Nuclear Fuel Assurance

The UK-led Nuclear Fuel Assurance (NFA) proposal emphasises the importance the United Kingdom places on the right of states to utilise civil nuclear energy for peaceful purposes. It featured in the Government’s “Road to 2010” plan published in July 2009.

The NFA is a model for an Agreement between the governments of supplier and recipient states, co-signed by the International Atomic Energy Agency (IAEA), to back up existing or imminent contracts for fuel supplies for peaceful nuclear energy programmes.

An NFA will enable supplier states to provide an additional political assurance to recipient states of a commitment not to interfere in the delivery of commercial nuclear fuel contracts, subject to recipients meeting their international non-proliferation commitments and the conditions set out in the Agreement.
The NFA programme is a direct response to the IAEA request in 2005 for Multinational Approaches to the Nuclear Fuel Cycle (MNAs). Twelve proposals were submitted, including the UK-led proposal for a so-called ‘Enrichment Bond’ (INFCIRC 707). This proposal evolved into the Nuclear Fuel Assurance. The role of the IAEA in the NFA will be to act as an independent and respected advisor and co-signatory.

The NFA is complementary to other MNA proposals that have been put forward, which we hope will provide a full range of options to ensure added confidence in the already reliable international market, and to assure security of supply of low enriched uranium (LEU) to countries entering into or developing their civil nuclear energy programmes.
As such, MNA proposals, including the NFA, will help optimise conditions for the safe and secure expansion of nuclear energy for peaceful purposes. Find out more about MNA proposals.

Background
The 1970 Nuclear Non-Proliferation Treaty (NPT) gives states the legal right to develop nuclear energy programmes for peaceful purposes. Concerns over climate change and the long-term sustainability of fossil fuels have also focused global attention on nuclear power as a means to help address these issues.
The UK believes that nuclear power should play a role in the global energy mix, and we are developing our own nuclear new build programme. A significant number of other states are also now planning or intending to develop nuclear energy programmes.

This has raised concerns within the international community over access to nuclear fuel supplies, and a potential increased global threat from some nuclear fuel technologies, notably enrichment and re-processing, which could be diverted for non-peaceful purposes.
Reliable, uninterrupted access to commercial supplies of enriched nuclear fuel is vital, if states are going to invest in new or expanded civil nuclear programmes for peaceful purposes. Nearly all of the world’s current and planned nuclear reactors will require low enriched uranium (LEU), for fabrication into nuclear fuel rods that are compatible with specific reactors.
So both supplier and customer states are working together in partnership on provisions to ensure that commercial supplies will always be available, and not subject to unwarranted political intervention. This will create confidence that it is not necessary for new nuclear states to take the commercially unnecessary decision to invest large amounts of time and money in developing their own enrichment facilities.

Source:-http://www.fco.gov.uk/en/global-issues/weapons/nuclear-weapons/peaceful-uses/010-nuclear-fuel-assurance/

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