Reiner W. Kuhr Executive Consultant University of Calgary November 2, 2006 PBMR Oil Sands Applications

November 3, Shaw Major Business Areas Construction Nuclear, Fossil, Process Double Breasted Steel Structural Steel, Vessel & Tank Fabrication 1,500 Tons/Month 30+ Acres Laydown Maintenance 10,500+ Active Craft Database 2,750+ Current Active Construction Field Craft plus Active Nuclear Craft Piping 10,500+ Active Craft Database Pipe/Supports/Snubbers 13 Fabrication Facilities 34,500 Spools/Month 10,000 + Pounds/Month US ASME III Fabricator + Engr. Energy/Chemicals Fossil, Renewables, T&D Full Service Engineering, Design, PM, Procurement 4000+Staff Management Consulting Refinery, Cracking, Facility Design & Procurement Proprietary Technologies Nuclear Full Service Engineering, Design, PM, Procurement Maintenance & Mod Services 4000+Staff Sitting, Permitting & D&D Management Consulting T&D Environmental & Infrastructure Siting Remediation Decontamination Emergency Planning Security Modularization 10,500+ Active Craft Database 60 Acre Facility 2,000 Ton Loadout Capability

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

November 3, 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

November 3, 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

November 3, Process Applications  Steam Generation Oil Sands Cogeneration  Steam Methane Reforming Hydrogen Ammonia Methanol  Water-Splitting (H 2 & O 2 ) Bulk Hydrogen Coal-to-liquids Coal-to-methane  Desalination

November 3, 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 H 2 Plant

November 3, PHP Plant H 2 Fischer- Tropsch Gasifier steam Water Splitting O 2 syngas transportation fuelscoal Replaces inefficient use of coal to make hydrogen and oxygen; Can eliminate CO 2 emissions and double carbon efficiency. PHP Assisted Coal-to-Liquids

November 3, 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

November 3, 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