Executive Report. BEES, Inc. Best Engineering in Energy Solutions. 1. BEES Business Areas

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1 BEES, Inc. Best Engineering in Energy Solutions Suite L-508, KAIST MunJi Campus,193 Munji-ro, Yuseong, Daejeon, 34051, South KOREA Executive Report This report provides followings; 1. BEES business areas, 2. Part 1 : Nuclear Safety Consulting, 3. Part 2 : New Energy Technology (Solar Wind Power Plant), 4. BEES company overview BEES, Inc., Daejeon, South KOREA Founded in July BEES Business Areas BEES Business is composed of two areas: New Energy Technology and Nuclear Safety Consulting. The items which are currently performing and being developed are as follows; Solar wind tower (Renewable wind power plant by utilizing solar energy) Production of Co-60 RI (Radio-Isotope) in fuel bundle of heavy water reactor Radioactive disaster prevention training system by applying VR (Virtual Reality) Alloy metal 3D printing by arc energy Systematic analysis, promotion system and management of nuclear safety culture Support of nuclear safety regulatory authorization and safety regulation technology New Energy Technology Nuclear Safety Consulting Fig. 1 BEES Business Areas

2 2. Part 1 : Nuclear Safety Consulting A. Radioactive Emergency Drill System using VR (Virtual Reality) Underway project (June 1, 2016 ~ May 31, 2019) with KETEP (Korea Institute of Energy Technology Evaluation and Planning) research fund, supporting organization of MOTIE (Ministry of Trade, Industry and Energy) Objective of this project is to provide the people living nearby nuclear power plants with virtual reality exercise tool simulating complex nuclear disasters that are able to cover not only TMI but Fukushima type accident. 1) Necessities of the VR System Extended Emergency Planning Zone but too limited participation : Radioactive Emergency Planning Zone is extended up to 30km radius of NPP after Fukushima nuclear accident but actual emergency drill could cover only a few hundred people and most of people within this zone have no interest in the drill. Difficulties of simulation for complex situation : Emergency drill could not simulate a complex emergency situation combined with extreme natural disaster, such as earthquake or tsunami. Increasing public concern on nuclear safety : Public concern on unlikely nuclear disaster is growing as snowball because of politicalized persistent anti-nuclear movement. In conclusion, Virtual Reality technology can be used to reduce irrational nuclear safety concern and to improve effectiveness of radioactive emergency drill resulted from very limited participation of people and inability of appropriate simulation considering combined effects. Fig. 2 Current emergency drill system vs. VR exercise system

3 2) Impact of Overseas Nuclear Accidents on domestic NPPs Comparison of overseas nuclear accidents are shown in Table 1. Table 1 Characteristics of International Nuclear Accidents Country Plant Name Reactor Photo Radiation Leakage Domestic NPP Accidents Possibility Necessity of Training Current Training System Suitability Training for Personnel Mobilization A USA TMI PWR X (Minimal) O O O O B USSR Chernobyl Graphite Reduction LWR O X X X X C JAPAN Fukushima BWR O O O X X Impossible to do actual training by massive mobilization of people living around, but unlikely accidents must be considered and exercised. VR Radiation Disaster Training System 3) Structure of Radioactive Disaster Prevention VR System Overview of radioactive disaster prevention VR system are as Fig. 3. Fig.3 Structure of Radioactive Disaster exercise system using VR

4 B. Improvement of Periodic Safety Inspection system to strengthen defensein-depth (DID) incorporating probabilistic safety assessment concept Underway project (May 1, 2016 ~ Dec 31, 2018) with Korea Foundation of Nuclear Safety (KoFONS) research fund, supporting organization of Nuclear Safety and Security Commission(NSSC) Objectives of this project; : To make the current periodic safety inspection (PSI) methodology up-to-dated : To develop the methodology to incorporate defence-in-depth concept into PSI in place that had been designed on the basis of deterministic performance check of each system and component : To develop the basis of introducing risk insight in PSI to maximize the benefit of probabilistic safety assessment (PSA) recently embedded as part of regulatory requirements : To provide PSI inspectors with more flexibility in confirming the safety in compliance with safety significance. Fig. 4 Procedure for Improving the Regular Inspection System of strengthening Defence-In-Depth using PSA Results C. Development of safety culture management program and safety culture degradation factor analysis guide Underway project (Sept 1, 2016 ~ Mar 31, 2018) with CRI research fund, research organization of Korea Hydro and Nuclear Power (KHNP) Objectives of this project; : To evaluate the contribution of nuclear safety culture in relatively significant nuclear events over the past 30 years : To develop systematic assessment methodology for nuclear safety culture taking into lessons learned from Fukushima nuclear accident and domestic nuclear events : To develop nuclear safety culture management program to improve safety culture continuously and to setup an appropriate evaluation system for safety culture capacity of management level Procedure for safety culture evaluation and safety culture degradation factor

5 analysis guide is shown in Fig. 5. Fig. 5 Procedure for systematic safety culture evaluation and safety culture degradation factor analysis guide D. Development of Nuclear Safety Regulation Technology: 1) Development of Safety Analysis Report (SAR) writing criteria and thereby update of Standard Review Plan(SRP) Underway project (Sept ~ Dec. 2017) with Korea Institute of Nuclear Safety (KINS) research fund, technical regulatory expert organization supporting Nuclear Safety & Nuclear Safety & Security Commission (NSSC) Objectives of this project; : To make Korean SAR up-to-dated by comparison between US NRC Regulatory Guide 1.70 (Rev. 3) with US NRC Regulatory Guide (2007) : To incorporate previous regulatory experiences into SAR as shown in Fig. 6 : To update of Standard Review Plan in accordance with new SAR guidelines 2) Development of safety classification criteria for components and subparts Project conducted with KINS research fund and completed at the end of Classification criteria for safety related components and subparts were developed by supporting NSSC notice No Safety class classification criteria of Nuclear facilities.

6 : Safety class classification system of nuclear reactor facilities : Criteria per classes (KEPIC Code and corresponding technical standards, ASME Section III, etc.) : Safety class classification of components should be differently classified with mother components. However, current notices do not have any criteria on these. Thus, additional criteria for safety class classification of components is developed without affecting the Government NSSC notice No Part 2 : New Energy Technology Fig. 6 Procedure to develop SAR Writing Criteria E. Development of Solar Wind Power Plant (SWPP) technology Underway project (June ~ May 2017) with KETEP research fund, supporting organization of Ministry of Trade, Industry and Energy and to be continued. Objective of this project is to develop solar wind power plant technology through; : To develop an innovative SWPP technology to be economically competitive level versus other solar power : To develop the power conversion efficiency from solar energy to electricity generation to be comparable to solar thermal : To optimize air flow pathway to minimize friction loss

7 : To develop air turbine that is adopted to closed air channel operation : To develop air turbine technology to maximize power extraction in turbine 1) Background and Concept of SWPP Solar wind power plant (SWPP, previously noted as Solar Chimney Power Plant) was developed in the 1960s. SWPP is a renewable energy having a number of advantages: Maintenance free, greenhouse gas free, toxicity free, long life time, coolant free, no active component but turbine Driving mechanism of SWPP is to utilize updraft force induced by natural air convection, which can be simulated such an optical lens focusing sunlight to focal point as a combined system of collector providing solar heating and tall tower concentrating the heated air to be extracted, as shown in Fig. 7. Fig. 7 Comparison between Optical Lens and Solar Wind Lens Tower 2) First ever operated Solar Chimney Power Plant The world-first SCPP model: Spain Manzanares prototype plant Operation period: 1982 ~ 1989 Dimension: Tower height (194 m), Collector radius(120 m), Collector height (2 m) Maximum power output: ~50 KWe max. Fig. 8 World-first Solar Chimney Power Plant

8 3) Limits of World First SCPP(or SWPP) Limitation of the prototype plant: small power output due to extremely low energy conversion efficiency (~ 0.1 %) as shown in Fig. 9. Fig. 9 Limits of World-first Solar Wind Tower 4) BEES s New Technology Development to Improve the Efficiency Target of technology development: Improvement of energy conversion efficiency up to 3~5 %. New technologies for efficiency improvement; : Technology for solar collector efficiency improvement using air mixer : Technology for flow velocity improvement using Diffuser tower and wind tunnel : Technology for electricity conversion, Genuine turbine design for SWPP Newly developed air turbine developed by BEES under 2.5 times higher wind speed, the BEES SWPP model can produce more than 1MW power comparing with Spain prototype plant with same dimension size. Development of a SWPP commercial model, named as SMiLE (Solar Motivated wind Lens Energy) tower, shown in Fig. 10. : Maximum output power: 30MWe : Energy conversion efficiency (solar to electricity): up to 5 % : Construction cost: 4,000 $/KWe : Operating time: 60 years Fig. 10 SWiLE Tower (BEES SCPP) Specifications

9 Advantages of SWPP technology among other solar energy technologies: Compared to 2 conventional solar technologies, CSP and solar cell, SWPP technology has definitely full of advantages as shown in the Fig. 11 Economic competitiveness of SWPP: Economics of SWPP based on initial investment view is as shown in Table 2. Furthermore, SWPP needs rare maintenance cost compared to other plants. Fig. 11 Power Generation Technologies for use of Solar Energy (Elements to consider & their Results or Solutions) Table 2 Comparison among Power Generation Technologies using Solar Energy (Initial Investment View Points)

10 4. BEES company overview A. Current Status and CEO Resume Fig. 12 Current Status of BEES, Inc. and CEO Resume B. BEES Organization and Staffs Constitution Fig. 13 BEES Organization and Staffs Constitution

11 Fig. 14 BEES History C. Patents Granted and Pending Table 3 Patents Granted and pending No Title Granted Pending Solar Chimney Tower and Solar Energy Collecting Apparatus Turbine Wind Tunnel Facility for Solar Chimney Power Plant Solar Thermal Collector Apparatus in Solar Updraft Tower for Distilling Seawater and Generating Electricity Method for Radioactive Isotope Production using Heavy Water Nuclear Reactor Printing Method of 3D Directed Energy Deposition by using Arc and Alloy Metal Powder Cored Wire and Its Apparatus An Exercise System For Radiological Emergency Based On Virtual Reality Emergency Safety Control System And Emergency Safety Control Device And Emergency Safety Control Method Using Thereof Other 4 patents are in preparation PCT/KR2015/ PCT/KR2016/

12 Contact details BEES, Inc. is a fully integrated organization to provide you the best technical solutions and products so that you can rely on. BEES, Inc. is at your services. Feel the master s touch. CEO Jerom PARK, Ph.D. CTO Leo LEE, P.E. QA Andy AHN, Ph.D. jerom@bees.pro hgpark226@bees.pro andy@bees.pro