Major industry milestone for AtkinsRéalis with contract win to build two new multi-billion dollar CANDU nuclear reactors

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AtkinsRéalis

Nov 15, 2024, 07:45 ET

  • The first new CANDU reactors to be built since 2007
  • Signals a new era in the construction of large reactors in support of the nuclear super cycle
  • Represents the first step in AtkinsRéalis' strategy to sell more new CANDU reactors globally
  • Financing of the new reactors to be supported by $3 billion from the Government of Canada and additional capital from other governments
  • Enables the expansion of the production of lifesaving medical isotopes

MONTREAL, Nov. 15, 2024 /CNW/ - Candu Energy Inc., an AtkinsRéalis company [AtkinsRéalis Group Inc.] (TSX: ATRL), in a joint venture with Fluor Corporation, Ansaldo Nucleare and Sargent & Lundy, has been awarded a contract from EnergoNuclear S.A., to build two new CANDU® reactors at the Cernavoda Nuclear Generating Station in Romania; the first in the world since 2007. These units will allow Romania to almost double the production of clean, reliable and affordable electricity.

"This is a game changing contract for AtkinsRéalis and Romania. As the sole commercial licensee of world-renowned CANDU technology, we are uniquely positioned to contribute to the vast expansion of the world's clean power," commented Ian L. Edwards, President and Chief Executive Officer, AtkinsRéalis. "CANDU technology is at the forefront of relevant, up to date and differentiated nuclear technologies in the world. We are honoured to help power Romania well into the end of the 21st century with these brand new CANDU reactors. I would like to thank the Government of Canada who helped make this contract possible through export financing support of $3 billion. This also represents our first step in our expansion around the world as we aim to sell many more reactors."

"Canada is proud to stand at the forefront of the global clean energy transition, with CANDU nuclear technology as a pillar of innovation and reliability," said Mary Ng, Minister of Export, Trade & Economic Development for Canada. "This collaboration in Romania highlights Canada's leadership in nuclear energy, providing clean, resilient solutions that enhance energy security, reduce emissions, and support economic growth. Through this partnership, we're not only creating good, high-paying jobs and advancing sustainable growth, but we're also reinforcing Canada's commitment to a low-carbon future and strengthening resilient supply chains for a better world."

CANDU New Builds at Cernavoda

As the original equipment manufacturer of the Canadian-owned CANDU technology, AtkinsRéalis will provide design, engineering, and procurement services, as well as support to EnergoNuclear to meet European Union directives around the project, and interfacing with Romania's nuclear power regulator, National Commission for Nuclear Activities Control (CNCAN). These two new units for Romania are the first CANDU new builds in the world since Romania's Unit 2 nuclear reactor came online in 2007; they signal a new era in the construction of large reactors in support of the nuclear super cycle in response to the increasing global demand for energy.

EnergoNuclear is the Romanian entity responsible for construction, commissioning and operation of Units 3 & 4— using CANDU technology—at Cernavoda. The initial first phase of the mandate is worth $224 million. After completion of the initial phase, EnergoNuclear has the option to issue a full notice to proceed with the services necessary to complete Units 3 and 4, subject to the agreement of commercial terms.

"28 years of excellent operation of Cernavoda NPP Units 1 and 2, outstanding safety record, 230 million MWh into the grid and 215 million tons of CO2 avoided are the merits of CANDU technology and human expertise. We are keen on extending the historic cooperation with AtkinsRéalis, for the deployment of Units 3 and 4 and provide Romania with long-term safe, reliable and clean energy. Nuclear energy is a major part of the global effort for deep decarbonization and by extending CANDU nuclear capacities in Romania, we aim to prove that energy security, energy availability and energy resilience together with 66% of Romania's clean energy can efficiently be provided by a single energy source, nuclear, based on years of experience, strategic partnerships and robust technology," stated Cosmin Ghita, Nuclearelectrica Chief Executive Officer.

With Candu Energy and most of its staff based in Mississauga, Ontario's Minister of Energy and Electrification Stephen Lecce commented: "Ontario is proud to lead in nuclear energy, providing clean, reliable, and affordable power while positioning our province as a global leader in this critical sector. By exporting our nuclear expertise worldwide, we're showcasing Ontario's innovation and commitment to an affordable energy future. While we refurbish and expand nuclear fleets around the world, we are bringing jobs and investment back home for Ontario families and workers."

CANDU Technology in Romania: A Canadian Success Story

The Cernavoda site houses Romania's only nuclear power plant. Providing about 20% of the country's power1, currently consisting of two CANDU 6 reactors (Units 1 and 2) on a site layout that was originally constructed for five. Each reactor produces around 720 MW of clean power, 24/7 for the grid. The Unit 2 CANDU reactor at Cernavoda holds the world record for highest capacity factor (composed of reliability and up-time) of any nuclear reactor globally.2 Romania is also preparing for the life extension of Unit 1; a project in which AtkinsRéalis holds a central role.

Romania has avoided the release of over 215 million tons of CO2 since the two existing CANDU units came online in 1996 and 2007, respectively.3 The long-term operation of CANDU technology is central to helping Romania reach its goal of energy stability and decarbonization; including phasing out coal-fired power.4

This project will also unlock Romania's potential to become a regional hub for energy security and clean electricity in Eastern Europe with the support of Canadian technology. The unique ability of CANDU reactors to utilize unenriched uranium offers an additional layer of energy security, via bypassing foreign fuel enrichment.

"Canadian CANDU technology has served Romania well and is the right choice for the next 60 years," said Joe St. Julian, President, Nuclear, AtkinsRéalis. "The last seven CANDU reactors built around the world, and the ongoing life extension of 10 CANDU reactors in Ontario, have been conducted on time and on budget. We will employ our unmatched nuclear power know-how as the steward of this technology, to ensure a similarly successful outcome for the build of these two new units in Romania."

CANDU technology also co-produces medical grade life-saving isotopes to sterilize medical equipment worldwide, and for use in both detecting and fighting cancer. CANDU reactors in Canada produce 50% of the world's supply of the Cobalt-60 isotope.5

About AtkinsRéalis

Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-class engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.

About AtkinsRéalis' Nuclear Business

AtkinsRéalis has over 70 years of global nuclear expertise, delivering nuclear technology products and full-service solutions to nuclear utilities around the world. AtkinsRéalis is the steward of CANDU® nuclear technology, operating on four continents, and provides advisory and engineering services to other nuclear developers. With an innovative technology portfolio, including access to over 500 patented solutions, AtkinsRéalis solves technically complex challenges across the whole nuclear lifecycle from design and new build through asset management and from life extension and late life management through decommissioning and waste management. AtkinsRéalis operates and manages government nuclear research sites, transforming ageing infrastructure and safely managing legacy nuclear waste. AtkinsRéalis' CANDU technology also allows for the co-production of medical radioisotopes for cancer detection and treatment. The company also supports cancer treatment through its partnership with TerraPower to extract isotopes from legacy nuclear material. Learn more on our Nuclear market page.

Forward-Looking Statements

References in this press release to the "Company", "AtkinsRéalis", "we", us" and "our" mean, as the context may require, AtkinsRéalis Group Inc. or all or some of its subsidiaries or joint arrangements or associates. Statements made in this press release that describe the Company's expectations or strategies constitute "forward-looking statements", which can be identified by the use of the conditional or forward-looking terminology such as "estimates", "expects", "forecasts", "intends", "may", "objective", "plans", "projects", "should", "will", "likely", or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. The Company cautions that, by their nature, forward-looking statements involve risks and uncertainties, and that its actual actions or results could differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of the Company's current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company's business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements made in this press release are based on a number of assumptions believed by the Company to be reasonable as at the date hereof. The assumptions are set out throughout the Company's 2023 annual management disclosure & analysis ("MD&A") (particularly in the sections entitled "Critical Accounting Judgments and Key Sources of Estimation Uncertainty" and "How We Analyze and Report our Results") filed with the securities regulatory authorities in Canada, available on SEDAR+ at www.sedarplus.com and on the Company's website at www.atkinsrealis.com under the "Investors" section. If these assumptions are inaccurate, the Company's actual results could differ materially from those expressed or implied in such forward-looking statements. In addition, important risk factors could cause the Company's assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in or implied by these forward-looking statements. Those risks are identified in the Company's 2023 annual MD&A (particularly in the section entitled "Risk and Un certainties"), as may be updated from time to time in the Company's interim quarterly MD&A, are not exhaustive. The forward-looking statements herein reflect the Company's expectations as at the date of this press release and are subject to change after this date. The Company does not undertake to update publicly or to revise any such forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable legislation or regulation. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement.

BACKGROUND

CANDU Reactors: A Jobs Powerhouse for Canada

With the CANDU supply chain being 85% Canadian, new builds of CANDU reactors at home and overseas create significant opportunities across the Canadian nuclear supply chain of 89,000 roles.6

Having already grown significantly in the last two years to over 2,000 people, AtkinsRéalis' Canada Nuclear business will be further expanding for this project, hiring new roles at its Ontario offices. These include highly skilled and well-paying engineering, skilled trades, and manufacturing jobs, which sustain Canada's global status as a Tier-1 nuclear nation.

Due to the unmatched domestic jobs creation potential of CANDU technology among large nuclear reactor designs, AtkinsRéalis launched the Canadians for CANDU campaign in 2024. It calls on the Canadian federal and provincial governments to support the deployment of CANDU reactors at home and overseas, as the only made-in-Canada nuclear technology in existence. 19 organizations have signalled their support to the campaign, representing over 60,000 unionized workers.7

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6 Canadian Nuclear Association, https://cna.ca/2024/09/24/canadian-nuclear-industry-a-powerhouse-of-job-creation-and-economic-growth/

7 Canadians for CANDU data

SOURCE AtkinsRéalis

For more information: Media: Harold Fortin, Senior Director, Global External Communications, [email protected]; Investors : Denis Jasmin, Vice President, Investor Relations, 514-393-8000, ext. 57553, [email protected]

Organization Profile

AtkinsRéalis