Capenhurst Site Integration Project

1 December 2011

An agreement has today been signed confirming the future transfer of the NDA-owned site at Capenhurst to URENCO, which occupies the adjacent nuclear-licensed site in Cheshire.

The transition will result in the disposal of some NDA-owned land on and adjacent to the site, enabling the Capenhurst site to transition to single licensee status. Existing decommissioning and storage operations currently undertaken by Sellafield Ltd will transfer to URENCO.

NDA and URENCO have also signed an agreement for the processing of government-owned by-product/legacy material from uranium enrichment (known as “Tails”) through URENCO’s Tails Management Facility. Most of this material is currently stored at the NDA site at Capenhurst.

It is anticipated that this agreement will reduce NDA’s net liabilities for managing and clearing the site while also paving the way for URENCO to invest in new facilities as required in order to meet future customer demand.

Simon Bowen, Managing Director, URENCO UK commented:
“The transfer of the NDA-licensed area of the Capenhurst site to URENCO will enable the company to fulfil its long-term vision for the development of the site under one licensee. URENCO is pleased to utilise its expertise in the area of tails management by supporting the NDA in the processing of existing tails stock utilising the specialist facilities located at URENCO’s UK site.

“Working closely with the NDA and Sellafield Ltd, a comprehensive transition programme has been established to ensure a seamless integration, while taking into account legal requirements for re-licensing”.

The NDA’s Chief Executive Tony Fountain said:
“For the NDA, this represents a major milestone in maximising the value from our commercial assets and achieving excellent value for the UK taxpayer while reducing NDA liabilities. The agreements also allow NDA to continue discharging its ongoing obligations and reducing hazard at the site.”

A range of legal conditions are now required to be achieved, including the re-licensing of the site and regulatory approval to enable the transfer. It is anticipated that the full legal transfer is likely to take place during 2012.

Notes for editors:

The Capenhurst site is split into two parts. One is owned by the NDA and managed and operated by contractor Sellafield Ltd, while the other is owned and operated by URENCO UK Ltd (UUK). The UUK part of the site is an operational uranium-enrichment facility and is an entirely separate legal and commercial entity.

The NDA site was built in 1952 and ceased operations in 1982. Since then, the focus has been on plant decommissioning, nuclear clean-up and the safe storage of uranium-derived materials, which are a by-product of reprocessing used fuel at Sellafield. The major elements of site decommissioning are now complete though the Capenhurst site will continue to be used as a storage facility for uranic material until 2120.

The site transfer at Capenhurst is the latest in a number of major commercial transactions completed in recent years that seek to release the value from assets held by the NDA. Last year, the NDA and Westinghouse entered into a new arrangement involving the long-term lease of the Springfields fuel manufacturing site, while in 2009, agreement was reached on the sale four plots of land, worth approximately £500 million, adjoining NDA sites.

The agreement with URENCO follows the signing last year of a set of non-binding commercial principles to support the potential transfer, and a period of formal discussions.

Contact

Name: Jayne Hallett
Title: Head of Group Communications
Direct Tel: +44 (0)1753 660 660
Email: jayne.hallett@urenco.com