CANDU Fuel Options: Practical Adaptability

1. CANDU Fuel Options:Practical Adaptability Jerry Hopwood Vice President, Marketing & Product Development World Nuclear Association, Annual Symposium September 2013

2. Candu Energy Progress Report • Established in 2011 to acquire commercial reactor business of AECL • Holds exclusive right to all aspects of CANDU technology; continues • CANDU-related business in Canada and internationally • 60 years of CANDU development • A wholly owned subsidiary of SNC-Lavalin • Two years in, Candu Energy off and running—a growing business Unrestricted | Illimité

3. Candu Energy’s Perspective on Global Market • Nuclear option still regarded as essential component of future clean energy needs • Non-nuclear option: not so “green”, or economical • Approach to nuclear development depends on local circumstances • Economics • Project models and financing • National growth • Fukushima aftermath • Government support • Candu Energy is committed to long-term nuclear business Unrestricted | Illimité

4. Candu Energy’s Perspective on Fuel Cycles • Successful nuclear power future will drive fuel cycle adaptations. Drivers include: • Economics • Resource utilization • Waste management • Challenges of establishing fuel recycling • High cost of lessons learned • Economic benefit of waste management uncertain Unrestricted | Illimité

5. Benefits from Alternate Fuel Cycles Energy independence for countries with nuclear programs • Use domestic resources that are more abundant and available than natural uranium (NU) Reduced spent fuel volume, for example: • 90,000 tonnesof recycled uranium (RU) produced to date • RU production 4,000 tonnes/year, expected to increase to 6,000 tonnes/year • CANDU use of RU-based fuel is a simple use for this byproduct Address non-proliferation issues • CANMOX option is a proven solution for plutonium disposition Unrestricted | Illimité

6. Advancing Fuel Cycle Options • Success will start in niche areas • CANDU technology ideally placed: • Simple fuel bundle • Efficient fuel utilization • Adaptable core through on-power refuelling Unrestricted | Illimité

7. Evolution of Fuel Cycles Candu Energy and AECL have extensively studied alternate fuel sources in CANDU-type reactors. • Factors driving research include: • Expand limits of fuel utilization • Deployment of different, more abundant elements • Increase fuel flexibility • Employment of recycled fuels • Decrease environmental impact • Develop proliferation resistant fuel and fuel cycles Unrestricted | Illimité

8. Candu Energy’s Work on Fuel Cycle Options • Recycled uranium (RU) • RU-based fuel qualified and demonstrated in CANDU reactor • Full RU-based core now being manufactured for Qinshan units • Material disposal (MOX fuels) • CANMOX option is simple design adaptation of Enhanced CANDU 6 (EC6) to apply to UK plutonium disposition • Future fuel cycles • Thorium based fuels demonstrated through R&D and design • Reactor changes minimal • Advanced Fuel CANDU Reactor (AFCR) Unrestricted | Illimité

9. CANDU Fuel Cycle Flexibility Unrestricted | Illimité

10. Enhanced CANDU 6 (EC6) Strengths Only proven medium sized reactor More efficient user of uranium than LWRs Unique fuel cycle capabilities Cobalt-60 production High performer – 92% target Capacity Factor • Overview • 740 MW(e) classic CANDU reactor • Natural uranium (NU) fuel • Heavy water coolant and moderator • Fuel channel core • On-power refuelling Unrestricted | Illimité

11. Candu Energy’s Innovation Package Unrestricted | Illimité

12. Fuel Cycle Practicality -- Can it be Done? Can we implement economical, reliable alternate fuels? • Yes, provided we meet the challenges of innovating complex technologies. We can benefit from: • Advancements in technology • Decades of experience • Lessons learned from past difficulties in building and running earlier industrial fuel recycling facilities • Today’s economics must be addressed: • Once-through fuelling a commercially successful benchmark • CANDU reactor natural uranium (NU) fuel cycle—outstanding economics • Perceived risks in pursuing recycled or alternate fuels • Uncertain economics of fuel waste disposal Unrestricted | Illimité

13. Fuel Cycle Practicality -- Can it be Done? With CANDU technology, we can meet the challenges. • Challenge – economical alternate/recycled fuel material • CANDU reactor core is efficient and versatile; can use readily available materials • Challenge – costs and first of a kind risks of fuel manufacturing • CANDU fuel very simple, small scale fuel bundle • Once pellets prepared, fuel manufacturing follows natural uranium process • Challenge – tolerances for blended fuels • Natural uranium equivalent (NUE) fuel for Qinshan • Now in industrial manufacturing Unrestricted | Illimité

14. Fuel Cycle Practicality -- Can it be Done? • Challenge – adapting reactor design for alternate fuels • Numerous engineering projects and fuel demonstrations in the CANDU reactors have shown that existing CANDU reactors are readily adaptable to alternate fuels • On-power refuelling and adaptable fuel design mean core can be tailored by operation • Challenge – qualification and licensing of alternate fuel applications • Extensive existing test programs at AECL and elsewhere provide qualification basis • Fuel designs routinely assessed within existing CANDU reactor licensing envelope Unrestricted | Illimité

15. CANDU Reactors: Fuel Adaptable • EC6 reactor is safe, proven and economically competitive, adaptable for a range of fuels • EC6 can be readily adapted to run using various fuel types • CANDU fuel is mission-flexible, easily fabricated and low cost Unrestricted | Illimité

16. CANDU Reactors: Fuel Adaptable Current example: CANMOX approach to plutonium disposition. • Uses proven EC6 design • All elements of CANMOX fuel proven • Fuel manufacturing straightforward • Highly efficient plutonium disposition Unrestricted | Illimité

17. What Next? • Continue recycled uranium and thorium initiatives with China • Work to firm up understanding of UK plutonium mission • Build broader economic case for recycling spent fuel • Build more CANDU reactors! Unrestricted | Illimité