Collaboration in Overseas Projects with US-Japan Nuclear Partnership

Transcription

1 The US-Japan Roundtable Annual Washington Conference Collaboration in Overseas Projects with US-Japan Nuclear Partnership ABWR-with Bird s Eye Hiroto Uozumi, Chairman Hitachi-GE Nuclear Energy, Ltd. December 14,

2 Contents 1. Hitachi and HGNE s Activities 2. Collaboration with GEH 3. UK Horizon Project Overview: Collaborative Work under way with EPC Partners Hitachi-GE Nuclear Energy, Ltd All rights reserved. 2

3 1. Hitachi and HGNE s Activities 3

4 1.1 Hitachi s Corporate Foundation Founded in 1910 as a machine repair shop at Kuhara Mining Company in Hitachi City, Ibaraki Prefecture, Japan (Incorporated in 1920) Values (Hitachi Founding Spirit): Harmony, Sincerity, Pioneering Spirit Mission: Contribute to society through the development of superior, original technology and products Ibaraki Prefecture Founder Namihei Odaira Original repair shop in Ibaraki (1910) 4

5 1.2 Segment Constitution (FY2016) Corporate Name Hitachi, Ltd. Founded 1910 Headquarters 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan Revenues Adjusted operating income *1 EBIT *2 (Earnings before interest and taxes) Net income attributable to Hitachi, Ltd. stockholders Number of consolidated employees Number of Companies Number of Shareholders 9,162.2 billion yen (FY2016) billion yen (FY2016) 475.1billion yen (FY2016) 231.2billion yen (FY2016) 303,887 (As of end of FY2016) 864 (As of end of FY2016) 381,374 (As of end of FY2016) *1 [Adjusted operating income] = [Revenues] [Cost of sales] [Selling, general and administrative expenses] *2 EBIT is presented as income from continuing operations, before income taxes less interest income Hitachi-GE plus interest Nuclear charges. Energy, Ltd All rights reserved. 5

6 1.3 Segment Constitution (FY2016) Financial Services *2 Others *1 Smart Life & Ecofriendly Systems 2% 6% 6% 20% Information & Telecommunication Systems Social Infrastructure & Industrial Systems* * Nuclear is a part of this section 10% Revenues Automotive Systems High Functional Materials & Components 14% 9,162.2 billion yen 7% 12% 23% Electronic Systems & Equipment *3 Construction Machinery *1: Hitachi Transport System, Ltd. which is included in "Others" became equity-methods af f iliate of Hitachi, Ltd. on May 19, *2: Hitachi Capital Corporation which constitute of "Financial Services" became equity-methods af f iliate of Hitachi, Ltd. on October 3, *3: Hitachi Koki Co., Ltd. which is included in "Electronic Systems & Equipment " became consolidated subsidiary of HK Holdings Co., Ltd. on May 29,

7 1.4 Global Expansion* (FY2016) Europe Revenues: billion yen Number of companies: 133 Number of employees: 14 thousand China Revenues: billion yen Number of companies: 140 Number of employees: 44 thousand Japan North America Revenues: 1,144.0 billion yen Number of companies: 97 Number of employees: 20 thousand Revenues: 4,757.6 billion yen Number of companies: 208 Number of employees: 169 thousand Asia(incl. China) Revenues: 1,860.7 billion yen Number of companies: 325 Number of employees: 86 thousand Other Areas Japan Outside Japan Total Revenues: 4,757.6 billion yen/number of companies: 208/Number of employees: 169 thousand Revenues: 4,404.5 billion yen/number of companies: 656/Number of employees: 134 thousand Revenues:9,162.2 billion yen/number of companies: 864/Number of employees: 303 thousand * Revenues: FY2016, Number of companies and employees: As of end of FY2016 7

8 .5 Nuclear: Major Factories and Products Hitachi-GE Nuclear Energy, Ltd. Hitachi Tokyo R & D Registered Office/Hitachi Works Akihabara Daibiru Hitachi Research Laboratory (Center for Technology Innovation) Hitachi, Ltd. Production Rinkai Works Hitachi Works Kure Works Power Information & Control Systems Div Machinery Systems Div. Reactor Internals Turbine Generator Reactor Pressure Vessel Mitsubishi Hitachi Power Systems, Ltd. Main Control System Reactor Internal Pump Hitachi, Ltd. Infrastructure Systems Company 8

9 1.6 Construction Experience in Japan (GWe) Domestic Production Phase TSURUGA-1* * COOPERATIVE CONSTRUCTION Improvement and Standardization phase Continuous experience for about 50 years Proven performance for ABWR plant construction Keeping top talent SHIMANE - 1 FUKUSHIMA I -1* (ABWR: Advanced Boiling Water Reactor) HGNE ABWR Supply Scope Plant N/I T/I Ohma (Full MOX) Shimane-3 Shika-2 Hamaoka-5 Kashiwazaki-7 Kashiwazaki-6 HAMAOKA - 3* FUKUSHIMA II - 4 FUKUSHIMA II - 2 HAMAOKA - 2* TOKAI - 2* FUKUSHIMA Ⅰ-4 HAMAOKA - 1* Advanced BWR phase KASHIWAZAKI-KARIWA 7* KASHIWAZAKI-KARIWA 6* KASHIWAZAKI-KARIWA 4 HAMAOKA - 4* SHIKA - 2 HAMAOKA - 5* ONAGAWA - 3* SHIKA - 1 KASHIWAZAKI-KARIWA - 5 SHIMANE - 2 Construction Start SHIMANE HIGASHIDORI-1* 2010 MWe OHMA * under construction 9

10 1.7 Manufacturing of Key Components High-quality manufacturing supported by reliable technology and skilled workers Reactor Pressure Vessel Core Shroud Top Guide Steam Dryer Moisture Separator Channel Box Control Rod Driving Mechanism Fuel Bundle Note: Fuel Bundle itself is fabricated by GNF Control Rod 10

11 1.8 Standardized Large Modules Reduce construction period by using module methods Upper Drywell RPV Top Slab Generator ( 約 650 ton) ( 約 820 ton) ( 約 490 ton) ( 約 420 ton) RCCV liner Upper Condenser ( 約 400 ton) ( 約 270 ton) RPV pedestal Base mat HCU Lower Condenser ( 約 410 ton) ( 約 460 ton) ( 約 270 ton) ( 約 260 ton) 11

12 1.9 BWR Plants Applied for Restart Assisting customers in taking safety measures Tokyo Electric Power Co. Kashiwazaki-Kariwa NPS #6 & 7 (#1~5) Hokuriku Electric Power Co. Shika NPS #2 (#1) Electric Power Development Co., Ltd Ohma NPS Tohoku Electric Power Co. Higashidouri NPS #1 Tokyo Electric Power Co. (Higashidouri NPS #1) Tohoku Electric Power Co. Onagawa NPS #2 (#1&3) Chugoku Electric Power Co. Shimane NPS #2 (#3) Japan Atomic Power Co. Tokai Daini NPS (# not yet applied) New NPP Chubu Electric Power Co. Hamaoka NPS #3 & 4 (#5) 12

13 1.10 Our Challenge to Fukushima Contribute through world-class cutting-edge technology, while prioritizing safety Inspection of interior of primary containment vessel (PCV) on the basement level Development of shape-changing robot to examine interior of primary containment vessel (PCV) *1 The first photographs of the PCV bottom were taken by the robot The probing robot was successfully recovered after inspection for the first time Development of fuel debris retrieval method using cutting-edge technology Verification of optimum method using full-scale mock-up Development of fuel debris retrieval technology utilizing a laser and water jet *3 Development of muscular robot for remote operation *1 Has excellent radiation resistance (driven by water pressure and springs), and can be applied to various remote operations such as pipe-cutting under high dose radiation 燃料デブリ *1 Developed as part of the w orks of the International Research Institute for Nuclear Decommissioning (IRID) w ith subsidies of decommissioning and contaminated w ater management funded by the Agency for Natural Resources and Energy *2 Experiment conducted w ith using plant facilities of Chugai Technos Corporation *3 Joint development w ith Japan Atomic Energy Agency and Sugino Machine Ltd. <When passing through guide pipe> Full-scale mock-up simulating lower structure inside PCV *2 <When running on grating> Shape-changing inspection robot Fiber laser Laser beam machining head Water jet Schematic diagram of retrieval technology Muscular robot 13

14 1.11 Decommissioning & Fuel Cycle Business Decommissioning Business Apply and develop Hitachi s experience, knowledge and technology to decommissioning, and support electric power companies from examination/planning stage. Conclude cooperation agreements with experienced overseas manufacturers to utilize their experience and knowledge (Concluded agreements: AREVA NC (France), Cavendish Nuclear (UK)) Dose assessment map of heat exchanger Simulation of dismantling of facilities within building Fuel cycle Business Provide customer support for early completion of the Rokkasho Reprocessing Plant Expand orders received for fuel transport and storage casks (Meet increasing need for interim storage facilities and dry storage facilities) Fuel transport and storage cask 14

15 2. Collaboration with GEH 15

16 2.1 Global Nuclear Alliance Hitachi Limited Hitachi equity share: 80.01% GE equity share: 19.99% Hitachi-GE Nuclear Energy (Established on July 1, 2007) General Electric Company Hitachi equity share: 40% GE equity share: 60% GE Hitachi Nuclear Energy (Established on June 4, 2007) Hitachi Strength Design Manufacturing Construction Integrated CAE Systems Design GE Strength Global supply chain Sales Licensing GE-Hitachi alliance based on nuclear business collaboration for 50 years Commit to deliver latest BWR technologies and services worldwide 16

17 2.2 Hitachi/GE Global Nuclear Alliance Expand business globally by deploying the experience gained in the UK business Focus on countries promoting construction of new nuclear power plants U.S. UK Horizon Project, conducting GDA for ABWR Poland Japan Mexico Saudi Arabia UAE India Malaysia Hitachi-GE Nuclear Energy, Hitachi, Ltd. Ltd All rights All rights reserved. reserved. 17

18 2.3 Close Communication between US and Japan 1) Close Communication between Japan and US Top Level Dialogue ay Corporate Management (between Hitachi and GE) Exchange of Board Members between HGNE and GEH Executive Level Conversation of Nuclear Business (between HGNE and GEH) 2) Expansion of collaboration to receive orders for new projects Collaboration on expansion of sales of ABWRs, Maintenance Services, and Engineering Activities all over the world as One Team Utilization of experience and knowhow gained in the UK to receive orders for the construction of new plants, say, Mexico and Poland Strengthening of cooperation between Sales, Engineering and Project-Management Teams of HGNE and GEH 18

19 2.4 Cooperative Approach Towards New Frontier PRISM by GEH (Discuss later) RBWR (Resource-renewable Boiling Water Reactor) Attracting global attention Engagement with the development for SMR, together with GEH and ARC Corporation Transuranic (TRU) elements can use as fuel Joint-study with three US Universities is now under progress Massachusetts Institute of Technology, University of Michigan, and University of California, Berkeley 19

20 3. UK Horizon Project Overview: Collaborative Work under way with EPC Partners 20

21 3.1 UK Nuclear New Build Program 3 NuGen [AP1000] (Toshiba100%)* 1 3.6G 1,200MW Class 3 *1: According to media, China CGN and Korean Electric Power are expressing their interest. New-build Operating Decommissioned 2 Horizon Wylfa Newydd[ABWR] (Hitachi 100%) 2.7G (Enough space for north side of the site) Horizon Oldbury [ABWR] (Hitachi 100%) 1,350MW Class 2 2.7G NNB Genco [EPR] (EdF 80%/CGN 20%) *3 3.2G? *3: Development Phase 1,350MW Class 2 1 NNB Genco [EPR] (EdF 66.5% *2 /CGN 33.5%) *2: Maintain Minimum 50%, and further dilution will be tried. 3.2G 1,600MW Class 2 JV Company [Hualong 1] *4 (EdF 33.5%/CGN 66.5%) *5? 21 21

22 3.2 Project Outline Two 1,350 MW class Advanced Boiling Water Reactors (ABWR) at Wylfa-Newydd site will be established first. Oldbury will follow. Plan is to start commercial operation of the 1st unit at Wylfa in the first half of the 2020s. Primary focus is to secure all key licences, permits, and commercial agreements for Wylfa by the end of 2018, as target. Pictures: Existing Magnox stations at Wylfa (Top) and Oldbury (Bottom), adjacent to Horizon s sites and Wylfa Newydd Site Image(Left) 22

23 3.3 Wylfa Newydd Site Layout I: Reactor Building II: Control Building III: Service Building IV: Heat Exchanger Building V: Turbine Building VI: Radwaste Building VII: Spent Fuel Storage Facility 23

24 3.4 Development of the Project Horizon Leadership Licensing Engineering, Procurement & Construction (EPC) Arrangements Operational Support Mr. Duncan Hawthorne joined Horizon as Chief Executive Officer from May 1, Completed step 3 of Generic Design Assessment (GDA) in October 2015 and now in Step 4, making steady process for completing by the end of Appointed a JV responsible for construction of Wylfa Newydd plant in May The newly created company, Menter Newydd, is a joint venture of Hitachi Nuclear Energy Europe, Bechtel Management Company and JGC Corporation. (Discussed Later) Horizon has tied with Japan Atomic Power (JAPC) and Excelon. These two companies formed a Joint venture JExcel for further assistance. (Discussed Later.) 24

25 3.5 Project Structure / Overall Scheme Third Party Investors HM Treasury Department of Business, Energy and Industrial Strategy Low Carbon Contracts Company Ltd. Power Purchase Agreement, and/or Trading CfD Power generator EPC Contract EPC 契約 Finance Operational Support Lenders Export Credit Agencies O&M Partner Power Market Menter Newydd: Bechtel, JGC and Hitachi Nuclear Energy Europe EPC Structure is followed on next page Technology Supplier Fuel Supplier Tier 2 Engineering et al Tier 2 Construction (Civil/Construction+Installation) Tier 2 Equipment Supply 土木建築工事 Engineering Provider CfD:Contract for Difference 25

26 3.6 Project Structure / EPC Contract Formation Menter Newydd Management Board Menter Nweydd Leadership Team Proven most advanced reactors(abwrs) Plant design, engineering and procurement of key equipment Track record of construction more than 20 BWRs over 50 years Participated in all ABWR projects in Japan Experience and knowhow backed by sophisticated technology One of the world s largest EPC contractor with an impressive track record in nuclear energy Electrical construction *1, civil engineering and construction Has worked on the construction of more than 150 nuclear power stations worldwide More than 60 years construction experience in the U.K. Knowledge of design & construction of power plants, refineries, railways, etc. Excellent project management International procurement, process management, radioactive waste facilities - related Extensive experience of managing more than 20,000 projects in 80 countries worldwide Outstanding engineering technology and expert knowledge Excellent project management capabilities 26

27 3.7 How to Mitigate EPC Risks Bringing together the strongest members as one team Teamwork One Team project management structure Creation of environment where on Budget and on Schedule are prioritised --- three companies are jointly responsible Problem solving scheme with total optimization perspective Proven Technology Deployment of Proven Technology (ABWR) Maximum utilization of existing/proven supply chain and construction method 27

28 Thank you for your kind attention! 28