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E n e r g y - E n v i r o n m e n t - H e a l t h

A N N U A L R E P O R T2 0 0 6

Editorial staffCo-ordination and final editingMenno JelgersmaJuliëtte van der LaanCora Blankendaal

PrintingStyle Design

TranslationEnglish Language Services

PicturesFoto John Oud NRGSCKCOVRA

Contact informationPetten, SecretariatWesterduinweg 3 P.O. Box 25�755 ZG Petten, the Netherlandstelefoon: +3� 224 56 4950fax: +3� 224 56 89�2

Arnhem, SecretariatUtrechtseweg 3�0P.O. Box 90346800 ES Arnhem, the Netherlandstelefoon: +3� 26 356 85 85fax: +3� 26 35� 80 92

e-mail: info@nrg.eu

www.nrg.eu

Contents

3

General

Expertise NRG essential for a sustainable society 4

Longer lifespan for British nuclear power plants �0

In Service Inspection nuclear power plant Borssele �2

Increase international activities �4

NRG supports nuclear inspection service �6

ITER - The way to nuclear fusion �8

Burning nuclear waste 20

Criticality course: knowledge transfer at work 22

Reactor conversion adequately predictable 24

Safe closing of a salt mine 28

Preventing the smuggling of nuclear material 30

Retrievability of high-level radioactive waste 32

Safe final disposal 34

HFR provides high quality molybdenum 38

Healthier living environment in housing 40

Development of new PET-isotope for patients 42

Modernisation nuclear infrastructure 44

Human Resources 46

NRG makes every effort for quality, safety and environment 48

Nuclear energy in the centre of attention 50

Financial Statement 2006 52

Organization Chart 55

Good results, also for non-nuclear applications 56

Energy

Environment

Health

General

General

4

General

4

Growing role of NRG

In 2006 it became increasingly clear that the sup-ply of energy needed revision. The most important reasons are the facts that the biggest oil and gas supplies are found in politically unstable areas and that the greenhouse effect will lead to unaccepta-ble consequences worldwide. The earlier detected positive change in public opinion about nuclear technology made NRG take up a more market-orientated attitude compared to preceding years and put her expertise into practice. This is apparent from the growing number of assignments acquired by NRG in the Netherlands, but especially abroad. Examples are, for example, NRG´s commitment to the modernisation and maintenance of the nuclear power plant Borssele, and the contribution NRG is going to make to the building of the new nuclear power plant in Finland. In addition to the deve-lopment of commercial activities, we are glad to observe that NRG indefatigably dedicates itself to energy-related long-term research such as transmu-tation of long-lived nuclear waste and materials re-search on behalf of the development of ITER, the experimental fusion reactor in Cadarache (France).

Internationally NRG impressed in May 2006 with the completion of the conversion of the high flux reactor of proliferation-sensitive high-enriched uranium into low-enriched uranium. The embed-ding of low-enriched nuclear fuel elements in the HFR core has been carried out gradually since October 2005. With that NRG withstood the chal-lenge of an extremely complicated conversion pro-cess with distinction. With the conversion and the latest licence the HFR can continue to contribute to the development of nuclear technology and the production of radionuclides for medical applicati-ons for the next couple of years.

NRG is the Dutch centre of excellence in the field of safe application of nuclear technology. NRG focuses on research, product and process development and consultancy for government and industry. NRG is also the biggest manufacturer of radionuclides for medical, industrial and scientific applications in Europe. NRG has the ambition to contribute to the sustainability of nuclear technology.

The greenhouse effect - nuclear energy as part of the solutionThe Dutch government defined the preconditions for the growth of nuclear energy in the Netherlands. It seems to put an end to the policy of phasing out nuclear energy. This development is in keeping with the worldwide reconsideration of nuclear energy. The arguments for this change of direction are: safeguarding the security of supply, a competitive and stable energy price and driving back the greenhouse effect.

Increase in the national and international role played by NRG Government as well as industry more and more frequently makes an appeal to the expertise of NRG as a nuclear expertise centre. NRG will, as such, play an essential role in the preparations and actualisation of the expansion of nuclear power. One of the biggest assignments for NRG in 2006 was the In Service Inspection of the nuclear power plant Borssele. After

Expertise NRG essential for a sustainable society

5

General

a necessary preparation of months the successful implementation that took from the end of October till mid-November was the crowning glory of the work. NRG completed the assignment within the set planning, to the complete satisfaction of the client and the nuclear inspection authorities.

But also the international network NRG built up over the years guarantees quality of service. In 2006 NRG entered into a contract with the French/German combination Areva, for the building of the EPR (European pressurised reactor) in Finland. Another significant international commitment concerns the assignments NRG acquired in Slovenia and Belgium by putting into action the NRG computer code Rosa, an optimisation code for recharging fissile material in a reactor core. Additionally British Energy Generation Ltd (BE) selected NRG as its partner with regard to the ageing research. BE wants to know what is needed to keep their nuclear power plants safe in operation longer than originally planned. BE chose NRG because of its expertise in the field of graphite and the possibility to submit graphite samples by means of a high flux reactor (HFR) to an accelerated ageing process. NRG was also active in the field of environment and health. On an international level NRG investigated the safe final emplacement of long-lived nuclear waste and carried out, in co-operation with the Latvian company SIA Estonian, Latvian & Lithuanian Environment, a project to improve the repression of ‘illicit trafficking’, the smuggling of nuclear fuel and other radioactive elements from and to Latvia. In the field of health a production record of molybdenum-99, the radionuclide that is of the highest importance within contemporary nuclear medical diagnostics, was achieved in the latest reactor cycle of HFR in 2006.

Nuclear infrastructureThe HFR plays a global role with its material and nuclear fuel research. In addition to this the research

In order to also establish this position organisatio-nally the first few steps have been taken to form a HFR Joint Venture. We trust this will successfully be rounded off in 2007.

On the 1st of December ECN took over KEMA’s thirty percent stake in NRG. This will also mean the end of the good working relationship we had over the years as partners of NRG. Management of NRG and ECN have since then began talks on a new structure between both com-panies. The new organisational structure will take shape in 2007.

We express our appreciation to the board of direc-tors and all employees of NRG for their achieve-ments in 2006, which gives us a solid confidence for the prolongation of our successful management processes.

5

Ton Hoff Chairman of the board ECN

Pier Nabuurs chief executive officer KEMA

Expertise NRG essential for a sustainable society

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General

reactor is essential for the production of radionuclides for industrial and medical applications. In 2006 the reactor was converted completely from using high enriched uranium to low enriched uranium. NRG herewith contributes to the reduction of the use of proliferation-sensitive material. The international interest in using the HFR increases strongly, in research as well as in the production of medical radionuclides and semi-conducting material. To anticipate this growing interest the European Commission, as owner of the HFR, decided in consultation with the Dutch government, to place the financing of the scientific use of the reactor with a European Joint Venture. To be able to supply the irradiation need in the further future after 20�5, NRG is working on Pallas, the intended successor of the HFR. In addition, the building of a new modern radiological laboratory was commenced to renew the nuclear infrastructure even more.

PrivatisationOn � December KEMA transferred its shares in NRG to ECN. With this an important step was taken on the way to a new organisation structure, with NRG and ECN as independent corporations under a joint holding. The new structure does justice to the synergy between NRG and ECN as well as to the own identity of both organisations.

ResultsA selection of projects is included in this annual report to give an impression of the activities of NRG. The year 2006 was a successful year. The research results, the services rendered to our business

Energy is an important part of sustainability

NRG is active in the field of healthcare with the production of raw materials for nuclear medicine. NRG contributes to future sustai-nable energy management with research in recycling of innovative reactor fuel and nuclear waste. Additionally, NRG investi-gates the safety of nuclear power plants and materials for fusion reactors. When talking about future sustainable energy manage-ment all options should be under discussion. Besides, the renewable sources such as sun and wind, fossil fuels and nuclear energy will remain important. I cannot justify to my children and their children leaving even one of these options open, including the development of nuclear energy. Nuclear po-wer plants are a lot safer than they used to be, do not emit carbon dioxide and have a high supply security. These are the reasons why interest in nuclear energy is increasing worldwide, of course taking into account that the safe application and the non-proli-feration are strict preconditions. To me the future of global energy sup-ply looks bright. Countries like China and India are developing fast. The “sustainable” vision that wins more and more ground in the Western countries, gives these coun-tries another starting point. We shall have to manage energy better in any case. This means using energy in a more efficient way, adapting another lifestyle, but also taking more responsibility. For this research and development are essential.

Ruud LubbersChairman of the Supervisory Board of ECN

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General

relations and the production of medical radionuclides are making an important contribution to the safe application of nuclear technology for energy, the environment and health. NRG profits amounted, in spite of extra donations to the retirement provision, to over �.2 million EUR. NRG staff deserves a big compliment for its efforts and the achieved results with which NRG could strengthen her national and international position even further.

André Versteegh Rob Stol Director General Director

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André Versteegh: “Nuclear expertise is essential for sustainable energy supply.”

Rob Stol: “As the Dutch centre of excellence, NRG develops knowledge, products and processes for the safe applications of nuclear technology for energy, the environment and health.”

Longer lifespan for British nuclear power plantsIn Service Inspection nuclear power plant BorsseleIncrease international activities NRG supports nuclear inspection serviceITER - The way to nuclear fusionBurning nuclear wasteCriticality course: knowledge transfer at workReactor conversion adequately predictable

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8

Victor Wichers Product Group Manager

Plant Performance & Technology

‘‘Because of the renaissance of nuclear energy the demand for

our expertise is growing.’’

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Energy

Longer lifespan for British nuclear power plants

In Spring 2006 British Energy selected NRG as their partner for the Materials Test Reactor project on graphite ageing.Within the United Kingdom nuclear power provi-des about 20% of the national electricity. British Energy Generation Ltd is the major provider, and operates fourteen Advanced Gas Cooled Reactors, AGR, and one pres-surised Light Water Reactor. The AGR’s that were built in the period �976 - �988 will reach their initial design life in the next decade, starting from 20��. British Energy decided in 2005 to launch various activities to maximise the operational life and power output of their AGR fleet. This analysis comprises of safety and economic consi-derations. An AGR core typically consist of a pile of a few �000 moderator graphite bricks, that are keyed. The brick bores form the channels for fuel insertion and carbon dioxide coolant flows.

Arjan Vreeling, NRG – materials: “British Energy was not look-ing for an irradiator, but for a troubleshooter. The “one stop shop” principle we could offer, turned out to be of strategic importance.”

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Energy

AGR life extension case. This requires the preparation of specimens cut from existing cores and their characterisation, with sub-sequent accelerated ageing in a Materials Test Reactor like the HFR. Post irradiation examinations concern physical and mecha-nical properties.

NRG has been selected as the preferred supplier for this project. NRG has already implemented a number of new in-cell test equipment. This comprises of cutting and drilling set-ups and measuring tools for physical and mechanical properties.The project scope is until 20�4.

The graphite is subjected to high neutron loads and its properties change. In addition the radiolytic oxidation process by the cool-ant reduces the graphite density near the bore hole. Initially the material shrinks, gets stiffer, becomes more thermal resistant and its thermal expansivity changes. This gives rise to the build up of internal stresses, affecting the brick response to mechanical loads.

British Energy has launched an irradiation programme to obtain graphite properties beyond the current database, to support the

AGR core

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�2

Energy

The 2006 annual outage of the Borssele nuclear power plant was used to replace a turbine. To make optimal use of this ex-tended outage, several close inspections of the ongoing In Service Inspection interval programme were carried out in 2006. This resulted in a large assignment for NRG’s inspection team.

During the outage, NRG inspected several welds of the primary circuit, i.e. eleven welds of the main coolant circuit and four of the steam generators. In addition, NRG staff carried out a surface inspection of these welds and inspections of the nuts and the studs of the main coolant pump.

In December 2005 a start was made with the design of the sample blocks and the selection of the sensors.

Ruud Schiffer, NRG – inspections: “Every time again it is a challenge to do a job in a couple of weeks, after a preparation time that took months.”

In Service Inspection nuclear power plant Borssele

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Energy

A sample block is, in terms of material and geometry, basically similar to the compo-nent that is to be inspected. These blocks are necessary to be able to qualify the inspections according to the ENIQ (Euro-pean Network for Inspection Qualifications) regulations.During the first period all scanners were designed and the necessary documents were completed. Subsequently all parts were shipped to the plant whereupon NRG could get to work.

The execution of the work on site that took from the end of October till mid-November was the crowning glory of the job after a long preparation.The assignment was completed within the planned time to the full satisfaction of the customer and the Dutch nuclear inspecto-rate.After completion of the project, Borssele staff complimented NRG’s ISI team on suc-ceeding in staying far below the anticipated radiation dose.

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Energy

NRG’s international activities showed an increase in 2006 with respect to former years. It is expected that this increase will continue in the next years and develop into a trend. Stimulated by a “nuclear” market that was picking up because of the renewed interest in nuclear energy, NRG responded by trying to join this trend with a pragmatic approach.

One of the assignments concerned the contract NRG entered into with the French/German combination Areva to actively con-tribute to the EPR (European pressurised re-actor) new-build project in Finland. NRG is engaged in safety engineering. The project will take up a minimum of five years, in which initially some NRG employees have started working at Areva in Erlangen (Ger-many) to become familiar with the required procedures. In 2008 they will become the “first point of contact” for work sourced out to NRG.

Increase in international activities

Victor Wichers, NRG – Plant Performance & Technology: “The renaissance of nuclear energy has caused the market to open up. This way we get more options, because we offer solutions, and the industry is noticing that.”

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Energy

A second salient activity last year and a breakthrough on the European market is constituted by the assignments NRG re-ceived in Slovenia and Belgium by putting into action the NRG computer code Rosa. Applying Rosa enables energy suppliers to optimise loading patterns of nuclear reactors.

NRG also entered into a contract with Paks Utility in Hungary, a complex with four nu-clear reactors of a thousand megawatt each. The contract concerns a high tech project in which NRG employees decommission an old contaminated nuclear fuel container in a basin by means of spark discharge. A fourth international participation of NRG

concerns the long existing connection with the PBMR (Pebble Bed Modular Reactor) project. NRG researchers focus, among others, on the transport of radioactive dust in a PBMR. This type of reactor does not use uranium in bars but particles of uranium embedded in graphite balls as big as a ten-nis ball. Internal abrasion causes radioactive graphite dust to be set free into the reactor core. Because of the innovative design there are no calculational models available, that can simulate the transport of dust. NRG uses the in-house developed codes Spectra and Visor to model and visualise the dust is-sue. Demonstrable management of the dust flows is necessary for licencing the PBMR in South-Africa.

Artist impression EPR in Olkiluoto, Finland

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Energy

The Nuclear Inspectorate (KFD) of the Mi-nistry of Housing, Spatial Planning and the Environment supervises nuclear installati-ons in the Netherlands, such as the nuclear power plant in Borssele. An important target is to continuously improve the safety of the power plant. Therefore it is neces-sary to stay up-to-date with the international developments in the field of nuclear safety. As a Technical Support Organisation NRG supports the KFD in various ways.

NRG participated last year, by order of the KFD, in several international projects of the Organisation for Economic Co-operation and Development (OECD) with regard to the distribution of steam, hydrogen and ra-dioactive iodine in the containment of a nu-clear power plant. In a hypothetical severe accident, in which radioactivity is released, the radiation exposure in the first few hours

NRG supports nuclear inspection service

Michiel Houkema, NRG - computational fluid dynamics: “As a Technical Support Organisation NRG is very capable of supporting the KFD.”

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Energy

is mostly determined by the radioactive io-dine. Therefore it is important to know the behaviour of iodine to be able to produce an accurate prediction of the results of such an accident, for inventing additional precauti-onary measures and the effect of measures to be taken. Therefore joint experiments are carried out to test safety calculations.

NRG may in 2007 again provide a techni-cal contribution, including the calculation of iodine behaviour by means of special computer programmes. Comparing calcu-lation results with measuring results from experimental facilities is central to test the predictability value of the calculations and possibly improve it.

Also within the Dutch borders NRG is sup-porting the KFD. To optimise the national plan with regard to nuclear accidents emer-

gency preparedness, inspectors need to have as much insight as possible into the course of possible accidents and the influence of measures to be taken. NRG therefore deve-lops a so-called “desktop simulator”. This is a computer programme with which the user can simulate the course of an accident. The KFD uses this programme to train its employees.

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Energy

In 2006 important milestones were achieved in the development of fusion energy. After selecting Cadarache in the South of France as the site for the reactor, an agreement was reached in 2006 to actually build the experimental fusion reactor ITER (ITER is Latin for “the way”). Aim of this ambitious enterprise is to demonstrate the technical feasibility of fusion power generation.

For a number of years only the EU, Japan and Russia worked on the ITER project. Meanwhile the US has joined again and also China, South Korea and India are participating. This implies that seventy percent of the world has access to the development of fusion energy for peaceful purposes. The European Union acts as host, with strong support from France and the other member countries. The building cost for ITER are estimated at five billion euros, plus another five billion euros for twenty years of operation. At the same time of the ITER agreement Japan and Europe decided

Jaap van der Laan, NRG – materials: “With the decision to construct ITER a very important milestone has been achieved: the big step from fusion physics and technology to fusion reactor technology - NRG’s sphere of activity par excellence.”

ITER – The way to nuclear fusion

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Energy

to co-operate on a Broader Approach with regard to physics and technology develop-ments. Representatives of the countries participating in the ITER-project signed the agreement in Paris last November. As per mid 2007 this will result in an operational International Organisation. The first plasma is expected in 20�8.

NRG research&development is important for the technological base of ITER. NRG is actively involved in the deployment of the high flux reactor (HFR), for the testing and the qualification of materials and compo-nents for ITER. A new testing facility for first wall modules is now under construc-tion.

It allows close simulation of the thermal fatigue of components in combination with

neutron radiation. Innovative solutions for in-vessel material and component manu-facturing routes will be tested in the High Flux Reactor by NRG. Over ten different partners within the European project Extre-Mat (New Materials for Extreme Environ-ments) will provide NRG with samples. NRG reinforces with her knowledge about ITER and the fusion reactor requirements, also the position of the industry and small and medium-sized enterprises, to optimise their competitiveness in tendering for ITER procurements. For that purpose the national “ITER-NL” was formed together with the FOM Institute for plasma physics and TNO (Institute of Applied Physics).

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Energy

In 2006 NRG started a project aiming at the production of metal-based nuclear fuels loaded with plutonium. The project, which is performed in cooperation with several European partners, aims to contribute to a solution for the issue of nuclear waste, and in particular the presence of long-lived isotopes like plutonium and americium.

Transmutation or burning (and utilisation) of these long-lived components is generally considered an option that could significant-ly contribute to the waste issue solution. To develop this concept worldwide research programmes on the design of new reactors for transmutation and nuclear fuel have been launched. Such programmes mainly have a long-term perspective.

Geert-Jan de Haas, NRG - chemistry: “With the participation in this project NRG significantly contributes to a solution for the waste issue.”

Burning nuclear waste

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Energy

At the same time awareness is growing that it is also important to work on a solution for the more nearby future. The project provi-des in this need by examining the possible contribution of current light water reactors in the waste issue. The project includes among others the irradiation of a number of experimental fuels in a research reactor under light water reactor conditions.Previous studies have mainly focused on ceramic nuclear fuels. Interestingly in this radiation experiment fuels with a metal-lic matrix will be utilized. Metals possess more favourable mechanical properties and have higher heat conductivity values than ceramic materials.

The latter property keeps the temperature of the fuel low, thereby enhancing safety. For the new, metallic, fuels NRG uses depleted molybdenum as a carrier material for the plutonium. Depleted molybdenum is, extremely suitable due to its favourable neutron physical properties. The past four years extensive experiments have been conducted with this material. Urenco in Almelo has succesfully produced this type of molybdenum.

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Energy

Handling nuclear fuel is surrounded by a large number of rules and regulations. To guarantee optimum safety everyone dealing with nuclear fuel needs to have knowledge of these rules, but also of the underly-ing basic concepts, such as criticality and radiation shielding. A reactor or a collection of nuclear fuel rods in storage is critical if per period of time as many neutrons are generated as get lost by absorption and leakage. The critical condition is the normal operation condition of a reactor. As far as radiation shielding is concerned the empha-sis is on keeping the radiation dose on the environment as low as possible. Only a specialised company that can project itself into the specific situation of the client and also has sufficient knowledge, is capable of providing this knowledge of basic concepts. In the Netherlands NRG is the right party for this knowledge transfer. Urenco Nederland in Almelo therefore sig-ned an agreement with NRG for a number of courses in a period of three years, from 2005 up to and including 2007, for Urenco employees from all sections within the company.

Alfred Hogenbirk, NRG - physics: “A criticality expert should start from the unforeseen, but possible situations. He should be able to think “out of the box.”

Criticality course: knowledge transfer at work

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Energy

Subject of these courses is criticality in the broadest meaning of the word. With regard to the basic theory the person giving the course goes into the underlying physical processes, while directly linking them to daily practice. Of course the necessary attention will be paid to Dutch and international regulations. There is also the possibility of carrying out computer simulations for practical situa-tions. Very important here is to exemplify real-life cases, to which students can relate. This approach gives “flesh and blood” to the discussed concepts. The ‘hands-on experience” of the NRG teachers, who are dealing directly with the nuclear facilities on the NRG site, is essential here.

NRG will also organise a course on critica-lity for the Covra staff in Borssele this year, apart from the current arrangement with Urenco.

URENCO The Urenco group has uranium enrich-ment plants in the Netherlands (Almelo), Germany and England and provides nu-clear power plants in over fifteen coun-tries worldwide with enriched uranium. Urenco Nederland also produces stable isotopes, among others for medical and industrial applications, and is involved in the development and production of aerospace products.

COVRAOur society produces millions of cubic metres of waste every year. This in-cludes domestic waste, chemical waste, building waste, but also a relatively small amount of radioactive waste. Nuclear waste should not end up in the environment. Therefore it is important to collect, process and store it. The Covra (Central storage for nuclear waste) in Borssele is the appointed storage facility for radioactive waste in the Netherlands.

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Energy

The conversion process of high-enriched nuclear fuel or HEU to low-enriched nu-clear fuel or LEU (low-enriched uranium) was completed successfully for HFR in spring 2006. The central question during the conversion was if the irradiation conditions could remain at the same high level. Embedding the low-enriched nuclear fuel elements in the HFR core has been gradu-ally carried out since October 2005. The gradual transfer with an increasing number of LEU elements and control rods and a decreasing number of HEU versions was required to comply with strict safety requi-rements and to be able to anticipate possible changes of the radiation conditions.

Studies had to be carried out with reactor physical 3D calculation programmes before conversion could start. Optimisation of the modern LEU nuclear fuel elements, an adapted pattern of nuclear fuel exchange and prolongation of the cycle period with three days to compensate the lower degree of enrichment were important subjects

Dick Ketema, NRG - monitoring: “The challenge of an extremely complicated conversion process has been resisted with distinction, thanks to a sophisticated strategy to maintain a comparable production level.”

Reactor conversion adequately predictable

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Energy

during the analyses. For the development of advanced calculation models that can simulate the conversion, the validation and the testing of model results based on experimental and practical information is important. When models and practice match sufficiently within certain confidence limits, this is deemed valid modelling. In the initial phase preceding the conversion methods and models were validated under HEU conditions by directly comparing cal-culation results with the available measure-ment data. This inspired confidence in the quality and applicability of the models and calculation methods.

The possible effects on various nuclear HFR parameters at the combined HEU/LEU transient cores and the complete LEU configuration made it necessary to monitor the conversion closely by means of actual measurements. Therefore measurements and corresponding validation studies have been carried out before, during and after the conversion process halfway all subsequent

HFR cycles. The results of these measu-rements were very satisfactory with only small differences from five to eight percent between calculation and measurement values. More detailed measurements are planned for the first half of 2007.

Top view of low-enriched nuclear fuel element (LEU)

Reactor core High Flux Reactor

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Safe closing of a salt minePreventing the smuggling of nuclear material Retrievability of high-level radioactive wasteSafe final disposal

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René Huiskamp Product Group Manager

Radiation & Environment

‘Research into a socially acceptable solution for

radioactive waste is of crucial importance for the public

acceptance of nuclear energy.’

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Environment

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In 2002 NRG founded a consortium with the Swiss Colenco Power Engineering AG and GRS (Gesellschaft für Anlagen- und Reaktorsicherheit) from Germany. This consortium, co-ordinated by NRG, acquired the assignment to support GSF (Forschungszentrum für Umwelt und Gesundheit) in preparing the closure of the Asse mine, an old salt mine located approx. twenty-five kilometres south-east of Braunschweich in Germany, where radioactive waste is stored. The assignment concerned the radiological risk assessments necessary for the safety re-port. The analyses did show that the yearly effective dose in the vicinity of the Asse mine will remain low enough to comply with the criteria set by German regulations. Based on the safety report, in January 2007 GSF applied for the license to close the Asse mine.

Arjen Poley, NRG - decommissioning & waste: “The radiological risk assessments for the radioactive waste stored in the Asse mine are an excellent opportunity for NRG to put into practice its knowledge that has been acquired over many years.”

Safe closure of a salt mine

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Environment

In the coming years the consortium will continue to support GSF in answering ques-tions of the licensing authority.

For as long as about 30 years NRG - pre-viously as part of ECN - has been involved in research regarding the safe disposal of radioactive waste in the deep underground. A lot of the experiments investigating the properties of rock salt were carried out by NRG in the Asse mine. In the seventies of last century large amounts of mainly low level radioactive waste were stored in that mine. This waste cannot be removed anymore. At the end of the eighties, during preparations to close the mine, it was dis-covered that groundwater seeped into the mine.

NRG is quite familiar with the Asse mine and has a lot of experience in modelling the effects of groundwater intrusion into a repository for nuclear waste. This led GSF at the end of the nineties to seek NRG’s assistance in assessing the potential effects of the groundwater that seeped into the mine. This assessment led to the conclusion that deliberate flooding of the mine with brine within a couple of years was the most favourable scenario in terms of radiological consequences. That result laid the founda-tion of the present closure concept for the Asse mine.

Salt crystal from the Asse mine

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Environment

To meet the obligations of the IAEA Con-vention, the Latvian government made the commitment to effectively abate the so-cal-led “illicit trafficking”, i.e. the smuggling of nuclear and other radioactive materials from and to Latvia. NRG carried out, in co-operation with the Latvian company SIA Estonian, Latvian & Lithuanian En-vironment (ELLE), a practical exercise to improve the abatement of illicit trafficking.

The exercise took place at a crossing point of the Lithuanian-Latvian border. A delivery van was entering the Latvian territory with a real cesium-�37 source and nuclear mate-rial (a container made of depleted uranium). The alarm at the border gate went off and NRG observers checked whether the correct response procedures were performed, in-cluding the actions by the emergency team of RDC, the national radiation protection authority at Riga, which was called-up for assistance.

Jan van Hienen, NRG - decommissioning & waste: “To make an international project successful it is essential to empathise with the situation on site. This is what NRG employees do, and for this reason they are asked for help more and more frequently.”

Preventing the smuggling of nuclear material

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Environment

Participants of the exercise were RDC the safety police and the border guards (customs). The involvement of the border guards’ headquarters ensured that no-body of the smuggler team ended up on the “black list”. Officials involved in the exercise judged the exercise as being very successful. The final part of the project was the judgement by NRG of the inventory of the emergency centre with a computer, communication and detection equipment. This office is 24 hours per day available for reporting of radiological incidents. Prece-ding to the border exercise, NRG organised a “pre-exercise”, which took place in Pet-ten. ELLE also made demonstration videos, in co-operation with NRG, showing, the correct procedure to handle a radiological incident and the most frequently made mistakes during handling.

Other successfully completed parts of the project are a reorganisation of the RDC emergency response training programme, the preparation of a emergency response manual, a risk assessment of three radiolo-gical institutions and a review of the emergency centre of RDC at Riga. This centre is operational twenty-four hours a day to respond to radiological incidents in Latvia and abroad. The assignment in Latvia has been suppor-ted by the European Commission (PHARE programme).

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Environment

Using nuclear as an energy source is inextricably connected to finding a socially acceptable solution for disposing high-level radioactive waste. NRG is trying to find a suitable and acceptable solution for nuclear waste. This includes amongst others research into retrieval options for waste that has been emplaced in a deep underground disposal facility. For this purpose, NRG participates in the European project Esdred� (Engineering Studies and Demonstrations of Repository Designs). Esdred is a five year project resorting under the Euratom Sixth Framework Programme for Nuclear Research and Training Activities.

The project aims to demonstrate, at an industrial scale, the technical feasibility of some very specific activities related to the construction, operation and closure of a deep geological repository for high-level radioactive waste.

� Thirteen partners from nine different countries participate in Esdred, among which seven waste management organisations and six R&D institu-tions. The project started in February 2004. For more information about Esdred visit the internet site www.esdred.info

Benno Haverkate, NRG - decommisioning & waste:“The ultimate goal of radioactive waste management is finding an acceptable solution that supports our views on sustainable, societal and ethical aspects.”

Retrievability of high-level radioactive waste

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Environment

Besides a special programme for communi-cation, training and knowledge transfer, the activities are subdivided into a number of technical modules. NRG participates in mo-dule 2: Waste canister transfer and emplace-ment technology for horizontal and vertical disposal concepts. For these concepts NRG studies the retrievability principle.

The emplacement of radioactive waste in a geological disposal facility is generally con-sidered without any intent for retrieval. Ho-wever, a position paper of the Dutch cabinet in �993 requires that all waste disposed of in a geological disposal facility must be retrievable. This Dutch position, to be able to retrieve the waste (partly) for whatever reason, is increasingly becoming an impor-tant prerequisite for disposal concepts, also within other European countries.

NRG is the partner par excellence for asses-sing retrievability concepts, because since �993 NRG has gained ample experience by participating in various national and Euro-pean projects. By introducing its expertise in Esdred NRG carried out -in 2006- a desk study to analyse a French disposal techni-que with respect to the incorporation of the concept of retrievability. In this concept high-level vitrified waste will be emplaced in horizontal tunnels of about forty metres length, located in a clay formation at five hundred metres depth. The desk study concluded that in general the design agrees quite well with the present state of the art concerning retrievability.

HABOG interim storage facility for high-level radioactive waste at COVRA, the central orga-nisation for radioactive waste. Dutch waste is stored here for at least �00 years, after which retrievable deep geological disposal is one of the options.

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34

Environment

34

NRG closely co-operates with SCK•CEN from Belgium in the field of safe disposal of nuclear waste that remains after reproces-sing spent nuclear fuel. An important issue concerns the neptunium-237. Research focuses on sequestration of neptunium-237 in Synrock, a durable synthetic rock.

During reprocessing the usable compo-nents, uranium and plutonium, are separa-ted from the spent fuel from nuclear power plants. The remaining waste is vitrified by mixing it with a stable glass form, which is poured into special containers for final storage. Over the last decades the interest in Synrock as an alternative for glass has increased. The chances of ceramic materi-als getting brittle are smaller than for glass materials. Several studies have mentioned the option of neptunium-237 sequestration in Synrock. The research therefore focusses on ascertaining the amount of neptunium that can be incorporated in Synrock.

Safe final disposal

Dr. Marcel den Exter, NRG - chemistry: “Underground final disposal is an integral part of safely employing nuclear energy.”

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Environment

The effects of the radioactive neptunium, its decay products and the stable bismuth at the end of the decay chain, on the durability of Synrock are investigated as well.

In nature neptunium is found in very small quantities by transmutation reactions in uranium ore. The main source, however, is nuclear fission in a reactor, during which neptunium is formed by neutron capture; separation of the neptunium is complex. For this research NRG used a pure neptu-nium-237 solution.

Work with the radioactive neptunium was preceded by tests with curium, an element which is much more easy to handle and which has similar chemical properties. Subsequently the “real work” was done NRG produced curium- as well as nep-tunium-containing pellets. Next year the pellets will be transported to SCK•CEN for the second part of the project during which the behaviour and durability of the material under simulated final disposal conditions will be studied.

HADES, underground research facility for disposal of nuclear waste in clay formations at SCK•CEN in Mol, Belgium.

35

HFR provides high quality molybdenum

Healthier living environment in housing

Development of new PET-isotope

•

•

•

36

Ronald SchramProduct Groep Manager

Fuels, Actinides & Isotopes

‘Millions of patients benefit from our products.’

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Health

NRG produces radionuclides for medical applications in the HFR, like molybdenum-99. Opponents of nuclear reactors state that such radionuclides could also be produ-ced with a cyclotron or accelerator driven systems. They consider MTRs (Materials Testing Reactors) like the HFR therefore superfluous and the replacement of the HFR by the intended Pallas reactor un-necessary. Scientists of NRG investigated last year if molybdenum-99 and daughter technetium-99m could also be produced with a cyclotron. Research showed that this production method is not feasible for molybdenum-99, and that it results in a con-siderably less quality for technetium-99m.

The research results are a breakthrough in the discussion whether or not a nuclear reactor is necessary for the production of molybdenum and technetium, because the question if these radionuclides can be made with cyclotrons as well, has been answe-red in favour of the HFR now. The fact is that hundreds of cyclotrons are needed to replace one single reactor for the production of molybdenum.

Marieke Duijvestijn, NRG - physics: “It is clear now that molybdenum that is produced in a materials testing reactor like the HFR is essential to make better diagnoses.”

HFR provides high quality molybdenum

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Health

The medical world is in fact not interested in the molybdenum-99 itself, but in the technetium-99m that is extracted from molybdenum-99 and has an important place in nuclear diagnostics. Technetium-99m itself can also be produced directly with a cyclotron. It turns out that theoreti-cally two to three cyclotrons are needed to produce enough technetium compared to the quantity obtained from HFR-molybde-num. However, due to the short half-life of technetium, only six hours, yet a lot of cyclotrons are needed in the vicinity of hos-pitals, including the necessary production facilities to turn the semi-finished product into a pharmaceutical product.

Far more important is that cyclotrons produce technetium of a poorer quality. This way patients get administered far more technetium with the same degree of effec-tiveness and scans made by means of this cyclotron technetium are much vaguer. This acts contrary to the wish to obtain qualitati-vely better images that show more, so better diagnostics can be made. In both compari-sons research workers made a very optimi-stic assumption with regard to production in a cyclotron. NRG presented the research results on the medical symposium “Atoms for Health” in December. The occasion for the symposium was ten years of successful molybdenum production at NRG in Petten.

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Health

Almost all materials of natural origin contain small amounts of uranium. One of the daughter products in the decay chain of uranium-238 is radon, a noble gas that can be released out of the material concerned by diffusion and pressure controlled flows. Radon contributes with approx. thirty percent to the average radiation dose in the Netherlands. The National Health Council estimates, that yearly eight hundred people get lung cancer as a result of radon expo-sure.

The main radon sources are construction material and the soil under and around the house. The released radon mixes with the air in the house and decays into a number of short-lived decay products. These could, whether or not attached to dust particles, remain in the lungs and damage the tissue.

Peter de Jong, NRG - individual monitoring: “Research into the mechanisms behind it is essential to maintain the advantageous situation in the Netherlands.”

Healthier living environment in housing

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Health

The Netherlands belongs to the European countries with the lowest concentrations of radon. A number of reasons can be speci-fied, among which the composition of the soil, the usual way of building with well-ventilated crawlspaces and the high ground water level in large parts of the country. The building materials contribute for about seventy percent to the indoor radon concentration. Radon from the crawlspace and from outside are each responsible for approx. fifteen percent.

In new constructions the radon concentrati-on is about thirty becquerel per cubic metre. Due to the lower isolation values of earlier built houses they average higher ventila-tion and therefore a lower concentration of radon. For a living room in a house that was built between �970 and �980 an average ra-don concentration of twenty-five becquerel per cubic metre is taken. For housing before this period the average is about twenty becquerel per cubic metre.

NRG investigates the mechanisms behind it that determine the release of radon from building materials. The uranium content of the building material determines the quan-tity of radon produced. The fraction that is released from the building material is the result of a combined action of a large num-ber of other factors. Within this framework among others the material composition, the moisture content, the pore structure and the distribution of the pore size are important. With this research, which will go on for the coming years, NRG contributes to the developments that could lead to a healthier indoor environment.

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Health

By order of Mallinckrodt Medical, NRG has carried out exploratory research on the optimal production process of the PET-isotope germanium-68 in cyclotrons. PET hereby stands for Positron Emission Tomography. There is an increasing use by hospitals of PET-isotopes, for diagnostic purposes because of the superior image quality of PET scans. The PET-isotope that is mostly used is fluor-18. For a PET-scan the patient is administered a preparation that e.g. includes the isotope fluor-18 that emits a positron. Such a positron particle releases photons in the body which then can be detected outside the body and provides information about what occurs inside the body. A disadvantage of fluor-18 is the short half-life of ��0 minutes, which causes this element to rapidly lose its ability to emit positrons. Due to this fact cyclotrons can only provide fluor-18 to hospitals within a radius of fifty kilometres and not outside. This is the reason why the radiopharmaceu-tical industry is looking for ways to extend the assortment with longer lived PET-iso-topes. A promising candidate is gallium-68. Although the half-life of gallium-68 is only 68 minutes, it originates from the radioacti-ve decay of the far longer lived germanium-

Development of new PET-isotope

Arjan Koning, NRG - physics: “It remains fascinating to see how fundamental knowledge of nuclear reactions contributes directly to decide on the production possibilities of a PET-isotope; a result of direct social relevance.”

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Health

68, which has a half-life of 27� days. If it would be possible to produce germanium-68 and make a gallium generator out of it, also called “cow”, worldwide distribution of germanium cows to hospitals would be feasible. In hospitals medical staff could then “milk” the required gallium-68-isotope out of the cow to administer it to patients.

The central point in the NRG research was a good description of nuclear reactions. With the knowledge available at NRG and the nuclear reaction code Talys that was developed in-house, NRG appeared to be very well equipped to answer the issue of optimal production processes of isotopes. An optimal production process is characte-rised by a maximum activity of the PET-isotope with as little isotopic contamination as possible.

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Cyclotron

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General

High Flux ReactorThe HFR is the core of the nuclear infra-structure in Petten. In May last year NRG started up the HFR for the first time with a core consisting of low-enriched nuclear fuel. With the conversion of high-enriched uranium (HEU) into low-enriched uranium NRG rounded off a long-term process. With this conversion Petten made an important contribution to the worldwide efforts aimed at reducing the use of the proliferation- sen-sitive high-enriched uranium.Natural uranium is won out of uranium ore. Natural uranium contains 0.7 percent

of fissile uranium-235 and 99.3 percent of non- fissile uranium-238. Uranium used in nuclear power plants needs to be enriched. The percentage of uranium-235 for nuclear power plants comes to an average of four percent. Until recently, the HFR used high-enriched uranium or HEU. It contains 89 to 93 percent of uranium-235. Due to this high percentage this HEU is proliferation-

sensitive. This means nuclear weapons can be made with this nuclear fuel. To rule out misuse of HEU the decision was made to use low enriched uranium or LEU. This is uranium with a percentage of fissile ura-nium-235 below twenty percent.

Three phases preceded the conversion: the feasibility study, the technical qualification and the licensing application procedure. The first phase resulted in detailed calcula-tion models for optimising the fuel element design and core reloading pattern. This enabled a minimisation of the flux reduc-tion, i.e. the number of neutrons per second per square metre. The technical qualifica-tion of the conversion in the second phase was established after, among other things, an extensive literature study, testing newly designed LEU fuel elements and thermal and hydraulic calculations. The third phase concentrated on the relicensing process. JRC is the owner of the HFR, but also the licensee. Because it was logical that NRG as operator would be licensee as well, it was possible to hit two birds with one stone by putting the new licence in the name of NRG. The new licence application included the conversion as well.

A reactor stop means a major organisa-tion to the HFR. The autumn stop of the HFR in September was very successful. All intended activities were carried out according to plan, and exactly one hour before the planned period was about to expire, the HFR was started. During the stop two activities took place at the same time: the regular preventive maintenance and the corresponding modifications. With regard to the modification NRG employees exchanged some safety relevant cabling and installed the pressure equalisation lines. The HRF also switched from a diesel-driven emergency cooling pump to an electrical

Modernisation nuclear infrastructure

NRG masterplan Jaap Goedkoop Laboratory

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emergency cooling pump with its own power supply. The working conditions for HFR employees improved even more by providing extra sound reduction measures, such as acoustic barriers and the insulation of pumps and ventilators. The next main-tenance stop is planned for spring 2007.

Jaap Goedkoop LaboratoryThe construction of a new radiological laboratory on the north side of the Hot Cell Laboratories was commenced in August. In this new laboratory NRG is going to carry out various activities which currently are conducted in various facilities on site. The building includes laboratories for radio- chemistry, isotope production and analysis,

material research and a training laboratory for students. Because of the concentration of activities at one location less space is needed and work can be carried out more efficiently. From the viewpoint of safety it also has advantages. The laboratory is named after prof. Jaap Goedkoop, scientific director of the Reactor Centrum Nederland, forerunner of the NRG, from �96� to �984.

PallasThe new reactor, which will replace the HFR after 20�5, is called Pallas. It is called after the Greek Goddess Pallas Athena, the woman that was associated with prospe-rity and peace, and who was a symbol of beauty, wisdom and craftsmanship. Judging by the experiences with the HFR, Pallas will be deployed in broad fields of activity such as: the production of radionuclides, and scientific and technological research and training. The specifications have been discussed with a number of reactor suppli-ers. In the second phase a start will be made with the conceptional design.

Fred Wijtsma, reactormanager NRG: “The complete process of converting the High Flux Reactor to the use of high-enriched to low- enriched nuclear fuel was an excellent piece of work with substantial public relevance.”

Construction Jaap Goedkoop Laboratory

NRG masterplan Jaap Goedkoop Laboratory

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General

Organisation development NRG pursues an active policy in the field of organisation development, in which a training attitude is central. Therefore, over twenty employees participated in a young potentials development programme. Addi-tionally a number of staff members parti-cipated in a development programme. The objective of these programmes is to bring about a fundamental change in the attitude and the behaviour of individual members and in the behaviour of the group, focusing the attention on openness and efficiency. At the beginning of 2007 an evaluation is going to take place, after which a decision will be made on how to conceptualise a potential continuation programme.

TrainingIn 2006 NRG seriously invested in coa-ching her employees by means of personal coaching, career review, assessment and training in the field of customer-orientation.

Modern HR structureSince its foundation in �998, and having evolved out of ECN and KEMA, NRG had many sets of job descriptions to deal with. The management team therefore decided in 2005 to draw up new NRG job descriptions with a qualification profile.The new system guarantees that apart from the knowledge and experience necessary for a job, other values count as well. Mid 2006 each employee received a job description plus qualification profile. In 2007 the quali-fication management system will gradually be introduced.

PensionsIn 2006 the works councils intensively deli-berated about a new pension scheme. After a long and intensive negotiation process an agreement was reached with regard to a new pension scheme.

Human Resources

Ester Brinkman, manager Human Resources: “We invest greatly in education and training of employees within our organisation. This lays a steady foundation for the development of NRG into a learning organisation.”

NRG has 340 employees, of which 60 in Arnhem and 280 in Petten. Over 65% of the employees have a degree from higher vocational education or academic education.

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General

The Works CouncilThe Works Council is of great value to the proper functioning of NRG in her social as well as in her economic objectives. The Works Council represents the employees in consultations with the management. Not only promoting the company’ interests, but also bringing up wishes and opinions as far as company policy is concerned. NRG values a good relationship with its Works Council.

In 2006 the Works Councils of NRG and ECN (Energy research Centre of the Netherlands) collectively made an effort to find a solution for the pension issue. The consultation of the directorates with both Works Councils led to the introduction of a new pension scheme at the end of 2006. Furthermore, the Works Council of NRG was closely involved in the process that led to the introduction of new job descriptions and qualification profiles. The Works Coun-cil also frequently exchanged ideas with the directorate with regard to changes in the NRG organisation, and finally published a positive report.

In addition to all the subjects mentioned the Works Council also discussed other items with the directorate, such as: regulations and management with regard to safety, health, well-being and environment, condi-tions of employment, the ‘unmannerly be-haviour’ code, Pallas, the isotope lutetium, posting of workers, internal communication and financial quarterly reports.

Ferry Roelofs, chairman Works Council: “By means of frequent, critical deliberation and openness in exchanging ideas with the directorate the Works Council contributed in 2006 to decision-making with regard to a number of complicated affairs, such as a new pension scheme and the process concerning the job descriptions and qualification profiles.”

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General

Management systemNRG’s policy is focused on continuity and the execution of our assignments to the complete satisfaction of our customers. The safety of our employees and people living in neighbouring properties is of paramount importance to us. Our management system in which the nuclear regulations, the oc-cupational health and environment regula-tions, together with the relevant industrial norms have been integrated, is an essential part of that. This management system underwent a revision in 2006. With this product NRG internationally leads the way, to such an extent that the International Ato-mic Energy Agency IAEA in Vienna uses NRG’s management system as an example for research institutes operating nuclear installations elsewhere in the world.

SafetyIn order to guarantee the safety of the nuclear facilities at NRG a periodical safety evaluation, in accordance with the licence, is required. For power plants and large research reactors, such as the HFR, an eva-

luation obligation has existed for quite some time now.

Carrying out a safety evaluation with regard to the nuclear facilities HCL (Hot Cell La-boratories), MPF (Molybdenum Production Facility), WSF (Waste Storage Facility), DWT (Decontamination and Waste Treat-ment) and the LFR (Low Flux Reactor) is new and unique in Europe. First of all, the reference basis is determined for a safety evaluation. The basis for the evaluation is the performance level of a new “state of the art” facility. In 2006 a lot of effort was made to determine the scope and detail of the reference basis. In 2007 and 2008 NRG will identify the deviations between the reference basis and the existing NRG facilities. Impro-vement measures will be implemented based on a SAHARA ranking (Safety As High As Reasonably Achievable).

LicencesLicences need to be revised regularly due to changes in activities. In 2006, e.g., a revised licence for the HFR was applied for. Several improvement measures for the HFR were incorporated. The improvement measures will be implemented using the knowledge, and under supervision, of experienced NRG employees. The building of certain infra-structural provisions and optimisation of the operations were included in the application as well. NRG expects the final licence to be issued at the beginning of 2007.

NRG makes every effort for quality, safety and the environment

Jeannot Boogaard, manager Quality, Safety & Environment: “Our management system is used as an example for research institutes all over the world. It is recognition for the work we achieve in this field.”

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General

To dispose of highly radioactive waste in a safe and sound manner NRG intends to build a special repacking facility. For this purpose a notification of intent for En-vironmental Impact Statement (EIS) has been written. Based on this the appropriate authority formulated the EIS-directives. In the meantime work on the design has been commenced, safety analyses are being car-ried out and various licence documents are being drawn up.

To further improve the administrative ma-nagement of all the licences a completely renewed version of the licence information system has been issued, in which all the licences as well as all underlying docu-ments will be included. All actions resulting from inspections of the competent autho-rities will be defined and the system will automatically generate an alert to the person responsible for the action. In collabora-tion with ECN NRG set up and installed a computerised work permit system. The new system will ensure that the measures de-fined to guarantee safe working conditions will be implemented.

Building Discharge (Re)

Permitted (Re)

LFR 0,53 5

HCL 3,32 60

WSF 0,57 20

DWT 0,54 �0

Laboratories 0,02 5

Total (excl. HFR) 4,98 �00

HFR �2,40 �00

Number of reported unsafe situations (POS) since �999

Radiological aspectsIn the year under review the corporate dose of all NRG employees measured 0.30 man.Sv, a small increase compared to former years. This can be largely explained by the work on a heat exchanger in the HFR. The maximum dose measured at the premises of the research location Petten over the year 2006 was �5 µSv, far below the license li-mit of 40 µSv. With regard to the discharge in air and water the following data have been determined. In total 4.9 units of inert gasses, iodine and tritium were discharged in the air, with a licensed quantity of �00 units. The discharge into the water amoun-ted to 94 units, with a licensed quantity of 2000. For the HFR these values are resp. �2.4 units compared to a licensed quantity of �00 units.

(Potentially) Unsafe SituationsIn the figure below an overview is given of the number of reported unsafe situations (POS) since the formation of the NRG. In 2006 39 POS-reports were issued, a consi-derable decrease compared to 2005.

Interior nuclear installations NRG from left to right: HFR, LFR, HCL and DWT

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General

Being the expertise centre for safe ap-plication of nuclear technology, NRG has an important task in the field of adequate and objective information supply. This task has only been growing the last couple of years, as the interest in nuclear energy increases. NRG plays an important role in briefing the media, the public and other parties interested in nuclear energy and the contribution nuclear energy can make to the energy mix.

Apart from giving dozens of radio inter-views NRG received various television crews in 2006, such as SchoolTV and MTV. SchoolTV recorded in the High Flux Reactor (HFR), the hot cell laboratories and in Mallinckrodt facilities. The subjects were molybdenum production and “technetium cows”, and the intention was to arouse primary school children’s interest in tech-nology. MTV shot footage for Coolpolitics, an organisation that develops projects to do with social involvement and knowledge,

focused on youngsters. The broadcasts in November were intended to make young people think about nuclear energy and the place it has in the energy mix. These items coincided with the elections for the Lower House on the 22nd of November.

Daily and weekly papers and magazines contacted NRG on a regular basis last year. Among other requests came in to respond to events abroad, like the nuclear test in North Korea, and various subjects such as ura-nium extraction, CO2 reduction and fourth generation nuclear reactors.

Juliëtte van der Laan, manager Communications: “The demand for objective and actual information about the contribution of nuclear energy in the energy mix has never been that great. NRG has an important social task to provide this.”

Nuclear energy in the centre of attention

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General

NRG presented “Feitendossier Tsjernobyl” (Fact File Chernobyl), published by Nucle-air Nederland and provided herewith the Dutch-speaking regions with an objective publication, composed by the United Na-tions/IAEA, about the Chernobyl disaster that happened exactly 20 years ago in 2006. Furthermore the fully occupied “HFR Open Saturdays” took place, on which per day sixty interested people were guided in the HFR. NRG gave lectures to banks, compa-nies, political organisations and Greenpeace in 2006. After the municipal elections in March, NRG received the new municipal councillors from the region Petten for an excursion in the HFR. The pro-active com-munication policy of NRG also showed from the extent in which the website was visited with hundreds of thousands “page views” in 2006.

But also through the general email address info@nrg.eu an average of ten people per week contacted NRG with their questions. The questioners received an answer from the department COM or an expert within an average of two days.

NRG organised a special presentation in the Lower House on the exhibition “sustai-nable energy”. This exhibition was focused on informing members of the Lower House, political group members, ministers, other staff and visitors of the Lower House on this subject. Of course NRG took care of the subject nuclear energy. NRG caught the public’s eye with a banner slogan: “When Europe turns off the light……more than 50%* of all electricity is generated by nuclear energy - *base load in the EU”. Additionally visitors could test their knowledge of nuclear energy by means of a quiz with multiple choice questions on one of the three displays. Also NRG employees had put a big colour screen with the 3D-presentation of the French/German reactor builder Areva on which they could follow the building of an EPR (European Pressu-rised Reactor). Information material about NRG and nuclear energy was available and over the course of the three days’ exposi-tion every day two NRG experts attended to answer questions.

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General

Financial Statement 2006

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Balance sheet per 31 December 2006 (€ x 1000)

Assets 2006 2005

Fixed assets Tangible fixed assets 1,608 1,550Financial fixed assets 18 18

1,626 1,568Current assets Work in progress 5,�68 4,53�Stock of fuel for HFR 4,274 4,235Accounts receivable and accrued assets �3,�55 6,805Liquid assets 23,495 �4,2�5 46,092 29,786

Total 47,718 31,354

Liabilities 2006 2005

Partnership capital 5,491 5,223

Provisions 11,160 7,556

Current liabilities 31,067 18,575

Total 47,718 31,354

NotesThe Nuclear Research and consultancy Group (NRG) was founded as a general partnership under the Joint Venture Agreement signed by the Energy research Centre of the Netherlands (ECN) and KEMA Nucleair B.V. (KEMA) on �7 September �998, with the partners ECN and KEMA holding 70% and 30% stakes respectively.NRG has developed satisfactorily in the first eight years of its existence. NRG has a good position in the markets in which the company is active, as well as in the relevant international scientific world, which provides a good financial base.

The added value increased last financial year compared to the financial year 2005 by 9.4%, with a rise in revenue of 20%. The operating result of 9�� Keuros is lower than estimated in the budget. The profit and losses include a release of the provision with regard to a deficit on the HFR contract for 2006 amounting to �,505 KEuros.

Including the financial income and changes the year is closed with a positive result of �,275 Keuros.

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General

Profit and Loss Account ( € x 1000)

2005 2004Net operating revenueBasic, Engine- and Partnership Funding 9,�09 8,944State of the Netherlands Contracts and other funding 42,094 34,3�5Increase/decrease in work in progress 2,�63 988Capitalized production costs 59 280 53,425 44,527

OverheadsPersonnel costs 23,884 20,578Depreciation 764 4�4Other operating costs 27,866 2�,306 52,514 42,298

Operating profit 911 2.229

Financial income and charges 364 264

Net result 1.275 2.493

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Profit and Loss Account (€ x 1000)

2006 2005

Profit and Loss Account 2006

On 26 July 2006 the Alkmaar Court pronounced judgement on the case “Vereniging van Oud Medewerkers ECN & NRG (OMEN)” against ECN and NRG. In this case the court ordered ECN and NRG to pay the indexation due with regard to the pensions and paid-up claims already in effect referring to the years 2003, 2004 and 2005. By now the amount due for this has been transferred to the pension insurer.

At the end of December of this financial year an agreement was reached with the Paritaire Commissie Arbeidsvoorwaarden (PCAV - Joint Committee Working Conditions) about the amendments to the pension scheme as per � January 2007. As per that date the pension claims will build up with the Stichting Pensioenfonds ABP. The pension claims built up so far till ultimo 2006 remained free of premium at the pension insurer Centraal Beheer Achmea (CBA).

These claims, except for the claims based on the pension code of �964 (claims with a fixed 3% yearly increase) will be indexed by ECN and NRG on a yearly base. This indexing is conditional and also depends on the net results.

All the above is included in the financial statements.

Parties also came to an agreement with regard to lifting the early retirement scheme. The new rule has been submitted to the tax authorities for approval. So far, the authorities have not responded as regards content.

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It is expected that government contributions for nuclear research will stay at the same level and that activities in 2007 will develop in line with the development in 2006.• Investments will first of all be made to

replace equipment or acquire similar equipment. Besides, specific subsidies will improve the level of analytic equipment substantially. In addition, the construction of the new radiological laboratories will be completed.

• The workforce will not change significantly.

• The turnover and added value will increase compared to 2006.

• With regard to the current liquidity position no external funding is necessary for the normal operations. However, for the financing of the new laboratories external funds might be attracted.

• An agreement was made with EURATOM to operate the HFR in the period 2004 up to and including 2006, based on the supplementary HFR Programme of the EU. The intended establishment of a Joint Undertaking that would regulate the function of the Supplementary Programme regarding the operation of the HFR as per 2007 has been delayed. For this reason the Supplementary Programme 2004-2006 will be prolonged for a maximum of one year for the Joint Undertaking to become effective in the course of 2007. The discussions with potential participants in the Joint Undertaking have led to a number of concrete results.

By transferring the KEMA share in NRG to ECN the way is cleared for an organisation structure with ECN and NRG as independent foundations under a joint holding. This new structure does justice to the desired synergy between NRG and ECN, also according to the judgement of the directorate of NRG, as well as to the own identity of both organisations.

Pedro Sayers, manager Finance & Commercial Services: “NRG has a good position in the markets in which the company is active, as well as in the relevant international scientific world, which provides a good financial base.”

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Organization Chart

From left to right: Pedro Sayers, Ester Brinkman, Eric-Jan de Widt, René Huiskamp, Jeannot Boogaard, Irma Sindorf, Ronald Schram, Juliëtte van der Laan, Rob Stol, André Versteegh, Victor Wichers

Pedro SayersFinance & Commercial

Services

Jeannot BoogaardQuality Safety &

Environment

Juliëtte van der Laan

Communications

Ester BrinkmanHuman Resources

Bob van der SchaafMaterials, Monitoring

& Inspection

Victor WichersPlant Performance

& Technology

Ronald SchramFuels, Actinides

& Isotopes

Board of Directors

André Versteeghdirector

Irma SindorfSecretariat

René HuiskampRadiation

& Environment

Rob StolGeneral director

* Ultimo 2006

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Eric-Jan de WidtIrradiation

Services

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General

Good results, also for non-nuclear applications

It took some getting used to for the newly graduated mechanical engineer, in the circle of nuclear professionals, reactor physi-cians, nuclear engineers and others carry-ing out all kinds of difficult calculations and analyses to design a nuclear power plant, build it and operate it. Many new concepts like redundancy, diversity, physi-cal separation or defence in depth. And always keeping in mind that everything could fail and the installation would have to be designed all over again. All that for one of the main objects of a nuclear power plant: realising safety, safety and safety. For a young engineer that is a fascinating and inspiring environment. Participating in a strong multidisciplinary team where you have to think about many things at the same time while designing and engineer-ing an installation. The tools designers of nuclear installations work with are also often the precursors to tools for non-nuclear industrial branches. Many CAD, CFD, FEM mechanics originate from the nuclear technology. Fifteen years later it was taking some getting used to again for the engineer. In the process industry designs are made for safety, but for a nuclear engineer more

may fail or more effects may occur than anticipated in the design. The reasons are for the greater part “arranged”, but even so, with nuclear eyes things would have been designed differently. The engineer has by now been a member of the External Assess-ment Committee of NRG for a few years, and therefore has a stiff dose of knowledge and experience in sustainable energy, also a lot of warm engineering, an excellent position to stay informed about the progress of nuclear knowledge and skills. And they can be reckoned with. NRG is doing a good job in a number of specialist fields. During EBC meetings this is reported on profes-sionally, competently and enthusiastically, or future plans are unfolded.

The EBC is not afraid to make critical comments, but in general the EBC is very content with the obtained results or future plans. The same goes for the year 2006. Excellent results that deserve compliment-ing, and that also deserve to be applied in non-nuclear areas. Ger Küperschairman External Assessment Committee

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External Assessment Committee Nuclear Research

Ir. J.C.L. van Cappelle, EPZ

Dr. H.D.K. Codeé, COVRA

Prof.dr.ir. T.H.J.J. van der Hagen, Technical University Delft

Ir. P.G.T. de Jong, Urenco Enrichment Company Ltd.

Ir. G.R. Küpers (voorzitter), Kandt Management

Mrs mr. A. van Limborgh, Ministry for the Environment

Dr. P.J.W.M. Müskens, Ministry for the Environment

Ir. G.C. van Uitert, Ministry of Economic Affairs

Prof.dr.ir. A.H.M. Verkooijen, Technical University Delft