Local Supply Chain Development

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1 GE Hitachi Nuclear Energy International Local Supply Chain Development Douglas McDonald Vice President, Africa and Middle East NPP Sales

2 GE Hitachi Nuclear Alliance Wilmington, NC Tokyo, Japan Nuclear Power Plants, ABWR, ESBWR, and PRISM Nuclear Services Advanced Programs Recycling, Isotopes Wilmington, NC Uranium Enrichment Third Generation Technology Wilmington, NC Yokosuka, Japan Nuclear Fuel Fabrication.BWR and CANDU CANDU Services Fuel Engineering and Support Services Peterborough, ON Canada

3 World Wide Presence Dresden 1 USA Dodewaard - Netherlands KKM - Switzerland K6/K7 - Japan Santa María de Garoña - Spain KRB - Germany Lungmen - Taiwan Vallecitos USA Laguna Verde - Mexico Garigliano - Italy Tarapur 1&2 India

4 ABWR ESBWR Best in class CDF The only advanced Gen III technology in operation today Licensed in 3 countries 4 ABWRs in operation today 4 ABWRs under construction Industry best CDF Generation III+ design further leverages ABWR innovations Natural circulation principles Passive safety design Completing NRC certification Strong global interest Safest plant designs based on the industry standard for plant safety - CDF

5 Advanced construction Kashiwazaki-Kariwa 6/7 ABWR In Operation Under Construction In Planning 4 Units 4 Units 9 Units Ohma ABWR COD 1996/1997 Shika-2 ABWR Higashidori-1 Under Construction COD 11/2014 (planned) Shimane-3 ABWR Japan COD 2006 Hamaoka-5 ABWR Kaminoseki-1 Under Construction COD 12/2011 (planned) Lungmen-1/2 ABWR COD 2005 : BWR Power Plant Site Taiwan Copyright 2011 Copyright GE Hitachi 2011 Nuclear GE Hitachi Energy Nuclear International Energy International - All rights reserved - All rights reserved Under Construction COD 2011 (planned)

6 Confidence for investors and regulators Predictable construction schedule and cost Highest construction safety and quality high quality and reliable supply chain Simplified design

7 Expanding the role of new build suppliers Accurate cost and schedule estimations Collaboration on reducing cost and schedule Design engineering support Supplier driven solutions More than just a supplier. New build suppliers need to be close partners

8 Establishing BWR technology in RSA Operator Training and Qualification Training management and engineers on BWR technology and operating practices Design training by GEH Operational training by a BWR utility Complete licensed operator courses Labor Force Training & Qualification Training the construction force to meet nuclear requirements Led by EPC firm with nuclear construction experience Incorporate into the local union & trade school curriculum Skilled workers are qualified prior to entering jobsite Expanding the local universities nuclear technical programs New Construction Suppliers Selecting and qualifying local equipment suppliers Completion of audits by technology supplier demonstrating quality capabilities Management commitment to quality requirements Ability to meet N-Stamp requirements

9 Keys to becoming a successful supplier Integrity Safety Environmentally Responsible Quality Fully Understand the GEH s Quality, Design Engineering, Customer & Commercial requirements Ask questions Challenge the Status Quo Be the best of the best

10 Opportunities for new build supply Nuclear Reactor Pressure Vessel Reactor Internals Mechanical Steam Turbine Condenser Heat Exchangers Pumps Valves Electrical Generator Transformers Switchgear Equip. Modules Nuclear & non-nuclear Constructio n Concrete Rebar Buildings Doors & Windows Piping Fencing Sand & Gravel Chemical Radioactive Waste Nitrogen & CO2 Storage Misc. Fire Protection Systems HVAC Systems Cranes & Hoists Elevators Everything from pressure vessels to concrete

11 Establishing BWR Technology in ZA Operator Training and Qualification Training management and engineers on BWR technology and operating practices Design training by GEH Operational training by a BWR utility Complete licensed operator courses Labor Force Training and Qualification Training the construction force to meet nuclear requirements Led by EPC firm with nuclear construction experience Incorporate into the local union and trade school curriculum Skilled workers are qualified prior to entering jobsite Expanding the local universities nuclear technical programs New Construction Suppliers Selecting and qualifying local equipment suppliers Completion of audits by technology supplier demonstrating quality capabilities Management commitment to quality requirements Ability to meet N-Stamp requirement

12 Modularization On-site work reduction and improved quality Copyright 2011 GE Hitachi Nuclear Energy - All rights reserved

13 Module supply Off-gas Equipment Module CUW Heat Exchanger Module Condensate Demineralizer Module Equipment and building modules critical to meeting schedule and cost of new build Modules can be built in a local (on or offsite) facility or a dedicated module factory Modular plan developed based on local supply requirements and availability Requires a substantial independent labor force for assembly

14 New suppliers Typical Nuclear Island, Turbine Island and Yard Scope ESBWR Standard Site Plan FO TC CT SY PH CO2 RAT AT RAT AT MT ST EB TB CS AB RW FWS FWS CB RB DS SB/ OSC ADB FB WD HM AD Nuclear Island: N-Stamp Required Turbine Island: ASME Code Requirements Service Water Cooling Towers HY NT SF/ WT Nuclear Island MS Turbine Island CM WH Yard Yard: Industry Standard Practices CT STP (CT Site Specific) GEH Proprietary Local and global suppliers critical for 1 01Feb2010 new build s success

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