Intellectual Capital

Fundamental Scientific Activity

Main purpose of scientific and technological activity of the Company is to promote competitiveness and safety of production.

Scientific and engineering activities of TVEL FC are regulated by the following documents:

• ROSATOM State Corporation Program for Innovative Development and Technological Modernization for the period up to 2020 (in the public part);
• Long-term Program “Nuclear Fuel and Effective Nuclear Cycles at Russian NPP for 2012-2016 and up to 2020”.

R&D composition is defined by decisions of management of the ROSATOM State Corporation and by contract obligations and is subject to revision on an annual basis at the meeting of Scientific and engineering Council No. 2 of the ROSATOM State Corporation — “Nuclear Materials and Technologies of Nuclear Fuel”.

TVEL FC focuses its scientific and technological activities on:

• improvement of characteristics and technology of nuclear fuel production;
• design and technology development of separation-sublimation complex;
• innovative activities in non-nuclear industry.

In 2013, TVEL FC invested in research and development 3,476 mln RUB (equivalent of 2.64% of the FC proceeds (3,945 mln RUB 2012). All R&D yielded results.

The share of proceeds from scientific activities of TVEL FC in overall revenues of the company in 2013 was 4.82% or 6,338 mln RUB (3.53% or 4,301 mln RUB in 2012).

Employees of the R&D complex of TVEL FC provide training and advanced training to the highly skilled personnel in the sphere of radiation chemistry, physics of metals, adaptive metallurgy and solid state physics, fissile and structural metals, metallurgy and technology of rare, scattered and radioactive metals. JSC VNIINM serves as the basis for postgraduate center with specialization in Adaptive Metallurgy and Thermal Treatment of Metals and Alloys; Nuclear Power Units, including Design and Decommissioning; Metallurgy of Ferrous-, Non-ferrous- and Rare Metals; Technology of Rare, Scattered and Radioactive Elements. The Institute is expanding cooperation with the leading educational institutions. JSC VNIINM is the basis for the branch of the 9th Department of National Research Nuclear University MEPhI, complex branch of the department of Mendeleev University of Chemical Technology of Russia and M.V. Lomonosov Moscow State Academy of Fine Chemical Technology. The Institute also has entered into cooperation agreements with the leading industry-specific higher education institutions. As part of these agreements,students undertake internship and training, and write theses on the promising areas of the institute activities.

TVEL FC employees take part in annual international scientific conferences (e.g., “Zirconium in Nuclear Industry and Top Fuel”) and seminars, and organize meetings of scientific and engineering councils of the ROSATOM State Corporation and TVEL JSC.

In 2013, experts of TVEL FC took part in international conference dedicated to VVER fuel (Bulgaria), and in traditional seminars in Ukraine and Czech Republic with participation of representatives of operators and regulatory authorities of the countries involved. The seminars addressed the experience in manufacturing and operation, as well as prospects for improving the fuel and fuel cycle of NPPs with reactors VVER-440 and VVER-1000. A seminar-workshop on heat transfer enhancement in the fuel assembly of the upgraded VVER-1000 (c/w spacer grids, debris strainers, etc.) was held in Obninsk.

Since 2008, TVEL FC has been awarding corporate prize to the teams of inventors of subsidiaries and affiliates of TVEL JSC for excellent production and financial performance, outstanding scientific and engineering performance and considerable contribution to development of the Fuel Company. Six categories of Corporate Prize were awarded in 2013: “Top Engineering and Process Solution”, “Top R&D Prototype”, “Top Solution for the Establishment of New Production Facility”/“Top Solution for Reconstruction and Building”, “Excellent Management Performance”, “Top Business Solution for Development of Entrepreneurship within the Closed Administrative Territorial Unit” and, for the first time ever, “Top Solution to Reduce Negative Environmental Impact”. The Prize is due only for the projects that have been implemented over the previous three years and proved to be economically justified. Twenty-two projects and 107 authors thereof were earned the Prize in 2013.

Modernization and Technical Upgrade of Research and Engineering

TVEL FC continues modernization and development of infrastructure of its R&D complex under the projects of technical upgrade of the enterprises that comprise the complex and in accordance with Federal Target Program “New Age Nuclear Energy Technologies for the Period of 2010-2015 and up to 2020” (FTP NANET).

Objectives of modernization and technical upgrade include:

• enhancement of productivity of labor (reduction of the length of calculation and test stages);
• expansion of opportunities provided by the research (study of new physical and chemical properties of materials, expansion of the properties measurement range, enhancement of precision measurements, etc.);
• creation of innovative materials and technologies to manufacture innovative products.

Technical upgrade under the FTP NANET aims to create national wide information structure, a number of stands and experimental areas for development, manufacture, quality research and certification of structural and superconductor materials for the use in:

• new age nuclear reactors to promote practical implementation of the closed fuel cycle technology;
• magnetic systems at controlled thermonuclear fusion installations (DEMO experimental modules, DEMO reactors and commercial fusion power plants).

Technical upgrade, modernization and retrofitting will primarily cover the research departments to promote thorough and comprehensive study of the structure, physical and mechanical properties of materials on every stage of technological conversion, and to enable other vital material science studies (including nano-level).

To this effect, the following measures were taken in 2013 under the Project JSC VNIINM Technical Upgrade:

• provision of laboratory equipment to scientific divisions;
• technical upgrade of beryllium production line;
• technical upgrade of the instrumentation repairs and maintenance department: provision of modern repairs and calibration tools;
• technical upgrade of the nuclear materials storage;
• modernization of equipment used in non-destructive control of metal and welded joints;
• modernization of the auto shop;
• installation of radiation control system while handling tritium with the help of modern equipment;
• technical upgrade of scientific library, etc.

Innovative Activities in Nuclear Industry

Services and products of FE NFC represent the core activity of enterprises comprising the Fuel Company (~80% of revenues at the end of 2013), and that is exactly why innovative activities in nuclear industry are critical for ensuring long-term competitiveness and sustainability of TVEL FC.

In 2013, the Company spent 1,687 mln RUB (1,779 mln RUB in 2012) on research and development for the purpose of design and improvement of nuclear fuel.

Main tasks of innovative activities of TVEL FC in nuclear industry appear to be as follows:

• design and improvement of nuclear fuel and cores of the Russian design (primarily VVER-1000/1200);
• design of nuclear fuel for Western reactors (PWR);
• design of nuclear fuel for low-capacity nuclear power stations (LNPS) and research reactors (RR).

The Fuel Company focuses on innovative activities to improve properties and technologies of nuclear fuel and cores of the Russian reactors. Design of nuclear fuel for Western reactors, LNPS and RR is an integral element of TVEL FC emerging markets strategy.

In its effort at nuclear innovations, the Company seeks to increase the burn up fraction, life cycle of TVS, functional reliability of nuclear fuel, to justify the performance of fuel in maneuver modes, and likewise justify the performance of TVS in conditions of enhanced output of reactors while ensuring unconditional safety.

Increasing the output of active NPP reactors in excess of their 100% rated capacity appears to be a global tendency with the purpose of increasing the electric power output simultaneously ensuring safe and reliable operation.

Increase of capacity of an NPP power unit is justified due to advanced control methods, improved design methods and the use of design stock of the main equipment of a nuclear installation.

Russia is implementing the 2011-2015 Program of ROSATOM State Corporation for the Increase of Electric Power Output from the Active NPP Power Units, wherein enterprises of TVEL FC take part on the stage of design, justification and introduction of nuclear fuel suitable for power units operating at increased capacity.

Results of Activities on Improvement of Nuclear Fuel Properties and Production Technologies in 2013

Design and Improvement of Nuclear Fuel and Cores for Russian Reactors

• Front End Design TVSA-12. This kind of fuel has more uranium dioxide (10.4% more that currently used by the Ukrainian NPP), which extends the fuel cycle up to five years (rated burn up rate increased up to 68 MW*day/kg while reducing the annual supply of TVS from 42 to 36 pcs).
• Front End Design for the secondary source of neutrons.
• Front End Design for second generation fuel assembly with 7.8 mm pellets without a hole in the center (Generation 2+ fuel).
• Working construction documentation for and physical model of TVS with highly-enriched uranium for physical tests in substantiation of the active zone 14-15-1 active zone with highly-enriched intermetallic uranium fuel for universal atomic-powered icebreaker with WP RITM-200.
• Scientific and Technical Council (STC) No. 2 of the ROSATOM State Corporation “Nuclear Materials and Nuclear Fuel Technologies” recommended to introduce Generation 4 TVS designed on the basis of TVSA-PLUS and TVS-2М. Due to changes in the fuel pellet structure and cladding of the fuel element, the uranium dioxide weight in the fuel assembly grows from 525 kg to 568 kg, which increases the length of the fuel campaign by 8% or reduces make-up volume by 10% over the fuel cycle of 18 months.
• Czech State Office for Nuclear Safety (SUJB) issued a license for operation of TVSA-Т in conditions of the increased thermal capacity of the reactor up to 3,120 MW (104% of rated capacity) at Temelin NPP Unit 1 and Unit 2. The same units reached the rated capacity of 3,120 MW (Unit 1 in September 2013; Unit 2 in August 2013).
• Technical assignments executed for core 14-15-2 with low-enriched cermet fuel and element base for universal atomic-powered icebreaker with WP RITM-200.
• National Nuclear Security Administration (NNSA) of China issued a license for commissioning and operation of TVS-2М in 18-months fuel cycle at Tianwan NPP Unit 1 and Unit 2. A batch of fuel was shipped to PRC in November 2013.

Design of Nuclear Fuel for Western Reactors

• TVS-KVADRAT production processes qualified.
• Front End Design made for inspection and repair equipment at NPP with PWR, etc.

Design of Nuclear Fuel for LNPs and RR

• Neutronic and thermohydraulic properties of the core were studied; additional mechanical tests run on standard design TVS to substantiate core 14-14-1 project with enhanced power capacity for RU KLT-40S FNPP, etc.

2014 Plans for Nuclear Fuel Design and Improvement

• Complete licensing of TVSA-12PLUS with 12 spacer grids and unit head. Full make-up shipment to Unit 3 of Kalinin NPP.
• Front end TVS-2М project with varying designs: c/w spacer grids and shaped fags. Start production and pilot operation of TVS-2М with spacer grids at Unit 4 of Balakovo NPP
• Prepare substantiation for introduction of TVS-2М at first load of Unit 3 and Unit 4 of Tianwan NPP (PRC).
• Substantiation for introduction of Generation 2 fuel highly-enriched within 15-months cycle under capacity increased to 1,485 MW at Paks NPP (Hungary). Manufacture and supply 12 assemblies.
• Manufacture and supply pilot batch of TVS-KVADRAT for test operation at PWR.
• Manufacture inspection and repairs installation for NPP where one unit will be used for test operation of pilot TVS-KVADRAT assemblies, etc.

Project “Proryv”

Federal Target Program “New Age Nuclear Energy Technologies for the Period of 2010-2015 and up to 2020” makes provisions for Project “Proryv” that envisages the design of the new age lead-cooled fast reactors running in a closed fuel cycle. The intention is to create an experimental demonstration energy complex (“the EDEC”) with reactor BREST-OD-300 at JSC SGChE, followed by development of the startup energy complex based on BN-1200.

To provide fuel for BREST-OD-300 and BN-1200, JSC VNIINM designs fuel assemblies and technologies for the production of high-density and thermal conductivity and low thermal capacity nitride fuel. These properties add up to conversion ratio in the core remarkably close to 1, thereby enabling the core to continue operation without any material reactivity charge, while considerably reducing maximum temperature of the fuel and thermal energy reserve therein. All this contributes to higher safety.

Under the Project “Proryv”, the EDEC seeks to create a module that would make fuel (fabrication/refabrication module), an SNF conversion module and RAW conditioning technologies. As far as the conversion module is concerned, JSC VNIINM will handle the hydrometallurgical SNF conversion technology (stage immediately following the pyrochemistry) and preparation of materials for refabrication. For all these technologies, JSC VNIINM is charged with the task of preparing reference data (process description and material flow estimates) necessity for module equipment design.

As far as new age reactors are concerned, the Company intends to design and provide substantiation for the structural materials of fuel elements, absorber elements and fuel assemblies that would ensure economically feasible burn-up rates, and to develop end-to-end technologies for manufacture (from smelting to finished product) and control thereof in pursuance of front-end designs of core elements.

The intention is to conduct operations stage by stage:

• 2014 – project estimates without comprehensive experimental justification;
• 2016 – final version of work design documents;
• 2019 – full experimental justification.

In pursuance of the 2013 objectives, JSC «VNIINM» took part in FTP NANENT tenders and won the right to enter into major 3-years state contracts with the State Corporation ROSATOM:

• Development of Fuel Elements and Assemblies Based on Uranium-Plutonium Close-Packed Fuel for Fast Reactors. Stage 2013 – 2015;
• Development of Prospective Construction Materials for Fast Reactors. Stage 2013 – 2015;
• Development of Technology and Equipment for Uranium-Plutonium Fuel Fabrication for Fast Reactors. Stage 2013 – 2015;
• Development and Substantiation of Technological and Engineering Design Solutions for Hydrometallurgical Conversion at Transformer Unit for Reprocessing of Spent Nuclear Fuel, Fabrication and Refabrication of Close-Packed Fuel Cycle Center (FCC) and Backup FCC Special-Purpose Spent Fuel Reprocessing Line at Fast Reactors of the Integrated Plant. Stage 2013 - 2015.

The following key results were obtained in 2013 under the leadership of JSC «VNIINM»:

Fuel:

• Experimental combined fuel assembly (KETVS) manufactured from nitride fuel elements and placed in BN-600 for irradiation. Fuel elements were made by JSC «VNIINM». KETVS assembled by the State Scientific Center Nuclear Reactors Research Institute JSC (GNC NIIAR JSC). It is the first time ever in Russia that nitride fuel is irradiated in a power reactor. Tests go on.
• Two ETVS with nitride fuel comprising of BREST fuel elements are placed in BOR-60 for irradiation. Fuel elements were made by JSC «VNIINM». ETVS were made by GNC NIIAR JSC. Grand total of three such ETVS are being tested now.
• Two KETVS BN-600 manufactured with nitride fuel elements type BN-1200 and BREST-OD-300. Fuel elements were made by JSC «VNIINM» and JSC «SGChE», which required full-scale application of experimental technology of JSC «VNIINM». KETVS were assembled at GNC NIIAR JSC and are now at Beloyarsk NPP pending Rostekhnadzor permit for installation in the core.
• Joint operation, including acquisition of data about post-reactor studies of nitride fuel at Federal State Unitary Enterprise «State Scientific Center of the Russian Federation – Institute of Physics and Energy» (FGUP GNC RF-FEI) and GNC NIIAR JSC, modeling of main engineering processes at the Russian Federal Nuclear Center – All-Russian Research Institute of Applied Physics (RFNC – ARRIAP), creation of hardware and methodics for thermophysical studies at the National Research Nuclear University MEPhI (NRNU MEPhI), development of TVS design at JSC NNCP, estimates, etc.
• Engineering and fuel quality control flow sheets developed at Fabrication-Refabrication Module (MFR). Joint operations carried out with SverdNIIkhimmash JSC to make conceptual design and layout solutions for main MFR facilities. The operations aim to promote manufacture and are carried out under the Departmental Target Program «Provision of Fuel to Fast Reactors».

Construction Materials:

• Technologies are developed and test batches are made for prototype and reactor tests on fuel elements and TVS in BREST-OD-300 and BN-1200.
• Improved operation properties of ferrite-martensinite steel tubes through optimization of thermal treatment mode in production conditions at STP-ELEMASH JSC.
• Unique results demonstrated for mechanical properties and corrosion resistance of oxide-dispersion strengthened steel.
• Data on the impact of irradiation in BN-600 on radiation properties of fuel element cans or authentic steel consolidated to enable forecasting of their use up to injurious radiation over 110 dpa.
• Reference data collated and presented for steel of various grades to substantiate their use as cladding of fuel elements in BREST-OD-300 and BN-1200 and for database update.

For the performance of the abovementioned operations with respect to construction materials, JSC «VNIINM» organized cooperation and contracted highly skilled subcontractors represented by sectoral enterprises and research institutes: Beloyarsk NPP, IRM JSC, FGUP GNC RF-FEI, OKBM Afrikantov JSC, GNC NIIAR JSC, “Mashinostroitelny zavod”, Elemash-STP Ltd., NRNU MEPhI, GNC RF ITEF JSC, IFM UrO RAN, TGU, Research Center «Kurchatovsky Institute».

SNF conversion:

• Laboratory equipment manufactured for the use in shielded vaults and boxes while checking the main process stages (dissolving, denitration, extraction refining, etc.).
• Pilot project made for prototype production equipment used in the course of processing.
• Adjusted reference data with respect to hardware and process layout of FCC in accordance with selected americium afterburning modes and by the R&D results of the first half of 2013.

Innovative Activities in Non-Nuclear Industry

In order to create new and innovative non-nuclear industries aimed at the development of the second core business, there are projects on four programs of innovative development: “New Energy”, “Machine building”, “Metallurgy”, “Chemistry”.

The Company’s enterprises are the basis for industrial centers created as points of growth of innovative non-nuclear production.

Creation of the new knowledge-based innovative industries at the enterprises of the FC will create more jobs and attract young professionals to form the business environment in the cities of presence of TVEL FC enterprises, improve living standards and attractiveness of the territories.

• basic competencies in each of the innovative development programs;
• competence of the R&D enterprises;
• availability of infrastructure for distribution of new production facilities — buildings, railways, co-generation plants, sewage treatment plants, etc.;
• availability of qualified personnel;
• good manufacturing practice.

Total revenues from sale of innovative projects in non-nuclear sphere in 2013 reached 4,819 mln RUB, which is 19% higher than in 2012 (4,054 mln RUB).

In 2013, TVEL FC invested over 1 bln RUB in innovative projects in non-nuclear sphere.

Since the Russian Federation participates in the international project ITER, TVEL JSC lead the development of a technology and launched the production of superconductors at JSC CMP. Superconductors have been in commercial production since 2009. In the course of development of the technology, its engineers (employees of JSC “VNIINM”) solved a number of profoundly difficult technical problems. Innovative nature, relevance and practical value of these solutions have been confirmed by 18 patents.

What makes the production of superconductors at JSC CMP unique is that they are made at a single enterprise — from the basic material (columbium, columbium-titanium alloy, noil) and to finished product: superconducting strands — wires with less than 1 mm in diameter and up to 14,500 superconducting fibers.

Moscow. December 18, 2013. Ceremony of governmental awards for accomplishments in science and engineering in 2012. Seven representatives of TVEL FC earned state awards for development of technologies and the launch of production of superconductors for prospective sectors of science and engineering

• K.M. Abramushin, JSC CMP Project Manager;
• D.S. Anishchuk, Deputy General Director of JSC CMP;
• A.E. Vorobyova, Cand. Sc. (Engineering), Deputy General Director — Department Director of A.A. Bocharova VNIINM JSC;
• S.M. Zernov, TVEL JSC, “Production of Superconducting Materials” Project Manager;
• Y.A. Kudryavtsev, Senior Vice-President of TVEL JSC;
• V.V. Rozhdestvensky, Senior Vice-President of TVEL JSC;
• K.V. Utkin, JSC CMP, Deputy Shop Manager.

In 2014, JSC CMP completes its participation in the international project ITER as the enterprise intends to have completed all of its obligations by the year end. In 2013, for further development of production of superconductive materials, JSC CMP continued development of structures and technologies for manufacture of superconductive wires used in prospective sectors of science and engineering: tomography, magnetic systems for heavy ion accelerators under the international project FAIR and national project NICA.

Intellectual Property of TVEL FC

TVEL FC owns over 1,600 items of intellectual property.

The objects of legal protection are represented by inventions, useful models, production secrets (know-how), software, databases, trademarks and production prototypes.

Intellectual Property Identification and Legal Protection System as it applies to the items created by subsidiaries and affiliates of TVEL FC is implemented in accordance with applicable laws of the Russian Federation, Standard Industry Methodological Recommendations and by local regulations of the entities comprising the Company.

Functions to identify and secure legal protection of the items of intellectual property created by the enterprises of the Fuel Company are assigned to the Department of Patent and Licensing Work of TVEL JSC, as well as to technical departments, development design offices, groups for intellectual property protection and patent-information departments of TVEL FC enterprises.

In 2013, TVEL FC improved its performance indicators against 2012 by the number of registered items of intellectual property. The Fuel Company acquired intellectual property rights to 183 items: 74 inventions, 12 useful models and 97 production secrets (know-how); filed 69 applications for invention, 14 applications for useful models, 19 applications with respect to software and databases, and 60 applications with respect to production secrets.

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs

TVEL FC Innovative Development Programs