IFE Annual report 2022 ENG

Research for a better future

IFE Annual Report

2022

Illustration by Grape Architects

There are approximately 300 employees in R&D, divided between the two research divisions ENET at Kjeller, and DS in Halden.

Photo: Espen Solli

About IFE

The Institute for Energy Technology (IFE) conducts research for a better future. Since 1948, we have been a frontrunner in international energy research. The knowledge we have developed has saved the petroleum industry several hundred billion kroner. We have contributed to the development of ground-breaking cancer medicine, new solutions in renewable energy, more energy-efficient industrial processes, zero-emission transport solutions and future-oriented energy systems.

At IFE, we build bridges between research, education and industry. We have extensive infrastructure and full-scale laboratories where theoretical models are transformed into commercial activities. IFE has unique expertise and systems within radiation protection and environmental monitoring of radioactive and chemical emissions. This makes us an important partner for companies that want to research, develop and produce new solutions for renewable energy and medicine using radioactive sources.

The digitalisation of society is seeing the emergence of a new era. IFE has broad digital expertise and contributes to quality assurance and efficiency improvements for customers in the public sector and in trade and industry. When the next chapter in Norway’s history is written, it will be about how we adapt. We must create new and sustainable jobs. At IFE we have already begun – we are conducting research for a better future.

Income statement

Report of the Board of Directors

Nature and location of the business

The Institute for Energy Technology (IFE) was established in 1953 with the objective of conducting nuclear research. Today, the foundation’s objective is to work on a not-for-profit basis for the public good by conducting research and development in the field of energy and other areas where the foundation’s expertise is of particular relevance. The foundation is registered in the Register of Business Enterprises in Brønnøysund, with organisation number 959 432 538. IFE’s premises are at Kjeller and in Halden.

The Board of Directors has seven members. The Ministry of Trade, Industry and Fisheries appoints five of IFE’s directors, while two are elected by the employees. Six board meetings were held in 2022.

IFE’s activity was originally aimed at nuclear research, but there are now several divisions: Research and Development, Radiopharmacy, Nuclear Operations and Safety, and Technology and Properties.

In March 2021, the Storting approved Report to the Storting no. 8 (2020-2021) on the safe decommissioning of Norwegian nuclear facilities and radioactive waste management. The Storting decided that IFE’s nuclear facilities and employees are to be transferred to the Norwegian Nuclear Decommissioning Authority (NND), and determined that the Norwegian government shall cover all necessary costs for the clean-up of nuclear waste. This overarching framework is very important because it provides the requisite conditions for dealing with the important task of dealing with the challenges of 70 years of nuclear operations in Norway while also developing IFE’s other activities further.

Nuclear activities at IFE currently involve the decommissioned nuclear reactors at Kjeller and in Halden, the associated facilities and approximately 200 employees. This division is mainly financed through government grants.

IFE’s nuclear operations, along with the associated facilities and personnel, will be transferred to NND when NND is granted a licence. For years, IFE and NND have been working to 1 January 2024 as the target date for the transfer. However, in the autumn of 2022 it became evident that this would need to be put back due to the requirements that have

to be met before NND can be granted a licence to take over the facilities. IFE is working with NND to set a new date for the transfer.

IFE has established a new organisational structure to enable appropriate development of its other activities. In 2021, efforts commenced to create a group model in which the Radiopharmacy and R&D divisions will be separated out from the IFE foundation and established as separate subsidiaries. As a part of these efforts, the Radiopharmacy division was demerged into the wholly owned subsidiary Agilera Pharma AS with effect from 1 March 2023. The R&D division will be transferred to IFE Research AS. The group now consists of the IFE foundation and its wholly owned subsidiaries: IFE Invest AS, IFE Research AS, IFE Holding AS and Agilera Pharma AS.

Research and Development (R&D)

The R&D division conducts applied research and aspires to be a leading contributor to international research in the fields of energy, the environment and digitalisation. Through its research activities, IFE will build on the UN’s Sustainable Development Goals (SDGs) and the EU’s focus areas related to global challenges.

The R&D division employs approximately 300 staff in two research sub-divisions: ENET (Energy and Environmental Technology) at Kjeller, and DS (Digital Systems) in Halden.

IFE works with national and international research projects.

Photo: Nicki Twang

IFE is a research institute for technology and industrial development and receives core funding from the Research Council of Norway. This is an important source of funding for the research activities, and it gives IFE the opportunity to develop research and expertise within the guidelines for government core funding for research institutes and research groups.

IFE is involved in national and international research projects. Funding is mainly from contracts and contributions to research activities under the auspices of the Research Council of Norway, the EU’s research programmes and industry-funded projects. IFE disseminates knowledge generated from research activities through scientific articles in international journals and other publications approved for the Norwegian Science Index, participation at science conferences and through popular science outlets.

Many of the project applications that IFE submitted to the Research Council of Norway in 2022 were successful. Among the projects awarded to IFE in 2022 were HYDROGENi (a Norwegian Centre for Environment-friendly Energy Research (FME)) and a Green Platform project that focuses on ammonia as a hydrogen-carrying vector for the energy market. In recent years, IFE has put considerable effort into growing the portfolio of EU-funded projects. In 2022, IFE was awarded 15 new EU projects, six of them in a coordinating role.

The research institutes IFE, NILU and NIVA formed the research alliance NORIN in 2022. The alliance is a new, Norwegian heavyweight within energy, environment, climate, civil protection and digitalisation. In the picture from the left: CEO at NILU, John Rune Nielsen, CEO at NIVA Tor-Petter Johnsen, CEO at IFE, Nils Morten Huseby and Minister of Climate and the Environment Espen Barth Eide. Photo: Nicki Twang.

In 2022, IFE was one of eight partners that worked to establish Nemonoor, which is one of two digital innovation hubs in Norway. Nemonoor is a national centre that seeks to increase the use of artificial intelligence (AI) in trade and industry. The initiative stems from EU’s Digital Programme and is part of an effort to put AI research and innovation to use.

IFE has long had a highly regarded research infrastructure with a number of high-tech laboratories. IFE continued this strategy in 2022, and on 30 June a new hydrogen testing centre (Hynor 2.0) was opened. In 2022, IFE also installed a full-scale control room simulator for small modular reactors (SMRs) – the only full-scale research simulator of its type in Europe.

The Halden Project is Norway’s largest, longest running and most international research programme, and has been fundamental to IFE’s work. Until 2020, the Halden Project continued its activities in fuel and materials research as well as safety research, which were not dependent on reactor operation. The decision was made in 2018 to close down the Halden reactor, and the activities within fuel and materials research will be gradually wound down and terminated. In 2021, IFE entered into an agreement with its research partners to extend the original project agreement to the end of 2023 in order to complete this work.

The Halden Human Technology Organization (HTO) Project currently consists of 20 international organizations from 12 different countries, and has a budget of NOK 141 million for the program period 2020-2023, of which Norway’s share is NOK 63 million. Photo: Nicki Twang

Meanwhile, it was also decided to continue the project’s Man-Technology-Organisation (MTO) activities by establishing a new programme under the name ‘Halden HTO Project’, where HTO stands for Human-Technology Organisation. Today, the Halden HTO project involves the work of 20 international organisations from 12 different countries, and has a budget of NOK 141 million for the programme period of 2020-2023, of which Norway’s share is NOK 63 million.

In connection with the transfer of IFE’s nuclear activities to the Norwegian government as represented by NND, some of IFE’s premises at Kjeller will be transferred to NND. This means that several key laboratories and much of the national research infrastructure will have to be relocated. Under the 2022 Revised National Budget, IFE was granted a NOK 120 million government loan to build new laboratories. Work has already started on plans for a new laboratory building at Kjeller.

In 2022, the IFE, NILU and NIVA research institutes formed the research alliance NORIN. This is a new Norwegian heavyweight within the fields of energy, environment, climate, civil protection and digitalisation. The alliance employs a staff of 1000, who focus on knowledge for the transition to a sustainable society and industrial renewal.

Radiopharmacy

In March 2023, IFE’s Radiopharmacy division was demerged into a wholly owned subsidiary named Agilera Pharma AS. The company’s activities are grouped in three sectors: Production, Wholesale and R&D (research and development).

Production involves commercial manufacturing of pharmaceuticals as well as production for clinical trials. The bulk of the turnover is related to contract production of the cancer drug Xofigo for the German pharmaceutical group Bayer. IFE has been collaborating with Bayer for several years on product development and the expansion and construction of production premises and equipment. The manufacturing process is in line with the pharmaceutical authorities’ quality requirements and GMP (Good Manufacturing Practice) regulations.

In addition, Radiopharmacy is involved in development projects with Norwegian and international clients and produces pharmaceuticals that are used in clinical trials around the world. Radiopharmacy also provides quality control services, including sterile testing of radiopharmaceuticals in both the commercial and clinical phases, as well as the development of radiochemical/chromatographic methods.

Radiopharmaceutical Wholesale is a national wholesaler and retailer for radiopharmaceuticals in Norway. Over several decades, IFE has developed unique expertise in the import, export, control and distribution of radioactive pharmaceuticals. IFE controls all radiopharmaceuticals and distributes them directly to the nuclear medicine departments of Norwegian hospitals.

Radiopharmacy has a complete infrastructure involving development expertise, production expertise and facilities, local and global distribution networks as well as infrastructure in the form of licences and permits, accreditation, radiation protection, waste management, physical security and emergency preparedness.

The division has laboratories that are classified both in respect of purity classes in accordance with international GMP (Good Manufacturing Practice) regulations and radiation protection legislation. The division has been granted a permit by the Norwegian Medicines Agency and the Norwegian Radiation and Nuclear Safety Authority (DSA) to conduct wholesale and retail operations with radiopharmaceuticals.

Radiopharmacy has well-established collaborative relationships and close access to clinics and research institutions and to companies of various sizes and in different stages of development at Oslo University Hospital and the University of Oslo.

Market studies show a large potential for radiopharmaceuticals on a global basis. The Radiopharmacy division at IFE is well positioned to take part in this growth, but significant investment will be required. Radiopharmacy is a fully commercial business activity with a higher risk profile than IFE’s other R&D activities. In 2021, in order to develop the radiopharmaceutical potential, IFE started to explore the possibility of demerging the division into a separate company, to facilitate external funding of these activities. The Radiopharmacy division was separated out and renamed Agilera Pharma AS with effect from 1 March 2023.

A proposal for a new regulation of IFE’s property at Kjeller was handed over to Lillestrøm municipality in December 2022, with regulation expected to be decided during 2023. Illustration by Grape Architects

Nuclear Operations and Safety

Nuclear Operations and Safety is responsible for the licensed nuclear facilities, the associated land and 200 staff. In March 2021, the Storting voted to transfer IFE’s nuclear activities to the Norwegian government as represented by NND.

IFE’s main and most important task is to meet the conditions imposed by the DSA to ensure that the facilities meet current requirements. This is a large and comprehensive task, and IFE is working to a set of targets and schedules to achieve this.

Throughout 2022, IFE has been working to a target date of 1 January 2024 for the transfer of activities from IFE’s nuclear facilities and organisation to NND. On 7 October 2022, IFE’s board and management met with the senior management of DSA. During the meeting, DSA explained their assessments of IFE and the conditions that will need to be met before activities can be transferred. After the meeting, it became apparent to IFE’s board and management that the DSA’s requirements would mean a lengthy postponement of the transfer of activities. IFE is drawing up an updated schedule for the transfer of activities.

It is IFE’s opinion that a consolidated national plan of action is required for the clean-up operation after 70 years of Norwegian nuclear activities, to make sure that all tasks are coordinated, prioritised and given proper consideration by all parties and avoid the need for exploratory work on inappropriate or unrealistic solutions. The plan of action must facilitate effective, predictable and safe implementation of the Norwegian regulatory system throughout the clean-up period.

In 2022, the Ministry of Trade, Industry and Fisheries awarded NOK 328.3 million to IFE for the operation of nuclear facilities and NOK 42.0 million for making the nuclear facilities safe. The Ministry has promised IFE a loan of NOK 120 million to relocate laboratories and infrastructure. A total of NOK 2 million was drawn from this in 2022. The financial accounts for IFE’s nuclear activities are kept separate from those of other activities, and they are budgeted at break even.

In 2022, IFE utilised the government funding in accordance with the terms of NFD’s letter of commission.

IFE and the Norwegian government, as represented by the Ministry of Trade, Industry and Fisheries, have negotiated a draft term-sheet that will form the basis for a general agreement about the transfer of nuclear activities from IFE to the State. Until the general agreement has been drawn up, IFE will loyally comply with the intentions of the stipulated conditions.

In recent years, IFE has implemented significant security upgrades at the nuclear plants and protected the information assets, technically as well as organisationally. IFE has initiated a new risk and vulnerability analysis in order to evaluate the measures taken and to set the course ahead. The political security situation in Europe changed in 2022 and this has impacted on IFE and its security at nuclear facilities. This underpins the need for ongoing upgrades to IFE’s basic security. The stricter security requirements have made it difficult to attract resources with the right level of expertise who can also be security cleared.

Technology and Properties

IFE owns a large portfolio of properties at Kjeller and in Halden. The portfolio at Kjeller needs significant investment in infrastructure and upgrading, and the transfer of nuclear facilities to the government means that IFE will lose access to a number of laboratories. IFE’s activities within R&D and radiopharmaceuticals are seeing significant growth, and new laboratories and production areas need to be built in the future. As a key contributor to the communities at Kjeller and in Halden, IFE wishes to develop the property portfolio to facilitate further growth within R&D and radiopharmacy, and to attract other businesses for collaboration.

In 2021, Real Estate was formed as a separate division with a remit to operate and develop the properties further. In 2022, IT was incorporated into the new division, which was then renamed ‘Technology and Properties’. A strategy for the division was developed and adopted in 2022. The main objective is to deliver comprehensive property management services to IFE’s own businesses and other tenants within property management, IT, logistics, security and emergency preparedness. The remit also includes further development of the property portfolio and implementing development projects.

The property portfolio at Kjeller was valued in 2022 as a basis for rental agreements, and a rental agreement has been successfully negotiated with Agilera Pharma AS.

Lillestrøm is growing fast, and Kjeller represents an attractive area for further urban development. Zoning plan proposals for IFE’s properties at Kjeller were submitted to Lillestrøm local authority in December 2022, and a decision is expected in 2023.

IFE’s property portfolio in Halden also has considerable potential for further development. There is a whole new central district being planned in Halden, and IFE will consider where to locate future premises.

The annual financial statements

In 2022, the group’s consolidated turnover amounted to NOK 1 260 million (NOK 1 144 million in 2021), while the IFE foundation’s revenue amounted to NOK 1 257 million (NOK 1 144 million in 2021).

The turnover is at the same level as last year. Government subsidies amount to NOK 451 million of the foundation’s and group’s turnover. The largest share relates to operation and safety of nuclear facilities, while other items relate to core funding and allocations for the Halden Project etc. See also note 3 to the accounts for further details. The group’s and the foundation’s other revenue relates to income from contracts and contributions to research activities, international participants in the Halden Project and the radiopharmaceutical activities. The group’s and the foundation’s research activities are mainly funded through the Research Council of Norway, the EU and partners in industry.

The R&D division reported a turnover of NOK 486 million in 2022 (NOK 410 million in 2021), while the Radiopharmacy division’s turnover was NOK 364 million (NOK 370 million in 2021). Nuclear Operations and Safety reported a turnover of NOK 395 million (NOK 360 million in 2021).

In March of 2023 the Division of Radiopharmacy was split out as a wholly owned subsidiary named Agilera Pharma AS.

Photo: Espen Solli

2022 was a financially difficult year for the foundation, largely due to the challenges associated with the radiopharmacy activities and the extraordinarily high electricity prices. The group shows a loss for 2022 of NOK 26 million (profit of NOK 25 million in 2021), while the foundation shows a loss of NOK 15 million (profit of NOK 24 million in 2021).

The Radiopharmacy division lost an important contract when Nordic Nanovector decided to stop the clinical drug trials of Betalutin in July 2022. This resulted in a considerable loss of income and meant that IFE needed to reduce costs, which led to 22 FTEs being cut in December 2022. The loss of income, combined with the extraordinary costs of reducing staff levels and facilitating the transfer of activities to a separate limited company in 2023, led to an operating loss for the Radiopharmacy division in the 2022 financial year.

The year of 2022 was also marked by extraordinarily high electricity prices. The electricity consumption at IFE’s laboratories and production facilities is considerable. The hourly rates payable for projects funded by the Research Council were set at the beginning of the year and cannot be changed until the following year. The extraordinarily high electricity prices were not expected when the hourly rates were calculated, which has meant that the R&D division reported only a marginal profit for the 2022 financial year.

A net financial loss of NOK 12 million in the subsidiary IFE Invest AS further reduces the group’s net result. This was caused by a realised loss on one of the company’s investments.

The foundation has reported a contingent liability of NOK 13 million which is classified as short-term debt in the balance sheet. This is largely associated with disputed accounts payable and expected contract losses. The liability has been valued at the best estimate based on probable outcomes. The true cost may turn out to be higher or lower than the book value.

As at 31 December 2022, the equity for the group amounted to NOK 424 million (NOK 451 million in 2021), while the equity for the foundation amounted to NOK 382 million (NOK 397 million in 2021). The equity ratio is 44% and is considered good.

IFE has decided to invest excess liquidity in fixed-income instruments. In 2022, as much as NOK 149 million was placed in fixed-income funds. The foundation’s negative cash flow amounted to NOK 26.2 million in 2022, of which investment in assets made up NOK 48 million.

Total bank balances at the end of 2022 amount to NOK 143 million for the group and NOK 125 million for the foundation. Additionally, investments in fixed-income instruments amount to NOK 173 million. The liquidity is considered satisfactory, and the level of liquid assets is sound.

KPMG is the auditor for the group and the foundation.

Financial risk

The foundation aims to keep financial risks as low as possible. It follows from the foundation’s financial management policy that the risk should be as low as possible in respect of normal business operations. The foundation must not be exposed to unnecessary financial market risks, including currency risks. It also follows that excess liquidity can be invested in low-risk fixed-income funds. The latter are exposed to value fluctuations when interest levels change.

Market risk

The group and the foundation are exposed to fluctuations in currency exchange rates, principally EUR, which affect both project incomes and purchasing costs. In 2022, large individual transactions were secured through futures trading. At the end of 2022, outstanding futures transactions associated with the purchase of Euro amounted to NOK 495 000. The futures contracts are not posted in the balance sheet.

The foundation’s portfolio of fixed-income funds is exposed to interest rate variations. At the end of 2022, the foundation has NOK 173.0 million placed in low-risk money market and bond funds. The investments in money market funds amounted to 47% of the total portfolio, while investments in bond funds made up 53%. All investments are in Norwegian fixedincome securities.

Credit risk

Both the group and the foundation are exposed to credit risks associated mainly with accounts receivable and loans. The group and the foundation have made provisions for bad debts to the tune of NOK 5.2 million. There is also a potential credit risk associated with advance payment to suppliers.

Liquidity risk

The group’s and foundation’s liquidity are considered satisfactory. The group’s bank deposits minus tax withholding funds amounted to NOK 113.6 million at 31 December 2022, while the corresponding figure for the foundation was NOK 96.3 million. In addition, the group and the foundation have investments in fixed income funds of NOK 173.0 million. The foundation and the wholly owned subsidiary IFE Invest AS have a cash pool agreement that provides greater flexibility.

Continued operation

Pursuant to section 3(3)(a) of the Norwegian Accounting Act, the Board confirms that the conditions for continued operation are present and that the group’s finances are in a healthy state.

Sustainability

IFE’s vision is ‘research for a better future’, and it follows from the group and the foundation’s sustainability strategy that IFE shall bring added value to society, our partners and customers by developing more sustainable solutions to important societal challenges, whilst also strengthening value creation in Norway. The SDGs form the basis of IFE’s strategy, in addition to the EU’s goal of orientating research and innovation towards finding solutions to global societal challenges.

The research activity within energy, the environment and digitalisation is IFE’s most important contribution to a more sustainable society. Sustainability must form the basis of all the institute’s activities, and its scope includes governance, environmental and social issues.

IFE shall endeavour to incorporate sustainability into all the institute’s activities and daily operations, respect fundamental human rights, provide decent working conditions throughout the value chain, and be a good employer. In order to achieve the SDGs and ensure that they have an effect, IFE must prioritise sustainability in the management system, set annual targets and key performance indicators (KPIs) for sustainability, report annually and transparently on sustainability efforts, introduce a method for calculating sustainability effects in research applications and projects and communicate these effects to clients and institutions that fund research. Training initiatives for must also be introduced to increase managers’ and other employees’ awareness of IFE’s SDGs and ensure goal achievement.

As from 2022, IFE will be preparing a separate sustainability report covering the institute’s work with sustainability. The report addresses the main components of the sustainability strategy, governance, environmental and social issues, and is based on European Sustainability Reporting Standards (ESRS). IFE is not obliged to follow these standards but has voluntarily chosen to base its reporting on the reporting principles of ESRS. The report does not cover, nor does it intend to cover, all the requirements set by ESRS. When preparing the report, inspiration was drawn from other recognised standard setters within sustainability. IFE’s sustainability reporting for 2022 will be available on the foundation’s website, www.ife.no.

Due diligence

IFE falls under the definition of ‘larger enterprises’ in Norway’s Transparency Act and as such has a statutory duty to carry out due diligence with a view to promoting respect for fundamental human rights and decent working conditions in connection with the production of goods and the provision of services.

This duty includes the publication of an account of the due diligence undertaken. IFE has chosen to incorporate its due diligence work into its sustainability efforts, and the due diligence reporting is included in the group’s annual sustainability report. IFE has a large number of suppliers and has adopted a risk-based approach to reviewing its supplier portfolio. The purpose is to identify risks of non-compliance with fundamental human rights and decent working conditions in the supply chain. Existing suppliers are grouped according to risk level, and special measures are implemented vis-à-vis high-risk suppliers. Furthermore, procedures have been established for new customers to ensure compliance with IFE’s ethical standards. IFE’s business partners are subject to the same requirements.

Working environment

The working environment at IFE is considered to be good, and this is supported by the results of the annual survey of employee satisfaction. The results from the 2022 survey show high scores for team spirit and leadership. This is on par with 2021. This is considered positive in light of the extensive restructuring that has taken place at IFE in recent years, and which is still ongoing.

The annual working environment survey forms the basis for specific working environment measures. Based on the survey, tailored measures have been drawn up and implemented at departmental level. When bullying is discovered in the workplace, targeted measures are implemented. In collaboration with the company health service, IFE holds mandatory HSE training courses on working environment legislation for all managers.

IFE has established internal and external whistleblowing channels for employees to report any breaches of the ethical guidelines. The internal whistleblowing channel is managed by the HR department, while the external, anonymous channel is managed by a law firm. Whistleblowing has been incorporated into IFE’s ethical guidelines, and is included in the training in ethical guidelines and management training. No cases of whistleblowing were reported in 2022.

Total sick leave in 2022 was 3.3%, which is lower than in 2021. Employees on sick leave receive close follow-up to ensure that a speedy return to work is facilitated through individually adapted work stations and duties. Preventive measures to reduce absenteeism are carried out in collaboration with the company health service, where employees are offered the influenza vaccine and health check-ups. IFE has also introduced flexible arrangements for paid short-term absences in connection with, for example, doctors’ appointments.

Eight injuries were reported in 2022, of which six were minor.

Equal opportunities and discrimination

IFE aims for full gender equality, and has appointed a cross-party group consisting of representatives from the HR department, the senior safety representative and employee representatives to work on this area. The group will identify and analyse the current situation and propose necessary measures to promote equality and prevent discrimination. The result of their work will be carried out under the auspices of group management and the foundation’s Board of Directors.

The foundation is subject to the extended duty of activity under the Equality and AntiDiscrimination Act. This includes a duty to issue a statement on the actual status of gender equality and what is being done to comply with the activity duty. The report of IFE’s work on equality and anti-discrimination is published on the foundation’s website, see ifesarbeid-for-likestilling-og-mot-diskriminering.pdf, and includes an account of how IFE works to promote equality and anti-discrimination, the status of gender equality and goals and action plans.

Of the foundation’s 649 permanent employees, 247 (38%) are women and 402 (62%) are men. There are a total of 66 temporary employees, of whom 16 (24%) are women and 50 (76%) are men. The foundation has 28 part-time employees, of whom 15 (54%) are women and 13 (46%) are men. In 2022, the foundation’s Board of Directors consisted of 3 women and 6 men, while IFE’s management group consisted of 3 women and 6 men.

IFE has an international working environment with employees from 38 different nations. In order for our employees to feel included, all information on our website and in the personnel handbook is in both Norwegian and English. In addition, the President and the HR department hold induction meetings with all new employees in both Norwegian and English.

The foundation’s ethical guidelines stipulate that employees must contribute to a fair and inclusive working environment that is devoid of discrimination on the grounds of ethnicity, gender, sexual orientation, religion, political leanings or social background. Diversity at IFE is safeguarded through our recruitment practices, which are based on demand and objective criteria that should not be affected by a candidate’s gender, pregnancy, parental leave for childbirth or adoption, care responsibilities, ethnicity, religion, life stance, disability, sexual orientation, gender identity, or gender expression. In 2022, IFE drew up a diversity statement which is included in all job advertisements.

The working environment survey that IFE carries out is also used to identify discrimination or unreasonable bias within the organisation. The results of the survey are presented to IFE’s entire line organisation. Based on this, action plans are prepared down to departmental level to manage any non-compliance or improvement measures. The results of these are assessed in a midway evaluation and subsequently a final evaluation.

External environment

IFE is certified under ISO 9001 and 14001:2015, and works continually to identify any major environmental issues seen in a lifelong perspective.

Parts of IFE’s operations carry a risk to the external environmental in the form of polluting emissions of radioactivity to air and water as well as emissions of chemicals and oils. IFE is subject to a well-regulated regime and has emission licences that have covered the entire operation. In connection with the corporate restructuring in 2023 and the demerging of the Radiopharmacy division into a separate limited company, separate emission licences were applied for from DSA and for the various divisions; Research and Development, Nuclear Operations and Safety, and Radiopharmacy.

The nuclear activity is subject to strict requirements regarding emissions and environmental impact. The operation is based on the intention to avoid harming the environment.

The ALARA (As Low As Reasonably Achievable) and BAT (Best Available Technology) principles, and IAEA’s Fundamental Safety Principles represent universal guidelines for nuclear activities and are incorporated into IFE’s work. The biggest sources of negative environmental impact from the nuclear activity are emissions from daily operations and the management of waste and fuel.

Radiopharmacy’s main sources of emission and negative environmental impact are radioactive waste, biological waste, packaging and transport.

IFE has established several different methods and measures for reducing emissions to air and water. These are reported on annually to DSA and discussed in more detail in IFE’s sustainability reporting.

Nuclear waste and storage

Norway was a pioneer in the field of nuclear research, and was the sixth country in the world to build a nuclear reactor. Operations have generated approximately 17 tonnes of spent reactor fuel. Since IFE was an early pioneer in nuclear research, and over the years has researched many different types of fuels and materials, the type and composition of waste is extremely heterogeneous. Waste management is therefore complex and challenging, and extensive studies and the construction of new facilities are required to carry out the clean-up. IFE is working with NND to ensure that the waste management process and preparations for decommissioning are safe, responsible and cost-effective. IFE has a licence for ownership of the fuel and manages this according to current legislation. As the licensee, IFE is responsible for all projects and activities related to licensed facilities. NND is the project owner and is responsible for conducting fuel studies and studies associated with the ongoing decommissioning.

Highly enriched uranium poses a security risk, and Norway is one of the few countries in the world that still possesses this type of material. In 2021, Norway and the United States signed a letter of intent to develop a method which will ensure that Norwegian highly enriched uranium can no longer be used for nuclear weapons, making it suitable for storage and disposal. This is an important agreement for Norway and an important step on the path to a safe clean-up of Norway’s nuclear activities.

The National Combined Disposal and Storage Facility for Radioactive Waste (KLDRA) is located in Himdalen in Aurskog-Høland municipality. The KLDRA plant is state-owned and managed by the Norwegian Directorate of Public Construction and Property, and was put into operation in 1998. IFE has an operating licence for the plant through an agreement with the Ministry of Trade, Industry and Fisheries, which finances its operation. KLDRA manages waste from IFE, the Norwegian manufacturing industry, the health service and the Norwegian Armed Forces. No waste was transported or deposited at the plant in 2022.

Environmental monitoring

IFE is subject to a strict body of regulations on safety and emissions. Our safety is closely monitored nationally and internationally by the Norwegian Radiation Protection Authority (DSA) and the International Atomic Energy Agency (IAEA). In the case of emissions, DSA sets limits for how much radioactive material we can discharge to air and water. The emissions licence sets specific emission limits per radio nuclide. In addition, limits are set for the maximum dose of radiation to which individuals in the most vulnerable population groups can be exposed. The limits are very low; however, IFE’s emissions are much lower than the maximum values.

IFE has unique expertise and systems within radiation protection and environmental monitoring of radioactive and chemical emissions. At IFE, we have laboratories for measuring radioactivity in various types of samples, and everything from rock and sediment to fish and urine samples can be analysed. The task of DSA is to ensure that all use of radiation sources and radioactive material is in accordance with national laws, regulations and guidelines. IFE works actively to limit and reduce employees’ exposure to radiation, as well as to check that emissions during normal operation are within the emission limits.

IFE has an environmental monitoring programme where samples are regularly collected and analysed from the areas surrounding the facilities at Halden and Kjeller to monitor the radioactivity in the area. Area dosimeters have been placed beyond the perimeters of the plant sites to measure external radiation. In IFE’s area, air filter stations are in continuous operation, as well as test stations for collecting precipitation. IFE takes samples of grass, milk and agricultural products, in addition to collecting and analysing samples of water, sediments, aquatic plants and fish from permanent test sites in Nitelva, Tistedalselva and Iddefjorden.

Insurance for Board members and the President

An insurance agreement has been signed covering Board members and the president of IFE. The insurance coverage is limited to NOK 50 million.

Future development

IFE is experiencing a high demand for research in its market areas, and growth and turnover in the R&D activities are expected to increase in 2023.

IFE invests significant amounts in research infrastructure. In 2021, IFE was granted considerable funds for the infrastructure projects NABLA (Norwegian Advanced Battery Laboratory), IMF (Infrastructure for Multiphase Flows) and HUNT (Competence Hub for Neutron Technology). In addition to the research infrastructure funds, IFE has decided to further invest a significant amount of its own funds in battery research. In total, IFE will invest over NOK 90 million in a pilot production line for batteries at Kjeller, which will be the largest investment in research infrastructure in over 15 years for the institute when it is completed in mid-2023. These investments will boost IFE’s potential to win projects within these research areas in the future.

The Radiopharmacy division, which was re-established as Agilera Pharma AS on 1 March 2023, envisages major potential for growth, and in 2022 initiated a dialogue with several new potential customers. The growth will entail a significant need for investment in the years ahead to enable further growth and the establishment of new customer projects. The IFE foundation does not have the financial capacity to cover the investment needs using its own funds, and the separation of the Radiopharmacy division into a limited company will therefore enable this part of the activity to be financed from external funds without incurring a disproportionately high financial risk for the foundation’s other activities.

For the Nuclear Operations and Safety division, the focus will continue to be on strengthening safety and security, managing spent fuel and preparing for the transfer of facilities and personnel to NND. Through the grants for the operation of IFE’s nuclear facilities, the Ministry of Trade, Industry and Fisheries has provided a good financial framework for ensuring safety in recent years. Through the Storting’s deliberations and decisions regarding the white paper on the safe decommissioning of Norwegian nuclear facilities and disposal of nuclear waste (Meld. St. 8 (2020-2021)), the government sets the framework for this social mission. The Storting’s decision stated the following: ‘The Storting asks that in the future clear-up of IFE’s nuclear activities, the Government establishes the basic premise that the State is wholly responsible for the clear-up and liable for all necessary costs associated with this.’ IFE and NND have calculated that the annual cost of failing to make progress in the social mission is NOK 400 million, and this highlights the need to transfer the nuclear facilities as quickly as it is safe to do so.

IFE’s Technology and Properties division is exposed to various risk factors in its development, leasing and management of land and buildings, and must carry out continuous risk management. The division needs to be aware of and understand the risks that drive earnings and costs, and must strive for optimum capital management within the adopted strategy.

The master plan and the detailed zoning plan for parts of IFE’s site at Kjeller provide for an increase in the number of jobs from 720 to 2200, from 4000 m2 to 40 000 m2 laboratory space and from 18 000 m2 to 82 000 m2 of building space. This development potential is to be realised gradually, and the first step in the adopted strategy is the design and construction of a new laboratory building with completion in 2025, for which funding has already been secured.

In addition to this, the need for investment in the next few years will relate to adaptation projects for new R&D projects as well as the necessary upgrading of building stock and replacement of technical installations when they have reached the end of their useful life. IFE has a varied property portfolio with potential for sustainable transformation,

and investments associated with this will be considered. IFE is working continuously to reduce energy consumption in the property portfolio and ensure lower prices for energy consumption. In 2022, energy wells in Halden were put into operation, and a new agreement with the electricity supplier was entered into with close cooperation on securing electricity prices.

An extensive adaptation project for a new battery laboratory will be completed in summer 2023.

Setting aside land for the State for future decommissioning is an essential factor for successfully carrying out the strategy and will require extensive work in 2023 and in the years ahead.

The masterplan and proposed regulation of IFE’s property at Kjeller will facilitate an increase of space for laboratories from 4,000 m2 to 40,000 m2, and an increase of building space 18,000 m2 to 82,000 m2.

Photo: Nicki Twang

The war in Ukraine and the sanctions against Russia have led to increased economic uncertainty, as well as higher prices and longer lead times for deliveries of various raw materials and products. The risk of a cyberattack on Norwegian businesses has also increased. The sanctions against Russia also entail uncertainty in relation to the export license for spent fuel, which in turn may affect progress in the planned decommissioning of the reactors. IFE has significantly strengthened its work with IT security in recent years, and has implemented additional measures as a result of the war. The energy sector is experiencing higher levels of activity in both Norway and Europe. This has resulted in new research projects, and an increased demand for IFE’s expertise in both energy and decommissioning is expected in the future.

Report of the Board of Directors is electronically signed

Kjeller, 27 April 2023

Nils Morten Huseby President (electronic signature)

Olav Fjell Chairman of the Board (electronic signature)

Katrine Trovik Board member (electronic signature)

Marinus Isaac Hoffmann Board member (electronic signature)

Sven Sigfred Ordeus Board member (electronic signature)

Jo Døhl Board member (electronic signature)

Ingvill Heskestad Mykland Board member (electronic signature)

Josefine Helene Krogh Selj Board member (electronic signature)

KJELLER

PO Box 40, 2027 Kjeller

Visiting address

Instituttveien 18, Kjeller

Tel.: +47 63 80 60 00

HALDEN

PO Box 173, 1751 Halden

Visiting address

Os allé 5, Halden

Visiting address , reactor plant:

Tistedalsgata 20, Halden

Tel.: +47 69 21 22 00

firmapost@ife.no • www.ife.no

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Institute for Energy Technology

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