Urenco Annual Report 2022

11 Urenco Annual report and accounts 2022 Strategic report 01 Belgium : Belgium’s federal government has agreed to allow Doel-4 and Tihange-3 to continue operations until 2035 to enable the country to reduce its dependence on fossil fuels.The coalition government had earlier agreed to phase out the use of nuclear energy by 2025. Romania : In addition to Romania’s plans to complete construction of the partially-built Cernavoda-3 and -4, the government reports that it will host the first SMR in Europe, following its announcement that NuScale Power and the Romanian National Nuclear Power Company have agreed to collaborate to build an SMR plant on the site of a former thermal power plant at Doicești. Finland : Olkiluoto 3 was connected to the national grid in March 2022 and is due to achieve commercial operation in 2023.There were also applications to extend operations of units-1 and -2 of the Loviisa nuclear plant until the end of 2050, from the current end date of 2027. France : President Emmanuel Macron has announced that the country will build six “next generation”European Pressurised Water Reactors (EPRs).The government has instructed EDF, the state-owned enterprise in charge of the nation’s nuclear reactors, to break ground for the first unit by 2027. To aid this commitment, France has drafted legislation to streamline bureaucracy for administrative permits needed to build new nuclear power plants and is also in the process of fully renationalising EDF by increasing its shareholding in the company from 84% to 100%. The Netherlands : The Dutch Cabinet has approved the construction of two large reactors, preferably at the existing Borssele nuclear plant.The government hopes to commence construction in 2028, with the units producing electricity by 2035.The government will also pursue talks aimed at extending Borssele’s operation beyond its previously agreed 2033 closure date. China : China’s renewed commitment to nuclear following the release of last year’s 14th five-year plan has resulted in the sanctioning of 10 new nuclear power units in 2022, the highest yearly number in more than a decade. China aims to have 200 GWe of nuclear generating capacity in place by 2035. South Korea : According to South Korea’s updated comprehensive energy plan, the government will resume the construction of Shin-Hanul-3 and -4 and continue operations of existing reactors, which is expected to increase the country’s nuclear energy ratio to over 30%by 2030.The government also seeks to export 10 nuclear reactors by 2030 and target 400 billion won ($308 million) for the development of SMRs.The previous administration had a nuclear-free policy that suspended the construction of these units, cancelled plans for more units and ruled out life extensions for the existing fleet. Japan : In a reversal of its no new build policy,Japan’s Prime Minister ordered the development and construction of next-generation nuclear power plants. It also aims to secure electric power in the medium to long termwith a plan to restart up to 17 nuclear power plants beginning in the summer of 2023, as well as extend the maximum service period for the country’s existing nuclear reactors beyond 60 years. Poland : Poland awarded a contract to build its first nuclear power plant toWestinghouse as the country seeks to burn less coal and increase its energy independence. Separately, KHNP is also pursuing opportunities to build four nuclear reactors in Patnow, central Poland. Poland continues to be very active in its plans to deploy SMRs, with ongoing discussions with several next generation reactor vendors. Sweden : Sweden’s new government has promised the construction of new nuclear reactors to meet the growing demand for electricity and will instruct state-run utility,Vattenfall, to“immediately plan the construction of new reactors”.Vattenfall, meanwhile, has announced that it is launching a year-long study to assess the interest of constructing SMRs. UK : Nuclear’s share of energy in the UK is currently about 16%, however, almost half of the country’s current capacity is due to be retired by 2025 and all but one of its reactors will retire by 2030.To counter this, in early April, the Government published its British Energy Security Strategy, setting out its ambitions for up to eight new reactors, plus SMRs, helping to produce 24 GWe of nuclear generating capacity by 2050, representing about 25%of the UK’s projected electricity demand.To support this, the Government has introduced the Nuclear Energy (Financing) Act and has subsequently committed to taking a 50% stake in the two unit Sizewell C nuclear project. Rolls-Royce has prioritised four sites in England and Wales, following a site selection study, where its SMR design could potentially be deployed. UAE : In February 2023, Barakah-3 joined units-1 and -2 by entering commercial operations. Barakah-1 and -2 started commercial operation in April 2021 and March 2022 respectively.The Federal Authority for Nuclear Regulation is also expected to issue the operating license for Barakah-4 in 2023. EU : Following no objections by the European Parliament or Council, the EUTaxonomy Complementary Climate Delegated Act covering certain nuclear and gas activities came into force on 1 January 2023. It extends the EUTaxonomy Framework to permit certain economic activities involving gas and nuclear energy (not including enrichment) to be classified as“environmentally sustainable”. The inclusion of certain gas and nuclear activities will be time-limited and dependent on specific conditions and transparency requirements. Germany : Germany has had a policy to phase out nuclear power and close all of its remaining nuclear power plants, of which three remain in operation. However, the war in Ukraine and Germany’s high dependence on imports of natural gas fromRussia have led to a delay in implementing the full phase out.