UK SMR Action Plan 6 September 2017
1. PROVIDING A SOLUTION TO THE UK ENERGY CHALLENGE SMRs offer a low-carbon, secure, cost-competitive solution to the UK s growing energy challenge providing a low-carbon replacement for retiring coal-fired power stations, a replacement for an ageing nuclear fleet, and helping the UK meet its decarbonisation targets. SMRs will complement increasing levels of intermittent generation coming online and meet future capacity need created by increased demand from the electrification of transport. COST-COMPETITIVE: NuScale has published independently verified cost estimates which show a levelised cost of electricity (LCOE) for a first-of-a-kind plant of around 60/MWh, significantly lower than the 95/MWh LCOE estimated for large-scale nuclear by the UK Government. COST SAVINGS: Repetitive factory fabrication, application of advanced manufacturing techniques and other key learnings could reduce the LCOE of subsequent NuScale power plants by around 10%. The cost of providing modules will fall as more NuScale Power Modules are fabricated for the UK and European market. FUTURE CAPACITY NEED: The UK faces a 40-55% capacity gap due to increased electricity demand coupled with retirement of coal-fired power stations and an ageing nuclear fleet (Institution of Mechanical Engineers, January 2016). A shift to electric vehicles, with between 23-25 million on UK roads by 2050, could see peak demand rise by up to 18 GW (National Grid Future Energy Scenarios, July 2017).
2. BRINGING AN OPPORTUNITY FOR UK LEADERSHIP AND INTERNATIONAL PARTNERSHIP With world-class civilian nuclear capabilities, the UK has an opportunity to become a global leader in the development and deployment of innovative nuclear technology, seizing first-mover advantage of a UK-U.S. partnership on SMRs. UK-U.S. PARTNERSHIP: A UK-U.S. partnership offers the best option for near-term delivery of SMRs. NuScale is already working with a number of UK companies and organisations including Ultra Electronics, Sheffield Forgemasters, the Nuclear Advanced Manufacturing Research Centre and the University of Sheffield. ULTRA ELECTRONICS: NuScale has established a strategic partnership with Ultra Electronics, a FTSE 250 company. The partnership sees Ultra integrate its design expertise in developing reactor protection systems and other safety-related instrumentation into the NuScale SMR. SHEFFIELD FORGEMASTERS: The company is delivering a forging demonstration of an advanced reactor component using the reactor vessel head of NuScale s SMR design. This project will help develop manufacturing techniques needed to deploy SMRs in the UK as part of a programme run by Innovate UK. NUCLEAR AMRC SHEFFIELD: NuScale is working with the Nuclear AMRC to find innovative manufacturing and supply chain solutions needed to deploy NuScale SMRs in the UK. NuScale held its first UK Supplier Day at the AMRC in 2016 with the participation of over 100 UK-based engineering, manufacturing and construction companies. UNIVERSITY OF SHEFFIELD: NuScale has established a fully-funded internship with the University of Sheffield and Oregon State University enabling UK undergraduates to spend three months at its operational base in Corvallis, Oregon to gain first-hand experience at the company s cutting-edge nuclear research centre.
3. DELIVERING FOR THE UK ECONOMY The UK has an opportunity to deliver a multi-billion pound SMR venture that will boost UK economic growth, productivity and wealth creation by providing high-value jobs, intellectual property rights and export opportunities for the UK s 65,000-person strong civilian nuclear workforce. UK CONTENT AND EXPORTS: IP OPPORTUNITIES: NuScale believes that the UK nuclear supply chain is capable of providing 85% or more of the content required for UK SMR deployments. This will provide high-value job opportunities and develop UK advanced manufacturing and engineering capabilities. NuScale offers potential IP opportunities through the adaptation of its design for UK deployment; need to manufacture first-of-akind equipment; and through the application of advanced manufacturing techniques. By supporting NuScale s SMR programme, the UK will be well positioned to capture a significant share of the global SMR export market potentially worth up to 400 billion by 2035.
4. REALISING THE NEAR-TERM OPPORTUNITY UK SMR deployment could be achieved within the next decade, through leveraging NuScale s mature design, U.S. Government support and pipeline of customer interest. DESIGN DEVELOPMENT: NuScale s SMR is a mature design with over $600 million and over 3.5 million person-hours invested in the project life-to-date. The company has used a fully instrumented, one-third scale, electrically heated test facility in Oregon since 2003, and a full-scale, multi-module control-room simulator since 2012. Both were first-of-a-kind for the U.S. SMR industry. LICENSING: NuScale has submitted the first ever SMR Design Certification Application (DCA) to the U.S. Nuclear Regulatory Commission (NRC), which was subsequently accepted for review in early 2017. This is the equivalent of entering the UK s Generic Design Assessment (GDA) process. WORLD CLASS EXPERTISE: More than 600 full-time engineering and licensing personnel have worked to support the development, completion and submission of the company s DCA, with support from over 50 companies and a Technical Advisory Board of leading industry experts. CUSTOMERS: NuScale has its first customer confirmed and line-of-sight to the first dozen projects. Plans are underway for deployments in the U.S. beginning 2026 through 2030. COMMERCIALISATION: Following a 46-month review process by the U.S. NRC, regulatory approval is expected in the early 2020s and will support the first commercial NuScale power plant. This plant, which Utah Associated Municipal Power Systems (UAMPS) will own, will be deployed on a site in Idaho with plans for it to generate electricity from 2026. U.S. GOVERNMENT SUPPORT: NuScale has strong support from the U.S. Department of Energy (DOE), which has awarded $217 million in matched funding over five years.
5. ENABLING SMRs VIA UK GOVERNMENT SUPPORT The UK Government can seize this once-in-a-generation SMR opportunity by providing long-term political support, the right market conditions, clarity on the regulatory review process, identification of sites, and continued support for UK nuclear capabilities. POLITICAL SUPPORT & RIGHT MARKET CONDITIONS: Government must demonstrate clear, long-term political support for multiple UK SMR deployments and create the right market conditions to address first-mover risk, by encouraging, attracting and incentivising potential SMR customers. IDENTIFICATION OF SITES: The UK Government must play a role in ensuring the availability of suitable sites for SMRs, in sufficient numbers and at reasonable cost. Those sites deemed too small or infrastructure limited for large-scale nuclear plants should be considered as potential sites for SMRs. REGULATORY OPTIMISATION: There is an opportunity for the UK to optimise its review process for new and advanced reactor technologies. The regulatory review process for these technologies should be both timely and efficient, and maximise the benefits of major nuclear regulatory reviews done elsewhere. CONTINUED SUPPORT FOR UK NUCLEAR INDUSTRY: The UK Government should continue supporting the nuclear industry s development of innovative techniques and skills to reduce manufacturing time and cost, ensuring UK suppliers are cost competitive and maximise economic benefits associated with SMRs. Efforts to improve the pipeline of skilled workers and measures to ensure that sufficient resources are available, must continue.
SMR TECHNOLOGY OVERVIEW A NuScale power plant is comprised of individual NuScale Power Modules, each producing 50 MWe (gross). Each power plant can include as many as 12 NuScale Power Modules to produce as much as 600 MWe, (gross). TRIED AND TESTED: NuScale s SMR design is based on tried and tested pressurised light water reactor (PWR) technology. Individual modules are fully factory fabricated, transported to a generating facility and installed on site. Modules can be fabricated in parallel with power plant construction, reducing construction time and cost a challenge for large-scale nuclear new build. SCALABLE AND FLEXIBLE: NuScale power plants are scalable. A plant can begin generating from the first module installed with additional modules added as customer demand for electricity increases. This reduces initial capital cost. The technology is ideally suited to supply energy for other applications such as district heating and desalination, as well as for chemical and hydrogen production. It has load following capability for integration with intermittent generation such as wind and solar. SMALLER FOOTPRINT: The smaller physical and environmental footprint of a NuScale power plant increases the number of sites that might be suitable for deployment, including sites previously discounted due to size or the infrastructure requirements of large-scale plants.
TECHNOLOGY OVERVIEW
A GLOBAL MARKET OPPORTUNITY FOR SMRs Canada 1,650 MW United Kingdom 7,000 MW Tunisia 160 MW Europe 2,140 MW Near East 1,500 MW Russia 10,000 MW Mexico 1,500 MW Brazil 6,200 MW China 15,000 MW USA 15,000 MW India 4,800 MW Chile 300 MW Argentina* 2,900 MW Middle East 1,330 MW South Africa 600 MW SE Asia 1,125 MW Australia* 2,000 MW *Potentially inaccessible e.g. moratorium on new nuclear build or nationalised energy sector. (National Nuclear Laboratory, 2014)
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