USEC Operations and the Portsmouth Gaseous Diffusion Plant

1
Fueling the Nuclear Renaissance
Dennis Spurgeon Executive Vice President Chief
Operating Officer
September 6, 2002
2
From the Past Emerges the Present
3
Positioning for the Future
Acquired Competitively Priced Electricity for
Paducah
Consolidate Enrichment and Shipping Operations
DECREASING COST
Modified Plant Operations and Processes
Downsized Plant and HQ Workforce

THROUGH IMPROVEMENTS IN EFFICIENCY
4
Building Upon Strong Relationships
EXTENDED CRADA
USEC / DOE AGREEMENT
U.S. CENTRIFUGE TECHNOLOGY
5
Bringing on the Staff to Build the Future
Jan- 02
Apr- 02
Jul- 02
Jan- 03
Jul- 03
Oct- 02
Apr- 03
6
Leading the Way to Commercial Deployment
Product
Recycle Operation
Feed
Tails
7
Siting of USECs Lead Cascade is Underway
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Charting the Course for Timely Licensing
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Building on a Strong Foundation

• USECs design takes advantage of gt3B investment
  by DOE
• More than 1300 GCEP machines installed at
  Portsmouth
• 200 SWU/machine demonstrated in GCEP, gt300
  SWU/machine in AGC

GCEP Gas Centrifuge Enrichment Plant Design
used at Portsmouth, shown in pictures above and
to the right AGC Advanced Gas
Centrifuge Design under development by DOE in
the early 1980s
10
Historical Perspective of Centrifuge Performance
TC-12
TC-21
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Conservative Design Approach

• USECs design is conservative well within
  parameters demonstrated by DOE during the 1970s
  and 1980s

Minimum
Design Value
Maximum
Parameter
Speed
Stress
Length
Gas Inventory
Gas Flow Rates
Product Assay
Separative Performance
USEC Design Target
12
Reaping the Benefits of Advancements
Lower Cost Materials
More Efficient Manufacturing Techniques
DECREASING COST
Less Expensive Control Systems

THROUGH ADVANCEMENTS IN PROCESSES MATERIALS
13
No Improvements Needed
USEC TARGET
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Taking the Steps to Lessen Risk
Commercial Plant Project

• Initial plant output of 3.5 million SWU per year
  with expansion capability
• Reliably deliver customer orders

Lead Cascade Project

• Demonstrate reliability
• Provide a solid basis for capital and operating
  cost estimates
• Improve regulatory predictability

Demonstration Project

• Demonstrate performance
• Provide a solid basis for machine cost estimates
• Obtain initial reliability data

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DOE-USEC Agreement
09
10
11
12
Calendar Year
03
04
05
06
07
08
02
Test End Cap
1st Rotor Tube
Performance Demonstration
Begin Centrifuge Testing
Begin K-1600 Refurbishment
Submit NRC License
Begin Lead Cascade Manufacturing
Lead Cascade
Obtain Performance Data
NRC Dockets License
Either Portsmouth Plant
3.5MM SWU/yr
Begin Operations
1MM SWU/yr
NRC Application Submitted
Funding Secure
Commercial Plant
NRC Dockets License
Begin Construction
1MM SWU/yr
3.5MM SWU/yr
Begin Operations
Or Paducah Plant
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The Clock is Ticking and Activities are Underway
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SILEX A Strategic Investment in the Next
Generation of Enrichment Technology
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World Nuclear Power Generation and Capacity (2001)
Worldwide Electricity Generation by Source
Nuclear Generation by Region
Gas 15
Oil 10
Western Europe 36
Hydro 19
North America 32
Nuclear 16
Other 3
Asia 16
Coal 40
Eastern Europe 13
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World Nuclear Power Reactors Under Construction
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Yucca Mountain, TVA and Browns Ferry
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US Nuclear Plant Power Uprates
1977-2002 (cumulative power capacity increases)
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License Renewal Unlocking Additional Value
Announced 2003 Dresden 2, 3 Quad Cities 1,
2 Farley 1, 2 Arkansas Nuclear One Unit 2 Nine
Mile Point 1, 2Cook 1, 2 Browns Ferry 2, 3
2004Brunswick 1, 2 Beaver Valley 1,
2 Davis-Besse Pilgrim 2005 Susquehanna 1,2
Source NEI
23
World Nuclear Expansion
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