Kate Jackson Senior Vice President, Research & Technology & Chief Technology Officer

1. Catalyzing the Nuclear and Chemical Industries Through the Pursuit of Clean, Sustainable Energy Kate Jackson Senior Vice President, Research & Technology & Chief Technology Officer Westinghouse Electric Company

2. Why Nuclear Energy? • Meets policy goals to reduce greenhouse gas emissions • Highest reliability • Low cost electricity • Stable uranium fuel sources=less fluctuation in price • Creates thousands of jobs, $430million per year at each site • History of safe and reliable operation

3. Energy Production and Consumption in U.S. – the Potential Market

4. U.S. Electricity Production Costs 1995-2009, In 2009 cents per kilowatt-hour Cents per Kwh Source: Ventyx Velocity Suite Updated: 5/10

5. U.S. Electricity Sources Which Do Not Emit Greenhouse Gases Source: Global Energy Decisions / Energy Information Administration Updated: 4/08

6. Capacity Factors by Generation Type

7. Broadening the Application for Nuclear • District heating • Remote installations / small grid markets • Desalination • Process heat

8. Characteristics of Process Heat Markets Co-generation • Market is highly varied; comprised of multiple plants with varying ratings supplying energy to different industries • Petrochemical, aluminum & plastics plants, paper mills, crude oil and bio-refineries, ammonia & fertilizer plants Oil sands and oil shale • Bitumen recovery: Supply of steam to multiple oil sands well pads and oil shale wells • Bitumen upgrading: Supply of process heat and hydrogen to support upgrading to Synthetic Crude Oil • Oil Sands: • Electricity supply; centralized highly efficient electricity supply & distribution • Water treatment; critical issue, modest heat and electricity supply required Source: INL: “High Temperature Gas-Cooled Reactor Projected Markets and Preliminary Economics”, Aug 2011

9. Process Heat Market (Estimated) • Co-generation – 75 GWt • Petrochemical, refinery, fertilizer / ammonia plants and others • Oil sands / oil shale – 60 GWt • Steam, electricity, hydrogen & water treatment • Bitumen recovery & upgrading • Hydrogen merchant market – 36 GWt • Synthetic fuels (coal conversion) & feedstock – 249 GWt • Steam, electricity, high temperature fluids, hydrogen • Transportation fuels & feedstock • IPP supply of electricity – 110 GWt • 10% of the nuclear electrical supply increase required to achieve pending Government objectives for emissions reductions by 2050 Source: INL: “High Temperature Gas-Cooled Reactor Projected Markets and Preliminary Economics”, Aug 2011

10. Process Heat Applications • Chemical Plants • 1,500 psi (10 MPa) max steam pressure to drive equipment • Many applications need 600 psi (~4 MPa) or less • ~1,500 MWth total per plant • Many sites • Oil Sands • 1,750 psi (12 MPa) • Requires steam compressor development • Lack of off-the-shelf compressor technology • Development challenge is unknown • Harsh site conditions Vision: de-carbonize industrial sector traditionally relying on fossil fuels

11. Computer-Aided Process Optimization Software (Processes) in the Nuclear Industry • Nuclear power plant optimization • Efficiency improvement • Current operation at steady state • Reduction of station service requirements • Improved diagnostics and prognostics • Load following capabilities expected for SMR • Potential opportunity to explore and incorporate process optimization software in areas such as control of power output • Fuel Manufacturing process optimization

12. What About “Nuclear Waste?” • Used nuclear fuel is currently stored safely, exists in manageable volumes and can be potentially re-used in the future • All of the used nuclear fuel that has been produced in the past 50 years will fit on a football field, stacked 10 meters high • If your personal lifetime consumption of electricity came solely from nuclear energy, the “waste” would easily fit inside a Coke can (about 8 oz). • If all your electricity came solely from coal, you'd generate almost 70 tons of waste

13. And then there was Fukushima • The Fukushima nuclear plants experienced a series of unprecedented natural disasters that exceeded the design basis: • Earthquake ground force acceleration of 0.51g vs. design of 0.45g • Tsunami wave 14 meters high vs. design of tsunami wall at 5.7 meters • The station blackout that occurred and the damage that resulted have already provided insight into what can be done to further improve safety at existing plants and those planned for the future Damaged Unit 3 of the Fukushima Daiichi nuclear power plant in Okumamachi, Fukushima Prefecture

14. The Future of Nuclear Post-Fukushima • 30 years of safe and reliable operation • Utilities and governments remain committed to nuclear • New reactor development will continue • Nuclear energy is essential to meet environmental goals • New awareness and appreciation for advanced safety systems • The Westinghouse AP1000® is designed with advanced safety systems in case of a “beyond design basis” event

15. What Makes the AP1000 ® Different? • The AP1000 nuclear power plant can place the reactor in a Safe Shutdown Condition within the first 72 hours of a Station Blackout, without the use of AC power or operator action • With some operator action after 3 days, the AP1000 nuclear power plant continues to maintain reactor core cooling and Spent Fuel Pool cooling indefinitely • The AP1000 nuclear power plant has superior coping capabilities as well as significantly reduced risk for core damage

16. Simpler Design Requires Less Equipment 50% FewerValves 35% FewerPumps 80% LessPipe 45% LessSeismic BuildingVolume 85% LessCable

17. AP1000 ® Project Status Six AP1000 units under contract - the first nuclear plant contracts in the U.S. in 30 years. Eight additional AP1000 units are planned. Vogtle Unit 3 VC Summer

18. Westinghouse AP1000 ®On Schedule for 2013 in China

19. Moving Forward with Small Modular Reactors • Lessons learned from Fukushima incorporated into new and existing plants will further increase safety • The event has raised awareness and appreciation for passive safety systems like those used in the AP1000®design as well as the Small Modular Reactor

20. What It Is… Containment Vessel • An integral PWR • Innovative packaging of proven components • The highest levels of safety with fewer accident scenarios • Industry-proven equipment designs • Compact reactor coolant system and containment • An engineered solution for today’s clean energy challenges Pressurizer Steam Generator Core Makeup Tank Reactor Coolant Pumps Internal Control Rod Drives …Simplicity in Design Reactor Core

21. How Small is Small? 25 Westinghouse SMR Containment Vessels fit in a single AP1000® Containment Vessel

22. Convergence of Industries • Nuclear has appropriate characteristics for “decarbonizing” the Chemical Industry • As Nuclear plants are called on to cycle, new optimization issues will emerge • Fuel production and waste management offer opportunities for collaboration