Coast Guard Site
Point Lepreau Nuclear Generating Station Refurbishment
On July 29, 2005, the Government of New Brunswick announced that NB Power will proceed with the refurbishment of the Point Lepreau Generating Station with the Atomic Energy of Canada Limited as the general contractor. Together this team is committed to delivering this project on time and on budget and is confident in making this refurbishment the key to Powering the Future of New Brunswick.
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LEPREAU 3 IN PLAY
Quentin Casey Telegraph-Journal
Published Saturday June 30th, 2007
Appeared on page A1
The New Brunswick government will likely pursue a third nuclear reactor, if a soon-to-be launched feasibility study into a second nuclear unit at the Point Lepreau generating station proves fruitful, the energy minister revealed Friday.
In an exclusive interview with the Telegraph-Journal on the province's growing nuclear ambitions, Jack Keir also hinted at which company the government will trust to help develop its desire for a full-blown nuclear industry in the province.
Atomic Energy of Canada Ltd. appears to have emerged the favorite in the race with Areva NP, a state-owned French firm.
And in fact, AECL, Canada's nuclear crown corporation, could end up producing two new units for the province.
"There's opportunity for two reactors there (at Lepreau)," Keir said. "If the business case works for"¦ the second reactor, our decision then will be: how much of this do we want?
"If the market is there, we'll build."
The company is now seeking a first home for its upcoming 1,200-megawatt Advanced Candu Reactor (ACR). The first, and a second, could land in New Brunswick if the upcoming feasibility study deems there is enough future demand for power in the energy-hungry New England market.
Overall costs and ensuring the physical ability to pump all that new power to the southern market are also huge question marks, said Keir.
The study, which is expected to launch shortly, will last about six months.
While attending a recent gathering of eastern Canadian premiers and New England governors, Keir was asked by U.S. officials if the province is building a second reactor at Lepreau - to join the current 680-megawatt AECL Candu-6 model.
"I said, 'Are we? We'll build you two. If you've got the demand down there, and the business case works, we'll build two," Keir said.
"I'm very serious when I say that. If the opportunity is there, why wouldn't we want to do that?... It's a bit of a dream for me - the third reactor - but if it proves the case works, why wouldn't we think that big?"
Keir stressed the idea must make financial sense, claiming it is imperative the project help pay down the massive debt at NB Power, the province's public utility.
"Nothing goes forward unless it's good for the people of New Brunswick," he said.
The Shawn Graham government boasts often of its plan to supply power to the New England states through an energy hub centred in Saint John.
By Keir's rough estimate there will be a growing need for power in the northeast U.S. - likely measured in thousands of megawatts, he said.
That prediction appears spot on. According to officials at ISO New England, which oversees the local power system and market, the region will need 4,000MW in additional power over the next 10 years alone.
The government's desire to fill that void led to recent discussions between the province and both AECL and Areva, which has 58 reactors in France.
Graham recently travelled there to meet with company officials. But it appears AECL has impressed all involved with its plan.
"We've had wonderful discussions with AECL and their team," said Keir of the group known as Team Candu, which includes as partners SNC-Lavalin, Babcock & Wilcox Canada, GE Canada and Hitachi Canada.
"They really make the AECL proposal pretty enticing, frankly"¦
"I think the fact that they've got some players like that around the table certainly bodes well for them in terms of their proposal.
"We're not quite there yet (on a final decision). But I think it's fair to say that AECL has come to the table with a pretty interesting proposal."
And of Areva's seemingly fading chances?
"The other discussions we've had have been more broad-based.
"Solid discussions, but"¦ not specifically a proposal."
Keir's comments Friday hint the province may choose its technological partner even before starting the six-month feasibility study.
Officials with AECL have not yet been informed of a government decision, but feel good about their pitch.
"We're very optimistic that at the end of the process"¦ they'll come to the same conclusion that we have - that the ACR is the best option for New Brunswick," said spokesman Dale Coffin, noting the first unit could be in place and producing power by late 2016.
"(It will create) long-term opportunities for the province in developing a centre of excellence in the Candu nuclear field."
Not surprisingly, that's just what Keir is looking to achieve.
"As we've always said, it's more than just a second reactor. If we wanted just a second reactor we'd put out a (call for proposals) and let all the different technologies bid on that second reactor," he said.
"We're looking for much, much more than a second reactor"¦ We want to be able to build a nuclear industry around a second reactor."
By landing the first ACR, the province could become the epicentre for training, technological development and refurbishment efforts.
The Candu unit at Lepreau, built in the late 1970s, is currently in the early phases of a refurbishment effort expected to add 30 years to its life.
AECL officials foresee 18 similar projects around the world, with the potential for New Brunswick workers and technology to play a significant role.
"That's what I want people to have a vision of: not just a second reactor, and the 500 jobs that go with that, but"¦ a whole industry where we start to export our expertise around the world," said Keir.
But he's not the only one with such a notion.
Private interests in Alberta have inquired about two ACR units to fuel oil sands development, and public and private firms in Ontario are seeking up to four reactors.
However, New Brunswick does have history on its side: it was the first to land a Candu-6 model and the first utility to sell electricity from a nuclear station to the U.S.
For Keir, the ideal goal would be to produce energy for export, like Alberta, but without the blessing of a huge oil deposit.
Research and development, a glut of jobs and the unofficial title of 'ACR service centre' would all follow, he contends.
"I think that scenario is absolutely wonderful. That's what we're going to try to make happen," he said.
"We want to make an industry out of this and I think the opportunity is there to do that....How cool would it be?"