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

2. November 3, 2006 2 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 2000-5000 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

3. November 3, 2006 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

4. November 3, 2006 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. November 3, 2006 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. November 3, 2006 6 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

7. November 3, 2006 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 H 2 Plant

8. November 3, 2006 8 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

9. November 3, 2006 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. November 3, 2006 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