® Nuclear Power Asia

15-16 January 2013, Kuala Lumpur

James P. Malone

Chief Nuclear Fuel Development Officer

®

Advanced Metallic Fuel

Technology for Power Uprates

and Longer Fuel Cycles

Nuclear Power Asia

15-16 January, 2013

Kuala Lumpur, Malaysia

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 2

Lightbridge Corporation – Business Segments

Fuel Technology Business

Advisory Services Business

Nuclear Regulation

• Leading regulatory

team from

international

agencies

• Advisory services on

design, development

and management of

nuclear energy

programs according

to highest standards

Nuclear Generation

• Industry leading team

from international

technology & fuel

suppliers, utilities, and

government agencies

• Provide strategies

with comprehensive

plans for new or

expanding nuclear

programs

Thorium-based

Seed & Blanket Design

• Thorium-based,

enhanced

proliferation resistant

nuclear fuel design

• Addresses key

concerns of

proliferation, waste

reduction and fuel

supply

All-Uranium Seed &

Blanket Fuel

• 10-17% power

uprate and longer

fuel cycles in

existing PWRs

• Key Safety

Improvements vs.

existing designs

All-Metal Fuel

• 30% or greater

power uprate in

new build LWRs

• Key Safety

Improvements vs.

existing designs

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 3

Lightbridge Advisory Services

Project

Feasibility

Detailed

Planning National Infrastructure &

Organizational Development

Procurement, Licensing, & Construction Operations

Nuclear

Power

Deployment

Lightbridge

Generation

Services

Lightbridge

Regulatory

Services

Deployment

Strategy

Development

& Planning

Feasibility

Studies &

Economic

Analyses

Program

Management &

Technical

Support

Business

Systems

Performance

Analysis

Development and

Implementation of

National Nuclear

Regulatory Programs

Assist in Setup &

Regulation

Development

Ongoing Assistance for

a Fully-Operational

Regulatory Authority

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 4

Advisory Services

• Lightbridge milestones and experience in

new nuclear programs

– Lightbridge lead consultant for the

United Arab Emirates & Kuwait

– Gulf Cooperation Council (GCC) 6

nations

• Lightbridge selected to explore

areas of mutual civil nuclear

cooperation.

• Lightbridge competencies in both nuclear

generation build and regulatory advisory

services.

Lightbridge – Leading Advisor To Emerging Nuclear Programs

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur 5 ®

Metallic Fuel Technology

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15-16 January 2013, Kuala Lumpur ® 6

Industry Trends in Global Nuclear Markets

Power Uprates And Longer Fuel Cycles Improve The Economics Of

Nuclear Power

• The growth of nuclear new-build is facing major obstacles that need to be

addressed:

– Lower cost of natural gas

– Significant upfront capital expenditures

– Public perception of nuclear safety

– Used fuel disposition

• Power uprates and longer fuel cycles have become a favored industry

option:

– Months to deploy

– Efficient use of capital - overnight cost of under US $1,200 per kW

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 7

Improving the Competitiveness of Nuclear Energy

Levelized Costs1 (US$/MWh)

Environmental (CO2 lbs/MWh)

10% uprate with

Lightbridge metallic

fuel2

Coal Natural

Gas

Wind

Solar

Nuclear

200

150

100

50

250

1. Levelized Cost of Electricity for new generation sources in 2015.

Source EIA “Annual Energy Outlook 2011” and EPRI “Program on Technology Innovation”

2. Operating nuclear power plant uprate with Lightbridge fuel can provide approximately 35 US$/MWh electricity generation costs

0 1,200 2,500

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 8

Nuclear Utility Fuel Advisory Board

• In 2012 Lightbridge formed the Nuclear Utility Fuel Advisory Board

(NUFAB) composed of leading nuclear utilities. The objective and

purpose of the board is to further strengthen dialogue with global

nuclear utilities and provide their input into Lightbridge's nuclear fuel

development and commercialization efforts.

• The initial members of NUFAB include fuel managers from Exelon

Generation Co., Dominion, Duke Energy, and Southern Company.

• Account for 44% of installed US nuclear capacity.

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 9

Evolutionary LWR Fuel Design

Lightbridge’s metallic fuel is derived from

the Russian maritime reactor fuel:

• Uranium-zirconium fuel composition

• High power density

• Ability to withstand high burn-ups in water

cooled reactor

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 10

Lightbridge Metallic Fuel Rod Overview

Cladding

Fuel Core

Displacer • Three-component fuel rod:

– Zr-U Alloy fuel core

– Displacer reduces centerline temperature

and allows for incorporation of burnable

poisons

– Cladding is metallurgically-bonded to fuel

core, no plenum or gas gap

• Helical cruciform geometry

– Increased surface area for heat transfer

– 100% compatible with existing LWRs

• Solid metallic rod

– High thermal conductivity

– Robust fuel rod

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 11

Lightbridge’s Advanced Fuels -Key Fuel Cycle Benefits

Improved Plant

Economics

• Increased revenue and improved operating margins of

existing nuclear power plants

• Reduced total levelized cost per kilowatt-hour for new build

reactors

Increased

Power Output

from Plant

• 10-17% power uprate and longer fuel cycles for existing

PWRs

• Up to 30% power uprate for new build PWRs

• Applicable to BWRs and light water-based SMRs

• Fuel enables the supply chain to deliver more power from the

same capacity

Increased

Supply Chain

Efficiency

• Reduced volume of spent fuel per kWh

• Enhanced proliferation resistance of spent fuel

Improved Spent

Fuel

Management

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 12

Lower

Operating

Temperature

• Average operating temperature of ~ 370 oC, i.e. “cold fuel”; ~

1000 oC cooler than conventional fuels

• Reduces the amount of sensible heat that must be removed at

reactor shutdown

• Improves fission product retention and mitigates fuel swelling

Increased

Heat Transfer

• Higher thermal conductivity improves the rate at which heat

from the fuel can be transferred to the coolant

• Increased fuel rod surface area (~35-40% greater) provides

increased safety margin

• Improved coolant mixing due to helical twist

• Metallurgical bonding of fuel to cladding improves strength

• Fuel rod integrity substantially reduces radioactive source term

in the event of cladding breach

Improved Fuel

Rod Integrity

Lightbridge’s Advanced Fuels -Key Safety Benefits

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ® 13

Fuel

Product

Potential

Markets Key Attributes

Existing

Plants

New

Plants Power Uprate

Fuel Cycle

Length

Spent Fuel

Reduction

(per kWh)

10% Uprate Up to10% 24 months Up to 9%

17% Uprate Up to 17% 18 months Up to 16%

30% Uprate Up to 30% 18 months Up to 25%

Lightbridge’s Power Uprate Fuels

Lightbridge’s Advanced Metallic Fuels Enhance The Business Case For

Nuclear Power

Nuclear Power Asia

15-16 January 2013, Kuala Lumpur ®

Fuel Technology Development

14

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15-16 January 2013, Kuala Lumpur ® 15

Fuel Development & Deployment Timeline

2017 2016 2018 2019 2013 2012 2014 2015 2020

Demonstrate

Full-Length Rod

Fabrication

Complete Test

Reactor

Irradiations

Begin Lead Test

Assembly (LTA)

Operation

Reload Core

Design

Begin Test

Reactor

Irradiation

Experiments

and Detailed

Design

Complete

Regulatory

Licensing of Lead

Test Assemblies

Complete 1st

Cycle of LTA

Operation

Complete 2nd

Cycle of LTA

Operation

2021

Begin Reload

Batch

Operation

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15-16 January 2013, Kuala Lumpur ® 16

Summary

• Power uprates enhance the competitiveness of nuclear power

– Up to 17% increase in existing plants

– Up to 30% in new construction

– Applicable to PWRs, BWRs, and other water cooled reactors

• Lightbridge will continue to build the technical basis for the all-metal fuel

– Demonstration experiments in test facilities to prove fuel behavior

– Lead Test Assembly program to build on results of experiments and tests

– Regulatory review & approval

• Industry-leading advisory service team with substantial international

experience and demonstrated success

Lightbridge – Next Generation Nuclear Fuels