Post on 08-Feb-2022
Copyright © 2017 URENCO Limited
l1RENCO USA Update Presented to:
Radioactive &
Hazardous Materials Committee
7/28/17
Presented by:
David Sexton
UUSA President & CEO
URENCO USA Company Update
• Overview of URENCO USA (UUSA)
• Contributions to the Local Economy
• What are some of our challenges and opportunities?
• What's next for the nuclear industry and UUSA?
2
An Overview of URENCO USA
URENCO USA Overview
• UUSA is one of four facilities that make-up the URENCO fleet and is the newest, most efficient plant
• tJUSA enriches uranium which is a key step in the nuclear fuel cycle
• UUSA is the only commercial uranium enrichment plant in North America
• UUSA was the first nuclear project in the US in almost 30 years and the first to use the Nuclear Regulatory Commission's (NRC) Construct-Operate License
4
URENCO USA Overview
• UUSA was granted its NRC license in June 20 0 6 and began initial operations in June 20 10
• Currently, URENCO has invested approximately $48 in building out the UUSA plant
• UUSA is currently producing 4.7M SWU and is licensed to produce up to 1 OM SWU
• UUSA produces roughly 1 /3 of the US demand for enrichment services, which provides 5°/o of total electricity demand
The Nuclear Fuel Cycle
Waste
Management
Fuel
Reprocessing
US and Global Nuclear Fuel
Supply & Demand
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800/o -+--
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UUSA Site Today
UUSA Site Today
UUSA Site Today
Contributions to the Local Economy
12
UUSA Contributions to the
Local Community
RICHIE ENRICHMENT
SCIENCE WORKSHOPS
• 2,500 STUDENTS REACHED
• NEW CURRICULUM DEVELOPED
• HIGHLIGHTED DURING NUCLEAR SCIENCE WEEK
• K-3 SUMMER SCHOOL PROGRAM
• HUNDREDS OF RICHIE WORKSHOP GRADUATES SEND
"THANK YOU" NOTES TO UUSA
• OVER 150 UUSA VOLUNTEERS PARTICIPATED
tJLISA Contributions to the
Local Community
Modular Building & Furniture Donations • 19 Building Donations • Over $30,000 of furniture donations to Habitat for
Humanity • Office furniture and supplies donated to the area schools
and non-profit organizations
UUSA Contributions to the
Local Community
Modular Building & Furniture Donations
• Boys & Girls Club URENCO USA
• Boy Scouts
• CASA of Lea County
• Economic Development Corporation of Lea
County
• Guidance Center of Lea County
• Habitat for Humanity
• Heart's Desire • Hobbs Police Department
• Lea County
• Lea County Sherriff's Office
• Lovington Police Department
• Lovington Schools
• Loving Schools
l.JUSA Contributions to the
Local Community
• United Way of Lea County
• Since 20 0 8, UUSA has been the largest contributor to United Way with company and employee donations surpassing $1.2 M
• Employee Volunteering
• Last quarter, UUSA employees logged over 1, 0 0 0 hours of volunteering time
• 9/11 Day of Service
• Each year since 20 0 9, approximately 20 0 volunteers make repairs to homes and other community improvements to honor those who lost their lives on 9/11
• Over the course of this project, UUSA has helped to improve the homes and lives of over 15 0 seniors in the area
16
An Overview of Market Conditions
in the Nuclear Industry
Nuclear Energy Market
IDemand < Supply
Demand • On March 11, 20 11, the earthquake that hit off the coast of
Japan resulted in a tsunami that fundamentally changed the future of the nuclear industry
• The following immediate impacts were due to Fukushima • -12°/o of global nuclear generating capacity went offline
almost immediately when Japan shut down its nuclear fleet • Germany decided to move away from nuclear energy and
at the completion of their phase out, another -3°/o will go offline
• New build programs in China and South Korea were significantly delayed
18
Nuclear Energy Market
Demand < Supply
Supply
• Utilities alone are holding a four-year inventory of uranium.
• Governments and producers are holding additional
inventories.
Ux SWU Price (Spot vs. long-Term) s BO ll.llSSESWU © UxC.com
• x -1 SWU Price
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Nuclear Energy Market
Generating Capacity
Forecast (2008 - 2030)
# Reactor Units Nuclear Generating Capacity (MWe)
600 -,---------------------------------------. 550,000
550
500
450
400
350
300
250
200
150
100
50
2008 2010 2012 2014 2016 2018 2020 2022
-North America -western Europe - Eastern Europe
c:::::::JAfrica & Middle East -south America -.:-Total MWe
2024 2026 2028
Asia & Oceania
2030
525,000
500,000
475,000
450,000
425,000
400,000
375,000
350,000
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20
Nuclear Energy Market Reactor Construction
/�?AiUJ,.i.m Highest level of construction in twenty five years: 60 reactors worldwide
Russia China
China 2016:
5 reactor starts
2 construction starts .India
China 2015:
8 reactor starts
6 construction starts
Pakistan e • France
8 Finland Belarus e
• Brazil
Chinese A • .
.UAE
V Argentina A Taipei
3 • South Korea
Slovaki
NUCiear � towards the Harmony goal; providi119 reliable and deM elecincrty WOl1dwlde Agneta Risng, Cwedof General
Japan
Source World Nuclear Association 12
Nuclear Energy Market Consumption
/ WORU) NUCLEAII Accelerating rise in world electricity consumption
20000
16000
12000
Global credit crunch
Dot�m bubble burst
Asian economic cns1s
8000
Black Monday stock market crash
US recession
2nd oil-price shock
1st oil-pnce shock
4000
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Year
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Nuclear Or<>'Mh towards the Hannony goal providing re iable and dean electnclty worldW!de Agneta Rising. Olll!dOT Genei:al
1985 1990 1995 2000 2005 2010
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2 22
The Future for the Nuclear Industry
Industry Challenges & Opportunities
Challenges
• Demand<Supply
• Cost of operations and steep entry cost for new builds
Opportunities
• Continued growth in international markets
• Small Modular Reactors (SMR)
• UBattery
• Decommissioning, interim storage, & disposal
24
Nuclear Energy Market
URENCO's Response
• URENCO is strategically realigning the company, taking advantage of our market strength and global position to ensure that we remain a sustainable business moving forward.
• To accomplish this, we are taking a 3-pronged approach:
• Optimizing the way we do business
• Exploring growth opportunities to maximize our future sales
• Expanding our technological capabilities to more broadly serve the nuclear industry
URENCO USA's Path Forward
• l!JRENCO continues to believe that the world will need nuclear to meet the increasing demands for sustainable energy production and that we will be well positioned to be a significant part of this solution.
26
Questions?