WNU - Ottawa. Andy White. Chairman, World Nuclear Association. President & CEO, GE NEV

Transcription

1 WNU - Ottawa Andy White Chairman, World Nuclear Association President & CEO, GE NEV

2 WNU - Ottawa Andy White Chairman, World Nuclear Association President & CEO, GE NEV

3 GE Company Energy Infrastructure Technology Infrastructure NBC Universal Capital 300,000 employees 100 Countries $300BB Market Cap AAA rated

4 Membership at 90% of industry and increasing Equal voice for suppliers, customers and utilities Global Industry Forum 12 active working groups World s Major Nuclear Information Source World s Leading Nuclear News Resource Industry is gearing up for new build Owner of World Nuclear Index International Nuclear Education Center

5 GE in Nuclear Nuclear Power Plants Generation III. ABWR Generation III+ ESBWR Generation IV Prism Turbines & Generators Water, Security, Electrical Equipment & Controls Nuclear Services Reactors, turbines & balance of plant Life extension Power uprates Performance services Outages and inspections Fuel Cycle BWR & mixed oxide fuel Candu fuel & handling Fuel Engineering Services Uranium Management Enrichment Nuclear Isotopes

6 Portfolio / business model High Nuclear Gasification Uncert tainty (regulatory / financial) Units Services Fuel Pulverized coal Units Services Wind (with PTC) High ROTC units Replacement parts CC gas turbine Units Services Units Services Low Low Cost of electricity High

7 carbon model High Nuclear Gasification Uncert tainty (regulatory / financial) Units Services Fuel Pulverized coal Units Services Wind (with PTC) High ROTC units Replacement parts CC gas turbine Units Services Units Services Low Low Cost of electricity High

8 Cost of Electricity First-Yea r COE ($/ MW h) $175 $150 $125 $100 $75 $50 $0 $20 $40 $60 $80 $100 CO2 Allowance Price ($/tonne) IGCC IGCC 50% CCS SCPC (Bit) IGCC 90% CCS $8 Wind no PTC Wind w/ptc Nuclear

9 Impact of a 50% Increase in Fuel Price Percentage increase in generating cost 3% 19% 21% 38% Nuclear Coal Gas Coal Steam Gas Turbine Source: IEA World Energy Outlook 2006

10 Projected U.S. Energy Demand The U.S. Is Projected to Need 50% more Electricity by ,839B kwh 5,787B kwh Source: U.S. Department of Energy

11 USA Plant Average Capacity Factor % in % in % in % in % in % in % in % in '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Sources: Global Energy Decisions, Energy Information Administration, NEI estimate for 2007

12 USA Output at Record Levels U.S. Nuclear Generation (billion kilowatt-hours) Highlights 5,222 MW of power uprates approved 912 MW of uprates pending 1,751 MW of uprates expected in in in in in in in in '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Electricity Generation (MW Hours) Sources: Global Energy Decisions, Energy Information Administration, U.S. Nuclear Regulatory Commission, NEI estimate for 2007

13 Solid Economic Performance Continues U.S. Nuclear Production Cost (2007 $ per MWh) : $16.80/MWh 2006: $17.70/MWh 2005: $18.10/MWh 2004: $18.90/MWh 0 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Sources: Global Energy Decisions, NEI estimate for 2007

14 Other Key Highlights From 2007 License Renewals Continue... 9 Unannounced 32 Intend to Renew 48 Granted 15 Under NRC Review 6 Filed in 2007 And Plant Restarts TVA s Browns Ferry 1 back in service May 2007 (5-year, $1.8 billion project) Source: U.S. Nuclear Regulatory Commission

15 USA Environmental Contribution U.S. Emission-Free Electricity Hydro 24.1% Nuclear 73.0% Wind 1.4% Geothermal 1.4% Solar 0.1% Source: Global Energy Decisions/Energy Information Administration

16 Growing Global Energy Demand bil KW-h hr Billions of kw hours 35,000 30,000 25,000 20,000 15,000 10,000 Asia Africa Middle East Europe & EurAsia Central and S America North America Electricity demand 2X by , Sources: EIA-DOE International Energy Annual 2004 & International Energy Outlook 2006

17 Global Public Opinion Positive on Nuclear Energy or Use what s there Negative on Nuclear Energy or dangerous Don t Know or None of the Above

18 Future Outlook New Construction Forecasts (Orders; GW Cumulative) Americas Europe + Asia and India

19 New unit construction operating prior to 2020 (Units) Argentina, 1 Pakistan, 1 Japan, 2 Iran, 1 France, 1 Finland, 1 Bulgaria, 2 Constructing 37 units Slovakia, 2 Russia, 7 India, 6 Pakistan, 1 Egypt, 1 Brazil, 1 Argentina, 1 Iran, 2 Ukraine, 2 Bulgaria, 2 S. Korea, 5 Constructing & Planning ~87 units* Russia, 8 France, 1 Romania, 1 N. Korea, 1 US, 8 UK, 4 Finland, 2 Japan, 11 India, 10 Ukraine, 2 Taiwan, 2 Taiwan, 2 Turkey, 1 S. Korea, 3 China, 6 China, 29 Source: World Nuclear Association, Nuclear Energy Institute 439 reactors under operation today Funding or major commitment made..most expect operation within 8 years, excepting US, UK. Taiwan

20 USA New Nuclear Order long-lead items Site preparation COL review COL Approval Arrange financing Load fuel COL submitted Pre-COL construction Construction Start-up testing (4-6 months) Commercial operation

21 USA - Expectations Initial wave: 4-8 plants on line by Suppliers ramp up component manufacturing capability Second wave under license review, conducting pre-col site work Second wave begins construction when it is clear that first wave can be licensed and built on time and within budget

22 Old Two-Step Licensing Process (10 CFR Part 50) Construction permit application Hearing* Construction Operating license application Hearing* *Potential for challenge Operation

23 New COL Process Reduces Uncertainty (10 CFR Part 52) COL application and review References a certified design; may reference an early site permit Hearing Construction Inspections, Tests, Analyses and Acceptance Criteria (ITAAC) review Potential hearing Operation Potential for challenge, but major capital investment has not occurred High threshold for hearing (must prove ITAAC have not been or will not be met) and narrow scope if it occurs

24 Nuclear Power Plants The Old Way Construction before engineering & licensing were complete Each design & project was unique Project arrangements cumbersome Weak cost & schedule controls Information technology and modularization was non-existent Project Cancellations Utility Bankruptcy Dresden-1, the first commercial plant in the U.S. Not Cost Effective Or Timely

25 Nuclear Power Plants The New Way Advanced designs Pre-licensed Early Site Permits Combined Construction and Operating Licenses Engineering complete before construction Extensive use of information technology Containment New construction techniques Standard Plant commitment Quality Assurance focus Safety conscious work environment Advanced Faster More Economic Heat Exchanger using the Open- Top Method

26 Construction Techniques RCCV liner RCCV Rebars Roof Truss Steels Central Mat Top Slab RPV Installation

27 BWR & PWR Comparison

28 PWR vs. BWR the main differences Pressurized Water Reactor Boiling Water Reactor Pressurizer Pressure / Temp perature Reactor Pressure Vessel Steam Generator Turbine Generator RPV 1 loop heat balance/ heat transfer T/G Condenser 2 loops heat balance/ heat transfer Condenser

29 BWR evolution 50 years in the making ESBWR Gen IV Passive Safety Simplified Design Dresden 1 KRB Oyster Creek Dresden 2 ABWR Gen III Active Safety

30 Optimized Parameters for ESBWR Parameter BWR/4-Mk I BWR/6-Mk III ABWR ESBWR Power (MWt/MWe) 3293/ / / /1550 Vessel height/dia. (m) 21.9/ / / /7.1 Fuel Bundles (number) Active Fuel Height (m) Power density (kw/l) Recirculation pumps 2(large) 2(large) 10 zero Number of CRDs/type 185/LP 193/LP 205/FM 269/FM Safety system pumps zero Safety diesel generator zero Core damage freq./yr 1E-5 1E-6 1E-7 1E-8 Safety Bldg Vol (m 3 /MWe)

31 Collective Dose Per Megawatt Year ( ): As Generation Increases, Radiation Exposure Continues to Decrease Collective Dose (pers son-rem) per MW-Year ' billion kilow watthours ABWR 0 LWR BWR PWR Nuclear Generation Source: NRC; Occupational Radiation Exposure at Commercial Nuclear Power Reactors and Other Facilities 2003 (NUREG-0713). Updated 11/04

32 GE - New Unit Platforms ABWR 1350MWe Net Certified in USA, Japan and Taiwan Built in 39 months (1st pour to Fuel) Global Supply Chain in place The only Gen 3 design in operation Lower Dose Japan Taiwan US Other ESBWR 1520MWe Net Simplified, passive design Natural circulation ~20% cost reduction Improved Safety & Security Lower Dose / Reduced Rad waste US UK Other

33 ABWR experience Kashiwazaki 6&7 Japan Hamaoka 5 Japan Shika 2 Japan Lungmen 1&2 Taiwan Shimane 3 Japan Online Online Online Building Building Ohma Japan Higashidori 1, (TEPCO) Japan Building Site Prep Fukushima 7&8 Japan Planning STP / NRG 3&4 USA Planning Kaminoseki 1 Japan Planning Higashidori 2, (TEPCO) Japan Planning Kaminoseki 2 Japan Planning Higashidori 2, (Tohoku) Japan Planning

34 Construction Time - Existing Nuclear Plants Source: IEA World Energy Outlook 2006

35 GE Hitachi Alliance A 50+ year old technology relationship Over 30 years of nuclear partnership Complementary capabilities Scale and size few overlaps Experienced Partners on ABWR Joint-experience to next gen ESBWR Services, Manufacturing & Engineering GE Chairman & CEO, Jeff Immelt and Hitachi Ltd President & CEO, Kazuo Furukawa Synergies

36 Meeting the Challenges Supply Chain Global supply chain management Local partnering (craft labor, EPCs, etc.) Strategic long-lead materials orders and plans in place

37 Next Gen Reactors Customer / Industry Objectives Simplified design Lower capital costs Faster construction period Design for O&M lower cost easier Fewer O&M staff / less specialized Streamlined Licensing Improved safety and security Lower dose & reduced waste Risk sharing & financing options Standard design

38 To help protect your privacy, PowerPoint prevented this external picture from being automatically downloaded. To download and display this picture, click Options in the Message Bar, and then click Enable external content. ESBWR certified as ecomagination product The ESBWR does not emit greenhouse gases during power generation Compared to the current mix of U.S. electricity, the electricity produced by a 1520MW ESBWR nuclear reactor would avoid the emissions of 7.4 million tons of greenhouse gases per year, or the equivalent of taking 1.3 million passenger cars of the roads for one year. The ESBWR draws upon the experience of GE s installed base of 35 boiling water nuclear reactors in the U.S. which generate over 6% of America s electricity and avoid the emission of 170 million tons of greenhouse gases each year, as well as preventing over 375 thousand tons of NOx, 750 thousand tons of SOx, and 3.4 tons of mercury (Hg) from being emitted each year.

39 Services Technology

40 Nuclear Services Field Services Performance Parts Modifications Maintenance Instrumentation Under-vessel services Underwater submarines & robotics Dry Fuel Storage Power uprates Life extensions Performance services Consulting services BWR Owner s Group Reactor modifications Digital controls Chemistry Repairs Alloy 600 Renew TM Dedication center Control rods Reactor internals Steam dryers Fuel casks Pwr (%OLTP) ELLLA MELLLA SPU MELLLA+ EPU reactor operating domain ICF Flow (%) 100

41 Services Technology Invader Inspections Fiber Optic Sensors Repairs Jet Pump Inspection

42 Fuel Technology

43 Firewall VPN Router BWREDB /PERM Public Internet GE Engineers VPN Router Private Network Firewall OpenVMS Systems Next-Generation Fuel Evolutionary Design GNF2 LUAs MOX Fuel Bundle GNF2 Fuel Bundle ACR GNF3 & ESBWR Customer Value N-Streaming CODE Remote Computing GE DMZ Customer Server Server Business-to-Business VPN GE Customer Services Network Atlanta Channeled Fuel Axial Enrichment Candu Fuel Delivery & Reactor Engineering Support Fuel Reliability P9 Tubing Zr-4, NSF Channels Advanced Materials Defender Additive Fuel

44 GE Enters Uranium Enrichment GENERATION PROCESS % OF EXISTING PRODUCTION 1 1 Remainder from HEU Gaseous Diffusion Centrifuge Laser Isotope Separation 1 st Mechanical 45% 2 nd Mechanical 40% 3 rd Laser Excitation 0% - Resolved roadblocks to attaining projected laser isotope separation efficiencies - GE/Silex synergies to commercialize this innovative technology - Closed the deal Oct 4 th 2006.Transition from Australia completed - Security clearances approved Test Loop construction underway - Hitachi and Cameco joins GE team. - Go / No go full scale enrichment January 09

45 Enrichment Demand & Supply SWU Million WNA 2005 World SWU Demand Upper & Reference * Tenex production does not include tails re-enrichment. Repu/Mox RU HEU Tenex Other LES/NEF Urenco Eurodif USEC Source: Enrichment Market Outlook

46 Advanced Programs

47 Advanced Recycling Closes the Nuclear Fuel Cycle Electrometallurgical Recycling Advanced Recycle Reactor - PRISM

48 Isotope technology Cobalt 60 Cancer treatment Non-invasive brain surgery ~½ million people treated Growth ~ 10%/yr 12% replenished each year $100M+ segment by 2013 Cobalt 60 Food & medical sterilization Molybdenum 99 - Diagnostics (GE Healthcare) 80% of all nuclear medicine Immediate need at GE Healthcare $200M+ segment by gamma irradiators in use 400 million curies installed base by 12 12% replenishes each year Growth ~ 10%/yr 40 year proven technology FDA approved $100M+ segment by 2013

49 People

50 USA Work Force Challenge Nuclear engineering enrollments up dramatically > Undergraduate: from 470 in the academic year to 1,933 in > Graduate: from 220 in the academic year to 1,153 in the academic year Joint initiatives with organized labor and the Departments of Labor, Education, and Defense Industry-community college programs in 14 states Skilled crafts: collaborative programs in 10 states

51 GE Talent Infusion 2007 Hiring Demographics 500 hires Mix of college & experienced talent Building solid bench Hired 500 more in 07 Yrs. Experience

52 GE Engineering / Project Demographics YE02 Average 52.2 YE03 Average 51.4 YE04 Average 50.4 YE05 Average 48.1 YE06 Average 47.5 Average age now 46 Down from 52

53 Redefining Leadership Growth Generation External Focus Defines success in customers terms Operates outside the bounds of GE walls Clear Thinker Simplifies strategy into specific actions Makes decisions communicates priorities Imagination & Courage Creative & challenging Big swings versus incremental thinking Inclusiveness & Connection Energizes global teams Builds loyalty and commitment Expertise Functional and domain knowledge Depth source of confidence to drive change

54 Summary Nuclear energy very safe & competitive Carbon accelerates the nuclear option Energy Security, Oil & Gas a major issue Technology advances PWR, PHWR & BWR Global marketplace is expanding Industry is gearing up for new build People are coming back to Nuclear Energy Nuclear must be a part of the energy and environmental solution World Nuclear Association is key

55 Questions?