SNC-Lavalin Nuclear Inc. (TSX: SNC) has secured a $1.3-billion contract to help extend the life of four nuclear reactors at Bruce Power in Ontario.
The 10-year deal announced Friday will see SNC-Lavalin work with joint venture partners Aecon Group Inc. (TSX: ARE) and United States-based United Engineers & Constructors to refurbish Bruce Power’s Units 4, 5, 7 and 8, allowing them to continue operating until 2064.
SNC-Lavalin’s portion of the contract is valued at $173 million. The company’s nuclear division will provide project management services for the reactor refurbishments.
“The critical role of nuclear power in providing energy security, meeting the ever-increasing demand for electricity and a means to achieving global Net Zero commitments is no longer in dispute,” SNC-Lavalin CEO Ian L. Edwards said in a statement.
“Large reactors in particular will play a key role in providing the vast amount of electricity required in the future. As the steward of the CANDU reactor technology around the world, and a provider of the full lifecycle of nuclear services, we are well positioned to capitalize on the rising demand for nuclear energy.”
The work is expected to start in 2023 and be completed in 2032. It will include overhauling the core components of the CANDU pressurized heavy-water reactors.
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The contract win highlights SNC-Lavalin’s technical expertise with CANDU technology and its track record of delivering nuclear projects on time and on budget, said Joe St. Julian, president of the company’s nuclear business, in a statement.
SNC-Lavalin has played a leading role in all CANDU reactor life extension projects to date around the world. The company aims to continue improving cost and schedule efficiencies for the Bruce Power project, St. Julian said.
The Bruce nuclear station in Kincardine, Ont., is the world’s largest operating nuclear facility. It produces about 30 per cent of the province’s electricity and supplies medical isotopes for hospitals globally.
SNC-Lavalin is a global engineering services firm based in Montreal. It has expertise in various sectors including infrastructure, telecommunications, mining and metallurgy, oil and gas, and nuclear.