Powering a UK-U.S. Energy Partnership

Transcription

1 Powering a UK-U.S. Energy Partnership Lonon Office, UK 1st Floor, Portlan House Bressenen Place Lonon SW1E 5BH T: +44 (0) E: info.uk@nuscalepower.com nuscalepower.com Heaquarters 6650 SW Rewoo Lane Suite 210 Portlan, OR Corvallis Office 1100 NE Circle Blv., Suite 200 Corvallis, OR Charlotte Office 2815 Coliseum Centre Drive Suite 230 Charlotte, NC Rockville Office Wooglen Ave., Suite 205 Rockville, MD Richlan Office 1933 Jawin Ave., Suite 130 Richlan, WA Phone: Fax: Phone: Fax: Phone: Fax: Phone: Fax: Phone:

2 Our vision for the UK The NuScale SMR is a leaing eveloper of small moular reactor (SMR) technology, offering near-term eployable, cost-competitive, scalable, flexible an low carbon power for the UK, supporting jobs an growth across the economy. NuScale is avancing its plans to buil a UK-U.S. partnership, which will see its technology built in British factories, generating power for British homes before 2030 an transforming the UK into a hub for export to international markets. The worl s eman for electricity will increase significantly over the next several ecaes. Our technology can meet that challenge with clean an reliable power. The competitive economics of NuScale s esign an our growing partnership with companies across the UK supply chain makes our SMR the perfect fit for the UK. John Hopkins, Chairman & CEO, Technology overview Base on trie an teste light water reactor (LWR) technology, the Moule esign is an integral reactor surroune by a high pressure steel containment vessel. Each moule prouces 60 MW of electricity, 200 MWt heat an is fabricate in a factory environment, transporte to site by roa, rail or barge, an installe in a generating facility in quantities of up to 12 proviing a total facility output of 700 MW of electricity (gross). NuScale s unique Triple Crown for Nuclear Plant Safety ensures that in the unlikely event of a loss of power to the facility, the reactors will safely shut own an self-cool inefinitely with no operator action, no electrical power an no aitional water. Size The smaller physical an environmental footprint of a NuScale plant increases the number of sites that might be suitable for eployment, incluing sites previously iscounte ue to size or the infrastructure requirements of large-scale plants. Factory fabrication Cost savings are enhance through repetitive factory fabrication an a reuce on-site construction time of approximately 36 months. Moules are fabricate in parallel to power plant construction. Scalability Moular esign allows NuScale SMRs to be installe in 60 MWe increments to meet project economics, or in response to growing eman for new capacity. Flexibilty The electrical output of the facility can be varie at rates that provie for exceptional loa following capability an integration with intermittent source of generation such as win or solar. Highly reliable power can also be provie for mission-critical facilities. NuScale s Diverse Energy Platform (NuDEP ) means a multi-moule plant provies a unique ability to tailor electrical an steam outputs. The 200 MWt of heat prouce by iniviual moules can be irecte to inustrial applications such as esalination, chemical processing, enhance oil recovery, use in proucing synthetic fuels, or in istrict heating. 2 3

3 Delivering the promise of low carbon energy Why Our low carbon mission will provie scalable, avance nuclear technology for the prouction of electricity, heat an water to improve the quality of life for people aroun the worl. Our vision is to be the global leaer in avance nuclear energy solutions an a viable business for people, the planet an prosperity. Creible for near-term eployment NuScale s technology is a mature esign, backe by worl-class technical expertise an a robust testing programme. It has strong financial backing from the U.S. Department of Energy an is creible for eployment in the UK before PEOPLE Social Equity A strong UK-U.S. partnership NuScale has establishe strategic partnerships with UK-base companies like Ultra Electronics, AREVA an Fluor Corporation. In areas such as instrumentation an control (I&C), fuel esign an commercialisation, NuScale benefits from worl-leaing expertise an support. Demonstrably cost-competitive The economics of NuScale s SMR compare well with alternative forms of low carbon generation, incluing large-scale nuclear. The esign capitalises on the cost savings realise through repetitive factory fabrication an reuce construction time. PLANET Environmental Stewarship PROSPERITY Economic Growth UK US 4 5

4 How our UK-U.S. partnership has progresse so far National Nuclear Laboratory (NNL) publishe its SMR Feasibility Stuy, which juge the NuScale Power technology as creible with a well-evelope esign Testing programme starte on NuScale's SMR technology in a fully instrumente, one-thir scale, electrically heate test facility in Corvallis, Oregon Fluor Corporation became the majority investor in. Participate in the UK Government s SMR feasibility assessment to test the viability of potential SMR evelopment an eployment in the UK Commissione a full-scale multi-moule control-room simulator. Both the testing facility an the control-room simulator were first-of-a-kin for the U.S. SMR inustry. Signe an agreement with the UK s Nuclear Avance Manufacturing Research Centre (NAMRC) in Sheffiel to collaborate on the evelopment of NuScale s technology Announce the launch of Project WIN, which is contemplating a number of NuScale power plant eployments across the western states of America. The U.S. Department of Energy formally announce an awar of $217 million in competitively bi cost-share funing to be receive over five years, to accelerate the evelopment of the NuScale Power Moule TM. Launche a fully fune internship programme in partnership with the University of Sheffiel. Establishe a strategic partnership with Ultra Electronics to evelop the reactor an plant protection systems for the NuScale SMR NuScale opene a UK office. Signe contract with AREVA to manufacture fuel assemblies for Moules TM, supplying initial reactor cores as well as subsequent reloas for our first customer. Formally entere engagement with the UK Government via its SMR competition to ientify the best value SMR esign for the UK Complete the fabrication an assembly of a full-scale mock-up of the upper section of the NuScale Power Moule TM. This provies engineers with with special insight into inspection an maintenance activities essential for operating a NuScale power plant. Commence work with Sheffiel Forgemasters International Lt, which will perform a emonstration forging of a reactor vessel hea as part of a programme supporte by Innovate UK. The first NuScale UK Supplier Day took place at the NAMRC attene by over 100 companies from across the UK supply chain. In 2016 an NNL stuy confirme the suitability of NuScale s SMR esign for use with MOX fuel. Complete a esign certification application (DCA) for submission to the U.S. Nuclear Regulatory Commission (NRC), the first ever SMR DCA to be complete. Ultra Electronics complete successful Factory Acceptance Testing of moule protection an safety systems esigne for the Moule TM. 2020s NRC formally accepte NuScale's DCA submission for ocketing in March 2017, commencing a 46 month certification process. The first NuScale power plant is expecte to be eploye for NuScale s first customer in the U.S. by the mi-2020s. NuScale s SMR esign is creible for eployment in the UK before

5 From factory floor to first power generate Supporting the UK s nuclear inustry Supply chain opportunities Integration with existing infrastructure Deployment across the UK H 2 A iverse energy platform Factory fabrication of power moules NuScale SMRs are fabricate in a factory environment, in parallel to the construction of the power plant, bringing savings an reuce construction time. Using innovative, trie an true technology The Moule esign is an integral reactor surroune by a high-pressure steel containment vessel, proucing 60 MW of electricity. Transporte to site by roa, rail or barge Moules are transporte from factory floor to the power plant an can be installe incrementally an start generating electricity with the installation of the first moule. The site inclues a 12 moule reactor builing Moules TM are installe in quantities of up to 12 at a single generating facility, proviing a total facility output of 720 MW of electricity (gross). Low carbon, flexible, afforable electricity NuScale SMRs will provie costcompetitive, flexible, low carbon power before 2030, supporting UK jobs an growth. Export to European market 8 9

6 Making NuScale s vision a reality for the UK Creible for near-term eployment Four areas are critical to the success of a UK SMR programme, which NuScale is best place to help buil: Continue political support an setting the right market conitions Government must emonstrate clear, longterm support for SMR eployment an aress first-mover risk. Potential first-movers shoul be encourage, attracte an incentivise to own an operate SMRs. Creating the right market conitions an ensuring investors an evelopers have confience in the policy environment will be essential. Ientifying sites to maximise eployment opportunities Government must play a role in ensuring the availability of suitable sites, in sufficient numbers an at reasonable cost. Given the smaller physical an environmental footprint an safety case of NuScale s esign, Government shoul ientify sites specifically for SMRs, allowing those sites not eeme suitable for large-scale nuclear plants to be consiere. Optimising the licensing an regulatory process for SMRs Clarity regaring the regulatory review process for SMRs shoul continue to be provie, to ensure greater certainty aroun the timeframe for technology approval. There is an opportunity for the UK to optimise its technology review process to avoi uplication of assessment one elsewhere by other nuclear regulatory agencies. NuScale s esign is very mature, an the company s esign is currently unergoing a esign certification review an approval by the U.S. NRC. Developing an maintaining UK capability Government shoul continue supporting the nuclear inustry s evelopment of innovative techniques an skills to reuce manufacturing time an cost. This will ensure UK suppliers are cost-competitive an that maximum economic benefits associate with SMRs are secure by UK-base companies. Efforts to improve the pipeline of skille workers an measures to ensure sufficient resources are available must also continue

7 NuScale s technology is on the roa to eployment Six factors emonstrate how NuScale is eployable near-term, setting it apart from rivals: Financial backing NuScale is the only light water reactor (LWR) SMR eveloper currently receiving cost-share financial assistance from the U.S. Department of Energy (DOE). Awars to ate are over $280 million, accelerating the evelopment of the company s technology. Commercialisation an customers NuScale is the only SMR eveloper with a customer eployment project in the U.S., with line-of-sight to several projects to be eploye in the U.S. from 2026 through The first plant will be locate on a site in the state of Iaho. Licensing In December 2016, NuScale complete the first ever SMR DCA to be submitte to the U.S. NRC. That experience will inform NuScale s approach to entering the Generic Design Assessment (GDA) process in the UK. 12 Worl-class expertise More than 600 full-time engineering an licensing personnel worke on the project to support evelopment of the DCA, with support from over 50 companies. This is complemente by a Technical Avisory Boar of leaing inustry experts. Robust test programme NuScale has several state-of-the-art facilities where it conucts cutting ege testing. These inclue the NuScale Integral Testing Facility (NIST-1), a one-thir scale, electricallyheate prototype test facility locate at Oregon State University in Corvallis, Oregon in use since 2003 as well as a full-scale, multi-moule control-room simulator in use since Both have been first-of-a-kin for the U.S. SMR inustry. Design evelopment The NuScale SMR is a very mature esign with over $800 million an over 4 million person-hours investe in the project life-toate. We have over 350 patents grante or pening worlwie. Case Stuy: eploying a first-of-a-kin SMR in the U.S. In 2013, announce the launch of the Western Initiative for Nuclear ( Program WIN ), a multi-state collaboration that aims to eploy multiple NuScale plants across the western U.S. The first commercial NuScale plant will be owne by Utah Associate Municipal Power Systems (UAMPS). The plant will be locate on a site in Iaho an is expecte to be generating electricity by In 2017, NuScale an UAMPS receive a $16.7 financial assistance awar from the U.S. DOE, Regulatory review process Site preparation Pre-orer of major equipment Nuclear construction 46 months 48 months* as part of a three-year cooperative agreement to conuct site characterisation activities an prepare ocumentation leaing to a Combine Operating Licensing Application (COLA). We see the eployment of NuScale s technology as critical to ensuring clean, low carbon baseloa energy for the future. Doug Hunter, CEO, UAMPS * Assuming GDA commencement in months 18 months 36 months 36 months 36 months 36 months U.S. UK 13

8 Delivering the first ever UK SMR A true UK-U.S. partnership 14 NuScale believes the UK nuclear inustry can eliver on the company s vision of a multi-billion poun manufacturing an infrastructure venture, bringing highvalue jobs, intellectual property rights an export opportunities, making a significant contribution to the UK s economic growth, prouctivity an wealth creation. As a technology eveloper, NuScale has no manufacturing capabilities of its own. The UK supply chain is capable of proviing 85% or more of the content neee for UK SMR eployments. Delivering a NuScale SMR will strengthen the UK s wier nuclear inustry an supply chain. US UK Fluor is prou to be working with NuScale to bring their pioneering SMR technology to the UK market. Our strong UK-U.S. partnership an our 60-year history unertaking projects from the UK allows us to help NuScale with its commitment to create opportunities for the British supply chain. Ashley Rees, Vice Presient an General Manager, Fluor Limite 15

9 Working in partnership with the UK UK US Ultra Electronics a strategic partner in the UK Sheffiel Forgemasters forging an SMR reactor vessel hea NuScale has establishe a strategic partnership with Ultra Electronics to integrate their esign expertise in eveloping reactor protection an other safety-relate I&C systems for the NuScale SMR. In February 2017, Ultra successfully conucte the acceptance testing of the moule protection system it is eveloping for the NuScale SMR. The test was conucte in the presence of representatives from the U.S. NRC an was a significant milestone for both NuScale an Ultra Electronics. NuScale is supporting Sheffiel Forgemasters in elivering a forging emonstration of an avance reactor component involving the reactor vessel hea for a Moule TM esign. The project supporte by Innovate UK, the UK s innovation agency will help evelop the manufacturing techniques neee to eliver future SMR eployments in the UK. UK-U.S. STRATEGIC PARTNERS U.S. PROJECT PARTICIPANTS Our success in eveloping this critical safety component is testament to the expertise of both companies an we look forwar to working together to bring NuScale s innovative technology to market. NuScale s esign is one of the most avance in the worl an this forging project will allow us to prove yet again that UK manufacturing is at the leaing ege of global technological avancement. UK SUPPLY CHAIN ADVISORY /SUPPORT Ultra Electronics Sheffiel Forgemasters International Lt

10 Supporting the UK s nuclear inustry US UK Nuclear AMRC working with the UK supply chain University of Sheffiel internship programme eveloping the UK workforce NuScale is a supporting partner of the Nuclear Avance Manufacturing Research Centre (NAMRC) an signe an agreement in 2014 to work together on NuScale s programme evelopment. Work has been unertaken to help NuScale fin innovative manufacturing an supply chain solutions neee to eploy its SMR in the UK. Separately, NuScale hel its first UK Supplier Day at the NAMRC in July UK-base engineering, manufacturing an construction companies attene to hear about NuScale s programme evelopment an explore potential opportunities. NuScale establishe a fully fune internship programme in partnership with the University of Sheffiel an Oregon State University (OSU) to enable Sheffiel stuents to spen three months at NuScale s operational base in Corvallis, Oregon. The programme offers a rare glimpse into the work being carrie out by NuScale s engineering team, proviing stuents with valuable hans-on experience in research neee for the future evelopment of the technology. The big avantage for the UK supply chain in SMRs is the evelopment of avance manufacturing technology, capability an capacity, which provies long-term, high-value, sustainable jobs for the UK. Mike Tynan, Former CEO, NAMRC Opening up our worl-class test facilities to future British nuclear engineers is an important part of the enuring partnership NuScale is forging with the UK energy sector. Tom Muny, Chief Commercial Officer & Managing Director UK & Europe, What makes a NuScale SMR? 830,000 ft2 of builings 12,000 instruments The UK supply chain is capable of proviing 85% or more of the content neee for UK SMR eployments. 48,000 linear feet of cable tray 3,600 I/O points 1.5 million feet of conuit 190,000 CYs of concrete 8,000 tonnes of structural steel 500 items of electrical equipment 7 million feet of wire an cable 41,000 valves 1,000 misc. mechanical components 150,000 linear feet of pipe NuScale power facility esign 18 19

11 Cost-competitive with other forms of generation Changing the economics of nuclear UK The economics of NuScale s esign are competitive on a levelise basis with many forms of generation. Estimate average U.S. levelise cost of new generation resources (2022 costs in 2016 $/MWh). 250 Gas power options NuScale (12 pack) y ro H al he rm la rt V ar P So So l re w in as s ho om O ns m eo th er cl G nu A va nc e Bi al r ea e in e tu rb in n v co m bu st io n io st bu m co G as : A t l :C ov en G as tu rb w e ne bi m co v A as : G cl cy m co v A as : G CC S e cl ne bi ne bi m co l ve nt Co G as : cy cl cy (3 CC S al w co e ) 0% ) O AK (N in A v an c e -o f-a -k th N U IO IO U Fi rs t-o f-a -k in (F O AK ) 0 Note: EIA projects 2022 Henry Hub spot natural gas prices of approx. $4.26/mmbtu (2016 Dollars) (Annual Energy Outlook 2017). Source: U.S. Energy Information Aministration, Levelize Cost an Levelize Avoie Cost of New Generation Resources in the Annual Energy Outlook 2017, April 2017, except NuScale (12-Pack); NuScale Moel. Assumptions for EIA an NuScale 12-Pack weighte average cost of capital (WACC) of 5.50%; 30 yr. cost recovery. NuScale 12-Pack FOAK an NOAK inclue Owner s Cost of $5.08/MWh. EIA inclues transmission investment from $1.10/ MWh (Avance Nuclear) to $6.10.MWh (Solar Thermal). NuScale inclue $1.10/MWh for transmission investment in FOAK an Nth LCOE values. IOU: Investor Owne Utility 20 21

12 Cost reuctions through repetitive fabrication Changing the economics of nuclear NuScale is a near-term eployable SMR technology eveloper with inepenently verifie cost estimates. For our first-of-a-kin U.S. project in Iaho for UAMPS, our target levelise cost of electricity (LCOE) is $65/MWh. That compares well with alternative forms of generation, incluing the UK Government s estimate of 95/MWh for large-scale nuclear. NuScale believes that it will nee to fabricate 12 to 14 moules to move own the learning curve from first-of-a-kin to Nth-of-a-kin. Through cost savings associate with repetitive factory fabrication, application of avance manufacturing techniques, construction learning, an operation an maintenance improvements, NuScale believes the LCOE for Nth-of-a-kin plants can be reuce by more than 10%. Material cost savings are expecte to be between 4% 8%. Application of avance manufacturing techniques will see costs fall further. Moule cost savings coul be as much as 10% 20%. Engineering an home office hours are expecte to be reuce by 25%. Contingency costs as a percentage of total costs coul fall by between 3% 5%. EPC cost an scheule savings are expecte to be in the 5% 10% range. A 48 month refuelling cycle brings further savings. Cost savings are enhance an onsite construction times reuce through factory fabrication of moules in parallel to power plant construction. Moules are installe incrementally an can start generating electricity with the installation of the first moule. Repetitive factory fabrication, use of avance manufacturing, construction learning, an operation/maintenance improvements can reuce the LCOE of Nth-of-a-kin plants by over 10%. Competitive LCOE when compare with large-scale avance nuclear an many other forms of power generation