Small Modular Reactors: What, Why and When? (SMR2016)

Session 1 – SMRs: The UK – Why? Session Chairs: Andrew Sherry (NNL) and John Molyneaux (Rolls-Royce)

The UK has expressed an interest in the potential deployment of SMR technology as a means to help address the energy trilema – the need to ensure a secure and affordable supply of low carbon energy. SMRs could complement the UK’s large-scale nuclear reactor programme including existing and new nuclear build. This first session will explore why SMR’s could help address the key components of the energy trilema for the UK, providing a perspective from domestic and international experts.

The session will include an introduction from me, and presentations covering: (a) techno-economic assessment (Miranda Kirschel), (b) low carbon energy (Mike Middleton), (c) energy security (Candida Whitmill) and (d) international perspective from OECD (Jaejoo Ha). The session will end with a panel session with you all on the stage together, which will provide the audience an opportunity to ask further, more general questions.

Talk 1: Andrew Sherry (NNL) Professor Andrew Sherry is Chief Scientist at the UK’s National Nuclear Laboratory where he leads the development and implementation of the science and technology strategy supporting both Government and industry. He holds a Chair in Materials Performance at The University of Manchester where he leads research into materials, manufacturing and structural integrity of nuclear plant. He is a Fellow of the Royal Academy of Engineering, a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer.

 SMRs provide a new approach to nuclear power. Unlike the large reactors about to be built in the UK, they do not exploit economies of scale; they have an output about 25% that of large reactors.  SMRs target economies of a different kind: compact designs that maximise modular build in factories to enhance the quality arising from a controlled working environment; faster construction times that lower capital cost and reduce financial risk.  SMRs can deliver baseload power, balance the variable output from renewables and (or) supply district heating. SMRs also make passive safety a feature of their design to reduce the need for operator intervention to mitigate an unexpected event.  The ‘energy case’ for SMRs reflects their potential to complement the new nuclear build programme by providing additional baseload power, balancing the output of renewables by varying power as needed and supplying district heat if built closer to centres of population.  The ‘economic case’ reflects the potential national and international market. Capital costs per unit power will be higher for a first-of-a-kind iPWR than for large reactors though this should reduce for multiple units due to nth-of-a-kind learning, shorter construction times and reduced financial risk.  Effective public engagement will be crucial to the deployment of SMRs in the UK, and a strategy is needed to build confidence and acceptance of new technology potentially deployed on new sites.

Talk 2: Ray McSweeny (Ernst & Young) Ray is a Director in EY and lead’s EY’s Energy Strategy practice and his specialisms are in high value areas such as new industry and product development, emerging markets (Africa in particular), cost reduction, customer service, operational improvement, and operational productivity and also in tomorrow's opportunity areas such as digitisation, innovation, advanced manufacturing and internet of things. Ray led the Comprehensive Analysis and Assessment, as well as the EY led Cost Reduction study as part of the DECC commissioned Small Modular Reactor Techno-Economic assessment (TEA). He was also lead author of “Getting Ready for Shale” – an analysis of the UK Oilfield Services supply chain and requirement for investment. Ray has a degree in Chemical Engineering from University College Dublin (1999) and an MBA from Edinburgh University. (2007).

The SMR Techno-Economic Assessment

 The TEA: why it was commissioned, the context and drivers  The overall programme and process we undertook  Engaging stakeholders and other considerations  Assessing the economics – the EY modelling approach  The value of the study and next steps Talk 3: Mike Middleton (ETI) Mike Middleton is the Strategy Manager for Nuclear at the Energy Technologies Institute. Mike joined the ETI on secondment from the Rolls-Royce in 2013 utilising his previous experience including: Facilities Director and Naval Base Design Director at the UK Clyde Naval Base, a number of roles at Sellafield including Infrastructure Director; and 3 years with Jacobs Engineering in the UK.

New nuclear power stations could form an important part of a UK transition to a low carbon economy, but there is a range of constraints which could impact their rate of deployment and their ultimate capacity limit in the UK. The ETI has completed two multi-phase projects intended to better understand the constraints and opportunities for new nuclear:

• Power Plant Siting Study to identify the UK stock of sites suitable for large nuclear power stations as well as further site capacity suitable for Small Modular Reactors (SMRs) • System Requirements For Alternative Nuclear Technologies – to identify necessary technical and business case requirements for SMRs to be attractive within a UK low carbon energy system

The ETI’s internationally peer reviewed whole energy system model is used to test a wide range of transition scenarios which deliver compliance with the greenhouse gas abatement requirements of the Climate Change Act 2008. Evaluation of these scenarios helps to identify the technologies likely to contribute to a transition with acceptable risk and cost when compared to UK GDP.

The results from the two projects described above have been applied to scenarios tested within the UK energy system model. This has delivered new insights into the potential deployment of both large nuclear power stations and Small Modular Reactors in the UK. Mike Middleton will summarise the results from these projects and the insights gained.

Mike will also update on further ETI SMR project work related to potential UK SMR deployment to:

• Suggest potential operational capabilities required of a UK deployed SMR to maximise exploitation of the “economies of multiples” • Identify desirable characteristics for a “first of a kind” SMR deployment site in the UK • Identify potential enabling activities to deliver first operations of a UK SMR by 2030

The talk will point to the potential for Small Modular Reactors to become a valuable UK low carbon technology and for the potential for the UK to be more of a participant than merely a customer country.

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Talk 4: Candida Whitmill (Penultimate Power UK Limited) Candida Whitmill is the Managing Director of Penultimate Power UK, a company set up in the North East to overcome the political, technical and financial challenges to bring SMRs to commercialisation in the UK for both the domestic and export market, utilising UK nuclear expertise in research, development and the supply chain. Previously, Candida was Chairman of the UK Tidal Forum and worked closely with Government and stakeholders on the £9m Feasibility Study on the Severn Barrage and alternative tidal options. She was an Energy advisor to the Secretary of State at Department of Trade & Industry for four years. Candida has had several papers published on SMRs and their role in the UK’s energy portfolio.

Why SMRs

Energy Security in the context of SMRs

 What do we mean by energy security – the short-term and long-term perspectives?  Lack of energy security – the social and economic consequences  Demand – How much do we need? What will be the impact of decarbonisation?  Supply – SMR technology capacities and constraints, energy markets, carbon pricing  Challenges – Political continuity, allocation of risks, protecting the revenue stream

Talk 5: Jaejoo Ha (OECD) Dr. Ha received his bachelor's degree in Nuclear Engineering from Seoul National University and master's and Ph.D.’s degree in Nuclear Engineering from the Ohio State University in USA.

Dr. Ha started his career at DOOSAN Heavy Industries and construction Co. in 1982, and joined KAERI (Korean Atomic Energy Research Institute) in 1992. He worked as Director of Integrated Safety Assessment Division, and then 4 Vice President positions in Nuclear Safety Research, Nuclear Basic Science and Technology, Research Reactor Utilization and Development, and Advanced Reactor Development.

During his career in KAERI, He played the important role to establish several critical research facilities such as ATLAS (integral thermal hydraulic experimental facility), FTL (Fuel test loop) and CNRF (Cold Neutron Research Facility) of HANARO research reactor, and SMART-ITL (SMART Integral Test Loop). Also he played the key role to export a research reactor to Jordan, and obtain Standard Design Approval of SMART reactor, 100MWe SMR, in 2012, and has lead the cooperation in designing and building SMART in Saudi Arabia.

He joined OECD/NEA starting from Mar. 9th of 21015 as Head of Nuclear Development Division, and is leading a number of important programs regarding technical and economical aspects of nuclear energy and fuel cycle, and the role of nuclear energy in the overall energy mix and in a low-carbon economy.

• Pros and Cons of SMR: Well understood, but will summarize/revisit them shortly. Will address other areas such as co-generation and harmonization with renewables. • Perspective on Market: There are many reports with a large uncertainty and range based on different assumptions (and hope). Mostly considering to compete economics with LWR. Is it correct market perspective? • Innovative vs proven technology: Innovation is attractive, but market wants proven technology. How to deal with this? • Challenges and solutions: Related with pros and cons of SMR, what are the challenges and solutions for the successful deployment of SMR. Licensing, EPZ, supply chain, quality control, cost,… SMR will be successful with all these issues are resolved.

Panel Session Questions to consider:

 What in your view are the two most significant drivers for the UK to pioneer SMR technology?  What do you see as the most significant barriers to SMR deployment in the UK?  How can the UK maximise the positive impact from SMR deployment?