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AMEC Clean Energy;A natural partner for

your low carbon future

Planning for new nuclear build‘The first three years are critical’

Ash TownesBusiness Unit Director – New Nuclear BuildNuclear Generation and DefenceAMEC Clean Energy - Europe

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AMEC at a Glance FTSE 100 company Market cap c.£3.4 billion

Revenues Some £4.2 billion

Employees ~30 000

Working in Around 40 countries

*As at 14 August 2012

AMEC is one of the world’s leading engineering, project management and consultancy companies

We design, deliver & maintain strategic assets for our customers, offering services which extend from environmental and front-end engineering design before the start of a project to decommissioning at the end of an asset’s life

Clean EnergyNuclear

Renewables/Bioprocess

Power

Transmission & Distribution

Mining Environment & InfrastructureWater/Municipal

Transportation/Infrastructure

Government Services

Industrial/Commercial

Oil & GasConventional and unconventional

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AMEC Nuclear Pedigree. . . . 3000 nuclear professionals . . . .

. . . . a Nuclear New Build partner for 60yrs . . . .

1955

1990

1980

1970

1960

2000

2010EDF Partnership

Sizewell B

NSS/NCL Canada

AMEC Romania & Czech Republic

NCI South Africa

AMEC Slovakia

Growth in Clean-Up

NMP Sellafield

AGR Station Design & Construction

Magnox Station Design & Construction Including Tokai 1

Sizewell B PWR

Heysham 1 AGR

Dungeness A - Magnox

Sellafield

Bruce CANDA

Tokai 1

. . a strategic role on every NPS ever built in the UK . .

. . 19 of the last 20 reactors licensed in the US.

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NNB organisational spectrumMulti-package

Owner-operator

Internalised D&B

Island model

Smaller number of EPC-type Contracts

Turnkey

Single EPC Contract

Turnkey +

Operate and/or own

Transfer of ‘Risk’ to EPC support orgn.

Whatever the approach, the client and the extended supply chain need to be truly intelligent customers and intelligent deliverers across critical core nuclear skill-sets

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UK Context (1 of 3)

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UK Central Electricity Generating Board (CEGB)

Owner’s Construction Unit

(Includes Project Board)

Procurement&

ProjectManagement

Major Nuclear

Euip.

NSSS &AuxiliarySystems

Owner / Operator

AE Level

1

AE Level

2/3

AMEC*Safety & ReferenceDesign/Licenses

Civils Design Turbines Radwaste Main Civils

* By National Nuclear Corporation (NNC) subsequently acquired by AMEC

AMEC* / Westinghouse JV

SGs:BabcockVessel Head:FramatomeRCS/RCP & Reactor Systems:Westinghouse

Nuclear Design Associates McAlpine TWC

GEC Alstom Davy McKee J Laing

Sizewell B NPS (1995)Delivery organisation based on a small number of main EP / EPC Contracts

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UK Context (2 of 3)EDF Genco

Part of EDF Energy

EDF DIN (France)

Major Nuclear

Euip.NSSS

Owner / Operator

AE

Suppliers

Sofinel EDF/AMEC AREVA

Manufacture AREVA

Hinkley C NPS (Ongoing)Delivery organisation based on multiple E, P and C Contracts

EDF SA

TurbinesMain Civils

NSSS Design

Site prepn:Kier/BAMMain Civils:Bouyges TP / Laing O’RourkeMarine works:Costain

Site Licensee, project manager, Intelligent Customer, Site Prep/Off site Engineering

Responsible Designer, Level 1 Engineering

BNI Level 2 Engineering

BOP Level 2 Engineering

Manufacture Alstom

Technical surveillance

Commercial

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UK Context (3 of 3)

Horizon Nuclear Power

HGNE

Owner / Operator

FEED

EPC

Established Design s/c

UK Context Support

Wylfa and Oldbury NPS (Ongoing)Delivery organisation based on Turnkey EPC

Site Licensee, project manager, Intelligent Customer, Site Prep/Off site Engineering

Responsible Designer, Level 1/2 EngineeringGDA Requesting PartyLevel 1/2

EngineeringLevel 1/2 Engineering

Technical surveillance

Commercial

GE

80.01% 19.99%

100% Hitachi

EPC Option 1

EPC Option 2

EPC Option 3

HGNE / EPC Partner JV

HGNE

NSSSEPC

HGNE + EPCm

Partner

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Open Questions. . . . in determining operating model and support requirements:

How much knowledge must the owner have and how much can the plant designer be relied on?

What information does the public need and when?

How much work can be done locally?

What is the best contracting and finance model?

Does “best” mean most certain...

...or lowest construction cost...

...or lowest through-life cost...

...or minimum ‘initial’ client equity?

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Supporting the NNB project through 3 core skill-sets

Engineering & Safety Case

Nuclear and non-nuclear engineering, technical and subject

matter experts

Programme Management

Office

Project / Procurement/ Construction

Management & Controls

Licensing & Regulatory Support

Project feasibility, risk reduction, integrated support: pre-licence, licensing, permits &,

Regulatory relationships

IAEA Status Assessment• Nuclear Safety• Management• Human Resource Development• Stakeholder involvement• Site & supporting facilities• Security & physical protection• Safeguards

• Environmental protection

• Nuclear fuel cycle• Radioactive waste

• Electrical grid• Emergency planning• Industrial

involvement• Procurement

• National position• Funding and financing• Legislative framework• Regulatory framework• Radiation protection

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. . . through the whole project lifecycle

Engineering & Safety Case

Nuclear and non-nuclear engineering,

technical and subject matter

experts

Programme Management

Office

Project / Procurement/ Construction

Management & Controls

Licensing & Regulatory Support

Project feasibility, risk reduction, integrated support: pre-licence, licensing, permits &,

Regulatory relationships

Flexibility to service each step of the project lifecycle

1 2 3IAEA Milestone 1:Ready to make a knowledgeable commitment to a nuclear programme

IAEA Milestone 2:Ready to invite bids for the first nuclear power plant

IAEA Milestone 3:Ready to commission and operate the first nuclear power plant

IAEA NG-T-3.10 Intelligent Customer

Specify the scope and standard of a product / service

Assess whether the supplied product / service meets the requirements.

The product / service includes Nuclear Power Plant Fuel and fuel cycle Waste management Decommissioning provisions Independent technical support and services Through-life support from the original supply

chain Operation and Maintenance arrangements Grid Connection Associated Development Security arrangements Environmental studies and analysis

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3 core skill-sets through lifecycle Flexibility to service each step of the project lifecycle

EPC / implementation resources

NNB support resources

Thin IC

Thick IC

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Summary• NNB projects internationally have many different configurations of client, suppliers and

(therefore) differing support requirements

• All NNB stakeholders must have a basic capability and capacity across the three critical core skill-sets

• NNB Support service organisations must be adaptable; to project procurement strategy, phases of the project, client thick/thin ‘IC’ role

• IC role needs support to varying degrees during the transients in the project lifecycle; interface management is a critical focus area

• Flexibility is needed within the NNB support service provider and the commercial arrangements to optimise delivery of the service

• Its important that local suppliers are embedded into the NNB support infrastructure; lasting legacy in operations

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