Nuclear Energy Renaissance Opportunities and Challenges

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Stephanie Henderson
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1 Nuclear Energy Renaissance Opportunities and Challenges Richard Black Office of Nuclear Energy Associate Deputy Assistant Secretary for Nuclear Power Deployment

Nuclear Energy Challenge: Securing Our Energy Future Today, 104 nuclear reactors generate 20 percent of

To maintain the 20 percent nuclear share requires building the equivalent of 45 to 50

Nuclear power is the only proven base load producer of electricity that does not emit greenhouse gases.

2 Nuclear Energy Challenge: Securing Our Energy Future Today, 104 nuclear reactors generate 20 percent of America s electricity. U.S. electricity demand may grow by 50 percent over the next 25 years. To maintain the 20 percent nuclear share requires building the equivalent of 45 to 50 one-thousand-megawatt nuclear reactors. Nuclear power is the only proven base load producer of electricity that does not emit greenhouse gases. Nuclear power is necessary to meet our needs for carbon-free, dependable and economic electric power. North Anna Mineral, Virginia Grand Gulf Vicksburg, Mississippi Bellefonte Hollywood, Alabama ASQC Sept. 08 (2)

Nuclear Energy Why Support Expansion of Commercial Nuclear Power US Electricity Demand Increasing 300 GWe of additional capacity needed by 2030 50 GWe new nuclear capacity needed to maintain current

3 Nuclear Energy Why Support Expansion of Commercial Nuclear Power US Electricity Demand Increasing 300 GWe of additional capacity needed by GWe new nuclear capacity needed to maintain current share Only zero-emitting baseload technology that can be expanded by a significant margin to provide energy security and diversity BkWh 7,000 6,000 5,000 4,000 3,000 2,000 Electricity Generation by Resource Coal Natural Gas Nuclear Oil Ren Hydro Projected 1, Power companies are unwilling to increase by a significant percentage their market capitalization to build new nuclear plants Problematic Risks: Regulatory Uncertainty (Both NRC and State) Litigation Risk Economic Risk» Long Construction Durations» High Capital Costs and Commodity Price Escalation» Allocation of risk in EPC contract ASQC Sept. 08 (3)

4 Status of U.S. Reactor Licensing Applications ASQC Sept. 08 (4)

Nuclear Power 2010 Working with Industry to Build New Nuclear Plants Authorized by Energy Policy Act of 2005 (EPAct) Reduce technical, regulatory, and institutional barriers to new deployments Three

5 Nuclear Power 2010 Working with Industry to Build New Nuclear Plants Authorized by Energy Policy Act of 2005 (EPAct) Reduce technical, regulatory, and institutional barriers to new deployments Three Early Site Permit Demonstration Projects Address site suitability, environmental protection, and emergency planning issues Clinton, North Anna and Grand Gulf sites approved New Nuclear Plant Licensing Demonstration Projects Develop COL applications and obtain Nuclear Regulatory Commission (NRC) approval» 2 COLAs supported by NP 2010 submitted to NRC in first quarter FY 2008» TVA (NuStart) COL application docketed by NRC January 18» 2 additional COLAs submitted to NRC based on NP 2010 project activities Complete two light water reactor advanced designs (Westinghouse AP1000, GE ESBWR) Combined Construction and Operating License (COL) Guidance and Generic Issues Project Standby Support Insurance Incentive Loan Guarantee ($18.5B) & Production Tax Credit Incentive Support (1.8 kwh for 8 years -- but COL submitted by 12/31/08; Start Construction by 1/1/2014; Start Ops by 1/1/2021) ASQC Sept. 08 (5)

Gen IV Nuclear Energy Systems Initiative Purpose; Lead a global partnership to perform the R&D needed to develop the next generation reactors; Safe Secure Sustainable Economical Gen IV Program;

6 Gen IV Nuclear Energy Systems Initiative Purpose; Lead a global partnership to perform the R&D needed to develop the next generation reactors; Safe Secure Sustainable Economical Gen IV Program; focuses on long-term R&D; Sodium-cooled Fast Reactor (SFR) in support of Global Nuclear Energy Program (GNEP) Very High Temperature Gas Reactor (VHTR) in support of Next Generation Nuclear Power Plant (NGNP) NGNP Program; Provides the basis for commercializing a new generation of advanced nuclear plants to supply competitive, emissions-free, hightemperature process heat, co-generate electricity and/or hydrogen. ASQC Sept. 08 (6)

7 Global Nuclear Energy Partnership (GNEP) GNEP Purpose: A comprehensive strategy to support safe, secure civilian nuclear power expansion world wide; Work with other nations (23 Nations signed Statement of Principles) to develop and deploy advanced nuclear recycling and reactor technologies. Provide reliable, emission free energy with less waste burden Enhance nuclear safeguards to monitor nuclear materials and facilities Advanced Fuel Cycle Initiative (AFCI): The domestic technology development and deployment component of GNEP, to develop and demonstrate advanced fuel cycle technologies. Execute R&D program to address outstanding technical uncertainties and programmatic risk areas of advanced fuel cycles Continue industry engagement to develop information needed for fuel recycling facilities and used fuel management capabilities Collaborate with industry and utilities to develop appropriate systems and economics models ASQC Sept. 08 (7)

The Vision Hybrid Energy Systems Built Into Strategic Energy Parks Renewable-Electric Integration -Electrolysis or co-electrolysis driver -Additional electricity to grid

Nuclear Island -Present or future generation -Process heat and/or electricity Carbon Feedstock -Coal -Biomass Diverse Carbon Resource Nuclear Hybrid Energy Systems

8 The Vision Hybrid Energy Systems Built Into Strategic Energy Parks Renewable-Electric Integration -Electrolysis or co-electrolysis driver -Additional electricity to grid Hydrogen Generation Plant -Upgrade of fossil and bio feedstocks -Catalytic feedstock for CTL Liquid Fuels & Chemicals Plant -Coal and biomass to liquids -Process chemicals Nuclear Island -Present or future generation -Process heat and/or electricity Carbon Feedstock -Coal -Biomass Diverse Carbon Resource Nuclear Hybrid Energy Systems Strategic Energy Parks = Resilient & Secure Energy We can never be truly energy independent, but we must resolve to be more energy resilient. Sen. Jay Rockefeller ASQC Sept. 08 (8)

Gas Cleanup H 2 S Sulfur Product Little carbon is converted to CO² Nuclear Hybrid

9 Nuclear Hybrid Coal to Liquid Nuclear Plant Electrolyzers Fischer- Tropsch Synthesis Product Upgrade H 2 Synfuel 25,000 barrel s/day O 2 Coal 4,400 tons/day Gasifier CO 2 Gas Cleanup H 2 S Sulfur Product Little carbon is converted to CO² Nuclear Hybrid uses 70% less coal Remaining CO² recycled to gasifier No CO² emissions ASQC Sept. 08 (9)

10 Nuclear Energy: Challenges to Renaissance? The issues facing Nuclear Power expansion are financial, political, environmental and legal; these issues are interrelated. Financial: Significant risk to company s balance sheet and ability to obtain equity financing driven by:» Escalating commodity prices» Uncertain labor supply and construction experience» Engineering, procurement and construction delays» Costs of alternative energy sources U.S. Loan guarantee uncertainty Political: National nuclear energy policy lacking (including disposal Yucca or recycle?) Carbon tax uncertain Competing interests for government incentives/subsidies Uncertain regulatory rate recovery ASQC Sept. 08 (10)

11 Nuclear Energy: Challenges to Renaissance? Environmental: Availability and impact on water resources EPA Clean Water Act on best available technology to mitigate fish impacts Legal/Contractual: Complexity of EPC contracts Financial terms and conditions spreading risk of financing Liability between owner and vendor for delays or cost overruns ASQC Sept. 08 (11)