.1 2011 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved 2011 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved

Introduction to B&W mPower ProgramIAEA Interregional Workshop

Vienna, Austria

July 7, 2011

Doug LeeBabcock & Wilcox Company

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Outline

Introduction

Plant layout

Integral reactor design

Safety concept

Systems

Development testing

Implications from Fukushima

Lead plant deployment

Conclusion

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Alliance between B&W and Bechtel

Risk sharing with 90/10 current ownership

300+ FTE development team

Technology and project execution

Turnkey projects = cost/schedule certainty

Broad industry engagement

Investment from 15 member Consortium

26 member Industry Advisory Council

Goal is to deploy lead plant by 2020

Industry side of public-private partnership

Platform for industry cost/risk sharing

Nebraska Electric G&T Cooperative

Hoosier Energy Rural Electric Cooperative, Inc.

Generation mPower Industry Consortium

Industry Partners

Industry Advisory CouncilIncludes Consortium members above plus:

AEPDayton Power & LightDuke EnergyExelonNPPDVattenfall

Bruce PowerDominionEntergyMidAmericanProgress Energy

www.generationmpower.com

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The Babcock & Wilcox Companyis a leader in clean energy technology and services

for the nuclear and fossil power markets

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2010: $2.7B revenue and $5.2B backlog

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Bechtel Power

Over 70 years in the power business

Over 60 years in nuclear power

Over 200,000 MW of completed projects

Nuclear: 74,000 MW

Fossil: 118,000 MW/445 units

Hydro: 26,000 MW/155 units

20012006: 30,200 MW online in 14 countries

20 years of gasification/IGCC experience

28 CT cogen plants, 5,200 MW; 12 solid fuel cogens

Integrated power/desalination; waste-to-energy

Over 15,000 MW of active, new generation power projects

25,000 employees with nuclear experience

2011 Bechtel Power Corporation. All rights reserved.

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Integrated Supply Chain

Multiple sources for forgings and plate

Component fabrication

Mt. Vernon, Indiana

Barberton, Ohio

Cambridge, Ontario, Canada

Fuel fabrication

Lynchburg, Virginia

Control rod drive fabrication

Euclid, Ohio

Critical NSSS Components manufactured in existing B&W facilities

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Goal and Value Proposition

Develop and deploy, by 2020, an SMR that offers:

Lower Capital Cost

Schedule & Cost Certainty

Competitive LCOE Pricing

Within the constraints of:

Proven: GEN III+, established NRC regulation

Safe: Robust margins, passive safety

Practical: Standard fuel, construction and O&M

Benign: Underground, small footprint

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High-Level Requirements 125 MWe Nominal Output per Module and 60-Year Plant Life

NSSS Forging Diameter Allows Readily Available Forgings and Unrestricted Rail Shipment

Passive Safety Requirements Emergency (Diesel) Power Not Required

Minimize Primary Coolant Penetrations, Maximize Elevation of Penetrations Large Reactor Coolant Inventory Low Core Power Density

Standard Fuel (less than 5% U235)

Long Fuel Cycle, 4+ Year Core Life

Spent Fuel Storage on Site for Life of Plant

No Soluble Boron in Primary System for Normal Reactivity Control

Conventional/Off-the-Shelf Balance of Plant Systems and Components

Accommodate Air-Cooled Condensers as well as Water-Cooled Condensers

Flexible Grid Interface (50 Hz or 60 Hz)

Digital Instrumentation and Controls Compliant with NRC Regulations

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Twin-pack mPower plant configuration

40 acre site footprint

Low profile architecture

Water or air cooled condenser

Enhanced security posture

Underground containment

Underground spent fuel pool

Lower overnight construction cost

Competitive levelized cost of electricity 2010 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved. Patent Pending

The B&W mPower Nuclear Plant

Security-informed plant design contains O&M costs

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Integral Reactor

Simplified Integrated, Pressurized Water Reactor

Internal Components to Minimize Penetrations

Control Rod Drives No rod ejection

Coolant Pumps Not safety related

Control Rods versus Boron Shim

Load Following Capability Up to 10%/Min

Passive Safety

No safety-related emergency diesel generators

No core uncovery during design basis accident (small break LOCA)

Performance of Critical Functions by Multiple Systems for Improved Reliability and Plant Safety

Multiple Module Plants BOP Equipment Not Shared

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Pressurizer

Steam Generator Tubes

Reactor Coolant

Pumps

Control Rod Drive

Mechanisms

Core

Steam Outlet

Feedwater Inlet

Integral Reactor Arrangement

Primary Loop Secondary Loop

Central Riser

Steam

Feedwater

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Key Features of the Integral RCS

Feature B&W 177 Typical Gen 3 PWR

B&W mPower

Feature B&W 177 Typical Gen 3 PWR

B&W mPower

Rated Core power (MWth) 2568 3415 425

Core average linear heat rate (kWth/m) 18.7 18.7 11.5

Average flow velocity through the core

(m/s)

4.8 4.8 2.5

RCS volume (m3) 325 272 91

RCS volume to power ratio (m3/MWth) 0.14 0.08 0.21

Maximum LOCA area (m2) * 1.3 1.0 0.009

* Assumes double ended break

RCS volume and small break sizes allow simplification of RCS safety systems

Feature B&W 177 Typical Gen 3 PWR

B&W mPower

Rated Core power (MWth) 2568 3415 425

Core average linear heat rate (KWth/m) 18.7 18.7 11.5

Average flow velocity through the core

(m/s)

4.8 4.8 2.5

RCS volume (m3) 325 272 91

RCS volume to power ratio (m3/MWth) 0.14 0.08 0.21

Maximum LOCA area (m2) * 1.3 1.0 0.009

RCS volume/LOCA area ratio (m3 /m2) 250 270 310,000

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Ensure that assemblies are mechanically designed to remain leak tight and maintain structural integrity under all possible conditions

Load enough fuel inventory to accommodate a 4 year operating cycle at a capacity factor of > 95%

Optimize fuel assembly design to maximize fuel utilization

Maintain conservative peaking factors and linear heat rate throughout the operating cycle

Ensure a shutdown margin of > 1% keff/keff under the most reactive conditions and highest worth CRA cluster stuck out

Meet a MDNBR > 1.3 for limiting thermal-hydraulic conditions and confirm via unique CHF correlation

Design Objectives Core and Fuel Assembly

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69 fuel assemblies

< 5 wt% 235U enrichments

No soluble boron for control

Axially graded BPRs

Gd2O3 spiked rods

Control rod sequence exchanges

AIC and B4C control rods

3% shutdown margin

Core Design Features

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Fuel Mechanical Design Features

15

Shortened and Simplified Conventional Fuel Assembly Design

Conventional 17x17 design

Fixed grid structural cage

Design optimized for mPower

Upper End

Fitting

End Grid

Mid Grid

17 x 17 Square Array

Control Rod Guide Tube

End Grid

Lower End Fitting

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Auxiliary Fluid Systems

Reactor Coolant Inventory and Purification (RCIPS) Controls the reactor coolant volume by compensating for coolant contraction or

expansion

Provides hydraulic pressure to CRDM Maintains reactor coolant activity at the desired level by removing corrosion and

fission products

Injects chemicals into the RCS to control coolant chemistry and minimize corrosion

Removes decay heat during normal shutdown and plant cooldown Provides for reactor cavity fill Provides a means for transferring fluids and gases to the radioactive waste

processing system

Provides RCS pressure control by supplying spray flow to the pressurizer

Component Cooling Water Supporting system for RCIPS by transferring heat to the chilled water system

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Low Core Linear Heat Rate Low Power Density Reduces Fuel and Clad Temperatures During

Accidents

Low Power Density Allows Lower Flow Velocities that Minimize Flow Induced Vibration Effects

Large Reactor Coolant System Volume Large RCS Volume Allows More Time for Safety System Response

in the Event of an Accident

More Coolant Is Available During a Small Break LOCA Providing Continuous Cooling to Protect the Core

Small Penetrations at High Elevation High Penetration Locations Increase the Amount of Coolant Left in

the Vessel after a Small Break LOCA

Small Penetrations Reduce Rate of Energy Release to Containment Resulting in Lower Containment Pressures

Inherent Safety Features

CONFIDENTIAL AND PROPRIETARY TO B&W

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ECCS Safety Functions

Passively removes core heat following certain anticipated operational occurrences and analyzed accidents

Passively reduces containment pressure and temperature following certain analyzed accidents

Provides an alternate means of reactivity control for beyond design basis accidents (i.e. ATWS)

Provides a barrier to the release of fission products to the environment

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B&W mPower Containment

Underground containment and fuel storage buildings

Metal containment vessel Environment suitable for human

occupancy during normal

operation

Simultaneous refueling and NSSS equipment inspections

Leakage free Volume sufficient to limit internal

pressure for all design basis

accidents

2010 Babcock & Wilcox Nuclear Energy, Inc., All rights reserved.

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Balance of Plant Design

Plant designed to produce a nominal 125 MWe

Conventional steam cycle equipment (small, easy to maintain and replace)

BOP operation not credited for design basis accidents

Conventional

Air-Cooled Condenser

Steam Cycle

2011 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved.

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State of the art digital system

Provides monitoring, control and protection functions

Separate safety and non-safetysystems

Implement lessons learned fromcurrent licensing activities

Currently developing digitalcontrol system architecture

Instrumentation and Controls

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I&C Philosophy

Highly-Reliable, Integrated and Scalable Digital I&C System

I&C System Must Have Highest Degree of Licensing Certainty

Complies with All Regulatory, URD Requirements

Minimizes Regulatory Challenges with Digital I&CCyber-security, Diversity, Independence

Integrated, Modernized Human-Factored Design

High Level of Plant Automation

Control of Startup, Shutdown, Load Followingsupport staffing plan

Deliver Comprehensive O&M Strategy

Use of commercially-available components

Managed obsolescence

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Component Tests Reactor Coolant Pump CRDM Fuel Mechanical Testing CRDM/Fuel Integrated Test Fuel Critical Heat Flux Emergency High Pressure

Condenser

Integrated Systems Test (IST) Heat Transfer Phenomena Steam Generator Performance LOCA Response Pressurizer Performance Reactor Control

Development Testing Programs

Center for Advanced Engineering

Research (CAER)

Bedford, VA

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Testing Program

Objective Method Location Duration/ Timing

Rx coolant pump performance High temp test loop Curtiss Wright 2011-2016

CRDM performance Bench & autoclave Euclid 2010-2016

Fuel mechanical design Mechanical and cold

flow

Lynchburg 2010-2012

Fuel bundle performance Autoclave Euclid 2012-2013

Integrated CRDM/fuel assembly Autoclave Euclid 2012-2014

DNB correlation CHF testing Stern Lab 2010-2012

Emergency condenser IST & contract TBE 2011-2014

Integral reactor performance IST Lynchburg 2011-2014

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IST Objectives

Integrated system performance

Steam generator and component performance

Computer code validation

Licensing support

Control and protection systems verification

Design enhancements

Simulator development and verification

Operating procedures and training development

Demonstration to potential customers

February 2011A broad spectrum of objectives identified

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IST Features

Scaling

Full height

Full pressure and temperature

Power, area and volume scaled

Real time operation

Trace heating

Systems Simulated

Integral reactor coolant

Steam and feedwater

Reactor coolant inventory and purification

Emergency core cooling

Component cooling water

Protection and control

Integral reactor and important systems carefully designed

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Status

Building complete

Equipment procurement complete

Integral loop assembly in process

Equipment installation in process

Operating and test teams hired

Procedures in preparation

Start-up August-September

Testing will begin this year

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Design Considerations for Fukushima-Type EventsEvents and Threats B&W mPower Reactor Design Features

Earthquakes

And Floods

Seismic attenuation: Deeply embedded reactor building dissipates energy, limits motion

Water-tight : Separated, waterproof reactor compartments address unexpected events

Loss of Offsite Power Passively safe: AC power, offsite or onsite, not required for design basis safety functions

Defense-in-depth: 2 back-up 2.75MWe diesel generators for grid-independent AC power

Station Blackout 3-day batteries: Safety-related DC power supports all accident mitigation for 72 hours

APU back-up: Auxiliary Power Units inside reactor building recharge battery system

Long-duration station keeping: 7+ day battery supply for plant monitoring/control

Emergency

Core Cooling

Gravity, not pumps: Natural circulation decay heat removal; water source in containment

Robust margins: Core power density (11.5kW/m) and small core (425MWth) limit energy

Slow accidents: Maximum break small compared to reactor inventory (4.7x10-5m2/m3)

Containment Integrity

and Ultimate Heat Sink

Passive hydrogen recombiners: Prevention of explosions without need for power supply

Internal cooling source: Ultimate heat sink inside underground shielded reactor building

Extended performance window: Up to 14 days without need for external intervention

Spent Fuel Pool

Integrity and Cooling

Protected structure: Underground, inside auxiliary containment

Large heat sink: 30+ days before boiling and uncovering of fuel with 40 years of spent fuel

Multi-layer defense mitigates extreme beyond-design basis challenges

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Lead Plant

Generation mPower and TVA Letter of Intent

Joint development and pursuit of construction permit and operation license

Up to six B&W mPower reactors at the Clinch River site in Roane County, Tennessee

Deploy first unit by 2020

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Integrated Part 50/52 Lead Plant Deployment ScheduleCY CY CY CY CY CY CY CY CY CY CY

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Clinch River Project 10 CFR 50 Process

Submit CPA

NRC CPA Review

CP DSER

CP Issuance

Submit OL Application

NRC Review OL Application

FSER Issued

Fuel Load

COL Issuance

Submit DCA

NRC DCA Review

NRC COLA Review

DC RulemakingFSER IssuedCOLA Submittal

COD

mPower DCD & COLA 10 CFR 52 Process

Pre-op TestingStart-up Testing

Site Prep/Construction/ITAAC/Fuel Load/Startup Testing

Hearing

COD

Site Prep/Construction

OL Issuance

.31 2011 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved 31

Conclusion

B&W and Bechtel have formed an alliance to design and construct turn-key mPower SMR plant

The mPower modular reactor plant has a unique integral reactor design with passive safety system design

Design and licensing activities are well underway

A comprehensive test program is in process

A letter of intent has been signed with TVA for up to six units for deployment of the first unit by 2020