Phillip Finck Chief Nuclear Research Officer November 29, 2011

Trends and Accomplishments in the US Department of Energy Nuclear R&D Program

The Present – Nuclear Energy in the U.S.

Excellent record of safety and

production

All plants expected to be operable for at

least 60 years and possibly to 80 years

20 license applications for 31 new

reactors are expected

Construction depends on financing

– Loan guarantees

• Award $8B for first 2 Southern Company

Plants

• Increase authority to $50B

– Regulated markets

Focus on near-term deployment

of advanced ALWRs, extending

the life of existing reactors and

on R&D for advanced reactor

and fuel cycle technologies

104 reactors supply 20% of electricity,

operating in 31 states

70% of emissions-free electricity is nuclear,

displacing the equivalent of annual CO2

from U.S. cars

1/10 of light bulbs in U.S. are powered from

HEU down-blended from Russian warheads

Nuclear energy is safe because of

redundant systems, automatic shutdown

systems and multiple layers of separation

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A Decade of Uncertainty in Energy Markets, Investment, and Policies Consumption and investment have

been impacted by the economic

recession

Falling investment could lead to a

future spike in energy prices after the

economy recovers

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World Energy Outlook, 2009

Outlook for nuclear and renewables is mixed – Stimulus efforts are offsetting some of the decline, particularly wind

– Borrowing is difficult

– Cost of capital is higher

Future outlook depends on continuity of policies

Adjustments will be needed to increase accident tolerance

US Administration is seeking new options for nuclear waste

– Yucca Mountain reality

– Modern strategy based on extended storage and new technologies, followed eventually by a closed fuel cycle

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Technology EIA 2008 Reference Target

Efficiency Load Growth ~ +1.05%/yr Load Growth ~ +0.75%/yr

Renewables 55 GWe by 2030 100 GWe by 2030

Nuclear Generation 15 GWe by 2030 64 GWe by 2030

Advanced Coal Generation

No Heat Rate Improvement for Existing Plants

40% New Plant Efficiency by 2020–2030

1-3% Heat Rate Improvement for 130 GWe Existing Plants

46% New Plant Efficiency by 2020; 49% in 2030

CCS None Widely Deployed After 2020

PHEV None 10% of New Light-Duty Vehicle Sales by

2017; 33% by 2030

DER < 0.1% of Base Load in 2030 5% of Base Load in 2030

Achieving all targets is very aggressive, but potentially feasible.

2030 Projected Annual CO2 Emissions (2008)

(due to economic and population growth)

CO2 Annual Emissions (2008)

Source: EIA Annual Energy Outlook, graph courtesy of Electric Power Research Institute

All Options Must Be on the Table – More Renewables, More Nuclear, and More Efficiency

Nuclear Energy R&D Roadmap

Nuclear Energy R&D Objectives

1. Develop technologies and other solutions that

can improve the reliability, sustain the safety,

and extend the life of current reactors

2. Develop improvements in the affordability of

new reactors to enable nuclear energy to help

meet the Administration's energy security and

climate change goals

3. Develop sustainable nuclear fuel cycles

4. Understand and minimize the risks of nuclear

proliferation and terrorism

The Roadmap’s objectives were developed to focus resources on clean energy, economic prosperity, and national security

The Roadmap outlines an integrated approach to meeting the NE objectives

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Nuclear Energy Research Objectives

Extend life, improve performance, and sustain health and safety of the current fleet

Enable new builds for electricity and process heat production and improve the affordability of nuclear energy

Enable sustainable fuel cycles

Understand and minimize proliferation risks

An implementation plan has been developed for each objective 6

LWR Sustainability Vision, Goals, and Accomplishments

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Vision Enable existing nuclear power plants to safely

provide clean and affordable electricity beyond current license periods (beyond 60 years)

Program Goals Develop fundamental scientific basis to allow

continued long-term operation of existing LWRs

Develop technical and operational improvements that contribute to long-term economic viability of existing nuclear power plants

Program Elements and Recent Accomplishments

■ Instrumentation and Control: Initiated pilot projects to identify issues with extending operating licenses beyond 60 years and to demonstrate operational use of advanced electronic systems

■ Fuel Development: Development of silicon carbide cladding, carbon metal composite liners, and ceramic end plugs shows potential for increasing LWR fuel accident tolerance

■ Materials Development: Extensive analysis of materials harvested during Zion 1 & 2 decommissioning is shedding light on material degradation caused by long term plant operation

■ Risk Informed Safety Margin Characterization: Continuing development of the next generation system code for nuclear reactor safety simulation (R7)

HTGR and Process Heat Goals and Accomplishments

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Program Goals

Offset conventional fossil fuels by providing electricity for electric powered

vehicles

Generate high temperature process heat and electricity for the production of

valuable chemical feedstocks

Produce hydrogen for industrial processes and vehicles

Provide clean water by desalination

Dramatically reduce greenhouse

gas emissions

Recent Accomplishments

Completed most successful U.S. irradiation of TRISO-

coated particle fuel

Established capability to fabricate and characterize

TRISO-coated particle fuel in the U.S. after a 10-15

year hiatus

Fuel Cycle Technology Development Goals, Challenges, and Accomplishments

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Goals ■ In the near term, define and analyze fuel cycle technologies to develop options that increase the

sustainability of nuclear energy

■ In the medium term, select the preferred fuel cycle option(s) for further development

■ By 2040, be prepared to demonstrate the selected fuel cycle options at engineering scale

Challenges ■ Increased program focus on fuel storage and disposal

■ Develop high burnup fuel and structural materials that are able to withstand irradiation for longer periods of time

■ Develop simplified separations, waste management, and proliferation risk reduction methods

■ Develop optimized systems that maximize energy production while minimizing waste

Recent Accomplishments ■ Definition of a scientific strategy for extended storage

■ Excellent progress in fabrication and irradiation of transmutation fuel

■ Implementing accident tolerant fuel development program

■ Executing a major electrochemical separation demonstration with

international partners

■ Science based approach for separations technologies

■ Modeling and simulation of fuels

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■ Use international collaborations to expand R&D investments

– Continuation of multi-lateral Generation-IV R&D Projects

– Investment in strategic bilateral or trilateral partnerships

■ Stimulate ideas for transformational reactor concepts

Advanced Reactor Concepts

Mission:

Develop and refine future reactor concepts that

could dramatically improve nuclear energy

performance (sustainability, economics, safety,

proliferation resistance)

Vision

■ Develop innovative technology features that

help achieve enhanced performance

– For example, the program supports development of

advanced Generation IV systems

■ Tackle key R&D needs for promising concepts

– Fast reactors capable of burning minor actinides for fuel

cycle missions

– Fluoride salt cooled thermal reactor for high-

temperature missions

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Small Modular Reactors Financing: Smaller per unit cost – don’t have to bet the

company

– Could use initial unit(s) to finance future additions

Safety: Enhanced passive safety

– For example, natural circulation cooling reduces threats from

loss of site power

Potentially simplified licensing process

– Possibly smaller emergency planning zone

– DOE Office of Nuclear Energy has proposed a

program that would accelerate licensing of SMRs

Possibility of DOE and/or DOD siting of first units

R&D Focus Areas: – SMR Instrumentation, Controls & Human Machine Interface

– SMR Assessment Methods

– SMR Materials and Fabrication Technologies

– SMR Regulatory Technology Support

– SMR Advanced Concept Evaluation

Nuclear Energy Advanced Modeling and Simulation (NEAMS)

NEAMS will rapidly create and deploy next generation modeling and

simulation capabilities – Development of new tools will be needed to support design, implementation, and

operation of future nuclear energy systems

Modeling and simulation can potentially accelerate technology

development, improve fidelity of research findings, and facilitate

design certification – Validation of models and completeness of assessments are critical

– Modeling and Simulation may not be appropriate for all issues and questions -

experiments, demonstrations, and prototypes may be required in some instances

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Example: AMP and Moose-Bison-Marmot

(MBM)

– AMP: Focused on engineering scale simulations of fuel assemblies

– MBM: Focused on atomistically-informed meso-scale simulations of microstructure evolution and engineering scale simulations of pellets/pin

A U.S. team focused on U.S. leadership in nuclear energy – Carefully picked to leverage and pair partner strengths

– A distinguished record of LWR regulatory and design

accomplishments

Industry partners are embedded to assure relevance and

focus – Representing the entire U.S. nuclear industry landscape:

Vendors, owner-operators, R&D for nuclear utilities

Executing a clear, milestone-driven technical strategy for real-world NPP solutions

Consortium for Advanced Simulation of Light Water Reactors (CASL)

Implementing a new paradigm: University-industry-lab leadership balance

Recent Accomplishments:

– CASL “One-Roof Facility” is operational

• Includes state-of-the-art virtual collaboration and data analysis venues

– TVA Plant model development is underway

– Development of 3D multi-physics fuel performance simulation capability to assess Pellet Clad Interaction (PCI)

– Development of grid to rod fretting (GTRF) analysis capabilities

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Summary

Current outlook for new nuclear

investments is mixed in the US

Support for nuclear R&D remains

strong – The Nuclear R&D Roadmap has established

an integrated vision for future R&D

investments

The US Department of Energy

continues funding research tied to: – LWR sustainability

– Fuel cycle technologies

– Advanced reactor development

The US is actively seeking options for

nuclear waste management

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• U.S. and China are the largest consumers of energy and producers of carbon dioxide

• China operates 11 nuclear power plants, representing 2 percent of electricity supply, and 14 units under construction, and 10 planned to start construction this year.

• The U.S. has 104 operating plants, 1 under construction (TVA Watts Bar 2), 17 applications for 26 new plants filed with NRC

• China technology provided initially by France and Russia; US developed original PWR technology that was exported to France and around the world

Sanmen 1, 1100 AP1000 PWR, under construction, China

Diablo Canyon, 2 Westinghouse PWRs operating, U.S.

China and U.S. share similar patterns of demand, supply growth, and sustainability

• Rapid growth, reliance on coal for electricity and heat, need and pursuing everything

• Both countries heavily reliant on oil, and this will not change; both seek to green coal

• China slow to start its civil nuclear program but with ambitious plans — 70 GWe operating by 2020 and 30 more GW in construction

• US grew its civil nuclear program in a short burst , slowed in 1979, and today, a resurgence/ US developed the PWR technology that is in use in most of the world today

• Nuclear cooperation agreement agreement approved by Congress in 1998, 13 years after proposed