Organization of CANDU Industries. Energy Connections Summit 2011

Transcription

1 Organization of CANDU Industries Energy Connections Summit 2011 D.W. Marinacci, General Manager May, 4th, 2011

2 Agenda Introduction Organization of CANDU Industries Evolution of OCI OCI s Goals Size of Nuclear Industry Global Nuclear Potential Status of US Reactor Market Decommissioning & Waste Management Market Overview & Conclusions

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4 Organization of CANDU Industries The Organization of CANDU Industries is an industry association representing the interests of the suppliers of goods and services to the Canadian nuclear industry. OCI represents 160+ companies spanning Canada s major engineering firms such as AMEC, Hatch and SNC Lavalin, and constructors and large scale fabricators such as AECON, Babcock & Wilcox, Black and MacDonald, Comstock and E.S.Fox to the many small and medium equipment providers, logistics operators and even nut and bolt manufacturers that make up the Canadian nuclear industry. We provide goods and services to the nuclear industry and employee over 30,000 people.

5 Organization of CANDU Industries Incorporated in 1979 by several privately owned Canadian manufacturers and engineering consultants. To promote companies in the Canadian private sector engaged in the supply of goods and services for CANDU and LWR nuclear power plants in domestic and export markets. The Canadian supply chain has been critical to the success of Canada s vast nuclear build program. Canada built - for the domestic and export markets 36 power reactors 16 research reactors 2 prototype / demonstration reactors 6 heavy water plants Promoting a Healthy Nuclear Industry

6 Evolution of OCI Over the years the number of member companies has increased dramatically and along with it markets and customers. OCI companies now supply products and services in support of nuclear research, isotope production, nuclear medicine, uranium mining in addition to power reactors. For over 60 years OCI and its predecessor companies have supported Canada s pioneering nuclear research programs and operations at AECL sites and Universities across the country. OCI supplies goods and services to the Canadian Uranium industry that mines processes and manufactures nuclear fuel and is one of the largest in the world. OCI companies support and supply goods and services to the Canadian nuclear medical industry the largest supplier of medical isotopes in the world.

7 OCI Goal s Help member companies succeed in the nuclear market. Strengthen relations and communications with key partners through regular senior management liaison meetings Explore ways to help OCI members interface with nuclear customers: Expand the number of suppliers days with key customers Expand the number of meetings between OCI members and customers Expand the number of social engagements for OCI members and customers to interface Work with stakeholders and customers to achieve the Federal Governments objectives and position Canada s nuclear industry to seize domestic and global opportunities

8 Nuclear Customers Promoting a Healthy Nuclear Industry Domestic Utilities Ontario Power Generation Reactor Operations NWMD Nuclear Waste Management Operations Bruce Power Hydro Quebec New Brunswick Power International Utilities Romanian Korean Chinese Argentina India - future Universities McMaster University - Pool type reactor Ecole Polytechnique - Slowpoke 2 research reactor Dalhousie University - Slowpoke 2 research reactor Saskatchewan Research Council - Slowpoke 2 research reactor University of Alberta - Slowpoke 2 research reactor Royal Military College of Canada - Slowpoke 2 research reactor

9 Nuclear Customers continued Promoting a Healthy Nuclear Industry Hospitals COG - CANDU Owners Group Many OCI member Companies are also OCI customers Cameco - Uranium mining & fuel manufacture General Electric Hitachi fuel manufacturer, fuel machines, equipment Babcock Steam generators, equipment Large Engineering & Construction firms like SNC Lavalin, AMEC, CH2MHill, Aecon, Comstock etc. Tier 2 & 3 Suppliers for major projects

10 Size of the Nuclear Industry Existing Nuclear business - CNA Nuclear energy is a $6.6 billion/year industry Generates $1.5 billion in federal &provincial revenues through taxes Total over 70,000 jobs 21,000 direct jobs 10,000 indirect jobs (contractors to the industry) 40,000 spin-off jobs 160 firms and over $1.2 billion in exports With Ontario s intention to proceed with the Darlington project, and refurbish ten CANDU s along with international plans to build more than 155 reactors, over 60 of which are currently under construction, there are enormous potential opportunities for the Canadian supply chain.

11 Power reactor Market Global Nuclear Potential There are currently ~ 440 nuclear power reactors operating in 30 countries, with a combined capacity of over 376 GWe providing ~15% of the world's electricity. Approximately 155 reactors are planned to be built internationally with over 60 power reactors currently under constructed in 15 countries. Most reactors on order or planned are in the Asian region, though there are major plans for new units in Canada, Europe, the USA and Russia Significant further capacity is being created by plant upgrading in Canada and in the USA through refurbishment and life extension programs.

12 Global Nuclear Potential continued World Nuclear Association Outlook

13 Status of US Reactor Market Design Certification (DC) Two designs are certified; GE ABWR; Westinghouse AP1000 Early Site Permit (ESP) Four issued by NRC Two applications under NRC review Two applications anticipated in the future New Nuclear Plant Orders Four Engineering, Procurement, & Construction Contracts signed TVA resumed construction of Watts Bar 2 &reconsidering Bellefonte 1 & 2 Combined Construction and Operating License (COL) 18 COL applications submitted, 12 remain under active NRC review

14 Status of US Reactor Market continued Components & Manufacturing Nine utilities ordered large, long-lead forgings from three reactor vendors Large forging orders initiated by AREVA, Toshiba & Westinghouse Westinghouse ordered reactor coolant pumps and containment liner plates Progress, SCE&G & Southern contracted Westinghouse for long-lead forgings Entergy & Exelon contracted GE-Hitachi for long-lead forgings AmerenUE & UniStar contracted AREVA for long-lead forgings NRG Energy signed an agreement with Toshiba for long-lead forgings Supply Chain Areva & Northrop Grumman are building a facility in Virginia, to manufacture heavy components for the EPR scheduled for 2013 Shaw & Westinghouse built a 410,000-square-foot facility in Louisiana, to produce structural, piping, equipment, & other modules for the AP1000 Internationally: Japan Steel Works is expanding capacity; AREVA, Doosan, BWXT, & Russia s Uralmash-Izhora Group (OMZ) are developing large forging capabilities

15 Decommissioning & Waste Management Market Over 400 civil nuclear reactors worldwide will need to be decommissioned over the next several decades The global market is estimated to be worth $485 Billion US over the next 30 years Decommissioning and cleanup of the global civil nuclear legacy represents a massive management, technological and environmental challenge for the international community over the next century * Taken from the Global Decommissioning Opportunities Report (Commissioned by the UK Department of Trade and Industry, UK Trade and Investment and Scottish Development International) Examples of Global Decommissioning & Waste Management Opportunities Country Est. Liability 2009 Est. Yearly Expenditure United States ~ $200 billion US ~ $ 6 billion US United Kingdom ~ $ 71 billion US ~ $ 2.6 billion US Canada ~ $ 2.7 billion CDN ~ $ 105 million CDN

16 Overview / Conclusion The Canadian nuclear supply chain has extensive experience supplying products and services to the domestic and international CANDU markets With the Darlington project and refurbishment of ten CANDU s committed there are enormous opportunities for the supply chain in Canada With 155 reactors planned and > 60 under construction there are significant opportunities for the Canadian supply chain in international markets The Canadian supply chain is in a good position to pursue the US reactor market; which is set to grow rapidly in the next few years With an est. $485 Billion global decommissioning & waste management market developing there are opportunities for more suppliers in this sector Suppliers must, however, carefully evaluate their products & services against global opportunities, reactor technologies and vendor quality requirements

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