04 NuScale Awards Steam Generator Prototype Contract to Center for Advanced Nuclear Manufacturing, Operated by Concurrent Technologies Corporation
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1 Page 1 As we begin another year in the quest for commercialization of our innovative SMR technology, we not only find ourselves planning for the future, but also reflecting on some of the significant events of 27. John Hopkins In September, we announced that we had successfully submitted Part II of our Title XVII loan guarantee application to the U.S. Department of Energy (USDOE) under the Department s Advanced Nuclear Energy Projects Solicitation. We hosted our bi-annual NuScale Advisory Board (NuAB) and Technical Advisory Board (TAB) meetings in Corvallis, OR in October. Our NuAB currently consists of 29 member companies, including the owners and operators of nearly two-thirds of the U.S. operating fleet of commercial nuclear power plants. In conjunction with Concurrent Technologies Corporation, we recently announced the signing of the initial contract for the new Center for Advanced Nuclear Manufacturing (CANM) for prototype work for manufacturing our helical coil steam generators, a major component in the NuScale design. In January, we announced the NRC s approval of its electrical classification licensing topical report (LTR). The topical report demonstrates that NuScale s SMR design approach requires no electrical power to safely shut down. We ve received tremendous interest from both traditional news and social media over that announcement. We have a lot to be excited about as our journey to commercialization continues to accelerate, and I m confident we will achieve all of our goals in 28 and beyond changing our industry forever. Best, John Hopkins Chairman and CEO 28 UK The New Year brought more than just the end of 27; it also saw the end of the UK SMR Competition. At the Nuclear Industry Association s annual flagship Nuclear 27 conference in early December, Energy Minister Richard Harrington, MP, announced a number of policy decisions relating to civil nuclear. With respect to SMRs, the government published its industrial strategy and nuclear sector deal, issued the long awaited SMR Techno-Economic Assessment (TEA), and announced that the SMR Competition would end in its current form, to be replaced by a framework looking at ways to accelerate access to finance for SMR development projects. The government also launched a separate work stream being managed by the Department for Business, Energy and Industrial Strategy (BEIS) to consider how to bring forward Advanced Modular Reactors (AMR) in the UK; BEIS is defining AMRs as nuclear technologies not based on light water designs and as such, NuScale is not eligible to participate in this work stream. The government has set aside a total of 44 million to be used for funding opportunities over a multi-year two phase program for AMR technologies to progress feasibility studies. To advance BEIS s UK SMR agenda, Minister Harrington also announced the formation of an expert financial investment taskforce to develop solutions to overcome the barriers to financing SMR energy projects in the UK. At the request of BEIS, NuScale will be supporting this effort, and we have also been invited by BEIS to participate in seminars and private one-on-one engagement sessions with the Office of Nuclear Regulation (ONR) and the Environmental Agency (EA) with respect to the UK s Generic Design Assessment process. A cabinet reshuffle and Brexit continue to dominate headlines; but it is clear that the machinery of government continues to operate, and civil servants are forging ahead. Against this backdrop, NuScale continues its efforts to bring forward a UK SMR venture including continuing its outreach with Government and other power companies and developers to garner further interest in a NuScale SMR deployment project in the UK. Our message to the UK government continues to be clear: a UK-U.S. partnership on SMRs will see Modules rolling off production lines in the U.S. and UK factories and generating power for homes by the mid-20s. This will bring major employment and growth opportunities and transform the U.S. and UK into a hub for exporting SMRs into the global market; providing scalable advanced nuclear technology for the production of electricity, heat, and water to improve the quality of life for people around the world. We have worked hard over the past few years, increasing our brand recognition in the UK, and positioning our mature program such that we are now considered by many to be the leading near-term deployable SMR for the UK - 28 is already shaping up to be a busy year. 28 UK s First-of-a-Kind Submits
2 Page 2 U.S. Nuclear Regulators Approve s First-of-a-Kind Safety Design Approach Earlier this month, the U.S. Nuclear Regulatory Commission (NRC) has concluded that application of s novel safety design approach eliminates the need for class 1E power for its small modular reactor (SMR). Class 1E is the regulatory standard set for the design of safety-related nuclear power plant electrical systems. In its newly released Safety Evaluation Report, the NRC approves s Safety Classification of Passive Nuclear Power Plant Electrical Systems Licensing Topical Report, where the company established the bases of how a design can be safe without reliance on any safety-related electrical power. Currently, all nuclear plants in the U.S. are required to have class 1E power supplies to ensure safety. The NRC has limited its approval to only s design. NRC s conclusion is a key step in the review process of NuScale s Power Module Design Certification Application (DCA). The NRC s review of NuScale s DCA began March 27 and the NRC s final report approving the design is expected to be complete by September 20. Once approved, certified NuScale SMRs will be available to domestic customers to be licensed for construction and operation. is the only company to have submitted an SMR DCA. Regulatory approval will support its first U.S. deployment by the mid 20 s, further establishing NuScale as the leader in SMR technology. WE APPRECIATE THE NRC STAFF S FOCUSED AND THOROUGH ANALYSIS OF THE SAFETY AND RELIABILITY OUR SMR DESIGN OFFERS AND FOR ISSUING THEIR FINDINGS SO EARLY IN OUR DCA REVIEW, OUR APPROACH TO SAFETY IS A FIRST IN THE NUCLEAR INDUSTRY AND EXEMPLIFIES THE INHERENT SAFETY OF NUSCALE S SMR. THIS VALIDATION BRINGS US ANOTHER STEP CLOSER TO ACHIEVING OUR MISSION OF DELIVERING SCALABLE ADVANCED NUCLEAR TECHNOLOGY TO PRODUCE THE ELECTRICITY, PROCESS HEAT, AND CLEAN WATER NEEDED TO IMPROVE THE QUALITY OF LIFE FOR PEOPLE AROUND THE WORLD. DALE ATKINSON, CHIEF OPERATING OFFICER AND CHIEF NUCLEAR OFFICER 28 UK s First-of-a-Kind Submits
3 Page 3 NuScale Awards Steam Generator Prototype Contract to Center for Advanced Nuclear Manufacturing, Operated by Concurrent Technologies Corporation, LLC (NuScale) and Concurrent Technologies Corporation (CTC) announced the signing of the initial contract for the new Center for Advanced Nuclear Manufacturing (CANM), operated by CTC. The contract covers prototype work for manufacturing NuScale s helical coil steam generators, a major component in the NuScale design, now under certification review by the U.S. Nuclear Regulatory Commission. The concept for CANM, located in Johnstown, Pa., was endorsed by a working group of the U.S. Nuclear Infrastructure Council (NIC) as an advanced manufacturing research center. Through a search for the right organization to operate CANM, CTC emerged as the consensus choice based on a 30-year track record in advanced manufacturing. CANM officially opened during a ribbon-cutting ceremony on August 24, 27. WE HAVE BEEN MAKING GREAT PROGRESS WITH THE NETWORK OF COMPANIES AND FACILITIES THAT WILL BE NEEDED TO MANUFACTURE THE NUSCALE POWER MODULE TM, THE CENTER S MISSION TO APPLY ADVANCED MANUFACTURING APPROACHES TO OUR ADVANCED SMR COMPONENTS FILLS AN IMPORTANT GAP NEEDED TO TRANSITION ADVANCED NUCLEAR ENERGY AND MATERIALS RESEARCH AND DEVELOPMENT TO THE SHOP FLOOR, COST EFFECTIVELY AND AT THE HIGHEST QUALITY STANDARDS. DALE ATKINSON, CHIEF OPERATING OFFICER AND CHIEF NUCLEAR OFFICER CTC is an independent, nonprofit, applied scientific research and development professional services organization. Since its inception in 1987, CTC has gained extensive expertise in operating national centers of excellence. The company has a proven track record of solving first-of-a-kind manufacturing issues and successfully transitioning solutions to end-users. CANM will leverage a significant investment by the U.S. Government in CTC s facilities, equipment, personnel and vast network of manufacturing technology specialists. In the first phase of this multi-phase contract, CTC will demonstrate the manufacture of straight tubes of the maximum required length, demonstrate tube bending to prototypic final helical geometry with transition bends, and demonstrate helical tube bundle assembly. In October, hosted its biannual NuScale Advisory Board (NuAB) and Technical Advisory Board (TAB) meetings in Corvallis, OR. There are 29 NuAB member companies, including the owners and operators of nearly two-thirds of the U.S. operating fleet of commercial nuclear power plants. Twice each year, NuAB members gather to share progress, challenges, solutions and successes in the development, licensing and commercialization of the game-changing NuScale technology. 28 UK s First-of-a-Kind Submits
4 Page 4 Highlights of the meeting included updates on the Module TM refueling sequence, cyber security, the Utah Associated Municipal Power Systems (UAMPS) Carbon- Free Power Project (CFPP), and supply chain activities. NuScale s TAB members joined NuAB during the first day of meetings. THE NRC ARE PAVING THE WAY FOR WHAT WILL FOLLOW. DR. PETER B. LYONS, TAB CHAIR, FORMER DEPARTMENT OF ENERGY ASSISTANT SECRETARY FOR NUCLEAR ENERGY technologies that avoid, reduce or sequester anthropogenic emission of greenhouse gases. The USDOE Loan Guarantee Program was established under Title XVII of the Energy Policy Act of 20, and has $12.5 billion in loan guarantee authority for Advanced Nuclear Energy Projects. THIS APPLICATION IS ANOTHER STEP IN OUR SUCCESSFUL PARTNERSHIP WITH THE DEPARTMENT OF ENERGY, WITH THEIR ONGOING SUPPORT, WE ARE WELL ALONG THE PATH TO BRINGING THIS INNOVATIVE DESIGN TO MARKET, CREATING JOBS AND PRESERVING AMERICAN LEADERSHIP IN NUCLEAR TECHNOLOGY. s TAB Members meet in Corvallis, OR. JOHN HOPKINS, CHAIRMAN AND CEO SMR S ARE A VITAL PART OF THE FUTURE OF THE U.S. NUCLEAR ENERGY INDUSTRY. LIGHT WATER SMR S PROVIDE SCALABLE OPTIONS FOR APPLICATIONS WHERE LARGE PASSIVE GIGAWATT PLANTS ARE SIMPLY TOO MUCH FOR THE PROSPECTIVE OWNER TO UTILIZE OR FINANCE, AND ARE, IN ESSENCE, THE BRIDGE TO OTHER ADVANCED REACTORS IN THE DISTANT FUTURE. NUSCALE S INNOVATIVE LWR DESIGN AND ITS INTERACTIONS WITH Submits Part II of DOE Loan announced in September that the company has successfully submitted Part II of its Title XVII loan guarantee application to the U.S. Department of Energy (USDOE) under the Department s Advanced Nuclear Energy Projects Solicitation. Under this solicitation, USDOE seeks applications for loan guarantees to finance projects located in the United States that employ innovative advanced nuclear energy Last fall, NuScale announced submission of the Design Certification Application to the U.S. Nuclear Regulatory Commission. That application, now under review, was funded in part under the USDOE Licensing and Technical Support cost-share program. If approved, the NuScale loan guarantee will support construction of the Carbon Free Power Project, the first Small Modular Reactor (SMR) to be built in the United States. The Utah Associated Municipal Power System (UAMPS) will own the plant, with planning underway for a site at the Idaho National Laboratory, near Idaho Falls, Idaho. 28 UK s First-of-a-Kind Submits
5 Page 5 FOR THE CARBON FREE POWER PROJECT TO BE SUCCESSFUL, WE NEED TO BE COMPETITIVE. THIS LOAN GUARANTEE, ALONG WITH OTHER GOVERNMENT SUPPORT, ALLOWS US TO BE FULLY COMPETITIVE WITH NATURAL GAS WITHOUT ADDING ANY GREENHOUSE GAS EMISSIONS. DOUG HUNTER, CEO OF UAMPS Prior to working at Westinghouse, Langdon was Site Vice President at the Nine Mile Point Nuclear Plant for Constellation Energy Nuclear Group; Plant Manager at the Sequoyah Nuclear Plant for Tennessee Valley Authority; Senior Director Operations, Operations Service Director and Outage Manager at the Diablo Canyon Power Plant; Work Management Director and Nuclear Oversight Manager at the Peach Bottom Atomic Power Station and Maintenance Services Manager at the Dresden Station for Exelon Nuclear. Follow us on social media Ken Langdon joined the company in November as Vice President of Operations and Plant Services. Langdon comes Ken Langdon to NuScale from Westinghouse where he held the positions of Vice President and Deputy Project Director at V.C. Summer, as well as Vice President of Operational Readiness in Shanghai, China for the first two AP1000 plants in the world. Our Locations Headquarters 6650 SW Redwood Lane,. Suite 210 Portland, OR Phone: Corvallis Office 1100 NE Circle Blvd., Suite 200 Corvallis, OR Phone: Charlotte Office 2815 Coliseum Centre Drive., Suite 230 Charlotte NC Phone: Rockville Office Woodglen Ave., Suite 2 Rockville, MD Phone: Arlington Office 2300 Clarendon Blvd., Suite 1110 Arlington, VA 222 Phone: Richland Office 1933 Jadwin Ave., Suite 130 Richland, WA Phone: London Office 1 st Floor, Portland House., Bressenden Place London SW1E 5BH, United Kingdom Phone: +44 (0) UK s First-of-a-Kind Submits
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