Rolls-Royce SMR

Rolls-Royce SMR ECO SMR Conference

22nd March 2021

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Sophie Macfarlane-Smith – Head of Customer Business

This information is provided by Rolls-Royce in good faith based upon the latest information available to it; no warranty or representation is given; no contractual or other binding commitment is implied

Non-Confidential© 2021 Rolls-Royce | Not Subject to Export Control

Rolls-Royce UK SMR

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AGENDA 1. Decarbonisation

2. Affordable Energy

3. Key Characteristics

4. Innovation for Benefit

5. Programme


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One Rolls-Royce SMR and associated plant can….

Desalination

Produce 500 million cubic metres of potable water per year.

Global demand for potable water to rise beyond 1 trillion cubic metres per year by 2040.

District Heating / Cooling

Heat or cool a city the size of Sheffield. (population c.584,000)

Annual global requirement over 10,000 TWh by 2040.

Electricity

Can power a city the size of Leeds. (population c.790,000)

Global grid capacity demand projected to double by 2040

Hydrogen & Synthetic Fuel Production

Produce 170 tonnes of H2 or 280 tonnes of net-zero synthetic fuel per day.

In a decarbonising world, cost competitive, scalable and reliable clean electricity will be essential to power a range of solutions

• Cummins is forecasting 2,500GW of electrolyser capacity for their addressable market – equivalent to 5,000 SMRs

• ITM is building a 1GW p.a. electrolyser factory – that would require two SMRs p.a. to power the product

• A single data centre can require between 0.5-1.0GW constant electrical power, equivalent to 2 SMRs per centre

• Data centres need c.23GW p.a

• Bitcoin requires c.13GW p.a.

• The Netherlands necessitates c.13GW p.a.


Decarbonisation

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Power station design basis:

The principle of lowest LCOE is the primary requirement

Reduce capital

(capital + total O&M + decom + fuel costs + financing cost)

Power Generating potential x Capacity factor

Manage InvestmentReduce O&M

Reduce Fuel cost

Maximise reliabilityMaximise power

Cost of Electricity(£/MWhr) =

Regulatory / Safety Proliferation Resistant Market Timing Code Compliance

Compatibility with support Infrastructure and

Sites

Public Perception

Delivery Partnership

Potential

Global Market

Utility Familiarisation / Selection of Technology

Affordable Energy


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Notes:1. Sources: IEA WEO 2020, BEIS Electricity Generation Cost Report 2020 2. Notes: CCGT = Combined Cycle Gas Turbine; CCS = Carbon Capture and Storage; USD = United

States Dollar3. Data from IEA WEO 2020, converted from USD to GBP (0.7) with +/-10% range applied

4. IEA Data – 2020 base year5. Data from BEIS Electricity Generation Cost Report 2020 – Refers to 2025 LCOE as this is the first

estimated deployment date of this technology 6. GBP92.5 CFD agreed price, scaled by CPI to 2019, as per CFD agreement

European LCOE / Levelised Cost of Storage (“LCOS”), by technology for indicative assets1 commissioning in 2019

• Capital cost under £1.8 Bn*

• Typical LCOE of electricity £35-£50 per MWh**

Affordable Energy


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A revolutionary nuclear product. Factory fabricated, road transported and site assembled


✓ RR SMR is a power station design, not a nuclear reactor

✓ c.470MWe output

✓ Compact site footprint

✓ 4-year assembly and commissioning duration for fleet units

✓ 60-year plant lifetime

✓ >90% availability factor

✓ Enhanced Gen III+ levels of safety and security

Key Characteristics

Innovation for benefit

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Low Cost Nuclear• Proven Technology• Simplified and

Standardised Equipment• Predictable and

Repeatable

Deliverable Solution• Factory Built Commodity• Minimise Construction Risk• Maximise Productivity and

Innovation across Fleet

Investable Product• Factory solution to build out

Fleet• Significantly reduced

construction risk• Acceptable Completion Risk

given commodity nature of product

• Innovation must be targeted for benefit, innovation for the sake of innovation drives cost and risk

• This SMR programme is concentrating its efforts on innovation in areas that provide maximum value, specifically:

✓ Substantial digitisation to aid build and through life optimisation

✓ Aggressively modularised civils solution

✓ Offsite manufacture and construction

✓ Modular manufacture and flow line methods

✓ Advanced analytics


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• Whole plant modularisation

• 85%-95% plant factory fabricated (site dependent)

• Standardisation of product, module sizes and interfaces – improve learner effect

• Production line approach to module manufacture

• Modules sized to reduce factory capital

• Commercial / commodity products

• Use of digital twin – design for maintenance

Modularisation is a solution to reduce cost, schedule and risk, not a design

Modularisation approach must deliver benefit

Benefits or learner of amplified through a shift from site construction to factory module

construction

Nuclear Island

Civil construction

BOP & systems



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• Power station design NOT just nuclear reactor

• Smaller in physical size and power output (470MWe)

• Designed for all aspects of lifecycle

• Seismic raft to standardise all plant modules

• Short construction period, lower levels of site activity

• Site canopy to improve efficiency / remove weather risk from construction schedule

Innovation to reduce:

• Capital Cost

• Construction period

• Risk



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From design, development and construction to the operation of first plant by 2031 (10yrs after contract award)

Programme supported by

Rolls-Royce, Consortium

partners, UK Government

and & Private Industry


Programme

Phase 0(2016 - 2019)

Phase 1 (Nov-19 – May-21)

Phase 2(May-21 – Apr-24)

Phase 3(Apr-24 onwards)

• Concept design

• Market testing

• HMG engagement on funding

• HMG policy support

• Investability and feasibility complete

• Continue design maturity

• Accelerate licensing process

• Market development

• SMR SPV formation

• Phase 2 funding

• Critical design completion

• Verification and Validation

• Regulatory approval to Step 2 of the UK Generic Design Assessment (GDA)

• Site Development support

• UK first orders secured

• Completion of GDA (2025/6)

• Design implementation

• First unit expected to be operational by 2031

• UK and export sales growth

Rolls-Royce SMR

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This information is provided by Rolls-Royce in good faith based upon the latest information available to it; no warranty or representation is given; no contractual or other binding commitment is implied


Sophie Macfarlane-Smith

Head of Customer Business

[email protected]

M +44 (0)7976193127

Rolls-Royce SMR

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