nrg jaarverslag 2011
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NRG jaarverslag 2011TRANSCRIPT
Radiation & Environment: Dealing with radiation in a safe and responsible manner
Irradiation & Development: A breakthrough for the production of medical isotopes
Safety & Power: State of the art techniques and methods, responding quickly to changing market demands
Rob Stol: Year of contrasts, 2011 was an extraordinary year Paul Korting: New directions, new opportunities Ruud Lubbers: Looking back on a turbulent year
Corporate Governance / PALLAS / Communications / Human Resources / Quality Safety & Evironment / Annual accounts
NRGin 2011
Year of contrasts, 2011was an extraordinary year
New directions, new opportunities
Corporate Governance
PALLAS
Looking back on a turbulent year
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ANNUALREPORTCoordination and final editingNRG Communications, Petten
Text contributionsZW3 Communicatie, Art de VosNRG Communications, PettenWith thanks to the interviewees
TranslationSue McDonnell
PhotographyGlow Images, Hein van den Heuvel, Hollandse Hoogte, iStockphoto, NRG, John Oud
Concept and designPWAD, Amsterdam
PrintingWC Den Ouden, Amsterdam
More informationNRG Communications, PettenPhone +31 (0)224 56 [email protected]
“The nuclear accident in Japan hit our sector’s fundamental values. In that same year we celebrated 50 years of safe operations with the HFR,” says Rob Stol.Read more, page 4.
Paul Korting: “For ECN 2011 was a dynamic and eventful year. On the one hand, our sustainable technologies were marketed, on the other hand the main focus was on the change in course.”Read more, page 6.
Ruud Lubbers: “After the events in Japan the world began to reconsider the nuclear renaissance”, was the opening sentence of my piece in NRG’s last annual report. So what was the result?Read more, page 7.
Corporate governance involves accountability to stakeholders, including owners or shareholders, staff, customers and society as a whole.Read more, page 8.
The political will is there and the PALLAS team is now waiting excitedly for the go-ahead to launch its tender. We are ready for the next phase.Read more, page 9.
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NRG annual report 2011
Radiation & Environment: Veilig en verantwoord omgaan met straling [14]
Irradiation & Development: Een doorbraak voor de productie van medische isotopen [18]
Safety & Power: State of the art technieken en methoden, scherp reagerend op veranderende marktvragen [22]
Rob Stol: Jaar van contrasten, 2011 was een bijzonder jaar [P4] Paul Korting: Nieuwe kansen, nieuwe koersen [P6] Ruud Lubbers: We kunnen terugkijken op een bewogen jaar [P7]
Corporate Governance / PALLAS / Communications / Human Resources / Quality Safety & Evironment / Annual accounts
NRGin 2011
On the cover: “NRG is preparingfor the future “Fltr: Karlijn de Groot, consultantdecommissioning and Remediation,Frederic Blom, team manager assetintegrity and Paul Gronland, projectmanager.
Communications
NRG Safety & Power
NRG Radiation & Environment
NRG Irradiation & Development
HumanResources
Quality, Safety & Environment
Annual accountsOrganisation / EBN
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In 2012 the ‘Forward Thinking - Petten 50 years’ campaign received a prestigious international communications excellence prize.Read more, page 10.
NRG is a knowledge-intensive company in transition, where some 400 specialist technicians and researchers are launching themselves on the market. “That means training, learning, recruiting and reorganising.” Read more, page 11.
Safety & Power provides consultancy services for the optimisation of nuclear operations. It has detailed expert knowledge of processes, risks, reliability and the condition of nuclear plants. S&P provides its customers with practical assistance on complex issues like licences and project management, and in the form of in-service inspections.Read more, page 22.
Radiation & Environment is the innovative centre of expertise on radiological protection in the Netherlands. R&E provides international services and supplies knowhow and products that help protect people and the environment from the effects of radioactivity and radiation.Read more, page 14.
Irradiation & Development is an independent nuclear consultanncy and supplier of nuclear data and semi-finished products for medical and industrial isotopes. I&D performes a wide range of irradiation and post-irradiation activities providing a comprehensive package of services for international utilities, radiopharmaceutical companies and research institutions.Read more, page 18.
Irradiation & Development is een onafhankelijk nucleair deskundige en leverancier van nucleaire data en halffabricaten voor medische en industriële isotopen. Met haar nucleaire infrastructuur verricht I&D een scala aan bestralings- en nabestralingswerkzaamheden. Zij is totaal-dienstverlener voor internationale utilities, radiofar-maceutische bedrijven en onder-zoeksinstellingen.Lees verder op pagina 18NRG is a professional organisation in
all respects, says Peter van Balen, the company’s Quality, Safety & Environment manager. ‘A focus on safety is of course an important part of this.’Read more, page 12. 22
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NRG annual report 2011
Year of contrasts, 2011 was an extraordinary year‘The serious nuclear accident in Japan hit our sector’s fundamental values. In that same year we celebrated 50 years of safe operations with the HFR, and were preparing for the future with the new PALLAS reactor.’ 2011 was an extraordinary year.
‘Fukushima showed that nuclear energy is not as safe everywhere as we thought’, is general manager Rob Stol’s clear conclusion. ‘It has taught us that you have to re-examine yourself time and again. Safety is something that has to be demonstrated over and over.’ Even unlikely combinations of possible – or seemingly impossible – events have to be considered. ‘This is not something you can simply take or leave’, says Stol. ‘We already do this in our system of ten-year safety evaluations. And we announced our plans to conduct a stress test even before it became mandatory.’ The robustness study was completed in 2012, and found that NRG’s facilities comply with the highest standards.
From institute to enterpriseNRG set out its longer-term strategy in the year under review. ‘We are changing from an institute into an enterprise’, Stol explains. ‘The three business units in our organisation will cater for markets with their own dynamics.’ Without losing sight of synergy, of course, for the whole is greater than the sum of the parts. ‘Together, we provide such a broad range of nuclear services, products and technologies that we rarely have to refuse a request.’
The Irradiation & Development business unit operates in a global market with just a few large suppliers of irradiation services and reactor isotopes. Radiation & Environment’s market is closer to home. ‘Long-term nuclear studies, radiological protection and radioactive waste are mainly national issues’,
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in 2011 and in 2012 the commercial viability of the new organisation will start to pay dividends.’
says Stol. Now that the Rutte government has set out a clear direction for the future, research for the Ministry of Economic Affairs, Agriculture and Innovation will focus mainly on nuclear safety, handling nuclear waste, radiological protection and future generations of nuclear plants.
The third unit, Safety & Power, mainly supplies services to nuclear plants both in the Netherlands and abroad. ‘This is a market based on trust and long-term relations with individual utilities and authorities’, he says.
The NRG organisation was made ready in 2011, according to Stol, and in 2012 the commercial viability of the new organisation will start to pay dividends.
PALLASThe construction of the new PALLAS research and production reactor is crucial for NRG’s future. ‘We are going to do this’, Stol reassures us. The most important step has been taken, with an initial high-risk investment in licences, tendering procedures and design details. ‘Both central government and the provincial authority have provided 40 million euros worth of funding’, he says. Financing the construction of the new reactor will be no problem, since
NRG has a sound business case. ‘We got the PALLAS project organisation up and running in 2011’, Stol says. ‘We are now ready for the next phase, and are aiming for completion in 2022.’
ConcernsDespite all the focus on the future, serious concerns remain about the legacy of the past. The issues of index-linking the pensions of current and retired staff and the processing of ‘historical‘ radioactive waste at the site could cause serious financial problems. ‘They could even jeopardise the continuity of NRG’, Stol warns.
NRG and ECN are consulting with all stakeholders and claimants to try and find a sustainable solution. ‘We will have to find a technical and financial solution to the waste issue together with our parent organisation ECN’, he says.
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Despite these concerns Rob Stol believes the prospects are good. ‘We achieved good results in 2011, and the tide is in the business units’ favour’, he says. ‘I predict demand for nuclear services will grow on all fronts.’ He points to the effects of more stringent safety requirements and regulation since the Fukushima accident.
‘All work for NRG!’ And the proportion of electricity generated by nuclear plants is set to grow worldwide. ‘NRG is anticipating this by expanding its activities on the Chinese market, for example’, Stol says. The demand for irradiation services is also likely to remain high. ‘Just think of the demand for medical isotopes’, he points out.
NRG is therefore making plenty of investments. PALLAS has already been mentioned, and the new hall and office building at the Arnhem site are now in use. ‘Plus we have started updating security at the Petten nuclear complex’, Stol adds.
Good prospects are a wonderful thing, of course, ‘but you can’t turn them into results without highly motivated staff in the right jobs. I want to thank all NRG staff most sincerely for their contribution to the company’s result, and wish them all the best in 2012,’ says Stol.
Future
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NRG annual report 2011
New directions, new opportunities
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For ECN, the mother organisation of NRG, 2011 was a dynamic and eventful year. On the one hand, our sustainable technologies were marketed in collaboration with the industry. On the other hand, similar to NRG, the main focus was on the change in course. Both mother and daughter are going to the market to promote their merchandise and to earn money.
I am proud of the performance we have achieved in our particular areas. NRG is now the world’s largest producer of medical isotopes. Every day, over 24,000 patients are treated with isotopes produced by NRG for use in diagnostics, therapy and pain relief. And ECN supplies technology that is used in 60% of the solar panels produced worldwide. This helps prevent five million tonnes of carbon emissions every year. Our innovations are making the world a better place!
companies, however, I do have concerns. There is the issue of whether our pensions should continue to be indexed-linked, as Rob Stol mentions in his contribution. Another cause for concern is the accumulated ‘historical’ nuclear waste still stored at our sites, for which a financial and technical solution must be found.
To end on a positive note, I should also like to mention a third ‘common issue’ that is highly topical right now: the construction of PALLAS. We have taken a major step towards achieving this, which is good news for the world. And also for our unique site in the dunes: high-tech infrastructure carefully blended into the surrounding environment, that will guarantee a future for top-quality jobs in this part of Noord-Holland province.
“I am proud that technology supplied by ECN is used in 60% of the solar panels produced worldwide.”
Our contribution is even more effective thanks to our close collaboration with industry, the authorities and other research institutes. Involving them in our research at an early stage enhances our effectiveness.
New strategyEffectiveness is vital, for the world is changing at a dizzying pace. This changing world urgently needs innovative solutions and smart applications for societies with growing energy and healthcare needs. Both nuclear and sustainable technologies are vital if those needs are to be met. We must respond to these global demands if we are to exploit opportunities for both NRG and ECN. The two companies are therefore working in line with the government’s innovation policy, helping the Netherlands retain its position among the world’s leading economies. A firm basis in the country’s leading sectors policy provides the best guarantee of international recognition for our knowledge, technology and attitude.
As head of the parent company, I should like to express my appreciation of the commercial performance achieved by our daughter NRG. Looking at the issues currently affecting both
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‘After the events in Japan the world began to reconsider the nuclear renaissance’ was the opening sentence of my piece in NRG’s last annual report. So what was the result?
Several countries like Germany decided to get out of nuclear energy altogether, while the United Kingdom, the United States and Finland are going full steam ahead with the construction of new nuclear reactors, and other countries are still hesitating. All nuclear plants in Europe have undergone a stress test. Extra safety and security measures have been taken. In our country, Delta decided for financial and economic reasons to postpone construction of a second nuclear plant. So the reconsideration of the nuclear renaissance has produced a mixed picture.
These developments and government austerity measures mean NRG needs to renew its strategy. In response, the company has started sharpening up its commercial policy, pressed on with its ongoing internationalisation and adapted its organisation. After several years of preparations, the next phase of the PALLAS project can commence, now that central government and the provincial authorities have committed funding. This is extremely good news for all patients who need treatments that use medical isotopes from Petten, for research to further enhance safety and for efforts to reduce radioactive waste. It is also great news for NRG, which will now be able to consolidate its position on the global market.
The introduction of this new strategy, the construction of PALLAS and continual adaptation to rapidly changing circumstances have placed great demands on the staff of NRG. Based on my experience as chairman of the Supervisory Board over the past few years, I have every
Looking back on a turbulent year
confidence that the management and staff of NRG will again be able to strengthen the company’s position as a leading provider of nuclear services in 2012.
On behalf of the entire Board, I should like to express my admiration and appreciation for their efforts.
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Image from PALLAS ambition note.
‘I have every confidence that the management and staff of NRG will again be able to strengthen the company’s position as a leading provider of nuclear services in 2012.’
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NRG annual report 2011
The Dutch corporate governance code (the ‘Tabaksblat Code’) has been in force since 2003. It provides guidance for the executive board, on accountability to the Board of Supervisory Directors and on the position of shareholders. The code applies to publicly listed companies, but NRG is happy to comply with it. Based on European directives, it includes dozens of rules on matters such as the duties, responsibilities and procedures of executive and supervisory directors, and on pay formulas and levels of pay.
Corporate Governance‘Corporate governance involves accountability to stakeholders, including owners or shareholders, staff, customers and society as a whole.’
Corporate governance is not a voluntary matter. The European Commission has issued a directive on it, and the Netherlands has a corporate governance code for publicly listed companies, based on the Tabaksblat Code. ‘Although NRG is not listed on the stock exchange, we do stick to the code wherever possible’, says Dietrik Emmens, Financial Manager at NRG. ‘We assign responsibilities to individual managers, and hold them accountable. They ultimately take responsibility for their own share of our corporate governance. So we want a management culture that is compatible with this.’
Anyone who does not conform must explain where they are deviating from the agreed procedures, and why. ‘The governance culture at NRG makes it impossible for key figures to secretly use resources in an improper manner, or abuse their position or mandate in the organisation in any other way’, says Emmens.
ResponsibilitiesThe managers who shoulder this responsibility meet once every two weeks in the NRG Business MT. ‘This includes the General Manager, the Business Unit Directors and me, in my role as Financial Manager.’ The General Manager, who is also head of the Business MT, has a whole range of responsibilities. ‘The strategic multi-year plan sets out our long-term vision’, says Emmens. ‘The short term is dealt with in the annual plan and the budget, which guide the operational plans and financial
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targets for the coming year.’ The planning & control cycle consists of monthly reports that are discussed with senior management. ‘This means forecasts are adjusted three times a year, producing what we call the Latest Estimates 1, 2 and 3.’
‘Every manager shoulders part of the responsibility for corporate governance.’
The General Manager is also responsible for compliance with legislation, risk management and the company’s finances.
The partners in Stichting ECN are responsible for supervising the day-to-day running of the company. ‘They keep their finger on the pulse through quarterly consultations, quarterly reports and through their specific powers and mandates’, explains Emmens.
Unaffiliated expertsThe Supervisory Board operates at a slightly greater distance, in roughly the same way as the Board of Supervisory Directors in a listed company. ‘They are unaffiliated experts who supervise our general operations,’ Emmens explains. ‘The members come from a range of backgrounds and are appointed for a fixed term.’ The Supervisory Board assesses the annual budget and accounts and makes recommendations on fixed and variable pay. ‘Our external accountant also audits NRG’s finances, of course, and approves the annual accounts.’
Finally, there are external government supervisors who monitor the company’s licences. The most important for NRG is the Nuclear Energy Service (KFD, part of the Ministry of Economic Affairs, Agriculture and Innovation). ‘It monitors compliance with the terms of our Nuclear Energy Act licence, which is also an important part of our system of internal control’, says Emmens.
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All the ingredients are in place to start tendering‘The political will is there and the PALLAS team is now waiting excitedly for the go-ahead to launch its tender. We are ready for the next phase.’
The words of Alex Schoenmaker, PALLAS project manager since 1 October 2011. ‘After the technical project preparations, the focus is more on project management now’, he says. ‘This is important for the next phase, when the contract for the new reactor will be put out to tender, and we will be applying for a licence to build and operate it.’
MilestonesA number of important milestones were reached in 2011. The functional specifications – a document setting out exactly what the reactor has to be able to do – were completed. ‘The specifications received a good assessment from a leading engineering consultancy,’ Schoenmaker continues, ‘which means that we can expect some good quotes from potential contractors’.
and organisations have given their views on how PALLAS should be incorporated into the dune landscape. They have been included in a booklet setting out recommendations. These suggestions will be considered in the tendering procedure. Finally, the team has laid a firm basis for a management system, to ensure the project is managed effectively.
Financial supportThings are pretty exciting right now. In January 2012 NRG learnt that the government and Noord-Holland provincial authority are prepared to provide financial support for the project, on certain conditions, which are currently being finalised. ‘We won’t be able to go full steam ahead until that is sorted out.’
The dedicated project team is ready and waiting for the next phase. The team now has eight members, so one of the first steps will be to bring it up to full strength by more or less doubling the numbers. The tendering procedure for the ‘Owner’s Engineer’ (NRG’s engineering consultancy) and the ‘Licensing Engineer’ (for the drafting of an EIA) can also be launched soon.
PALLAS will be a modern facility where safety will come first in all respects. ‘PALLAS will ensure that we can keep
‘Things are pretty exciting right now!’The project team is also ready to enter into talks with the Ministry of Economic Affairs, Agriculture and Innovation about the licence applications. Local residents
treating patients with medical isotopes from Petten for the next 40 to 60 years. It will also allow the Netherlands to continue to contribute to top-class international technological research.’
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NRG annual report 2011
‘As a nuclear services specialist, NRG provides expert, factual information on nuclear technology and its broad range of applications. We also believe it is important to keep investing in good contacts with the public at large concerning our day to day operations and nuclear facilities.’
Communications manager Juliëtte van der Laan mentions three important themes from 2011 to illustrate NRG’s social responsibility. ‘The most obvious is of course the nuclear disaster in Fukushima, which elicited a deluge of questions from the public’, she says. On the positive side, last year
we celebrated the fact that it was exactly fifty years since our High Flux Reactor (HFR) was first commissioned. And thirdly, we set out plans, in consultation with the local community, for its successor, PALLAS. We want to make sure the new reactor blends into the dune landscape at Petten.’
Press and public information servicesIn March 2011, in particular, NRG’s press and public information services were right in the spotlight. ‘In the weeks following Fukushima, NRG experts made more than 500 media appearances’, says Van der Laan. These were closely coordinated with other parts of the
Contributing to society
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‘We believe it is important to keep investing in good contacts with the public at large concerning our day to day operations and nuclear facilities.’
Dutch nuclear industry. ‘It was a very busy period, as we had to cope with these extra activities on top of our ongoing work’, she explains. NRG also had to answer 150 other questions from journalists, while continuing to publish its usual press releases and research results.
Regional collaborationFollowing the government’s decision to go ahead with PALLAS, and to locate it in Noord-Holland province, NRG got together with the local authority, central government, local residents and representatives of regional interest groups to look at how best to blend the new reactor into the landscape. ‘We feel it is very important that we listen to the community’s views on how such a major construction project at our unique location should fit into the landscape.’ This led to a visual quality plan which will be incorporated into the specifications for the design.
The celebrations surrounding the 50th anniversary of the HFR in November were very special. Queen Beatrix visited the reactor and attended a symposium on its benefits to society. She also received a copy of a special anniversary publication. ‘We made a film for the public to mark the anniversary, on 50 years of pioneering work, collaboration and innovation involving the HFR in the Petten dunes’, says Van der Laan. ‘It can be viewed at www.petten50years.eu. The official premiere was in Zijpe town hall.’ In 2012 the ‘Forward Thinking – Petten 50 years’ campaign received a prestigious international communications excellence prize.
Queen Beatrix visited the reactor and attended a symposium on its benefits to society.
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NRG is a knowledge-intensive company in transition, where some 400 specialist technicians and researchers – many of them highly educated – are launching themselves on the market. ‘That means training, learning, recruiting and reorganising.’
In 2011 NRG set out a new business strategy. ‘NRG’s structure has been adapted to the new strategy’, says HR manager Ester Brinkman. ‘The business units are now leading and the executives provide support. This has had a major impact on HR policy. It is strategically important, because without the right, properly qualified, motivated staff, there wouldn’t be any NRG.’
Commercial skills and procedures will become more important. Ester Brinkman believes NRG still needs to take some major steps, ‘but we are well on the way. We have already been working on it for a few years, and we are getting steadily better at it. The people and the organisation are both moving in the right direction.’
Of course she always sees room for improvement. ‘It is difficult to recruit people with technical and commercial talent and the appropriate management skills’, she says. ‘And when you do find the right people, it’s difficult to keep them.’
Training, learning, recruiting and reorganising
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‘It is strategically important, because without the right, properly qualified, motivated staff, there wouldn’t be any NRG!’
At 3.75%, sickness absence at NRG is below the national average. The company remains ambitious, and is changing the role of its healthy and safety service and the way it deals with incapacity for work. NRG has agreed these matters with its new health and safety service in Petten, and the service it provides will be further adjusted to meet NRG’s needs.
Developing talentThat is why NRG is taking a good look at its terms and conditions. ‘And at the structure within which talented staff are able to develop’, says Brinkman. ‘In 2011 we focused on defining the duties and responsibilities of the I&D business unit. The R&E business unit has also been reorganised.’ Step by step, NRG is readying itself to achieve its strategic commercial goal: to cater even better for the demand for nuclear services from the energy market and healthcare sector.
The day to day work of the organisation has not been forgotten alongside all this focus on the commercial. ‘Back in 2010 we launched a project on safety and professionalism,’ says Brinkman ‘and in 2011 the MT and staff at I&D took part in workshops to determine what they expect of each other in terms of safety and professionalism. This produced a set of ambitions and priorities for the safety culture and the structure in which the organisation operates.’ Brinkman believes this will help NRG strengthen its core values.
‘Finally, I should like to underline once more the fact that our staff are of strategic importance’, stresses Brinkman. ‘We invest a lot in their development and in the organisation. That produces benefits, and we have found that it supports the corporate strategy.’
Gemiddeld aantal FTE en medewerkers in 2011:
FTE Employees373 400
NRG National average3.75% 4.00%
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At the end of every quarter NRG informes with a press release about all unusual events reported to the governement, despite the size, the risk or endangerment. The following events have been reported:
Beginning of January 2011: A faulty valve in a flushing pipe for vacuum tanks caused radioactive iodine to be released during a cleaning operation. The raised iodine concentration triggered an alarm, and the Hot Cell Laboratories were evacuated. The incident did not lead to any staff exposure, and no radioactive iodine escaped the laboratory.
June 2011: Four consignments of medical isotopes were shipped to the US in a container whose Dutch licence had expired. As soon as this became clear, shipping was halted and a new licence application was submitted. Shipping was able to resume after a few days.
November 2011: An underpressure alarm was activated as a transport container was being coupled. The process was halted and checks were carried out. No radioactivity was released in the cell or in the laboratory.
2 January 2012: Due to a measuring error, an increased concentration of chlorine was falsely recorded in the secondary cooling water.
16 January 2012: Raised tritium levels were detected in a groundwater sample from the reactor site. The investigation of the cause is ongoing.
Unusual events
Report and learnNRG makes it clear to people who report dangerous situations that it is pleased with their alertness. ‘It enables NRG to improve prevention of real errors or accidents,’ says safety manager Peter van Balen. The company will continue to encourage reporting over the next few years. ‘Holding workshops and showing our appreciation for people who do not simply keep quiet when they see room for improvement helps us make staff more engaged and leads to greater confidence in our organisation.’
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NRG is a professional organisation in all respects, says Peter van Balen, the company’s Quality, Safety and Environment manager. ‘A focus on safety is of course an important part of this,’ he points out. NRG is also transparent on matters like the environment and security. ‘We will be focusing particularly on the latter over the next few years.’
quickly. It also means that we learn better, and more, from dangerous situations.’
SecurityControl of the security organisation passed from ECN to NRG on 1 January 2011. ‘This was the last step towards responsibility for nuclear safety’, says Van Balen. ‘Shortly afterwards we took on two members of staff to take security to a higher level.’ They will ensure, among other things, that a security policy is introduced for the whole of NRG. A quick scan highlighted the biggest priorities. ‘The physical security of nuclear plants will be zoned to upgrade it to international IAEA standards’, Van Balen says. ‘We will also comply with new national regulations on security at nuclear plants.’
The nuclear zoning operation commenced in late 2011. ‘The Hot Cell Lab is the main focus, because of its relations with the United States’, says Van Balen. ‘This is one of their conditions for issuing an export licence for nuclear materials.’ NRG has also entered into a contract with a security organisation. ‘It includes performance indicators for the deployment of security guards, which are becoming increasingly important for nuclear zoning.’
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Safety, security, quality and the environment
‘Greater focus on security.’
NRG is focused on all aspects of personal and process safety at all times, and in all places. Management Team workshops on safety awareness were held in 2011 to reinforce this effort. ‘The MT considered questions like: how can we ensure that every employee is aware of his role in safety, both inside and outside the organisation?’ says Van Balen, ‘and: what is the role of management in this?’.
This led to plans for several specific actions. ‘Staff at one business unit have since attended a similar workshop’, says Van Balen. ‘The results are already becoming apparent, as we have had more reports of potentially dangerous situations.’ Van Balen realises that this sounds paradoxical – more reports, and yet greater safety awareness. ‘But it suggests to me that people now realise that things need to be reported.’ It is not that things are becoming less safe, simply that record-keeping is improving.
The system for registering reports is being reviewed. ‘It’s is a tough one, because the new system has to help us learn from potentially dangerous situations’, Van Balen explains. Pending the new system, a whole range of changes have already been introduced, such as good, firm arrangements between staff and line managers about who is responsible for what. ‘This ensures that things are taken up and dealt with more
Quality assurance policyThe current ISO 9001:2008 certificate expires in May 2012. ‘Last year we decided to adapt the management system to the primary processes at NRG’, says Van Balen. ‘We want to renew our certification, based partly on the results of the five-yearly audit of the organisational, staffing and administrative aspects of safety.’ The audit is one of the conditions of NRG’s nuclear licence at Petten. ‘The audit showed that, despite our high level of safety awareness and good operational safety, there was still room for improvement in our management system.’ Van Balen thinks the new management system will be ready in March 2013.
Environment and radiological protectionNRG also gave its environmental management system a boost in 2011. ‘We began by rounding off a number of outstanding action points, and redesigning the inspection regime’, says Van Balen. An anomaly was found in the baseline measurement for the improved groundwater monitoring programme. In accordance with NRG procedure, this was reported to the government and communicated in our press releases. ‘Groundwater measurements will be taken more frequently for the time being’, says Peter van Balen.
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NRG annual report 2011
NRG Radiation & Environment is the innovative centre of expertise on radiological protection in the Netherlands. ‘We help our customers deal with radiation in a safe and responsible way,’ says R&E’s new business director Jeanke van der Haar. Radiation & Environment provides international services and supplies knowhow and products that help protect people and the environment from the effects of radioactivity and radiation.
2011 was a turbulent year for R&E. ‘A change in our structure now means we operate closer to the market,’ says Van der Haar. A necessary step, he believes, because he has noticed a growing demand for help with handling the risks of ionising radiation. ‘We need to cater for that demand right now!’
The Radiation & Environment business unit (R&E) provides products and services for the safe handling of radioactive substances and ionising radiation.
‘A change in our structure now means we operate closer to the market, we need to cater for demand right now!’
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Market-oriented innovationTo do this effectively, his business unit has had to adapt. ‘First, there is a clear need for market-oriented innovation’, he says. ‘Competitors are entering the market with new technologies. In the longer term that could pose a threat to our existing portfolio and our position as market leader.’Existing clients are also becoming more cost-conscious in response as budgets shrink. ‘This is particularly apparent in the healthcare sector,’ says Van der Haar, ‘but that also means opportunities for us. This is another reason for adapting: we are anticipating future developments with a “worry-free” and full-service strategy.’
NRG’s brand new business manager comes from aviation industry, so he is familiar not only with the pressures of the market, but also with the strict regulations and safety culture that is a key feature of the nuclear sector, too. Van der Haar has overseen the introduction of a new organisational structure at R&E that should allow it to achieve all its ambitions. ‘The main reason for the organisational change is to enhance turnover, satisfaction and customer value by moving closer to the market’, he explains. ‘Basically, it’s about creating and using opportunities.’
The unit’s sales and marketing capacity has been enhanced with the appointment of business managers for the Healthcare, Process Industry and Nuclear Industry sectors, who have been given
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NRG annual report 2011
responsibility for sales and results in these sectors of the market. Furthermore, the organisation has been simplified, with the previous six operational clusters now reduced to four. ‘This has brought similar processes together in a single team’, says Van der Haar. ‘Better knowledge sharing has led to more exchange between different areas of expertise. These synergies benefit innovation. And ultimately our overheads should fall.’
The unit continues to focus on its staff, of course. In 2011 the VCA safe operations certificate was renewed, and Van der Haar is keen to improve staff satisfaction in his unit. ‘More communication between management and workfloor, with more room for staff input.’
At the same time, however, he realises that the real work has yet to begin. ‘We’ll be focusing on client contact and market information. The reorganisation is aimed mainly at a long-term improvement in our products.’
Reducing dosesNRG’s dosimetry service has been calculating, measuring and recording the personal radiation doses of some 50,000 registered staff in the Netherlands for years. Scientists at R&E continuously explore new ways of reducing the radiation doses to which nuclear workers are exposed. ‘One way of reducing it is to change the way you plan high-risk work in the vicinity of radiation fields,’ says Van der Haar, ‘or to improve the shielding of radiation sources. We have had a lot of practical experience with both.’ There is also potential for growth outside the Netherlands. ‘But we will have to beat existing local competitors by innovating.’
in Fukushima. It was also used by people travelling to and from the affected area, including journalists and service providers. A dredging company working off the coast of Japan was supplied with a monitor to check local food, and NRG experts travelled to Japan to take measurements on behalf of a shipping company. Companies importing goods from the area around Fukushima also came to NRG for help, and R&E is still monitoring and analysing imported goods.
Radioactive waste2011 saw the start of preparations for the commissioning of a highly innovative system for characterising radioactive substances. ‘I’m expecting great things of this system’, says Van der Haar. ‘There are stockpiles of radioactive waste all over the world, and they’re going to have to be cleared up some time.’ The system, which NRG developed itself, is now ready to be marketed. Its key selling point is its ability to analyse radioactive waste rapidly and accurately. ‘In much more detail than existing systems’, he says, proudly. ‘We take many measurements, producing a great deal of data which is processed immediately to give customers a rapid, detailed picture of how contaminated their waste is.’ It can then be separated and sorted into high-level, intermediate-level and low-level waste. ‘This limits the amount of high-level radioactive waste, which is the most expense to process and store and has the biggest impact on the environment.’ The system will be commissioned in 2012.
A start was also made on preparations for a major Dutch study of final storage options for high-level waste in 2011. This research programme, known as OPERA, is to explore the options and level of support for the retrievable storage of radioactive
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NRG’s dosimetry service has been calculating, measuring and recording the personal radiation doses of some 50,000 registered staff in the Netherlands for years.
Contact:Jeanke van der Haar, +31 (0)224 56 [email protected]
FukushimaOne new development in 2011 was the ‘Radiation Helpdesk’ which NRG set up for anyone with questions about the events
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waste in geologically stable underground layers. ‘We will be playing an important role in this, contributing our expertise, and collaborating with the authorities and COVRA, the Vlissingen-based organisation that is responsible for nuclear waste’, explains Van der Haar.
Prospects for growthIn operational terms, R&E had a good year in 2011. ‘A substantial part of our turnover came from decontaminating materials from the process industry, in particular’, says Van der Haar. Notable contracts included the decontamination of material from an on-shore gas production site in Poland, and guidance on the dismantling of a test space for jet engines at a Ministry of Defence facility.
To identify opportunities for growth, in 2011 NRG invited its clients to a special event on radiological protection in hospitals. ‘We talked to clients about the services we currently provide, and we asked for feedback about what they would like to see us do in the future’, says Van der Haar. ‘This information will allow us to introduce market-oriented innovations. After the event NRG helped a big new clinic shield some 70 new radiological facilities. Our experts advised them to shield not only the walls, but also the ventilation systems and ceiling, to protect people and the environment from ionising radiation.’
The medical sector is clearly making increasing use of cyclotrons for nuclear treatments. R&E is adapting its services to accommodate this trend by offering training in the use of the equipment and help with licence applications, safe operations and shielding.
Van der Haar believes there are still prospects for growth, despite the financial belt-tightening in the market. ‘The pressure from legislators over nuclear safety, the radiation load on staff and the storage and reduction of radioactive waste will remain high’, he says. ‘This will generate greater demand for specialist “worry-free” nuclear services. And that’s something we’re very good at.’
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NRG annual report 2011
Using its extensive nuclear infrastructure, I&D performs a wide range of irradiation and post-irradiation activities, providing a comprehensive package of services for international utilities, radiopharmaceutical companies and research institutions.
‘2011 saw a breakthrough for the production of medical isotopes’, says business director Ronald Schram. After years of producing below cost price, there is now agreement at OECD level on market reform. ‘We will now move step by step towards producing molybdenum on a full cost basis.’Production of medical isotopes will no longer be seen as a sideline. ‘Given their importance for global healthcare, it’s now a core business’, explains Schram.
This has now been acknowledged by the authorities and the radiopharmaceutical industry.
Good news for NRG and all other producers of medical isotopes. ‘We can finally factor the costs of investments, radioactive waste processing and expensive back-up capacity into our prices’, says Schram. What is more, no one is keen to see a repeat of the isotope crisis precipitated when several old reactors had to be decommissioned unexpectedly and simultaneously. ‘This happened several times over the past few years, and it had a negative impact on the treatment of seriously ill patients all over the world.’
NRG Irradiation & Development (I&D) is an independent nuclear consultancy and supplier of nuclear data and semi-finished products for medical and industrial isotopes.
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Marathon productionIn that sense, too, 2011 was a unique year for I&D. The HFR, which was repaired in 2010, is performing
well, and after a successful in-service inspection was declared fit for a marathon production run. ‘For the first time in three years we produced to full capacity’, says Schram. ‘We are back to our old standard, in terms of both quality and volume.’Schram believes the market is buoyant, and no lasting damage has been caused by the repair time. ‘That also applies to NRG itself’, he continues. ‘We managed to get through a difficult period and now we can concentrate on performance again. That is what our clients have come to expect of us: few technical faults and top-quality results.’
All the old clients are back, and I&D has even experienced some growth. ‘Especially in production of molybdenum and iridium’, says Schram. The thousandth lutetium production run was another
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‘The fact that we have been achieving around a hundred lutetium productions a year for the past ten years shows the success of this isotope, which also has medical applications.’
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NRG annual report 2011
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We’ve managed to achieve a tolerance in sustained irradiation that is unparalleled anywhere else in the world.
minus ten degrees. It’s like manoeuvring an oil tanker. Not so difficult in open seas, but sailing into a canal requires specific skills that not everyone possesses.’
The HFR needs to be handled with this high degree of precision for clients who want to perform lengthy, and therefore costly, experiments to enable them to draw conclusions about the future behaviour of materials in nuclear plants. ‘Their licences can depend on it’, Schram points out.
In this context, we should mention that I&D also supplies nuclear data with specified uncertainty margins. ‘NRG made a name for itself in this field in 2010, and over the past year we have built on our leading position’, says Schram. ‘We can slowly but surely conclude that the entire nuclear sector, from reactor builders to radiopharmacologists, are working with data that we collect, enrich and supply.’ NRG’s growing reputation in this field has led to some valuable follow-up contracts. ‘Ranging from Total Monte Carlo propagation to the simulation of nuclear processes.’
Stress test and non-proliferationIn the year under review I&D also felt the impact of the accident in Fukushima. ‘In June 2011 we made a voluntary start on a stress test to establish how robust our reactor will be in the event of extreme external events like major flooding’, says Schram. The IAEA also performed a planned inspection.
milestone in 2011. ‘The fact that we have been achieving around a hundred lutetium productions a year for the past ten years shows the success of this isotope, which also has medical applications.’ NRG is one of the leading suppliers of lutetium.
Another piece of good news that bodes well for the future is the initial investment in PALLAS, preparations for which were made in 2011. ‘We are already working on a market projection for 2022, the year when PALLAS should be commissioned’, says Schram. ‘We expect two-thirds of I&D’s business to consist of isotopes by then. We want to move on to products with more added value. Over the next few years, besides supplying semi-finished products, we will be focusing on innovation and the development of actual medical applications. In some cases we will do the work ourselves, and in others we will do it in co-production with partners in the medical sector,’ explains Schram.
PrecisionOne highlight of 2011 was the further improvement in the precision of HFR irradiation. ‘We’ve met all the specs, and continue to improve,’ Schram says proudly. ‘We’ve managed to achieve a tolerance in sustained irradiation that is unparalleled anywhere else in the world.’ A margin of plus or minus 25 degrees Celsius is quite normal for sustained irradiation of targets. ‘We now achieve margins of plus or
Contact:Ronald Schram, +31 (0)224 564 [email protected]
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‘This all came on top of normal activities, of course. The robustness test was a major project for us, which took at least five or six man years.’ The results were sent to the Nuclear Energy Service in February 2012. ‘The study found that the nuclear installations in Petten meet all the safety requirements of the licence, and are capable of withstanding a range of extreme weather conditions and earthquakes.’
The preparatory work needed to ensure production meets the targets for low enriched uranium also deserves a mention. ‘The United States is really exerting pressure for non-proliferation measures with its Global Threat Reduction Initiative’, says Schram. ‘President Obama recently reiterated his intentions at the summit in Korea.’ NRG is collaborating on this effort. ‘Our reactor fuel is already made of low enriched uranium, and we plan to switch to low enrichment for our isotope production targets around 2015.’
Process organisationFinally, major steps were also taken towards making I&D a ‘flatter’ and more market-oriented organisation in 2011. ‘Our client relationships used to be fairly diffuse’, Schram explains. ‘A client might have different contacts at several places in the production chain.’ He believes this is not good for the process or for the quality of service. ‘The organisation was also based too heavily on certain areas of expertise. They did not always tie in with clients’ needs.’ I&D has since reorganised its processes on the basis of a matrix model. ‘This has benefited both our clients and our own staff.’ NRG people are committed to projects or commissions, but they can also take on knowledge and skills from each other within their own specialism or discipline. ‘A client no longer needs to look for the right specialist to answer his question. He has a single point of contact who acts as a kind of air traffic controller guiding the question through the organisation until the right answer emerges at the end of the process.’
Schram realises that processes and procedures still require further development. ‘It will take some time before everything runs completely smoothly. We will not be satisfied until our clients are.’
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NRG annual report 2011
was a terrible experience’, says Wichers. ‘Everyone was particularly shocked because it just shouldn’t have happened.’
Although the implications of the failure of the reactors at Fukushima have been felt throughout the nuclear sector, the impact has not all been negative for NRG. ‘Ultimately the accident prompted more demand for consultancy’, Wichers explains. That compensated for the negative effects like the almost immediate shutdown of several German nuclear reactors. NRG managed to keep going in a shrinking German market. ‘Of course investments have been cut to a minimum as the closure the other German nuclear plants approaches,’ says Wichers, ‘but our good relations with German operators are now paying dividends.
S&P provides its customers with practical assistance on complex issues like licences and project management, and in the form of in-service inspections.
A flexible, top-class player in important nuclear niche markets is how S&P’s business director Victor Wichers describes his unit. ‘We offer our customers state-of-the-art technology and methods, and respond quickly to changing demand’, he continues. Besides the nuclear sector, S&P also serves manufacturing and the petrochemicals industry, and helps customers implement infrastructural projects.
The market for nuclear consultancy and services was a turbulent one in 2011. ‘Of course Fukushima
Safety & Power (S&P) provides consultancy services for the optimisation of nuclear operations. It has detailed expert knowledge of processes, risks, reliability and the condition of nuclear plants.
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Almost all of them have chosen to keep NRG on board, even if only to keep competition between service providers going.’ S&P is therefore still the tried-and-trusted provider of in-service inspections and maintenance work for most German nuclear plants.
The nuclear accident in Japan also led to new consultancy work outside the Netherlands. ‘EDF requested our services because of our specialist knowledge of computational fluid dynamics. We used the technique to simulate the behaviour of deborated emergency cooling water in the reactor cores of existing nuclear plants.’ The results allowed EDF to draw conclusions about the safety of its own plants.
Stress test at BorsseleAs a direct consequence of Fukushima NRG helped EPZ, which operates the Borssele nuclear power plant, to implement the stress test required by the
‘Of course Fukushima was a terrible experience, everyone was particularly shocked because it just shouldn’t have happened.’
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NRG annual report 2011
‘Analogue systems in nuclear plants are gradually being replaced by new digital modules’, Wichers explains. ‘NRG knows a great deal about how to establish the quality of software and calculate the failure probability of these systems.’ Only a few organisations in the world have this specialist knowledge, and public authorities have also expressed interest. ‘Even outside the nuclear sector, because vital infrastructural works are also increasingly controlled by digital systems.’
ProBoNRG now has 40 years’ experience of probabilistic safety assessment in the nuclear industry. Thanks to its reputation, NRG is increasingly being invited to supply expert knowledge to other sectors. ‘In 2011 we supported the Netherlands’ infrastructure authority Rijkswaterstaat as it introduced probabilistic management and maintenance at its own agencies, and for contractors.’ If management and maintenance are carried out within predefined parameters, they have no negative impact on failure probability. ‘This is important,’ Wichers explains, ‘because as long as vital infrastructure like storm surge barriers comply with their predetermined failure probability, the safety of the nation is guaranteed at an accepted level. It also ensures compliance with legal requirements.’
NRG transfers its knowledge and skills to contracting builders, managers and maintenance services, too. ‘We teach them how to carry out management and maintenance work within certain
European Union in 2011. ‘We were able to make a substantial contribution to the implementation and reporting of the European stress test, or Complementary Safety Margin Assessment,’ says Wichers. ‘The report was well-received by Dutch and international regulators.’ It was judged to be ‘good and complete’, and Wichers believes it consolidated NRG’s relations with its ‘triple-A’ client EPZ.
This ‘triple-A’ relationship with EPZ is important for NRG’s future. The system of ten-year safety evaluations at Borssele means that the plant continually works to improve safety. ‘We can provide high-quality services for this purpose’, says Wichers. EPZ is also making preparations to apply for its long-term operations licence.
‘A project was launched in 2010 to extend the plant’s operating life to 2034. In 2011 we help EPZ identify what research and investments will be needed.’ Besides these and other, ‘normal’ investments, Fukushima has also led to a number of new projects. ‘We have now signed a framework contract with EPZ to supply specialist capacity to help with this workload’, Wichers says.
One area where NRG has specialist knowledge is in methods for calculating the failure probability of digital systems.
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NRG has traditionally had a good position in the USA because of its excellent reputation for fuel management.
Contact:Victor Wichers, +31 (0)224 56 [email protected]
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conditions, says Wichers. ‘The procedures are now known as the ProBo system.’ If necessary S&P also conducts reviews and design assessments for plants, and for management and maintenance schedules.
FutureWichers is not displeased with the results achieved in 2011. ‘The bulk of our activities were in areas where we have already built a good reputation, like licensing, risk inspections and fuel management,’ he says. ‘But I can also see clear potential emerging in new areas like asset management and computational fluid dynamics.’
Although S&P is bound to feel the negative effects of the Fukushima accident over the next few years, Victor Wichers is upbeat about the future of his markets. ‘Though Germany is to close all its nuclear plants over the next ten years, we still expect to get work on the decommissioning. But of cause we all realise that this work will come to an end at some point.’
On the other hand, Wichers expects the US market to have a positive effect. ‘Work on the stress tests there is only just getting underway in 2012’, he explains. ‘We can offer them the benefit of our experience in Europe.’ NRG has traditionally had a good position in the USA because of its excellent reputation for fuel management. ‘We plan to build our relations with existing customers by providing consultancy on safety assessments’, says Wichers. NRG also has strategic partners in the USA. ‘We can team up with them to provide services for the American market.’
The main growth in nuclear capacity will be in Asia. ‘NRG is actively focusing on the Chinese market, where we already have research connections’, says Wichers. He hopes to build on these, providing inspection services and fuel management services and products.
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NRG annual report 2011
Annual accounts
BALANcE ShEETIn Euro’s x 1,000, as at 31 December 2011 2010
ASSETSFixed assetsIntangible fixed assets 1,080 1,080 Tangible fixed assets 9,379 8,970
10,459 10,050 Current assetsWork in progress 5,985 8,027 Stock of fuel for HFR 9,397 5,732 Accounts receivable and accrued assets 12,215 8,661 Liquid assets 19,661 21,679
47,258 44,099 57,717 54,149
LIABILITIESPartnership capital 6,757 5,400 Provisions 17,098 15,744 Current liabilities 33,862 33,005
57,717 54,149
PROfiT AND LOSS AccOUNT2011 2010
NET OPERATING REVENUEFunding State of the Netherlands 9,345 9,248 Contracts and other funding 59,964 47,042 Increase/decrease in work in progress - 2,216 923 Other corperate earnings 638 457
67.731 57,670 OVERHEADSPersonnel costs 29,784 26,075 Depreciation 1,230 1,270 Other operating costs 34,550 30,510
65,564 57,855
Operating result 2,167 - 185
Financial result 315 169 Result before taxes 2,482 - 16
Taxes - 44 Net result 2,482 28
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Organisation
*Per november 2011
Jeanke van der Haar*Radiation & Environment
Juliëtte van der LaanCommunications
Ester BrinkmanHuman Resources
Dietrik EmmensFinance & Commercial Services
Peter van BalenQuality Safety & Evironment
Rob StolGeneral Director
Ronald SchramIrradiation & Development
Victor WichersSafety & Power
NRG BUSINESS UNITS
The external assessment committee (EBC) assesses NRG’s publicly-funded research programme. The funding comes from the Ministry of Economic Affairs, Agriculture and Innovation, and is intended to safeguard policy priorities (public interests) in the field of nuclear innovation. The EBC meets twice a year. At its autumn meeting NRG presents its programme proposal for the coming calendar year; the results of the previous year’s programme are presented and discussed at the spring meeting. The EBC produces an advisory report for the Ministry, based on its findings, setting out recommendations for the general direction and design of the research programme, its implementation and the reporting of the results.
In 2011 the membership of the EBC was as follows:
G.R. Küpers, Kandt Management (chair)Prof. T.H.J.J. van der Hagen, TU DelftP.J. Buijs, DELTA Technologie & InnovatieDr. P.J.W.M. Müskens, Ministry of Infrastructure and the EnvironmentDr. H.D.K. Codée, COVRAMs A. van Limborgh, Ministry of Economic Affairs, Agriculture & InnovationG.C. van Uitert, Ministry of Economic Affairs, Agriculture & Innovation*H. Rakhorst, URENCO Nederland bvDr. M.W.J. Crajé, EPZA. Versteegh, chair of Stichting KINT for non-destructive testing and inspection
*Succeeded in summer 2011 byDr. A.A. Raghoebarsing
External Assessment Committee (EBC)
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NRG PettenWesterduinweg 3P.O Box 251755 ZG PettenPhone +31 (0)224 56 4950Fax +31 (0)224 56 8912
NRG ArnhemUtrechtseweg 310 – R42 P.O Box 90346800 ES ArnhemPhone +31 (0)26 356 8524Fax +31 (0)26 351 8536
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