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.” 2 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 3 - 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 4 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. 5 NuScale and DOE Complete FOA Contract 6 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.” - 7 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. 8 What is a NuScale Power Module? 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 9 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 10 Size Comparison *Source: NRC 11 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 12 The Safety Case 13 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 14 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 15 Smaller Emergency Planning Zone Due to Design Attributes 16 NuScale Announces Major Breakthrough in Safety Wall Street Journal April 16, 2013 17 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: 18 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: 19 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 14 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 20 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 21 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? 22 Comprehensive Testing Program Our testing supports reactor safety code development and validation, reactor design, and technology maturation to reduce FOAK risk. 23 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 24 Full-Scale Main Control Room Simulator for HFE/HMI Studies NRC Review of HFE Program and Site Visit 1/13 25 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 26 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.” 27 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? 28 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 29 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 30 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 31 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 32 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 33 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 34 COMING SOON TO AN ELECTRIC GRID NEAR YOU! Mike McGough Chief Commercial Officer [email protected] Nonproprietary ©2014 NuScale Power, LLC
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