key to:- Quantifying the liability- Demonstrating Credibility & Securing Funding- Enabling effective prioritisation • The focus on High Hazards requires flexible approach, including deferred decommissioning and cleanup of lower risk facilities mercury stone

17. Close any questions Marcus Mackay marcus@mercurystone.co.uk mercury stone