jefferson city, mo – march 31,...
TRANSCRIPT
Jefferson City, MO –
March 31, 2011
Welcome to the Missouri Supplier Day
Thomas M. Williamson, P.E.VP, New Build Business DevelopmentAREVA, Inc.
March 31, 2011Jefferson City, MO
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
SAFETY BRIEF
Supplier Day ObjectivesDevelop partnerships to expand nuclear energy manufacturing
Jobs, education, tax revenues, and sustainable development
Create a broad based coalition to communicate the benefits beyond safe, cost effective, clean energy
Join forces to communicate the benefits of new nuclear power with all stakeholders including state, local, and federal policy makers
Improve supplier qualification process to rebuild the U.S. nuclear infrastructure
Public and private sector collaboration for mutual benefit
Partnerships to create jobs and build new nuclear infrastructure
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Supplier Day ProgramMorning Session
Introduction Tom Williamson (AREVA)Welcome Irl Scissors (MBEF)Keynote Presentation Chairman Gunn (Missouri PSC)Ameren/Callaway Update Senator Kehoe (Missouri Senate)Ameren Update Adam Heflin (Ameren Missouri)AREVA Overview Mark Marano (AREVA)
BREAKRenewable Energy Tom DePonty (AREVA)Eagle Rock Project Mike French (AREVA)Integrated Procurement Process Frank Barilla (AREVA)Clean Energy Park Matt Dryden (AREVA)Next Steps Tom Williamson (AREVA)
LUNCH
Afternoon SessionQuestion & Answer Session – Lincoln Room
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Supplier Day Benefits Timely supplier qualification and engagement
We need to engage suppliers to complete U.S. EPRTM designWe will break ground on Eagle Rock this summerGlobal nuclear renaissance is underwayU.S. economy needs high paying jobs to sustain economic recovery
Sustainable economic development for MissouriHigh quality jobs, new education opportunities, and state/local revenuesClean, cost effective, base load energy
Good things happen when leaders unite Together we are not just building a plant, we are building an industry
Register today and join the AREVA Team
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Jefferson City, MO –
March 31, 2011
Ameren Missouri Ameren Missouri OverviewOverview
2011
9 MBEF / AREVA Supplier Day
NUCLEAR ENERGY IN JAPAN
•
54 operating nuclear reactors (49 gigawatts)
•
Two nuclear plants under construction
•
Tokyo Electric Power Co. produces 27% of Japan’s electricity
•
12,000 MW of nuclear energy capacity shut down
10 MBEF / AREVA Supplier Day
CALLAWAY PLANT
Operating safely and reliably since Dec. 1984
4th highest lifetime generation among the 104 U.S. nuclear plants through 2010
18th highest lifetime generation, through 2010, among the 439 nuclear plants worldwide
Provides 19% of the total electricity generation for Ameren Missouri
In 2009, generated the most electricity in any calendar year since coming online in 1984(10.2 million megawatt-hours)
11 MBEF / AREVA Supplier Day
PLANT DESIGN FEATURES
Emergency Safety Systems include multiple emergency power sources:• 2 power lines to the site• 2 Emergency Diesel Generators (onsite)• 4 Standby Diesel Generators (offsite)
Additional Emergency Safety Features:•
Steam powered cooling water pump with DC battery powered controls system
•
A 30-day cooling water supply stored on-
site in a seismically designed retention pond
•
Severe Accident Management Procedures developed for beyond design events
12 MBEF / AREVA Supplier DayOffsite Emergency Generators
Inside Containment
Callaway Plant Safety Features
13 MBEF / AREVA Supplier Day
INSTITUTE of NUCLEAR POWER OPERATIONS (INPO) HAS ISSUED IMMEDIATE ACTIONS FOR ALL U.S. NUCLEAR PLANTS
•
Consistent with U.S. Nuclear industry principles:–
Nuclear safety undergoes constant examination–
Organizational learning is embraced
•
The following actions are being taken:–
Verify the capability to mitigate conditions that result from beyond design basis events committed to in licensing documents and Severe Accident Management Guidelines (SAMGs).
–
Verify the capability to mitigate station blackout (SBO) conditions required by station design is functional and valid.
–
Verify the capability to mitigate internal and external flooding events required by station design.
–
Perform walk downs and inspections of important equipment needed
to mitigate fire and flood events to identify any potential for equipment function to be lost during seismic events appropriate for the site.
14 MBEF / AREVA Supplier Day
AMEREN MISSOURI
Ameren Missouri (orange)1.2 million Electric customers126,000 Natural Gas customers500 communities served24,000 square mile territory4,400 Employees
15 MBEF / AREVA Supplier Day
AMEREN MISSOURI GENERATION…over 10,000 MW
Rush IslandJefferson Co.
1,204 MW1976
Taum SaukReynolds Co.
440 MW1963 & 2010
MeramecSTL Co.839 MW
1953
OsageLakeside, MO
234 MW1931
CallawayCallaway Co.
1,200 MW1984
LabadieFranklin Co.
2,407 MW1970
SiouxSt. Charles Co.
986 MW1967
KeokukIowa
137 MW1913
CTGsMO & IL
2,966 MW
16 MBEF / AREVA Supplier Day
AMEREN MISSOURI RESIDENTIAL RATES
•
Ameren Missouri’s average electric rates are significantly below the national average.
Source: Edison Electric Institute (EEI)
1991 2001 2005 2006
8
7
6
10
2010National Avg.
9
7.79Cents/KWh
6.98Cents/KWh 6.52
Cents/KWh
6.60Cents/KWh
Cent
s pe
r KWh
11.74Cents/KWh
2009
7.03Cents/KWh
7.90Cents/KWh
2010
17 MBEF / AREVA Supplier Day
Missouri’s demand for electricity is expected to increase by 20 to 25 percent in the next 20 years.
The state of Missouri will need new base load generation in the future, even with implementation of energy efficiency programs and investing in renewable energy sources such as wind and solar.
Within the next 20 years, about 90% of Missouri’s coal-fired power plants may or could have to be retired
Anticipated federal regulations and consideration of federal carbon tax proposals would drive up the cost of power derived from fossil fuels
MISSOURI ELECTRICITY DEMAND
18 MBEF / AREVA Supplier Day
AMEREN MISSOURI – PLANNING FOR THE FUTURE
•
Utilities are required to file an Integrated Resource Plan every
3 years•
Ameren Missouri filed Feb. 23, 2011 (charts below from report)•
A very important and very resource intensive process with a great deal of discussion with stakeholders with a broad range of interests
Levelized Cost of Energy per Generation Options
Cents/KWh
19 MBEF / AREVA Supplier Day
MISSOURI UTILITES FORM PARTNERSHIP FOR EARLY SITE PERMIT
•
All six of Missouri’s electric utility providers formed a partnership in November 2010; it is comprised of Missouri’s investor-owned, rural electric cooperatives and municipal utilities.
•
We are joining together to pursue state legislation in support of a Site Permit application filing for the Callaway Plant site.
20 MBEF / AREVA Supplier Day
THE PATH FORWARD
The Missouri Utility partnership is committed to provide safe, efficient, low cost energy for the long term.
Keeping the status quo is not a strategy for success.
Despite the recent tragedy in Japan, nuclear energy is a viable long term solution.
The US and worldwide nuclear community will learn from the Japanese events and make our current fleet of plants, as well as future plants, even safer.
Jefferson City, MO –
March 31, 2011
AREVA is Clean Energy and American Jobs
Mark MaranoSVP, New Plant Build
Operations -
USAAREVA, Inc.
March 31, 2011Jefferson City, MO
Agenda
AREVA: Forward Looking EnergyExclusive low carbon portfolio for future generation
Opportunity: Supporting the Global Nuclear RenaissanceBecome an AREVA Certified Supplier
Opportunity: Building an Industry in the U.S.Where are we heading and how do we all fit in?
AREVA Supplier Day – Carpe Diem
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
An Introduction to AREVA
AREVA is a global leader in solutions for CO2 -free power generation. AREVA’s has two major carbon- free offerings:
Nuclear Energy which covers every stage of the nuclear fuel cycle. Renewable Energies for wind, solar, hydrogen and storage
48,000 employeesAnnual sales $ 11 billionOrder backlog $ 57 billion30% revenue growth 2001-2010
An Energy Mix that meets our customers’ requirements
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
An Integrated Model: a Key to the Group’s Success
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Increase in Market Share
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
95% of Nuclear Utilities are AREVA Customers
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Very Strong Prospects
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Capacity Developments
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Developing Engineering Platforms and Intensifying R&D Efforts
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
A Diversified Mining Portfolio in 2010 Production up 30% vs. 2001
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
A Renewed Industrial Tool Using the Best Technologies
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Range Expansion
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Generation III: Learning from Four Events
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
A Range of Reactors Adapted to Customer’s Needs
Key elements of the supply chain are under AREVA control
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Opportunity: Global Nuclear Renaissance
Nuclear Energy is Global, a Revival is Underway, and AREVA is Leading
30 countries operating 441 nuclear power plants43 countries considering starting a civil nuclear program25 countries having expressed interest
AREVA supplied a fourth of the world’s reactors and has never stopped building
4544343028
60
2005 2006 2007 2008 2009 2010
# of reactors under construction in the world
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
More than 20 EPR™ Reactor Projects under Development Worldwide
Under developmentProspects
Under construction
u
Second EPR™ project for EDF, GDF SUEZ, Total, Enel and possibly E.ON in Penly
u
Possible 3rd EPRTM
project under discussion
FRANCE1 + 1
FRANCE
u
FLAMANVILLE 3 under construction
1
u
OLKILUOTO 3 under construction
1 FINLAND
u
4 units announced by EDF
u
4 units targeted with E.ON/RWE
u
Further units GDF SUEZ/Iberdrola/SSE
u
Industrial partnerships with Balfour Beatty and Rolls Royce covering engineering, manufacturing and construction
4 + 4 UK
CHINA
u
TAISHAN 1&2, 2 units under construction
2
u
Memorandum of Understanding with NPCIL for 6 EPR™ reactors at the Jaitapur site; offer for 2 EPR™ reactors
u
Strategic alliance with Bharat Forge
u
Framework agreement with TCE Consulting Engineers (Tata) for engineering services
u
Licensing launched
2 + 4 INDIA
u
4 units announced by EDF and Enel through the JV SNI
u
Further potential units with European utilities that have declared interest in contributing to the Italian nuclear program; no formal set- up yet
ITALY4
PROSPECTSu
Brazil, Canada, China, Czech Republic, Finland, Lithuania, Poland , Switzerland, the Netherlands
USA7 + 2u
Design Certification Application submitted in Dec. 2007 and expected by 2013
u
Detailed Design underwayu
4 Combined License Applications referenced by NRC
u
CC3, BB, NMP, Amarillo (2), FNEG (2) have selected the EPR
u
Ameren and Duke are evaluating the EPR
u
RSA is speaking about a fleet approach (Integrated Resource Plan) with about 10,500MWe by 2018 and 21,000 MWe by 2035
u
Localization will be a key issue
REPUBLIC OF SOUTH AFRICA (RSA)
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Fukushima Dai-ichi Situation Initial Reactions in Europe
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Fukushima Dai-ichi Situation Initial Reactions in the Americas
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Fukushima Dai-ichi Situation Initial Reactions in Asia
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA is Gaining Advanced Reactor Construction Experience in Europe & China
Taishan 1&2, China Flamanville 3, France
Olkiluoto 3, Finland
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
© EDF
Lessons Learned from 4 EPR Reactors under Construction in Different Countries
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
EPRTM Reactors: Average Series Construction Times In-Line with Other Series
►Construction time between the first concrete pour and startup of nuclear operations (# of months)*
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Certainty of EPR™ Supply Chain
AREVA is the supplier for:►NSSS Components
Reactor VesselSteam GeneratorsPressurizerCRDMReactor Coolant Pumps and Motors
►Digital I&C ►SR electrical components►Uranium Supply,
Conversion, Enrichment, and Fuel Fabrication
AREVA agreements:►Bechtel A/E-C►Siemens T/G, I&C►Alstom T/G► JSW Forgings►MHI Manufacturing►Northrop Grumman Mfg.►Other global EPR plant
components~ 20 suppliers
Key elements of the supply chain are under AREVA control
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
►Continuous deliveries of quality products and process improvements for existing plants and new build projects
Chalon Saint Marcel•
30 years of operations•
Workshop: 39,000 m²•
Reactor Pressure Vessels, Steam Generators, Pressurizers, Safety Injection Accumulators
•
ANS Nuclear Historical Landmark Award 2009
Sfarsteel (Creusot Forge)•
Heavy forging and machining•
Workshops: 85,000 m² (4 sites)
JSPM (Jeumont)•
Reactor coolant pumps and motors, control rod drive mechanisms
Major Industrial Assets
2900m² extension
in 2006
AREVA since 2006
2 new production
lines by 2011
1200m² ext. by 2012
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Opportunity: Building an Industry in the U.S.
Nuclear Manufacturing Must be Rebuilt
source: IAEA 2008
gleichzeitig im Bau befindliche Kernkraftwerksleistung
im Jahr 1980
Nunmer of reactors under construction
0
50
100
150
200
250
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
GW
(e)
Developing countries
Japan and S.Korea
E. Europe
W. Europe
North America
1980
20 Years
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA U.S. Locations#1 in Nuclear and Growing in Renewables
•
• •
•
•
•
• •
•
•••
••
• 3434
LocationsLocations
•
••
•
•••
••
•5,000 Employees
••
•
••••
•
Lynchburg, VA (2,200)
Richland, WA (700)
Charlotte, NC (650)
Meriden, CT (350)
•
Future home of Eagle Rock Enrichment Facility (300)
Future home of AREVA Newport News (540)
Bethesda, MD (90+)
MOX Fuel Fabrication
Facility (800-1000)
•
Mountainview, CA (100)AREVA SOLAR Global
HQ
•
•
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA is Investing to Remain #1 in U.S.
OFR Upgrade Expansion$37.7M
Pump and Motor Facility$16M
MRR Training Facility$6M
Best Practice Rod Lines$6M
Newport News Nuclear Component Facility –
an investment of $363M
Chemistry Lab $6.6M
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA & Partners Join Forces to Build Major U.S. EPR™ Components in U.S.
►AREVA Newport News FacilityJoint venture with Northrop Grumman and AREVA•
A new U.S.-based manufacturing facility for heavy components for AREVA’s EPR™ reactor customers
•
Leverages Northrop Grumman Ship Building skilled resources for engineering and field support
•
Option to expand to meet global demand for heavy components
•
$363 million project investment/540 permanent jobs•
Groundbreaking July 22, 2009/COD delayed to match market demand
►Alstom Chattanooga Manufacturing FacilityFacility to manufacture EPR™ turbine/generator$280 million project/350 permanent jobsInauguration June 24, 2010
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Supplier Day: Carpe Diem
Join the U.S. AREVA Supplier Team
We are currently building the MOX fuel fabrication facility and AREVA Newport News
We are preparing for Eagle Rock construction to begin in 2011
We are working with TVA on design and development to help re-start the Bellefonte nuclear plant in Alabama
AREVA U.S. EPR™ reactor licensing and design activities are on track to support nuclear new build in the U.S.
AREVA representatives are here to answer questions and provide assistance
Become an AREVA Supplier and go Global
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Thanks to our generous sponsors
AREVA Renewable Energy Overview
Tom DePontyRenewable Energy Business GroupAREVA, Inc.
March 31, 2011Jefferson City, MO
Hydrogen & Energy Storage
Bio-energy
AREVA is a Global Manufacturer of CO² Free Power Generation Equipment
Concentrated Solar ThermalOffshore Wind
Focus on 4 segments
Most cost-effective and land efficient solar technology
Off-shore wind turbine of the highest power rating (5MW) currently in operation
© AREVA Multibrid © AREVA Solar © Helion© AREVA
World leader in bio-energy with nearly 100 plants in operation
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Offshore Wind Power: AREVA Offers a Unique, Tailor-made
Solution with Regional Economic Benefits
Local economic development through domestic manufacturing
4.5 jobs per installed MW (direct/indirect)*1.4 additional jobs per installed MW(service and maintenance)*Immediate economic impact during supply chain ramp up
►
One of most powerful offshore wind turbines on the market (5 MW) -
reduces number of turbine installations
►
Wind turbine designed specifically for the harsh sea conditions
►
Relatively lightweight turbine design enables cost-effective installation
►
Selected for more than 600 MW of projects, with 800 MW more under discussion
* Independent study, Mangum Economic Consulting, 2010
Built for the Sea. Made for the Wind.
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Solar Technology Leverages Decades of Experience and Expertise
in Steam Management TechnologyAmong the different solar technologies, Solar CSP, as opposed to solar photovoltaic, matches AREVA’s activities and expertise
Low technology risk
Proven technology is replicated, not scaled
Low water consumption
Most land efficient CSP technology
Designed for harsh desert conditions
Solar CSP fieldSolar CSP field
Steam production and management: AREVA core expertise
The principle of solar direct light concentration
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Standalone power plant
Industrial Processing
Solar Steam Augmentation
AREVA Solar’s technology can be used for a variety of applications.
AREVA Solar Technology:Three Main Applications for
Utility and Industrial Customers
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Bio-energy Capitalizes on Nearly 3000 MW Installed Worldwide
98 Power plants under operation or construction
2,430 MWe total installed capacity
Germany
2 biogas
+ 5 mine gas power plants for
57 MWe
Brazil
83 biomass power plants for
2,296 MWe
Chile
1 biomass power plants for
10 MWe
India
3 biomass
+ 2 waste heat power plants for
47 MWe
Thailand
2 Biomass power plants for
20 MWe
USA
Development Joint venture
Full bio-energy
EPC Services
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Proposed Fresno Clean Energy Park - Desalinization
AREVA Solar field powering desalinization plant generating clean
agricultural waterFresno Nuclear Energy Group and AREVA Solar Nuclear new build utilizing AREVA EPR, Areva Solar Field and Desalinization facility.
What:
Who:Elements:
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Key Procurement Components for AREVA Renewable Business
Bio-energyConcentrated Solar Thermal Offshore Wind
Mirror glassBoiler TubingStructural steel and steel fabricationsDrive motorsSteel decking – roll formed galvanized sheetControl Panels
Large Nodular Iron Castings and Machining (30-60 tonnes)Large composite structures – fiberglassSteel towers and foundations – heavy steel plate rolled and weldedGenerators – 5MWGearboxesConverters
Steam Turbine GeneratorFuel Handling SystemsAux & GSU TransformerCEMSFly Ash SystemBoilerACCBoiler Feed PumpHeat ExchangersMotor Control CenterLightning Protection
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Jefferson City, MO –
March 31, 2011
Eagle Rock Project Update
Mike FrenchAREVA Enrichment Services
March 31, 2011Jefferson City, MO
World Energy Outlook
The world will demand more energyGlobal energy use grows by 36%Non-OECD countries – led by China where demand surges by 75% – accounting for almost all of the global increase
The world will demand energy from all sources
Source: World Energy Outlook 2010
World Energy Demand by Region Incremental Primary Energy Demand 2010 - 2035
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Nuclear Energy Will Play a Major Role
In 2008, there were a total of 439 reactor units in operation worldwide providing over 370,000 MWe
By 2030, the number of reactors is expected to grow to 698 – a staggering 158% growth of new builds - That’s 334,000 MORE MWe in 2030 than in 2008.
China alone is expected to add over 100,000 MWe by 2035
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Global Demand for Enrichment is Also Growing
Source: World Nuclear Association
Demand for enrichment will also increaseDriven primarily by dramatic growth in Asia
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
18 MSWU in 2030 according to WNA
USA: 3.9 billion kWh/an
U.S. is the largest nuclear energy market in the world
104 nuclear power plants in operation14 MSWU/y today or 25% of world demand
Growing needsU.S. demand expected to grow to 18 MSWU in next 20 years
Supply uncertaintiesClosing of Paducah, the GDP plant in KY, in the next 4-5 yearsEnd of Russian HEU supply in 2013 – covers 50% of current US enriched uranium demandTrade Case against French SWUNew planned facilities face significant technical and financial challenges
ACP in Ohio, GLE in North Carolina
Russian capacity presents significant risk of supply uncertainty and policy concerns
The U.S. Nuclear Energy Market
2010 2020 2030
+20%+10%
14 MSWU
17 MSWU
18MSWU
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Eagle Rock 3.2m SWU (possible extension to 6.6m SWU)
GBII 7.5m SWU (Possible extension to 11m SWU)
Two AREVA State of the Art Plants to Serve the World’s Growing Demand for Enrichment
Represents about $8 billion investment to strengthen AREVA’s position as a worldwide supplier of uranium enrichment Secure a U.S. domestic source of supply to reduce dependence on imports
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
3.2 MSWU, equivalent to 20% of current U.S. needs
Provides a long-term, stable supply of domestic SWU
Uses the most efficient technology in the market – license from ETC
Leverages lessons learned from Georges Besse II plant and other AREVA projects in the U.S.
Eagle Rock Secure Supply for U.S. Requirements
Centrifuge Assembly Building
Separation Building Modules
Blending, Sampling and Preparation
Building
Technical Support Building
Operation Support Building
Eagle Rock Enrichment Facility
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Challenges
2010 2011 2012 2013 2014
3090
260310
« Green Field » Site Licensing & Construction
HiringHiringFinancing
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Site in 2009
Licensing
September 2010: Safety Evaluation Report (SER) issued
January 2011: Mandatory SER hearing completed
February 2011: Final Environmental Impact Statement issued
Procurement and Construction
November 2010: Performed limited NRC-authorized site work (grading, on-site roads, leveling and clearing)
December 2010: “Supplier Day” in Idaho Falls with participation of 200 local and regional companies
February 2011: URS selected as Procurement and Construction Manager for Eagle Rock
Financing
May 2010: Received Conditional Commitment for $2B Loan Guarantee from DOE
Centrifuge Assembly Building
UF6 Buildings
Technical Support Building
Operation Support Building
View of the site in 2017
Accomplished Milestones On Track for 2014 Production
Public Hearing in Boise (August 2010)
Site Preparation (Nov 2010)
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Cascades Core Process Balance of Plant Coordination
Engineering ETC E&P NTS Shaw AES
Procurement ETC E&P URS URS
Construction / Manufacturing
ETC E&P URS URS
Site Installation ETC URS URS URS
Cold Commissioning ETC E&P URS URS
Hot Commissioning ETC AES AES AES
Scope Division
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Procurement & Construction Organization
AES
URS
Site Engineering Office
E&PSite Engineers
NTS ShawSite Engineers
Procurement, Construction,
& Field Installation
Mech. Steel
Elec.
HVAC
ETC
Cascade Construction Civil
OtherGrading
Core Process
InstallationCoordination of Handover
of CAB & SBM to ETC
AREVA E&P
Design & Procurement
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Other Essential Behaviors
Plant will be constructed under an NRC license with strict adherence to a nuclear safety culture
A Safety Conscious Work Environment must be maintained and constantly reinforced
Environmental ResponsibilityThe construction work force must take every opportunity to minimize that impact
Openness with regulatorsThe construction activity is regulated by the NRC, the EPA, the state of Idaho, the local county and others
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Project Calendar of Major Milestones
2010 2011 2012 2013 2014
Design
DOE LG NRC License
Pentapartite
Start of construction
Advance construction
Turnover of first systems
Cascade hall turnover
Centrifuge Assembly
building transfer
Cascade Assembly
First cascade commercial production
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Jefferson City, MO –
March 31, 2011
AREVA Integrated Procurement Process
Frank BarillaEREF Procurement ManagerAREVA, Inc.
March 31, 2011Jefferson City, MO
AREVA Procurement Vision A new generation of suppliers for a new generation of Nuclear PowerPurchasing Strategy
AREVA continuously seeks to enrich, develop and optimize its worldwide panel of supplier partners in order to select the most competitive solutions with respect to both technical and financial requirements. Long-term partnerships will be developed with selected suppliers in order to
Respond to local requirementsDOMESTIC PROJECTS
Offer competitive solutions worldwide to our customers
INTERNATIONAL PROJECTS
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Purchasing Organization: One Face to Suppliers
A “Corporate” interface (Commodity Manager)Vision and strategy
Supplier development & continuous improvement
New business opportunities
A “Project” interface (U.S. Project Procurement Manager)
Specific project-related business = U.S. Supply Chain
Goal: a supplier – customer partnership relationship
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Procurement Activities in the U.S. Right Now
Commercial Nuclear Fleet Components and equipment supporting the installed base
TVA Bellefonte Startup Engineering Subcontractors
US EPR™ ProjectsSupplier network being developed
Eagle Rock Enrichment FacilityEagle Rock Core Process Equipment
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Installed Base Procurement Activities
Bellefonte
Control room simulatorSafety systems controls systemNon-safety digital control systemPlant radiation monitoring systemFire protection program & Fire safe shutdown analysisTXS-RPS control systemReactor coolant pumps
Davis Besse (2010)
Integrated Head Assembly
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Bellefonte Nuclear Plant Startup
AREVA Staff AugmentationApproximately 50 positions currently identified in the next three months
Tasks NeededEngineers for Walkdowns – locating and verifying components and general plant configurationI&C Engineers – Both I&C Design and I&C System Engineers with nuclear plant experienceHuman Factors Engineers – former SROs or ROs
LocationsMost of the positions are on-site at Bellefonte –Hollywood ALSome I&C work may be in Charlotte, NC
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Identifying and Building Partnerships with Suppliers
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Suppliers are critical to the success of U.S. EPRTM
projectsThis is our fourth Supplier Day
MarylandOhioIdahoMissouri
We are working with our supplier partnersBundling and grouping of componentsModular construction strategiesProcess improvements
AREVA Eagle Rock Procurement ScopeCore Process Equipment
CAB
Assembly and control linesBOP, utilities
ETC + URS
TSB, OSB
Process, MechanicalPlant controlLab, MaintenanceBOP, utilities
AREVA + URS
BSPB
Process, MechanicalBOP, utilities
AREVA + URS
ESB
Electrical
URS
UF6 Annex
Process, MechanicalBOP, utilities
AREVA + URS
Cascade Halls
CascadesProcessSeismic slabBOP, utilities
AREVA + ETC + URS
PSC
ProcessDrive systemBOP, utilities
AREVA + ETC + URS
MSB
Fluids
URS
* Process Service Corridor * Mechanical Service Build. * Centrifuge Assembly Building
* Technical and Operational Service Building
* Blending Sampling and Preparation Building
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Procurement Scope Core Process Equipment
Mechanical Stations (Heaters/Chillers)Autoclaves Traps & Drains
I&C EquipmentMaterial Handling
Rail TransportersHandling Equipment
Precision Weighing EquipmentLaboratory and Workshop EquipmentVentilation Equipment (GEVS)Security & Fire Protection
45 Bid Packages
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Autoclaves
Vent Treatment Skids
Precision Weighing System
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Rough Order Cost Estimates for Selected Bid Packages
< $5M $6 - $10M > $10M
Handling Equipment Subcritical Tanks Rail Transporter
Precision Weighing Equipment
Drumming Stations Centrifuge Floor Mounted Elements
Cages and Adapters Decontamination Unit Autoclaves
Chemical Traps Cylinder Frames I&C Supply & Programming
Glove Boxes Gaseous Effluent Vent System
Laboratory Equipment
Detectors Fire Protection Security System
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Some EREF Definitions
Copy-Paste Strategy – Using the design from AREVA’s Georges Besse II (GBII) Plant and modifying it only as necessary to meet U.S. requirements required by the license application or other regulatory commitmentsAmericanization – The process of adapting the French GBII design to the EREF project by adding only those U.S. requirements necessary IROFS – Items Relied On for Safety as defined in the EREF license application in accordance with 10 CFR 70ETC Qualification – Core Process Equipment closely integrated with the ETC centrifuges that required supplier qualification by ETC during the GBII project
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
EREF Quality Levels
10 CFR 70 – Governing U.S. Requirements to be met by the license application – similar to 10 CFR 50, but not exactlyQuality Levels (QL)
QL 1•
Failure or malfunction could directly
result in a condition that adversely affects public, worker, and the environment
QL 2•
Failure or malfunction could indirectly
result in a condition that adversely affects public, worker, and the environment
QL 3 •
Not QA Level 1 or 2 –
Commercial Grade
Sim
ilar t
o Sa
fety
Rel
ated
(10
CFR
50)
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
The Procurement Process Involves Detailed Design Specifications That Will be Based on GBII/REC II Design
etc.Ventilation
Electrical Mechanical Equipment
Table of Contents
Technical Codes &
Standards: ASME, ASTM,
IEEE…
Technical Codes &
Standards:ASME, ASTM,
IEEE…
I&C
Introduction1. Scope2. Definitions3. Documentation4. Design5. Materials6. Manufacturing7. Operability8. Requirements for
Auxiliary Systems, Venting, Drains, Integral Supports
Quality Requirements
With modification according to Quality Level and National
Regulations
- Quality Management-
Documentation-
Inspection
Quality Requirements
With modification according to Quality Level and National
Regulations
- Quality Management- Documentation
- Inspection
AmericanizationIROFS
Requirements
AmericanizationIROFS
Requirements
Existing Design from GBII/REC IIExisting Design from GBII/REC II
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Purchasing Processes for the U.S. Bid Packages
SupplierDevelopment
RFP forDetail
Design & Manufacturing
Negotiate,Design &
Fabrication
Supplier Selection
Design & Manufacturing
Award
Competitive Procurement Process with multiple suppliers whenever possibleSupplier Development
Technical Assessment of supplier facility and staffQA AuditFinancial Assessment
Detailed Design ScopeGBII/RECII Design information will be provided whenever possibleU.S. Codes and StandardsMore than one supplier may be chosen to perform a detailed designRough Order Magnitude (ROM) Price will be requested in Detailed Design RFP
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Eagle Rock Core Process Projected RFPs to be Issued
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
How to contact AREVA Procurement
Website: http://suppliers.areva.com
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Join the U.S. AREVA Supplier Team
We are currently building the MOX fuel fabrication facility and AREVA Newport News
We are preparing for Eagle Rock construction to begin in 2011
We are working with TVA on design and development to help re-start the Bellefonte nuclear plant in Alabama
AREVA U.S. EPR™ reactor licensing and design activities are on track to support nuclear new build in the U.S.
AREVA representatives are here to answer questions and provide assistance
Become an AREVA Supplier and go Global
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Jefferson City, MO –
March 31, 2011
An AREVA Clean Energy Park: What is it and why now?
Matt DrydenVP, Business Development -
Strategic InitiativesAREVA, Inc.
March 31, 2011Jefferson City, MO
What is an AREVA Clean Energy Park?
A business model that produces an optimized, customer- specific solution from AREVA’s clean energy portfolio
A low risk project development process to strategically deploy low carbon capacity additions in the near term
A partnership that creates value for all stakeholdersCreates thousands of clean energy jobsCreates tax baseProduces safe, cost effective, clean energy
Leverages the AREVA clean energy portfolio
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Elements of an AREVA Clean Energy Park Tailored to Customer Needs
AREVA U.S. EPR™ nuclear plantRenewable energy (solar, wind, biomass, hydrogen storage)
Used nuclear fuel managementNuclear power upratesAREVA and partner manufacturing facilitiesElectro-intensive industrial facilitiesWater treatment/desalination
A unique, low-carbon portfolio adaptable to regional energy sources and regulatory environments
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Cooperative Benefits for Business, Government and Community
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Establishes Foundation for Strategic, Economic Growth in Clean Energy
New Jobs Year 1 Highest YearDirect 820 3,000 Site construction workersIndirect 593 2,168 Vendors for equipment and
servicesInduced 688 2,516 Service jobs created in food,
hotel, entertainment and other industries
Total Jobs 2,102 7,684Note: Based on detailed analysis of a typical EPR site
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Significant Economic Driver Through Payroll Tax Revenue
Year 1 Highest YearFederal $30.1M $110.2M
State and Local $15.9M $57.9M
Total Revenue $46.0M $168.1M
>$832M in federal, state and local taxes during construction
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Increases Regional Skills and Education With Ongoing Job-focused Learning
•
Courses•
R&D•
Mentoring•
On-site/Summer Programs
•
Distance Learning
Community Colleges /
Technical Schools
Major UniversitiesTeaching
Bachelor Degree Graduates
Master DegreeGraduates
PhD Graduates
TechnicalTraining
UndergradDegrees
GraduateDegrees
R&D Work
High School Graduates
Mentoring
Access to educational opportunities for all levels of employees throughout their careers
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Jefferson City, MO –
March 31, 2011
Next Steps
Thomas M. Williamson, P.E.VP, New Build Business DevelopmentAREVA, Inc.
March 31, 2011Jefferson City, MO
Supplier Day Objectives
Developing partnerships to expand nuclear manufacturingJobs, education, tax revenues and sustainable development
Create a broad based coalition to communicate the benefits beyond safe, cost effective, clean energy
Join forces to communicate the benefits of new nuclear power with all stakeholders including state, local, and federal policy makers
Improve supplier qualification process to rebuild the U.S. nuclear infrastructure
Public and private sector collaboration for mutual benefit
Partnerships to create jobs and advocate nuclear energy
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
AREVA Clean Energy Supplier Network
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Action Items
Get on the AREVA Approved Supplier ListGo global by registering to become an AREVA Certified SupplierJoin Clean Energy Suppliers NetworkJoin the Nuclear Energy Institute (NEI)Join the Nuclear Fabrication Consortium (NFC)Check us out on-line to advocate nuclear energy
Blog: us.arevablog.comTwitter: twitter.com/AREVAincLinkedIn Group: AREVA Inc.Facebook: AREVA Inc.You Tube: www.youtube.com/AREVAinc
MBEF/AREVA Supplier Day –
Jefferson City, MO –
March 31, 2011
Join the Team and Get Involved!
Jefferson City, MO –
March 31, 2011