By - Jon Brown

Building a Small Modular Reactor Fleet
October 17-18, 2019 | Charlotte, NC

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Overview

Over the past several years, the future of the U.S. nuclear industry looks to be dependent on small modular reactors (SMRs). For its initial six decades, the mantra of the nuclear industry has been that size matters; bigger is better in order to achieve the efficiencies of scale. But recent events have underscored the risk in such large, bet-the-company nuclear projects. For example, cash flow during long capital-intensive construction, stability of long-term return in the face of sustained low-priced natural gas alternatives, and intangible public concern following the Fukushima Daiichi accident. Now the nuclear future seems to be recognizing the efficiencies of standardization and factory production with a movement toward small, mass-produced reactors and the inherent safety of advanced design. Technology is advancing and costs are declining, bringing SMRs into the power industry development mainstream. Is an SMR fleet that is factory-built and readily delivered just in time viable to meet the demand for electricity in the United States?

This course will examine the circumstances under which a typical utility with 20 gigawatts of electric generation can recapitalize to obtain twenty-five percent of its generation from SMR facilities. The course will start from the typical financial terms offered by a leading SMR developer and consider what build scenarios would look like. Cost and value metrics will be evaluated. Factors to consider include return on equity, cash flow, levelized cost of electricity (LCOE) compared to viable alternatives, and internal rate of return (IRR).  At each step, comparisons will be drawn to a comparable project of a facility relying on a couple of large-scale nuclear plants. In the end, can we make the business case to further enquire into whether to prepare an investor cost/benefit scorecard (or decision matrix) that will sell to a Utility Board that a commitment to SMRs is in the cards?

Any good Utility Project Manager will tell you that the viability of any project can be determined with a legal pad and an Excel spreadsheet—only if the project passes the initial screening for viability will it get the funding needed for a detailed treatment. So let’s get out our paper and spreadsheets and see what, if any, are viable approaches for a business case for a SMR fleet.

Learning Outcomes  

  • Discuss determining the feasibility of generating one-quarter of electricity demand from SMRs
  • Examine components to determining value proposition
  • Assess the establishment of value metrics
  • Compare an SMR fleet to an ongoing overseas project relying on the largest nuclear plant design in operation

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this event.

 

Requirements for Successful Completion of Program 

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

PowerPoint presentations, interactive group exercise, and group discussion will be used during this course. 

Agenda

Thursday, October 17, 2019 

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 5:00 p.m. ::Course Timing

12:00 – 1:00 p.m. :: Group Luncheon


The Overall Value Proposition of SMRs

    • Ease of Construction; Independent Usefulness of the SMR Facility
    • Standard, Factory-Built Design – Economies of Standardized Mass Production
    • How to Monetarize the Shorter Construction Period of an SMR
    • Financing the SMR Production Factory and the Role of Firm Utility Orders

SMRs vs Large Reactors: Key Differences

    • Design Completion versus Design Acceptance Criteria
    • Government Licensing and Design Certification
    • Role of the Host State(s)
    • Delivery from Off-Site Versus Construction On-Site
    • Operation – Regional or Fleet-Wide Standardized Training and Maintenance Versus Each Facility Independently

The Economics of SMRs

    • Timing of Capital Requirements
    • Flexible Financing Options and Models
    • Financing the Factory to Build SMRs
    • More Attractive Path to Profitability
    • Analysis and Calculation of Internal Rate of Return (IRR) and Net Present Value (NPV)
    • Levelized Cost of Electricity (LCOE) – Calculation and Use

Friday, October 18, 2019 

8:00 – 8:30 a.m. :: Continental Breakfast 

8:30 a.m. – 12:00 p.m. :: Course Timing


Business Case I:  Can MerchantCo—Either an Independent Power Producer or a Diversified Utility—Decide for Nuclear New Build in an Organized Market – SMRs or Not?

    • Other Competing Options
    • Competitive Assessment Against NGCC
    • Public Opinion Concerns
    • Long Term Economic Viability and Cash Flow Analysis

Business Case II:  Can RegulatedUtilityCo, a Vertically Integrated Utility, Decide for Nuclear New Build in a Regulated Market – SMRs or Not?

    • Getting an SMR Project into the State Integrated Resource Planning Process
    • SMR As a Drop-in Replacement for a Natural Gas Combined Cycle in Terms of Cost, Performance, and Risk
    • Return on Equity (ROE) Assessment for Integrated Utilities
    • Recoup from Customers of the Costs of Service, Weighing:
      • Energy
      • Capacity
      • Ancillary services

Instructors

Irfan Ali, Executive Member, Board of Directors, Advanced Reactor Concepts (ARC)

Irfan is currently an Executive Member, Board of Directors at Advanced Reactor Concepts (ARC), an innovative company at the leading edge of nuclear technology. The company is engaged in the design and commercialization of a disruptive new technology for power generation in the form of an advanced small modular nuclear reactor. The reactor will produce 100 MWe of energy, be factory-built and offer the customer fixed fuel costs for 20+ years.  Previously, Irfan served as the President & CEO of ARC from 2009 to 2015.

With an extensive record in the field of technology, Irfan has a unique combination of executive management skills, as well as technical and marketing skills. A professed technologist, he has a passion for bringing new, innovative technology to the market in the form of products and solutions that address complex, contemporary problems. Irfan prides himself on his ability to bring together diverse, talented individuals into a single, focused, effective team with a common purpose. He has a proven track record of raising capital and building global businesses involving a number of innovative, emerging technologies. Based on his comprehensive executive experience to date, Irfan excels in all aspects of corporate operations and governance, including full P&L management. His success spans multiple markets including telecommunications, high-performance computing and networking, software development, information management and technology, energy, and cleantech.


Budd Haemer, Senior Nuclear Counsel, American Electric Power

Budd is currently Senior Nuclear Counsel for American Electric Power at its D.C. Cook Nuclear Plant in Bridgman, Michigan.  His practice covers a wide range of legal topics necessary for successful support of commercial nuclear power operation, including spent nuclear fuel management, State and NRC regulatory matters, commercial transactions, employee relations, and government affairs. Prior to that, he was a lawyer with the nuclear energy practice of Pillsbury Winthrop Shaw Pittman, LLC, where his practice also included assisting developers of small modular reactors with licensing strategies and in pursuing government grants and other fundraising opportunities. 

Prior to becoming a lawyer, Budd served in the U.S. Navy as an engineering duty officer with the Naval Nuclear Propulsion Program.  His work there covered control of nuclear testing, quality assurance, radiological protection, and defueling of submarine reactors, including spent nuclear fuel storage and shipment.  He rose to the level of Deputy Program Manager for environmental, health, and safety programs in the nuclear technology section.

Location

Hilton Charlotte City Center

222 East 3rd St

Charlotte, NC 28202

Reserve your room:

please call 1-704-377-1500

Room Block Reserved For:

Nights of October 16 – 17, 2019

Room rate through EUCI:

$169.00 single or double plus applicable taxes
Make your reservations prior to September 16, 2019.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, September 27, 2019
Standard RateAttendees
Building a Small Modular Reactor FleetUS $ 1195.00 US $ 1395.00

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before September 13, 2019 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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