Nuclear Energy: And Production Of Hydrogen (Presentation)

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Nuclear Energy:And Production of HydrogenHydrogen Technical andFuel Cell Advisory Committee (HTAC)Dan R. KeuterVice President, Planning & InnovationEntergy NuclearDecember 18, 2007R

Entergy Does Not Have a Crystal BallBut we do know 9 World needs more energy9 Supply of oil and gas is finite9 Environmental regulations are stricter9 America needs energy security/diversityFuture of Nuclear and Hydrogen energy are promising1

Getting H2 From Nuclear Enegy1ConventionalElectrolysis2325%EfficiencyHigh TempElectrolysisThermochemicalWater Splitting50%Efficiency 50%Efficiency2

High Temperature ElectrolysisBased on Solid Oxide Fuel Cell (SOFC) technology–Solid Oxide Electrolysis Cell (SOEC) Basically A SOFC Operating In Reverse–Uses Thermal Energy to Reduce Electrical Energy Requirements3

High Temperature Electrolysis at INL“Button Cell” ExperimentsCompleted (2003)– Characterized Basic Operating Properties“Planar Stack” Experiments Underway– 10-cell Stack Tested – October 2004 Temps 800oC - 900oC H2 Production Rates 50 L/hr – 115 L/hr– 18-cell Stack Being Constructed4

Thermochemical Water SplittingSulfur Iodine - “SI” Process (Most Advanced) Development Work in Japan, France, & U.S. Lab Tests in Japan (50 L/hr) Pilot Scale Plant Proposed in U.S.WATERH2O SO2 120oCH2SO4800oCHeatHeatI22HI450oCHeatSO2 H2O ½ O2O2I2 H2H2Efficiencies 47%- 53%600 MWTh Module 200 Tons / Day5

Nuclear H2 – Commercially Viable?Comparative Economics - - Based on SRNL StudyCost of Hydrogen ( / kg )2.50H2 Cost using NaturalNat.GasGasFiredFired SMRSMR2.00 1.65/kg1.50Potential Value of O2 1.36/kg1.000.500123456789101112Price of Natural Gas ( / MMBTU )Source: SRNL6

Centralized Nuclear H2 ProductionCentralized Nuclear H2 Production Plant 1.65/kgHeatIndustrial H2 UsersHigh CapacityPipelineModularHeliumReactorHydrogenFueled FutureThermochemicalWater-SplittingH2O 1.86/kg 0.05/kgH2 ½O2H2 Storage(4) 600 MWth UnitsSI Process (52% Eff. HHV)760 Tons/DayDistributedPower 0.16/kgTransportFuelSource: SRNL7

The Freedom Reactor Modular Construction––––288 MWe / Unit - - 4 Units / Site 200 Tons/Day H2 Production/UnitBelow Grade Silo & Terrorist HardenedConstruction Time 3 yearsLow Capital & Operating Cost– Capital Cost 1000 - 1417 /kW– Low Staffing Levels– Low Decommissioning CostsProven Nuclear Technology Base– 40 Years - Gas Reactor Experience– U.S. & InternationalSafety– Passive cooling– Meltdown Proof– Proliferation Resistant8

The Next Generation Nuclear PlantThe Energy Policy Act includes 1 billion for the NextGeneration Nuclear Plant at Idaho National LabNeed demonstration atINL Prove design, construction Produce electricity andhydrogen Validate costs, operations Show other benefits – wastereduction, fuel flexibilityHigh TemperatureElectrolysisThermochemicalWater Splitting9

The Nuclear-H2 Nexus¾High volume with low cost¾Does not pollute the air¾Stable, domestic fuel. . . . If the hydrogen economy emerges in the transportationsector as I believe it will, then nuclear power generation willhave to play a paramount part in its evolution. . . Hydrogen is the currency of an energy system. To createthe currency, hydrogen, primary power must be utilized. Themost likely candidate to produce the power is nuclear.Dr. Geoffrey Ballard, founder of the fuel cell andScientific American’s 2002 Business Leader of the Year10

Myths & Truths OfNuclear Energy11

Nuclear Myths: SafetyMythNuclear energy is not safeTruthNuclear energy is as safe orsafer than any other form ofenergy availableOSHA Accident RatesAccidents per 200,000 worker-hoursU.S. Manufacturing5432U.S. Finance, Insurance, Real Estate1U.S. NuclearNo member of thepublic has everbeen killed orinjured in 40 yearsof nuclear energy inthe U.S.092949697989900U.S. Bureau of Labor Statistics, NEIIt’s safer to work in a nuclear plant than in an office12

Nuclear Myths: ChernobylMythA Chernobyl here would killthousands of Americans TruthChernobyl-type accidentcould not happen in the U.S.Chernobyl design would not be permitted in U.S.– U.S. reactors have containment structures; Chernobyl did not 56 died at the time of the accident - all were on-site plant andemergency workersUN study estimates 4,000 thyroid cancers are expected tooccur, but few deaths– Thyroid cancer is one of most curable with survival rate of 99%– No evidence of increase in leukemia or other cancersChernobyl death toll has been greatly overstated13

Nuclear Myths: Aging PlantsMythAs nuclear plants age,they become more riskyTruthSafety and reliability ofnuclear plants haveimproved over timeNRC Significant EventsAnnual industry average per plant1.00.80.6NRC Information Digest0.40.20.088899091929394959697989900010203NRC reportable events are virtually zero14

Nuclear Myths: CancerTruthNo increased risk of cancerfor people living nearnuclear energy plantsMythNuclear energy plantscause cancer Nuclear plant workers have LOWER mortality than Americansoverall– 35% lower for all cancers– 66% lower for all non-cancer deaths Americans receive significantly more radiation from naturalsources than from nuclear energy plants– Average resident gets 360 millirem a year from natural sources– Average nuclear energy plant worker receives 160 millirem a year– The limit at plant fence is 5 millirem a yearNuclear Energy Institute“(There is) no general increased risk of death from cancer for peopleliving in 197 U.S. counties containing or closely adjacent to 62 nuclearenergy facilities.”National Cancer Institute Report,Journal of the American Medical Association, 199115

Nuclear Myths: Terrorist TargetsMythNuclear energy plants areterrorist targetsTruthNot attractive targets due tostrong security andreinforced structures Nuclear energy plants have the highest security in Americanindustry– Well-armed, trained security forces– Strong physical security barriers– Continuous link to Department of Homeland Security and locallaw enforcement Established response procedures and contingency plans“[Nuclear power plants] are probably our best-defended targets. There ismore security around nuclear power plants than anything else we’vegot. Its infrastructure, especially against these kinds of terrorist threats,John Hamre, President, Center for Strategic & International Studiesis extremely good.”Other industrial facilities are far more susceptible16

Nuclear Myths: Nuclear WeaponsMythNuclear energy will cause aproliferation of nuclearweapons TruthCommercial plants do nothave bomb-grade materialsWeapons grade uranium 235 must be highly enriched– Nuclear fuel is only 5% pure uranium 235 It is difficult and expensive to enrich uranium– Requires large nationalized industrial complexes It is difficult and expensive to obtain plutonium from spent fuel– Spent fuel is highly radioactive It is not easy to divert spent fuel for other purposes– Britain, France, Japan, Russia are reprocessing their fuel– Plutonium can be recycled into new fuel - best way to dispose of itIt is easier to enrich natural uranium17

Nuclear Myths: High Operating CostMythNuclear energy is too costlyTruthNuclear is very competitivewith other generationGeneration Costs9.08.07.06.02005 CostsNuclear 1.72Coal 2.21Gas 7.51Oil 8.095.04.03.02.01.00.019951996Nuclear Energy ar is the lowest of all (except hydro)18

Nuclear Myths: New Plants Cost ProhibitiveMythNew nuclear is too expensive,not competitive with fossilNew Nuclear (LWR)TruthMIT shows nuclear energy isvery competitiveOpportunity /MWh 67-1255Reduce construction cost 2000 to 1500/KWReduce construction time5 to 4 years-253Reduce O&M, including fuel 15 to 13/MWh-251Reduce cost of capital15% to 12% equity-942Increase capacity factor85% to 90%-240Carbon Tax Effect 0/ton 50/ton 100/ton 200/tonPulverized Coal42546690CCGT (Low Gas 3.77/ MCF)38434859CCGT (Moderate Gas 4.42/MCF)41475262CCGT (High Gas 6.72/ MCF)56616777The Future of Nuclear Energy, MITNuclear is competitive with no carbon restrictions,and very competitive with carbon restrictions19

Nuclear Myths: Low ReliabilityMythNuclear energy is not reliableTruthU.S. nuclear generation isthe most reliableCapacity Factor at 103 Plants80-04; %10090.5%9080706050808284 86Nuclear Energy Institute889092949698000204Capacity factor increase at 103 plants in the last 15 years isequivalent to building 26 new 1,000MW plants20

Nuclear Myths: EnvironmentMythNuclear energy is bad forthe environmentTruthNuclear energy is improvingthe environment U.S. nuclear energy plants avoided tons of emissions in 2004– 3.43 million tons of sulfur dioxide– 1.11 million tons of nitrogen oxide– 700 million tons of carbon dioxide U.S. nuclear energy plants avoided carbon emissions equal to94% of U.S. auto emissions (138 million cars) World wide, 440 nuclear energy plants save more than twice theNuclear Energy InstituteKyoto Accord carbon targets annuallyNuclear power reduces air pollution and greenhouse gasesby displacing other generation21

Nuclear Myths: Greenhouse GasesTruthNuclear emits very littlegreenhouse gassesMythNuclear emits significantgreenhouse gasesLife Cycle CO2 Emissions AnalysesTonnes 915NuclearHydroBiomassWindSolar PVGeothermal0CoalNatural Gas"Life-Cycle Assessment of Electricity Generation Systems and Applications for Climate Change Policy Analysis," PaulJ. Meier, University of Wisconsin-Madison, August, 2002Nuclear energy is on par with renewables22

Nuclear Myths: Nuclear WasteMythThere is no solution tonuclear wasteTruthDeep geologic repository is avery good solutionYucca Mountain Technically sound– 1,000’ below ground– Repository in solid rock– 1,000’ above water table Remote location on NevadaTest Range Current repository in NMWaste Isolation Project (WIP)Nuclear Energy InstituteSpent nuclear fuel in one remote location is appropriate solution23

Nuclear Myths: Massive Amounts of WasteMythThere are huge volumes ofnuclear wasteYou could stack all spent fuel from 40years of operations (103 plants) on afootball field about 5 yards deep Reprocessing would reduce wasteto one end zoneTruthSpent fuel is small involume, easily managedSpent Fuel from 40 years of Operations (103 plants) 5 Yards Deep48,000 Tons– Vastly decreases volume– Converts long-lived isotopesinto short-lived ones (10,000Years Æ 300 Years)– Extends uranium fuel Other countries ARE reprocessingWith Reprocessing2.4 YardsDeepNuclear Energy InstituteU.S. should reprocess to reduce volume and reclaim the 96%fuel that is unburned in our once-through fuel cycle24

Nuclear Myths: Waste TransportationMythNuclear waste cannot betransported safelyTruthSpent fuel is being shippedsafely by truck and rail today 3,000 shipments for 1.7 million miles in U.S. already (U.S. DOD)– No container has leaked or cracked– No radiation released Shipping container design is tested and tough– 30-foot free fall to unyielding surface (120 mph head-on collision)– Puncture test is a 40-inch fall onto vertical steel rod 6” in diameter– 30-minute exposure to fire (1475 oF), then submerged in 3 feet ofwater 8 hrs Approved transportation routes with detailed planning– Law enforcement support– Emergency response support and secure stopover facilitiesNuclear Energy InstituteSpent fuel can be and is being safely shipped25

Nuclear Myths: RenewablesMythRenewables are better thannuclear energyLand required for emissions-free generationof 1,000 MWTruthRenewables are good, butnuclear energy is moreeconomical, dependable,and uses much less landMethodRequirement/ DescriptionLand Area (sq. miles)Photovoltaic100 km2 @ 10% efficiency40Wind3,000 Wind Turbines @ 1 MW ea.Biogas60,000,000 pigs or 800,000,000 chickensBioalcohol40-70?6,200 km2 of sugar beets2,4007,400 km2 of potatoes2,80016,100 km2 of corn6,200272,000 km2 of wheat104,000Bio-oil24,000 km2 of rapseed9,000Biomass30,000 km2 of wood12,000Nuclear 1 km21/3We need to recognize the limits of renewables26

Nuclear Myths: Environmental SupportTruthLeading environmentalistsworldwide are turning tonuclear energyMythEnvironmentalists don’tsupport nuclear energy“Nuclear energy is the only non-greenhouse gas-emitting power source thatcan effectively replace fossil fuels and satisfy global demand.”Patrick Moore, Founder Of Greenpeace,Chair and Chief Scientist of Greenspirit“If we NIMBY anywhere and anytime, we should not expect the utilityindustry to provide electricity to everyone, everywhere, all of the time. If webelieve that global warming is a real threat to our planet, then the very bestway to provide baseload electricity is through emission-free nuclearNorris McDonald, Presidentpower.”African American Environmental Assoc.“Nuclear energy is the only green solution.”James Lovelock, London geophysicist who developedthe Gaia Theory on which the Greenhouse Effect is basedNuclear is clean, green energy27

Nuclear Myths: Out of FavorMythAmericans don’t wantnuclear energyTruthAmericans favornuclear energyAmericans who favor or oppose use of nuclear energy83-06 (Annual averages until 04); %80Favor68%60Oppose4029%20838587Nuclear Energy Institute89919395980002Oct-04 Mar06There is strong nuclear energy support and it is increasing28

What Has ChangedSince We Built NuclearPlants The First Time29

The Industry Has Learned From the PastPast failures include 1. Nuclear Regulation – Uncertainty post-TMI2. Plant Design – Individual/unique designs3. Construction – Over schedule and budget4. Owner/Operations – Immature industry5. Economics – Recession and high inflationThese conditions have changed30

1. Nuclear RegulationThen 2-step process (10CFR 50)Now 1-step process (10CFR 52)– Combined Constructionand Operating License– Construction thenOperating License Evolving requirements Stable requirements Issues raised repeatedly Issues raised only once Few trained in process Many trained in processNew one-step licensing significantly reduces risk31

2. Plant DesignThenNow New un-proven designs Proven designs Individual unique designs Standard designs– Numerous changes– Custom plants– Pre-certified designs– Standard, identical plants Pre-computer engineeringmethods Automated designprocesses Analog technology Digital technologyNew standard designs enable evolutionary technology32

3. ConstructionThenNow Multi-prime contractors Turnkey EPC approach Design as you construct Design 85% complete atstart of construction On-site stick built Modular techniques Limited scheduling tools Sophisticated schedulingsoftware Manual document/datacontrol Automated document/datacontrolNew construction methods minimize construction time and risk33

4. Owner/OperationsThenNow Small, individual owneroperators Large, consolidated fleetoperators Low quality standards High quality assurance Poor industrycommunications Well connected industry(INPO/WANO) Immature industry Mature industry– Primarily fossil operators– Low capacity factors– High operating costs– 30 years experience– 90% capacity factors– Low, stable costMature industry offers proven track record34

5. EconomicsThenNow Double digit interest rates Single digit interest rates Local rate compactsapproved after-the-fact Local rate compactspre-approved– CWIP in rate base– Stable solid fuel benefits– Phased-in rate plansmitigate rate shock No environmentalrecognition Recognized greenhousegas benefit First of kind costs andrisks Federal incentives– Construction delays– Financial stress– Risk insurance– Loan guarantees– Production tax creditEnergy Policy Act/local rate compacts reduce costs and risks35

Why the Nuclear-H2 Partnership? Large Scale, Economical H2 SourceEmissions-Free Production of H2Stable Fuel CostsEnergy SecurityPreserves Natural Gas & OilHelps Maintain Domestic Industry BaseStrengthens U.S. Economy36

Nuclear energy will cause a proliferation of nuclear weapons. Truth. Commercial plants do not have bomb-grade materials . It is easier to enrich natural uranium. Nuclear Myths: Nuclear Weapons. 18. Nuclear Myths: High Operating Cost. Nuclear is the lowest of all (except hydro) Myth.

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