Ontario s Nuclear Future Capitalizing on Opportunities Ron Oberth President OCI Canadian Nuclear Suppliers
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1 Ontario s Nuclear Future Capitalizing on Opportunities Ron Oberth President OCI Canadian Nuclear Suppliers CI s Ontario Power Perspectives April 16, 2012
2 Ontario: Center of the Canadian Nuclear Industry Canada was a successful nuclear pioneer 60 years of nuclear technology development AECL and Ontario Hydro collaborated to design and construct 20 CANDU power reactors in Ontario Nuclear energy is now a $6-$7 billion/year industry 21,000 direct jobs, 10,000 indirect jobs (contractors to the industry) including up to $1.2 billion in exports CANDU reactors generate >50% of Ontario s power Canada is second largest exporter of uranium
3 Ontario Nuclear Market 18 nuclear units - 12,000 MWe of generation ongoing inspection and maintenance Four unit Darlington plant (3400 MWe) will undergo major refurbishment first contract awarded in early 2012 Six units at Bruce site will undergo an asset management program to extend their operating lives to 2035 and beyond Joint Panel supported the Environmental Assessment for 2000 MWe of new generation at Darlington in August, 2011 Enhanced CANDU 6 and AP1000 undergoing pre-licensing review Ontario represents vibrant nuclear market that is attracting US and offshore nuclear companies to the region
4 OCI Canadian Nuclear Suppliers OCI is an industry association representing the interests of 160 private sector qualified suppliers of products and services to the Canadian and offshore nuclear industries. OCI member companies, mainly in Ontario, employ over 30,000 highly specialized workers with over 12,000 working in nuclear OCI membership spans: major engineering firms (AMEC-NSS, SNC Lavalin, Hatch, Worley-Parsons), constructors and large fabricators (Aecon, B&W, Comstock, E.S.Fox) specialized equipment manufactures (Rolls Royce, Promation) robotic equipment developers (Liburdi, Kinectrics, ATS Automation) nuclear fuel suppliers (GE-Hitachi Nuclear, Cameco) Promoting a Healthy Nuclear Industry reactor designers & service providers (Candu Energy, Areva, Westinghouse) OCI is at the heart of a nuclear cluster
5 Chalk River Nuclear Labs Key organizations and facilities in Ontario s nuclear industry Darlington site Bruce site Pickering site 5 Candu Network Organizations
6 What is a Cluster According to Harvard s Michael Porter: business clusters are critical masses in one place of linked industries and institutions--from suppliers to universities to government agencies--that enjoy unusual competitive success in a particular field. General examples: Silicon Valley for computers Napa Valley for wine Two examples of relevance Carolinas Nuclear Cluster Toronto Financial Services Alliance
7 Carolinas Nuclear Cluster Promoting a Healthy Nuclear Industry The Carolinas Nuclear Cluster is a consortium of industry, utilities, higher education, and local governments working in unison to support economic development in the region. Mission: The Carolinas' Nuclear Cluster collaboratively strengthens workforce, services, products, and policies to capture and extend the Region s global leadership in nuclear energy capabilities. Results: The Carolinas have become a hub of nuclear expertise, supplying more than 11% of US nuclear power production and hosting the first USA new build projects at Vogtle and VC Summer. Large nuclear companies such as Westinghouse, Shaw, URS, Fluor and B&W have opened offices in the Region creating jobs and wealth
8 Toronto Financial Services Alliance (TFSA) PARTNERSHIP AND ACTION MOBILIZING TORONTO'S FINANCIAL SECTOR FOR GLOBAL ADVANTAGE The Toronto Financial Services Alliance (TFSA) is a growing public-private partnership dedicated to increasing Toronto s role as a global financial services hub. Vision: To be the catalyst of financial services collaboration among government, industry and academia in the Toronto region to set and drive the sector s strategy, securing its position as a Top 10 global financial centre. In the last year Toronto has moved from 12 th to 10 th place on the Global Financial Center Index
9 Ontario s Long-Term Energy Plan Building Our Clean Energy Future November 23, 2010 Ontario will continue to rely on nuclear power at its current level of contribution to the supply. Nuclear generation is ideally suited for providing base load generation because of its unique economic and operating characteristics A generation mix of 50 per cent nuclear combined with base load hydroelectric generation is sufficient to meet most of Ontario s base load requirements. In developing a new-build procurement and modernization strategy Ontario will: Secure an acceptably priced contract for construction of nuclear new build under specified timeframes. Pursue project terms that are in the best interest of ratepayers. Retain the maximum number of high-quality, high-paying nuclear industry jobs in the province while providing opportunities for long-term growth of the nuclear industry.
10 Ontario s Nuclear Cluster Advantage 18 nuclear units operated by two world class utilities supply >50% of Ontario s electrical energy OPG and Bruce Power Privately owned CANDU designer - Candu Energy that has successfully exported nine CANDU reactors to four countries Nuclear-qualified Supply Chain (more than 160 companies) that help ensure reactor reliability and safety: B&W, GEH, SNC-Lavalin, Cameco FM, Amec-NSS, Kinectrics, Aecon, ES Fox, Promation, Areva Canada Nuclear Science and Technology Center that creates the technical underpinnings & innovations that enable continuous improvement in nuclear performance and safety AECL- Nuclear Laboratories Effective nuclear regulator CNSC that is globally recognized Excellent universities and colleges that produce the resources (scientists, engineers and technicians) that run our industry: UOIT, McMaster, RMC, UofW etc connected by UNENE
11 Ontario Nuclear Cluster would: Promoting a Healthy Nuclear Industry Promote Ontario as a nuclear hub to which companies will want to relocate to gain proximity benefits and from which a strong export business can thrive Ensure effective human resource planning by aligning nuclear workforce needs with programs at universities, colleges and trade schools Enhance technical innovation through collaboration among technology developers, designers, manufacturers, constructors and operators Increase public support for nuclear power by showcasing the Ontario ingenuity that ensures quality and safety in all aspects of our industry and by demonstrating how the nuclear industry generates economic prosperity in Ontario.
12 Managing Refurbishment Projects Project managers should implement an Integrated Owner / Supplier Team approach Project managers should ensure the timely flow of critical information among all major suppliers throughout the project efficient information sharing protocols and systems Tooling designers and constructors should work closely throughout the planning and execution phases of the project Designers should get constructor input for tooling design as well as procedure and process development. collaboration is the key
13 The Future Cluster-like collaboration can enable Ontario to become a vibrant nuclear hub excelling in domestic and offshore markets. The quality of our people, companies, and institutions will ensure that future nuclear refurbishment, asset management and new build projects in Ontario will be completed on time and on budget Cluster-driven innovation will ensure that our nuclear power plants are safe, cost effective, and reliable Ontario university, college and trade school gradates will find rewarding & sustainable careers in the Ontario nuclear industry
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