The UK and Small Modular Reactors

Mike Tynan Chief Executive Officer

May 2016

Nuclear New Build since 2006 – UK Case Study

• 2006-2010 – “nuclear renaissance”??

• 2011-2015 the search for investors

• Project costs increasing – each of the proposed schemes in UK now likely

to cost in the region of £20bn:

• HPC – EPR c3.5gw

• Wylfa Newydd – ABWR c3.0gw

• Moorside – AP1000 c3.4gw

• ABWR and AP1000 need to complete Generic Design Assessment

• No Final Investment Decision (FID) for at least two of the projects in the

near term

Delays in Nuclear New Build

• Potential FIDs:

• EPR 2016

• ABWR 2018/19

• AP1000 2018/19

• First Nuclear Concrete unlikely before:

• EPR 2017-18

• ABWR 2020-21

• AP1000 2020-21

• Commercial Operation Dates (unit 1 each site):

• “mid 2020’s”

• EDF data point for electricity price for CfD: £92.50 pmwh – HPC, reducing

to £89.50 pmwh if SZC goes ahead

Delays in Nuclear New Build

• Currently unlikely that any major components for nuclear island and

turbine island will be manufactured in the UK

• Up to c60% build value will be localised to UK: civil construction, marine

works, unclassified components, fixtures, fittings, HVAC, balance of plant

• Long term, high value, sustainable job creation constrained by lack of of

advanced manufacturing development

Alternative nuclear technology – Small Modular Reactor (SMR)

SMR Definition combines the International Atomic Energy Agency definition of “small reactor” (a reactor plant whose net electrical output is less than 300 MWe) and advanced, modularized construction intended to either reduce cost, or enhance some parameter(s) of safety or performance, or both. Most SMR designs feature component parts that are shop fabricated and shipped to the final operating site by truck, train or barge, and installed in a prepared facility

First DECC Feasibility Study

• Assessment convened 17 December 2013 • Report issued December 2014

International opportunities for UK suppliers

65-85GW by 2035 valued at £250-£400bn* * Source: SMR Feasibility Study (Dec 2014)

First DECC Feasibility Study

Conclusion The report concludes that there is an opportunity for the UK to regain technology leadership in the ownership and development of low-carbon generation and secure energy supplies through investment in SMRs. This has the potential to position the UK as a global technology vendor in these fields, and consequently to spearhead the development of the UK supply chain, enabling British businesses to develop their capability, and increase international trade.

Small Modular Reactor (SMR) Types

Vendor Claims for the SMR

• Design can be completed in the UK, creating local IP • Strike Price for electricity will be significantly lower than 1000mw+ reactors

• By how much? • Vendor will localise production in the UK

• Establish an SMR factory and UK supply chain • Advanced manufacturing and factory build of the NSSS will take place in UK

• Modularisation of NSSS and concrete infrastructure • High value Jobs created in UK • Volume production for export to global market

• Very significant market for SMRs where they fulfil a market need that cannot, in all circumstances, be met by large nuclear plants.

• Potential SMR market approximately 65-85GW by 2035 valued at £250-£400bn

• UK market for around 7GW of power from SMRs by 2035

Example SMR – CNNC ACP100+

Example SMR – Korean SMART

Example SMR – Westinghouse

Example SMR – MPower

Example SMR – NuScale

Forecast capability and capacity for 1000mw+ in the UK*

*Current assessment based on NIC Demand Model

UK SMR: Potential common systems Forecast capability and capacity for SMR in the UK*

*Initial assessment May 2015; NAMRC

Areas for Manufacturing Development

• UK Suppliers must: • Be capable to deliver – demonstrate knowledge, experience

and skill • Have the capacity to deliver – qualified processes and

technologies, and factory with kit • Be competitive in a market with experienced global players

• UK Manufacture has to be on time, to specification, at price

• Project programmes have to be de-risked and a UK supply chain

cannot mean additional risk

• Significant opportunity for cost reduction, quality improvements and schedule de-risking from manufacturing in a controlled factory environment

Typical Innovative manufacturing required for SMR: big machining

120te Vertical Turning Lathe and Horizontal Boring machine • Multi axis capability • Complex machining of large components • High degrees of accuracy

Innovative manufacturing: Joining technologies

Electron Beam Welding

• Section thickness up to 250mm

• Clean, low heat, single pass, no filler, controlled environment…..

• Speed and integrity of weld

Innovative manufacturing: Diode Laser Cladding

• High deposition rates

• Speed

• Laser smoothing to negate post clad machining

Innovative manufacturing: HIPping

• Near net shape

• Homogeneous microstructure

• Isotropic qualities

• 100% dense

Innovative manufacturing: Virtual Reality

Factory Layout and Design for Manufacture - NAMRC

Virtual Engine - JLR

Summary

• We could manufacture an SMR in the UK • We have the capability and could create the capacity • It will require some investment through supply chain • Timing is a key issue

• Relationship with potential new-build schemes

• UK has significant infrastructure for innovation in advanced manufacturing • There is game-changing technology • We will need targeted investment for SMR

• An SMR technology will have to be funded, licensed and sited for the UK – huge

challenges

• HMG are contributing to early R+D for SMR and running a competition to work out a potential way forward, which may include more significant HMG funding for SMR

• Market analysis indicates a substantial global opportunity for SMR – we will have to

deliver locally

web: namrc.co.uk

email: enquiries@namrc.co.uk

Tel: 0114 222 9900

Twitter:@NuclearAMRC