Organization of CANDU Industries Promoting a Healthy Nuclear Industry 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 collectively employee over 30,000 people.
OCI Background Promoting a Healthy Nuclear Industry 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 both domestic and export markets. The Canadian supply chain has been critical to the success of Canada’s vast nuclear build program. Canada has built - for the domestic and export markets 36 power reactors 16 research reactors 2 prototype / demonstration reactors 6 heavy water plants
Evolution of OCI Promoting a Healthy Nuclear Industry Over the years the number of member companies has increased 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.
Customers Promoting a Healthy Nuclear Industry Domestic Utilities Ontario Power Generation Bruce Power Hydro Quebec New Brunswick Power International Utilities Romania Korea China Argentina India - future Universities McMaster University - Pool type reactor EcolePolytechnique - 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
Customers continued Promoting a Healthy Nuclear Industry Nuclear Waste Management Operations (NWMO) Deep Geological Repository for Low & Intermediate Level Waste Deep Geological Repository for Nuclear Spent Fuel Hospitals - nuclear equipment, Isotopes, medicine & waste handling 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
Canadian Nuclear Industry Promoting a Healthy Nuclear Industry Nuclear Industry – from theCNA The Nuclear Industry is currently a $6.6 billion/year industry $1.5 billion in federal & provincial revenues are generated through taxes The industry employs over 71,000 people 21,000 direct jobs 10,000 indirect jobs 40,000 spin-off jobs Over 160 companies export over $1.2 billion of goods
Local Economic Benefits of Nuclear Promoting a Healthy Nuclear Industry The nuclear industry in Durham already employs thousands of people and generates billions of dollars of economic activity. Ontario’s plans to refurbish 10 CANDU reactors and build two new plants (4 in Durham) will act as a catalyst to rejuvenate the nuclear industry, creating thousands of new high-paying jobs, both locally and across Ontario. These investments will provide the momentum for exports that will contribute billions of dollars of economic activity to the region and to the Canadian economy.
Economic Benefits of Nuclear Promoting a Healthy Nuclear Industry Regional economic benefits accrue to the community over the complete reactor life cycle, from research to decommissioning, as well as from exporting products & services in support of the global nuclear renaissance.
Economic Benefits of Nuclear Promoting a Healthy Nuclear Industry Operations
Extrapolating from the CME’s study “Annual Economic Impact of operating reactors in Ontario” the annual economic impact of operating OPG’s 10 reactors in the Durham Region would be ~ $1.59 billion / year.
Extrapolating from the CME’s study “Annual Economic Impact of Refurbishments in Ontario” the annual economic impact of refurbishing 4 reactors in the Durham Region would be ~ $1.0 billion / year over 11 yrs.
Darlington New Build Project
The Conference Board of Canada’s report, entitled “Economic Impact of New Nuclear Investments in Canada”, identified a capital investment in Canada of $7.4 billion dollars and employment of 64, 277 person years (considering direct and indirect employment)
Global Nuclear Potential Promoting a Healthy Nuclear Industry Power reactor Market
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 US and Russia
Significant further capacity is being created by plant upgrading in Canada and in the US through refurbishment and life extension programs.
Global Nuclear Potential Promoting a Healthy Nuclear Industry World Nuclear Association Outlook
Status of US Reactor Market Promoting a Healthy Nuclear Industry Design Certification (DC)
Port Granby in Clarington, under the Port Hope Area Initiative, is developing and implementing a safe, local, long-term management solution for the historic Low Level Radioactive Waste.
Opportunities for Regional Business Development
There are many opportunities for local companies to participate in these projects, develop products and services and market their capabilities.
Canada nuclear liability legacy is estimated at $2.7 billion, and the government is investing over $100 million / year to address it.
Deep Geological Repository for used fuel. Funded by reactor operators the Nuclear Waste Management Operations (NWMO) is charged with establishing safe long-term storage facilities for used fuel. The estimated cost for the facility is $5.4 billion (present value) for 2.2 million bundles.
Deep Geological Repository (DGR) for low and intermediate level waste. The NWMO is seeking regulatory approval, on behalf of Ontario Power Generation, for the construction the DGR.
The Department of Industry and Trade in the UK estimates the global decommissioning and waste management market to be ~ $485 billion (US)
Overview / Conclusion Promoting a Healthy Nuclear Industry
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
For suppliers to be successful they must carefully evaluate their products & services against global opportunities, reactor technologies and vendor quality requirements and develop a “value proposition”