Reiner W. Kuhr Executive Consultant University of Calgary November 2, 2006

1. PBMR Oil Sands Applications Reiner W. KuhrExecutive ConsultantUniversity of CalgaryNovember 2, 2006

2. Environmental & Infrastructure Energy/Chemicals Nuclear Modularization • Fossil, Renewables, T&D • Full Service Engineering, Design, PM, Procurement • 4000+Staff • Management Consulting • Refinery, Cracking, Facility Design & Procurement • Proprietary Technologies • Full Service Engineering, Design, PM, Procurement • Maintenance & Mod Services • 4000+Staff • Sitting, Permitting & D&D • Management Consulting • T&D • Siting • Remediation • Decontamination • Emergency Planning • Security • 10,500+ Active Craft Database • 60 Acre Facility • 2,000 Ton Loadout Capability Construction Steel Maintenance Piping • Nuclear, Fossil, Process • Double Breasted • Structural Steel, Vessel & Tank Fabrication • 1,500 Tons/Month • 30+ Acres Laydown • 10,500+ Active Craft Database • 2,750+ Current Active Construction Field Craft plus 2000-5000 Active Nuclear Craft • 10,500+ Active Craft Database • Pipe/Supports/Snubbers • 13 Fabrication Facilities • 34,500 Spools/Month • 10,000 + Pounds/Month • US ASME III Fabricator + Engr. Shaw Major Business Areas

3. PBMR … A Nuclear Gas Turbine ! • 9 MPa pressure • Helium gas coolant • Brayton direct cycle • On-power refueling • 400 MWt (165 MWe) • >41% thermal efficiency • 900 – 950oC temperature

4. Why PBMR for Process Heat • High heat delivery temperatures (900C +) • Catalyst reactions (reforming, water splitting) • High pressure steam (heavy oil recovery) • Smaller reactor size (500MWt) • Matches industrial plant sizes • Matches incremental process heat demands • Enhanced safety features • Allows proximity to customer facilities • Easier acceptance by process industry

5. Why PBMR’s (continued) • Simpler design • Small footprint • Lower capital than power generation • Easy integration with process facilities • Limited technology development needed • Adaptation of existing process technology • Most R&D on longer term water splitting • Simple reactor configurations

6. Process Applications • Steam Generation • Oil Sands • Cogeneration • Steam Methane Reforming • Hydrogen • Ammonia • Methanol • Water-Splitting (H2 & O2) • Bulk Hydrogen • Coal-to-liquids • Coal-to-methane • Desalination

7. PHP Steam Methane Reforming (SMR) The PHP provides heat for the reformer, displacing natural gas. Remaining heat is used for steam or power coproduction. Air Products H2 Plant

8. PHP Assisted Coal-to-Liquids PHP Plant H Water Splitting steam 2 Fischer- Tropsch O Gasifier syngas 2 coal transportation fuels Replaces inefficient use of coal to make hydrogen and oxygen; Can eliminate CO2 emissions and double carbon efficiency.

9. Next Generation Nuclear Plant (“NGNP”) • $3.5 M contract signed in Sept with Westinghouse/Shaw/PBMR team (Shaw PM) • “Pre-conceptual Design” and economics • Next phase will support conceptual designs and down-selection of technologies (pebble bed vs block style reactor by Areva and General Atomics) • Support and acceleration of nuclear licensing process • Review of economics and industrial relationships • Possible U.S. demonstration project of PBMR • DOE/INL has requested inclusion of oil sands options

10. Need for MIT/U of Calgary Study • Clear framework for understanding: • Practical applications • Economic sensitivities • Nuclear safety issues • Gas market impacts • CO2 impacts • Identify prerequisites • Stakeholder process • Government policy • Nuclear regulator • Commercialization feasibility