Global Nuclear Expansion

1. Global Nuclear Expansion Kenneth R. Balkey Vice President, ASME Nuclear Codes and Standards Consulting Engineer, Westinghouse Electric Company Workshop on the Global Relevance of the ASME Boiler & Pressure Vessel Code Sheraton Atlanta Hotel January 28, 2007

2. Global Energy Situation and Need For New Reactors The author acknowledges with appreciation the contributions to this portion of the presentation by Mr. John Goossen, Director, Science & Technology Department, Westinghouse Electric Company

3. Electricity Lights the World

4. World Electricity Demand Growth (bkWh) 63% Increase Needed in Next 20 Years Source: EIA International Energy Outlook - Updated 07/05

5. Forecast Electricity Demand by Region (Billion KWh) Source: EIA Annual Energy Outlook 2004 Asia Europe U.S Rest of World An extensive expansion of installed generating capacity will be required.

6. U.S. Needs 45 Percent More Electricity by 2030 Source: Energy Information Administration

7. Nuclear Power Provides an Option for Energy Independence Source: Energy Information Administration

8. Nuclear Power Plays A Major role in Global Electricity Generation 441 Operating Commercial Nuclear Power Plants Worldwide Percentage New Construction in Progress Source: International Atomic Energy Agency & World Nuclear Association Database

10. What is Driving A Nuclear Renaissance? • Continuing excellent performance of existing reactors • Need for base load electricity capacity • Nuclear’s contribution to clean air recognized and credited • Importance of energy security and/or diversity included in capacity planning • Competitive economics of new nuclear plants compared to alternatives • Government support and/or incentives for initial projects • Strong tie between nuclear and hydrogen economy Natural Gas Price

11. Source: “ www.nuclear.gov” generation IV initiative

12. Global Developments and ASME Board on Nuclear Codes & Standards (BNCS) Efforts

13. Nations Turning to Nuclear Energy France 2 Lithuania 1 Czech Rep. 2 Slovakia 2 Slovenia 1 Romania 3 Bulgaria 1 Turkey 2 Armenia 1 Russia 42 Ukraine 2 Kazakhstan 1 Japan 12 North Korea 1 South Korea 7 China 63 India 23 Vietnam 2 Indonesia 1 Canada 2 USA 32 Mexico 2 Argentina 1 Brazil 1 Nations have planned or proposed building more than 220 power reactors Israel 1 Iran 5 Pakistan 4 Egypt 1 South Africa 25 Source: World Nuclear Association (as of Dec. 8, 2006) in Nuclear Energy Insight, January 2007

14. New Reactor Technology BNCS Task Group on New Reactors • Mission: Ensure, on a worldwide basis, that ASME Nuclear Codes and Standards protect public health and safety and meet the needs of users. These Codes and Standards are developed with an approved consensus process. • Goal: To determine need and provide ASME Nuclear Codes and Standards for the benefit of users.

15. Globalization BNCS Task Group on Globalization • Mission: To ensure that ASME nuclear codes and standards are useful to stakeholders world-wide. • Goals: • To solicit feedback from stakeholders in Asia, Europe, Africa and the Americas regarding the user friendliness of the ASME code documents. • To encourage more world-wide stakeholders to participate in the ASME codes and standards development technical consensus process.

16. Key Developments • New Reactor Workshops and Visits • U.S., South Africa, Canada, Europe, China, South Korea • JSME / ASME Workshop planned April 2007 in Nagoya, JAPAN following ICONE-15 • 1st overseas ASME BNCS Meeting and Workshop held in Prague, Czech Republic in June 2006 • Hosted by Czech Nuclear Research Institute in Rez, CR • Industry, regulatory, standards development organization representatives from 18 countries participated including Western / Eastern Europe, Russia, South Africa, Japan, Canada, U.S. • Several new international representatives and delegates have become members and actively engaged in ASME Nuclear Codes & Standards, including nuclear accreditation

17. Some Current Initiatives in ASMENuclear Codes and Standards – New Reactors • General • DOE Gen IV New Reactor Materials Program • NRC proposal for new 10 CFR Part 53 for licensing new reactors • Participate in Multi-national Design Evaluation Program (MDEP) • Section III • Obtaining NRC endorsement of piping seismic design rules • Reaching consensus on treatment of environmental fatigue • Develop probabilistic design requirements for new high temperature gas-cooled reactors (HTGRs), particularly for use of graphite for reactor internals • Section XI • Develop risk-informed ISI requirements for HTGRs • Committee on Nuclear Risk Management • Development of Level 1, 2 and 3 PRA Standard for new reactors • Nuclear Quality Assurance / Qualification of Mechanical Equipment • Obtain NRC endorsement of latest editions of NQA-1 and QME standards for use in combined construction and operating license (COL) applications

18. Globalization -A Personal Perspective

19. Globalization –A Personal Perspective • Examples • International Conference on • Nuclear Engineering • ASME SC III SG on Graphite • for Core Components • Gen IV New Reactor Project • ASME Codes & Standards / • ASME as a whole Source: Adapted from Keynote Presentation by Daniel Burrows, a renowned futurist, at the Carnegie Science Center Awards, Pittsburgh, PA, May 3, 2006

20. Summary • Growing global energy needs are resulting in many nations looking to significantly expand the use of nuclear power • ASME Board on Nuclear Codes & Standards and its committees have several key initiatives underway to begin to address the changing global nuclear industry • The world is changing at an ever increasing rate that requires everyone to understand these developments and to act in an appropriate manner for ASME Codes & Standards to achieve its vision and mission – “Tobe the world leader in mechanical and multidisciplinary engineering codes, standards, and conformity assessment programs…for the benefit of humanity, and involve the best and brightest people from around the world…”

21. Questions