Canadian engineering and construction company SNC-Lavalin said Thursday it had signed an agreement in principle for a Joint Venture with China National Nuclear Corporation and Shanghai Electric Company that would foster development of Advanced Fuel CANDU Reactors (AFCR) in mainland China and, in turn, in the global export market.
The Advanced Fuel CANDU Reactor uses fuel provided by Light Water Reactors, a type that China is soon to have in abundance. In China, there are 33 LWRs in operation and another 23 under construction phase.
“The market potential for AFCR technology in China is considerable,” SNC-Lavalin said. “Each AFCR can use recycled-fuel from four light-water reactors (LWRs) to generate six million megawatt-hours (MWh) of additional carbon-free electricity without needing any new natural uranium fuel. This would be enough new electricity to power four million Chinese homes, and also displace six million tonnes of carbon emissions per year vs. coal, the equivalent of removing one million cars from the road.”
SNC-Lavalin Power President Sandy Taylor called the deal a “game-changer in the nuclear industry and a great endorsement of our expertiese and CANDU nuclear technology.” That endorsement, Taylor noted, came from “the largest nuclear market in the world."
In terms of economic benefit, each new CANDU reactor project represents jobs and growth of the gross domestic product. “Each new build in China and anywhere in the world will benefit Canada in terms of job creation, innovation and nuclear research and development, environmental stewardship, and will contribute to reduce(d) global carbon emissions,” Taylor said in a statement. The nuclear sector in Canada alone directly contributes to over $6 billion to the economy annually, employs more than 30,000 highly trained and specialized people and creates and additional 30,000 jobs indirectly through contracting.
The agreements signed, the company noted, is subject to government and regulatory approval. The new joint venture, which is a follow up of an agreement signed in 2014, is expected to be registered in 2017 with the direct goal of creating two engineering centers, one in Canada and another in China. This could lead to construction of Advanced Fuel CANDU reactors in China “and around the world,” the company said.