Marketing Overview

NuScale Power
Full Speed Ahead
NuScale Supplier’s Day
Idaho Falls, Idaho
Mike McGough, Chief Commercial Officer
August 21st, 2014
Disclaimer
 “This material is based upon work supported by the Department of Energy
under Award Number DE-NE0000633.”
 “This report was prepared as an account of work sponsored by an agency
of the United States (U.S.) Government. Neither the U.S. Government nor
any agency thereof, nor any of their employees, makes any warranty,
express or implied, or assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe
privately owned rights. Reference herein to any specific commercial
product, process, or service by trade name, trademark, manufacturer, or
otherwise does not necessarily constitute or imply its endorsement,
recommendation, or favoring by the U.S. Government or any agency
thereof. The views and opinions of authors expressed herein do not
necessarily state or reflect those of the U.S. Government or any agency
thereof.”
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NuScale Power History
 NuScale first of current US SMRs to begin
design of commercial NPP.
 NuScale technology in development and
design since 2000 (DOE) MASLWR program,
with INL, lessons from AP600/1000 ¼-scale
testing facility built and operational
NuScale Engineering Offices Corvallis, Oregon
 Electrically-heated 1/3-scale Integral test
facility first operational in 2003
 Began NRC design certification (DC) preapplication project in April 2008
 Acquired by Fluor in October 2011
One-third scale Test Facility
 ~300 FTE’s currently on project, ~$210MM
spent project life-to-date
 29 positions currently open, adding 100+
 115 patents pending/granted, 17 countries
NuScale Control Room Simulator
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- an American Company
 Acquired majority interest in NuScale
in October 2011
 One of the world’s leading publicly
traded engineering, procurement,
construction, maintenance, and
project management companies
 #110 in the FORTUNE 500 in 2013
 More than 1,000 projects annually,
serving more than 600 clients in 66
countries
 More than 43,000 employees
worldwide
 Offices in more than 28 countries on
6 continents
 Over 100 years of experience
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Fluor Corporate Headquarters
Dallas, Texas
Revenue
$27.6 billion
New awards
$27.1 billion
Backlog
$38.2 billion
Investment Grade Credit Ratings:
S&P
A-
Moody’s
A3
Fitch
A-
NuScale and DOE Complete Agreement
Agreement
 Competition Winner announced December 12th, 2013
 Contract Completed MAY 28, 2014
 Initiates Up To $217M Funding Of NuScale SMR Development
 PORTLAND, Ore. - NuScale Power announced today that it
has finalized the cooperative agreement with the US
Department of Energy (DOE) as an awardee under the
program for “Cost-Shared Development of Innovative Small
Modular Reactor Designs.”
 The company will use the funds to perform the engineering
and testing needed to proceed through the Nuclear Regulatory
Commission Design Certification Process.
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NuScale and DOE Complete FOA
Contract
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EPA Administrator Gina McCarthy
“It is important that we continue to develop new technologies,
including small modular nuclear reactors, as part of the longterm solution to carbon reduction.”
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Gina McCarthy, U.S. EPA Administrator addressing the Western Governor's Association annual meeting
in Colorado Springs, CO. on June 10, 2014.
Oregon Governor John Kitzhaber
“This technology, I think, is maturing at exactly the right time to be a
factor in that low-carbon strategy,” the governor said. “We’re not
going to get to that low-carbon future with the same kind of thinking
we were using 20, 30, 40 years ago.”
- John Kitzhaber, Governor of Oregon, during a visit to NuScale Power on July 25, 2014.
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What is a NuScale Power Module?
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A NuScale Power Module (NPM) includes the reactor vessel, steam
generators, pressurizer and containment in an integral package that
eliminates reactor coolant pumps and large bore piping (no LB-LOCA)
Each NPM is 50 MWe and factory built for easy transport and
installation
Each NPM has its own skid-mounted steam turbine-generator and
condenser
 Each NPM is installed
below-grade in a
seismically robust,
steel-lined, concrete
pool
 NPMs can be
incrementally added to
match load growth - up
to 12 NPMs for 600
MWe gross (~570 net)
total output
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Coolant Flow Driven By Physics
Convection – energy from the
nuclear reaction heats the primary
reactor coolant causing it to rise by
convection and natural buoyancy
through the riser, much like a
chimney effect
Conduction – heat is transferred
through the walls of the tubes in the
steam generator, heating the water
(secondary coolant) inside them to turn
it to steam. Primary water cools.
Gravity – colder (denser) primary
coolant “falls” to bottom of reactor
pressure vessel, cycle continues
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Size Comparison
*Source: NRC
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Site Layout
Warehouse and
Administration Buildings
Cooling Towers
Turbine Building
Reactor Building
Switchyard
Turbine Building
Cooling Towers
ISFSI
Radwaste Building
Water Treatment Facility
Protected Area
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The Safety Case
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Core Damage Frequency Significantly Reduced
10-3
NRC Goal (new reactors)
10-4
10-5
10-6
10-7
10-8
10-9
Operating
PWRs
Operating
BWRs
Source: NRC White Paper, D. Dube; basis for discussion at 2/18/09 public
meeting on implementation of risk matrices for new nuclear reactors
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New LWRs
(active)
New PWRs
(passive)
NuScale
NuScale CDF: 1 event per 300 Million operating reactor years.
Added Barriers Between Fuel and Environment
Conventional Designs
1.
Fuel Pellet and Cladding
2.
Reactor Vessel
3.
Containment
NuScale’s Additional Barriers
4.
Water in Reactor Pool
5.
Stainless Steel Lined Concrete Reactor Pool
6.
Biological Shield Covers Each Reactor
7.
Reactor Building
7
6
Ground level
4
3
5
2
1
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Smaller Emergency Planning Zone Due to Design Attributes
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NuScale Announces Major Breakthrough in Safety
Wall Street Journal April 16, 2013
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NuScale design has achieved the “Triple Crown”
for nuclear plant safety. The plant can safely
shut-down and self-cool, indefinitely, with:

No Operator Action

No AC or DC Power

No Additional Water

Safety valves align in their safest configuration
on loss of all plant power.

Details of the Alternate System Fail-safe concept
were presented to the NRC in December 2012.
Typical LWR Safety Systems
 Systems and Components Needed to Protect the Core:
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Reactor Pressure Vessel
Containment Vessel
Reactor Coolant System
Decay Heat Removal System
Emergency Core Cooling System
Control Rod Drive System
Containment Isolation System
Ultimate Heat Sink
Residual Heat Removal System
Safety Injection System
Refueling Water Storage Tank
Condensate Storage Tank
 Auxiliary Feedwater System
 Emergency Service Water System
 Hydrogen Recombiner or Ignition
System
 Containment Spray System
 Reactor Coolant Pumps
 Safety Related Electrical
Distribution Systems
 Alternative Off-site Power
 Emergency Diesel Generators
 Safety Related 1E Battery System
 Anticipated Transient without
Scram (ATWS) System
NuScale Safety Systems
 Systems and Components Needed to Protect the Core:
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Reactor Pressure Vessel
Containment Vessel
Reactor Coolant System
Decay Heat Removal System
Emergency Core Cooling System
Control Rod Drive System
Containment Isolation System
Ultimate Heat Sink
Residual Heat Removal System
Safety Injection System
Refueling Water Storage Tank
Condensate Storage Tank
 Auxiliary Feedwater System
 Emergency Service Water System
 Hydrogen Recombiner or Ignition
System
 Containment Spray System
 Reactor Coolant Pumps
 Safety Related Electrical
Distribution Systems
 Alternative Off-site Power
 Emergency Diesel Generators
 Safety Related 1E Battery System
 Anticipated Transient without
Scram (ATWS) System
Fewer Systems, 73% Fewer SCRAMS
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12
# Scrams
10
8
2012 Reactor Scrams (from INPO database)
Scrams prevented by innovative features of the NuScale design
6
4
2
0
Initiating System
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58% of events cause by power
conversion systems
27% of events caused by electrical
distribution system
86% of power conversion related
scrams prevented by NuScale design
82% of electrical related scrams
prevented by NuScale design
SMR Comparison
NuScale Power Module:
180 MWe design:
 If power is lost:
 If power is lost:

Indefinite cooling w/o
operator action
 Containment Vessel:
factory-built
 Reactor Coolant
Pumps: 0

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coolant circulates by
convection,
conduction, and gravity

14 day coping time
 Containment Vessel:
field-built
 Reactor Coolant
Pumps: 8

any RCP failure will
result in immediate
shutdown
How do we know it works?
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Comprehensive Testing Program
Our testing supports reactor safety code development and validation,
reactor design, and technology maturation to reduce FOAK risk.
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NuScale Integral System Test (NIST) Facility
Containment Vessel and Pool
 1/3 Scale Test Facility In
operation since 2003
 Models RPV,
Containment and Pool
 Prototypic Fluid
Conditions
 NQA-1 Program review
and Site Visit by NRC
8/12
 Test Facility Scaling
Methodology sent to NRC 12/10
 IAEA international standard
problem test 5/11
 NRC Certification Testing
Program in progress.
 Data Being used for
Safety Analysis Code
Validation
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Full-Scale Main Control Room Simulator for HFE/HMI Studies
NRC Review of HFE Program and Site Visit 1/13
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What About Customers?
 NuAB—NuScale Advisory Board
 24 member firms representing nearly two-thirds of US
installed nuclear capacity
 Plus international membership
 We have a line of sight to our first dozen projects
 COD Timing between now and 2030
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The Genesis of Project WIN
 June 2010: Idaho Governor Butch Otter became Chair of
Western Governors Association (WGA) and sponsored Western
nuclear energy policy
 June 2011: “The Future of Nuclear Energy:
Shaping a Western Policy” published:
discusses SMR’s explicitly
 Feb 2012: Otter creates Idaho Leadership in
Nuclear Energy (LINE) Commission
 June 2012: Utah Governor Gary Herbert
becomes WGA Chair and sponsors development
of a 10-year energy plan-patterned after Utah 10-year plan
 June 2013: WGA 10-yr plan unveiled with stated goal to “Find
ways to accelerate the introduction of SMRs into the
marketplace.”
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First Deployment: Project WIN
 Western Initiative for
Nuclear (WIN) is a multiwestern state collaboration
to deploy a NuScale Power
Project, sited in ID.
 Involved Project WIN
participants: NuScale,
UAMPS, Energy Northwest,
ID, UT, OR, WA, WY, AZ,
NM?, MT?
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Project WIN Details
 First commercial project:
Preferred location within the Idaho
National Laboratory (INL) Site.
 Commercial operation in 2023.
 A 12-module plant (540 MWe)
 Will provide immediate advantages to the Western region:
 Provide clean, affordable energy and professional jobs
 Demonstrate the operations and benefits of this SMR technology
 Act as a catalyst for subsequent SMR energy facilities throughout the
Western states
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What Will Project WIN mean to Idaho?
 Establishes INL as key player in SMR deployment
 Creates slipstream for other NuScale projects, both within
WIN family and elsewhere worldwide
 Project will create ~1000 construction jobs at peak, for
duration of 2-3 years
 Indirect economic benefits and associated job multipliers
 Full-time plant employment ~360 at average salaries
$85K
 Indirect economic benefits
 Establishes Idaho as potential desired location for
NuScale supply chain members
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Overall WIN Project Schedule
2014
2015
Define Team Members
and structure
Project
Development
2016
2017
Develop Business Model
2018
2019
2020
2021
2022
2023
2024
Onboard Partners
Site Use Agreements
(see detail)
Site Selection
Design &
Engineering
Reference
Plant Design
Draft DSRS
Licensing
Start Finalized
Plant Design
Complete Final
Plant Design
Submit DCA
NRC Issue DC
Final DSRS
Submit COLA
Start COLA
NRC Issue COL
Site Characterization
Site Prep &
Mobilization
Construction
and
Fabrication
Order
Modules
Start Operational
Readiness Program
Operations
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1st Safety
Concrete Pour
Start Module
Fabrication
Operator Training
Program Accreditation
1st Fuel
load
Deliver
Module 1
Deliver
Module 12
Complete Operational
Readiness Program
Module 1 Module 12
COD
COD
2025
NuScale “Nth”-of-a-kind Strategy
 We get to “N” quickly with 12 modules
per plant
 Manufacturing efficiencies with
entire NPM shop-built
 Single-shaft failure risk mitigation
 Early positive cash flow when first unit
achieves COD
 Load following with full turbine bypass capability
 In-house RFO team, learning/training benefits
 In RFO only 8% of plant output (540MW) is off-line
 Refueling/Disassembly in separate
location from ops
 Much less stuff to keep track of
 Centralized inventory/spares, up to NPM
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NuScale Differentiators--Review
NuScale Power Module
 If power is lost:
 Indefinite cooling w/o operator action, w/o water addition, w/o power
 NPM integrates RPV and CV in one factory-built component
 One-third scale prototype operational since 2003
 Extensive testing program, 108 patents (as of 12/13)
 Full-scale control room simulator since 5/2012
 NPM shippable by common modes of conveyance
 Underground, immersed in UHS common pool
 50 MW incrementally scaleable modules
 Reactor Coolant Pumps: 0
 coolant circulates by natural physics: convection, conduction, and
gravity
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What is Needed to Ensure a Successful Project?
 Need a committed owner/buyer – will ultimately drive site selection
decision for the project
 Suitable land, sufficient water, transmission access
 Project will need to demonstrate sufficient need for/use of generated power
 State should consider doing economic impact study which gains state
legislative buy-in
 State public and political support
 Suitable plant economics/investment profile (e.g. long-term PPA’s, perhaps
including labs and DOD facilities)
 Favorable/supportive local and state permitting and approval processes
 Economic development incentives
 Sufficient capable facility workforce and community interest
 Active and competitive supply chain engagement
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COMING SOON TO AN
ELECTRIC GRID NEAR YOU!
Mike McGough
Chief Commercial Officer
[email protected]
Nonproprietary
©2014 NuScale Power, LLC