Update on New Nuclear Development: Pickering Community Advisory Council Meeting

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Update on New Nuclear Development: Pickering Community Advisory Council Meeting Update on New Nuclear Development: Pickering Community Advisory Council Meeting May 21, 2019 Robin Manley Vice President New Nuclear Development p1 Building our Business through New Nuclear • “Build our Business” is a key enterprise initiative under Financial Strength • Pursuit of new nuclear development is one element • NND mandate includes two parallel paths • Maintain the option for Darlington New Nuclear Project • Pursue small modular reactors as part of OPG’s portfolio p2 Darlington New Nuclear Project Darlington New Nuclear Project • 2012: Environmental assessment (EA) accepted; CNSC granted OPG a 10-year site preparation licence • 2013: DNNP deferred by Province due to lower than expected electricity demand; Province requested OPG maintain licence • Since then, focused on maintaining licence commitments (environmental monitoring, site improvements) • Oct 2018: Submitted licence mid-term report to CNSC • Summarized activities undertaken since licence was granted • Report presented at CNSC public meeting in December 2018 p4 Darlington New Nuclear Project • DNNP site is a significant asset • Province of Ontario: To maintain nuclear in Ontario’s energy supply mix • OPG: Only licensed nuclear site in Canada available for new nuclear build; with approved EA • Licence expires in August 2022 • Renewal process underway • Informed CNSC of our intention to renew • Begun work associated with preparing licence application • Technology-neutral application; monitoring technology developments in industry • Renewed licence will maintain flexibility for future new build p5 options Small Modular Reactors (SMRs) p6 Global Interest in SMRs • Need to balance increasing world-wide demand for energy versus environmental and climate change impacts • No single energy solution = nuclear must be part of the mix Range from community • Smaller: Less than 1 MWe up to 300 MWe scale (<10 • Adaptable: Match load and demand in a scale-to-fit MW) to utility scale approach; generate heat for uses beyond just electricity (~300 MW) Pickering: Claims: 515 MWe • Safety: Enhanced safety features (eg passive safety) net Darlington: • Simpler: Modular designs, reduced project schedules 885 MWe • Cheaper: Lower up-front capital investment; net p7 economies of modularity Canada’s SMR Roadmap • “A Call for Action: A Canadian Roadmap for Small Modular Reactors” • Collaborative report developed by industry representatives, utilities, all level of governments • Outlines framework, applications for SMR deployment in Canada • Released November 2018; the start of the conversation • OPG made significant contributions to the report, chaired many working groups "...Canada is uniquely positioned to lead the world on SMRs. We have experienced nuclear power plant operators— leaders such as New Brunswick Power, Ontario Power Generation, and Bruce Power — who have the know-how needed." p8 Honourable Amarjeet Sohi, Canada's Minister of Natural Resources The Canadian Perspective – Why SMRs? • Long history in Canada – McMaster University, Chalk River’s Nuclear Power Development • Enables Canada to achieve environmental, climate change, social and economic goals • Clean, GHG-free, reliable electricity for heavy industry and remote areas with no access to grid • Reduced reliance on fossil fuels and diesel-generated power • Complements well with existing energy mix, enables renewables • Produces heat energy (not just electricity) for district heating, desalination, heating for greenhouses • Addresses social issues in remote, northern communities Opportunity to leverage 50 years of safe nuclear generation in Canada: known technology, expertise and technical depth, existing supply p9 chain, infrastructure Potential Applications in Canada p10 OPG’s Interest in SMRs 50 years nuclear; • Successful partnerships 100+ hydro • Largest nuclear with Indigenous Positive operator in Canada reputation Communities across • Demonstrated history • Co-operative Ontario of safe operations relationships with site Refurb, RG projects, host communities Nanticoke • Proven project Solar Build our management • Growth opportunity Business success • Potential to move • Technical depth; Expertise beyond Ontario skilled employees from Eagle across Creek p11 OPG SMR at Canadian Nuclear Laboratories • Engaged with Global First Power proposal for SMR commercial demonstration unit at Chalk River • Proposed 15-MWt (approx 5 MWe) high-temperature gas reactor • Serves as a model for future SMRs for heavy industry (mining) • First submission to advance to Phase 3 of CNL’s review process • Application submitted to CNSC for “Licence to Prepare Site” • First-ever regulatory licence application in Canada for SMR • Stakeholder engagement p12 activities have begun Potential Opportunities in the North • Working with OPG’s Business Development group to pursue solutions for the north – heavy industry, remote communities • Reliable, clean power; reducing dependency on diesel • Opportunity to integrate SMRs with renewables, battery storage • Leveraging OPG’s existing relationships and successes in Northern Ontario • ex Gull Bay and other RG projects Gull Bay, Ontario • Engaging with mining companies to determine opportunities, interest • Prospectors & Developers Association of Canada p13 Questions/Discussion p14 Technology Overview and Status p15 SMRs are Happening Now • SMRs of today are based on R&D from the past • 1950s – US Atomic Energy Commission • 1960s/1970s – Nuclear Power Demonstration, McMaster University, Royal Military College • SMRs are being deployed today • Argentina – Light Water Reactor (CAREM-25): under construction • Russia – Floating LWR (KLT-40S): undergoing commissioning • China – High Temp Gas Reactor (HTR-PM): currently fueling • SMR at Idaho National Labs – target in-service by 2026 • SMR at Clinch River, TN – rec’d NRC recommendation for early site permit • 2018 - NRCan led development of pan-Canadian SMR roadmap • A Call to Action: A Canadian Roadmap for Small Modular Reactors • OPG contributed significantly to the development of this report p16 Light Water Reactors (LWR) • Generally evolutions of existing Light Water grid-scale reactors • Use existing LWR fuel at 4.95% enrichment Other Advanced Designs: • Simplified and combined heat transport / pressure vessels into one component CAREM (integral designs) • Argentinian design, 25 MWe commercial • Primary application is grid-scale alternative demo under construction, final product to coal and natural 100MWe gas generation with competitive levelized cost of energy (LCOE) SMaRT • Korean design, certified in Korea, LEAD: NuScale 100 MWe • Derivative of AP1000 Holtec • 50-60Mwe per reactor/ • US Company, focus on deployment Turbine Module, packs of 12 in Asia, 160 MWe (600-700MWe Station Output) • Advanced manufacturing facility in • Undergoing Design New Jersey Certification by USNRC (TCD late 2019) KLT-40S • Selected as FOAK by UAMPS • Russian floating design, construction for deployment at INL ~2024 – complete and under commissioning, COLA in late ‘18/early ’19 40 MWe • Backed by Fluor Inc as Primary Owner of NuScale LLC High Temperature Gas Reactors (HTR) • Based on prototypes and commercial prototypes globally (US, Germany, Japan and China) • Use TRISO fuel pellets from 4.95% to 19.95%: two suppliers (CNFC: China & BWXT: USA) • Helium coolant with fuel in carbon compacts (pebble beds or fixed geometries) • Designed for grid-scale or heavy industry applications • High quality heat can be used for electrical generation or process applications LEADS: • Very High technical readiness HTR-PM • CNNC (China): 100 MWe pebble bed Other Advanced Designs: • Passed heat/pressure tests, StarCore delivered to site in Oct 2018 • StarCore (Canada/US): 20 MWe • State-owned Prismatic design scalable up to 100 MWe • Entered Phase 1 of CNSC VDR and announced MMR-5 plan for commercial demo in Pinawa/WhiteShell • USNC (USA): 5 MWe Prismatic • Entering Phase 2 of CNSC U-Battery Vendor Design Review (VDR) • Urenco (UK): 4 MWe Prismatic design process • Entered Phase 1 of CNSC VDR • Selected by Global First Power • Partnership with Bruce Power for deployment opportunity at Chalk River; OPG named as X-Energy constructor and operator • X-Energy (USA), 70 MWe pebble bed • Licence to prepare site design application submitted to CNSC - • Partnership with US Dept of Energy Marchp18 2019 • Self-funded backed by investors Liquid Sodium Fast Reactors (LSF) • Based on prototypes in the US (mostly from General Electric), France and Japan with commercial plants in Russia • Used advanced metallic or carbide fuels but can use traditional light water reactor fuel • Designed primarily to be breeder/burner reactors for fast fuel cycles • Can span all possible applications from 1 MWe to 1000’s of MWe • High quality heat can be used for electrical generation or process applications • Medium to high technical readiness LEADS: ARC-100 Other Advanced Designs: • ARC (USA), 100 MWe • Phase 1 of CNSC vendor design TWR review • TerraPower (USA): “Traveling Wave” up to 1100 • Partner with New Brunswick MWe government • Partnership with CNNC in China as primary market • Partnership with GE-Hitachi (GEH) • Strong endorsement from Bill Gates PRISM OKLO • GEH (USA): 300 MWe spent fuel • OKLO (US): 1 MWe SMR burner • Engaged in conversations with GEH and • Developed as part of US Dept ARC as cross market application offerings of Energy advanced reactor program BN-600/800 • Substantial pre-certification • Rosatom (Russia) design in operation review by US Nuc Regulatory since 2015 p19 Commission Molten
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