International power company Vattenfall, owned by the Swedish government and with a substantial presence across Europe, said it had secured long term nuclear fuel supplies by signing contracts with French nuclear giant AREVA, Russia's TVEL and Westinghouse, which is based in Pennsylvania.
The contracts, valued at SED 1.2 billion ($130 million) through the period from 2018 through 2025.
The three concluded contracts are in line with the Vattenfall procurement strategy, enabling independence of individual countries and supplies. Vattenfall – which means waterfall in Swedish – is committed to have at least two qualified suppliers of nuclear fuel to each of its reactors. The fuel related production cost accounts for about one quarter of the total cost of production. The new commercial contracts enable enhanced competition and long-term security of supply, Vattenfall said.
“Long-term supplier independence and competitiveness are necessary preconditions for future nuclear profitability and these agreements are key to secure the required production cost,” said head of Vattenfall Nuclear Fuel Per-Olof Nestenborg.
Vattenfall owns 10 nuclear reactors, seven of which are in Sweden – four at Ringhals and three at Forsmark. Three of their reactors – Brunsbuttel, Krummel and a minority position in Brokdorf – are in Germany. However two of those, Brunsbuttel and Krumel have been permanently closed to comply with the nuclear phase out mandates.
In Sweden, according to the company's Web site, two of the company's oldest reactors will operate for 50 years, while the others will run for 60 years before they are phased out.