OTTAWA—The Liberal government is lending AtkinsRéalis, formerly SNC-Lavalin, up to $304 million to design the next generation of CANDU nuclear reactors, a move that could allow the company to compete for work on a massive expansion at Ontario’s largest nuclear plant.
The loan will go toward an updated design of the CANDU reactor, which is in service at power plants across Canada and around the world. AtkinsRéalis has been leading a campaign called “Canadians for Candu” since last year to encourage the government to help fund a redesign called the CANDU Monark.
The campaign had former prime minister Jean Chrétien and former premier Mike Harris as co-chairs, and lined up support from industry groups, universities and unions. The Monark reactor will be capable of producing 1,000 megawatts of power, almost double the output of the current CANDU design.
Natural Resources Minister Jonathan Wilkinson said it makes sense for the government to take part in that redesign.
“We want to be part of that. The CANDU needs a refresh and it needs an update,” Wilkinson said in an interview with the Star. “This partnership is one to essentially allow us to accelerate the development of this new, updated CANDU that allows us to both be deployed in Ontario and elsewhere in Canada, but also to actually deploy in countries around the world.”
AtkinsRéalis, which was formerly known as SNC-Lavalin, owns the right to sell and develop the CANDU reactor, which was originally designed by the Crown corporation Atomic Energy of Canada Limited (AECL). In 2011, Stephen Harper’s government struck a deal with AECL to lease the reactor technology to the Quebec-based engineering firm. The government is paid royalties when the company sells a new reactor or does a refurbishment, but maintains ownership of the intellectual property.
Before its renaming, AtkinsRéalis was at the centre of a political scandal in 2019 following allegations that prime minister Justin Trudeau had pressured his justice minister, Jody Wilson-Raybould, to offer the company a deferred prosecution agreement to settle criminal charges related to activities in Libya. Those charges were later settled, with SNC-Lavalin paying a $280-million fine.
Wilkinson said the deal with AtkinsRéalis make sense now because it helps strengthen the Canadian nuclear industry at a time when demand for nuclear-generated power is rising globally.
“They actually owned the business so there is no other partner for the Government of Canada,” he said. “I think it’s a good deal for Canadians and it’s a good deal for Canadian leadership in the nuclear space.”
In a news release, AtkinsRéalis said it was pleased to get the government’s support and said the reactors, which are built using an almost entirely Canadian supply chain, are the right choice.
“Advancing CANDU technology creates economic value for the country and Canadians, said CEO Ian Edwards. “We are honoured to have the full faith and confidence of the Government of Canada.”
One of the first possible contracts for a new CANDU reactor would be in Ontario, as Bruce Power looks to expand the generating capacity of one of the world’s largest nuclear power plants by potentially another 4,800 megawatts.
Bruce Power has a fleet of CANDU reactors already, but has said it has not decided whether it would continue with that technology.
“The decision of which large nuclear technology or technologies that could be selected to deploy in Ontario should be based on a range of attributes that benefit the people of Ontario, including cost, design readiness, reliability, and local content,” said the company in a statement.
While there is still design work to complete on the Monark, the U.S.-based Westinghouse Nuclear has already built 1,000 megawatt reactors and is also a likely bidder for the Ontario project.
Wilkinson said he hopes the company thinks about the long term when it comes to their selection.
“With what has happened with the United States and President Trump, I think, increasingly it will behoove Ontario and Ontario Power Generation and others to think very carefully about the choice that they make at the end of the day,” he said.
Isha Chaudhuri, a spokesperson for Ontario Energy Minister Stephen Lecce, said the Bruce project is only in the early stages and welcomes vigorous competition.
“Our government is protecting Canadian jobs, and growing Ontario’s world-class supply chain as we build and expand nuclear generation,” Chaudhuri said in an email. “This project remains in the early stages of planning and development, and we continue to welcome strong competition among technology providers to deliver affordable and reliable power for Ontario families and businesses.”
