annual-and-sustainability-report-2014

Nuclear power decommissioning and radioactive wasteDevelopments during the year | Sustainable productionVattenfall owns and operates nuclear power plants (NPP)in Sweden and Germany. While several of the existingnuclear power plants in Sweden – including Vattenfall’sreactors in Forsmark and Ringhals – are planned toremain in operation for another approximately 30 years,the company’s nuclear power reactors in Germany willbe decommissioned by 2022 at the latest. In GermanyVattenfall owns and operates the non-operational Krümmeland Brunsbüttel NPPs and is also a minority ownerof Stade, which is being decommissioned, and Brokdorf,which is still in operation.Phase-out of nuclear power in GermanyIn December 2010 the German government decided to extend theuseful life of all nuclear plants in Germany. However, this decision wasreversed following the nuclear power plant accident in Fukushima in2011. In its initial reaction to the accident the German governmentimposed a three-month moratorium, and during this time the sevenoldest nuclear reactors had to stay offline, including Vattenfall’sBrunsbüttel and Krümmel reactors. The German Reactor Safety Commission(RSK) reviewed all 17 reactors and evaluated their robustnesswith respect to natural disasters that could affect the plants, stationblackouts and failure of cooling systems, precautionary and emergencymeasures as well as human actions that could affect the plants. Theconclusion was that all of the German reactors were fundamentallysafe and reliable. Despite this safety assurance, the German governmentdecided to revive the previous government’s phase-out plan andclose all of the country’s reactors successively by 2022. As a result,eight of the country’s 17 NPPs (including Krümmel and Brunsbüttel)were shut down immediately, and the remaining nine will be phased outgradually by the end of 2022.Several years will pass between the shutdown and the point intime when dismantling of higher-contaminated or activated plantcomponents can actually start. The aim is for the operational site ofthe nuclear power plants to reach a final state as a green field.Application for decommissioning and dismantlingVattenfall filed an application for decommissioning and dismantlingof Brunsbüttel in November 2012. Currently, documents for a publichearing procedure and the specifications for the licence are beingcompiled. Krümmel is in long-term standstill operation due to legalproceedings. Vattenfall has contested the confiscation of generationrights for Krümmel and has filed the case with the autonomousInternational Center for Settlement of Investment Disputes (ICSID) inWashington D.C. In addition, Vattenfall – like other German nuclearpower companies – has filed a consitutional suit against the Germangovernment for costs and loss of revenue as a result of the Germangovernment’s decision to only after a few months after having grantedextended operating times for the German NPPs, deciding on the immediateclosure or shortening of the operating lifetime for these.Final storage of spent nuclear fuelIn both countries, it is the nuclear power operators’ responsibility to havereliable and satisfactory solutions for handling and interim storage ofradioactive waste as well as the decommissioning process until suchtime that the radioactive waste can be stored in a final repository.The preconditions and the political decision-making process for thefinal storage of spent nuclear fuel differ in Sweden and Germany. SKB(the Swedish Nuclear Fuel and Waste Management Company), whichis owned by Sweden’s nuclear power operators, is conducting preparatorywork for construction of a final repository for spent nuclear fuel inSweden. Following many years of studies and analysis work, Forsmarkwas chosen as the most suitable location. In spring 2011 SKB appliedfor the necessary permits for the final repository in accordance with theSwedish Act on Nuclear Activities and the Swedish Environmental Codein order to begin construction of a nuclear fuel repository in Forsmarkand an encapsulation facility in Oskarshamn. The permitting process isexpected to take several years. It is estimated that construction of thenuclear fuel repository can begin in 2019 at the earliest.In Germany, no formal proposal for a final repository for spentnuclear fuel has been set forth yet. Pursuant to a decision by theBundesrat in June 2013, a suitable location for final storage shall belocated by 2031 at the latest. Until then, spent nuclear fuel is storedin interim facilities adjacent to the nuclear power plants. For storageof low- and intermediate-level radioactive waste, national plans are inplace to use a former iron ore mine outside of the town of Salzgitter inthe federal state of Niedersachsen.Financing of nuclear waste handlingSweden’s nuclear power companies appropriate reserves to cover thecosts of nuclear waste management in Sweden. It is the owners ofthe nuclear power plants who, by law, must bear all costs for takingcare of and handling final storage of spent nuclear fuel and nuclearwaste, as well as for dismantling nuclear power plants and othernuclear facilities. As from 2015 the production companies appropriate4 öre (SEK 0.04)/kWh electricity generated by the nuclear powerplants to the specially designated Swedish Nuclear Waste Fund, whichis to be used to compensate the nuclear power plant owners for theircosts for storing spent nuclear fuel, handling waste and eventuallydismantling the nuclear power plants. Previously, the companiesappropriated just over 2 öre/kWh. Today the fund is worth slightlymore than SEK 50 billion. Vattenfall’s share of the Nuclear Waste Fundis specified in Note 42 to the consolidated accounts.In Germany, nuclear waste handling is financed by provisions madeby the owners of the nuclear reactors on their own balance sheets.No external funding is required. Vattenfall’s provisions are specified inNote 42 to the consolidated accounts.Radioactive wasteRadioactive wasteLow- and intermediate-levelradioactive operational waste (m 3 )Core components (tonnes)Spent nuclear fuel– removed fuel rods (tonnes)Spent nuclear fuel – originaluranium content (tonnes) 1Sweden 2,251 10 193 138Germany 2 0 0 0 0Total 2014 2,251 10 193 138Total 2013 883 3 18 161 145Volume of radioactive waste in 2013 and 2014, broken down by Sweden and Germany.1) Original uranium content in replaced rods. The increase in low- and intermediate-level waste is due to maintenance work at Forsmark.2) No transports were made of radioactive waste from the German plants in 2014 or 2013; however, waste has been stored on-site in compliance with applicable regulations in Germany.3) Amount has been adjusted compared with the amount presented in Vattenfall’s 2013 Annual and sustainability report due to an adjustment of the definition.Vattenfall Annual and sustainability report 2014 41