Opportunities in nuclear. Ollie Barnes Senior Energy Analyst EIC

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1 Opportunities in nuclear Ollie Barnes Senior Energy Analyst EIC

2 Floor Plan

3 Nuclear New Build The nuclear industry brought more than 9GW of new plant on line worldwide last year, the largest annual increase in 25 years. World Nuclear Association, 2017

4 UK New Build Moorside NuGen? Sizewell C EDF Energy/CGN 3,200MW 2 x EPR Wylfa Horizon Nuclear Power 2,700MW 2 x ABWR Bradwell B CGN/EDF Energy 1,150MW 1 x HPR1000 Hinkley Point C EDF Energy/CGN 3,200MW 2 x EPR Oldbury Horizon Nuclear Power 2,700MWW 2 x ABWR

5 UK New Build Cost of the project risen to 19.6 billion Recent contract activity: Balfour Beatty replaced Costain as preferred bidder on 200m+ marine and tunnelling package Ovivo secured 27 million contract for cooling water intake screening system Nuvia won 20 million EPC for Nuclear Sampling System ClydeUnion Pumps to supply 16 safety related pump packages ABB awarded 130 million power transmission package Hinkley Point C Engie no longer involved in the project Sold 40% stake to Toshiba following Westinghouse bankruptcy KEPCO in talks over involvement in the project would want to use own reactor design New investor for early 2018 Moorside Nuclear Site License submitted in April 2017 GDA on course for completion in December 2017 Korea Hydro & Nuclear Power in talks with Horizon about cooperation on project Wylfa

6 Hinkley Point C Supply Chain Primary Partners Nuclear Steam System Supply Areva Turbine Hall Marine Works Main Civil Works GE Power Balfour Beatty BYLOR Bouygues TP Laing O'Rourke Heating & Ventilation ACTAN Cofely Axima / Doosan / Tunzini Electrical & Cabling Installation Balfour Beatty Bailey Balance of Nuclear Island Mechanical Erection Cavendish Boccard Nuclear Earthworks Keir BAM Nuttal Awarded / Preferred T1-2-3 Suppliers Large Cooling Water Pumps Weir Pumps Main Feed Water Pump & Cooling Water Pumps SPX Clyde Union Power Transmission ABB UK Temporary Jetty Construction Dean & Dyball Civil Engineering Ltd Heat Exchangers Sub-assemblies Rolls-Royce Waste Treatment Systems Rolls-Royce & Nuvia Reinforcing Steels Express Reinforcement Fuel Pool Liners Darchem & Efinor Intake Filtration Systems Ovivo Medium Voltage Switchgear Schneider Electric Construction, Accommodation & Project Management Construction of Workers Campus Accommodation Laing O'Rourke Construction of Temporary Buildings Premier Interlink WACO UK Project Management Site Operations & Equipment Contract Management KBR Project Management of Building & Civil Work Jacobs NEC Contract Management Services Gleeds NEC Contract Management Services Faithful & Gould Project Controls and Project Management Turner & Townsend NEC Contract Management Services Mace Bypass Construction & Highway Improvements Aggregate Construction Construction Utilities incl. Electrical Networks COMA

7 Global New Build France ITER Fusion Project ITER Organisation Fusion4Energy EU organisation First plasma expected in 2025 Egypt Dabaa 4,800MW 4 x AES-2006 Rosatom Construction underway Start-up 2024 Finland Hanhikivi 1,200MW 1 x AES-2006 Fennovoima/Rosatom Construction license due in 2019 Start-up 2024 Turkey Akkuyu 4,800MW 4 x AES-2006 Rosatom Construction license due by end of 2017 Nuclear construction to start in 2018 Start-up 2023 South Africa Duynefontein 4,000MW Eskom Start-up late 2020s

8 No. of Nuclear Reactors Other new build markets China Hungary India Romania Russia Saudi Arabia South Korea Turkey Planned Under Construction Operational United Arab Emirates

9 Nuclear Decommissioning A total of 200 reactors, about 38% of all those now in operation, will be shut down over the next 25 years. International Atomic Energy Agency

10 UK Nuclear Decommissioning Sites Dounreay Hunterston A Chapelcross Sellafield Trawsfynydd Wylfa Berkeley Oldbury Hinkley Point A Harwell Sizewell A Bradwell Dungeness A Winfrith

11 Sellafield Priorities Hazard reduction - Ponds, Silos and Highly Active Liquor Recent Activity OneAIM (Amec Foster Wheeler and Interserve JV) awarded 160 million Operations Site Works Framework LINC with Sellafield launched Procurement New procurement schemes Programme and Project Partners (PPP) New SME Portal Procurement Plan Monthly plan detailing contracting opportunities for new and existing suppliers Opportunities to work with Sellafield Ltd directly, as well as indirectly as a subcontractor Sellafield Ltd does not have a preferred suppliers list Highest hazard facility in Europe 1.2 billion spend in the supply chain per annum Programme of work into the 2100s More than 200 buildings with a significant nuclear inventory Sellafield Ltd working with more than 600 suppliers every year

12 Magnox Site Interim State Site End State Berkeley Bradwell Dungeness A Hinkley Point A Oldbury Sizewell A Trawsfynydd Wylfa Chapelcross Hunterston A Care & Maintenance Preparations Reactor safestore preparations Waste processing & dispatch ILW packaging ILW Store construction (as required) Redundant facility demolition/make safe Land management Site Interim State Care & Maintenance Preparations Reactor safestore preparations Waste processing & dispatch ILW packaging ILW Store construction Redundant facility demolition/make safe Land management Care & Maintenance Care & Maintenance Safestore inspection & maintenance Other facilities inspection & maintenance ILW package monitoring & inspection Dispatch of ILW packages Demolition of ILW Store as required Land monitoring Reactor Dismantling & Site Restoration Safestore inspection & Reactor dismantling maintenance Demolition of all other Other facilities facilities inspection & Waste processing & maintenance dispatch ILW package monitoring ILW packaging & inspection New ILW Store Land monitoring construction Land remediation Long Term Storage of ILW Final Site Clearance Reactor dismantling Demolition of all other facilities Waste processing & dispatch Land remediation Surrender nuclear site license & EPR10 license ILW package monitoring & inspection Replacement ILW Store construction Final Site Clearance Dispatch of ILW packages Demolition of ILW Stores Surrender nuclear site license & RSA93 authorisation

13 EDF Energy Plants Torness Plant Dungeness B Hunterston Hartlepool Hartlepool Heysham 1 Heysham Sizewell B Heysham 2 Hinkley Point B Hunterston B Torness Hinkley Point B Dungeness Sizewell B 2017

14 Procurement Site License supplier websites OJEU Procurement plans Contracts Finder Complete Tender Management Achilles Companies to consider for NDA Estate opportunities Wood Jacobs Assystem Mott McDonald Cavendish Nuclear URS Morgan Sindall Arup Nuvia Jacobs Hertel Studvik Energy Solutions Shepley Engineering React James Fisher Nuclear Atkins Areva Bendall Engineering Westlakes Engineering Nukem Technologies NSG Environmental Nuclear Technologies Carillion Ansaldo NES Ltd Doosan Power Systems National Nuclear Laboratory Thomas Graham

15 No. of Reactors Ageing nuclear fleet Years

16 Europe Decommissioning Germany All 17 units to close by 2022 Nine shut down so far Major contracts being awarded for D&D Sweden Oskarshamn 1 shut down in June 2017 GE Hitachi awarded three-year contract to dismantle reactors Work to begin in 2018 through to 2020 Belgium All seven of country s reactors to close by 2025 Two sites Doel and Tihange Eastern Europe Bulgaria Kozloduy 1-4 Lithuania Ignalina 1 & 2 Slovakia Bohunice V1 1 & 2 Ukraine - Chernobyl Switzerland Referendum to phase out nuclear Five reactors will remain in operation until no longer safe to operate First closure expected in Mühleberg

17 Other decommissioning markets Japan Ongoing work at Fukushima UK companies involved Amec Foster Wheeler, James Fisher Nuclear, Oxford Technologies Other plants announced for decommissioning so far - Genkai 1, Hamaoka 1&2, Ikata 1, Mihama 1&2, Shimane 1, Tokai 1, Tsuruga 1 Monju Fast Breeder Reactor to be decommissioned opportunities for companies working at Dounreay South Korea Future of nuclear sector uncertain following election of new President Cancelled plans for six new units will seek to close oldest units First commercial nuclear power plant closed in June 2017 Kori 1 owned and operated by KHNP France Reduction of nuclear share in electricity mix Will require closure of up to 17 of the country s 58 units Schedule expected in government energy plan in 2018

18 Conclusion Opportunities across new build and decommissioning sectors in the UK and globally Cost reduction but not quality reduction! Important to remember decommissioning is not just pulling stuff down! Opportunities for oil and gas companies especially in decommissioning Must prove not just involved for the short term while oil price lower Majority of nuclear power plant construction is non-nuclear >60% UK nuclear new build spend to go to UK firms 3 billion spend per annum in UK nuclear decommissioning supply chain 600 million spend in UK supply chain on existing nuclear fleet 55 reactors under construction around the world 200 reactors to be shut down over the next 25 years

19 Thank you