Candu Energy Meets with Suppliers to Further Develop Ontario New Nuclear Proposal

MISSISSAUGA, ON, Dec. 4, 2012 /CNW/ - On Friday, November 30, Candu Energy Inc. met with close to 100 of its key Ontario-based suppliers with the goal of further developing a cost-effective nuclear solution for Ontario.

Candu Energy is currently preparing detailed construction plans, schedules and cost estimates for two potential Enhanced CANDU 6 ® (EC6®) reactors at Ontario Power Generation's (OPG) Darlington site. They will be submitted in June 2013. A 2012 study by the Canadian Manufacturers and Exporters says construction of two new CANDU reactors would be a tremendous additional job driver, producing 60,000 person-years of work over a five-year period.

"We are committed to developing the best price and schedule for Ontario electricity consumers, while maximizing the benefit to Ontario's nuclear and balance of plant supply chain," said Kevin Wallace, Candu's President & General Manager. "The workshop we held on Friday will help us do just that." Over the course of the day, current and potential suppliers learned more about Candu Energy's procurement process, and the requirements in terms of providing well-priced competitive quality products and services as part of the company's proposal.

While Candu Energy is focusing much of its attention to this potential project, there is also significant interest in CANDU reactors outside the country - projects which would bring jobs to globally-competitive suppliers in Canada. The same CME study found that building a pair of EC6 reactors outside of Canada would support over 2,200 person-years of direct, high-wage work and over $2.5 billion in economic activity here in Canada.

OPG currently operates two power stations at Pickering and Darlington, consisting of 10 CANDU reactors. Those reactors account for almost 30 per cent of the electricity generated in Ontario, regularly powering 4.7 million households.

CANDU technology's 60 year history in this country has built a large, stable supplier base, which is eager to work on the next generation of CANDU technology for Ontario. Candu's suppliers employ approximately 30,000 highly skilled and specialized people who manufacture major equipment and components and provide engineering services and support for CANDU nuclear power plants in Canada and abroad. In the last decade, six CANDU reactors were built and delivered to international customers. All of these projects have been delivered on or ahead of schedule, and on budget.

Earlier this year, the Canadian Nuclear Safety Commission (CNSC) completed Phase 2 of a Pre-Project Design Review of Candu's EC6 reactor. The CNSC concluded that there are no fundamental barriers to licensing the EC6 design in Canada; this is the key step for licensing consideration of a nuclear power plant in Canada. The EC6 is the only reactor being considered by OPG to have completed this review to date.

The EC6 Technology Day was organized with the assistance of the OCI, the industry association representing 175 companies that supply products and services to CANDU plants in Canada and around the world.

About the Enhanced CANDU 6
The Enhanced CANDU 6 (EC6) is a 700MW Class Generation III reactor based on the highly successful CANDU 6 reactor with a number of safety enhancements to meet the latest Canadian and international standards. It uses natural uranium fuel, heavy-water moderator and heavy-water coolant in a pressure tube design. It can be refueled on power and has one of the highest lifetime capacity factors among the world's reactors. It is ideal for small and medium electric grids, and benefits from the CANDU 6 experience of proven design, construction and operation.

About Candu Energy Inc.
Candu Energy Inc. is a leading full-service nuclear technology company providing nuclear power reactors and nuclear products and services to customers worldwide. Candu's 1,400 highly skilled employees design and deliver state-of-the-art CANDU® reactors, carry out life extension projects, provide plant life management programs and tools, and offer operation and maintenance services for existing nuclear power stations.

Candu is a wholly-owned subsidiary of SNC-Lavalin Group Inc. (TSX: SNC). For more information, visit www.candu.com.

SOURCE: Candu Energy Inc.

For further information:

Contact:
Katherine Ward
Candu Energy Inc.
katherine.ward@candu.com
905-823-9040 ext. 37349