APPENDIX L Applications Prep Instructions Business Plan Template Amend 000001 (applicable to Demos Risk Reduction).pdf

Funding Opportunity Number: DE-FOA-0002271

Amendment 000001

Appendix L, Amendment 000001

Business Plan Template

This appendix provides a template that may be used in developing/submitting a Business Plan in response to the FOA Application Preparation Instructions. While applicants are encouraged to use this template for application uniformity purposes, the applicant may use another business plan format so long as the information required by the FOA is provided in the application.

Note that if the template calls for some information that is otherwise submitted elsewhere in the FOA, applicants may complete this information as part of the business plan, if desired, it is not necessary to do so; instead, it may be referenced back to where in the application the information is already provided.

Funding Opportunity Number: DE-FOA-0002271

Amendment 000001

Business Plan

Advanced Reactor Demonstration Program

Pathway to Commercial Operation i

Contents

Executive Summary

Summary

Company and Financing

Reactor Products and Services

Reactor Output Customers

Marketing and Sales of Both Reactor Outputs, as well as Additional Reactors/Plants

Financial Forecast

Required Funds

Company and Financing

Company/Team Overview

Required Funds

Exit Strategy

Reactor Products and Services

Reactor Products and Services

Competitors

Sourcing and Fulfillment

Intellectual Property

Future Products and Services

Customers

Market Overview

Client/Market Needs

Market Trends

Market Growth

Industry Analysis

Key Customers

Commercial Reactor Operations:

ii

Marketing and Sales - your market strategy for commercial success

Overview

Path to Commercial Operation:

Pricing:

Strategy and Implementation

Reactor Sales Forecast

Cash Flow Assumptions

Loans and Investments

Key Metrics for Reactor Commercialization Success

Sales Forecast ....................................................................................... Error! Bookmark not defined.

Executive Summary

Summary

Company and Financing

Reactor Products and Services

Reactor Output Customers

Marketing and Sales of Both Reactor Outputs, as well as Additional Reactors/Plants

Financial Forecast

Required Funds

Company and Financing

Company/Team Overview

Required Funds If third party funding will be required, identify investors for the project, as well as how investors will be found/retained. Other information already provided in application may be referenced and need not be repeated here. Include other information, if additional funding will be required outside of the FOA process in order to commercialize the technology.

Exit Strategy

Reactor Products and Services

Reactor Products and Services Describe reactor outputs; describe the versatility of the design.

Competitors (e.g., other reactors, other competing forms of energy, etc.)

Sourcing and Fulfillment

Intellectual Property

Future Products and Services Explain how the design will provide for future upgrades and possible expansion, including to minimize operation disruptions.

Customers

Market Overview

Client/Market Needs Include your client analysis, which demonstrates your understanding of customer requirements; include your analysis and evaluation of the market and the viability potential (including longer term viability) of your reactor and plant to be successful in this market, being able to attain a clear, sustainable, competitive position relative to competing energy forms.

Market Trends

Market Growth

Industry Analysis

Key Customers Identify the customer(s), and the customer involvement in the project, including customer commitment.

If the customer is not yet identified, describe your plan, including activities, milestones, milestone completion verification, and tentative dates to get customers.

NOTE: DOE does not intend to act as the customer for any of the projects.

Commercial Reactor Operations:

Describe how the reactor will be operated as part of the power generation facilities of an electric utility system or in any other manner for the purpose of demonstrating the suitability for commercial application of the advanced nuclear reactor.

Marketing and Sales - your market strategy for commercial success

Overview

Path to Commercial Operation:

Describe the anticipated path to commercial operation of the advanced demonstration reactor and how completion verification will be accomplished

Pricing:

Describe how the reactor, plant, and outputs will be cost competitive with competing forms of energy.

Include the following (as applicable):

• Specify the estimated total cost of the overall demonstration project, including rationale for the estimate.

• Specify the plant cost estimate, as well as the estimated construction costs of the advanced reactor and plant; include detail regarding how the design is affordable to build; provide rationale for estimates.

• Specify how the advanced reactor will be economically competitive in the market it will serve, including your rationale. Provide a cost of electricity generation to be cost competitive with competing forms for energy; include in your discussion an estimated overnight capital cost - $/kw of capacity by date, with the estimate detailed to a level consistent with level 2 of the code of accounts, along with assumptions and rationale.

• Provide the forecasted Levelized Cost of Electricity or Energy of the deployed fleet and supporting justification.

• Specify the targeted market(s) and the expected average price of electricity or energy in those markets. Explain the relative market position of your reactor and how it will compete with its cost competitors.

Strategy and Implementation:

• Milestones

• Strategic Alliances

Financial Plan - Summary Level Information Only

Reactor Sales Forecast

Cash Flow Assumptions

Loans and Investments

Key Metrics for Reactor Commercialization Success

Sales Forecast