NND signs SEK3-4 billion Studsvik deal for Norwegian used fuel

Norwegian Nuclear Decommissioning (NND) has signed an agreement with Studsvik for the Swedish nuclear technical services provider to manage used fuel from the former research reactors at Halden and Kjeller. Studsvik CEO Karl Thedéen and NND Director General Pål Mikkelsen signed it in Halden.

Norway holds about 16.5 tonnes of used fuel from six decades of operating nuclear research reactors. The inventory includes metallic uranium fuel, aluminium-clad fuel and experimental fuels. Much of it cannot be stored long term or disposed of in its current form.

Treated fuel stays in Sweden until returned to Norway

The agreement runs until 2055. Studsvik will transport the fuel to its licensed facilities at Studsvik outside Nyköping, Sweden, inspect it and, where required, treat it, including oxidation of metallic uranium fuel, to prepare it for interim storage and final disposal. The treated fuel will remain at Studsvik until it is returned to Norway for final disposal.

A pre-study within six months will define the detailed project plan and budget, with the majority of the work to be conducted over the coming two decades.

Minimum value about SEK875 million

The estimated contractual minimum value is about SEK875 million (USD88.3 million), assuming all fuel has been transported to Sweden by 2035. The estimated total value for Studsvik is SEK3-4 billion. The final value will depend on the scope and budget set in the pre-study and on the work orders NND places, subject to permits in both countries.

A fixed annual fee covers project management, regulatory work, security and the reservation of storage capacity at Studsvik. NND may terminate the agreement after the pre-study with 12 months' notice, during which the fixed fee and minimum volume continue to apply, or after five years with 18 months' notice.

Halden and Kjeller shut down in 2018 and 2019

The agreement builds on more than ten years of cooperation between Studsvik and the Norwegian nuclear sector, including a 2021 contract with the Institute for Energy Technology to treat metallic uranium fuel from the JEEP I reactor at Kjeller.

The research reactor at Halden and the JEEP-II neutron scattering facility at Kjeller were declared permanently shut down in June 2018 and April 2019. Clean-up is estimated to cost more than NOK21 billion (USD2.2 billion) and will last at least 20 years. Earlier this month NND applied to the nuclear regulator to take over the Kjeller facilities.