Celebrating excellence in the energy industry

STATE ATOMIC ENERGY CORPORATION “ROSATOM”

22 September, 2016

South Africa

Viktor Polikarpov

Regional Vice President, Sub-Saharan Africa

Rusatom International Network

1

RECOGNISING EXCELLENCE IT IS HUGELY IMPORTANT TO COME TOGETHER AT EVENTS SUCH AS THESE TO RECOGNISE

EXCELLENCE IN THE ENERGY INDUSTRY! ENERGY WILL BE THE KEY DETERMAINING FACTOR

IN AFRICA’S FUTURE GROWTH AND DEVELOPMENT.

2

WHY IS ENERGY SO IMPORTAT IN AFRICA? AFRICA’S MAJOR HURDLE TO SUCCESS IS ITS ONGOING ENERGY CRISES.

OVER 620 MILLION PEOPLE HAVE NO ACCESS TO A RELIABLE SOURCE OF ELECTRICITY

IN SUB-SAHARAN AFRICA.

• 25 OF 54 NATIONS DECLARED TO BE IN AN ENERGY CRISES BY THE

WORLD BANK.

• TOTAL INSTALLED CAPACITY OF SSA, EXCLUDING SOUTH AFRICA IS

EQUIVALENT TO ARGENTINA

• WOOD FIRES FOR COOKING ACCOUNT FOR 600 000 DEATHS

ANNUALLY IN SSA

• HOUESEHOLDS IN SSA LIVING ON LESS THAN $2.50 A DAY BUT

COLLECTIVELY SPEND $10 BLN EVERY YEAR ON FOSSIL FUELS

• 40% OF ALL FORESTES IN UGANDA HAVE BEEN CUT, AT A PACE OF 900

SQ/K EVERY YEAR

3

HOW TO DETERMINE THE ENERGY MIX?

THE ENERGY TRILEMMA ENVIRONMENT

ECONOMICS SECURITY OF SUPPLY

4

NUCLEAR ESSENTIAL TO AFRICAN ENERGY MIX

NUCLEAR IS CURRENTLY THE CHEAPEST, MOST ENVIRONMENTALLY FRIENDLY AND SUSTAINABLE

SOURCE OF ELECTRICTY AVAILABLE ON THE PLANET

THE ENTIRE WORLD IS GOING NUCLEAR

• CURRENTLY 435 OPERATIONAL NUCLEAR REACTORS IN THE

WORLD IN 31 COUNTRIES

• 70 NEW REACTORS UNDER CONSTRUCTION

• 60% OF THE WORLDS POPULATION LIVE IN COUNTRIES WITH

NUCLEAR GENERATION – SET TO INCREASE TO 70% BY 2030

• PLANS TO BUILD 158 NEW REACTORS ACROSS THE GLOBE TO

COMBAT CLIMATE CHANGE

• PLANS TO DOUBLE THE CURRENT INSTALLED CAPACITY OF

362GWe TO 700 GWe BY 2050.

AFRICA HAS BEEN NUCLEAR SINCE 1950

THE FOLLOWING COUNTRIES HAVE RESEARCH

REACTORS

• DRC

• SOUTH AFRICA

• NIGERIA

• GHANA

• EGYPT

• ALGERIA

• MOROCCO

• LIBIA

5

6

INDUSTRY INVOLVEMENT

ECONOMIC GROWTH

ENERGY SECURITY

LOW CARBON FOOTPRINT

STABLE LCOE THROUGHOUT THE WHOLE 80-YEAR LIFE CYCLE, RESULTS IN EFFICIENT COST MANAGEMENT;

FORESEEABLE VOLUME OF POWER GENERATION ALLOWS FOR FORWARD PLANNING OF POWER SUPPLY TO THE GRID THROUGHOUT THE WHOLE LIFE-CYCLE;

NO RISK OF TECHNICAL MAINTENANCE COST INCREASE;

COST OF GENERATION IS BARELY AFFECTED BY FUEL PRICE FLUCTUATIONS;

LOW LEVEL CARBON FOOTPRINT AND GREENHOUSE GAS EMISSIONS;

NUCLEAR POWER PLANT PROJECT IMPLEMENTATION IS ACCOMPANIED BY MASSIVE BENEFITS FOR THE LOCAL AND NATIONAL ECONOMY.

WHY NUCLEAR?

NUCLEAR POWER BRINGS MORE THAN JUST ENERGY

THERE ARE NUMEROUS SOCIO-ECONOMIC GAINS THAT COME FROM

THE DEVELOPMENT OF NUCLEAR ENERGY

JOB CREATION ELECTRICITY EXPORT

OPPORTUNITIES

DEVELOPMENT OF

SCIENCE AND

EDUCATION

TAX PAYMENT

GROWTH

ENERGY SECURITY

DEVELOPMENT

COUNTRY’S REPUTATION

GROWTH AT REGIONAL

LEVEL

SOCIAL

INFRUSTRUCTURE

DEVELOPMENT

INDUSTRY AND

CONSTRUCTION SECTOR

DEVELOPMENT

GROWTH OF DEMAND IN

OTHER SECTORS OF

ECONOMY

7

WHY ROSATOM? UNPARALLED IN THE WORLD

ROSATOM IS THE RUSSIAN FEDERATION NATIONAL NUCLEAR CORPORATION WITH 70 YEARS

OF EXPERIENCE IN THE NUCLEAR FIELD

Uranium Mining Enrichment and

Conversion

Fuel

Fabrication

NPP Construction, Operation, and

Maintenance

Back End

Equipment

Manufacturing

Power Generation

Nuclear

Medicine

Gamma

Irradiation

Isotopes

Outer space Nuclear

Power Units

Research

Reactors

Energy sector

8

Nuclear Icebreaker

Fleet

Non-Energy sector

Education & Training

Theoretical and Applied Science Nuclear Infrastructure and Regulation

ROSATOM’S COMPREHENSIVE APPROACH

ROSATOM

INTEGRATED SOLUTION

ENERGY SOLUTION

KNOWLEDGE, SKILLS,

HUMAN CAPITAL

INDUSTRIAL

SOLUTION

FINANCIAL

SOLUTION

REGULATION,

INFRASTRUCTURE AND

PUBLIC ACCEPTANCE

PERSONNEL EDUCATION & TRAINING (INCL.

TRAINEESHIP ON NPP SITES)

R&D BASE DEVELOPMENT

NPP OPERATION EXPERIENCE EXCHANGE

BOO PROJECTS IMPLEMENTATION

STATE CREDITS

PARTNERSHIP PROJECTS

NPP EQUIPMENT MANUFACTURING, SERVICE

& WORKS LOCALIZATION

TECHNOLOGY TRANSFER

CERTIFICATION OF LOCAL SUPPLIERS,

PARTICIPATION IN ROSATOM THIRD

COUNTRIES PROJECTS

CREATION AND DEVELOPMENT OF

REGULATORY BASE

NFC FACILITIES CONSTRUCTION

SNF & RW MANAGEMENT

SOCIAL-POLITICAL PROGRAMMES

SUPPORT

MODERN NPP DESIGN (GEN III+)

NPP CONSTRUCTION AND LIFE CYCLE MANAGEMENT SUPPORT

(FUEL, SERVICES, MODERNIZATION)

OPERATION & MAINTENANCE

SAFETY - BASIC PRINCIPLE

9

ROSATOM GLOBAL OPERATIONS

Europe

Finland, Sweden, the Netherlands, Belgium, Germany, France, Spain,

GB, Switzerland, Czech Republic, Slovakia, Hungary, Lithuania,

Bulgaria, Slovenia

North America

USA, Canada, Mexico

Latin America

Venezuela, Argentina, Brazil

CIS

Russia, Ukraine, Kazakhstan, Belorussia, Armenia

Asia

China, Japan, South Korea,

Vietnam, India, Bangladesh,

Mongolia

MENA

Turkey, Libya, Morocco, Algeria,

Egypt, Iran, Jordan

Australia

Africa Namibia, South Africa, Tanzania

MORE THAN 40 COUNTRIES SPANNING 5 CONTINENTS

10

ROSATOM INTERNATIONAL NETWORK

Singapore

Paris Astana

Prague

Bratislava

Budapest

Kiev

Johannesburg Rio-de-Janeiro

Beijing

Mumbai

Dubai

New York

11

CONTACT INFORMATION:

E-MAIL: INFO@ROSATOM.CO.ZA

PHONE: 011 784 2554/2552/2469

ROSATOM AFRICA PTY LTD

7TH FLOOR SANDTON CITY OFFICE TOWER 5TH STREET, SANDOWN, JOHANNESBURG

ROSATOM KEY FACTS & FIGURES

350 ENTERPRISES

over 255 000 EMPLOYEES

36 NPP UNITS (28,3 GWe) IN OPERATION IN RUSSIA

44 NPP UNITS CONSTRUCTION PROJECTS UNDER

IMPLEMENTAION GLOBALLY

$110 .3 BN. IN BACKLOGGED ORDERS

36% SHARE OF THE URANIUM ENRICHMENT GLOBAL MARKET

20% SHARE OF THE GLOBAL RESEARCH REACTORS FLEET

# 1 • IN NEW NPP CONSTRUCTION • IN FAST NEUTRON REACTORS

• IN NUCLEAR ICEBREAKERS

• IN FLOATING NPP

# 2 • NUCLEAR FLEET GLOBALLY

• IN URANIUM DEPOSITS

KEY COMPETITIVE ADVANTAGES

GUARANTEED SUPPLY

OF COMPLETE LIFE-CYCLE PRODUCTS AND SERVICES

IN NUCLEAR POWER

FLEXIBLE CAPABILITIES

OF NPP SUPPLY FROM COMPONENTS AND SERVICES

TO TURN-KEY AND BOO PROJECTS

INNOVATIVE TECHNOLOGIES

PROVEN BY YEARS OF RELIABLE OPERATION AND

CONSTANT DEVELOPMENT

DIVERSIFIED PRODUCT RANGE

STRETCHING FAR BEYOND NUCLEAR POWER

12

ROSATOM IN SUB-SAHARAN AFRICA

GHANA

INTERGOVERNMENTAL AGREEMENT ON THE PEACEFUL USE OF

ATOMIC ENERGY (JUNE 2015)

KENYA

MEMORANDUM OF UNDERSTANDING AND COOPERATION IN

THE FIELD OF PEACEFUL USE OF NUCLEAR ENERGY (MAY 2016)

NIGERIA

MEMORANDUM OF UNDERSTANDING ON PREPARATION FOR

CONSTRUCTION OF NPP (JUNE 2012)

INTERGOVERNMENTAL AGREEMENT FOR NUCLEAR RESEARCH

AND TECHNOLOGY CENTRE (JUNE 2016)

ZAMBIA

INTERGOVERNMENTAL AGREEMENT ON THE PEACEFUL USE OF

ATOMIC ENERGY (JUNE 2016)

SOUTH AFRICA

INTERGOVERNMENTAL AGREEMENT ON THE PEACEFUL

USE OF ATOMIC ENERGY (SEPTEMBER 2014)

13

SUPPLY OF ENRICHED URANIUM FOR KOEBERG NPP

ROSATOM IN KENYA: FRAMEWORK FOR COOPERATION

MAY 30, 2016 – SIGNING OF A MEMORANDUM OF MUTUAL

UNDERSTANDING AND COOPERATION IN THE FIELD OF

PEACEFUL USE OF NUCLEAR ENERGY :

DEVELOPMENT OF KENYAN NUCLEAR ENERGY

INFRASTRUCTURE;

FUNDAMENTAL AND APPLIED RESEARCH;

DESIGN, CONSTRUCTION AND OPERATION OF NUCLEAR

POWER STATIONS AND RESEARCH REACTORS;

PRODUCTION AND USE OF ISOTOPES IN THE INDUSTRY,

MEDICINE AND AGRICULTURE;

HANDLING OF RADIOACTIVE WASTE;

EDUCATION AND TRAINING.

14

ROSATOM IN NIGERIA:

NUCLEAR RESEARCH AND TECHNOLOGY CENTER (NRTC) IN NIGERIA

MAY 30, 2016 – SIGNING OF INTERGOVERNMENT AGREEMENT ON

COOPERATION IN CONSTRUCTION OF THE NRTC IN NIGERIA THAT WILL

PROVIDE BENEFITS:

FOR HEALTHCARE: NEW LEVEL IN STRUGGLE AGAINST CANCER,

NEW OPPORTUNITIES FOR EARLY STAGE DIAGNOSIS AND

TREATMENT VIA PRODUCTION OF RADIOISOTOPES;

FOR AGRICULTURE: PEST AND BACTERIA CONTROL FOR THE INCREASE

OF NATIONAL AGRICULTURAL PRODUCTS’ EXPORT;

FOR SCIENCE: DEVELOPMENT AND CHANCE TO BECOME FRONTIER ON

THE CONTINENT. NRTC GUARANTEES INDEPENDENCE IN REALIZATION

OF SCIENTIFIC AND RESEARCH PROGRAMME .

POTENTIAL NRTC STRUCTURE

Nuclear Research Reactor Multipurpose

irradiation center

Cyclotron

Scientific and human capacity development

labs

Engineering complex (process and support

systems)

15

IRRADIATION TECHNOLOGY IS CURRENTLY USED

IN MORE THAN 40 COUNTRIES WORLDWIDE

16

FOOD PRODUCTS

DECONTAMINATION AND

INSECTS CONTROL IN

STORAGE FOR MORE THAN 60

FOOD ARTICLES

DELAY OF RIPENING AND

SPOILAGE, PREVENTION OF

GERMINATION, EXTENSION OF

SHELF-LIFE DURING FOOD

DISTRIBUTION

“COLD STERILIZATION” OF MEDICAL

SUPPLIES, GLOVES, SYRINGES,

CONTAINERS, RAW MATERIALS AND

OTHER MEDICAL SUPPLIES

REDUCING THE DEPENDENCE OF

FOOD INDUSTRY ON THE CHEMICAL

PESTICIDES (SOME OF WHICH ARE

EXTREMELY HARMFUL TO THE

ENVIRONMENT)

17