Nuclear New Build Model in Argentina. Francesca Ottoni, Senior Vice-President, Marketing & Business Development, Nuclear, SNC-Lavalin

Transcription

1 Nuclear New Build Model in Argentina Francesca Ottoni, Senior Vice-President, Marketing & Business Development, Nuclear, SNC-Lavalin

2 Agenda Nuclear Market Trends Nuclear Program in Argentina Atucha New Build Project overview Financing model Market Dynamics 2

3 Nuclear Market Trends Carbon Reduction: Reducing GHG emissions creates opportunities in Nuclear Sector West to East Shift: China & India becoming growth drivers in global nuclear industry Public to Private Shift: Shift from public to private financing Emerging markets & need for capacity building: infrastructure development support Industry Shift & Consolidation: constant consolidation and restructuring Waste Management: concerns over increasing quantities of spent fuel Emergence of SMRs: Increased interest in the development of SMRs 3

4 New Build: Multifaceted Market Dynamics Government Support / Alignment Social License Funding Availability Successful New Build Model Commercial Viability Risk Appetite Customer needs: Localization 4

5 Argentina Nuclear Program Argentina currently has three operating nuclear reactors: One CANDU PHWR unit at Embalse Two Siemens PHWR units at Atucha On-going projects: Life extension of the Embalse CANDU station, expected to come back on-line in 2018 Construction of locally-designed Small Modular Reactor: CAREM-25, expected to start operating in 2019 Future projects: 4 th NPP: CANDU New Build at Atucha site 5 th NPP: Hualong One New Build at site TBD Further CAREM units in Argentina and internationally Source: World Nuclear Association 5

6 New Build Projects Model New build nuclear projects are moving into more commercially viable models Two new nuclear power stations in Argentina: 4 th NPP a CANDU reactor 5 th NPP a Hualong One reactor Joint partnership of Argentina s NA-SA, China National Nuclear Corporation (CNNC) and SNC-Lavalin Chinese funding through sovereign loans for both new build projects Chinese Export Credit Financing 4 th NPP EPC : NA-SA & CNNC Technology Vendor, NSP design, NSP equipment supply, project management & engineering services: SNC-Lavalin Overall project management, NSP equipment supply, construction & services: NA-SA BOP design, BOP & NSP equipment supply: CNNC Owner NA-SA 4 th & 5 th NPP General Contract: NA-SA & CNNC 5 th NPP EPC: NA-SA & CNNC Construction NA-SA Chinese Export Credit Financing Technology Vendor, Engineering & Procurement CNNC Subcontracts: Nuclear Supply Chain Subcontracts: Nuclear Supply Chain 6

7 4 th NPP Project Overview Discussions continue to progress for the Enhanced CANDU 6 New Build Project at Atucha between SNC-Lavalin, CNNC and NA-SA The 4 th NPP project is for a single unit CANDU station with SNC-Lavalin performing the Nuclear Plant Engineering and Procurement of key equipment The project is being mostly financed by China as a sovereign loan to Argentina The Pre-Project agreement was signed in November 2016 A general contract for the project was signed in May 2017 between NA-SA, CNNC & CZEC Project work is expected to begin in

8 4 th NPP Project Site Future Chinese NPP The Atucha Nuclear Site is located in the town of Lima, Zárate, Buenos Aires Province, about 100 kilometres north east of Buenos Aires, on the shore of the Paraná de las Palmas River. Site layout for Atucha I, Atucha II and the 4 th NPP Project 8

9 CANDU 6 Reactor BOP NSP 9

10 Complex Dynamics: Government Relations and Social License Significant impact of government relations: Importance of Canada-Argentina bilateral dialogue and political alignment. Increased importance of Social License: Local acceptance Localization Canadian Prime Minister Justin Trudeau visited Argentina on Nov, 2016 and held meetings with President Mauricio Macri to discuss various topics including Nuclear projects. 10

11 Thank you! Questions?