MONTREAL, June 14, 2018 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) subsidiary SNC-Lavalin Nuclear Inc., with joint venture (JV) partners Aecon Group Inc. and AECOM, have been awarded the fuel channel and feeder replacement (FCFR) contract from Bruce Power. The contract for Unit 6 is valued at CAD $475 million and is the centrepiece of Bruce Power's Major Component Replacement Project. SNC-Lavalin holds a 40 per cent share in the project. The joint venture will work together under the banner Shoreline Power Group. This project is in support of Bruce Power's Life Extension Program which will allow Bruce Power's CANDU units to continue to operate safely through to 2064.
The scope of work under the contract encompasses all necessary planning and executing activities for the reactor refurbishment. Planning will commence immediately in preparation for the outage scheduled in 2020 when the actual work to replace the components will be performed, anticipating completion in the third quarter of 2022. The JV is also responsible for the management of the complex, robotic tooling required for the work, along with full training of the workforce.
"The refurbishment will continue Bruce Power's delivery of safe, reliable, affordable electricity to Ontario for generations to come at a time when clean energy is more important than ever before," said Sandy Taylor, President, Nuclear. "SNC-Lavalin and our JV partners are committed to a successful refurbishment of Unit 6 to exemplify Canada's nuclear advantage and our proud CANDU technology legacy through our talented, highly knowledgeable employees and local suppliers known for delivering high quality service to the nuclear industry."
The JV partners also signed a Preferred Supplier Agreement with Bruce Power under which the JV could be awarded similar contracts for the subsequent 5 Units.
"SNC-Lavalin will use what we already know from our deep knowledge base and decades of CANDU experience to confidently fulfill the refurbishment needs," said Taylor. "Our intellectual capital from projects around the world is unmatched and sets us apart. This is the CANDU OEM advantage of SNC-Lavalin; our global expertise brought home to support Bruce Power."
Starting with Unit 6, the CANDU Reactors comprising Bruce Units 3 to 8 will be refurbished over the subsequent 16 years. SNC-Lavalin has executed CANDU reactor refurbishments worldwide, bringing decades of experience and a dedicated organization with deep technical expertise. SNC-Lavalin will allocate staff who will be exclusive to this project and utilize its established base in Port Elgin to deliver work on Unit 6 and any other subsequent refurbishments.
"As Canada's largest Public-Private Partnership, Bruce Power will continue to meet all investment requirements related to this multi-year program, and, through continued strong and efficient performance, will provide low-cost power to the province for decades," said Mike Rencheck, Bruce Power's President and CEO. "We are making this key contract award announcement today with the confidence the members of the Shoreline Power Group have demonstrated the experience, commitment and dedication to safety, quality, productivity and innovation to enable us to keep our Life-Extension Program on time and on budget."
Each member of the joint venture will provide best-in-class resources to manage and execute the work, building on the project management and technical capabilities of SNC-Lavalin, the construction expertise of Aecon and the controls and planning depth of AECOM.
Bruce Power is a low-cost electricity provider that powers more for less, delivering 30 per cent of Ontario's electricity at 30 per cent less than the average cost to generate residential power. Bruce Power's role has been recognized by a range of independent experts, business groups and energy experts in recent years. For example, in 2017, Ontario's Financial Accountability Office (FAO) released a report on the life extension of the province's nuclear fleet. The report concluded, "There is currently no portfolio of alternative low emissions generation which could replace nuclear generation at a comparable cost."
About Bruce Power
Formed in 2001, Bruce Power is an electricity company based in Bruce County, Ontario. We are powered by our people. Our 4,200 employees are the foundation of our accomplishments and are proud of the role they play in safely delivering clean, reliable, low-cost nuclear power to families and businesses across the province. Bruce Power has worked hard to build strong roots in Ontario and is committed to protecting the environment and supporting the communities in which we live. Learn more at www.brucepower.com and follow us on Facebook, Twitter, LinkedIn, Instagram and YouTube.
Founded in 1911, SNC-Lavalin is a global fully integrated professional services and project management company and a major player in the ownership of infrastructure. From offices around the world, SNC-Lavalin's employees are proud to build what matters. Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients across oil and gas, mining and metallurgy, infrastructure, clean power, nuclear and EDPM (engineering design and project management). On July 3, 2017, SNC-Lavalin acquired Atkins, one of the world's most respected design, engineering and project management consultancies, which has been integrated into our sectors. www.snclavalin.com
For further information: Media: Daniela Pizzuto, Director, External Communications, 514-393-8000, ext. 57522, [email protected]; Investors: Denis Jasmin, Vice President, Investor Relations, 514-393-8000, ext. 57553, [email protected]