X-energy, TransAlta Partner to Study Deployment of Advanced Small Modular Nuclear Reactors in Alberta through Emissions Reduction Alberta Award

X-Energy Reactor Company, LLC ("X-energy" or the "Company"), a leading developer of advanced small modular nuclear reactors and fuel technology for clean energy generation, and TransAlta Corporation ("TransAlta"), one of Canada's leading power producers, announced a partnership to study the deployment of X-energy's Xe-100 advanced small modular nuclear reactors in Alberta. Supported through funding from Emissions Reduction Alberta ("ERA" or "the agency"), the study will assess the feasibility of repurposing a fossil fuel electricity generation site for an Xe-100 plant.

X-energy and TransAlta will evaluate the economics, regulatory impacts, licensing requirements, timelines, and overall suitability of deploying an Xe-100 plant at a fossil fuel power plant site. The study will also focus on identifying and building Alberta-based supply chain partners and vendors and economic benefits for the province. X-energy and TransAlta will be supported by Canada-based nuclear and professional engineering firms, including Hatch Ltd., Kinectrics Inc., and PCL Nuclear Management Inc. The study results are expected to provide valuable insights and data to inform future TransAlta project and business decisions.

ERA awarded X-energy through its competitive proposal-based Reshaping Energy Systems funding opportunity, an initiative supported by the Government of Alberta designed to invest in promising technologies and solutions to reduce emissions throughout the province. In 2023, Alberta established a goal of reaching net-zero carbon emissions by 2050. X-energy aims to deploy the first advanced small modular reactor in Alberta by the early 2030s.

X-energy's Xe-100 reactor and TRISO-X fuel are designed to be intrinsically safe, greatly expanding applications and markets for the deployment of nuclear technology relative to other small modular and conventional nuclear reactors. The Xe-100 can also uniquely address a broader range of uses and applications, including applications that currently rely on fossil fuels to produce steam and high-temperature heat for manufacturing, natural resource extraction, petroleum refining and hydrogen production.

As previously announced, X-energy has already completed milestones in the Canadian Nuclear Safety Commission's ("CNSC") pre-licensing Vendor Design Review. CNSC found no fundamental barriers to licensing the Xe-100, an outcome that increases confidence in proceeding with formal licence applications in Canada.

The initial deployment of X-energy Xe-100 is supported by the U.S. Department of Energy's Advanced Reactor Demonstration Program at Dow's Seadrift, Texas, operations site along with a new commercial facility in Oak Ridge, Tennessee, to manufacture TRISO-X uranium-based fuel for next-generation reactors. The project in Seadrift will be the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America.

Attributable Quotes:

Nathan Neudorf, Alberta Minister of Affordability and Utilities

• "I am proud that Alberta continues to be a global leader in responsible energy development. By investing in innovative technology such as small modular nuclear reactors, we are ensuring that Alberta's power grid will be affordable, reliable, and sustainable for generations to come."

Rebecca Schulz, Alberta Minister of Environment and Protected Areas

• "We are investing in innovative energy projects that will make Alberta's power grid more reliable, lower emissions and grow the economy, while helping bring Alberta's energy systems into the 21st century."

Blain van Melle, Executive Vice President, Commercial and Customer Relations, TransAlta

• "TransAlta is excited to work with Emissions Reduction Alberta and our project partners to explore how X-energy's innovative small modular reactor technology can potentially augment TransAlta's existing sites and assets to deliver clean, reliable heat and power to our customers at competitive rates and without emissions from fossil fuels."

Benjamin Reinke, Vice President, Global Business Development, X-energy

• "This partnership with Emissions Reduction Alberta marks a significant step forward for clean energy technologies in the province. We are pleased to work with TransAlta, a leader in power production, innovation, and sustainability, to evaluate how X-energy can support the province's climate goals. Alberta's tradition of energy innovation combined with our advanced nuclear technology offers a powerful solution to reducing emissions while increasing reliable baseload generation capacity and supporting the region's key economic drivers."

About X-Energy Reactor Company, LLC

X-Energy Reactor Company, LLC, is a leading developer of advanced small modular nuclear reactors and fuel technology for clean energy generation that is redefining the nuclear energy industry through its development of safer and more efficient reactors and proprietary fuel to deliver reliable, zero-carbon and affordable energy to people around the world. X-energy's simplified, modular, and intrinsically safe SMR design expands applications and markets for deployment of nuclear technology and drives enhanced safety, lower cost and faster construction timelines when compared with conventional nuclear. For more information, visit X-energy.com or connect with us on Twitter or LinkedIn.

About TransAlta Corporation

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of hydro-electric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and its climate change strategy with CDP (formerly Climate Disclosure Project) and the Task Force on Climate-related Financial Disclosures recommendations. TransAlta has achieved a 68 per cent reduction in GHG emissions or 22 million tonnes since 2015 and has received scores of A- from CDP and AA from MSCI.

For more information about TransAlta, visit transalta.com.

About Emissions Reduction Alberta (ERA)

For 15 years, ERA has been investing revenues from the carbon price paid by large emitters to accelerate the development and adoption of innovative clean technology solutions. Since we were established in 2009, we have committed $899 million toward 261 projects worth $8 billion that are helping to reduce Greenhouse Gases ("GHGs"), create competitive industries and are leading to new business opportunities in Alberta. These projects are estimated to deliver cumulative GHG reductions of 42 million tonnes by 2030 and 115 million tonnes by 2050.