New Jersey Clean Air Council

New Jersey Clean Air Council Public Hearing April 1, 2009 Jeff Halfinger Babcock & Wilcox

Proprietary and Confidential

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A Shifting Landscape • Increasing construction cost and schedule Skilled field craft labor NSSS component supply chain

• Tightening capital markets

Government loan-guarantees Capital cost and funding access

• Changing geo-political environment Carbon-constrained regulatory framework Fossil-fueled power generation costs Energy independence and security

Proprietary and Confidential

2

Modular reactors are NOT:

Modular Reactors are NOT:

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The Drivers Behind a Modular Reactor NSSS supply chain

Improved Constructio n Schedule

Project Financing

1000

12 5

Cost Efficiency

Design & Licensin g Risk

Base Load Impact

10 MWe

Real-world issues are shaping the optimal size.

Proprietary and Confidential

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Solution: B&W’s mPower Reactor Modular Approach TM

• Flexible and scalable to customer requirements  Integrated

reactor modules  100 percent shop manufactured

 Multi-unit

(1-10+) plant  Rail-shippable

• Reduced licensing risk, construction cost, & schedule  Evolved

PWR-type concepts  No on-site NSSS construction

 Passive

safety  Three years to start-up

• Integrated and simplified NSSS with fewer components  Internal

helical coil SG  No external pressurizer

 No

need for safety-grade backup power  Conventional core and standard fuel

• Simplified operations and maintenance  Four

plus-year core design  Standardized BOP

 Sequential

partial-plant outages

Lower risk and cost solution… Proprietary and Confidential

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B&W’s mPower Reactor Steam Outlet

Steam Generator

Internal CRDM

Feedwater Inlet Reactor Primary Circulation Circulators

• 125 Mwe integral reactor • Internal steam generator • Standard PWR fuel • Large primary coolant inventory • SA508 RPV with SS clad • Small penetrations into Primary Coolant System at TOP of RPV

Nuclear Core

• Diverse, redundant internal CRDMs

• No boron in primary coolant Proprietary and Confidential

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B&W’s mPower Reactor Features Decay heat removal heat sink

• Underground containment • Used fuel stored in spent fuel pool for life

Module

• Natural circulation decay heat removal system for emergency/refueling cooling

Spent fuel pool

• Primary coolant treatment

system within containment

Pressure Suppression

• Steam generator inspection within containment

Independent, self contained modules

Proprietary and Confidential

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The B&W mPower Plant Design Features • Prefabricated components, Streamlined construction NSSS Steam turbine Control room containment

• Limited Module Interaction Independent controls “Local” responses minimizes interaction

• Underground reactor building, Enhanced safety Missile penetrations Seismic advantages Non-proliferation support

• Reliable

Sequential outages

• Minimize options, Cost effective Condenser cooling (air or water) Seismic design (2 zones?) Number of modules Proprietary and Confidential

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500 MWe Plant Using 125 MWe Modules

• Compact footprint • Self-contained • Location flexibility

1550 Ft

1900 Ft

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Adaptability to Government Installations

•Small compact standardized design •Passively safe •Scalable •Long refueling cycle

5+ years at <5% enriched U235 ~10 years at <10% enriched U235 •Built in the USA Heavy forgings from Lehigh Heavy Forge Component fabrication at B&W’s Mt. Vernon, Indiana facility Fuel fabrication at B&W’s Lynchburg, VA facility Modular construction techniques Transportable size

Adaptability to Government Installations

•Potential for Co-Generation Steam Desalination Electrolysis for hydrogen and oxygen production

• Fischer-Tropsch?

•Sell Excess Electricity to Secondary Market

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Public-Private Partnerships

•To be Successful Program Must: Select appropriate sites for reactor deployments •Critical missions •Strategic offensive and defensive capabilities •High energy costs and usage

−Production tax credits and loan guarantees could make nuclear power more competitive at more sites

Develop a long-term land lease agreement (EUL?) •Win-Win arrangement for Air Force and commercial developer Develop a long-term power purchase agreement •Mechanism for third-party financing •Minimizes market risks for initial units .13

B&W Supply Chain of Proven Technology • Domestic Forgings or Rolled Plate • Component fabrication  B&W’s Mt. Vernon, Indiana facility

• Fuel fabrication

 B&W’s Lynchburg, VA facility

• Control rod drive fabrication  B&W’s Euclid facility

Mt. Vernon, IN Lynchburg, VA

• Modular construction capabilities  McDermott’s Morgan City

Vertical Integration within B&W Mt. Vernon, IN Proprietary and Confidential

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First Plant Deployment Concept Definition Define Functional Requirements

NRC review paces project implementation

Preliminary Design

Latest submittal Prepare DCD NRC Review

Final Design

Prepare COL Application NRC Review Long-Lead Procurement Construction ITAAC

2008 Proprietary and Confidential

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018 15

B&W mPower Benefits • Sized to customer requirements • Competitive cost • Reduced risk – minimum site work and supply chain • Shorter schedule – three-year construction • Proven approach – evolved PWR technology • Optimized O&M – four plus-year refuel cycle with partial outages • Improved safety, safeguards, and security

Proprietary and Confidential

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