Micro-ModularNuclearAglobalopportunity

U-BatteryPlantLayout

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2 3

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RemoteLocations HeavyIndustry NuclearBackup

SpecificPurposes

GlobalApplications

InitialStrategicMarkets

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GlobalMarkets

ProjectedU-Batteryinstallationsbasedonrelativeattractivenessofcountrymarkets

2026 2038 4

CanadianMarketOpportunity

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ArecentCNLstudyfoundthatthepotentialmarketforoff-gridSMRsinCanadaconsistsofover600powerplants,withatotalpowerdemandof35GWe.Anotherimportantfindingwasthatmostofthesepowerplantsrequireaninstalledcapacityoflessthan5MWe.

Reference:“PotentialOff-GridMarketsforSMRSinCanada”;D.Wojtaszek,(www.doi.org/10.12943/CNR.2017/00007)

NORTHAMERICA

• Canada– 200+remotecommunities,plusheavyindustryandminesites• Federalcommitmenttosecurelow-carbonembeddedpower• “Hatch”studyrecommendedU-BatterytoFederalandOntarioGovernment• DemonstrationsiteofferedbyCanadianNuclearLaboratories• RegistrationforVDRwithCanadianNuclearSafetyCommission

EU

UK

• Poland– carbonintensiveheavyindustry• Seekinglong-termenergyindependence• U-BatteryidentifiedbyPolishauthoritiesaspotentialsolutionforindustry• LetterofIntenttoinvestigateearlydeployment• TaskForceforhigh-temperaturegasreactordevelopment

• Export-focusedtechnology,manufacturing&supplychainopportunity• HightechIP,advancedmanufacturingfacility&jobs• Decarboniseenergyintensiveindustry(power&heat)• Globalleadershipinanewglobalenergytechnologysector• UKvendor

Demand-LedInternationalGrowth

Asia • TechnicalcooperationofferedbyJAEAJapan• EarlyinterestinIndia

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June2016 CollaborationagreementwithPolishNationalCentreforNuclearResearch

November 2016 MasterTaskAgreementandMoUwithCanadianNuclearLaboratories

March2017 VendorDesignReviewstartedwith CanadianNuclearSafetyCommission

May2017

July2017

CollaborationagreementwithJapanAtomicEnergyAgency

Approval toincorporatebyURENCOBoard

Sept2017 MoU withBrucePower

DevelopmentMilestones

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ProductBreakdown,DetailedCostReview

Item Description Item

FOAK Item Unit Cost (£) FOAK Item Cost (£) Source (s) Confidence(High, Moderate, Low) Discussion

Quantity

Primary RPV

1 1,100,000.00 £ 1,100,000.00

GIF/EMWG/2007/004 COST ESTIMATING GUIDELINES FOR GENERATION IV NUCLEAR ENERGY SYSTEMS

Moderate

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Core Nuclear Graphite (single core load)

1 1,274,091.00 £ 1,274,091.00 Delft study (from SGL Carbon) Moderate

Weights calculated from engineering concept design. Supplier quotes sought – no feedback received. Cost of €65/kg from Delft study used to calculate overall cost.This figure denotes an entirely graphite core, and graphite reflectors, from the latest core and RPV design.

Core Structural Graphite (single core load) 1 incl' in above incl' in above

Control Rods

4 609,783.00 £ 2,439,132.00

GIF/EMWG/2007/004 COST ESTIMATING GUIDELINES FOR GENERATION IV NUCLEAR ENERGY SYSTEMS

Low

Scaling tool within “Cost Estimating Guidelines for Generation IV Nuclear Energy Systems” used to calculate CR/CRDM cost for four rods, compared to number required for LMFR.

Control Rod Drive Mechanism4 incl' in above incl' in above

Nuclear Fuel (single core load)

1 2,671,974.52 £ 2,671,975.00 Urenco Steve Threlfall quote Moderate

Overall fuel cost for one load calculated based upon assumptions of:1) U as U3O8 price of $40/lb.2) Conversion at $15/kgU.3) Enrichment at $100 per SWU.4) Fabrication at $7,000/kgU to compacts.$3,356,000.00 (£=$1.256 14.11.16)

Boron ball shutdown system

1 609,783.00 £ 609,783.00

Assumed to be equal in price to one-off Control Rod & Control Rod Drive Mechanism, as above.

Low

Cost for system assumed to be equal to that of one CR/CRDM.

Intermediate Heat Exchanger Vessel

1 2,400,000.00 £ 2,400,000.00

GIF/EMWG/2007/004 COST ESTIMATING GUIDELINES FOR GENERATION IV NUCLEAR ENERGY SYSTEMS

Moderate

Vessel size and weight calculated based upon engineering concept design, and initial sizing. Drawings available.Cost Figure provided by Cammell Laird. Corroborating figures from scaling tools.

Primary Gas Circulator1 3,000,000.00 £ 3,000,000.00 Howden expression of interest

letter 25/2 Moderate Quote from Howdens, based upon specifications determined using U-Battery Thermodynamic Cycle tool.

Secondary Recuperator2 1,102,722.00 £ 2,205,444.00

DOE/NETL-2002/1169, Process Equipment Cost Estimation Final Report, Jan 2002

LowU-Battery Thermodynamic Cycle tool used to determine thermal duty. Heat exchanger thermally sized using Heat Transfer Research Inc’s (HTRI) shell-and-tube exchanger sizing software, to derive surface area.The Department of Energy’s “Process Equipment Cost Estimation” report, January 2002 used then to derive unit cost, with RPI and exchange rate assessed. Pre-Cooler

1 237,654.00 £ 237,654.00 DOE/NETL-2002/1169, Process Equipment Cost Estimation Final Report, Jan 2002

Moderate

Inter-Cooler

1 166,095.00 £ 166,095.00 DOE/NETL-2002/1169, Process Equipment Cost Estimation Final Report, Jan 2002

Moderate

Power Generation Turbine1 2,000,000.00 £ 2,000,000.00 Siemens meeting, February

2016 Moderate Specifications determined using U-Battery Thermodynamic Cycle tool, and provided to Siemens during supplier meeting, who provided a total procurement cost of £2m. Alternative quotes of £4m and £8m are available for turbines of a slightly larger size, which provide corroboration for this figure.

Compressor 1 1 Inc. in aboveCompressor 2 1 Inc. in aboveCompressor 3 1 Inc. in above

Alternator 1 Inc. in aboveStart-Up Motor 1 Inc. in abovePower Electronics 1 Inc. in above

RegulatoryFees5%

DesignandEngineering

30%

Procurement37%

CivilConstruction7%

SiteInstallation10%

SystemCommissioning

3%

PlantCommissioning

5%

OperatorTraining&Certification

2%Closeout

1%

Elemental Breakdown of Design & Construction Costs

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U-BatteryTechnologyBenchmark

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Source:BEISReport- ElectricityGenerationCosts- Nov2016(https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/566567/BEIS_Electricity_Generation_Cost_Report.pdf)

UKInnovation,GlobalPotentialINNOVATIVETECHNOLOGY

• Micro-modularnuclearreactor– localoff-gridpowerandheat

• DistinctfromSmallModularReactors– smallersizeanddifferentenduserneeds

• Targetedatglobalmarkets– energyintensiveindustriesandremotecommunities

• Simple,low-riskdesign– proventechnologyandinherentlysafedesignbasedonTRISOfuel

• Competitivecost– costofdevelopmentandlevelisedcostofdeliveredenergy

• Realmarketdemand–marketpullinstrategicmarkets

• BuildsongenericcommitmentsBEISismaking– modularmanufacture,materials-testingandadvancedmanufacturing,thermalhydraulics,advancedfuels.

OPPORTUNITY

• IPdevelopment,supplychain,advancedmanufacturingandfuelsupply- ledbyUKcompanies

• Highvalueexportproductforstrategicglobalmarkets

• InternationalCollaboration– Nuclearandmanufacturingtechnology,COP21,MissionInnovation

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LowCostLowRiskDelivering