Canadian Challenges in Supporting the Nuclear Renaissance

1
Canadian Challenges in Supporting the Nuclear
Renaissance
EnergySolutions Conference March 2009
2
Background on Nuclear Energy in Canada

• Canada has operated CANDU reactors safely for 46
  yrs
• Nuclear energy is a 6.6 billion/year industry
  generating
• 1.5 billion in federal and provincial revenues
  through taxes
• gt 71,000 jobs
• 21,000 direct, 10,000 indirect plus 40,000
  cluster jobs
• 1.2 billion in exports
• Total annual value of electricity from nuclear
  5 billion
• In 2007, 18 CANDU Reactors generated 14.6 of the
  countrys electricity
• In Ontario 51, New Brunswick 30 and Québec 3

3
2008 Operating Reactors

• Canada has 22 reactors
• 2 in safe storage
• 3 under refurbishment now
• Gentilly planned for 2010
• 20 of these reactors are located in Ontario and
  are owned by Ontario Power Generation (OPG)
• In May 2001, OPG leased 8 of its reactors to
  Bruce Power
• Bruce Power partnership of TransCanada, Cameco,
  OMERS, PWU and Society of Energy Professionals

17 Operating Reactors
4
Ontarios Challenge
Use of Coal Ends
Existing/Committed/ Planned Nuclear
By 2015, by not replacing existing nuclear
capacity through refurbishment or new nuclear
construction, Ontario would be left with only
5,900 MW of nuclear capacity
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Continued Provincial Interest in Expansion

• Ontario
• Darlington
• 3 submittals received the last week of February
  for Generation III reactor designs
• AECLs ACR-1000
• AREVA EPR
• Westinghouse AP1000TM
• Decision expected June
• The province also deciding whether to
• Refurbish Bruce B or build a new unit, Bruce C
• Refurbish Pickering or manage until 2013 and shut
  down
• Nanticoke Bruce Power evaluating site for new
  reactor location

6
Continued Provincial Interest in Expansion

• Alberta
• Demand in Alberta requires new sources of energy
  by 2016
• Harvesting the oil sands involves huge amounts of
  electricity
• Nuclear energy is being considered by Bruce Power
  Alberta
• Saskatchewan
• Premier very interested in establishing nuclear
  industry to compliment uranium mining
• Bruce Power initiated feasibility study to
  consider 2-unit 8-10B nuclear power facility
• New Brunswick
• Consortium of private sector companies in New
  Brunswick is studying the feasibility of a second
  nuclear reactor at the Point Lepreau to produce
  power for the NE United States
• Proposed an advanced CANDU model, or ACR-1000
  nuclear reactor
• Estimated to cost 4 billion and could produce
  1,100 megawatts of power

7
Financing and Regulatory Approvals for New Build

• Ability to finance the New Build initiatives and
  ancillary services
• Province requiring guarantee against cost
  overruns for New Build
• Govt backstop of the CANDU vs. commercial
  parental guarantees
• Financing for first-in-kind ancillary projects no
  longer available
• Public perception of costs to finance new nuclear
  power plants
• Ability of CNSC to review the reactor designs in
  a timely manner

8
Escalating Costs of Refurbishment

• Bruce A Units 1 2
• Cost of returning two units to service is
  significantly higher than the original 2005 cost
  projection of 2.75 billion
• Calandria tube removal complete
• Point Lepreau
• Began an 18-month refurbishment March 2008 to
  extend life to 2032
• 3 to 4 month schedule delay expected
• First CANDU6 refurbishment
• The project was estimated at 1.4B is now
  costing AECL 1M/day in penalties to purchase
  replacement power (total estimated penalties
  100M)

9
Structure of Canadian Nuclear Industry
Parliament
Department of NaturalResources Canada (NRCan)
Canadian Nuclear SafetyCommission
(CNSC) Licencing/Oversight
Atomic EnergyCanada Ltd (AECL)
Nuclear WasteManagement Organization for HLW
(NWMO)
Low Level Radioactive Waste Management Office
(LLRWMO)
Nuclear Utilities-Ontario Power Generation
-Hydro-Quebec-New Brunswick Power-Bruce Power
(only private)
National Defence-Director General Nuclear
Safety-Regulate MoD Nuclear Facilities
RD / Radioisotopes-Hospitals-Universities-Lab
oratories-Industry
Uranium Industry-Production-Refining-Conversio
n-Fuel fabrication
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Future of AECL

• Budget in 2008/2009 - 1.2 billion to manage
• CANDU reactor development
• Chalk River and Whiteshell Laboratories
• Legacy waste management
• Recent negative media coverage on
• Cancellation of the 600M Maple
• medical isotope reactors
• Challenge of maintaining NRU and impact on global
  medical isotope supply
• Challenges with Bruce Power and Point Lepreau
  refurbishments
• Competition for New Build at Darlington
• Team CANDU AECL, B W Canada, GE-Hitachi
  Nuclear Energy Canada, Hitachi Canada and
  SNC-Lavalin

National Bank of Canada report allegedly
recommending privatizing reactor component
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Management of the Back-end of the Fuel Cycle - SNF

• NWMO established in 2002 to develop approach for
  the long-term care of Canadas used nuclear fuel
• Adaptive Phased Management approach approved
  which includes storage at reactor sites and
  long-term containment and isolation in a DGR
• 2013 will start assessing suitability of
  candidate sites

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Management of the Back-End of the Fuel Cycle -
Low and Intermediate

• Low and intermediate level waste is the
  responsibility of the generator
• AECL
• Chalk River and Whiteshell Laboratories manage
  their own waste and plan to have Intrusion
  Resistant Underground Storage (IRUS) and DGR
• Take small sources on a commercial basis
• OPG/Bruce Power
• Western Waste Management Facility (WWMF)
• Stores all the low and intermediate level nuclear
  
• waste from the operation of OPG's 20 nuclear
• reactors, including those leased to Bruce
  Power
• Provides dry fuel storage for the Bruce reactors
• In 2006, Ontario Power Generation began the EA
  for a DGR to store low and intermediate level
  waste at the Bruce nuclear site
• Hydro Quebec and New Brunswick Power do not have
  access to a disposal site and both have to store
  their LLW

Low and intermediate waste and spent fuel
generated still in storage
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Other Challenges

• Competition for skilled labour
• Ability to re-establish vendors
• Ability to establish transmission lines for
  plants generating excess electricity
• Reception of host communities to New Build
• Claims of Green Technology

A number of independent studies have shown that
life-cycle emissions for nuclear power plants
including construction, operations, fuel
production, decommissioning and waste disposal
are comparable to other non-emitting generation
systems such as hydro and wind
Claims actively disputed by some environmental
groups
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Closing

• Canada appears to be embracing nuclear power
• Additional provinces considering nuclear power as
  critical component of energy mix
• Financial market will delay decisions on
  additional New Build likely until 2010
• AECL evaluating changing needs for CANDU reactors
  to remain competitive in the nuclear renaissance
• Lessons learned on refurbishments being utilized
  to control costs and schedule