May, 2006

1. Purpose
      President Tonozuka visited a storage facility for spent nuclear fuel and an underground laboratory, both facilities of the Swedish Nuclear Fuel and Waste Management Company (SKB). He also visited an underground characterization facility of the Finnish company POSIVA, which is developing and is now constructing the final disposal repository for high-level radioactive waste. Mr. Tonozuka attended the 13th meeting of the Group N20, held in Margaux, France to discuss future nuclear energy development. To conclude this trip, he visited the French Atomic Energy Commission (CEA) Research Center of Cadarache to examine the progress at the ITER site.


2. Destinations and Schedule
      - Oskarshamn, Sweden; Olkiluoto, Finland; and Margaux and Cadarache, France
      - May 3 to 13, 2006


3. Summary
3.1 Sweden
(1) SKB Interim Storage Facility for Spent Nuclear Fuel
      Sweden has adopted a policy to have its spent nuclear fuel disposed directly deep in domestic crystalline rock, i.e., an underground nuclear waste repository. SKB was established in 1972 by the four electric power companies that own nuclear power plants, based on the Swedish Atomic Energy Act. SKB has its headquarters in Stockholm and has about 160 employees. Its budget is funded entirely from the electric power charges, which are subject to government approval. There are no subsidies from the national budget. The main facilities of SKB are the final repository for low- and medium-level radioactive operational waste (SFR), the central interim storage facility for spent nuclear fuel (CLAB), and the underground laboratory (HRL).

      CLAB, which is located on the premises of the Oskarshamn Nuclear Power Plant, utilizes a water pool system in a cavern in bedrock situated about 60m below ground. After being cooled for one year in the power plant, spent nuclear fuel is stored for 30 to 40 years in the CLAB. The construction and operation of CLAB started in 1980 and 1985, respectively. The storage capacity of CLAB is about 10,000t, which enables it to accommodate 240t of waste per year. CLAB has about 75 employees, all of whom are professionals. The construction cost was 1,700 million SEK (approx. 25.5 billion yen) in 1985, and the operating cost is 75 million SEK (approx. 1.1 billion yen) per year.

(2) Underground research laboratory of SKB, HRL (Hard Rock Laboratory)
      The scheme for the high-level waste underground repository in Sweden is as follows: a spent fuel rod is placed into a cast iron insert, which is put into a copper plated canister. The canister, with bentonite surrounding its periphery, is then placed into crystalline bedrock at a depth of 500m. For scientific research aimed at the design of a disposal repository and the selection of its appropriate site, SKB started field research on Äspö Island in 1986. At the end of 1988 it was decided to construct an underground research laboratory, the HRL (Hard Rock Laboratory). Presently, the facility has been constructed in three steps: a preliminary survey (1986 to 1990), test research including the construction of underground research facilities (1990 to 1995), and test research using the underground research facilities (from 1995).

      The role of the HRL is as follows: to provide evaluation criteria on repository performance; to develop, test, and evaluate the methods of research, construction, and disposal; to provide staff members with an environment to acquire experience and training, and to attain technical objectives to instill confidence in engineers. In the underground portion of the research facility, a spiral tunnel extends to a depth of 460m. The tunnel has a total length of 3,600m. The main research facilities include living spaces to accommodate 100 persons, main testing sites at depths between 220m and 420m, emergency or meeting rooms, a chemistry laboratory, and a rock visualization system at a depth of 420m. Here, 55 staff members, 45 consultants, and 25 external project managers are engaged. Operating expenses are about 20.0 million SEK (approx. 3.0 billion yen).

      To evaluate an engineered barrier, 50 examinations are presently conducted. These include tests of prototype storage methods, backfill techniques and plugging, canister retrieval, and mini-canister corrosion. The canister retrieval test addresses the technical feasibility of the future retrieval of buried spent fuel. SKB has promised the local community that the HRL will not be used as a repository site, so an RI (Radioactive Isotope) tracer has been substituted for spent nuclear fuel. SKB is planning to apply for construction of an encapsulation plant in 2006.

      Two places, Oskarshamn and Forsmark, have become candidate final repository sites and are now under investigation. SKB is planning to apply for the construction of a final repository site in 2008. After the investigation by regulatory authorities and approval by the government, final disposal will begin in 2017.

      Nuclear related organizations of eight countries are involved in this international joint research; namely, SKB of Sweden, Andra of France, BMWi of Germany, JAEA and CRIEPI (Central Research Institute of Electric Power Industry) of Japan, OPG of Canada, POSIVA of Finland, Nagra of Switzerland, and RAWRA of the Czech Republic. JNC had participated in this joint research since 1991. The SKB/CRIEPI/JNC project agreement of international joint research on nuclear waste management at the underground laboratory, which was created for the joint research, will expire at the end of December 2006. Given the importance of this R&D, however, the parties have reached a basic agreement to continue this cooperation in 2007 and to renew this agreement.

      For public relations (PR) activities, an SKB facility tour (attended by 11,000 visitors in 2005, 1,500 from abroad), a special summer tour, several events, exhibitions, distribution of printed materials, and PR by a Web Site are being continued. As a result of these efforts, including lectures and facility visits for the younger generation and direct dialogues with local residents, public support for nuclear power at the municipal level is approximately 80%.


3.2 Finland
(1) Visit to POSIVA
      POSIVA, established in 1995, is financed jointly by TVO, owner of the Olkiluoto nuclear power plant, and FPHO, owner of the Loviisa nuclear power plant. The financing ratios are 60% and 40%, respectively. The business mission of POSIVA is to perform the final disposal of high-level radioactive waste generated from Finnish spent nuclear fuel. POSIVA has about 60 employees. The budget was 30 million euros in 2005 and 40 million euros in 2006. In 1999, POSIVA selected Olkiluoto as a final repository site and applied for government approval of the site. In 2001, the Parliament endorsed the “Decision in Principle” and granted approval to start the investigation. There are now three steps to follow: performing a detailed investigation and constructing an underground characterization facility (ONKALO), obtaining construction approval in 2012, and obtaining an operating license in 2018.

      The repository concept here is almost the same as that which SKB in Sweden is now contemplating: a spent fuel rod is placed into a cast iron insert, which is put into a copper plated canister. The canister, with bentonite surrounding its periphery, is then placed into crystalline bedrock at a depth of 500m. For the last five years, POSIVA has promoted close cooperation with SKB to accelerate R&D and foster efficiency.

      Based on the POSIVA briefing, the repository cost was estimated to be 2.5 billion euros, which is less than the three billion euros the EPR (European Pressurized Water Reactor) construction would cost. TVO and FPHO have accumulated funds each year for this purpose. They have accumulated 1.6 billion euros as of 2006 and have confidence the funding will continue for another 100 years.

      Based on site boring research in the Olkiluoto area, excavation began at ONKALO in 2004. As of May 5, 2006, the access tunnel extended 1,042m and is expected to reach the characterization research tunnel depth, 420m, in 2009. The above mentioned construction permission will be applied for in 2012 based on the results of R&D and a design study. The characterization research facilities are planned to be used as a part of the disposal facility in the future. President Tonozuka and other attendees proceeded by car to the end of tunnel excavation site. The gradient is approximately 10%. Tunnel excavation advances 25m to 40m per week. Water leakage is extremely small, which is an advantage here. The excavation work, performed in near darkness and with no permanent lighting, was impressive.

      The public support for nuclear power in Finland increased from 42% last year to 62% this year. The main reasons are attributed to soaring energy prices, anxiety about increasing dependence on Russia for electric power, and global warming concerns. There is support at both state and municipal levels for nuclear power. For example, Olkiluoto and other municipalities have competed to be selected as the final repository site. For PR activities, they organize lectures and tours for elementary school students and promote direct dialogues with local residents, just like SKB. However, as visitor restrictions have been tightened after the September 11, 2001, there are some concerns in the view point of risk communication.

      Regarding research cooperation between POSIVA and JAEA, it should be noted that the possibility of research cooperation between POSIVA and then JNC was once considered. In view of the progressing construction of underground facilities of both Olkiluoto and JAEA, research cooperation between the two organizations will certainly be mutually beneficial. Thus, we agreed to start consultations at the level of personnel-in-charge to finalize a cooperative research agreement.


(2) Visit to the construction site of unit 3 of the TVO Olkiluoto nuclear power plant
      TVO Olkiluoto nuclear power plant unit 3 is the world's first EPR, which the consortium of Framatome ANP of France and Siemens of Germany received an order of the construction. Construction started in August 2005 after parliamentary voting and approval. The plant has the world's largest net electric output, 1,600MW. The design of EPR achieves a high safety level, including advanced systems for management of severe accidents and a double reinforced containment together with improved environmental safety, waste output minimization, a remarkable reduction in the cost of generated electricity. Components including a reactor pressure vessel by Mitsubishi Heavy Industries, Ltd. of Japan and a steam generator by Framatome ANP of France are now under construction.

      Olkiluoto unit 3 is being built at the end of a cape, next to Olkiluoto plant units 1 and 2. About 500 workers from about 20 countries are engaged in the construction. Containment vessel concrete pouring and construction of related facilities are now underway. The lowest part of the inner containment vessel was just completed. Although the completion progress is 20% as of May 2006, the completion remains scheduled for the end of 2009.


3.3 The 13th Meeting of the Japan-France Nuclear Power Experts (N20)
      The meeting was held in Margaux, northwest of Bordeaux, on May 9 and 10. Main attendants were as follows:

France:

Alain BUGAT, Chairman of French Atomic Energy Commission (CEA); Jacques BOUCHARD, the Special Adviser to the Chairman and CEO of CEA; Philippe PRADEL, Director of the Nuclear Energy Division at CEA; Dominique MAILLARD, Director General for energy and raw materials, French Ministry of Industry; Bruno LESCOEUR, Senior Executive Vice President of EDF in charge of International Industrial and Public Affairs; Bernard DUPRAZ, Senior Executive Vice President of EDF in charge of the Generation and Engineering Division; Jacques BESNAINOU, Senior Executive Vice President of AREVA in charge of Treatment, Recycling and Logistics; Bernard ESTEVE, Executive President AREVA - North America.

Japan:

Yumi AKIMOTO, Chief Executive Emeritus of the Mitsubishi Materials Corp.; Tadao YANASE, Director, Nuclear Energy Policy, of the Ministry of Economy, Trade and Industry; Yasuyoshi KOMIZO, Director, International Nuclear Energy Cooperation Division, Ministry of Foreign Affairs; Yuichi TONOZUKA, President of Japan Atomic Energy Agency; Teruaki MASUMOTO, Vice Chairman of Federation of Electric Power Companies; Isami KOJIMA, President of Japan Nuclear Fuel Limited; Masao TAKUMA, Executive Vice Chairman of Japan Atomic Industrial Forum, Inc.; Kiyohiko MATSUSHITA, Chief Executive Advisor on Nuclear Power of Kyushu Electric Power Co., Inc. and Director, Japan Nuclear Technology Institute; Katsumi OTA, Executive Vice President and Director, Nuclear Power Division Manager of Shikoku Electric Power Co., Inc.; Masao NIWANO, Corporate Executive Vice President of the Toshiba Corp.

      The following six agenda topics were discussed: 1) Status of national programs, 2) International aspects of nuclear energy, 3) Future nuclear systems (reactors and fuel cycles), 4) International transportation of radioactive materials, 5) Nuclear energy in the short and medium term, and 6) Report of the Economy working group and Report of the Waste working group. The contents of the discussions are summarized in the following Joint Statement, which was released to the press.

N-20 Joint Statement
1)	The Group N20 of nuclear experts of Japan and France held its 13th meeting in Margaux, France, on May 9 and 10, 2006. During this two days meeting, the experts exchanged information and views on the following topics: status of national programs, international aspects of nuclear energy, future nuclear systems, transportation of radioactive materials, nuclear energy in the short and medium term.
2)	Both parties noted a renaissance of nuclear energy which is a technology competitive, without any greenhouse gas emissions, and which improves global energy security. This advantage should be taken into account through measures for making easier its development such as CDM mechanism of the Kyoto Protocol.
3)	In promoting nuclear development, it is essential that both countries foster understanding from their societies by fully implementing information disclosure. The various nuclear related parties should provide, without fail and always in timely manner, information to the people and especially to leaders and opinion makers, on the effectiveness and significance to society of nuclear power. This should help foster a more positive public opinion. Lively entrepreneurship and a strong sense of responsibility are required from the persons who are involved in nuclear technology development which is the public interests for further development of nuclear power utilization.
4)	On the French side, the following events have been underlined; - for the regulatory framework: - a draft law on the management of radioactive materials and waste which was presented to the council of Minister and will be examined by the Parliament before summer. - a draft law on nuclear transparency and security which defines a new legal framework for the control of nuclear activities. - on the industrial side the decision to build an EPR at the Flammanville site
5)	Concerning the international aspects of nuclear energy, both parties welcome GNEP as a major shift in the US fuel cycle policy and as new initiative to enhance the worldwide development and expansion of nuclear power generation while reinforcing nuclear non-proliferation. This initiative is relying on technical grounds similar to those of GEN IV and both Parties support an international organization of R&D needed for developing nuclear systems and consistent with both initiatives.
6)	The Japanese side explains that in order to develop the FR cycle effectively, it is important to establish the Global Standard and to share its R&D. Sodium-cooled Fast reactor + TRU Recycle System was indicated as the most appropriate candidate. The experts should make an effort to reach a consensus on the technology areas for establishment of the Standard. French president announced on January 5th 2006 that France will launch a prototype of GEN IV reactor to be operational in 2020. The Japanese and French roadmaps for developing future nuclear energy systems are consistent. Both Parties decided to work together in order to harmonize them.
7)	Japan and France both operate industrial scale reprocessing plants. French Party congratulates JNFL for the successful start of Rokkasho-Mura reprocessing plant. JNFL thanks French government and AREVA for their warm support. JNFL has started the long-awaited active test of the reprocessing plant on March 31, and has updated information on the JNFL's fuel cycle activities. JNFL expressed its intent to operate the plant with transparency and to make it a model of peaceful use of nuclear energy following the long tradition of Japan policy. French side presented a proposal for transition between existing plants and future GEN IV systems, allowing energy security, a further optimization of the repository for waste management and proliferation resistance.
8)	French side mentioned that taking into account life extension of its fleet, the plant renewal could start on 2015-2020 and will be based on evolved and mature PWR (EPR). On Japanese side, a nuclear power plant is expected to operate 60 years if the equipment maintenance programs are properly implemented. Japanese government has already examined nine units and confirmed such 60 years of safe and reliable operation. Hereafter, the operation and maintenance system is required that can keep improving the safety culture.
9)	A global framework for nuclear power plant projects is required for developing countries. This framework includes not only education, safety and organization but also consideration of nuclear non-proliferation and environmental protection. Both Parties support the development of such a global framework and will contribute to study of adapted nuclear technology, for instance small or mid size reactors either to produce base load electricity supply (LWR or small modular fast reactor) or to process heat supply (HTR).
10)	The Waste Management Working Group has been efficient to exchange experience on procedures and laboratory results. On the Economy the Working Group has started comparison of both assessments and will continue to present a new analysis on the basis of a common methodology. Discussions on strategy issues led to set a fast reaction link to propose, when needed, a harmonization of the position of both countries.

3.4 Visit to the French Atomic Energy Agency (CEA) Research Center of Cadarache
      The CEA Research Center of Cadarache was established in 1959. More than 4,300 people are working in 450 facilities there. The main research and development items studied are nuclear reactors; new types of nuclear fuels; the safety of nuclear facilities; the processing, storage, and disposal of middle- and low-level radioactive waste; the effects of radiation on plant life (plant eco-physiology and microbiology); and nuclear fusion. President Tonozuka visited Mr. Ikeda, Director General Nominee of ITER organization, and toured the ITER site. As a result of the selection of Cadarache as the ITER project site, the former director of CEA Cadarache, Mr. Pascale Amenc-Antoni, became the director in charge of ITER, and Mr. Serge Durand was selected as the director of CEA Cadarache.

(1) ITER
      Among 400 applicants for the Principal Deputy Director General of the future ITER organization, Dr. Norbert Holtkamp of Germany, who is responsible for the spallation neutron source (SNS) construction at the U.S. ORNL, was nominated. Having an understanding of Garching and Naka site activities, he is preparing a smooth transition for the ITER organization.

      The ITER organization office will be completed by the end of June 2006, and at this time meals will also be available. An international school will be constructed at Manosque as one of the French national schools. The school will provide an opportunity to study all languages of ITER participating countries. Students graduating from this school will obtain the qualifications to enter universities in any of these countries.

      To date, 18 public hearings on ITER have taken place. To attract the ITER project, six Prefectural assemblies around the prospective ITER site have agreed to bear the costs for surrounding area infrastructure maintenance, which is equivalent to 10% of the ITER construction cost. The economic benefits of the ITER site, which were evaluated by economists, were estimated to be three times the investment costs to attract ITER.

(2) CABRI Reactor
      The CABRI facility, meanings of ‘a goatling’ in French which associates the jump of reactor power, began operating by conducting safety tests of nuclear reactors in 1963. More than 35 years, safety tests had been carried out to observe the behavior of fuel during core accidents of sodium loop fast reactors. With the completion of the fast reactor safety tests, for the past six or seven years CEA has been remodeling the CABRI reactor by replacing the sodium loop with a water loop, PWR simulation. Presently, a large-scale renovation is under way to adapt the reactor to the earthquake standards that were amended in 2001. This renovation work will be completed by 2008. About 30 companies are involved in this reconstruction. Basically, CEA both contracts directly with construction companies and conducts schedule control. When the building renovations are completed, reactor core safety tests (LOCA simulations) of a light water reactor (PWR) designed by IRSN are scheduled. The participants of this project are the US, Germany, England, Russia, and ten other countries. As for the JAEA side, the former JAERI concluded its agreement in September 2005.


4. Conclusions

(1)	Both Sweden, which has carried out research at the underground facility HRL (Hard Rock Laboratory) over ten years, and Finland, which is building an underground characterization facility (ONKALO) for the final disposal of spent nuclear fuel, are the world's most advanced countries in the field of geological disposal of high-level nuclear waste. Public support is remarkably high at both the national and the local levels. Well organized and with steady progress, the huge underground facilities and the explanations full of aspiration and confidence presented by concerned personnel were particularly impressive. We are convinced that there is much to learn from the experiences of both countries.
(2)	The construction site of Olkiluoto 3 in Finland is energetic. It has about 500 workers from more than twenty countries. Since it is the first EPR reactor and will have the world's largest output capacity, a huge sum of money was invested. Briefings by the personnel and workers involved were inspired with aspiration and self-esteem. In Finland, the construction of a sixth nuclear power station is being envisioned. In Sweden, research approval for a new nuclear power system was granted by the Parliament. This could be the turning point from a long-held antinuclear energy policy. This visit elucidated a new trend for nuclear energy development in Finland and Sweden.
(3)	JAEA and SKB Sweden have reached a basic agreement to extend the existing cooperation agreement on geological disposal beyond 2007. JAEA and POSIVA Finland agreed to consider continuing a cooperation agreement.
(4)	The Group N20 of nuclear experts of Japan and France held its 13th meeting in Margaux, France, on May 9 and 10, 2006. Both parties recognized a renaissance of nuclear energy development. Technologies that Japan or France has have a competitive edge and would improve global energy security without emitting any greenhouse effect gases. The parties stressed that those advantages should be considered by taking measures to facilitate nuclear energy development in the CDM (Clean Development Mechanism) of the Kyoto Protocol.       Further, both parties welcome GNEP as a major shift in the US fuel cycle policy to develop and expand a worldwide system for nuclear power generation while enhancing nuclear nonproliferation. Both parties support international orchestration of R&D activities consistent both with the development of nuclear power systems and with GEN IV and GNEP.       The Japanese side stressed the necessity of establishing a global standard and sharing R&D activities to effectively develop a FR cycle. The Japanese side stressed that efforts to reach a consensus on technology areas are needed to establish this global standard. The Sodium-Cooled Fast Reactor and the TRU Recycle System were mentioned as the most appropriate candidates. Since the roadmaps of Japan and France for developing future reactor systems are consistent, both parties agreed to work together to provide coherency with their respective projects.
(5)	Concerning the ITER project, Dr. Norbert Holtkamp, from Germany, was nominated as Principal Deputy Director General of ITER organization. Dr. Holtkamp is now working to ensure a smooth transition for the ITER organization.