Transcript Power - USSABC

track #
U.S.-Saudi Business
Opportunities Forum
Jeffrey S. Merrifield
Senior Vice President, Shaw’s Power Group
Corporate Profile
Founded in 1987, The Shaw Group Inc.® provides premier engineering, design,
construction, maintenance, fabrication and manufacturing services to privatesector and government clients in the energy, chemicals, power, nuclear,
environmental, infrastructure and emergency response markets.
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Name:
Headquarters:
Public corporation:
FY 2009 Revenue:
Backlog:
Number of employees:
Web site
* As of 2/28/10
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The Shaw Group Inc.
Baton Rouge, Louisiana
NYSE Symbol: SHAW
$7.3 Billion
$21.2 Billion*
28,000
www.shawgrp.com
Shaw Worldwide Locations
Corporate Headquarters: Baton Rouge, LA
Power Group Operations Centers:
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131 U.S. Locations
19 International Locations
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Charlotte, NC
Denver, CO
Baton Rouge, LA
Boston, MA
Moorestown, NJ
London (UK)
The Shaw Group Capabilities
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Power
Process
Construction
Maintenance
Piping
Steel
Modularization
Environmental
& Infrastructure
Shaw’s Power Group
• Four divisions comprise Shaw’s Power Group:
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Fossil & Renewables Division
Nuclear Division
Maintenance Division
Construction Division
• Ranked No. 1 Power Design Firm according to
ENR’s list of Top 500 Design Firms (2008 and
2009)
• Approximately 5,000 professional employees
• Largest constructor of nuclear power plants in
the United States
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Westinghouse/Toshiba
• Relationship with Westinghouse since
construction of Shippingport in 1950s
• Shaw acquired 20% share of Westinghouse
in 2006 – 70% owned by Toshiba
• Consortium partners on expanding portfolio
of new AP1000™ projects
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Four units in China
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Sanmen, two units
Haiyang, two units
Six units in U.S.
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Vogtle, two units
V.C. Summer, two units
Levy County, two units
• Other domestic and international
opportunities with both Westinghouse and
Toshiba (ABWR)
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China AP1000: Sanmen & Haiyang
• Clients: SNPTC, SMNPC & SDNPC
• Four units at two sites in China’s Zhejiang &
Shandong provinces
• Contract signed and work began in 2007
• First concrete poured at three of four units
in 2009
• Major construction milestones:
– CA20, CA01, CA04, CA05, 10+ other modules
– Containment Vessel (CV) Bottom Head
– CV 1st Ring
CVBH placement
• Projected completion: 2013 – 2015
People’s Republic
of China
Haiyang (2 units)
CV 1st Ring placement
Sanmen (2 units)
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Photos used courtesy of SMNPC
U.S. AP1000: Vogtle Units 3 & 4
• Client: Southern Company
• Location: Waynesboro, GA
• EPC contract signed April 2008
• Projected commercial operation dates:
2016 (Unit 3) – 2017 (Unit 4)
• Site certification and full notice to
proceed awarded March 2009
• Early Site Permit & Limited Work
Authorization awarded August 2009
• To date, more than 6.5 million cubic
yards of earth moved; approximately
1.5 million man-hours worked
• Combined Construction & Operating
License (COL) approval anticipated
July 2011
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Photo courtesy of Southern Company
U.S. AP1000: VC Summer Units 2 & 3
• Client: SCE&G / SCANA
• Location: Jenkinsville, SC
• EPC contract signed May 2008
• Projected commercial operation dates:
2016 (Unit 2) – 2019 (Unit 3)
• Project approval awarded by public
service commission February 2009
• To date, more than 6.9 million cubic
yards of earth moved; approximately
1.3 million man-hours worked
• At peak of construction, 3,000 – 3,500
employees expected to be hired
• COL approval anticipated July 2011
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Shaw’s Work in Saudi Arabia
• Saudi Electricity Company
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April 2010: Shaw awarded contract to assess and
recommend operational improvements at 52 sites
throughout Saudi Arabia
• Eastern Petrochemical Company
(SHARQ)
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April 2010: Shaw completed 1,300 KTA
grassroots ethylene plant in Al-Jubail, which had
workforce of 12,000 at its peak
• Saudi Basic Industries Corporation
(SABIC)
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Grassroots High Density Polyethylene (HDPE)
plant completed in 2008
• Shaw has completed more than 70
projects in Saudi Arabia over the last 20
years
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SHARQ grassroots ethylene plant
Energy and Water Needs
in Saudi Arabia
• Estimated that Saudi Arabia will need
close to 66,000 MW of power by 2024 –
more than double the current capacity of
32,603 MW
• Long-term investment in power
generation valued at $91 billion through
2020
• Water demand expected to increase by
6% annually – $60 billion investment
needed to meet consumption needs
• Saudi Arabia is the world’s largest
producer of desalinated water
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Why Nuclear Power Makes Sense
• Deployment of nuclear power technologies for energy production
allows oil resources to be dedicated to more valuable export
purposes
• Nuclear power has high capacity factor
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U.S. = 90% vs. 70-80% for fossil units
• Nuclear power stations provide
significant electricity and heat
properties perfectly matched to
desalination needs
• Nuclear power provides the largest
source of clean, carbon-free
technology in the world
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Ability to Deploy Nuclear
Technologies
• April 17, 2010: King Abdullah ordered
establishment of the King Abdullah City of
Nuclear and Renewable Energy to serve
as a scientific center for civilian nuclear
and renewable energy
• Over the last 20 years, Saudi Arabia has
demonstrated that it stands second to no
country in the ability to deploy highly technical construction and
infrastructure improvements
• Nuclear power deployment in Saudi Arabia is consistent with the
Kingdom’s efforts to achieve sustainable economic development
• Nuclear power will provide a significant source of highly skilled
jobs for thousands of Saudi residents
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Keys to Successful Nuclear
Deployment
• Existence of a utility that has the financial and technical capability
to undertake nuclear power generation
• Selection of a technology that will “succeed” in the geographic
location, matched with an EPC contractor that can successfully
engineer and construct the technology
• Successful conclusion of a Section
123 Agreement with the United States
Government
• Commitment to engagement with the
International Atomic Energy Agency
and willingness to create a credible
regulatory body to oversee
deployment
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