Urenco Annual Report 2022

5 Urenco Annual report and accounts 2022 “ We are a unique uraniumenrichment company due to the diversity and security of supply that we offer through owning and operating four facilities in four different countries”. The second element is energy independence.Many countries are realising that over dependency on fossil fuel imports is not sustainable in the long termand they must have greater control over energy supply to avoid shortfalls in the future.This has been brought into clear focus by the conflict in Ukraine, with policy reversals towards nuclear energy in Japan, Belgium and South Korea.We are seeingmore power companies wanting to diversify their enriched uraniumsupply, which we are keen to support. Security of supply is a third factor. For the first time in decades, the need for a reliable energy supply has become a concern.With demand forecast to rise by up to 10%by 2030 according to the International Energy Agency (IEA), nuclear is the second largest source of clean energy and will continue to play a key role in providing baseload electricity.With the decarbonising of other sectors, the need for baseload energy will strongly increase and nuclear is as a reliable solution for this. By introducing a programme to enhance our capacity, Urenco is well positioned to provide enrichment services for decades to come. Finally, there is increasingmomentum behind advanced fuels and new nuclear power technologies, with an acceptance that they canmake a sizable contribution to net zero, energy independence and security.There is also an expectation that they will be quicker and cheaper to build than largescale reactors.This is particularly the case in the USAwith the Inflation ReductionAct, and in the UKwith the Future Fuel Fund, both supporting the development and deployment of advanced nuclear technologies and the advanced fuels that are needed to power them. Urenco is engaging with this emerging market, asmore andmore countries announce small modular reactor (SMR) and advancedmodular reactor (AMR) projects.We are preparing to play our part in ensuring that enriched uranium is available as a source of fuel for them. Our people With the steady relaxation of COVID-19 restrictions worldwide, we have continued to keep our people safe at all of our sites. This includes following rule changes and supporting our workforce to adapt to a hybrid style of workingwhere appropriate. We are focusing on increasing our workforce by hiring and training newpeople and ensuring that we have a winning team inwhich our people can thrive. On behalf of the Board, I would like to thank everyone at Urenco and our partners for their support and hardwork in 2022. I am pleased to see the enthusiastic way that everyone has responded to the challenges and opportunities that the changed global environment has presented to us. Our positioning We are a unique uraniumenrichment company due to the diversity and security of supply that we offer through our four facilities in four countries, underpinned by robust international treaty commitments to nuclear safeguards and non-proliferation. We are focused on investing in our uranium enrichment capacity, while developing advanced fuels and enhancing our associated services in stable isotopes production formedical applications and responsible nuclear stewardship. I amvery pleased that we are working hard to respond to the challenge of climate change and energy security.As a company we recognise that we have an important role in delivering for our existing and new customers for a long time into the future. We are a key part of the world’s energy supply and 2022 has only reinforced this. The global environment Events in the last 12months have had a huge impact on the whole of the energy sector.We have focused our strategy on ensuring we continue to act as a flexible, innovative organisation that can help deliver secure, low carbon and affordable energy. The conflict in Ukraine has caused reverberations around the world and on economies, and particularly global energy markets.This has led to a change in the debate on sustainable supply chains in Europe and other countries and changes in perception for both new and existing technologies and types of generation, including nuclear.This has renewed the civil nuclear industry’s need to be a stronger part of the energymix, where it will continue to help replace fossil fuels.To deliver, we at Urenco are planning for an expansion of our sites’capacity, expanding recruitment and ensuring nuclear is an attractive career proposition. Price levels in the uraniumenrichment market have rebounded.This has enabled the reversal of impairments recorded against our US facility in 2016 and 2019 which is encouraging, and stable policy frameworks and longer termcustomer arrangements are required to enable the necessary future investment in our business. There are four key factors underpinning our refreshed strategy. The climate emergency and the need to decarbonise our economies remains at the forefront of energy challenges.We have seen amovement towards low carbon nuclear energy andmore countries are now actively considering it as an option. Poland, for example, has committed to its first new build nuclear power stations. Stephen Billingham CBE Chairman Strategic report 01 1 https://www.iea.org/reports/global-energy-and-climate-model/stated-policies-scenario-steps