1. Ashley Finan, 2006 Page 1 Nuclear Energy and Oil Sands? Ashley Finan Massachusetts Institute of Technology Department of Nuclear Science & Engineering Life Cycle Assesment Special Nuclear Session November 3 rd, 2006, 1:30pm-3:00pm University of Calgary

2. Ashley Finan, 2006 Page 2 Outline Why a study is needed What it could look like What it will produce What it will require

3. Ashley Finan, 2006 Page 3 Canada’s Oil Sands Industry Goal: To maximize returns in a way that is socially and environmentally responsible Threats –Volatility of natural gas prices –Increasing natural gas demand –Labor and materials shortage –Mounting GHG emissions –Other environmental damage

4. Ashley Finan, 2006 Page 4 Nuclear Energy Brings Challenges Public and political support Licensing and construction difficulties Ownership/business model Nuclear safety and liability Nuclear waste and decommissioning Is introducing it worth the trouble?

5. Ashley Finan, 2006 Page 5 Research Proposal “Integration of Nuclear Power with Oil Sands Extraction Projects in Canada” A cooperative effort between MIT and the University of Calgary Life Cycle Assessment Group. Time Frame: November 2006 – May 2007 Goal: Assess the feasibility, economics, and life cycle costs and benefits of nuclear power use in bitumen extraction and processing.

6. Ashley Finan, 2006 Page 6 Objectives Define a range of commercial applications including steam production for SAGD, power production, and hydrogen production in support of bitumen upgrading facilities. Define the nuclear safety issues and regulatory requirements that must be resolved to support project implementation for each reactor technology. Establish the basis for public discussion and public policy formation for key issues related to the application of nuclear technology in the oil sands business.

7. Ashley Finan, 2006 Page 7 Products A feasibility determination for a variety of proposed nuclear integration scenarios. A white paper that will serve to enhance public and political discussion and hasten the process of regulatory review.

8. Ashley Finan, 2006 Page 8 White Paper Content (Provisional) Alberta Oil Sands Overview Update on Bitumen Extraction techniques –Surface mining –SAGD –CSS –CO 2 flooding –Others Bitumen Processing and transport update

9. Ashley Finan, 2006 Page 9 Provisional Content, Cont’d. State of the Industry in Alberta –Challenges facing the industry –Required output from an energy source Available sources of heat and electricity –Wind, hydroelectric –Natural gas, coal, petcoke, bitumen –Nuclear

10. Ashley Finan, 2006 Page 10 Provisional Content, Cont’d. Evaluating Reactor options –Obtain nuclear and oil industry input and ideas. –Define case studies of interest using the CANDU, the Areva HTR, and the PBMR. Configuration 1 –Thermal Hydraulic Feasibility –Practical Feasibility (water, coolant, construction, transportation, workforce) –Economic Feasibility

11. Ashley Finan, 2006 Page 11 Provisional Content, Cont’d. –Safety risks –Socioeconomic and environmental effects (natural gas availability, CO2 emissions, nuclear waste) –Pre-requisites for implementation (public and political will, regulatory action and resources, safety studies) –Business Model Contractual Issues; owner/investor/customer structure post-oil sands utilization and decommissioning

12. Ashley Finan, 2006 Page 12 Provisional Content, Cont’d. Configurations 2 through n. Overview of upcoming technologies that would compete with the proposed nuclear methods Life Cycle comparison of nuclear-fueled proposals with alternate proposals.

13. Ashley Finan, 2006 Page 13 Resources Required Funds Input Data –Bitumen extraction process data (MWe, MWth, steam quality, temp, pressure, rate, hydrogen needs, etc.) – Nuclear reactor operating points (steam cycle pressure, temp, capacity, etc.) –Maintenance schedules –Basic economic figures Advisory committee

14. Ashley Finan, 2006 Page 14 Summary & Questions Nuclear energy addresses some of the issues that the oil sands industry is facing, but introduces its own as well. To evaluate the costs and benefits of the introduction of nuclear, a study should be done that considers oil industry requirements and conditions, as well as the current readiness of the nuclear industry. Should the options look promising, the white paper will serve as a starting point for discussions with the public and the regulator.