November 15, 2006

1. The Global Nuclear Energy Partnership John F. Gross U.S. Department of Energy Office of Nuclear Energy November 15, 2006

2. Topics • Global Nuclear Energy Partnership (GNEP) • GNEP – June 2006 • GNEP – September 2006 • EOIs/FOAs • Budget • FY07 Presidential Request • Funding Objectives • Landscape

3. What is GNEP? “This morning, I want to speak to you about one part of this initiative: our plans to expand the use of safe and clean nuclear power. Nuclear power generates large amounts of low-cost electricity without emitting air pollution or greenhouse gases.” “...my Administration has announced a bold new proposal called the Global Nuclear Energy Partnership. Under this partnership, America will work with nations that have advanced civilian nuclear energy programs, such as France, Japan, and Russia. Together, we will develop and deploy innovative, advanced reactors and new methods to recycle spent nuclear fuel. This will allow us to produce more energy, while dramatically reducing the amount of nuclear waste and eliminating the nuclear byproducts that unstable regimes or terrorists could use to make weapons.” President George W. Bush Radio Address: February 18, 2006 GNEP is a Presidential Initiative given to DOE to execute

4. GNEP Goals Lots of Nuclear Power (1000 ~2000 GW/yr by 2050) Reduced Proliferation Risk GNEP Has Two Main Goals GNEP Principles: • Global Issues require global solutions • Spent Fuel is an asset to be managed – not a waste.

5. Key U.S. Program Elements • Expand nuclear power (NP2010) • Manage & minimize spent fuel (Yucca Mountain) • Advanced Recycle Technology (UREX+, Pyro) • Advanced Burner Reactors (Sodium FSR) • Establish reliable fuel services (Leasing, Backup) • Demonstrate small, exportable reactors (Robust, Secure) • Enhanced nuclear safeguards technology (Design Norms)

6. Fuel Leasing Fuel Fuel Cycle States Reactor (Partner) States Spent Fuel Key Non-Proliferation Goal is Fuel Leasing GNEP Fuel Leasing Principles • Encourage expansion of nuclear power • Should make “commercial” sense • Consistent with Nuclear Non-Proliferation Treaty

7. Global Nuclear Energy Partnership - Today • The GNEP goals and vision are unchanged • Two of the GNEP major system projects have evolved • Engineering Scale Demonstration (ESD) has evolved to a larger scale Consolidated Fuel Treatment Center (CFTC) • Advanced Burner Test Reactor (ABTR) size has increased to a commercial scale prototype Advanced Burner Reactor (ABR) • Advanced Fuel Cycle Facility (AFCF) is unchanged • Two parallel but highly integrated tracks • Industry led track to design/construct the prototype facilities (ABR and CFTC) • National Lab track to conduct near-term technology development and longer term R&D to regain US technology leadership and global competitiveness

8. GNEP Dual Track Strategy – June 2006 • Confirmation that industry may be able to move ahead without demonstration facilities • Built on existing proven capabilities of the fuel cycle nations • Operate advanced spent fuel treatment/recycle technologies in the U.S. as early as possible • Use industrial partners • Use international experience • Use U.S. technology base enhanced by international collaborative applied research and development with National Laboratory focus on group transuranic separation and transmutation fuel • Technology Development Strategy • Commercial-scale Consolidated Fuel Treatment Center (CFTC) • Commercial-scale Advanced Burner Reactor (ABR) • Advanced Fuel Cycle Facility (AFCF) --World-class R&D facility • Request for Expressions of Interest (EOI) from Industry • Funding Opportunity Announcement (FOA) for site evaluation studies

9. Expressions of Interest from Industry Informed the Budget Formulation • Federal and national laboratory staff reviewed EOIs • Eight descriptions of CFTC or ABR approaches • Industry and international partners supportive of GNEP and anxious to participate • CFTC technology: solvent extraction, pyroprocessing, aqueous reprocessing • ABR technology: sodium-cooled fast reactor • Generally agreed with 2020 – 2025 timeframe • CFTC EOIs • Support for commercial-scale recycling of SNF (Only two EOIs expressed interest in smaller-scale, 20-40MT short-term demonstration) • Demonstrated understanding of footprint, support systems, and infrastructure requirements • Provided insight into cost sharing and business models • ABR EOIs • Endorsed sodium fast reactors as the preferred technology • Assumed licensing by NRC • Oxide or metal fuel

10. Evolution of GNEP Dual Track Strategy – September 2006 • Expressions of Interest from industry and international partners confirmed viability of Dual Track strategy • Potential industrial/international partners and sites identified for further discussion and strategy refinement • Public and private entities want to host one or both commercial-scale facilities • Recognized the importance of longer-term R&D to further develop the fuel cycle and support industry • FY07 Presidential Budget Request to Congress reallocated • FY08 OMB budget request revised to reflect assessment of EOIs

11. 2022 2021 2020 2019 2018 2008 2016 2017 2012 2006 2014 2013 2010 2011 2009 2007 2015 Engineering-scale Demonstration (ESD) Advanced Fuel Cycle Facility Advanced Burner Test Reactor The Dual-Track Strategy Allows us to Influence International Recycling Facility Technology Commercial-scale Consolidated Fuel Treatment Center and Advanced Burner Reactor vs. Engineering-scale Demonstration Conceptual Design Preliminary and Final Design Construction Startup SNF Separations… CFTC Concept. Design Preliminary and Final Design Construction Startup ABR Concept. Design Preliminary and Final Design Construction Startup LTA Development AFCF 2022 2021 2020 2019 2018 2008 2016 2017 2012 2006 2014 2013 2010 2011 2009 2007 2015 CFTC ABR AFCF

12. Involve U.S. National Laboratories, international research community, and industry in technology development and R&D to resolve key issues and to further develop fuel cycle technologies GNEP Consolidated Fuel Center Deployment • Enlist industry to build facilities to USG specs with National Laboratory support • Process SNF into acceptable disposable waste forms and transuranics/lanthanides • Use Transuranics/Lanthanides in fast reactor fuel

13. Funding Opportunity Announcements – Site Studies • Significant interest in hosting one or both commercial-scale operations • 14 grant applications received • 9 states involved • 8 proposed DOE sites • 6 proposed non-DOE sites • Total amount for grants is $20M, to be awarded by ~ November 2006

14. Landscape • Industry is able to implement present generation of recycling technology to • Move ahead with technology development identified by AFCI to support design and construction as options are explored for business model • Move as rapidly as practical to construct commercial-scale facilities to close the fuel cycle with recycling and fast reactor transuranic burning • Need to provide long-term commitment to next generation nuclear fuel cycle technology while moving ahead with present generation technology to • Revitalize U.S industry and National Laboratory infrastructure • Move U.S. toward a stronger international leadership position • Increase the venue for international collaboration • Following a balanced Dual Track strategy reduces risk