US Small Modular Reactor Program

Richard ReisterOffice of Nuclear Energy

U.S. Department of Energy

IAEA TWG-LWR MeetingJuly 2011

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SMR Interest

Value Proposition– Enhanced safety and security – Reduced capital cost makes nuclear energy feasible for more utilities– Shorter construction schedules due to modular construction – Improved quality due to replication in factory-setting– Meets electric demand growth incrementally

Potential Markets– Replacement/repowering aging or costly fossil plants– Air cooling, reduced water usage & reduced BOP acreage expands

potential siting options – Non-electrical (process heat/desalination) customers – Co-location with industrial and district heating applications– International markets

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Design Features that Improve LWR-based SMR Safety

LWR SMR designs share a common set of designprinciples to enhance plant safety and robustness• Incorporation of primary system components into a single vessel• Smaller decay heat• More effective decay heat removal• Increased water inventory ratio in the primary reactor vessel• Increased pressurizer volume ratio• Vessel and component layouts that facilitate natural convection

cooling of the core and vessel• Below-grade construction of the reactor vessel and spent fuel

storage pool• Enhanced resistance to seismic events

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Challenges

“Typical” nuclear company:– $13 B per year revenues– $13 B outstanding debt– $40 B assets– $17 B market capitalization

Large nuclear power plant a difficult challenge (~$10 B)

Moody’s 2009:– “We view new nuclear generation plants as a ‘bet the farm’ endeavor for

most companies, due to the size of the investment and length of time needed to build a nuclear power facility.”

– Utilities should consider partnering with larger energy companies

Capital Cost Barrier for Large Plants: Market Capitalization Too Low

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“Complexity” Versus “Simplicity”

Transport SMR to Site“Simplicity”

On-site Construction – “Complexity”

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Potential for Learning

Navy industrial experience part of SMR business case– Assembly line replication

optimizes cost, schedule, and quality through greater standardization of components and processes

– Analysis of shipbuilding validates “nth” of a kind optimization

– Increased skilled workforce retention with order backlog and diverse jobs

– Economic learning through replication

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International Interest/Market Drivers

Provide a solution to markets that have smaller electrical demand and infrastructure– Limited investment capacity to build new or upgrade infrastructure to

support larger LWR designs Responds to markets where electricity demand is projected to

increase incrementally– Power solution for smaller locations that are experiencing population

and/or electricity growth– Generation capacity added incrementally to respond to increased

demand and funding availability Modular construction would overcome skilled workforce issues

– SMRs are modularly fabricated and delivered for assembly Require less capital outlay than for larger plants

– Revenue from operation of first modules could finance subsequent modules

Provide clean, base-load electricity to markets responding to climate and environmental goals

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Small Modular Reactors

Well Understood Technology– LWR based designs– Standard <5% UO2 fuel– Regulatory & operating

experience– Deployment in10 years (2020)

Near-Term LWR Designs

Westinghouse

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Small Modular Reactors

New Innovative Technologies– Mostly non-LWR based designs– Deployment 15-20 years

Broader Applications– Process heat applications– Transportable/mobile– Long-lived cores

Longer-Term SMRs

GE PRISM Hyperion

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Small Modular Reactor Program

DOE Small Modular Reactor Program– Enable the deployment of a fleet of SMRs in the United States– SMR Program is a new start program for FY 2011– Structured to address the need to accelerate the deployment of mature SMR

designs based on LWR technology– Conduct needed R&D activities to advance the understanding and

demonstration of innovative reactor technologies and concepts

SMR Program Elements:– LWR SMR Licensing Technical Support ($450M/5-year program) Public-Private Partnerships for design certification & licensing activities

– SMR Advanced Concepts RD&D (~ $35M/per year) Conduct R&D on innovative technologies/systems/components and support generic

licensing work Support nuclear codes & standards development activities Collaborate with NRC on SMR licensing framework to support SMR

commercialization

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Emphasis on Safety and Security

For the public-private partnerships that would accelerate licensing of new LW-based SMR designs• Assure preference is given to designs offering highest resistance to

internal and external upsetsFor the advanced SMR R&D program – place highest priority on

developing technologies, capabilities, and designs that further enhance and demonstrate plant safety and resilience, such as:• Reliability of passive safety systems that don’t require backup electrical

generators.• Seismic performance of below-grade reactor systems and coupling to

balance of plant systems• Common cause failure modes in multi-module plants• Fuels, materials, and sensors that are highly resistant to extreme

conditions

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Projected 2020 Electricity Demand: 1.3 M MWhr ~ 170 MW

TVA/Oak Ridge Business ModelUSG as First Users

20 MW

24 MW

34 MW

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Summary

Supports energy security, climate change mitigation, & economic growth goals

Regain technical leadership and innovation Improve U.S. manufacturing capability and supply chain

infrastructure Create high-quality manufacturing, construction, and

engineering jobs Become global leader in SMR technology based on mature

nuclear infrastructure and NRC certified designs

Challenge to SMR fleet deployment:Prove economy of mass production