Title: U.S. Nuclear Industry Life in the Fast Lane
1U.S. Nuclear IndustryLife in the Fast Lane
- Thomas A. Christopher
- President and CEO AREVA NP Inc.
- CEO and Vice-Chairman AREVA Inc
2The Energy Highway
- U. S. is facing dramatic challenges in energy
supply - Volatile fuel costs
- Coal prices increased 57 in two years
- Demand for natural gas expected to double in
three years - Rising electricity prices
- Electricity demand 3.3 last year higher than
forecast - Rate shocks in 10 states this year
- Seven regions need to build new generation
- Texas experienced a brownout this past summer
- Increasing environmental obligations
- Personnel resource shortages
Energy Will Be a Key Issue in the 2008 Political
Campaign
3Current U.S. Plant Capacity and Age
100 - 499 500 - 999 1000
Natural Gas 18 10 12
Coal 40 29 29
Nuclear 31 21
Average Age of Plants (years)
New gas, Old Coal and Nuclear
4Combined Cycle Power Plant
500 600 MW Class CC Air Emissions
Pollutant Potential to Emit (tons per year)
Nitrogen Oxide (NOx) 219
Carbon Monoxide (CO) 108
Volatile Organic Compound (VOC) 30
Particulate (as PM 10) 117
Sulfur Dioxide (SO2) 22
Formaldehyde 1
Benzene 0.2
H2SO4 Mist 6
Ammonia 212
Source Duke
5Coal Production Cost Example
TVAs Cumberland Plant is One of Their Largest
Baseload Plants
- 2 coal-fired units _at_ 1300MWs each
- Both on line in 1973
- Burns pulverized 9 bituminous coal (3 sulfur
10 ash)
Sulfur Dioxide
Nitrogen oxide
6US Spot Fuel Prices Continue to Experience
Volatility
7Market Drivers Fuel PricesMarket Faces High and
Volatile Natural Gas Prices
Hurricanes
8Value of a Nuclear Power Plant
Estimated 2015 Curve
2015
2010
2007
Peak Load Price Value of
Nuclear
Source Global Energy Decisions
9PJM Daily Loads and Locational Marginal Pricing
(LMP)
Aug. 2, 2006
Aug. 1, 2006
Aug. 3, 2006
Aug. 5, 2006
Aug. 7, 2006
Aug. 4, 2006
Aug. 6, 2006
Aug. 8, 2006
10Double-digit Residential Electricity Rate
Increases
From 10 - 72 in 10 states
25 -35 increase 1/06
10 increase 3/1/06
22 increase 1/06
If auction adopted, increase could be 35
13 increase 1/06
Regulators requested 20 increase
Phased increases 15 - 5/06, 25 - 1/07 19 - 6/07
Increases range from 35 to 72
Rate Caps Disappearing
19 for FPL, 12 others
12 IN 6/06
11North American Operating Nuclear Sites
Original Equipment Manaufacturers BW
7 W 48 CE 14 GE 34
A Small Part of the US Market is Deregulated
12AREVA Services All Aspects of an Operating
Nuclear Plant
13AREVA NP Inc.
North American Locations June 2007
- Richland, WA
- 571 People
- Fuels
- Federal
- Naperville, IL
- 19 People
- NE-A
- IC
- Marlborough, MA
- 113 People
- NE-A
- NE-R
- Denver, CO (shared AREVA)
- 6 People
- NS
- Toronto, Canada
- 60 People
- AREVA NP Canada Ltd.
- Pittsburgh, PA
- 20 People
- IC/ES
- Westborough, MA
- 12 People
- E-Lab
- NE-A
- Idaho Falls, ID (Shared AREVA)
- 1 Person
- Federal
- Philadelphia, PA
- (shared AREVA)
- 10 People
- IC/E S
- Federal
- Benicia, CA
- 44 People
- NE-A
- NS
- New Plants
- Lynchburg, VA (4)
- 1,842 People
- All
- Albuquerque, NM (shared AREVA)
- 5 People
- Federal
- Charlotte, NC
- 561 People
- All
- Fort Worth, TX
- 59 People
- IC/ES
- NE
- Aiken, SC shared AREVA
- 1 Person
- Federal
- Atlanta, GA
- 45 People
- IC/ES
20 Locations 3,378 Employees/Contractors
14Historical US Nuclear Plant Construction Costs
Were Out of Control Due to Regulatory Changes and
Escalating Costs
Vogtle
Perry
Beaver Valley 2
Hope Creek
Braidwood
Diablo Canyon
Wolf Creek
March 1979 TMI Accident
Catawba
Palo Verde 1
LaSalle 1
Oconee
Quad Cities
McGuire 1 2
Dresden
15In 1989, a New Licensing Process Introduced by
the NRC
- Goal simplify the two-step process
- The Nuclear Regulatory Commission (NRC),
following numerous hearings and input from
utilities, drafted new rules for licensing - Congress amended the Atomic Energy Act to confirm
the NRCs authority to issue statutory combined
licenses
Old Process 10 CFR Part 50
New Process 10 CFR Part 52
16New Build Scope Yesterday and Today
1970s - 1980s Typical Scope
Total Plant Contract
NSSS, Equip. RV, SG, RCP
I C , NSSS
Nuclear system design licensing
Fuel handling equipment
2010 2020 Typical Scope
Total Plant
Reactor containment equipment design supply
Emergency diesel generator building design
supply
Nuclear auxiliary building equipment design
supply
Safeguards buildings equipment supply design
AREVA Scope Will Be 50 of Total Plant Contract
17A Number of Utilities Are Moving to Create a New
Nuclear Option
40-Year License To Build
COL Issued
2010-11
COL Hearings
COL Submit NRC Review
COL Prep
Site Selection
2010
2012
2006
2007
2008
2009
2011
AP1000 Duke Progress SCEG TVA Southern
ESBWR Entergy Dominion
ABWR NRG Dominion
US EPR CEG 1 CEG 2 CEG 3 Ameren
18New Business Model Emerges to Respond to
Capacity Demand - as UniStar
Standard Plant EPR Offering CEG Part Owner /
Operator
CEG
AREVA
PO EPR (AREVA)
CONTRACT 1
Owners CEG / Utility 1
BECHTEL
PO BECHTEL
PO CEG Operator
STG Vendor
Marketing Activity 2005-2006
PO EPR (AREVA)
CONTRACT 2
Owners CEG / Utility 2
PO BECHTEL
STG Vendor
PO EPR (AREVA)
CONTRACT 3
Owner CEG
Power Purchase Agreement (Utility 3)
PO BECHTEL
STG Vendor
PO EPR (AREVA)
CONTRACT 4
Power Purchase Agreement (Utility 3)
Owner CEG
PO BECHTEL
STG Vendor
19AREVAs Third Generation US EPR is Designed to
Meet Todays Needs
20Four Train Concept
Each Safety Train is Independent and Located
Within a Physically Separate Building.
21Four-Train Concept
- On-line maintenance without entering action
statements - Radial arrangement simplifies layout and reduces
piping - Active cross-connects eliminated
- Simplifies systems
- Minimizes components
- Reduces operator burden in case of accident
- Reduced component sizes
- Separate safeguards buildings
- Physical separation
- Improved hazards mitigation
- fire, flood, external events
5 More Pumps 8 Less HX 8 Less Tanks 724 Less
Valves
SYSTEM EPR EPR EPR EPR Westinghouse 4-Loop Westinghouse 4-Loop Westinghouse 4-Loop Westinghouse 4-Loop
SYSTEM Pump HX Tank Valve Pump HX Tank Valve
SI / RHR 8 4 4 335 4 6 5 351
CVCS incl. Boration, Demin/Seal Water 11 6 8 397 11 13 14 751
CCW 8 14 6 404 7 13 7 758
Total 27 24 18 1136 22 32 26 1860
22OL3 EPR Under Construction
23Progress at Flamanville
24Calvert Cliffs 3 Schedule
25Estimated 2006 Production Costs
New Build Will Cost Less to Operate Than Existing
Plants
26AREVA Will Continue to Need New Employees
Current openings end of Feb. 007 307
Total Full -Time Hires
Total 2006 2007 Goals
Internal Hires 225 200
External Hires 337 325
Total Hires 562 525
New Hires Needed by 2010 1000
27Types of Engineers Supporting EPR Projects
- gt Mechanical fluids, heat transfer,
- FEM
- gt Civil soil interaction,
- earthquakes
- gt Structural linear and non-linear
- analyses
- gt Electrical design, diesel
- generators, one-lines
- gt Electronics digital
- instrumentation and control
- gt Nuclear neutronics,
- thermal/hydraulics
- gt Fire nuclear fire safety
- gt Materials fatigue, stress, FEM
- gt Construction (just starting)
Olkiluoto 3 RV head manufacturing
28The Next Generation of Leaders
- Key skills
- Problem solving and decision making
- Short-term crisis management
- Long-term construction management
- Working with teams (domestic and international)
- JV, LLC, etc.
- Learning from mistakes
- Broadened knowledge base
- New NSSS vendor responsibilities 50 of entire
plan - Civil
- Structural
- Etc.
- Ability to adapt to rapid innovation and
technology - New ideas
- Technology
29In Summary - Its an Exciting and Challenging
Time
- This is a critical time in the energy generation
industry demand supports the Nuclear
Renaissance - We face greater economic and environmental
challenges than ever before - Nuclear is making a comeback
- Environmentally friendly
- Energy independence
- We have the new technologies but success depends
on - New approaches, innovation, enthusiasm and
dedication - A new generation of employees
Our Business Is Growing Fast Well be Here For
a Long Time
30AREVA