Nuclear Power Industry and Market Analysis

Fuel Technology Value Proposition

	10-17% power uprate and longer fuel cycles for existing PWRs; and Up to 30% power uprate for new build PWRs.
	Increased revenue and improved operating margins of existing nuclear power units; Reduced total levelized cost per kilowatt-hour for new build reactors, including 50-98% reduction in incremental capital cost per kW vs. new build; and Increased competitiveness of nuclear power versus other energy sources.
	Enables the existing nuclear fuel supply chain to deliver more power from the same capacity; and Reduced fuel fabrication costs.
	Reduced volume of used fuel; and Enhanced proliferation resistance of used fuel.

INCREMENTAL VALUE CREATED BY LIGHTBRIDGE’S POWER UPRATE FUELS

Power uprates are an efficient use of capital to increase revenue generation in nuclear power plants as they can be performed in a relatively short time frame (months versus years for new plant construction). No plant modifications need to be performed to utilize Lightbridge’s fuels at current plant power output. The extent of plant modifications that must be performed is dependent on the level of power uprate. The table below compares the projected incremental capital cost of plant modifications for Lightbridge’s power uprate fuels with the cost of a new build reactor.

The projected incremental annual net operating cash flows and return on investment for a nuclear power plant at various wholesale prices of electricity generated as a result of using Lightbridge’s power uprate fuels are shown in the table below.

The cash flow values shown above are incremental operating cash flows to a utility, net of incremental fuel costs due to increased power output and technology licensing fees payable to Lightbridge and the fuel vendor. The economic benefit would increase by an estimated $5-10M per year for an 1,100-MWe plant for a Lightbridge fuel variant with a 24-month fuel cycle due to increased revenue and cost savings associated with fewer reactor outages. Also, the above figures only include the projected benefit to a nuclear utility from the power uprates. It does not include the expected added benefits of Lightbridge’s fuels costing less to manufacture and the added benefit of less used fuel to handle per kilowatt-hour of electricity generated.