jefferson city, mo – march 31,...

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 –


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



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



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



March 31, 2011


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


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)


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


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.


AMEREN MISSOURI

Ameren Missouri (orange)1.2 million Electric customers126,000 Natural Gas customers500 communities served24,000 square mile territory4,400 Employees


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


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


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


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


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.


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.


March 31, 2011

AREVA is Clean Energy and American Jobs

Mark MaranoSVP, New Plant Build

Operations -

USAAREVA, Inc.


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



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



March 31, 2011

An Integrated Model: a Key to the Group’s Success



March 31, 2011

Increase in Market Share



March 31, 2011

95% of Nuclear Utilities are AREVA Customers



March 31, 2011

Very Strong Prospects



March 31, 2011

Capacity Developments



March 31, 2011

Developing Engineering Platforms and Intensifying R&D Efforts



March 31, 2011

A Diversified Mining Portfolio in 2010 Production up 30% vs. 2001



March 31, 2011

A Renewed Industrial Tool Using the Best Technologies



March 31, 2011

Range Expansion



March 31, 2011

Generation III: Learning from Four Events



March 31, 2011

A Range of Reactors Adapted to Customer’s Needs

Key elements of the supply chain are under AREVA control



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



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)



March 31, 2011

Fukushima Dai-ichi Situation Initial Reactions in Europe



March 31, 2011

Fukushima Dai-ichi Situation Initial Reactions in the Americas



March 31, 2011

Fukushima Dai-ichi Situation Initial Reactions in Asia



March 31, 2011

AREVA is Gaining Advanced Reactor Construction Experience in Europe & China

Taishan 1&2, China Flamanville 3, France

Olkiluoto 3, Finland



March 31, 2011

© EDF

Lessons Learned from 4 EPR Reactors under Construction in Different Countries



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)*



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



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



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

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1957

1958

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1960

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1991

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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



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

•

•



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



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



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



March 31, 2011

Thanks to our generous sponsors

AREVA Renewable Energy Overview

Tom DePontyRenewable Energy Business GroupAREVA, Inc.


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



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.



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



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



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



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:



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



March 31, 2011


March 31, 2011

Eagle Rock Project Update

Mike FrenchAREVA Enrichment Services


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



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



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



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



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



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



March 31, 2011

Challenges

2010 2011 2012 2013 2014

3090

260310

« Green Field » Site Licensing & Construction

HiringHiringFinancing



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)



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



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



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



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



March 31, 2011


March 31, 2011

AREVA Integrated Procurement Process

Frank BarillaEREF Procurement ManagerAREVA, Inc.


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



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



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



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



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



March 31, 2011

Identifying and Building Partnerships with Suppliers



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



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



March 31, 2011

Autoclaves

Vent Treatment Skids

Precision Weighing System



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



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



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)



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



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



March 31, 2011

Eagle Rock Core Process Projected RFPs to be Issued



March 31, 2011

How to contact AREVA Procurement

Website: http://suppliers.areva.com



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



March 31, 2011


March 31, 2011

An AREVA Clean Energy Park: What is it and why now?

Matt DrydenVP, Business Development -

Strategic InitiativesAREVA, Inc.


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



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



March 31, 2011

Cooperative Benefits for Business, Government and Community



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



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



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



March 31, 2011


March 31, 2011

Next Steps

Thomas M. Williamson, P.E.VP, New Build Business DevelopmentAREVA, Inc.


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



March 31, 2011

AREVA Clean Energy Supplier Network



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



March 31, 2011

Join the Team and Get Involved!


March 31, 2011

jefferson city, mo – march 31,...

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