Nonproprietary

© 2015 NuScale Power, LLC

NuScale Supply Chain

Scott Bailey Vice President, Supply Chain

NuScale Nonproprietary

Acknowledgement & Disclaimer This material is based upon work supported by the Department of Energy under Award Number DE-NE0000633. This report was prepared as an account of work sponsored by an agency of the United States (U.S.) Government. Neither the U.S. Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the U.S. Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. Government or any agency thereof.

2

NuScale Nonproprietary

Presentation Outline

NuScale Plant Description - Highlights Unique attributes Plant equipment Commercialization Schedule Supply Chain Quality Questions

3

NuScale Nonproprietary

Plant Description

4

NuScale Nonproprietary

The NuScale Power Module

A NuScale Power Module (NPM) includes the reactor vessel, steam generators, pressurizer and containment in an integral package that eliminates reactor coolant pumps and large bore piping (no LB-LOCA)

Each NPM is 50 MWe and factory built for easy transport and installation

Each NPM has its own skid-mounted steam turbine-generator and condenser

Each NPM is installed below-grade in a seismically robust, steel-lined, concrete pool

NPMs can be incrementally added to match load growth - up to 12 NPMs for 600 MWe gross (~570 net) total output

5

NuScale Nonproprietary

Coolant Flow Driven By Physics

Convection – energy from the nuclear reaction heats the primary reactor coolant causing it to rise by convection and natural buoyancy through the riser, much like a chimney effect Conduction – heat is

transferred through the walls of the tubes in the steam generator, heating the water (secondary coolant) inside them to turn it to steam. Primary water cools.

Gravity – colder (denser) primary coolant “falls” to bottom of reactor pressure vessel, cycle continues

6

NuScale Nonproprietary

Reactor Building Cross-Section Reactor building houses reactor modules, spent fuel pool, and reactor pool

reactor building

crane refueling machine pool water

weir

reactor vessel flange tool containment vessel

flange tool

NuScale Power Modules

biological shield reactor building

spent fuel pool

7

NuScale Nonproprietary

Site Aerial View

annex building

warehouse

cooling towers A

cooling towers B

reactor building

administration building

radwaste building

switchyard

turbine building B

ISFSI (dry cask storage)

turbine building A

parking

control building

protected area fence

security ingress/egress

8

NuScale Nonproprietary

Unique Attributes (For Supply Chain)

9

NuScale Nonproprietary

Supply Chain Attributes

Smaller OEM equipment 50 MW steam turbine generator sets (nominal) 112 MVA Main Transformers

Smaller piping and associated components main steam line is 16″ largest safety-related pipe size is 12″

Less safety-related systems and associated equipment no safety-related pumps no safety-related AC power

Factory built—modules, skids, OEM equipment 12 individual balance of plant systems

10

NuScale Nonproprietary

Typical LWR Safety Systems

Systems and Components Needed to Protect the Core

Reactor pressure vessel Containment vessel Reactor coolant system Decay heat removal system Emergency core cooling system Reactor protection system Containment isolation system Ultimate heat sink Residual heat removal system Safety injection system Refueling water storage tank Condensate storage tank

Auxiliary feedwater system Emergency service water system Hydrogen recombiner or ignition

system Containment spray system Reactor coolant pumps Safety-related electrical Distribution

systems Alternative off-site power Emergency diesel generators Safety-related 1E battery system Anticipated transient without scram

(ATWS) system

11

NuScale Nonproprietary

NuScale Safety Systems

12

NuScale Nonproprietary

The NuScale Supply Chain

Unique—not like a traditional power plant More like manufacturing (e.g. Boeing), less like

construction (e.g., EPC company) Select and develop a set of supplier partners for all

NuScale plants, not a bid list for one plant the NuScale power plant comes with ECCS valves manufactured

and supplied by [fill in the blank] pricing models and terms negotiated in advance suppliers are vested in the long term viability of NuScale

13

NuScale Nonproprietary

Plant Equipment

14

NuScale Nonproprietary

Equipment & Mat’l Summary

Per 12-Module Plant Over 170,000 cy of concrete Over 5000 tons of steel Over 150,000 linear feet of pipe Over 39,000 valves Over 7 million linear feet of wire and cable Over 1.5 million linear feet of conduit Over 48,000 linear feet of cable tray Over 12,000 instruments Over 500 items of electrical equipment (switchgear, MCCs, PDCs,

inverters, VFDs etc) Over 900 misc. items of mechanical equipment

15

NuScale Nonproprietary

Equipment Summary

Per 12-Module Plant 36 module protection system cabinets 48 reactor trip breakers 36 ion exchangers 43 heat exchangers (1 to 42 Mbtu/hr) 55 variable frequency drives (480V) 334 pumps (5 to 85,000 gpm) 82 tanks (25 to 300,000 gallons) 158 HVAC units (370 to 50,000 cfm)

16

NuScale Nonproprietary

Equipment Highlights

B/U diesel (2) - 480V 1650kW/2063KVA Steam turbine generator package 45-50MW Main power transformer (4) - 112 MVA @ 13.8kV/345kV Unit auxiliary transformer (8) - 16.7 MVA @ 13.8/4.16 Reactor building crane (1) - 750 tons, 44 ft lift, 69 ft span Feedwater heaters (36) - 1,100 gpm, 24 to 42 Mbtu Condensate pump (36) - 575 gpm at 370 ft Feedwater pump (36) - 575 gpm at 1200 ft Circ water pump (6) - 85,000 gpm at 80 ft Cooling tower (2) - 260,000 gpm,

17

NuScale Nonproprietary

Commercialization Schedule

18

NuScale Nonproprietary

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Start COLA

Submit COLA

NRC Issue COL

Submit DCA

NRC Issue DC

Module 12 COD

Start Operational Readiness Program

Complete Operational Readiness Program

Module 1

COD

Operator Training Program Accreditation

Start Finalized Plant Design

Complete Final Plant Design

Reference Plant Design

Project Development

Operations

Deliver Module 12

Deliver Module 1

Start Module Fabrication

Order Modules

Schedule

Licensing

Construction and Fabrication

Design & Engineering

Site Selection

Phase 1 Project Scope and Feasibility

Phase 2a: Commercial, Structuring and Site Activities

Site Characterization Site

Mobilization

1st Fuel load

1st Safety Concrete Pour

Site Prep

19

NuScale Nonproprietary

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Start COLA

Submit COLA

NRC Issue COL

Submit DCA

NRC Issue DC

Draft DSRS

Final DSRS

Module 12 COD

Start Operational Readiness Program

Complete Operational Readiness Program

Module 1

COD

Operator Training Program Accreditation

Start Finalized Plant Design

Complete Final Plant Design

Reference Plant Design

Operations

Deliver Module 12

Deliver Module 1

Start Module Fabrication

Order Modules

Supply Chain Commercialization

Licensing

Construction and Fabrication

Design & Engineering

Site Selection

Site Use Agreements

Define Team Members and structure

Develop Business Model

Onboard Partners

Site Characterization Site Prep &

Mobilization

1st Fuel load

1st Safety Concrete Pour

Onboard Supply Chain Partners • Fabricators • OEMs • Module manufacturing • BOP

Project Development

20

NuScale Nonproprietary

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Start finalized plant design

Complete final plant design

Reference plant design

Supply Chain Commercialization Design and Engineering

Design Specifications

Purchase Specifications

21

NuScale Nonproprietary

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Deliver Module 12

Deliver Module 1

Start module fabrication

Order modules

Supply Chain Commercialization Construction and Fabrication

Site prep & mobilization

1st safety concrete pour

Equipment Ordering Begins Equipment Delivery Complete

1st fuel load

22

NuScale Nonproprietary

Get Involved…..Get Ready Join industry groups (eg Nuclear Infrastructure

Council)

Participate in nuclear supply chain conferences

Lobby your elected representatives & Spread the word (friends/family)

Get Qualified

23

© 2014 NuScale Power, LLC

TM

Nonproprietary

NuScale Power Supply Chain Quality

Joe Marsden Director Quality Assurance

August 21, 2015

NuScale Nonproprietary

“What it takes to be a Quality Supplier”

Quality Requirements Supplier Evaluation and Selection Supplier performance oversight Owner Acceptance

Industry supplier focus areas

25

NuScale Nonproprietary

NuScale QA commitments

Nuclear Safety Related 10 CFR 50 App B ASME NQA-1 2008/2009 10 CFR 21 Nuclear Safety Culture

Augmented Quality (S) - A quality classification used to

identify nonsafety-related items or services designated as significant contributors to plant safety Equipment identified required to be highly reliable SSC functions identified as important to safety

26

NuScale Nonproprietary

NuScale QA commitments

NuScale QA is required to evaluate suppliers QA program prior to placing order.

Purpose to evaluate a supplier’s ability to provide items or services in accordance with NuScale technical and QA requirements

Monitoring supplier performance through periodic review using annual evaluations, audits, commercial grade surveys, surveillances, and/or the owner acceptance review process

27

NuScale Nonproprietary

Nuclear Supplier Actions

1. New Nuclear supplier- develop QA Program that meets ASME NQA-1 2008/2009 requirements

2. Existing Nuclear supplier- perform a gap analysis of your QA Program against ASME NQA-1 2008/2009 new requirements from earlier editions and implement necessary changes

3. Implement necessary changes to implementing procedures 4. Train personnel to QA program, Nuclear Industry Safety

Culture expectation 5. Perform an internal audit to validate implementation 6. Submit your QA Program to NuScale for review 7. Request a QA Program qualification audit 8. Resolve any audit findings that result from the audit

28

NuScale Nonproprietary

NuScale Supplier focus areas

Commercial Grade Dedication Commercial calibration services Engineering Analysis software requirements Safety Related reactor vent valves, recirculation valves,

containment isolation valves, emergency core cooling valves

Primary system pressure, temperature, flow instrumentation (embedded software)

Neutron monitoring system Reactor Trip Breakers Highly reliable (augmented quality) electrical equipment

(switchgear, MCCs, PDCs, inverters, VFDs etc)

29

NuScale Nonproprietary

Industry Issues

NRC Recent observations from NRC inspections identified a general lack of rigor in oversight of suppliers Nuclear industry expectations for quality go way beyond just

what is safety related. Augmented quality requirements imposed on supporting systems and components that contribute to plant safety

Ensuring procurement (design and testing) requirements are being fulfilled including adequate qualification testing

Ensuring suppliers and sub-suppliers are suitably qualified for and capable of performing PO requirements (i.e., scope of supply)

30

T

• Lack of Identification, evaluation, or completion of Corrective Action requirements –Untimely corrective actions –Incomplete implementation of CAs –Failure to address and prevent recurrence

Industry Issues

NuScale Nonproprietary

INPO Guidance INPO 14-005: Nuclear Safety Culture: Safety Conscious Work Environment Equipment configuration control and understanding of safety

related application of your equipment Qualification of your supply chain and cascading of

technical/quality requirements to sub-suppliers Personnel are trained and qualified for their assigned tasks Understanding of Quality requirements, documentation

expectations and incorporation of these into your work planning documents

Documentation of discrepancies in problem identification and resolution process

Principles for Excellence in Nuclear Supplier Performance

32

The Element of Nu

Presenter Title Email www.nuscalepower.com

33

Scott Bailey Vice President, Supply Chain sbailey@nuscalepower.com Joe Marsden Director, Quality Assurance jmarsden@nuscalepower.com