1. CANDU Fuel Options: Practical Adaptability Jerry Hopwood Vice President, Marketing & Product Development World Nuclear Association, Annual Symposium September 2013

2. Candu Energy Progress Report Established in 2011 to acquire commercial reactor business of AECL Holds exclusive right to all aspects of CANDU technology; continues –CANDU-related business in Canada and internationally –60 years of CANDU development A wholly owned subsidiary of SNC-Lavalin Two years in, Candu Energy off and running—a growing business 1Unrestricted | Illimité

3. Candu Energy’s Perspective on Global Market Nuclear option still regarded as essential component of future clean energy needs Non-nuclear option: not so “green”, or economical Approach to nuclear development depends on local circumstances –Economics –Project models and financing –National growth –Fukushima aftermath –Government support Candu Energy is committed to long-term nuclear business 2Unrestricted | Illimité

4. Candu Energy’s Perspective on Fuel Cycles Successful nuclear power future will drive fuel cycle adaptations. Drivers include: –Economics –Resource utilization –Waste management Challenges of establishing fuel recycling –High cost of lessons learned –Economic benefit of waste management uncertain 3Unrestricted | Illimité

5. Benefits from Alternate Fuel Cycles 4 Energy independence for countries with nuclear programs –Use domestic resources that are more abundant and available than natural uranium (NU) Reduced spent fuel volume, for example: –90,000 tonnes of recycled uranium (RU) produced to date –RU production 4,000 tonnes/year, expected to increase to 6,000 tonnes/year –CANDU use of RU-based fuel is a simple use for this byproduct Address non-proliferation issues –CANMOX option is a proven solution for plutonium disposition Unrestricted | Illimité

6. Advancing Fuel Cycle Options 5 Success will start in niche areas CANDU technology ideally placed: –Simple fuel bundle –Efficient fuel utilization –Adaptable core through on-power refuelling Unrestricted | Illimité

7. Evolution of Fuel Cycles Factors driving research include: –Expand limits of fuel utilization –Deployment of different, more abundant elements –Increase fuel flexibility –Employment of recycled fuels –Decrease environmental impact –Develop proliferation resistant fuel and fuel cycles Candu Energy and AECL have extensively studied alternate fuel sources in CANDU-type reactors. 6Unrestricted | Illimité

8. Candu Energy’s Work on Fuel Cycle Options Recycled uranium (RU) –RU-based fuel qualified and demonstrated in CANDU reactor –Full RU-based core now being manufactured for Qinshan units Material disposal (MOX fuels) –CANMOX option is simple design adaptation of Enhanced CANDU 6 (EC6) to apply to UK plutonium disposition Future fuel cycles –Thorium based fuels demonstrated through R&D and design –Reactor changes minimal –Advanced Fuel CANDU Reactor (AFCR) 7Unrestricted | Illimité

9. CANDU Fuel Cycle Flexibility 8Unrestricted | Illimité

10. Enhanced CANDU 6 (EC6) Strengths Only proven medium sized reactor More efficient user of uranium than LWRs Unique fuel cycle capabilities Cobalt-60 production High performer – 92% target Capacity Factor 9 Overview 740 MW(e) classic CANDU reactor Natural uranium (NU) fuel Heavy water coolant and moderator Fuel channel core On-power refuelling Unrestricted | Illimité

11. Candu Energy’s Innovation Package 10Unrestricted | Illimité

12. Fuel Cycle Practicality -- Can it be Done? Yes, provided we meet the challenges of innovating complex technologies. We can benefit from: –Advancements in technology –Decades of experience –Lessons learned from past difficulties in building and running earlier industrial fuel recycling facilities Today’s economics must be addressed: –Once-through fuelling a commercially successful benchmark –CANDU reactor natural uranium (NU) fuel cycle—outstanding economics –Perceived risks in pursuing recycled or alternate fuels –Uncertain economics of fuel waste disposal 11 Can we implement economical, reliable alternate fuels? Unrestricted | Illimité

13. Fuel Cycle Practicality -- Can it be Done? Challenge – economical alternate/recycled fuel material –CANDU reactor core is efficient and versatile; can use readily available materials Challenge – costs and first of a kind risks of fuel manufacturing –CANDU fuel very simple, small scale fuel bundle –Once pellets prepared, fuel manufacturing follows natural uranium process Challenge – tolerances for blended fuels –Natural uranium equivalent (NUE) fuel for Qinshan –Now in industrial manufacturing 12 With CANDU technology, we can meet the challenges. Unrestricted | Illimité

14. Fuel Cycle Practicality -- Can it be Done? Challenge – adapting reactor design for alternate fuels –Numerous engineering projects and fuel demonstrations in the CANDU reactors have shown that existing CANDU reactors are readily adaptable to alternate fuels –On-power refuelling and adaptable fuel design mean core can be tailored by operation Challenge – qualification and licensing of alternate fuel applications –Extensive existing test programs at AECL and elsewhere provide qualification basis –Fuel designs routinely assessed within existing CANDU reactor licensing envelope 13Unrestricted | Illimité

15. CANDU Reactors: Fuel Adaptable EC6 reactor is safe, proven and economically competitive, adaptable for a range of fuels EC6 can be readily adapted to run using various fuel types CANDU fuel is mission-flexible, easily fabricated and low cost 14Unrestricted | Illimité

16. CANDU Reactors: Fuel Adaptable Uses proven EC6 design All elements of CANMOX fuel proven Fuel manufacturing straightforward Highly efficient plutonium disposition 15 Current example: CANMOX approach to plutonium disposition. Unrestricted | Illimité

17. What Next? Continue recycled uranium and thorium initiatives with China Work to firm up understanding of UK plutonium mission Build broader economic case for recycling spent fuel Build more CANDU reactors! 16Unrestricted | Illimité

18. Thank You