When it came online in 1983 Lepreau's Candu 6 reactor was three years behind schedule and, at $1.4 billion, nearly $700 million over budget. This deal shields New Brunswick taxpayers from cost overruns.and
Patrick Lamarre, president of SNC-Lavalin Nuclear, said the private companies will generate project financing by tapping different companies and pension funds, should the project proceed. The New Brunswick government will have the ability to opt into as much risk as it believes it and NB Power can sustain.
"If the study is favourable, the funding for the project will be organized by Team Candu and by private investors and not by New Brunswick taxpayers," Lamarre said.
Duane Bratt is a policy studies professor at Mount Royal College in Calgary with expertise in the Canadian nuclear industry. He doesn't see a downside for the province, considering the private sector's lead role. Alberta has been examining a similar financial arrangement.and
"This should address many of the critics that have been out there about cost overruns and delays, that nuclear power is uneconomic," Bratt said. "This is very significant. This is the most significant aspect of this deal."
Mount Royal's nuclear expert said getting out early is giving New Brunswick the potential for a serious economic jolt.
"They are ahead of everybody," Bratt said. "In the case of Alberta they haven't even made their site selection yet." Keir called Wednesday's announcement a "no-brainer." The difficult decisions will come after examining the business case.
Also up for negotiation is the involvement of NB Power. David Hay, NB Power's president and chief executive officer, said it makes sense for his nuclear division to be the operator. But Keir said if NB Power balks at signing on, there is a possibility Atomic Energy and its partners could solicit an outside operator.and
Atomic Energy would not disclose how much a new generation reactor would cost. Outside estimates place the cost at more than $3 billion. Graham floated a $5-billion total value of such a project, pointing out the second reactor would create 4,000 jobs in trades, engineering and information technology over six years, 500 permanent jobs at the reactor, and roughly 300 jobs at the two centres of excellence.and
"It is time to bring our New Brunswickers back," Graham said at the news conference.
the $2.5-million feasibility study must demonstrate a solid business case. In the coming months, Atomic Energy will be pushing interested U.S.-based utilities to sign statements of intent, the first step toward buying power generated from a future reactor.In the comments on the earlier thread, the main concerns seemed to be the viability of markets and risk for the province. According to this, there is no committment now. If we do decide to go ahead we will have a cutting edge centre of excellence in New Brunswick, the builders will take on as much risk as we want (including the potential to take all of it on and we would not get cash to pay down debt but would get 800 good, permanent jobs) and so on and so on.
Now, can't we all just get along? Agree this is worth a look and celebrate a bit of innovative thinking and forward moving direction coming from our government for the first time in a long time?