Nuclear Management Partners

Sellafield Ltd is owned by Nuclear Management Partners and operates on behalf of the Nuclear Decommissioning Authority

Sellafield site, West Cumbria, UK

Organisational roles and relationships . . .

Who We Are… Nuclear Management Partners is the only company in the world with experience and expertise in each of Sellafield’s core functions:

Reprocessing

Spent Fuel Management

Decommissioning

Waste Management

 Largest and safest DOE-EM contractor  Leader in high-level waste remediation  Leading engineering, construction and technical services firm

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 Leading UK nuclear engineering and project management company

 World leading civil nuclear fuel cycle operations

 More than 40 years involvement in West Cumbria and Sellafield

 Involved in each phase of the nuclear fuel cycle

Sellafield has more than 60 years of history . . .

1940s/50s

1960s/70s

• Nuclear build begins

• Waste stored safely – pending treatment

• Initially a military • programme

• Storage capacity extended incrementally

• Later civil programme begins

• Coarse segregation of waste arising from process • Magnox reprocessing starts

1980s

• Main expansion of site • Major waste treatment focus • Environmental impact • substantially reduced • Decommissioning • programme started

1990s

• True commercialization of reprocessing—Thorp online

2000s

• Decommissioning gathering pace

• Waste arising from processes • Sellafield landscape treated in ‘real time’ changing forever • Product waste forms compatible with disposal concepts • Health and safety executive reports

• NDA formed • NMP become PBO

Sellafield site focus today . . .

Decommissioning of redundant nuclear facilities

Reprocessing of spent fuel at 2 plants

•Primary focus is on legacy ponds and silos •These represent >90% of site’s nuclear hazard potential •Involves characterization, manual and robotic retrieval, decon, demolition, remediation

•Magnox deals with metal fuel from British and overseas early nuclear reactors •Thorp deals with oxide fuels from British Advanced Gas Cooled Reactors and Light Water Reactors from around the world

Nuclear Waste Management

MOX Fuel Fabrication

•Processing and storage of legacy materials as well as the treatment of new wastes arising from commercial and decommissioning operations •Vitrification is a key component

•Sellafield MOX Plant uses plutonium separated from spent fuel during reprocessing recycles it MOXand Fuel into new MOXManufacturing fuel •Typically, reactor operators load up to 1/3rd of a reactor core with MOX fuel instead of uranium fuel

Presentation to Detroit Edison Nuclear Plant Alliance

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The Strategic Importance of Sellafield •

Successful decommissioning of legacy facilities is vital to the national new build programme –

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Continuity of UK electricity supply –

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Among the largest inventories of untreated waste in the world – must be able to show that we can deal with this safely and effectively

Operational plants play a key role in UK nuclear fuel cycle – must perform to the highest standard

Fundamental to new nuclear investment in West Cumbria –

Must demonstrate Value for Money to UK Govt and Tax Payer

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Make West Cumbria an attractive place for business investment

Our Parent Companies are committed to this mission

Vitally important to the economy of West Cumbria • • • • • •

Over 9000 Sellafield Ltd employees Approx 1000 Agency Supplied workers In total there are 28,000 people working in Copeland Over 70% of Sellafield workforce live in Copeland 25% of Copeland workforce are directly employed at Sellafield Wage structure at Sellafield significantly higher than area average

Sellafield Ltd – Importance of Supply Chain • Sellafield Ltd accounts for >50% of the NDA fleet supply chain spend • 2009/10 c£800M supply chain spend • Around 30% of Sellafield supply chain spend is retained in Cumbria • Historically the Supply Chain spend has increased year on year • Ongoing challenge is how we engage with suppliers to get the best value from spend

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Our Vision

The SLC and its people will achieve the NDA mission through safe, sustainable, world class performance and effective partnering with stakeholders to become the site and workforce of choice for potential new missions.

• To provide a long term viable future for Sellafield Ltd, West Cumbria and the UK nuclear industry, we are making Sellafield…..

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Safer – by bringing world standards in Conduct of Operations expertise Cleaner – by accelerating delivery in the Legacy Ponds and Silos areas More productive – by improving performance of our aging operational plants More efficient – by focussing on the priorities and eliminating waste Better neighbour – by working in partnership in socio-economic delivery

We are building a High Performance Culture‌ Safety Workers Safety

Focus on Paperwork

Nuclear Safety

What is it?

It can’t happen here

Focus on correcting atrisk behaviour Nuclear Safety is the No. 1 Priority

Processes

Results

Focus

Narrow Skills Inflexible

Workforce

Mobile and Flexible

World View

Insular

Learn from Others

Reliability and Performance

Low Reliability and Performance

High Reliability and Performance

Process Culture

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Performance Culture

Sustained LTA free periods Peer to Peer programme launched with over 32,000 observations in 12 months Nuclear Safety Leadership

Other Key Change Results Enable Success: 65% reduction in admin documents; procedure development cycle time cut 79% Develop and Appraise Workforce: Performance Management Actions Maintain High Standard of Performance: World Association of Nuclear Operators (WANO) Reviews Blend Strengths: Reachback brings world-class practices, tools to organisation and removes barriers

We are having to make difficult decisions on the way • Nearly 600 Sellafield Ltd employees released on Voluntary Severance Terms • Approximately 300 Agency workers released • Deferral of scope (e.g. Windscale) • Comprehensive Spending Review • Need to continue drive for efficiencies to support the case for potential new missions

Historic Socio-Economic Support • BNFL operated Sellafield from 1972 to 2008 • Recognised “licence to operate” as a key enabler to delivery of company objectives • “Licence to operate” = benefit to community » = openness and transparency » = high quality employment

Historic Socio-Economic Support • 1980’s - changing economic conditions – End of iron & steel manufacturing – End of deep coal mining – Completion of major construction projects (Thorp etc) –

Thousands of jobs lost

Historic Socio-Economic Support • 1988 - West Cumbria partnership established – West Cumbria Development Fund – West Cumbria Development Agency • Public/ private sector initiative • Job creation, inward investment • Outputs include Westlakes Science & Technology Park, more than 15,000 jobs created or sustained

Historic Socio-Economic Support • • • • •

However…..

Approach was largely tactical, short-term and reactive Lacked long-term vision and….

New opportunities becoming available through creation of NDA and contracterisation

Fundamental changes to our Socio-Economic approach Traditional Approach Opportunistic • Short term focus • Reactive to random requests • Tactical

New Approach Strategic • Long term focus • Planned in advance • Transformational projects

Independent

Integrated

• Sellafield/ BNFL only • Limited consultation with wider community • Parental

• SL/ NDA/ NMP – Funding Partners • Integral to Energy Coast • Partnership based

Reactive • Funds released as requested • Subject to annual budget • Charitable v S-E

Resourced • 5 year commitment of £22.5m • Leverage Corporate knowledge & experience • Ringfenced Charity Fund

Changes to Procurement Policy • Long term partnering contracts • Attract large businesses into West Cumbria • Partner with local supply chain • National and international market

Supply Chain Ombudsman • The only Supply Chain Ombudsman in the UK nuclear industry • Independent [unbiased] and confidential route for complaints/raising of issues • Owner of ‘Code of Ethics in Procurement’ • Supply Chain ‘engagement’: – First point of contact for the Supply Chain, especially initial contact – Supply Chain relationship management: • Interface between Sellafield Ltd and the Supply Chain • Encouraging new entrants into the market • Market intelligence

Supply Chain Engagement - Events •

Supplier Forum – Feb 2010 ~500 Delegates/~400 Companies

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Meet The Buyer - Feb 2010 ~210 Delegates/~200 Companies

What we need to do…..

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Work in partnership with local community to attract new missions and new business to Cumbria Ensure alignment at strategic and tactical levels Prove to Government that we offer a value for money solution Promote Cumbria as an attractive place to do business

. . .cleaner safer, more productive, more cost effective, and a better neighbour.

. . .building the bridge to UK’s green an safe energy future.

Sellafield attracts global attention – we have an opportunity to invent the future