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Fuel FabricationFuel FabricationTodayToday--toto--TomorrowTomorrow

VP Asia FuelVP Asia FuelWestinghouse Electric CompanyWestinghouse Electric Company

Dr. V.J. EspositoDr. V.J. EspositoJanuary 26, 2009January 26, 2009

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Fuel Fabrication Outline

••Fuel Value ChainFuel Value Chain••Fuel Assembly ProcessFuel Assembly Process

-- Manufacturing Manufacturing -- Design Design -- EngineeringEngineering

••Global CapacityGlobal Capacity••Prediction of Fuel DemandPrediction of Fuel Demand••Assurance of Fuel Assembly SupplyAssurance of Fuel Assembly Supply••ConclusionConclusion

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Fabrication7%

Conversion4%

Uranium58%

Fuel27% O&M

73%

Enrichment31%

Overall Utility Nuclear Fuel CostsSources:O&M vs. fuel NEI 2007Fuel procurement costs from Trade Tech Jan 2009

Disposal Costs are not included

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Fuel Value ChainTrade Tech Long Term Price Indicators, January 9, 2009

U3O8 Conversion Enrichment Fabrication Back-end

Unit $ 70/lb U3O8 $ 12.25/KgUn $ 159/SWU $ 300/KgU ??? Price

Price $ 2,047/KgU $ 137/KgU $ 1,114/KgU $ 300/KgU ???/KgU

Cumul. $ 2,047/KgU $ 2,184/KgU $ 3,298/KgU $ 3,598/KgU

Percent 57% 4% 31% 8%

For 1 KgU at 4.90 w/o and tails assay of 0.3 w/oFor 1 KgU at 4.90 w/o and tails assay of 0.3 w/o

F/P = 11.192214 (KgUn / KgU)F/P = 11.192214 (KgUn / KgU)S/P = 7.003813 (SWU / KgU)S/P = 7.003813 (SWU / KgU)

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Key Elements for Fuel Fabrication and Engineering:Key Elements for Fuel Fabrication and Engineering:

Fuel Assembly is an engineered productFuel Assembly is an engineered product

Slide 5

•• Zirconium Zirconium ProductsProducts

•• TubingTubing

•• Fuel Fabrication Fuel Fabrication and Transportand Transport

•• ComponentsComponents•• UF6 to UO2 UF6 to UO2

•• Powder/PelletsPowder/Pellets•• RodsRods•• Structural Structural ComponentsComponents•• Final Fuel AssemblyFinal Fuel Assembly

•• Engineering Engineering TechnologyTechnology

•• Analytical ModelsAnalytical Models•• Power Power

RequirementsRequirements•• Core ConfigurationCore Configuration•• LicensingLicensing

•• Material Material •• TREX, Coil, BarTREX, Coil, Bar

•• Cladding Cladding

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Fuel Fabrication Process

UF6

Grids & Skeletons

Convertto UO2Powder

Pellets- UO2-Burnable absorber

Fuel Rods

Fuel Assemblies

Tubing, Springs& End Plugs Nozzles

UNH

Zirc Material -Coil

Recycle

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Fuel Assembly TechnologyFuel Design:Fuel Design:

-- Analytical Model to simulate fuel assembly in the coreAnalytical Model to simulate fuel assembly in the core•Neutronic•Mechanical/Material•Thermal-Hydraluics•Safety Analysis

-- Separate Effect and Plant Test DataSeparate Effect and Plant Test Data•DNB•Mechanical •Material Corrosion•Pressure Drop•Temperature Profile

-- LicensingLicensing•Safety Analysis•Regulatory Criteria

-- QA/QC QA/QC

-- Fuel PerformanceFuel Performance•Power Requirements

•Cycle Length•Enrichment•Number of Fuel Assemblies•Operating parameters (shut down margin, burn-up)

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Fuel Designs: Fuel Suppliers have different designs/materials/engineering methFuel Suppliers have different designs/materials/engineering methodologyodology

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LWR Current FabricationNominal Plant CapacityNominal Plant Capacity

MTU/yearMTU/year LWR Uranium Oxide Fabrication Facilities Nominal Plant Capacities MTU/Year (1/1/2008)

Country Operator Facility Powder Pellet Assembly Belgium AREVA NP EU Dessel 0 700 700 Brazil INB-Resende FCN Resende 165 120 240 China Jianzhong Jianzhong 400 400 450 France AREVA NP EU Romans 1200 820 820 Germany AREVA NP EU Lingen Fab 650 650 650 India NFC-Hyderabd Hyderabad 48 48 48 Japan NFI-Kum/Tok Kumatori 0 360 284 MNF-TokaiMur Tokai MNF 475 440 440 NFI-Kum/Tok Tokai NFI 0 250 250 JNF-Yokosuka Yokosuka 0 620 750

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LWR Current Fabrication (cont’d)

C o u n try O p e ra to r F a c ility P o w d e r P e lle t A s s e m b ly K a za k h s ta n K a za to m p ro m U lb a 3 0 0 0 1 0 0 0 0

R u ss ia T V E L -E le /N o v E le m a s h 1 0 0 0 8 5 0 7 8 5

T V E L -E le /N o v N o vo s ib irs k 1 5 0 1 5 0 1 0 0 0 S o u th K o re a

K N F C -D a e je o n D a e je o n 6 0 0 6 0 0 6 0 0

S p a in E N U S A -J u zb a d J u zb a d o 0 4 0 0 4 0 0 S w e d e n W e s tS E -V a s V a s te ra s 5 3 0 5 3 0 4 0 0 U .S .A . W e s tU S -C o lu m C o lu m b ia F a b 1 3 5 0 1 5 0 0 1 5 0 0 A R E V A N P U S L yn c h b u rg 0 0 7 0 0 A R E V A N P U S R ic h la n d 1 8 0 0 7 0 0 7 0 0 G N F -W ilm in g t W ilm in g to n 1 0 0 0 1 1 0 0 1 1 0 0 U n ite d K in g d o m

W e s tU K -S p rin S p rin g f ie ld s 4 4 0 4 4 0 0

T o ta l M T U /Y e a r 1 2 8 0 8 1 1 6 7 8 1 1 8 1 7

* S o u rc e N A C O c t 2 0 0 8

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Nuclear Renaissance

Source: EIA Annual Energy Outlook 2004Source: EIA Annual Energy Outlook 2004Source: EIA Annual Energy Outlook 2004

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1990 1995 2000 2010 2015 2020 2025

Asia

Europe

U.S.

Rest of World

ForecastElectricity Demand (Billion KWh)

• Growing demand for clean, safe electricity• Growing demand for clean, safe electricity

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Today’s Regional LWR

Demands vs. CapacityDemands vs. Capacity

US: ~2200 ~4000Western Europe: ~2000 ~3500Asia: ~1250 ~1500

Demand(MTU/yr)

Capacity(MTU/yr)

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Growth Projections for Nuclear Power

EIA 2008 Data:EIA 2008 Data:

Global Increase ~150 GWe by 2025

WNA Data:WNA Data:Global Increase ~80 GWe by 2020

~150 GWe by 2030

IAEA 2008 Data:IAEA 2008 Data:Global Increase by 2030Low End: ~60 GWeHigh End: ~300 GWe

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NEA Projections: GWeGWe Growth RangeGrowth Range

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0

Glo

bal N

ucle

ar C

apac

ity (G

We)

H ig h L o w

NEA Projections**NEA Projections**

****NEA, Nuclear Engineering Outlook 2008NEA, Nuclear Engineering Outlook 2008

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Projection for MTU of Fabricated Fuel

0

2 ,0 00

4 ,0 00

6 ,0 00

8 ,0 00

1 0 ,0 00

1 2 ,0 00

1 4 ,0 00

1 6 ,0 00

2 008 20 09 2 01 0 20 11 20 12 2 01 3 20 14 201 5 2 01 6 20 17 201 8 2 019 20 20 2 02 1 2 022 20 23 2 02 4 20 25 20 26 2 02 7 20 28 202 9 2 03 0

Fuel

Fab

ricat

ion

Req

uire

men

ts (M

TU)

H igh Lo w

Global CapacityGlobal Capacity11,80011,800

Projection for MTU of Fabricated Fuel*Projection for MTU of Fabricated Fuel*

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Fuel Design/License/FabricationTo answer the question regarding demand vs. capacity, questions To answer the question regarding demand vs. capacity, questions on a local basis need to be answered:on a local basis need to be answered:

Where will the demand for fuel assemblies be by country?Where will the demand for fuel assemblies be by country?

How big will the demand be by country?How big will the demand be by country?

What new plant design is to be chosen?What new plant design is to be chosen?

Where is the capacity to serve the demand?Where is the capacity to serve the demand?

Will countries develop indigenous capability?Will countries develop indigenous capability?

These questions require a countryThese questions require a country--byby--country assessment from the country assessment from the perspective of growth rate, capacity strategy, government aspectperspective of growth rate, capacity strategy, government aspects and s and

available options.available options.

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Fuel Assembly – Demand vs. Capacity

• Somewhat different than uranium (U308) or enrichment, the final fuel assembly is likely to be different from one supplier to another, either because of design, material, license …

• Fuel Assembly is an engineered product

• Fuel Assembly Supply is much more “local” than “global”LicensingDesignTransportationGovernmental RequirementsNew Plant Design

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Risk – Assurance of Fuel Assembly Availability

• A fuel supplier having the ability to manufacture specific fuel design in multiple countries.

- Cross Qualification of Designs- Integrated Engineering Methodology

• Ability to use fuel supplier licensees to manufacture and perform the engineering analysis.

• Potential to expand licensee rights beyond local boundaries

• Potential Strategic Inventory of fuel assemblies

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Conclusions

•Capacity growth studies are highly variable50 GWe - >300 GWe

•Current and Planned Global Capacity available for significant increase in new plants, however, only from a global aspect.

•Local capacity will be required to address regional growth.

•Transportation capability is an important element to achieve better globalization

•Local or Regional production is likely more important than global availability which can result in capacity short falls