OTTAWA - The price tag for nuclear specialists will be in the millions if one of Atomic Energy of Canada Ltd.'s rivals wins an Ontario reactor bid, documents show.
That's because Canada's nuclear-safety watchdog lacks expertise in the type of reactors made by AECL's competitors and will have to pay big bucks to bring in specialists if one of them wins.
The Canadian Nuclear Safety Commission estimates it will cost up to $29 million for light-water experts to review licence applications from firms that build that kind of technology.
It's the first time a dollar amount has been put on light-water expertise.
"It is estimated that there will be two applications with this design requiring outsourced technical expertise at an estimated cost of $29 million over five years," says a memo prepared last December.
Those applications will come from French nuclear firm Areva and U.S. firm Westinghouse Electric Co., which both make light-water reactors. AECL makes Candu heavy-water reactors.
Heavy-water reactors are fuelled by unenriched, natural uranium while light-water reactors run on enriched uranium.
There are no light-water reactors in Canada. For this reason, the nuclear safety commission never needed much expertise in that technology, says another memo to CNSC president Michael Binder, prepared in January.
"While the CNSC has significant knowledge and expertise in the assessment, monitoring, and inspection of Candu reactors, its experience with light-water reactor technologies is limited," the memo says.
"Therefore, the CNSC is looking to identify organizations that can provide the skills and knowledge necessary to support the preparation for and eventual review of (nuclear power plant light-water reactor) applications."
The Canadian Press obtained the memos under the Access to Information Act.
A CNSC spokesman said the $29 million is a "planning amount" and no money will be spent unless a firm applies for a light-water reactor licence.
"If none of the Canadian licence applicants chooses (light-water) reactor technology for their nuclear power plants, the additional (light-water reactor) expertise resources will not be necessary and the CNSC will not proceed with the contracting and none of the funds will be spent," Aurele Gervais said in an email.
Any applicant for a light-water reactor licence will have to reimburse the CNSC for the full cost of outside expertise, he added.
Make-or-break deal
AECL is up against Areva and Westinghouse to build two new reactors in Ontario. It's widely seen as a make-or-break deal for Canada's beleaguered nuclear vendor.
The Crown company's future hinges on a successful Ontario bid and continued sales and maintenance work abroad.
The province is expected to award the reactor contract this summer after months of delays, though Ontario's energy minister, George Smitherman, has said the decision could be postponed even longer.
There's speculation the province may be waiting until AECL's nuclear reactor business is sold.
Last month, the federal government announced plans to spin off the Crown company's profitable nuclear reactor business and bring in private-sector management for AECL's research facility in Chalk River, Ont., which makes the medical isotopes used in diagnostic scans.
AECL shut down the aging research reactor May 15 after discovering a heavy-water leak. Company officials expect it to be down for a minimum of three months -- but likely longer.
The government expects a report on AECL's restructuring by the fall.
