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RADIX
Radix®
POWER AND ENERGY CORPORATION
Dr. J. Paul Farrell
President and CEO
February 2012
All information proprietary to RADIX
RADIX
Executive Summary
Replace Diesel-Electric Generators with RADIX
Systems Power at 1/3rd or Less Current Cost
Market, Design, License & Support
Outsource Manufacturing & Construction
Technology + Team = First-to-Market
BUSINESS
CASE
BUSINESS
MODEL
STRATEGY
All information proprietary to RADIX
RADIX
• J. Paul Farrell - Nuclear physicist & Founder and President of
Brookhaven Technology Group; recipient of more than $8M in
DOE/DOD research awards
• James R. Powell - Former Head of the Reactor Systems Division at
Brookhaven National Laboratory; winner of the prestigious Franklin
Medal; inventor of Maglev
• Philip O. Moor - Chair of American Nuclear Society President’s
Committee on Small Modular Reactors and project lead on many
nuclear energy initiatives, including both large & small modular
reactor projects
• And, established legal & business professionals with
proven track records in start-up management, global
product launches & corporate finance transactions
All information proprietary to RADIX
Management Team
RADIX
• Immediate Market Demand– 24/7/365 Reliable Power for Off-
Grid Users
– Replaces High Cost Diesel Electric Power With Cost Effective Mini Modular Reactors (MMRs)
– Targets:Military Bases (Domestic & Foreign)Industrial & Mining SitesRemote CommunitiesIndustry & DesalinationEmerging Economies
• 21st Century Design– Affordable, Modular 10 MWe
Power System
– Developed from U.S. Army Study
– Gen III++ SMR with Passive Safety
– Factory Built & Delivered To Site
– Licensable PWR Technology
– Licensable All Metal UZrH Fuel with 10 Year Refuel Cycle
All information proprietary to RADIX
Immediate Market, Affordable, Safe & Licensable
RADIX is Unique Because…
RADIX
• Drivers of Demand
– Politics Of Fossil Fuel Dependence
– Logistics of Fossil Fuel Delivery
– Cost & Cost Stability
– 24/7/365 Reliability
– No Emission of CO2
• Solid Economic Business Case
All information proprietary to RADIX
Why Purchase a RADIX MMR?
RADIX
• 10 MWe (40MWt) IPWR
• Scalable & Deployable
• Powers approx. 10,000 to 14,000 residences
• Gen III+ Passive Safety & Economics
• Triga® UZrH1.6
- enriched 19.75% U-235
• Fuel cycle 10 years
• Air or Water Cooled
Approx. 1.5 Acres
All information proprietary to RADIX
RADIX’’’’s MMR
RADIX
• Distributed power is critical to meet global demand
• Distributed systems = oil– Most expensive to operate
– Steep fuel premiums
– Significant CO2
output
– Counter to economic & national security objectives (N. America)
Net Electricity Generation by Region (trillion kilowatt hours)
World Oil Prices (in three cases)(2008 dollars per barrel)
All information proprietary to RADIX
Power Market Overview
RADIX
Diesel Electric Plants
• More than 350,000 diesel units globally
- Power range = 1-10 MW each
- More than 32,000 MW of total capacity
- Used for primary or critical back-up power
RADIX Addressable Market
• Initial entry - $4B/year
• At Maturity (2030) =
$153B globally / $90B U.S.
All information proprietary to RADIX
Target Markets
RADIX
0
500
1,000
1,500
2,000
0
40
80
120
160
200
0 5 10 15 20 25 30 35
Year
Wh
ole
P
ow
er
Co
st /
MW
H U
S$
An
nu
al
Pla
nt
Co
st M
illi
on
s U
S$
RADIX
Solid Lines (Left Axis) – Annual Plant Cost
Dashed Lines (Right Axis) – Wholesale Power Price $/MWH
Diesel - $4 Start Fuel Price
Diesel - $6 Start Fuel Price
Annual Ownership Costs (with 30Yr NPV) & Cost of Wholesale Power
10 MW RADIX vs. Diesel
NPV : $1.5B
NPV: $1B
NPV: $400M
Diesel costs based on 2011 market values of $4/gal and > $6/gal in remote areas. Assumes diesel price increases 5% peryear equivalent to a real year 30 price of $134 a barrel of oil.
All information proprietary to RADIX
Business Case
RADIX
All information proprietary to RADIX
With 10% Amortization Rate for
Nuclear Fuel and Equipment
A 10 MW diesel
electric generator
burns about 800
gallons of diesel
fuel per hour
(7,000,000 gallons
per year)
10 MW x 10 Year Cost of Operations
$0
$100
$200
$300
$400
$500
$600
RADIX Diesel @ $4.00 Diesel @ $6.00
Millions
Fuel
Other
Fixed O&M
Variable O&M
Capital Cost
RADIX
All information proprietary to RADIX
Leverage unique corporate historyLeverage unique corporate history
Provide compelling economic opportunities advantages for customers & investors
Provide compelling economic opportunities advantages for customers & investors
Turnkey 10MW unit cost = approx $120MTurnkey 10MW unit cost = approx $120M
Focus on core competencies to assemble market participants and contract with customers
Focus on core competencies to assemble market participants and contract with customers
Apply proven, readily licensable technology to develop and engineer MMR design
Apply proven, readily licensable technology to develop and engineer MMR design
Offer an MMR that is Affordable, Licensable & First-to-Market
RADIX Strategy
RADIX
Compare RADIX’’’’s Strategic Position Among SMRs• SMRs for on-grid power compete with natural gas; RADIX’’’’s MMR competes
with diesel because RADIX’’’’s target market is off-grid distributed power
• RADIX can outpace ““““Advanced”””” MMR designs
• RADIX is only MMR in North America able to work with DOD
• RADIX will be first to get U.S. regulatory approval – ““““Global Gold Standard””””
RADIX also
competes with
providers of
diesel, wind &
solar power
systems ranging
from 1-10MWe
All information proprietary to RADIX
SMR Competition
RADIX
• Unique Business Strategy
• Proven Management Team
• RADIX is Market Driven
– First-to-Market will Build Global Awareness & Opportunity
– $150B+ Market
• Gen III++ SMR/IPWR Safety
– Low Risk Due To Fast Timeline & Licensable Design
Conclusion
All information proprietary to RADIX