1. Liquid-Fluoride Thorium Reactor Development Strategy Kirk Sorensen Flibe Energy Thorium Energy Conference 2013 October 28, 2013

2. Impending Coal-Fired Plant Retirements Large numbers of coal-fired power plants are also facing retirement, particularly in the Ohio River Valley and in the Carolinas.

3. EPA regulations are helping drive coal retirement The implementation of these regulations makes smaller, older coal plants inefficient and uneconomical, resulting in the loss of over 27GW. The loss of power places an urgency on utilities to plan for new, clean power solutions ahead of 2017. The window to plan for new clean generation sources fi ts perfectly with SMR development and offers a market opportunity of over $30bn for coal replacement alone.

4. “Renewable” options are limited in these regions

5. New reactors are under construction in the US and across the world.

6. The US Nuclear Retirement “Cliff” Beginning in 2028, nuclear power plant retirements will increase dramatically.

7. DOE sees Industry Leading Future Nuclear  “In the United States, it is the responsibility of industry to design, construct, and operate commercial nuclear power plants.” (pg 22)  “It is ultimately industry’s decision which commercial technologies will be deployed. The federal role falls more squarely in the realm of R&D.” (pg 16)  “The decision to deploy nuclear energy systems is made by industry and the private sector in market-based economies.” (pg 45)

8. Modular construction of nuclear reactors in a factory environment has become increasingly desirable to reduce uncertainties about costs and quality. Liquid-fluoride reactors, with their low- pressure reactor vessels, are particularly suitable to modular construction in a factory and delivery to a power generation site.

9. One-Fluid 1000-MWe MSBR Image source: ORNL-4832: MSRP-SaPR-08/72, pg 6

10. Uranium Separation Rare Earth Thorium Sep From Protactinium/Uranium Pa Decay/U Separation Rare Earth Separation Gaseous Fission Products/Nobel Metals The Single Fluid Salt Processing Has Several Separation Steps

11. Two-Fluid 250-MWe MSBR: August 1967 ORNL-4191, sec 5 ORNL-4528, sec 5

12. Two-Fluid 250-MWe MSBR: August 1967 ORNL-4191, sec 5 ORNL-4528, sec 5

13. How does a fluoride reactor use thorium? Core Fluoride Volatility Fluoride Volatility Vacuum Distillation Blanket Uranium Absorption and Reduction Recycle Fertile Salt Recycle Fuel Salt Fuel Salt Fertile Salt UF 6 UF 4 UF 6 Two-Fluid Reactor Fission Product Waste

14. ORNL 1967 Two-Fluid 250-MWe Modular Reactors ORNL-4528, pg 20

15. 1967 ORNL Modular MSBR, Modern Renderings

16. Two-Fluid MSBR Dual Module Isometric View

17. Two-Fluid MSBR Dual Module Front View

18. Two-Fluid MSBR Reactor Module and Core Cutaway

19. Flibe Energy was formed in order to further develop liquid- fluoride reactor technology and to supply the world with affordable and sustainable energy, water and fuel.

20. We believe in the vision of a sustainable, prosperous future enabled by liquid-fluoride reactors producing electricity and desalinated water.

21. Located in Huntsville, Alabama

22. Water, Rail, and Air Freight Access to the World Waterways to Gulf of Mexico and US Interior International Air Freight Extensive Rail Network

23. Oak Ridge—birthplace of thorium/fluoride tech  Graphite Reactor—first thorium/U233 property measurements  Aircraft Reactor Experiment—first molten-salt reactor  Molten-Salt Reactor Experiment—20,000+ hours operation

24. Proximity to Oak Ridge National Laboratory  Accessible by the Tennessee River  340km by road  Some MSRP retirees still live in area

25. Combustion Gas Turbine Technology established technology modular low-risk

26. Liquid-fluoride reactor produce high-temperature thermal power, enabling the use of new power conversion system technologies that reduce size and cost.

27. Nuclear-Heated Gas Turbine Propulsion Liquid-Fluoride Reactor

28. The turbine drives a generator creating electricity Hot fuel salt The gas is cooled and the waste heat is used to desalinate seawater Hot coolant salt Warm coolant salt Warm fuel salt Hot gas Warm gas Salt / Salt Heat Exchanger Salt / Gas Heat Exchanger Turbine Compressor How does a fluoride reactor make electricity? Reactor containment boundary

29. How does a fluoride reactor use thorium? Vacuum Distillation Fission Product Waste Thorium tetrafluoride 238U Core Blanket Recycled 7LiF-BeF2 External “batch” processing of core salt, done on a schedule Fluoride Volatility Hexafluoride Distillation MoF6, TcF6, SeF6, RuF5, TeF6, IF7, Other F6 F2F2 Uranium ReductionFluoride Volatility UF 6 H2H2 HF HF Electrolyzer Fertile Salt Recycle Fertile Salt Fuel Salt Recycle Fuel Salt UF 6 “Bare” SaltxF 6 Uranium Absorption- Reduction

30. Liquid fuels enable enhanced safety  In the event of TOTAL loss of power, the freeze plug melts and the core salt drains into a passively cooled configuration where nuclear fission and meltdown are not possible.  The reactor is equipped with a “freeze plug”—an open line where a frozen plug of salt is blocking the flow.  The plug is kept frozen by an external cooling fan. Freeze Plug Drain Tank

31. Today’s Nuclear Approach Uranium 0.3% (depleted) 0.7% (natural) 3-5% (LEU) 93% (HEU) ThoriumPlutonium/TRU Uranium Mill LEUO2 Fuel Fabrication Facility NUO2 to NUF6 Conversion Facility Uranium Enrichment Facility Uranium Mine LEUO2-Fueled Light-Water Reactor Highly-Enriched Uranium Stockpiles Weapons-Grade Plutonium Depleted Uranium Stockpiles HEU Downblending Facility Yucca Mountain Facility Reactor-Grade Plutonium NUO2 = Natural Uranium Dioxide NUF6 = Natural Uranium Hexafluoride LEUO2 = Low-Enrichment Uranium Dioxide Existing U233 Inventory Thorium Stockpiles

32. Conventionally-Proposed Nuclear Approach Uranium 0.3% (depleted) 0.7% (natural) 3-5% (LEU) 93% (HEU) ThoriumPlutonium/TRU Uranium Mill LEUO2 Fuel Fabrication Facility NUO2 to NUF6 Conversion Facility Uranium Enrichment Facility Uranium Mine LEUO2-Fueled Light-Water Reactor Highly-Enriched Uranium Stockpiles Weapons-Grade Plutonium Existing U233 Inventory Depleted Uranium Stockpiles HEU Downblending Facility Yucca Mountain Facility NUO2 = Natural Uranium Dioxide NUF6 = Natural Uranium Hexafluoride LEUO2 = Low-Enrichment Uranium Dioxide MOX = Mixed Oxide Fuel (contain plutonium) MOX Fuel Fabrication Facility MOX-Fueled Light-Water Reactor Aqueous Reprocessing Plant Thorium Stockpiles Dispose in WIPP

33. Transition to Thorium Proposed Nuclear Approach Uranium 0.3% (depleted) 0.7% (natural) 3-5% (LEU) 93% (HEU) ThoriumPlutonium/TRU Uranium Reserves and Imports LEUO2-Fueled Light-Water Reactors Highly-Enriched Uranium Stockpiles Weapons-Grade Plutonium Stockpiles U233 Inventory Depleted Uranium Stockpiles TRU-Fueled Liquid-Chloride Reactors XUO2 Fluorination Facility Liquid-Fluoride Thorium Reactors (U233 start) Liquid-Fluoride Thorium Reactors (HEU start) DUF6 to DUO2 Conversion Facility Underground Burial Thorium Stockpiles & Rare Earth Mining Reactor-Grade Plutonium DUO2 TRU U233 DUF6 F2 U233 LEUO2 = Low-Enrichment Uranium Dioxide XUO2 = Exposed Uranium Dioxide Fuel TRU = Transuranics (Pu, Am, Cm, Np) DUF6 = Depleted Uranium Hexafluoride DUO2 = Depleted Uranium Dioxide F2 = Gaseous Fluorine

34. “During my life I have witnessed extraordinary feats of human ingenuity. I believe that this struggling ingenuity will be equal to the task of creating the Second Nuclear Era.” “My only regret is that I will not be here to witness its success.” —Alvin Weinberg (1915-2006)