• Aucun résultat trouvé

Thorium Based Fuel Options for the Generation of Electricity: Developments in the 1990s | IAEA

N/A
N/A
Protected

Academic year: 2022

Partager "Thorium Based Fuel Options for the Generation of Electricity: Developments in the 1990s | IAEA"

Copied!
144
0
0

Texte intégral

(1)

,$($7(&'2&

7KRULXPEDVHGIXHORSWLRQVIRU WKHJHQHUDWLRQRIHOHFWULFLW\

'HYHORSPHQWVLQWKHV

0D\

(2)

7KHRULJLQDWLQJ6HFWLRQRIWKLVSXEOLFDWLRQLQWKH,$($ZDV 1XFOHDU3RZHU7HFKQRORJ\'HYHORSPHQW6HFWLRQ

,QWHUQDWLRQDO$WRPLF(QHUJ\$JHQF\

:DJUDPHU6WUDVVH 32%R[

$9LHQQD$XVWULD

7+25,80%$6(')8(/237,216)257+(*(1(5$7,212)(/(&75,&,7<

'(9(/230(176,17+(V ,$($9,(11$

,$($7(&'2&

,661±

‹,$($

3ULQWHGE\WKH,$($LQ$XVWULD 0D\

(3)

)25(:25'

7KH ,$($ KDV PDLQWDLQHG DQ LQWHUHVW LQ WKH WKRULXP IXHO F\FOH DQG LWV ZRUOGZLGH XWLOL]DWLRQZLWKLQLWVIUDPHZRUNRIDFWLYLWLHV3HULRGLFUHYLHZVKDYHDVVHVVHGWKHFXUUHQWVWDWXV RIWKLVIXHOF\FOHZRUOGZLGHDSSOLFDWLRQVHFRQRPLFEHQHILWVDQGSHUFHLYHGDGYDQWDJHVZLWK UHVSHFWWRRWKHUQXFOHDUIXHOF\FOHV

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

7KH,$($ZRXOGOLNHWRWKDQNLQGLYLGXDOVZKRSDUWLFLSDWHGLQWKHFRQVXOWDQWVPHHWLQJ DQGSURYLGHGZULWWHQFRQWULEXWLRQV6SHFLDOWKDQNVWR,$:HLVEURGW*HUPDQ\ZKRFRPSLOHG WKH H[SHUW LQSXW DQG WR $0 %D[WHU 86$ ZKR UHYLHZHG WKH ILQDO GUDIW 7KH ,$($ VWDII PHPEHUUHVSRQVLEOHIRUWKLVSXEOLFDWLRQZDV9$UNKLSRYRIWKH'LYLVLRQRI1XFOHDU3RZHU

(4)

(',725,$/127(

7KH XVH RI SDUWLFXODU GHVLJQDWLRQV RI FRXQWULHV RU WHUULWRULHV GRHV QRW LPSO\ DQ\ MXGJHPHQW E\ WKH SXEOLVKHU WKH ,$($ DV WR WKH OHJDO VWDWXV RI VXFK FRXQWULHV RU WHUULWRULHV RI WKHLU DXWKRULWLHV DQG LQVWLWXWLRQVRURIWKHGHOLPLWDWLRQRIWKHLUERXQGDULHV

7KHPHQWLRQRIQDPHVRIVSHFLILFFRPSDQLHVRUSURGXFWVZKHWKHURUQRWLQGLFDWHGDVUHJLVWHUHGGRHV QRWLPSO\DQ\LQWHQWLRQWRLQIULQJHSURSULHWDU\ULJKWVQRUVKRXOGLWEHFRQVWUXHGDVDQHQGRUVHPHQWRU UHFRPPHQGDWLRQRQWKHSDUWRIWKH,$($

(5)

&217(176

,1752'8&7,21

%$&.*5281'

'(7$,/('&2175,%87('5(32576217+(67$7862)7+25,80

)8(/237,21,17+(9$5,286&28175,(6 ,QFHQWLYHVDQGMXVWLILFDWLRQIRUWKHWKRULXPIXHOF\FOH )UDQFH

*HUPDQ\

,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

6WDWXVRIWKRULXPXVHLQSRZHUUHDFWRUV )UDQFH

*HUPDQ\

,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

1RQWUDGLWLRQDOSRZHUUHDFWRUFRQFHSWV 0HOWSURRIUHDFWRUFRQFHSWV*HUPDQ\

0ROWHQVDOWUHDFWRU-DSDQ

$TXHRXVVXVSHQVLRQUHDFWRUSURMHFW1HWKHUODQGV

*DVWXUELQHPRGXODUKHOLXPUHDFWRU86$

5HIHUHQFHV 6WUDWHJLHVIRUWKRULXPXVHSXUHWKRULXPVFHQDULRFRPELQHG

ZLWK3XFRPSDULVRQV )UDQFH

*HUPDQ\

,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

1XFOHDUGHVLJQLQFOXGLQJFRPSXWHUFRGHVDQGWKHLUYDOLGDWLRQQXFOHDUGDWD QXFOHDUFRGHGHVLJQQXFOHDUIXHOF\FOHVWXGLHVUHJDUGLQJIXHOFRQVXPSWLRQVDIHW\

DVSHFWV )UDQFH

*HUPDQ\LQFRRSHUDWLRQZLWK%UD]LO6ZLW]HUODQG8QLWHG.LQJGRP ,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

)XHOF\FOHWHFKQRORJLHV7KUHVRXUFHVSURVSHFWLQJDQGPLQLQJ

7KIXHOIDEULFDWLRQIXHOSHUIRUPDQFHUHSURFHVVLQJ

(6)

*HUPDQ\

,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

7KRULXPXVHLQQHXWURQVRXUFHGULYHQV\VWHPV )UDQFH

*HUPDQ\

,QGLD -DSDQ 5HIHUHQFHV 7R[LFLW\DQGUHODWHGSUREOHPV

*HQHUDO'HILQLWLRQRIWKHWR[LFLW\RIUDGLRDFWLYHZDVWH )UDQFH

*HUPDQ\

,QGLD -DSDQ 5XVVLDQ)HGHUDWLRQ

86$5HIHUHQFHV

$%%5(9,$7,216

$33(1',;,3523(57,(62)7+25,80 &2175,%8725672'5$)7,1*$1'5(9,(:

(7)

,1752'8&7,21

0RVWRIWKHZRUOGVQXFOHDUUHDFWRUVXVHIXHOLQZKLFKXUDQLXPLVHQULFKHGWROHVVWKDQ SHUFHQW8WKHRQO\QDWXUDOO\RFFXUULQJWKHUPDOO\ILVVLOHLVRWRSH1HXWURQFDSWXUHE\

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

- ,QFUHDVLQJWKHZRUOGVILVVLOHUHVRXUFHVE\EUHHGLQJ8IURPWKRULXP - ,PSURYLQJILVVLOHIXHOXWLOL]DWLRQLQWKHUPDOUHDFWRUV

- 6LJQLILFDQWO\UHGXFLQJ8HQULFKPHQWUHTXLUHPHQWV

- 'HFUHDVLQJSURGXFWLRQRI3XDQGRWKHUWUDQVXUDQLFHOHPHQWVFRPSDUHGWRXUDQLXPIXHO F\FOHV

- $FKLHYLQJKLJKHUIXHOEXUQXSVWKDQXUDQLXPEDVHGIXHOF\FOHV

- 5HDOL]LQJWKHSRWHQWLDOIRU3XEXUQLQJFLYLOJUDGHRUZHDSRQJUDGHZLWKRXWWKHQHHGWR UHF\FOHLHDFKLHYLQJIDVWHUUHGXFWLRQRIH[LVWLQJ3XVWRFNSLOHV

- 'HFUHDVLQJSURGXFWLRQRIWR[LFIXHOZDVWHRUORQJOLYHGUDGLRWR[LFZDVWHDQG

- 'HYHORSLQJ WKH SRWHQWLDO WR FRPELQH WKH WKRULXP EDVHG IXHO F\FOH ZLWK DFFHOHUDWRU GULYHQV\VWHPVDQGK\EULGIXVLRQGULYHQV\VWHPVWREUHHG8DQGLQFLQHUDWHORQJOLYHG UDGLRWR[LFLVRWRSHV

7KRULXPEDVHGIXHOFDQEHXVHGLQDOOSURYHQUHDFWRUW\SHVLQFOXGLQJ3:5V::(5V

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

%$&.*5281'

7+25,80)8(/&<&/('(9(/230(17$5281'7+(:25/' 5HVHDUFKDQGGHYHORSPHQW

%DVLF UHVHDUFK DQG GHYHORSPHQW RQ WKH WKRULXP IXHO F\FOH KDV EHHQ FRQGXFWHG LQ

*HUPDQ\,QGLD-DSDQWKH5XVVLDQ)HGHUDWLRQWKH8QLWHG.LQJGRPDQGWKH86$6WXGLHV LQFOXGHGWKHGHWHUPLQDWLRQRIPDWHULDOGDWDIDEULFDWLRQWHVWVRQDODERUDWRU\VFDOHLUUDGLDWLRQ RI 7KEDVHG IXHO LQ PDWHULDO WHVW UHDFWRUV ZLWK SRVWLUUDGLDWLRQ H[DPLQDWLRQV DQG

(8)

LQYHVWLJDWLRQV LQWR WKHXVH RI7KEDVHGIXHOIRU /:5VLQFOXGLQJ::(5V /0)%5V DQG +75V+7*5V7HVWUHDFWRULUUDGLDWLRQRIWKRULXPIXHOWREXUQXSVDWKLJKVSHFLILFKHDWORDGV XSWR:FPKDVDOVREHHQFRQGXFWHGDQGVHYHUDOWHVWUHDFWRUVKDYHEHHQHLWKHUSDUWLDOO\

RUFRPSOHWHO\ORDGHGZLWK7KEDVHGIXHO,QSDUWLFXODUH[SHULPHQWVKDYHEHHQFRQGXFWHGLQ 7KH$95*HUPDQ\

- KRXUV RI RSHUDWLRQ DERXW SHU FHQW ZLWK 7KEDVHG IXHO DW 0:H KDV EHHQDFWLYDWHG$SSUR[LPDWHO\WKRXVDQGIXHOEDOOVFRQWDLQLQJDWRWDORINJRI 7KZHUHXVHG0D[LPXPEXUQXSVRI0:GWEXUQXSZHUHDFKLHYHG

7KH'UDJRQUHDFWRU8QLWHG.LQJGRP

- 7KRULXPIXHOHOHPHQWVZLWKD7K8+(8UDWLRZHUHLUUDGLDWHGLQWKLV0:WK UHDFWRU&+HRXWOHWWHPSHUDWXUHIRUIXOOSRZHUGD\V

.8&$IDFLOLW\-DSDQ

- 0DQ\FULWLFDOH[SHULPHQWVKDYHEHHQFRQGXFWHGKHUHZLWKPHWDOOLF7KDQGHQULFKHG8 7KH3HDFK%RWWRP+7*586$

- 7KH3HDFK%RWWRPUHDFWRUZDVDKLJKWHPSHUDWXUHJUDSKLWHPRGHUDWHGKHOLXPFRROHG UHDFWRUH[SHULPHQWRSHUDWLQJDW0:WKZLWK+(87KFRDWHGSDUWLFOHIXHO

&,586UHDFWRU,QGLD

- ,UUDGLDWLRQ RI 7KEDVHG WHVW IXHO URGV DQG 7K3XEDVHG WHVW IXHO URGV ZLWK XS WR 0:GWEXUQXSKDVEHHQFRQGXFWHG

7KHVH H[SHULPHQWVLQFOXGHGSRVWLUUDGLDWLRQH[DPLQDWLRQ RI VSHQW7KEDVHG IXHO IURP WKH UHDFWRUV DQG IDEULFDWLRQ RI 7KEDVHG IXHO ERWK RQ D SLORW DQG VHPLLQGXVWULDO VFDOH

$95,QDGGLWLRQLQPRVWRIWKHVHFRXQWULHV5 'KDVEHHQGLUHFWHGDWUHSURFHVVLQJVSHQW 7KEDVHGIXHOERWKRQDODERUDWRU\DQGDSLORWVFDOHDQGRQODERUDWRU\UHIDEULFDWLRQWHVWV 3RZHUUHDFWRUV

&RQVLGHUDEOH H[SHULHQFH KDV EHHQ JDLQHG LQ WKRULXP EDVHG IXHO LQ SRZHU UHDFWRUV ZRUOGZLGH 7KH IROORZLQJ UHDFWRUV KDYH HLWKHU LUUDGLDWHG WKRULXP IXHO RU DUH SUHSDULQJ WHVW LUUDGLDWLRQV

7+75*HUPDQ\

$0:HUHDFWRUZDVRSHUDWHGZLWKSHEEOHVFRQWDLQLQJ7K+(8IXHOEXW VKXWGRZQDIWHU\HDUVIRUQRQWHFKQLFDOUHDVRQV)XHOIDEULFDWLRQZDVRQDQLQGXVWULDOVFDOH )RUW6W9UDLQ86$

7KH)RUW6W9UDLQ)69UHDFWRUZDVWKHPRVWUHFHQWWKRULXPIXHOHG7K+(8>@

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

(9)

6KLSSLQJSRUW3:5V86$

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

=LUFDOR\ FODG 7KH FRUH ZDV RSHUDWHG IURP WR DQG VXFFHVVIXOO\ GHPRQVWUDWHG EUHHGLQJRI8XVLQJWKHVHHGEODQNHWFRQFHSW>@

%:5/LQJHQ*HUPDQ\

7KLV0:HUHDFWRUXWLOL]HG7K3XEDVHGIXHOWHVWHOHPHQWV $QJUD%UD]LO

7HVWVRI7K8DQG7K3XEDVHGIXHOWHVWHOHPHQWVLQWKH0:H3:5KDYHEHHQ SUHSDUHG LQFOXGLQJ OLFHQVLQJ GRFXPHQWDWLRQ ZLWKLQ D SURJUDP RI *HUPDQ±%UD]LOLDQ FRRSHUDWLRQEXWZHUHQRWFDUULHGRXW>@

.$36XQLWVDQG.$,*$XQLWVDQGDQG5$36DQG,QGLD

(DFK.$36XQLWLVORDGHGZLWKNJ7KIXHOLQ-XQH8QLWKDGDFKLHYHGDERXW GD\VRIIXOOSRZHURSHUDWLRQ8QLWDERXW7KHSRZHUSODQWVIRU.$,*$DQG5$36 DUHXQGHUFRQVWUXFWLRQEXWWKHXVHRI7KEDVHGIXHOLVSODQQHGIRUSRZHUIODWWHQLQJ:RUNRQ SRVWLUUDGLDWLRQ H[DPLQDWLRQV UHSURFHVVLQJ ODERUDWRU\ VFDOH DQG SLORWVFDOH DQG UH IDEULFDWLRQODERUDWRU\VFDOHFRQWLQXHVDQGKDVEHHQHQODUJHGEDVHGRQWKHVHH[SHULPHQWV (PHUJLQJDGYDQFHGUHDFWRUFRQFHSWV

$GYDQFHG UHDFWRU FRQFHSWV EDVHG RQ WKRULXPIXHO F\FOHV DUH XQGHU VWXG\ IRU IXWXUH QXFOHDUDSSOLFDWLRQVVRPHFRQFHSWVDUH

:DWHUFRROHGUHDFWRUV

7KHIXHORIWKHVHUHDFWRUVLVEDVHGRQ3X27K2DQGRU82SDUWLFOHVDUUDQJHGLQ ULQJVKDSHG 6L&FRDWHG SHOOHWV LQ VWHHO FODGGLQJ WXEHV /:5V DQG RQ 6L&FRDWHG 3X2 7K2DQGRU82SDUWLFOHVDUUDQJHGLQVWDLQOHVVVWHHOFRDWHGJUDSKLWHEDOOVDQGULQJVKDSHG FRUHV+:5V>@

+75V+7*5VRU0+5V

$ QHDU WHUP DSSOLFDWLRQ RI VXFK UHDFWRUV KDV EHHQ LQYHVWLJDWHG LQ GHWDLO LQ *HUPDQ\

7KHVHDUHWKHPRGXODUKLJKWHPSHUDWXUHUHDFWRUV0+75VZLWKVSKHULFDOIXHOHOHPHQWV 5HVHDUFK RQ KLJKWHPSHUDWXUH JDV FRROHG UHDFWRUV +7*5V LQ WKH 86$ OHG WR WKH GHVLJQ RI DVPDOOYHUVLRQ RI WKLVFRQFHSW XVLQJ DSULVPDWLF IXHO HOHPHQWDQGNQRZQ DV WKH PRGXODUKHOLXPUHDFWRU0+57KH0+5FRPELQHVORZSRZHUGHQVLW\:FPZLWKDQ DQQXODU FRUH DQG QHJDWLYH WHPSHUDWXUH FRHIILFLHQWV RI UHDFWLYLW\ XQGHU DOO FRQGLWLRQV WR

(10)

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

0ROWHQVDOWUHDFWRUV

$OWKRXJK WKLV FRQFHSW ZDV VWXGLHG LQ GHSWK LQ WKH V LW LV EHLQJ UHLQYHVWLJDWHG EHFDXVHRIWKHDYDLODELOLW\RIDGYDQFHGWHFKQRORJ\IRUWKHPDWHULDOVDQGFRPSRQHQWVDVZHOO DVIRUWKHH[SHFWHGKLJKFRQYHUVLRQUDWH8IURPWKRULXPEDVHGIXHO

$TXHRXVKRPRJHQRXVVXVSHQVLRQUHDFWRU

7KLVSURMHFWLVEDVHGRQDIOXLGIXHOVLPLODUWRWKDWRIWKH0ROWHQ6DOW5HDFWRUEXWLQ WKLV RSWLRQ WKH IOXLG IXHO LV FLUFXODWHG LQ GHPLQHUDOL]HG ZDWHU 5HSURFHVVLQJ RFFXUV FRQWLQXRXVO\DQGWKHFRQYHUVLRQUDWHWR8LVYHU\KLJK

+HWHURJHQHRXVWKRULXPUHDFWRUFRUH

7KHVHHGEODQNHWFRQFHSWZDVSURSRVHGIRU7KXVHLQ3:5RIFXUUHQWWHFKQRORJ\>@

7KHEDVLFLGHDLVWRXVHDKHWHURJHQHRXVVHHGEODQNHWIXHODVVHPEO\7KH7KSDUWRIWKHIXHO DVVHPEO\ LV VHSDUDWHG IURP WKH8 SDUW RIWKH DVVHPEO\ DOORZLQJ VHSDUDWH IXHO PDQDJHPHQW VFKHPHVIRUWKHWKRULXPDVXEFULWLFDO³EODQNHW´DQGWKH³GULYLQJ´SDUWRIWKHFRUH³VHHG´

7KHGHVLJQREMHFWLYHRIWKHEODQNHWLVHIILFLHQWJHQHUDWLRQDQGILVVLRQLQJRIWKH8LVRWRSH ZKLOHWKHGHVLJQREMHFWLYHRIWKHVHHGLVHFRQRPLFDOVXSSO\RIQHXWURQVWRWKHEODQNHW)RUWKH 3XLQFLQHUDWLRQRSWLRQ3XUHSODFHVHQULFKHG8

7KRULXPXVHLQQHXWURQVRXUFHGULYHQV\VWHPV

7KH WHUP ³QHXWURQ VRXUFH GULYHQ V\VWHPV´ LV DSSOLHG WR DFFHOHUDWRU GULYHQ V\VWHPV DFFHOHUDWRUDQGPROWHQVDOWEUHHGHUFRPELQDWLRQVIXVLRQUHDFWRUEODQNHWV\VWHPVDQGILVVLRQ IXVLRQK\EULGUHDFWRUV

$FFHOHUDWRUGULYHQV\VWHPV

5XEELDHW DO RI &(51 >@ SURSRVHG WKH XVH RI WKRULXP DV WKH IHHG PDWHULDO LQ DFFHOHUDWRUGULYHQV\VWHPV7KLVV\VWHPZRXOGKDYHWKHDGYDQWDJHVRIWKHWKRULXPIXHOF\FOH LQ UHDFWRU DSSOLFDWLRQVZLWKRXW QHHGLQJILVVLOHXUDQLXP ,W ZRXOG VHUYH DV DQHQHUJ\ VRXUFH ZLWKPLQLPXPORQJWHUPZDVWHSURGXFWLRQ

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

(11)

$FFHOHUDWRU EUHHGHUVKDYH EHHQLQYHVWLJDWHG E\ 251/ LQ WKH 86$ DQG .)$.). LQ

*HUPDQ\ ,Q WKLV FRQFHSW SURWRQV DUH DFFHOHUDWHG WR DQ HQHUJ\ OHYHO RI *H9 E\ WKH DFFHOHUDWRUDQGGLUHFWHGRQWRDKHDY\PHWDOWDUJHWSURGXFLQJDFDVFDGHRIVHFRQGDU\SDUWLFOHV DQGQHXWURQV7KHQHXWURQVDUHDEVRUEHGLQDVXUURXQGLQJWKRULXPEODQNHWWKXVEUHHGLQJ8

$EHDPZLWKDP$FXUUHQWSURGXFHVDERXWNJ8SHUGD\

$QRWKHU SRVVLEOH V\VWHP LQYHVWLJDWHG E\ .)$ LQ -XHOLFK *HUPDQ\ XVHV WKHUPDO QHXWURQVDQGOLTXLGIXHO7KHPDLQJRDOLVDVHOIVXIILFLHQWV\VWHPWKDWEUHHGVLWVRZQIXHODQG SURGXFHVDVXUSOXVRIHOHFWULFDOHQHUJ\7KHV\VWHPLVRSHUDWHGDWDPXOWLSOLFDWLRQIDFWRURI DQGDWDEHDPFXUUHQWRIP$(S *H97KLVUHVXOWVLQDQHWV\VWHPHIILFLHQF\RI SHUFHQWDQGDVXUSOXVSURGXFWLRQRIILVVLOHPDWHULDO8RIDERXWSHUFHQW\HDUUHODWHG WRWKH8LQYHQWRU\LQWKHV\VWHP

$FFHOHUDWRUPROWHQVDOWEUHHGHUV

$ V\VWHP FRQVLVWLQJ RI D PROWHQ VDOW WDUJHWEODQNHW DQG DQ DFFHOHUDWRU ZLWK D KLJK HQHUJ\SURWRQEHDP*H9P$KDVEHHQLQYHVWLJDWHGLQ-DSDQ7KHH[SHFWHGILVVLOH PDWHULDOGRXEOLQJWLPHLVDERXW\HDUV

)XVLRQUHDFWRUEODQNHWV\VWHP

$IXVLRQUHDFWRUFDQEHXVHGDVDVRXUFHRIQHXWURQVVLQFHIXVLRQLV³QHXWURQULFK´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

- $ODUJHLQFUHDVHLQWKHZRUOGVILVVLOHUHVRXUFHVE\EUHHGLQJ8IURPWKRULXP

$QDEXQGDQWVXSSO\RIWKRULXPLVQHFHVVDU\WRLPSOHPHQWWKRULXPEDVHGIXHOF\FOHVRQ D VFDOH QHFHVVDU\ WR VLJQLILFDQWO\ VXSSOHPHQW XUDQLXP UHVRXUFHV 7KRULXP ZKLFK LV HVVHQWLDOO\ SHU FHQW7K LV WKUHH WLPHV PRUH DEXQGDQW LQ WKH HDUWK¶V FUXVW WKDQ XUDQLXPUHIOHFWLQJWKHGLIIHUHQFHVLQWKHKDOIOLYHVRI7K™ \HDUVDQG8 ™ \HDUV :LWKQR UHF\FOHWKH WKRULXPKDYLQJ QR ILVVLOH FRPSRQHQWLV XVHG VWULFWO\DVDUHSODFHPHQWIRU8LQFRUH

7KRULXP RFFXUV LQ DVVRFLDWLRQ ZLWK XUDQLXP DQG UDUH HDUWK HOHPHQWV LQ GLYHUVH URFN W\SHV,WRFFXUVDVYHLQVRIWKRULWHXUDQRWKRULWHDQGPRQD]LWHLQJUDQLWHVV\HQLWHVDQG SHJPDWLWHV 0RQD]LWH DOVR RFFXUV LQ TXDUW]SHEEOH FRQJORPHUDWHV DQG VDQGVWRQHV 0RUHRYHUWKRULXPRFFXUVZLWKUDUHHDUWKHOHPHQWVLQEDVWQDHVLWHDQGFDUERQDWLWHV 7KHUH DUH H[WHQVLYH GHSRVLWV LQ %UD]LO &DQDGD ,QGLD DQG WKH 86$ )LJ >@

7DEOH >@ 0RVW RI ,QGLDV WKRULXP UHVHUYHV QHDUO\ WRQV DUH LQ WKH EHDFKVDQGVRI.HUDODDQG2ULVVD7KHRUHLVYHU\KLJKJUDGHZLWKDWKRULXPFRQWHQWRI DERXW SHU FHQW DQG VLQFH LW LV LQ EHDFK VDQGV PLQLQJ LV HDV\ 6LPLODU H[WHQVLYH GHSRVLWVDUHIRXQGLQ%UD]LODQG&DQDGD7KH86$LVEHOLHYHGWRKDYHWKRULXPLQPDMRU GHSRVLWVLQ&DOLIRUQLD&RORUDGR,GDKR0RQWDQD1HZ0H[LFRDQG:\RPLQJEXWWKHUH LVQRFXUUHQWLQWHUHVWLQH[SORUDWLRQRUPLQLQJGXHWRODFNRIGHPDQG

(12)

),*7KRULXPGHSRVLWVLQWKHZRUOG

- ,PSURYHG ILVVLOH IXHO XWLOL]DWLRQ LQ WKHUPDO UHDFWRUV WKH SRWHQWLDO IRU KLJKHU IXHO EXUQXSVDQGKHQFHORZHUIXHOF\FOHFRVWVWKDQIRUXUDQLXPEDVHGIXHOF\FOHVZLWKD VLJQLILFDQWUHGXFWLRQLQ8HQULFKPHQWUHTXLUHPHQWV

7KRULXPIXHOF\FOHVZKLFKFDQXWLOL]HWKHEUHG8DVDILVVLOHPDWHULDOKDYHLQKHUHQW DGYDQWDJHV RYHU8 DQG SOXWRQLXP IXHOHG V\VWHPV IRU WKHUPDO UHDFWRU DSSOLFDWLRQV 7KLVDGYDQWDJHLVVKRZQLQWKH7DEOHZKLFKFRPSDUHVUHSUHVHQWDWLYHHWDhYDOXHV WKHDYHUDJHQXPEHURIILVVLRQQHXWURQVSURGXFHGSHUWKHUPDOQHXWURQDEVRUSWLRQIRU WKHVHILVVLOHLVRWRSHVLQDW\SLFDO3:5WKHUPDOUHDFWRUVSHFWUXP$VFDQEHVHHQIURP WKHWDEOHhLVFRQVLGHUDEO\KLJKHUIRU8WKDQDQ\RWKHUILVVLOHQXFOLGH

7KHKLJKh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

)RXUGLIIHUHQWUHDFWRUW\SHVDUHHPLQHQWO\VXLWDEOHIRUWKHWKRULXPIXHOF\FOH

/LJKW ZDWHU EUHHGHU UHDFWRU ² 7KH VHHGEODQNHW FRQFHSW RI WKLV UHDFWRU KDV D FHQWUDO FRUHRIWKLQ7K8IXHOSLQVVXUURXQGHGE\DWKLFNHUFRUHRIWKRULXPSLQVDOODVR[LGH 6XFK D V\VWHP FRXOG EH ILWWHG LQWR DQ H[LVWLQJ 3:5 E\ UHDUUDQJLQJ WKH FRUH DQG WRS SODWH RI WKH SUHVVXUH YHVVHO &RQYHUVLRQ UDWLRV RI DUH IHDVLEOH FRPSDUHG WR YDOXHVLQWKHVWDQGDUG/:5

(13)

7$%/( (67,0$7(' :25/' 7+25,80 5(6285&(6 ,1 0$5.(7

(&2120<&28175,(6,1WRQV>@

&RXQWULHV55$ 56( 7RWDO

(XURSH

*UHHQODQG

1RUZD\

7XUNH\

7RWDO

$PHULFD

%UD]LO

&DQDGD

8QLWHG6WDWHV

7RWDO

$IULFD

(J\SW

1LJHU " "

6RXWK$IULFD "

7RWDO

$VLD

,QGLD

7RWDO

:RUOGWRWDO

55$ UHVRXUFHVUHDVRQDEO\DFKLHYDEOH 56( UHVRXUFHVVXSSOHPHQWDU\HVWLPDWHG

7$%/(5(35(6(17$7,9(7+(50$/

h

9$/8(6)25883X

$1'3X

8 8 3X 3X

h

H9

h

DYHUDJHGRYHUW\SLFDO3:5QHXWURQVSHFWUXP

&$1'8W\SHUHDFWRU²,QWKLVUHDFWRUW\SHDVHOIVXIILFLHQWHTXLOLEULXPWKRULXPF\FOH 66(7DSSHDUVSRVVLEOH7KLVF\FOHLVLQLWLDWHGXVLQJ7K+(8RU/(8RU7K3XIXHO DQG VWRFNSLOLQJ WKH8 XQWLO VXIILFLHQW WR VWDUWWKH 66(7 7KHQ WKH UHDFWRU DFWV DV D FRQYHUWHURIWKRULXPZLWKDFRQYHUVLRQUDWLRRI

)DVW EUHHGHU UHDFWRU )%5 ² $ IXHO F\FOH FRPELQLQJ XUDQLXP PHWDO DOOR\HG ZLWK WKRULXPFDQEHXVHGLQWKH)%57KHWKHUPDOFRQGXFWLYLW\RIWKHPHWDOOLFDOOR\VZRXOG DOORZ KLJKHU VSHFLILF SRZHUV WKDQ R[LGH IXHOV DQG WRJHWKHU ZLWK WKH KLJKHU DWRPLF GHQVLW\ RI WKH PHWDOV ZRXOG UHVXOW LQ DQ LQFUHDVHG EUHHGLQJ UDWLR FRPSDUHG WR WKH VWDQGDUGEUHHGHU7KLVGRHVQRWGHSHQGRQWKRULXPDQGFDQDOVREHGRQHZLWK83X

(14)

7KH KLJK WHPSHUDWXUH JDV FRROHG UHDFWRU +7*5 ² 7KH 7K8 IXHO F\FOH LV DQ H[FHOOHQWPDWFKIRUWKLVUHDFWRUW\SH7KHUHODWLYHO\KDUGVSHFWUXPKDVOLWWOHHIIHFWRQWKH

8hYDOXHVLQFHLWLVDOPRVWFRQVWDQWLQWKLVUHJLRQ&RQYHUVLRQUDWLRVXSWRDUH IHDVLEOH

7KHPROWHQVDOWEUHHGHUUHDFWRUDQGDFFHOHUDWRUGULYHQV\VWHPVDUHDOVRVXLWHGWRWKHXVH RIWKRULXPIXHOF\FOHVRIIHULQJWKHSURVSHFWIRUKLJKEUHHGLQJJDLQV

- 7KHORZHUSURGXFWLRQRI3XDQGRWKHUWUDQVXUDQLFHOHPHQWVFRPSDUHGWRXUDQLXPIXHO F\FOHVDQGWKHORZHUSURGXFWLRQRIWR[LFIXHOZDVWHRUORQJOLYHGUDGLRWR[LFZDVWHIURP WKRULXPIXHOF\FOHV

7KHWKRULXPIXHOF\FOHKDVDVLJQLILFDQWORZHUSURGXFWLRQRIORQJOLYHGWUDQVXUDQLFDFWLQLGHV FRPSDUHGWRXUDQLXPSOXWRQLXPF\FOHV3URGXFWLRQRIKLJKHUDFWLQLGHVLQWKHWKRULXPFKDLQLV RUGHUVRIPDJQLWXGHORZHUWKDQLQWKHXUDQLXPFKDLQ

- 7KH SRWHQWLDO IRU DFFHOHUDWHG 3XEXUQLQJ FLYLOJUDGH RU ZHDSRQJUDGH ZLWKRXW WKH QHHGIRUUHF\FOHLHIDVWHUUHGXFWLRQRIWKHH[LVWLQJ3XVWRFNSLOHV

7KHWKRULXPIXHOF\FOHSURGXFHVRQO\8DVWKHILVVLOHPDWHULDO([LVWLQJWHFKQRORJ\PD\EH XVHGWRGHQDWXUH8E\WKHDGGLWLRQRIQDWXUDOXUDQLXPZKLFKLVDOZD\VFRQWDPLQDWHGE\WKH GDXJKWHUSURGXFWVRI8ZKLFKDUHKDUGgHPLWWHUV$OVRWKHSURGXFWLRQRIKLJKHUDFWLQLGHV LVVLJQLILFDQWO\ UHGXFHGLQWKHF\FOHGHFUHDVLQJWKHSRVVLELOLW\RIGLYHUWLQJWUDQVSOXWRQLXP DFWLQLGHV,QDGGLWLRQ7K3XLVDIXHOF\FOHDOORZLQJXVHRISOXWRQLXPIRUHQHUJ\JHQHUDWLRQ DQGEUHHGLQJRI8DWWKHVDPHWLPH

)LQGLQJVRIWKHLQWHUQDWLRQDOIXHOF\FOHHYDOXDWLRQVWXG\

7KH ,QWHUQDWLRQDO )XHO &\FOH (YDOXDWLRQ ,1)&( 6WXG\ ± >@

VXPPDUL]HG 7K IXHO F\FOH DFWLYLWLHV ZRUOGZLGH WKURXJK :RUNLQJ *URXS $GYDQFHG )XHO

&\FOH DQG 5HDFWRU &RQFHSWV &\FOH FRQFHSWV WHFKQLFDO VWDWXV HFRQRPLFV DQG WHFKQLFDO EDUULHUVWRSUROLIHUDWLRQZHUHFRQVLGHUHG

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

6LQFH7KEDVHGIXHOVKDYHQRWEHHQIDEULFDWHGRUUHSURFHVVHGFRPPHUFLDOO\WKHUHZDV XQFHUWDLQW\DERXWFRVWV6SHFLILFFRVWVIRUUHSURFHVVLQJZHUHDVVXPHGWREHRIWKHVDPHRUGHU RU KLJKHU WKDQ WKDW RI 3X8 IXHO EXW UHIDEULFDWLRQ RI8EHDULQJ IXHO FRXOG EH KHDYLO\

SHQDOL]HG IDFWRU RI ±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

(15)

&RQFOXVLRQRI,$($V\PSRVLXPRQQXFOHDUIXHOF\FOHDQGUHDFWRUVWUDWHJLHV$GMXVWLQJ WRQHZUHDOLWLHV>@

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

7HVWVWRGDWHDQGWKHH[SHULHQFHJDLQHGRQWKRULXPEDVHGIXHOLQERWKWHVWUHDFWRUVDQG SRZHUUHDFWRUVDUHYHU\HQFRXUDJLQJ7KHPRVWQRWHZRUWK\IURPZRUOGZLGHLQYHVWLJDWLRQVRI WKRULXPEDVHGIXHOVLVWKDWWKH\FDQEHXVHGLQDOOSURYHQUHDFWRUW\SHV+:5/:5)%5 +75ZLWKRXWFKDQJHVLQUHDFWRUGHVLJQSODQWGHVLJQRUVDIHW\2WKHUUHDFWRUFRQFHSWVVXFK DVPROWHQVDOWDOVRFDQXWLOL]HWKLVIXHO,QWKHFDVHRI+75VVRPHDGDSWDWLRQVPXVWEHPDGH UHJDUGLQJWKHSDVVLYHGHFD\KHDWUHPRYDO

1HZUHDOLWLHVQHFHVVLWDWHIXUWKHUUHYLHZRIWKRULXPEDVHGIXHOVDQGWKHLUSRWHQWLDOUROH LQ UHGXFLQJ SOXWRQLXP VWRFNSLOHV ,Q DGGLWLRQ WKH KLJK FRQYHUVLRQ UDWLR RI WKRULXP IXHO LQ WKHUPDO UHDFWRUV RIIHUV DGGHG IOH[LELOLW\ LQ IXHO F\FOHV GXULQJ WKH VWDUWXS DQG LQWURGXFWLRQ SKDVH RI WKH )%5 7KLV IOH[LELOLW\ DULVHV IURP WKH UHGXFHG QHHG IRU ILVVLOH IXHO DGGLWLRQ WR PDLQWDLQRSHUDWLRQLQH[LVWLQJWKHUPDOUHDFWRUVDVWKHFRQYHUVLRQUDWLRLQFUHDVHV

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

'UDZEDFNVRIWKHWKRULXPIXHOF\FOH

- 7KHUHLVQRILVVLOHLVRWRSHLQWKRULXP7KRULXPKDVJRRGIHUWLOHPDWHULDOSURSHUWLHV - 8FDQEHXVHGDVZHDSRQPDWHULDOZLWKDPRXQWVVLPLODUWRSOXWRQLXPRU8

- &RQWDPLQDWLRQ ZLWK8 FRQVLGHUDEO\ FRPSOLFDWHV IXHO IDEULFDWLRQ ZKLFK PXVW EH FRQGXFWHGUHPRWHO\EHKLQGVKLHOGLQJWRFRPSO\ZLWKUDGLRORJLFDOSURWHFWLRQVWDQGDUGV FRQWULEXWLQJWRDKLJKIXHOIDEULFDWLRQSULFH

- 6LJQLILFDQWILQDQFLDORXWOD\LVQHFHVVDU\WRUHDFKWKHODUJHVFDOHLQGXVWULDOVWDWXVDOUHDG\

DFKLHYHGZLWKWKH83XF\FOH

- 7KHWKRULXPIXHOF\FOHKDVIXUWKHUQHHGIRUGHYHORSPHQWLQ

D 9DOLGDWLRQRIUHODWHGGDWDVXFKDVQXFOHDUDQGPDWHULDOGDWDIRUWKRULXPEDVHG IXHOV

E (YDOXDWLRQRIWKHLPSDFWRIWKHWR[LFLWLHVRI3D88DQG8

F ,QYHVWLJDWLRQRIUHDFWRUNLQHWLFVDQGVDIHW\DQDO\VLVUHVXOWLQJIURPWKHVPDOOHU HIIHFWLYHGHOD\HGQHXWURQIUDFWLRQbHIIIRU8WKDQIRU8 DOWKRXJKLWLVVOLJKWO\KLJKHUWKDQIRU3X>@

G 2QO\SLORWVFDOHUHSURFHVVLQJDQGUHIDEULFDWLRQH[SHULHQFHLVDYDLODEOH VHSDUDWLRQRI8IURPVSHQWIXHOKDVSURYHGTXLWHGLIILFXOW

(16)

&21&/86,216

D )URPVXUYH\LQJWKHVWDWXVRIGHYHORSPHQWRIWKHWKRULXPIXHOF\FOHLQYDULRXVFRXQWULHVLW FDQEHFRQFOXGHGWKDWWKHIHDVLELOLW\RIGLIIHUHQWW\SHVRIUHDFWRUVEDVHGRQ87KKDV EHHQVXFFHVVIXOO\GHPRQVWUDWHGDQGWKHIXHOF\FOHWHFKQRORJLHVPLQLQJIXHOIDEULFDWLRQ UHSURFHVVLQJDQGUHIDEULFDWLRQDUHLQSULQFLSOHDYDLODEOH

E7KHQHXWURQLFSURSHUWLHVRI8SHUPLWLWVHIILFLHQWXVHLQDOOW\SHVRIQXFOHDUUHDFWRUVDQG FRXOGVDYHQDWXUDOXUDQLXPUHVRXUFHV7KLVZDVWKHPDLQUHDVRQIRUSDVWWKRULXPUHVHDUFK F 7KHFKLHIUHDVRQIRUUHYLYDORILQWHUHVWLVWKDWVWXGLHVWHVWUHDFWRUH[SHULPHQWVDQGSRZHU

UHDFWRUH[SHULPHQWVKDYHGHPRQVWUDWHGWKDWWKRULXPEDVHGIXHOZKHWKHULQFRPELQDWLRQ ZLWK83XRUERWKKDVDWWUDFWLYHIHDWXUHVLQFOXGLQJ

D ORZSURGXFWLRQRI3XDQGPLQRUDFWLQLGHV E EUHHGLQJRIILVVLOHPDWHULDO8

F EXUQLQJRI3XDQG

G WUDQVPXWDWLRQRIPLQRUDFWLQLGHV

- ,Q VSLWH RI ODUJH DPRXQWV RI DFFXPXODWHG GDWD EHWWHU QHXWURQLF GDWD DUH QHHGHG IRU FDOFXODWLRQV

- 7KHSUHVHQWNQRZOHGJHRIWKHWKRULXPUHVHUYHVLVSRRUGXHWRWKHUHODWLYHO\VPDOOHIIRUW H[SHQGHGVRIDU

- 7KH DGYDQWDJHV SUREOHPV DQG SRVVLEOH RSWLRQV RI WKRULXP IXHO PXVW EH UHDOLVWLFDOO\

DVVHVVHGXQGHUFXUUHQWFRQGLWLRQV

5()(5(1&(6

>@ %$;7(5$0HWDO³)69([SHULHQFHLQ6XSSRUWRIWKH*70+55HDFWRU3K\VLFV )XHO3HUIRUPDQFHDQG*UDSKLWH*HQHUDO$WRPLFVUHSRUW*$$

>@ 0$7=,(5$5(&-5³$VVHVVPHQWRI7KRULXP)XHO&\FOHVLQ3UHVVXUL]HG:DWHU 5HDFWRUV´&(3RZHU6\VWHPV7,6

>@ 0$7=,(5$5(&-57(51(<$1³$QHYDOXDWLRQRIGHQDWXUHGWKRULXPIXHO F\FOHVLQSUHVVXUL]HGZDWHUUHDFWRUV´&(3RZHU6\VWHPV7,6

>@ %($9(5:³1XFOHDU3RZHU*RHV2Q/LQH$+LVWRU\RI6KLSSLQJSRUW´*UHHQZRRG 3UHVV

>@ 3,1+(,52 5% %UD]LOLDQ H[SHULHQFH RQ WKRULXP IXHO F\FOH LQYHVWLJDWLRQV SDSHU SUHVHQWHG DW ,$($ $GYLVRU\ *URXS 0HHWLQJ RQ 7KRULXP )XHO &\FOH 3HUVSHFWLYHV 9LHQQD

>@ 5(87(5 + /2+1(57 *+ ³7KH PRGXODU KLJKWHPSHUDWXUH UHDFWRU 1XFOHDU 7HFKQRORJ\´±

>@ 7(8&+(57(58(77(1+-+$$6.$³5HFKQHULVFKH'DUVWHOOXQJGHV+75 0RGXOUHDNWRUV´-XO-XOLFK

>@ *$/3(5,1 $ 5$'.2:6.< $ 72'262: 0 ³$ FRPSHWLWLYH WKRULXP IXHO F\FOHIRUSUHVVXUL]HGZDWHUUHDFWRUVRIFXUUHQWWHFKQRORJ\´SDSHUSUHVHQWHGDW$GYLVRU\

*URXS0HHWLQJRQ7KRULXP)XHO&\FOH3HUVSHFWLYHV9LHQQD

>@ ,17(51$7,21$/ $720,& (1(5*< $*(1&< ³$FFHOHUDWRUGULYHQ V\VWHPV (QHUJ\JHQHUDWLRQDQGWUDQVPXWDWLRQRIQXFOHDUZDVWHVWDWXVUHSRUW´,$($7(&'2&

9LHQQD

>@ -$<$5$0.09³$QRYHUYLHZRIZRUOGWKRULXPUHVRXUFHVLQFHQWLYHVIRUIXUWKHU H[SORUDWLRQ DQG IRUHFDVWIRUWKRULXPUHTXLUHPHQWVLQ WKH QHDU IXWXUH´ 7KRULXPEDVHG 1XFOHDU)XHO&XUUHQW6WDWXVDQG3HUVSHFWLYHV,$($7(&'2&9LHQQD

(17)

>@ ,$($7(&'2& ³1HZ 'HYHORSPHQWV LQ 8UDQLXP ([SORUDWLRQ 5HVRXUFHV 3URGXFWLRQDQG'HPDQG´9LHQQD

>@ ,17(51$7,21$/ $720,& (1(5*< $*(1&< ³,QWHUQDWLRQDO 1XFOHDU )XHO

&\FOH(YDOXDWLRQ´,$($9LHQQD

>@ 6\PSRVLXP RQ 1XFOHDU )XHO &\FOH DQG 5HDFWRU 6WUDWHJLHV $GMXVWLQJ WR 1HZ 5HDOLWLHV.H\,VVXH3DSHU1R,$($9LHQQD

>@ -81*0³3HUVSHFWLYHVRIWKH7KRULXP)XHO&\FOH´-5&,635$

(18)

'(7$,/('&2175,%87('5(32576217+(67$7862)7+25,80)8(/

237,21,17+(9$5,286&28175,(6

,1&(17,9(6$1'-867,),&$7,21)257+(7+25,80)8(/&<&/(

)UDQFH

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

D 3URORQJLQJ H[SORLWDWLRQ RI WKH /:5 DV WKH PRVW PDWXUH DQG ORZHVW FRVW HQHUJ\

SURGXFHUVRQWKHEDVLVRI8IXHO

E 'HVWUXFWLRQ RI 3X DFFXPXODWHG LQ WKH VWRFNV DQG 758V IURP WKH VWDQGDUG /:5 GLVFKDUJH>@

F 8VHRI7KDVWKHSULQFLSDOIXHOZLWKORZZDVWHWR[LFLW\IRUIXWXUH13DQG

G 8VHRI7KEDVHGIXHOLQDFFHOHUDWRUGULYHQV\VWHPV$'6IRUIXUWKHUUHGXFWLRQRIORQJ WHUPWR[LFLW\ULVNVDQGWRHQKDQFHVDIHW\

*HUPDQ\

5HJDUGLQJ WKHLQFHQWLYHVDQGWKH MXVWLILFDWLRQ IRU WKHXVHRID WKRULXP IXHO F\FOH RQH PXVWGLVWLQJXLVKEHWZHHQ

D 7KHFRPPRQLQWHUQDWLRQDOLQWHUHVWV

E 6SHFLILFQDWLRQDOLQFHQWLYHVLQVRPHFRXQWULHVDQG

F 6KRUWDQGORQJWHUPLQFHQWLYHVRIFRXQWULHVDQGLQGXVWU\VXSSOLHUVRSHUDWRUV :LWKUHJDUGWRDWKHIROORZLQJQHZLQFHQWLYHVDQGMXVWLILFDWLRQVFDQEHLGHQWLILHG

- ,PSURYHGQRQSUROLIHUDWLRQIHDWXUHVRIUHDFWRUVDQGIXHOF\FOHVDQG

- %XUQLQJRIWKH3XIURPUHSURFHVVHGUHDFWRUDVVHPEOLHVIXHOLQDRQFHWKURXJKPRGHLI SRVVLEOH

:LWKUHJDUGWRE,QGLDIRUH[DPSOHKDVVPDOOGRPHVWLFUHVRXUFHVRIXUDQLXPZKLOH 7KUHVRXUFHVDUHYHU\ODUJH

:LWKUHJDUGWRF

6KRUWWHUPLQFHQWLYHV

,Q PDQ\ LQGXVWULDOL]HG FRXQWULHV SXEOLF DFFHSWDELOLW\ RI WKH SHDFHIXO XVH RI QXFOHDU HQHUJ\ UHPDLQV D FULWLFDO LVVXH 1HZ QXFOHDU SRZHU SODQWV KDYH RQO\ EHHQ VWDUWHG LQ D IHZ FRXQWULHV +RZHYHU WKH RSWLRQ IRU WKH IXWXUH XVH RI QXFOHDU HQHUJ\ LV RSHQ LQ QHDUO\ DOO FRXQWULHV)RUREYLRXVUHDVRQVWKHRZQHUVRSHUDWRUVRIH[LVWLQJQXFOHDUSODQWVGRQRWZLVKWR HQGDQJHUWKHLUH[LVWLQJRSHUDWLQJOLFHQVHE\PDNLQJODUJHPRGLILFDWLRQVWRWKHSODQWRUFRUH

(19)

GHVLJQ7KXVWKHSRVVLEOHDSSOLFDWLRQRI7KEDVHGIXHOPXVWQRWUHTXLUHVXFKFKDQJHVDQG PXVWQRWDGYHUVHO\DIIHFWVDIHW\IHDWXUHVRIWKHRYHUDOOSODQW

3ODQWGHVLJQIHDWXUHVLQYROYHGZRXOGLQFOXGHKDQGOLQJDQGVWRUDJHIDFLOLWLHVDWSRZHU SODQWVLWHDQGLQWHULPILQDOVWRUDJHDEVRUEHUURGVDQGERURQV\VWHPSODQWDYDLODELOLW\IXHO EXUQXS IXHO FRVWV HWF $IIHFWHG VDIHW\ IHDWXUHV ZRXOG LQFOXGH UDGLDWLRQ H[SRVXUH IRU WKH RSHUDWRUVDQGWKHHQYLURQPHQWDOLPSDFWRIQRUPDORSHUDWLRQDQGDFFLGHQWV

7KHQHDUWHUPDSSOLFDWLRQRI7KEDVHGIXHOLVRQO\DWWUDFWLYHLIFRQYLQFLQJDGYDQWDJHV FDQEHGHPRQVWUDWHGWRWKHSXEOLFDQGWRWKHRZQHUVRSHUDWRUV

- /RZHUIXHOFRVWV

- ,PSURYHGQRQSUROLIHUDWLRQIHDWXUHVHJEXUQLQJRILQVHUWHGDQGRUSURGXFHG3XLQD RQFHWKURXJKPRGHDQG

- 3URGXFWLRQ RI UDGLRDFWLYH ZDVWH ZLWK GLVWLQFWO\ ORZHU UDGLRDFWLYLW\ OHYHOV HVSHFLDOO\

ZLWKOHVVDFWLQLGHV /RQJWHUPLQFHQWLYHV

,UUHVSHFWLYHRIFXUUHQWGLIILFXOWLHVZLWKSXEOLFDFFHSWDQFHRIWKHSHDFHIXOXVHVRIQXFOHDU HQHUJ\WKHXQLYHUVLWLHVDQGUHVHDUFKFHQWHUVDUHREOLJHGWRFRQWLQXHEDVLFUHVHDUFKIRUEHWWHU DQGVDIHUIXWXUHVROXWLRQVIRUWKHGHVLJQDQGWKHVDIHW\RI1XFOHDU3RZHU3ODQWV2QHDVSHFWRI WKLVEDVLFUHVHDUFKLVWKHSRWHQWLDOXVHRI7KEDVHGIXHO6RIDUWKHIROORZLQJLQFHQWLYHVDQG QHHGVKDYHEHHQLGHQWLILHG

- ORQJ WHUP ORZHU GHPDQG IRU XUDQLXP LI WKRULXP LV XVHG H J DQ LQFUHDVH LQ ILVVLOH UHVRXUFHVKLJKFRQYHUVLRQUDWLRRIWKRULXPWR8

- ORZHUQXFOHDUIXHOFRVWV

- XVHRIPRUHSUROLIHUDWLRQUHVLVWDQWIXHOF\FOHV

- EXUQXS RI 3X IURP UHSURFHVVHG UHDFWRU IXHO LQ D RQFHWKURXJK PRGH ZLWKRXW IXUWKHU UHSURFHVVLQJ

- DSSOLFDWLRQ RI 7KEDVHG IXHO PL[HG ZLWK 3X LQ QHZ PHOWSURRI UHDFWRUV LH QR 3X UHOHDVHHYHQZLWKLQWKHFRQWDLQPHQWDQG

- GHPRQVWUDWLRQ RI WKH WKHRUHWLFDO DQG SUDFWLFDO SRVVLELOLWLHV RI WKH 7KEDVHG IXHO LQ UHVHDUFKUHDFWRUVPDWHULDOWHVWUHDFWRUVDQGFRPPHUFLDOQXFOHDUSRZHUSODQWV

,QGLD

7KHWKRULXPIXHOF\FOHZDVRULJLQDOO\FRQFHLYHGDVKDYLQJPXFKKLJKHUIXHOXWLOL]DWLRQ WKDQWKHXUDQLXPF\FOHDWOHDVWZKHQUHVWULFWHGWRWKHUPDOUHDFWRUV)XHOXWLOL]DWLRQLQWKHILUVW JHQHUDWLRQSRZHUUHDFWRUVLVRIWKHRUGHURISHUFHQW7KLVFDQEHLQFUHDVHGWRRUSHUFHQW E\ UHSHDWHG SOXWRQLXP UHF\FOH EXW HYHQ LQ WKH &$1'8 ZLWK WKH KLJKHVW FRQYHUVLRQ UDWLR DPRQJDOOWHFKQRORJLFDOO\SURYHQWKHUPDOUHDFWRUVWKHXSSHUOLPLWWRIXHOXWLOL]DWLRQDSSHDUV WREHQRPRUHWKDQSHUFHQW

7ZR DYHQXHV VXJJHVWHG WKHPVHOYHV DV ZD\V WR LPSURYH IXHO XWLOL]DWLRQ 2QH ZDV GHYHORSPHQW RI IDVWUHDFWRUVIRU WKH XUDQLXP F\FOHDQG WKH RWKHUGHYHORSPHQWRIWKRULXP F\FOHVIRUWKHUPDOUHDFWRUV,QLWLDOO\WKHQXFOHDULQGXVWU\SXUVXHGERWKRSWLRQVEXWZLWKWKH RLOVKRFNRIWKHVHYHQWLHVHQHUJ\FRQVHUYDWLRQFDXJKWRQLQDELJZD\OHDGLQJWRDOHYHOLQJRI SRZHUGHPDQGLQWKHKHDY\FRQVXPHUVRIHQHUJ\YL]WKHZHVWHUQZRUOG,QWKLVVLWXDWLRQRI

(20)

QRVLJQLILFDQWSRZHUJURZWKWKHNQRZQXUDQLXPUHVRXUFHVRIWKHZRUOGFRXOGEHFRQVLGHUHG DGHTXDWHIRUHQHUJ\QHHGVHYHQLIWKHIXHOLQHIILFLHQWILUVWJHQHUDWLRQUHDFWRUVZHUHXVHGDQG ZLWKRXWUHF\FOHRIVSHQWIXHO$QDWXUDOFRQFRPLWDQWRIWKLVZDVWKDWLQFHQWLYHVIRUERWKWKH IDVWUHDFWRUDQGWKHWKRULXPF\FOHWDSHUHGRII

7KDWZDVWZHQW\\HDUVDJR,WPDNHVVHQVHWRGD\WRWDNHVWRFNRIWKHSUHVHQWVLWXDWLRQ DQG GHFLGH ZKHWKHU FLUFXPVWDQFHV KDYH EHHQ DOWHUHG RU ZKHWKHU QHZ LVVXHV KDYH DULVHQ MXVWLI\LQJRUSURYLGLQJLQFHQWLYHVIRUUHRSHQLQJWKHFDVHIRUWKRULXP

D )RUPDQ\WKUHVKROGFRXQWULHVDPRQJZKLFKLV ,QGLDWKHDGYDQWDJHRIVXSHULRUIXHO XWLOL]DWLRQ LQ WKH WKRULXP F\FOH LV UHOHYDQW DQG DQ LQFHQWLYH WR GHYHORS LW %XW WKH DOWHUHG LQWHUQDWLRQDO SROLWLFRHFRQRPLF VWDWH DOVR EULQJV XS D QXPEHU RI RWKHU LQFHQWLYHVIRUWKHWKRULXPF\FOHDQGWKHVHVKRXOGQRWEHLJQRUHG

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

\HDUVDQGLQWKHZRUGVRIRQHDQWLQXFOHDUDFWLYLVWWKDWLVDSHULRGORQJHUWKDQDQ\

NQRZQFLYLOL]DWLRQKDVKDGDFRQWLQXDO H[LVWHQFH7KH DUJXPHQWPD\EHIDOODFLRXV WRGD\VFLYLOL]DWLRQXQOLNH5RPDQ*UHHNRU0D\DQFXOWXUHVLVQRWORFDOO\FRQILQHG +RZHYHUWKHDQWLQXFOHDUPRYHPHQWLVQRWDUDWLRQDOEXWDQHPRWLRQDOLVVXHDQGLW PDNHVVHQVHIRUWKHQXFOHDULQGXVWU\WRDOOD\VXFKIHDUVHYHQLIJURXQGOHVV7XUQLQJWR WKRULXPLQSODFHRIXUDQLXPFDQGRWKLV

F 1RQSUROLIHUDWLRQ LV DQRWKHU LPSRUWDQW FRQFHUQ WRGD\ 7KH IHDU RI PRUH DQG PRUH FRXQWULHV DFTXLULQJ QXFOHDU ZHDSRQV LV VR JUHDW WKDW WKHUH LV D WHQGHQF\ WR GLVPLVV QXFOHDU SRZHU HQWLUHO\ 7KH DYDLODELOLW\ RI SHU FHQW HQULFKHG XUDQLXP KDV EHHQ FXUWDLOHGDQGWKHUHLVWUHPHQGRXVLQVHFXULW\DERXWSOXWRQLXPSURGXFHGLQFRPPHUFLDO UHDFWRUV,QVXFKDVFHQDULRWKHWKRULXPF\FOHPHULWVUHQHZHGVWXG\EHFDXVHWKH\OHQG WKHPVHOYHVWRVSHFLDOGHVLJQIRUQRQSUROLIHUDWLRQ)RUH[DPSOHLIWKRULXPLVLQLWLDOO\

PL[HG ZLWK8 WKH8 SURGXFHG ZLOO EH FRQWDPLQDWHG ZLWK8 IURP ZKLFK LW FDQQRWHDVLO\EHVHSDUDWHG7KHSURSRUWLRQVRIWKRULXPDQG8FDQEHDGMXVWHGVRWKH ILQDOXUDQLXPGRHVQRWH[FHHGDILVVLOHFRQWHQWRISHUFHQWRUDQDFFHSWDEOHYDOXH ,W LV QRW SRVVLEOH WR GHYHORS VLPLODU VROXWLRQV IRU WKH SOXWRQLXP SURGXFHG LQ WKH XUDQLXPF\FOH

8KDVDQRWKHUTXDOLW\PDNLQJLWQDWXUDOO\SUROLIHUDWLRQUHVLVWDQW8SURGXFHGLQ D UHDFWRU LV DOZD\V FRQWDPLQDWHG ZLWK8 7KLV8 XQGHUJRHV DQ DOSKD GHFD\ WR SURGXFH7KWKHQLVIROORZHGE\DGHFD\FKDLQLQFOXGLQJ%LDQG7LERWKKDUG JDPPDHPLWWHUV7KHSUHVHQFHRIWKHVHWZRPDNHV8DGLIILFXOWPDWHULDOWRKDQGOH DQGWKHUHE\WRGLYHUWWRZHDSRQVXVH

G 7RGD\WKHZRUOGLVDZDVKLQSOXWRQLXP&RPPHUFLDOUHDFWRUVJHQHUDWHODUJHTXDQWLWLHV RI FLYLO SOXWRQLXP DQG ZHDSRQ JUDGH SOXWRQLXP LV DYDLODEOH IURP GLVPDQWOHG ZDUKHDGV7KHUHLV DTXHVWLRQRIZKDW LVWREHGRQHZLWK WKLVSOXWRQLXP ,IQXFOHDU WHUURULVPLVDVHULRXVFRQFHUQWKHQDQ\NLQGRIEXULDORUGLVSRVDOZRXOGEHXQZLVH

(21)

EHFDXVH VXFK VWRUHV FRXOG IDOO LQWR WKH ZURQJ KDQGV ,Q ORQJ WHUP VWRUDJH PXFK SOXWRQLXP DFWLYLW\ ZLOO GHFD\ PDNLQJ KDQGOLQJ HDVLHU IRU DQ\RQH UHPRYLQJ LW IRU XQGHVLUDEOH XVHV 7KRULXP F\FOHV RIIHU D VLPSOH ZD\ RXW RI WKLV SUREOHP 7KH SOXWRQLXPFDQEHFRQYHUWHGLQWROHVVGDQJHURXV8ZKLFKFDQEHKHOGLQDUHODWLYHO\

EHQLJQIRUPE\PL[LQJLWZLWK87KLVZD\RQHQRWRQO\HOLPLQDWHVSOXWRQLXPEXW DOVRGRHVLWHFRQRPLFDOO\E\JHQHUDWLQJHQHUJ\DQGFRQYHUWLQJLWLQWRDUHVHUYH

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

I 7KHKLJKHUHWDYDOXHRI8DOVRKDVWKHUHVXOWWKDWVZLQJVRYHUWKHIXHOOLIHWLPHRIWKH ILVVLOHFRQWHQWDQGUHDFWLYLW\RIWKRULXPIXHOVDUHPXFKVPDOOHUWKDQLQXUDQLXPF\FOHV 7KXV RYHUWKHOLIHWLPH RID FRUH YDULDWLRQV LQUHDFWLYLW\ DQG SRZHU GLVWULEXWLRQDUH OHVVWKDQLQDXUDQLXPFRUH7KLVSURSHUW\JLYHVDVLJQLILFDQWO\ JUHDWHUIOH[LELOLW\WR SURJUDPV EDVHG RQ WKRULXP ,I SROLWLFRHFRQRPLF IDFWRUV GHPDQG FKDQJHV LQ WKH QXFOHDUSRZHUJURXQGUXOHVDWKRULXPF\FOHFDQDGMXVWWRFKDQJLQJFRQGLWLRQVPXFK EHWWHUWKDQXUDQLXPEDVHGF\FOHV

)RUH[DPSOHWRGD\LWVHHPVLPSRUWDQWWRUHGXFHDOOSOXWRQLXPVWRFNVEXWLQWKHIXWXUH DOWHUHG SHUFHSWLRQV PD\ GLFWDWH WKH LPSRUWDQFH RI PD[LPL]LQJ WKH HQHUJ\ H[WUDFWHG IURPSOXWRQLXP,WLVLQWHUHVWLQJWRFRPSDUHWKHXUDQLXPDQGWKRULXPF\FOHVLQVXFKD VFHQDULR,QWKHXUDQLXPF\FOHWKHRQO\ZD\WRHOLPLQDWHSOXWRQLXPLVWREXUQLWLQDQ LQHUWPDWUL[7KLVSURFHVVLUUHWULHYDEO\JHWVULGRISOXWRQLXPDQGODWHUQRWKLQJLVOHIW IRUHQHUJ\SURGXFWLRQ,QWKHWKRULXPF\FOHKRZHYHUSOXWRQLXPLVFRQYHUWHGLQWR8 DQGFRQWLQXHVWREHDYDLODEOHIRUHQHUJ\SURGXFWLRQ

,WLVSHUWLQHQWWRDGGWKDWWKHDERYHVFHQDULRLVQHLWKHUDFDGHPLFQRUZLVKIXOWKLQNLQJ LQ IDFW LW LV YHU\ SUREDEOH 7KH HQHUJ\ H[FHVV WRGD\ LV VXSSRUWHG E\ ODUJH LQVWDOOHG FDSDFLWLHVRIQXFOHDUSRZHULQWKHZHVWHUQZRUOG,IQXFOHDUSRZHULVUHDOO\SKDVHGRXW WKHHQHUJ\FUXQFKZLOOPDNHLWVHOIIHOWRQFHDJDLQ$OUHDG\WKHUHKDYHEHHQUHSRUWVRI EURZQRXWVIURPVRPHSDUWVRIWKH86$

J ,WLVLPSRUWDQWWRHPSKDVL]HWKHHDVHZLWKZKLFKWKRULXPEDVHGIXHOFDQEHEDFNILWWHG LQWRMXVWDERXWDQ\H[LVWLQJUHDFWRU7KHDGYDQWDJHVRIEHWWHUQHXWURQHFRQRP\FDQEH UHDOL]HG LQ DOO PRGHUQ UHDFWRUV ZLWK WKHLU SURYHQ WHFKQRORJ\ ZKHWKHU OLJKW ZDWHU KHDY\ ZDWHU RU JDV FRROHG UHDFWRUV %UHHGLQJ ZLWK WKH WKRULXP F\FOH KDV EHHQ GHPRQVWUDWHG LQ WKH 6KLSSLQJSRUW UHDFWRU LQ WKH 86$ DQG YHU\ KLJK EXUQXSV KDYH EHHQUHDOL]HGLQWKH$95RI*HUPDQ\

(22)

K 7KHVHYHQSRLQWVDERYHDUHSHUWLQHQWEXWLWLVSRVVLEOHWKDWDWWKHPRPHQWLQGXVWU\

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

-DSDQ

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

$ ODUJH QXPEHU RI XQLYHUVLW\ SURIHVVRUV WRJHWKHU ZLWK VRPH RI WKH UHVHDUFK VWDII RI -DSDQ $WRPLF (QHUJ\ 5HVHDUFK ,QVWLWXWH -$(5, KDYH SHUIRUPHG UHVHDUFK SURMHFWV RQ WKH WKRULXPIXHOF\FOHZLWKVXSSRUWIURPD*UDQWLQ$LGIRU6FLHQWLILF5HVHDUFKE\WKH0LQLVWU\

RI(GXFDWLRQ6FLHQFHDQG&XOWXUH7KHLQFHQWLYHVDQGMXVWLILFDWLRQZHUHDVIROORZV D 6HFXULW\RIHQHUJ\VXSSO\

E 0XFKORZHUSURGXFWLRQRIORQJOLYHGWUDQVXUDQLFDFWLQLGHQXFOLGHV F %XUQXSRISOXWRQLXPLQVWRFNSLOHDQGLWVVXEVWLWXWLRQE\8DQG G 7KHUPDOEUHHGLQJRI8LQFRQYHQWLRQDOOLJKWZDWHUUHDFWRUV

7KHVHSURMHFWVHQGHGLQ0DUFKEXWPDQ\SURIHVVRUVDQGUHVHDUFKVWDIIRI-$(5, VWLOO FRQGXFW H[SHULPHQWDO DQG WKHRUHWLFDO ZRUN RQ WKRULXP DQG VHYHUDO QHZ JURXSV KDYH UHFHQWO\MRLQHGWKHP7KHLQFHQWLYHVIRUWKLVUHQHZHGLQWHUHVWDUH

D 5HF\FOLQJDQGWUDQVPXWDWLRQRIORQJOLYHGWUDQVXUDQLFQXFOLGHV E ,PSURYHPHQWRIQRQSUROLIHUDWLRQSRZHUJHQHUDWLRQDQG

F (QKDQFHPHQW RI8EUHHGLQJ E\WKHFRPELQDWLRQ RIDQDFFHOHUDWRU DQGD VXEFULWLFDO DVVHPEO\

5XVVLDQ)HGHUDWLRQ

$QDO\VLVRIWKHFXUUHQWVLWXDWLRQLQWKHQXFOHDUSRZHU13ILHOGSDUWLFXODUO\UHJDUGLQJ IXHO F\FOHV >±@ OHDGV WR WKH FRQFOXVLRQ WKDW UHYLVLRQ LV QHFHVVDU\ IRU VHYHUDO WUDGLWLRQDOVWUDWHJLHVIRU13GHYHORSPHQW7KHQHFHVVLW\RIVROXWLRQVIRUWKHIROORZLQJPDMRU SUREOHPVLQWKH13DUHDEHFRPHVREYLRXV

- (QYLURQPHQWDOSUREOHPVLQFOXGLQJGLVSRVDORIUDGLRDFWLYHZDVWHV

- 3UREOHPVRIVDIHW\IRUQXFOHDUSRZHUSODQWVDQGQXFOHDUIXHOF\FOHV1)&

(23)

- 1RQSUROLIHUDWLRQ SUREOHPV FDXVHG E\ H[FHVV SOXWRQLXP DFFXPXODWLRQ LQFOXGLQJ

ZHDSRQVTXDOLW\GLVFKDUJHPDWHULDO

,QSULQFLSOHIDVWQHXWURQUHDFWRUVDUHFDSDEOHRIEXUQLQJQRWRQO\H[FHVVSOXWRQLXPRI QHDUO\DOOSRVVLEOHFRPSRVLWLRQVEXWDOVRRWKHUWUDQVXUDQLFHOHPHQWV>±@+RZHYHU WKHIDVWUHDFWRUVRI³WUDGLWLRQDO´GHVLJQEUHHGSOXWRQLXPUDWKHUWKDQGHVWUR\LW7KXVWKHUHDUH VXJJHVWLRQV WR PRGHUQL]H IDVW UHDFWRU GHVLJQV DQG IXHO F\FOHV WR DFW DV EXUQHU UHDFWRUV +RZHYHUWKLVRSWLRQRQO\GHVWUR\VDYDOXDEOHILVVLOHPDWHULDOWKDWFDQODWHUEHXVHIXO6WXGLHV KDYHFRQILUPHGWKHSRVVLELOLW\RIVROYLQJWKHVH13GHYHORSPHQWSUREOHPVE\WKHLQWURGXFWLRQ RI VR±FDOOHG PL[HG IXHO F\FOHV XVLQJ WKH QDWXUDO UHVRXUFHV RI XUDQLXP 8 DQG8 WKRULXPDQGWKHDUWLILFLDOILVVLOHLVRWRSHV3XDQG8LQWKHUPDODQGIDVWQHXWURQUHDFWRUV

>±@

,Q WKLV FDVH IDVW UHDFWRU FRUHV ZRXOG EH ORDGHG ZLWK XUDQLXPSOXWRQLXP IXHO ZKLOH WKRULXPZRXOGEHWKHIHUWLOHPDWHULDOIRUWKHEODQNHWVWKXVHQDEOLQJDQDFFXPXODWLRQRI8 IRUXVHDVIXHOIRUOLJKWZDWHUUHDFWRUV

7ZR LPSRUWDQW SUREOHPV FRXOG EH VROYHG VLPXOWDQHRXVO\ E\ FKDQJLQJ WR8 DQG WKRULXP LQ WKHUPDO UHDFWRUV IRU LQVWDQFH ::(5 W\SHV )LUVW WKH QHJDWLYH WHPSHUDWXUH FRHIILFLHQW LV ODUJHU DQG WKH FRUH H[FHVV UHDFWLYLW\ LV VPDOOHU 6HFRQG WKH FRQWHQW RI KLJKHU WUDQVXUDQLF DQG WUDQVSOXWRQLXP LVRWRSHV DUH VLJQLILFDQWO\ ORZHU LQ WKH VSHQW IXHO RI WKHVH UHDFWRUV>@7KHLQWURGXFWLRQRIDXUDQLXPSOXWRQLXPWKRULXPPL[HGIXHOF\FOHZRXOGOD\

WKH IRXQGDWLRQIRUIXWXUH13IUHHRIVXFK GLVDGYDQWDJHV DV DFFXPXODWLRQRISOXWRQLXP DQG RWKHUWUDQVXUDQLFHOHPHQWV>@

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

- 7KH VSHFLILF QHXWURQLF DQG SK\VLFDO SDUDPHWHUV RI WKRULXPXUDQLXP IXHO F\FOH FRPSRQHQWVRSHQWKHSRVVLELOLW\RIDQLPSURYHPHQWLQOLJKWZDWHUUHDFWRUUHOLDELOLW\DQG VDIHW\ DQG WHFKQLFDO DQG HFRQRPLFDO FKDUDFWHULVWLFV &RPSDUHG WR WKH RWKHU ILVVLOH LVRWRSHV8 KDV WKH KLJKHVW \LHOG RI QHXWURQV SHU ILVVLRQ 7KLV DOORZV DQ LQFUHDVHG EUHHGLQJ UDWLR %5 RI WKH WKHUPDO UHDFWRUV ZLWK8 RI ± SHU FHQW DQG RI PLQLPL]LQJUHDFWLYLW\VZLQJGXULQJUHDFWRURSHUDWLRQ

- $ VLJQLILFDQWO\ ZHDNHU SRZHU DQG WHPSHUDWXUH GHSHQGHQFH RI WKH 8 QXFOHDU SDUDPHWHUV LV IDYRUDEOH IRU UHDFWRU VDIHW\ HVSHFLDOO\ ZKHQ FKDQJLQJ WKH /:5 IURP FROGWRKRWFRQGLWLRQV,QDGGLWLRQLWLPSURYHVWKHDGYDQWDJHVRIXVLQJWLJKWJULGV LQFOXGLQJWKHSRVVLELOLW\RIDYRLGLQJWKHUHDFWRU[HQRQSRLVRQLQJHIIHFW

- 7KH\LHOGRIILVVLRQSURGXFWVDIIHFWLQJUHDFWRUSRLVRQLQJGXULQJRSHUDWLRQVXFKDV;H 6PHWFLVVLJQLILFDQWO\ORZHUIRU8FRPSDUHGWRWKDWIRU8DQGSOXWRQLXP7KLV UHVXOWVLQGHFUHDVLQJDYHUDJHFURVVVHFWLRQYDOXHVRIQHXWURQDEVRUSWLRQE\8ILVVLRQ SURGXFWV E\ ± SHU FHQW DQG KHQFH ORZHULQJ UHDFWLYLW\ ORVV DQG LQFUHDVLQJ WKH OLIHWLPHRIWKHFRUH

(24)

- 7KH PHOWLQJ SRLQW RI PHWDOOLF WKRULXP LV •& WKH WHPSHUDWXUH RI WKH ILUVW SKDVH WUDQVLWLRQLV•&DQGWKHWKRULXPR[LGHPHOWLQJWHPSHUDWXUHLV•&

- 7KH UDGLDWLRQ UHVLVWDQFH RI PHWDOOLF WKRULXP LV VLJQLILFDQWO\ KLJKHU WKDQ XUDQLXP IXHO DQG FORVH WR WKDW RI FHUDPLF IXHO ± SHU FHQW ),0$ EXUQXS YDOXHV KDYH EHHQ FRQILUPHGE\H[SHULPHQW

- 0HWDOOLFWKRULXPLQWHUDFWLRQZLWKZDWHUDQGVWHDPLVOHVVLQWHQVHWKDQPHWDOOLFXUDQLXP - 7HFKQRORJLHVKDYHDOUHDG\EHHQGHYHORSHGIRUWKHSURGXFWLRQRIQHZIXHOFRPSRVLWLRQV

RIWKHFHUPHWW\SHXVLQJWKRULXP827K3X27KHWF

7KH GLVDGYDQWDJHV RI WKRULXP IXHOHG UHDFWRUV DUH WKH UHDFWLYLW\ SRLVRQLQJ HIIHFWV RI SURWDFWLQLXPDQGWKH DFFXPXODWLRQRIWKHKLJKgDFWLYLW\LVRWRSH8+RZHYHUWKHODWWHU SUREOHP LV QRW GHFLVLYH LQ DQ\ FDVH VLQFH WKH FKDQJH WR QXFOHDU IXHO UHF\FOLQJ LQHYLWDEO\

UHTXLUHVWKHGHYHORSPHQWRIUHPRWHO\FRQWUROOHGSURFHVVHVIRUIXHOIDEULFDWLRQDQGKDQGOLQJ 7KHDUUDQJHPHQWRIQDWXUDOWKRULXPLQWRWKHEODQNHWVDQGFRUHVRI/0)5W\SHUHDFWRUV

LQFOXGLQJ PRGXODU UHDFWRUV EXW HVSHFLDOO\ LQ WKH KHWHURJHQHRXV DUUDQJHPHQW UHVXOWV LQ VLJQLILFDQW LPSURYHPHQW LQ VDIHW\ FKDUDFWHULVWLFV ,W IDYRUV WKH DFKLHYHPHQW RI D QHJDWLYH YDOXHRIWKHVRGLXPYRLGUHDFWLYLW\FRHIILFLHQW695&>@%\XVLQJ8 LQWKHFRUHDQDGGLWLRQDOUHGXFWLRQRIWKH695&SRVLWLYHFRHIILFLHQWLVSRVVLEOH

7KLVLVFDXVHGE\WKHZHDNHUSRZHUGHSHQGHQFHRI8QXFOHDUSDUDPHWHUVDQGE\D VLJQLILFDQWO\ORZHUWRWLPHVFRQWULEXWLRQRIWKHWKRULXPILVVLRQRZLQJWRLWVORZQHXWURQ DEVRUSWLRQFURVVVHFWLRQDQGKLJKILVVLRQWKUHVKROGHQHUJ\6LQFHWKHDYHUDJHDEVRUSWLRQFURVV VHFWLRQIRUWKRULXPZLWKLQWKHIDVWUHDFWRUQHXWURQVSHFWUXPLVKLJKHUWKDQWKDWIRUXUDQLXPD VXIILFLHQWO\KLJK8SURGXFWLYLW\LVSURYLGHGLQWKHVPDOOVL]HEODQNHWV

$QHVVHQWLDOIHDWXUHRIIDVWUHDFWRUVFDXVHGE\WKHSRVVLELOLW\RISURYLGLQJDQRSWLPDO WKRULXPFRUHQHXWURQVSHFWUXPIRU8SURGXFWLRQLVWKHFDSDELOLW\RISURGXFLQJQHDUO\SXUH

8ZLWKD8FRQWHQWRIRQO\>@7KLVHIIHFWKDVEHHQVXEVWDQWLDWHGE\

FDOFXODWLRQVDW,33(DQGFRQILUPHGE\H[SHULPHQWDOO\LUUDGLDWLQJWKRULXPVDPSOHVLQWKH%1 UHDFWRU7KHSRVVLELOLW\RILVRWRSHSXUH8SURGXFWLRQDWWKLVLQLWLDOVWDJHRIWKHWKRULXP IXHOF\FOHLVLPSRUWDQWVLQFHLWDOORZVEDVLFH[SHULPHQWVWRZDUGUHDOL]DWLRQRIWKLVIXHOF\FOH ,QDGGLWLRQLWVLPSOLILHV8DQGWKRULXPIXHOPDQXIDFWXUHIRUOLJKWZDWHUUHDFWRUVDWOHDVW IRUWKHILUVWVWDJHRIIXHOXWLOL]DWLRQLHZLWKRXWPXOWLSOHUHF\FOLQJ

)DVW UHDFWRUV RI WKH %1 W\SH %1 DQG %1 FDQ SURGXFH XS WR NJD RI LVRWRSHSXUH8KDYLQJD8FRQWHQWRIDERXW[6SHFLDOL]HGKHWHURJHQHRXVUHDFWRUV

%1 GHVLJQHG IRU SOXWRQLXP DQG WKRULXP IXHO F\FOHV FDQ EXUQ XS WR NJD RI SOXWRQLXPLQDPL[WXUHZLWKRWKHUWUDQVXUDQLFHOHPHQWVDQGWRDFFXPXODWHXSWRNJRI

8SHU\HDU>@

,W VKRXOG EH HPSKDVL]HGWKDW WKH FRQFHSWRI D PL[HG XUDQLXPSOXWRQLXP IXHOF\FOHV DQG UHDFWRU IDFLOLWLHV GHYHORSHG RQ LWV EDVLV GRHV QRW FRQWUDGLFW WKH DFKLHYHPHQWV DQG H[SHULHQFHV JDLQHG VR IDU LQ QXFOHDU SRZHU GHYHORSPHQW 2Q WKH FRQWUDU\ WKH SURSRVHG FRQFHSWH[SDQGVGHYHORSPHQWSURVSHFWVIRUWUDGLWLRQDOUHDFWRUW\SHVSURGXFHGE\WKHQXFOHDU LQGXVWU\SULPDULO\OLJKWZDWHUDQGIDVWUHDFWRUV

$Q LPSRUWDQW SUREOHP ZKRVH VROXWLRQ GHWHUPLQHV WR D FRQVLGHUDEOH H[WHQW WKH VXFFHVVIXO UHDOL]DWLRQ RI D WKRULXP IXHO F\FOH LV WKH UDGLRFKHPLFDO UHSURFHVVLQJ RI WKH LUUDGLDWHGIXHO,WVKRXOGEHXQGHUVFRUHGWKDWWKHUHDUHWZRSURFHVVFKDLQVIRUWKHLUUDGLDWHG WKRULXP PDWHULDO UHSURFHVVLQJ 1RQH RI WKHVH FKDLQV FDQ EH FRPELQHG ZLWK XUDQLXP

(25)

SOXWRQLXP IXHO UHSURFHVVLQJ XQGHU RSHUDWLRQ GXH WR WKH ULVN RI PXWXDO SROOXWLRQ GXULQJ UHSURFHVVLQJRIZDVWHVGHIHFWLYHSURGXFWVHPHUJHQF\VSLOODJHHWF

7KHILUVWFKDLQLVH[WUDFWLRQRIORZDFWLYLW\8IURPWKHLUUDGLDWHGWKRULXPEODQNHWVRI /0)5VDQGWKHUHF\FOLQJRIORZDFWLYLW\WKRULXP7KHVHFRQGFKDLQLVWKHUHSURFHVVLQJRI KLJKO\UDGLRDFWLYHLUUDGLDWHGWKRULXPSOXWRQLXPIXHO

7KHFRPELQDWLRQRIWKHVHWHFKQRORJLHVVKRXOGEHVWXGLHGFDUHIXOO\DOWKRXJKWKHEDVLF DSSURDFKHVDUHDOUHDG\VXIILFLHQWO\FOHDU,QSDUWLFXODULWLVQHFHVVDU\WRDFFRXQWIRUDSDUWLDO DFFXPXODWLRQ RI 73(V DQG WKHLU GDXJKWHU UDGLRQXFOLGHV LQFOXGLQJ QHSWXQLXP ZKHQ LUUDGLDWLQJWKRULXPSOXWRQLXPFRPSRVLWLRQV$OVRWKHWLPHUHTXLUHGIRUIXHOFRROLQJKDVQRW

\HWEHHQGHWHUPLQHGDQGQRUKDYHWKHDFFXPXODWHGDPRXQWVRIWULWLXPDQG,WKHVSHFWUXP RIUDGLRQXFOLGHVDQGRWKHUEDVLFSDUDPHWHUVIRUWKHUDGLRFKHPLFDOSODQW

)XHO FRPSRVLWLRQ FKRLFHV IRU DOO W\SHV RI UHDFWRUV DUH YHU\ LPSRUWDQW :KLOH PHWDOOLF WKRULXPLVTXLWHDFFHSWDEOHIRUWKHIDVWUHDFWRUEODQNHWVIRUWKH/0)5WKHIXHOFRPSRVLWLRQ SUREOHPPXVWVWLOOEHVROYHGIRU::(5UHDFWRUFRUHV$VDPDWWHURIIDFWDFFRUGLQJWRWKH UHSURFHVVLQJ FRQGLWLRQV RI WUDGLWLRQDO R[LGH IXHO FRPSRXQGV FRQWDLQLQJ WKRULXP WKH GLVVROXWLRQ RI WKHVH FRPSRXQGV LV UHTXLUHG LQ D QLWURJHQDFLG PHGLD ZLWK WKH DGGLWLRQ RI K\GURIOXRULF DFLG LQ VXFK D FRQFHQWUDWLRQ DV WR FRUURGH WKH HTXLSPHQW VSHFLDO FKURPLXP QLFNHODOOR\V%HVLGHVZKHQXVLQJWKHR[LGHIXHOWKHFDSDFLW\RIWKHGLVVROXWLRQXQLWOLPLWV WKHZKROHSURFHVV)URPWKLVPHWDOFHUDPLFFRPSRXQGVDUHRIJUHDWLQWHUHVWHVSHFLDOO\LQD 3X27KW\SHIXHOXWLOL]DWLRQ

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

FRQWUROOHGSURFHVVHVRIIXHOPDQXIDFWXULQJDQGKDQGOLQJ

86$

&XUUHQWO\QRZRUNLVXQGHUZD\LQWKH8QLWHG6WDWHVRQWKHWKRULXPIXHOF\FOHQRUDUH WKHUHSODQVWRXWLOL]HLWLQWKHIXWXUH$KLDWXVRQQXFOHDUFRQVWUXFWLRQFRXSOHGZLWKWKHORZ FRVWRIXUDQLXPDQGODFNRIJRYHUQPHQWVXSSRUWIRUUHVHDUFKPDNHLWXQOLNHO\WKDWWKRULXP IXHOF\FOHZRUNZLOOEHSHUIRUPHGLQWKHQH[WVHYHUDO\HDUV

(26)

,Q WKH ORQJHU WHUP UHVRXUFH XWLOL]DWLRQ DQG IXHO F\FOH FRVW FRQFHUQV PXVW OHDG WR UHQHZHG LQWHUHVW LQ WKLV IXHO F\FOH ,Q DGGLWLRQ DQ LQFUHDVLQJ DZDUHQHVV RI DFWLQLGH ZDVWH GLVSRVDOSUREOHPVDQGJURZLQJFRQFHUQVDERXWWKHSUROLIHUDWLRQSRWHQWLDORI/:5SOXWRQLXP GLVFKDUJHPD\HYHQWXDOO\OHDGWRUHRSHQLQJZRUNLQWKLVDUHD

7KRULXP IXHO F\FOHVXWLOL]LQJ EUHG8DV D ILVVLOH PDWHULDO KDYH LQKHUHQW DGYDQWDJHV RYHU8 DQGSOXWRQLXP ILVVLOHV\VWHPVIRUWKHUPDO UHDFWRU DSSOLFDWLRQV 7KLV DGYDQWDJH LV VKRZQ LQ WKH WDEOH EHORZ FRPSDULQJ UHSUHVHQWDWLYH HWD g YDOXHV IRU WKH YDULRXV ILVVLOH LVRWRSHV LQ D W\SLFDO 3:5 WKHUPDO UHDFWRU VSHFWUXP $V FDQ EH VHHQ IURP WKH WDEOHg WKH DYHUDJHQXPEHURIILVVLRQQHXWURQVSURGXFHGSHUWKHUPDOQHXWURQDEVRUSWLRQLVFRQVLGHUDEO\

KLJKHUIRU8WKDQIRUDQ\RWKHUILVVLOHQXFOLGH

5HSUHVHQWDWLYHWKHUPDO

h

YDOXHVIRU883XDQG3X

8 8 3X 3X

h

H9

h

W\SLFDO3:5VSHFWUXP

7KHKLJKg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

5()(5(1&(6

>@ 6$/9$725(6 0 6/(66$5(9 , 8(0$7680 ³*OREDO $SSURDFK WR 7UDQVPXWDWLRQRI5DGLRDFWLYH1XFOHL´16(S±

>@ ,17(51$7,21$/ $720,& (1(5*< $*(1&< ³$ )UHVK /RRN DW WKH 7KRULXP&\FOH´([SHUW5HSRUW,$($

>@ +$0,/721 &- $/%(567(,1 ' %$;7(5$0 ³0D[LPXP 3OXWRQLXP 'HVWUXFWLRQ:LWKRXW5HF\FOH´*HQHUDO$WRPLFVUHSRUW*$

>@ $720,&(1(5*<&200,66,21-$3$1³/RQJWHUP3URJUDPIRU5HVHDUFK 'HYHORSPHQWDQG8WLOL]DWLRQRI1XFOHDU(QHUJ\´

>@ .$=$176(9 *1 0852*29 90 752<$1290) HW DO ³1XFOHDU )XHO&\FOHRQWKH%DVHRI7KDQG8´,33(SUHSULQW1R

>@ .2&+/³7UDQVXUDQLFHOHPHQWF\FOHLQ/:5)5V\PELRVLV´3URF)LIWK,QWHUQ

&RQI (PHUJLQJ 1XFOHDU (QHUJ\ 6\VWHPV ,&(1(6 .DUOVUXKH :RUOG 6FLHQWLILF6LQJDSRUH

>@ 752<$129 0) 0852*29 90 5$6.$&+ )3 &+(5129/$ HW DO³$OWHUQDWLYHQXFOHDUIXHOF\FOHIRUHQYLURQPHQWDOO\VDIHQXFOHDUSRZHU´3URF

&0($0HPEHU6WDWHV&]6)55]KH]K

>@ 0852*29 90 752<$129 0) 6+0(/(9$1 ³7KRULXP 8VH LQ 1XFOHDU5HDFWRUV´0RVFRZ(QHUJRDWRPL]GDW

>@ 7(//(5 ( ³8QGHUJURXQG QXFOHDU UHDFWRUV´ 3UHSDUHG IRU WK 6HVVLRQ ,QWHUQDWLRQDO 6HPLQDUV RQ 3ODQHWDU\ (PHUJHQFLHV 1$72 :RUNVKRS RQ 'LVDUPDPHQW7HFKQRORJLHV(ULFH6LFLO\,WDO\

(27)

>@ ,17(51$7,21$/ &200,66,21 21 5$',2/2*,&$/ 3527(&7,21 3HUJDPRQ 3UHVV ³7KH 0HWDEROLVP RI 3OXWRQLXP DQG 5HODWHG (OHPHQWV´ ,&53 3XEOLFDWLRQ1R2[IRUG

>@ 752<$129 0) 0852*2990 ³6DIH DQG (QYLURQPHQWDOO\ $FFHSWDEOH 1XFOHDU)XHO&\FOH´3RZHU(QJLQHHULQJ&RQVWUXFWLRQ

>@ 1,.$01,1 $5 6,527.,1 9<$ ³3RWHQWLDO :D\V RI )XHO &\FOH ,PSURYHPHQWLQ8665´5HSRUW,$($1R±

>@ 9$1'(1%( ³8UDQLXP DQG SOXWRQLXP UHF\FOH´ )UDPDWRPH &RQIHUHQFH DQG ([KLELWLRQ(XUH[SR/\RQ)UDQFH9ROS±

>@ .2&+(7.29 /$ 0$79(<(9 9, 0852*29 90 752<$129 0) ³$GYDQFHG %1W\SH IDVW UHDFWRU FRQFHSW XQGHU QHZ FRQGLWLRQ RI QXFOHDU SRZHU HQJLQHHULQJ GHYHORSPHQW´ 3URF (QF (16$16)UDPDWRPH &RQI DQG ([KLELWLRQ(XUH[SR/\RQ)UDQFH9ROS±

>@ )5((0$1 /% %($1'2,1 %5 )5('(5,&.6215$ HW DO ³3K\VLFV H[SHULPHQWV DQG OLIHWLPH SHUIRUPDQFH RI WKH OLJKW ZDWHU´ 1XFO 6FL (QJ

>@ ,17(51$7,21$/ $720,& (1(5*< $*(1&< ³,QWHUQDWLRQDO (YDOXDWLRQ RI 1XFOHDU )XHO &\FOHV ,1)&( 3URVSHFWV RI )XHO &\FOH DQG 5HDFWRU &\FOHV´

5HSRUWRIWK:*,$($9LHQQD

>@ ,1)&('HS:* ³/LJKW :DWHU 5HDFWRU 3:5 ZLWK 7K8 &\FOH DQG 8 5HF\FOH2QO\´)5*HUPDQ\

>@ ,1)&('HS:* ³&RQFHSWXDO 'HVLJQ RI D 4XDVLKRPRJHQHRXV 3UHVVXULVHG +HDY\ :DWHU 5HDFWRU WR EH 2SHUDWHG LQ WKH &ORVHG 7K 8 )XHO &\FOH´

)5*HUPDQ\

>@ ,1)&(3HS:*³$GYDQFHG7KRULXP&\FOHVLQ/:5VDQG+:5V´,VUDHO

>@ ,1)&('HS:*³'DWD%DVHIRUD&DQGX²3+:2SHUDWLQJRQWKH7KRULXP

&\FOH´&DQDGD

>@ ,1)&('HS:* ³)HDVLELOLW\ 6WXG\ DQG (FRQRPLFV $QDO\VLV RQ 7KRULXP 8WLOL]DWLRQLQ+HDY\:DWHU5HDFWRU´,QGLD

>@ ,1)&('HS:* ³7KH 6WDWH RI WKH $UW RQ WKH 7KRULXP &\FOH LQ ,WDO\´

>@ ,1)&('HS:*³$VSHFWVRQ7KRULXP8WLOL]DWLRQLQ+HDY\:DWHU5HDFWRUV´

5RPDQLD

>@ ,1)&('HS:*³/(8DQG7KRULXP)XHO&\FOHVIRUWKH+LJK7HPSHUDWXUH 5HDFWRU2QFH7KURXJKDQG5HF\FOH´8.

>@ 0852*2990,/<81,19*=,1,1$,HWDO³0HWDOOLFIXHOIDVWEUHHGHU UHDFWRUVLQWKHXUDQLXPSOXWRQLXPDQGWKRULXPIXHOF\FOH´3URF)LIWK,QWHUQ&RQI (PHUJLQJ 1XFOHDU (QHUJ\ 6\VWHPV ,&(1(6 .DUOVUXKH :RUOG 6FLHQWLILF 6LQJDSRUH

(28)

67$7(2)7+25,8086(,132:(55($&7256 )UDQFH

7KH7KF\FOHKDVEHHQ DVXEMHFWRIVFLHQWLILFUHVHDUFKRI FRQVLGHUDEOHLQWHUHVWIRUWKH ODVWVHYHUDO\HDUV+RZHYHUDUHDVRIUHVHDUFKDUHVWLOOQHHGHGSULPDULO\LQUHDFWRUQHXWURQLFV

- WKHVWXG\RIFRUHFKDUDFWHULVWLFVRI+75VEDVHGRQ7K3XIXHOV

- WKHSRWHQWLDOFKDQJHLQDWR[LFLW\VRXUFHGXHWRUHSODFHPHQWRIXUDQLXPE\WKRULXPLQ /:5VDQG

- WKHLPSDFWRI7KIXHORQ3XEXUQHUIDVWUHDFWRUSK\VLFV

7KH7KF\FOHSRWHQWLDOIRUIXHOZDVWHWR[LFLW\UHGXFWLRQDVZHOODVIRUORQJOLYHGILVVLRQ SURGXFWV LQFLQHUDWLRQ KDV DOVR EHHQ VWXGLHG DV SDUW RI DQ RYHUDOO QHXWURQLFV DQDO\VLV RI GLIIHUHQWW\SHVRIQXFOHDUSRZHUV\VWHPVLQFOXGLQJWUDGLWLRQDOUHDFWRUVDQGDGYDQFHGQXFOHDU V\VWHPVWKHUPDO DQGIDVW UHDFWRUV DFFHOHUDWRUGULYHQV\VWHPV HWF 7KH PDLQ JRDO ZDV WR FODULI\WKHLQFHQWLYHV IRU WKH7KRULXP IXHO F\FOH LQOLJKW RIFXUUHQW FRQFHUQV DERXW QXFOHDU SRZHU SOXWRQLXP EXUQLQJ QRQSUROLIHUDWLRQ LVVXHV HFRQRPLF HQKDQFHPHQWV IXHO ZDVWH WR[LFLW\UHGXFWLRQHWF

*HUPDQ\

$YDLODEOHUHDFWRUH[SHULHQFH

/RQJ WHUP RSHUDWLRQDO H[SHULHQFH ZLWK WKH IXHO SHUIRUPDQFH RI 7KFRQWDLQLQJ IXHO HOHPHQWVKDVEHHQJDLQHGLQWKH$95DQG7+75)XUWKHUH[SHULHQFHKDVEHHQJDLQHGLQWKH FULWLFDO IDFLOLWLHV .$7+(5DWWKH .)$-OLFK3URWHXVDW (,5 6ZLW]HUODQGDQG&(6$5 DW

&($)UDQFHQXFOHDUGDWDUHDFWLYLW\FRHIILFLHQWVHWF $95>@

7KH $95 WKHUPDO SRZHU 0-V HOHFWULFDO SRZHU 0: KDV RSHUDWHG IRU DSSUR[LPDWHO\ K PRVWO\ ZLWK 7KEDVHG IXHO 2I WKLV K ZDV DW +HRXWOHW WHPSHUDWXUHVRI•&$PRQJRWKHUIXQFWLRQVLWVHUYHGDVDWHVWUHDFWRUIRUIXHOEDOOVZLWK GLIIHUHQW W\SHV RI FRDWHGIXHO SDUWLFOHV >8 7K & 8 7 K 2 82 7K2 7K2 7K2$O 6LGRSHG7KHIXHOSDUWLFOHVKDGEHHQFRDWHGHLWKHUZLWKWZR%,62RUWKUHH75,62OD\HUV

$OO WRJHWKHU DERXW IXHO EDOOV ZLWK GLIIHUHQW IXHOEUHHGHU ORDGLQJV DQG FRQWDLQLQJ DSSUR[LPDWHO\NJ7KKDYHEHHQXVHGRUWHVWHGLQWKH$957KH8HQULFKPHQWYDULHG EHWZHHQDQGSHUFHQW7KH7KFRQWHQWLQLQGLYLGXDOIXHOEDOOVYDULHGEHWZHHQDQGJ SHUEDOOZKLOHWKH8FRQWHQWYDULHGEHWZHHQDQGJSHUEDOO

7+75>WR@

7KH7+750-VUHVS0:RSHUDWHGIRUDSSUR[LPDWHO\ \HDUVZLWKDQ+H RXWOHWWHPSHUDWXUHRI&$IWHU\HDUVLWZDVVKXWGRZQIRUORFDOUHDVRQV7KHFRUHRIWKH 7+75 FRQVLVWHG RI IXHO EDOOV ZLWK SHU FHQW HQULFKHG8 DV GULYHU DQG 7K DV EUHHGLQJ PDWHULDO(DFKEDOOFRQWDLQHGJ8DQGJ7K'XHWRWKHSUHPDWXUHVKXWGRZQRIWKH 7+75 DOWHUQDWLYH IXHO F\FOHV ZLWK FDUELGHSDUWLFOHV DQG VHSDUDWH GULYHU DQG EUHHGHU EDOOV FRXOGQRORQJHUEHLQVHUWHGDQGWHVWHG+RZHYHUGHYHORSPHQWZRUNIRUWKHIDEULFDWLRQDQG SHUIRUPDQFHXQGHULUUDGLDWLRQKDGEHHQSHUIRUPHG

(29)

2WKHUUHDFWRUV

,Q DGGLWLRQ WR IXHO SHUIRUPDQFH GDWD IURP WKH $95 DQG 7+75 WHVW UHDFWRU GDWD KDV EHHQ REWDLQHG IURP WKH ³'UDJRQ´ UHDFWRU LQ WKH 8. $W 'UDJRQ 7KEDVHG IXHO ZDV VXFFHVVIXOO\ WHVWHG DQG YDOXDEOH H[SHULHQFH ZDV JDLQHG UHJDUGLQJ QXFOHDU GDWD DQG IXHO SHUIRUPDQFHLQEORFNW\SHIXHOHOHPHQWV

6WXGLHVDQGH[SHULPHQWVSHUIRUPHG

5HJDUGLQJ WKH DSSOLFDWLRQ RI 7KEDVHG IXHO LQ FULWLFDO H[SHULPHQWV WHVW UHDFWRUV DQG SRZHUUHDFWRUVQXPHURXVVWXGLHVKDYHEHHQSHUIRUPHGIRU

- XVHLQH[LVWLQJ3:5V*HUPDQ\DQG%UD]LO>WR@

- 0+75V

- DFFHOHUDWRUVV\QWKHWLFIXHOSURGXFWLRQIURP7KDQG - IXVLRQK\EULGVEUHHGHUVV\QWKHWLFIXHOSURGXFWLRQIURP7K

6RPHRIWKHVHVWXGLHVFRQFHUQHGRQO\WKHXVHRI7KF\FOHVRWKHUVORRNHGDWFRPELQHG 7K3XRU7K3X8F\FOHVUHJDUGLQJWKHRSWLPXPEXUQLQJRI3XRURSWLPXPILVVLOHIXHOXVH ,Q WKLV FRQWH[W IDEULFDWLRQ DQG LUUDGLDWLRQ H[SHULPHQWV ZLWK VL[ WHVW IXHO URGV XQGHU VLPXODWHG3:5FRQGLWLRQVZDVSHUIRUPHGLQWKHUHVHDUFKUHDFWRU)5-LQ-OLFK*HUPDQ\

7KLV ZDV WR LQYHVWLJDWH WKH LUUDGLDWLRQ EHKDYLRU RI WKH QHZ 7K8IXHO 7K 8 DV DQ DGYDQFHGQXFOHDUIXHOPDQXIDFWXUHGE\QRYHOPHWKRGV7KLVIXHOZDVTXDOLILHGDQGEDVLFIXHO SURSHUWLHVZHUHPHDVXUHG'DWDZHUHREWDLQHGRQWKHIXHOSHUIRUPDQFHXQGHULUUDGLDWLRQDORQJ ZLWK LQIRUPDWLRQ IURP SRVWLUUDGLDWLRQ WHVWV ,Q DGGLWLRQ LUUDGLDWLRQ RI VHJPHQWHG IXHO URGV FRQWDLQLQJ7K82DQG7K3X2IXHOSHOOHWVZDVDOVRSHUIRUPHG

7KHPDLQFRQFOXVLRQRIDOOVWXGLHVDQGH[SHULPHQWVZDVWKDW7KIXHO7K8RU7K3XFDQ EH XVHG LQ VWDQGDUG 3:5V ZLWKRXW FKDQJHV LQ SODQW RU FRUH GHVLJQ DQG ZLWKRXW DGYHUVHO\

DIIHFWLQJWKHRYHUDOOVDIHW\IHDWXUHVRIWKHVHUHDFWRUV7KHDGYDQWDJHZDVDKLJKHU3XEXUQXS LQRQHF\FOHDQGLPSURYHGXVHRIILVVLOHPDWHULDOV7KHNQRZKRZDQGWHFKQRORJ\ZLWKVRPH UHVWULFWLRQVUHJDUGLQJWKHUHSURFHVVLQJRIVXFKIXHOLVDYDLODEOH

7KH ODWHVW VWXGLHV RQ WKH DSSOLFDWLRQ RI 7K LQ KLJK WHPSHUDWXUH UHDFWRUV +75V FRQFHQWUDWHGRQRSWLPXPILVVLOHIXHOFRQVXPSWLRQDQGWKHLPSDFWRQVDIHW\RIVXFKUHDFWRUV 7KHVWXGLHVVKRZHGWKDWIRU³PRGH´DVZHOODVIRU³FORVHGF\FOHV´WKHXVHRI7KUHVXOWHGLQ WKHORZHVWILVVLOHIXHOFRQVXPSWLRQ7KHVDIHW\IHDWXUHVRIWKH+75VZHUHVOLJKWO\DGYHUVHO\

DIIHFWHGLH

- VOLJKWGHFUHDVHRIUHDFWLYLW\FRHIILFLHQWVZLWKQRQRWHZRUWK\FRQVHTXHQFHV

- KLJKHUGHFD\KHDWSURGXFWLRQLQ+75VZLWKRXWDFWLYHGHFD\KHDWFRROLQJUHTXLUHVHLWKHU DGHFUHDVHLQWKHSRZHUGHQVLW\DQGDUHGXFHGXQLWSRZHURUDFKDQJHRIWKHFRUHGHVLJQ HJDQDQQXODUVKDSHGFRUHZLWKDFHQWHUJUDSKLWHFROXPQ

,QGLD

7RVWDUWWKHQXFOHDUSRZHUSURJUDPLQ,QGLDWKUHHVWDJHVZHUHLQLWLDWHG D +HDY\ZDWHUUHDFWRUV

E )DVWEUHHGHUVDQG F 7KRULXPEDVHGUHDFWRUV

(30)

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

D 7KH ,QGLDQ 3+:5 SUHVVXUL]HG KHDY\ ZDWHU UHDFWRU LV GHVLJQHG VR WKDW GXULQJ WKH PDMRU SDUW RI LWV OLIH WKHUH LV VRPH SRZHU IODWWHQLQJ LQ WKH FHQWUDO SDUW RI WKH FRUH WKURXJKGLIIHUHQWLDOEXUQXSGLVWULEXWLRQ,QDQHZO\VWDUWHGUHDFWRUZKHUHWKHHQWLUHFRUH LVDW]HUREXUQXSWKHUHDFWRUPXVWEHGHUDWHGXQOHVVRWKHUPHDVXUHVDUHWDNHQWRREWDLQ D VLPLODU HIIHFW $GYDQWDJH ZDV WDNHQ RI WKLV IDFW WR XVH WKRULXP EXQGOHV IRU SRZHU IODWWHQLQJLQWKHLQLWLDOFRUHRIQHZUHDFWRUV>@$ERXWNJRIWKRULXPIXHOZDV WKXVXVHGIRUSRZHUIODWWHQLQJLQWKHLQLWLDOFRUHRI.DSVXQLWFRPPLVVLRQHGLQ 7KHFRUHKDVKDGIXOOSRZHUGD\VRIRSHUDWLRQDQGDOOWKRULXPFRQWDLQLQJEXQGOHV EHKDYHGZHOO

E 7KHVDPHVFKHPHRISRZHUIODWWHQLQJZDVHPSOR\HGLQWKHVHFRQGXQLWDQGNJRI WKRULXPDUHFRQWDLQHGLQ.DSVXQLWZKLFKDWWDLQHGFULWLFDOLW\LQ'HFHPEHU F )RUPDQ\ \HDUV ,QGLDKDVIROORZHGDSROLF\RIWKRULXPLUUDGLDWLRQZKHUHYHUSRVVLEOH

7KHILUVWVFKHPHWRGRWKLVZDVODXQFKHGPDQ\\HDUVDJRE\IDEULFDWLQJWKRULXPURGV DQGSODFLQJWKHPLQWKHUHIOHFWRURIWKHUHVHDUFKUHDFWRU&,5866LQFHWKHRQO\QHXWURQ IOX[WRZKLFKWKH\ZHUHH[SRVHGZDVOHDNDJHIURPWKHUHDFWRU8EXLOGXSZDVVORZ 2QWKHRWKHUKDQGWKH\GLGQRWDFWDVDORDGRQWKHUHDFWRUVR8ZDVSURGXFHGDWQR ORVV7KHVHURGVZHUHVXEVHTXHQWO\UHSURFHVVHGWRUHFRYHUWKH8

G $8IXHOHGH[SHULPHQWDOUHDFWRUFDOOHG3XUQLPDZDVFRPPLVVLRQHGDW7URPED\LQ 7KLV LV D KRPRJHQHRXV ]HUR SRZHU VROXWLRQ UHDFWRU H[SHULPHQW XVLQJ8 DV IXHOOLJKWZDWHUDVDPRGHUDWRUDQGEHU\OLXPR[LGHDVWKHUHIOHFWRU7KHREMHFWLYHRI WKLVH[SHULPHQWZDVWRYDOLGDWH8FURVVVHFWLRQGDWDWRREWDLQH[SHULHQFHLQKDQGOLQJ

8IXHODQGWRDFWDVDUHDFWRUSK\VLFVSUHOXGHWRWKHQHXWURQVRXUFHUHDFWRU.$0,1, GHVFULEHGEHORZ

H 7KH.DPLQLUHVHDUFKUHDFWRULVDOPRVWFRPSOHWHDQGZLOOVKRUWO\EHFRPPLVVLRQHG7KH UHDFWRU LVIXHOHG E\8LQWKH IRUP RI8$ODOOR\ IDEULFDWHG LQWR IODW SODWHV ZLWK XUDQLXPFRQWHQWRIZWSHUFHQW7KHWRWDO8LQYHQWRU\RIWKHUHDFWRULVJWKH FRRODQWPRGHUDWRULVGHPLQHUDOL]HGOLJKWZDWHU7KHUHLVDUHIOHFWRURIEHU\OOLXPR[LGH FPWKLFNEH\RQGZKLFKWKHUHLVDJDLQDZDWHUUHIOHFWRU>@7KLVUHDFWRUZLOOEH XVHGSULPDULO\IRUQHXWURQUDGLRJUDSK\RQDFWLYHFRPSRQHQWV2QHRIWKHFKLHIXVHVZLOO EHWRH[DPLQHWKHLUUDGLDWHGIXHOIURPWKHIDVWEUHHGHUWHVWUHDFWRU

I /DERUDWRU\VWXGLHVRQWKHUHSURFHVVLQJRIWKRULXPIXHOVZHUHVWDUWHGHDUO\LQ,QGLD7KH PHWKRGFKRVHQZDVWKHVROYHQWH[WUDFWLRQSURFHVV>@/DWHULQWKHVL[WLHVDSLORW SODQWZDVVHWXSLQ7URPED\WRUHSURFHVVWKHLUUDGLDWHGIXHOWHVWURGVGLVFKDUJHGIURP WKH&,586UHDFWRU7KLVLUUDGLDWLRQLVUHIHUUHGWRXQGHUFDERYH,QWKHVHYHQWLHVWKH UHSURFHVVLQJSURJUDPDWWKH,QGLUD*DQGKL&HQWUHIRU$WRPLF5HVHDUFK,*&$5VHWXS DIDFLOLW\IRUUHSURFHVVLQJRIWKRULXPIXHORQDODUJHUVFDOH

Références

Documents relatifs

While waste management technologies for FR fuel based on aqueous reprocessing will be similar to those used for thermal reactor fuels, the treatment of pyro-processed waste and

The total cross-section calculated with the resonance parameters is not consistent with the experimental data of Olsen in the energy range near 0.0253 eV, due to the Bragg

Due to the gradual increase in the temperature of the bulk graphite, additional positive reactivity is inserted into the core leading to a continuous power rise up to a factor of 11

Department of Energy outlined the premise of the Global Nuclear Energy Partnership (GNEP): “the United States will build the Global Nuclear Energy Partnership to work with

The decline in the share of nuclear in total world electricity generation in 2030 even in the high estimates, when the nuclear capacity share remains at the level of 2005, is due

In the national and regional context for spent fuel management, some scenarios have been identified, for example, countries that have research reactors at different sites and that

The benefit of removing the fission products from the spent thoria fuel can be seen from the extensive studies that were performed on thorium recycling options in the 1970s and

[r]