1Proprietary and Confidential

New Jersey Clean Air CouncilPublic HearingApril 1, 2009

Jeff HalfingerBabcock & Wilcox

2Proprietary and Confidential

A Shifting Landscape

• Increasing construction cost and scheduleSkilled field craft laborNSSS component supply chain

• Tightening capital marketsGovernment loan-guaranteesCapital cost and funding access

• Changing geo-political environmentCarbon-constrained regulatory frameworkFossil-fueled power generation costsEnergy independence and security

Modular reactors are NOT:

Modular Reactors are NOT:

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5Proprietary and Confidential

MWe

10

125

1000

ImprovedConstruction

Schedule

ProjectFinancing

Design & Licensing

Risk

Base LoadImpact

The Drivers Behind a Modular Reactor

NSSSsupply chain

Cost Efficiency

Real-world issues are shaping the optimal size.

6Proprietary and Confidential

Solution: B&W’s mPowerTM Reactor Modular Approach

• Flexible and scalable to customer requirements Integrated reactor modules Multi-unit (1-10+) plant 100 percent shop manufactured Rail-shippable

• Reduced licensing risk, construction cost, & schedule Evolved PWR-type concepts Passive safety No on-site NSSS construction Three years to start-up

• Integrated and simplified NSSS with fewer components Internal helical coil SG No need for safety-grade backup power No external pressurizer Conventional core and standard fuel

• Simplified operations and maintenance Four plus-year core design Sequential partial-plant outages Standardized BOP

Lower risk and cost solution…

7Proprietary and Confidential

• 125 Mwe integral reactor

• Internal steam generator

• Standard PWR fuel

• Large primary coolant inventory

• SA508 RPV with SS clad

• Small penetrations into Primary Coolant System at TOP of RPV

• Diverse, redundant internal CRDMs

• No boron in primary coolant

B&W’s mPower Reactor

Steam Generator

Reactor Primary Circulation

Nuclear Core

Feedwater Inlet

Steam Outlet

Circulators

Internal CRDM

8Proprietary and Confidential

Decay heat removal heat sink

Pressure Suppression

Spent fuel pool

Module

B&W’s mPower Reactor Features

• Underground containment

• Used fuel stored in spent fuel pool for life

• Natural circulation decay heat removal system for emergency/refueling cooling

• Primary coolant treatment system within containment

• Steam generator inspection within containment

Independent, self contained modules

9Proprietary and Confidential

The B&W mPower Plant Design Features•Prefabricated components, Streamlined construction

NSSSSteam turbineControl room containment

•Limited Module Interaction Independent controls“Local” responses minimizes interaction

•Underground reactor building, Enhanced safetyMissile penetrationsSeismic advantagesNon-proliferation support

•ReliableSequential outages

•Minimize options, Cost effectiveCondenser cooling (air or water)Seismic design (2 zones?)Number of modules

500 MWe Plant Using 125 MWe Modules

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• Compact footprint• Self-contained• Location flexibility

1900 Ft1550 Ft

Adaptability to Government Installations

•Small compact standardized design•Passively safe•Scalable•Long refueling cycle 5+ years at <5% enriched U235

~10 years at <10% enriched U235

•Built in the USAHeavy forgings from Lehigh Heavy ForgeComponent fabrication at B&W’s Mt. Vernon, Indiana facilityFuel fabrication at B&W’s Lynchburg, VA facilityModular construction techniquesTransportable size

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•Potential for Co-Generation SteamDesalinationElectrolysis for hydrogen and oxygen production

•Fischer-Tropsch?

•Sell Excess Electricity to Secondary Market

Adaptability to Government Installations

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Public-Private Partnerships•To be Successful Program Must:Select appropriate sites for reactor deployments•Critical missions•Strategic offensive and defensive capabilities•High energy costs and usage

−Production tax credits and loan guarantees could make nuclear power more competitive at more sites

Develop a long-term land lease agreement (EUL?)•Win-Win arrangement for Air Force and

commercial developerDevelop a long-term power purchase agreement •Mechanism for third-party financing•Minimizes market risks for initial units

14Proprietary and Confidential

Mt. Vernon, IN

Lynchburg, VAMt. Vernon, IN

B&W Supply Chain of Proven Technology

• Domestic Forgings or Rolled Plate • Component fabrication

B&W’s Mt. Vernon, Indiana facility

• Fuel fabrication B&W’s Lynchburg, VA facility

• Control rod drive fabrication B&W’s Euclid facility

• Modular construction capabilities McDermott’s Morgan City

Vertical Integration within B&W

15Proprietary and Confidential

First Plant Deployment

2008 2009 2010 2011 2012 2013 2014 2015 2016

Define Functional Requirements

Concept Definition

Preliminary Design

Prepare DCDLatest submittal

NRC Review

Final Design

Prepare COL Application

NRC Review

Long-Lead Procurement

Construction

ITAAC

2017 2018

NRC review paces project implementation

16Proprietary and Confidential

B&W mPower Benefits•Sized to customer requirements

•Competitive cost

•Reduced risk – minimum site work and supply chain

•Shorter schedule – three-year construction

•Proven approach – evolved PWR technology

•Optimized O&M – four plus-year refuel cycle with partial outages

• Improved safety, safeguards, and security