Business Development

Future project implementation requirements, design concepts and economic models of potential opportunities continue to evolve.

The objective is to secure preliminary commitments from partners and prospective customers for technology development and nuclear technology licensing support. These activities are the preliminary phase for future design and construction projects and ultimately flow through to future fleet sales. Associated imperatives are to develop a better understanding of what will be needed to secure investment in commercial projects.

PBMR Process Heat Plant (PHP) applications propose to displace fossil-fuelled heat generation by PBMR nuclear heat generation. Such applications are projected to be economically competitive with natural gas, and potentially with coal-fired applications when CO2 credits are considered. The nuclear option offers a solution to industrial greenhouse gas emission problems, and is cost-competitive with technology alternatives, including carbon capture and sequestration.

The temperature and thermal power of heat delivered from two PBMR reactors offer a good match to the requirements of leading applications. The heat delivered to the battery limits by the proposed nuclear heat supply system in the individual process applications, comprises hot helium and/or steam at heat delivery temperatures up to 900 degrees Celsius. The simplified system configurations and reduced reactor outlet temperatures (ROTs) required for early process heat applications will allow for an upgrade of the reactor power from 400 MWt to 500 MWt without significant changes to the reactor design.

No further technology development or proof of concept is required, particularly for the intermediate ROT of 750 degrees Celsius required for process steam and cogeneration. PHP applications are thus available to be deployed within the planning horizons of the oil and process industries.

PBMR is currently the most advanced technology in a new and developing High-Temperature Reactor (HTR) market.

Appreciation of the safety and application advantages of HTGR technology is spreading and gaining acceptance in the global energy market. Research and development programmes in China, Korea and Japan focus on HTGR technology. In the USA, the Department of Energy is funding the NGNP project to advance Generation IV HTGR technology in the context of process heat for hydrogen production. Work on the main preconceptual design contract awarded to the Westinghouse/ PBMR/Shaw team was completed in June 2007 and has been followed up by ongoing engineering studies through the 2007/2008 financial year. The studies were aimed at further advancing the concept towards the design and construction phases of an NGNP demonstration project. It is expected that funding levels for this project will be increased to support initiation of the next phase of the project by the end of 2008.

PBMR plans to continue involvement in this project, again as part of the Westinghouse team, which is being expanded to include additional members, the most important being Toshiba, Doosan (South Korea) and Air Products (US).

Continued participation in the NGNP programme facilitates further development of a US-based team that promotes PBMR technology, while also expanding and enhancing the development of PBMR markets in the US and worldwide.

Other benefits include the following:

• The commercial and technical network, represented by key US team members, provides immediate access to a new and robust process heat and hydrogen client base, which extends beyond the electric market that is well known to Westinghouse.
  
• The award of this work to the Westinghouse/PBMR/ Shaw team provides a significant qualitative benefit to PBMR. The United States Department of Energy’s (DOE’s) recognition of the PBMR as a qualified design concept and a real programme provides substantial credibility to the PBMR programme. This award will be seen as ratification of the ongoing progress that is being made in South Africa on the base technology.
• The contract will also strengthen PBMR’s position with suppliers, competitors and potential investors and clients as a valuable and credible programme.

A current internal analysis of the global nuclear market indicates that potential sales of a substantial number of PBMR reactors for both electrical and process heat applications are possible. These sales need to be concluded within the particular circumstances presented by the market and market forces, the competitive advantages of PBMR, competitors and appropriate sales models for each jurisdiction.

A broad marketing strategy was formulated to guide marketing activities given the long-term nature of the project. An active target market list has been compiled and will be updated regularly with strategic information.

The ultimate goal of any marketing strategy is to identify and convince customers, and to develop a saleable value proposition.