ML23215A161

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Withholding Proprietary Information from Public Disclosure - Enclosures of the Construction Permit Application for the Kairos Power LLC Hermes 2 Non-Power Reactor Facility
ML23215A161
Person / Time
Site: 99902069
Issue date: 08/09/2023
From: Michael Orenak
NRC/NRR/DANU/UAL1
To: Hastings P
Kairos Power
References
Download: ML23215A161 (4)


Text

Mr. Peter Hastings Vice President, Regulatory Affairs and Quality Kairos Power LLC 707 W Tower Ave Alameda, CA 94501

SUBJECT:

WITHHOLDING PROPRIETARY INFORMATION FROM PUBLIC DISCLOSURE

- ENCLOSURES OF THE CONSTRUCTION PERMIT APPLICATION FOR THE KAIROS POWER LLC HERMES 2 NON-POWER REACTOR FACILITY

Dear Mr. Hastings:

By letter dated July 14, 2023 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML23195A122), Kairos Power LLC (Kairos) submitted an affidavit to the U.S. Nuclear Regulatory Commission (NRC) staff requesting that the agency withhold the following information from public disclosure pursuant to Title 10 of the Code of Federal Regulations (10 CFR) Section 2.390, Public inspections, exemptions, requests for withholding:

a. Kairos financial information, in Enclosure 4;
b. Technical information for the Kairos fluoride salt-cooled high-temperature reactor (KP-FHR) core design, in Enclosure 6; and
c. Technical information for the KP-FHR for postulated event analysis, in Enclosure 7; This information is part of the Kairos Hermes 2 construction permit application submittal (ML23195A121). Enclosures 8 (ML23195A130) and 9 (ML23195A131) of the construction permit application submittal contain non-proprietary versions of Enclosures 6 and 7, respectively that are available for public inspection.

The affidavit stated that the submitted information should be considered exempt from mandatory public disclosure for the following reasons:

a. The information sought to be withheld from public disclosure is owned and has been held in confidence by Kairos.
b. The information is of a type customarily held in confidence by Kairos and not customarily disclosed to the public. Kairos has a rational basis for determining the types of information customarily held in confidence by it and, in that connection, utilizes a system to determine when and whether to hold certain types of information in confidence. The application of that system and the substance of that system constitute Kairos policy and provide the rational basis required.

August 9, 2023

P. Hastings 2

c. The information is being transmitted to the Commission in confidence and, under the provisions of 10 CFR 2.390, it is to be received in confidence by the Commission.
d. This information is not readily available in public sources.
e. Public disclosure of this proprietary information is likely to cause substantial harm to the competitive position of Kairos, because it would enhance the ability of competitors to provide similar products and services by reducing their expenditure of resources using similar project methods, equipment, testing approach, contractors, or licensing approaches. This information is the result of considerable expense to Kairos and has great value in that it will assist Kairos in providing products and services to new, expanding markets not currently served by the company.
f. The information could reveal or could be used to infer price information, cost information, budget levels, or commercial strategies of Kairos.
g. Each component of proprietary information pertinent to a particular competitive advantage is potentially as valuable as the total competitive advantage. If competitors acquire components of proprietary information, any one component may be the key to the entire puzzle, thereby depriving Kairos of a competitive advantage.
h. Unrestricted disclosure would jeopardize the position of Kairos in the world market, and hereby give a market advantage to the competition in those countries.

The NRC staff has reviewed the affidavit and the material in accordance with the requirements of 10 CFR 2.390 and, on the basis of the statements in the affidavit, has determined that the submitted information sought to be withheld contains proprietary commercial information and should be withheld in its entirety from public disclosure pursuant to 10 CFR 2.390(b)(5) and Section 103(b) of the Atomic Energy Act of 1954, as amended.

Withholding from public inspection will not affect the right, if any, of persons properly and directly concerned to inspect the documents. If the need arises, the NRC staff may send copies of the information to our consultants working in this area. The NRC staff will ensure that the consultants have signed the appropriate agreements for handling proprietary information. If the basis for withholding this information from public inspection should change in the future such that the information could then be made available for public inspection, Kairos should promptly notify the NRC staff. Kairos also should understand that the NRC staff may have cause to review this determination in the future if, for example, the scope of a Freedom of Information Act request includes Kairos information. In all review situations, the NRC staff will follow applicable laws, regulations, and policies in conducting its review, including the NRCs policies on notifying the owner of information in advance of any public disclosure.

P. Hastings 3

If you have any questions, please contact me at (301) 415-3229, or via email at Michael.Orenak@nrc.gov.

Sincerely, Michael D. Orenak, Project Manager Advanced Reactor Licensing Branch 1 Division of Advanced Reactors and Non-Power Production and Utilization Facilities Office of Nuclear Reactor Regulation Project No.: 99902069 cc: via GovDelivery gardner@kairospower.com peebles@kairospower.com Signed by Orenak, Michael on 08/09/23

ML23215A161 NRR-106 OFFICE NRR/DANU/UAL1/PM NRR/DANU/UAL1/LA NRR/DANU/UAL1/BC NRR/DANU/UAL1/PM NAME MOrenak DGreene WJessup MOrenak DATE 8/3/2023 8/8/2023 8/8/2023 8/9/2023