Academy for Lifelong Learning

Jose Reyes,Chief Technical Officer

HeadDept. of Nuclear Engineering

& Radiation Health Physics

Outline

The Global Energy Challenge Our Nation’s Energy Challenge The Nuclear Renaissance NuScale Power Conclusions

The Power Puzzle

56% GROWTH

IN WORLD

ENERGY

CONSUMPTION

BY 2025

World Energy Consumption Projections

207

243

285310

348366

412

504

553

598

645

0

100

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300

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1970 1975 1980 1985 1990 1995 2002 2010 2015 2020 2025

En

erg

y (1

015 B

TU

)

History Projections

2 billion people in the world do not have access to electricity

The 10 largest cities in 2015 will be in developing nations(million of inhabitants.)

Bombay 27.4 Jakarta 21.2 Beijing 19.4

Lagos 24.4 Sao Paulo 20.8 Dacca 19.0

Shanghai 23.4 Karachi 20.6 Mexico 18.8

% of families without access to electricity

Worldwide Access to Electricity

Our Nation’s Energy Challenges

“We simply cannot meet today’s energy needs – much less tomorrow’s – with yesterday’s energy infrastructure and technologies,”

- Energy Subcommittee Chairman Judy Biggert, 2005

Our Nation’s Energy Challenges(1) Growing Demand for Electricity

DOE projects that U.S. electric power demand will increase dramatically: From 3,883 Billion kW-hr (2003) to 5,220 Billion kW-hr

(2025) (~18 x 1015 Btu)

Would require an additional 153 new 1000 MW(e) plants by the year 2025!

Our Nation’s Energy Challenges(2) Dependence on Foreign Oil

U.S. imports more than 50% of the oil it consumes. About 20 Million Barrels/day

Accounts for more than half the trade deficit.

“Keeping America competitive requires affordable energy. Here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.” – President Bush

Our Nation’s Energy Challenges(3) Environmental Concerns

Greenhouse Gas Emissions Global Warming Acid Rain

Fossil Fuel Plants emitted over 1,700 Million tons of Carbon Dioxide into the Atmosphere in 2005

Fish and Wildlife concerns are closing Hydro-Electric plants

Our Nation’s Energy Challenges(4) Cost of Energy Production1995-2007, In 2007 cents per kilowatt-hour

Costs for Oil and Natural Gas continue to rise.

http://www.nei.org/documents/Vision2020_Booklet.pdf

0.0

2.0

4.0

6.0

8.0

10.0

12.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Coal - 2.47Gas - 6.78Nuclear - 1.76Petroleum - 10.26

2007

Our Nation’s Energy Challenges(5) Finding a Sustainable Energy Mix

Square miles of land required to produce 1,000 MW(e) Renewable energy

sources are diffuse.

Biomass (1000 Square Miles)

Wind (300 Square Miles)

Solar(60 Square

Miles)

Nuclear (0.33 Square Miles)

Why Nuclear Power?

• 1,780 pounds of coal

One Uranium Fuel Pellet

• 149 gallons of oil

• 17,000 cubic feet of natural gas

Pressurized Water Reactor

• Currently 104 operating nuclear power reactors in the U.S.

• 20% of total electrical generation

BREEDER REACTOR

NUCLEAR WEAPONS

CONVERSION TO FUEL

*500 YEAR SUPPLY

Recycling Used Nuclear Fuel

*Assuming 2x current annual electricity usage

Proprietary Information 15

Business Overview

NuScale is commercializing a 45 MWe system that can be “numbered up” to meet customer requirements of virtually any size.

NuScale technology developed and tested by Oregon State University. Company formed in 2007 with tech-transfer agreement from OSU.

Design innovations simplify construction, strengthen safety, reduce costs and financial risks, and improve reliability

Reliance on existing light water technology reduces regulatory risk and increases speed to market

Proprietary Information 16

Key Personnel Dr. Paul Lorenzini

Chief Executive Officer Experienced senior executive.

President, Pacific Power & Light CEO, PowerCorp Australia VP/General Manager, Rockwell Hanford

Operations

Dr. Jose Reyes

Chief Technical Officer Internationally recognized for leadership in

developing scalable test facilities for nuclear plants.

Designed, built and operated facilities used for NRC certification of Westinghouse AP600 and AP1000

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Strategic Partner - Kiewit Construction: NuScale / Kiewit MOU signed April 2008 Employee-owned company; $6 billion

annual revenue with 120 year history and 16,600 Employees

FORTUNE’s most admired company in the engineering and construction industry in 2007

Major power plant constructor Major commitment to new nuclear

projects based on past nuclear construction experience

Full “one-stop shop” capability 250-acre manufacturing facility in Corpus

Christi, Texas

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Kiewit Corporate HeadquartersOmaha, NE

The Team: Best In Class” Industry Partners and Contractors

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In addition to Kiewit, NuScale is working with industry partners, contractors, and suppliers to build a first class product delivery team.

NuScale Power Project Organization

PROPRIETARY INFORMATION

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Owner

Site selectionLicensing (ESP/COL)

Operations

A/E Constructor (Kiewit)

Design & Engineering (BOP)Project Management

Site Preparation & Construction

Nuclear Vendor (NuScale)

Design & Engineering (NSSS)Licensing (Certification)

Support services

Suppliers

Fabricate ModulesSteam Generator

ForgingsCRDM’s

Construction Simplicity: Entire NSSS is 60’ x 15’. Prefabricated

and shipped by rail, truck or barge

Natural Circulation cooling: Enhances safety – eliminates large

break LOCA; strengthens passive safety

Improves economics -- eliminates pumps, pipes, auxiliary equipment

Below grade configuration enhances security

Flexibility: Capacity additions match demand

growth On-line refueling improves reliability

The Product: Prefabricated, Simple, Safe…

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Only 1 of 2 FW trains

shown

… While relying on proven LWR technology

Light water technology utilizes large existing base of R&D

NuScale can be licensed within existing regulatory framework

Fully integrated prototype test facility available for licensing

“Off-the-shelf” systems (turbine-generators; fuel) facilitate commercialization

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Each module is an independent power module

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Multiple-Module Complex – Flexible Capacity (12 modules – 540 MWe)

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Multi-Module Control Room

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NuScale Nuclear Power Plant - Quick Facts

45 MWe, 150 MWt per module

Light Water Reactor technology - known, proven

Cooled by natural circulation

Steam generators integrated into reactor pressure vessel which is integrated into containment vessel

Compact and pre-manufactured - containment vessel is 60 feet by 14 feet

Standard LWR fuel assembly design - 6 feet in length

24 -30 month refueling cycle

Scalable: 1 to 24 modules per plant

Engineered Safety FeaturesHigh Pressure Containment Vessel Shutdown Accumulator System

(SAS)Passive Safety Systems

Decay Heat Removal System (DHRS) Containment Heat Removal System

(CHRS) Severe Accident Mitigation and

Prevention Design Features

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High Pressure ContainmentEnhanced Safety

Capable of 3.1 MPa (450 psia) Equilibrium pressure between reactor and

containment following any LOCA is always below containment design pressure.

Insulating Vacuum Significantly reduces convection heat transfer

during normal operation. No insulation on reactor vessel. ELIMINATES

SUMP SCREEN BLOCKAGE ISSUE (GSI-191). Improves steam condensation rates during a

LOCA by eliminating air. Prevents combustible hydrogen mixture in

the unlikely event of a severe accident (i.e., no oxygen).

Eliminates corrosion and humidity problems inside containment.

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Decay Heat Removal System (DHRS)

Two independent trains of emergency feedwater to the steam generator tube bundles.

Water is drawn from the containment cooling pool through a sump screen.

Steam is vented through spargers and condensed in the pool.

Feedwater Accumulators provide initial feed flow while DHRS transitions to natural circulation flow.

Pool provides a 3 day cooling supply for decay heat removal.

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Containment Heat Removal System (CHRS)

Provides a means of removing core decay heat and limits containment pressure by: Steam Condensation Convective Heat Transfer Heat Conduction Sump Recirculation

Reactor Vessel steam is vented through the reactor vent valves (flow limiter).

Steam condenses on containment.

Condensate collects in lower containment region (sump).

Sump valves open to provide recirculation path through the core. 30

Additional Fission Product Barriers

NOT TO SCALE

Fuel Pellet and Cladding Reactor Vessel Containment Containment Cooling

Pool Water Containment Pool

Structure Biological Shield Reactor Building

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Expert panel review confirms safety

June 2-3, 2008, a panel of experts convened to develop a Thermal-Hydraulics/Neutronics Phenomena Identification and Ranking Table (PIRT) for the NuScale module. Large-break LOCA eliminated by design Since all water “lost” out of the primary system can be

recovered by opening the sump recirculation valves, it is impossible to uncover the core during design bases LOCAs

Therefore even a small-break LOCA does not challenge the safety of the reactor

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Enhanced Public Safety

Greater seismic resistance Fewer accident scenarios - no LOCA,

inability to uncover core Simplified operations and safety

systems Multiple barriers and greater

security Smaller Emergency Planning Zone

Reduced licensing and technology risks

Relies on existing LWR technology and licensing base

Prototype integral test facility existing and available

Plant simplicity and safety advantages reduce licensing challenges

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Security and Safeguards AdvantagesSafety maintained without external powerBelow-grade

Power Module (NSSS and Containment)Control RoomSpent Fuel Pool

Low profile buildingContainment pool Impact Shield for aircraft

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Capturing the Economies of “small”

Smaller unit size reduces financial exposure Can be built faster in a series of smaller

units Interest during construction reduced Better regulatory treatment Moves NSSS construction off-site

Upfront capital requirements reduced

Capacity added to meet demand growth Less generation per shaft – avoids large

“single shaft risk.” “Pinch Points” avoided

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Forgings for conventional nuclear plants done by Japan Steel Works.

NuScale Status

Progress and Momentum in 2008 Engaged industry’s best Raised company profile Kiewit finalizing costs estimates and construction plan Second NRC pre-application held in November 2008 On track to file Design Certification application 2010 Discussing MOUs for feasibility studies with prospective

domestic and international customers

201 NW 3RD STREETCORVALLIS, OR 97330

541-207-3931

FOR MORE INFORMATION CONTACT:

PAUL LORENZINICHIEF EXECUTIVE OFFICER

PLORENZINI@NUSCALEPOWER.COM

Proprietary Information 38