Third major contract in 10 months highlights long-term economic benefits of CANDU technology
Mississauga, 2006 June 07 — Atomic Energy of Canada Limited (AECL) today announced that it has been awarded a major contract by Korea Hydro & Nuclear Power Co., Ltd. (KHNP) for the retubing of the Wolsong 1 CANDU 6 nuclear reactor. Terms of the contract include a fixed price and 55-month schedule.
This marks AECL’s first international retubing project and the third major contract awarded to the company in the past 10 months. Previously announced contracts include the refurbishment project at the Point Lepreau CANDU plant in New Brunswick and the retubing of the Bruce A Unit 1 & 2 reactors for Bruce Power in Kincardine, Ontario. The combined value of the three contracts amount to more than $1.5 billion.
“These contracts highlight the economic advantages of generating electricity with CANDU technology,” says AECL President and CEO Robert Van Adel. “Retubing essentially delivers a new power plant for half the price of building a new station and enables it to continue generating electricity for many more years.”
The Wolsong 1 CANDU unit went into operation in 1982 and has achieved a lifetime capacity factor of 85.6 per cent. There are four CANDU 6 plants owned and operated by KHNP in Korea and all rank among the world’s top performing nuclear plants.
In commenting on the awarding of the Wolsong contract, the Honourable Gary Lunn, Minister of Natural Resources, stated that AECL and the entire Canadian nuclear industry are well positioned to benefit from this opportunity.
“I congratulate AECL on the successful negotiation of this major contract,” stated Minister Lunn. ”Awarding of the Wolsong 1 contract ensures that AECL and other companies in the CANDU family can continue to gain international experience and benefit from the continuity of the CANDU program.“
AECL’s Chief Operating Officer, Ken Petrunik said, “This is another ringing endorsement of AECL’s ability to deliver end-to-end solutions for its flagship CANDU reactor, from design, construction, financing and life extension. AECL has been building reactors almost continuously for the past 30 years and we have the strongest core delivery capability of any nuclear vendor in the world because we have never stopped building. This continuity of experience will enable AECL and Canada’s nuclear industry to maintain the people and skills that will position us to capitalize on future new build opportunities.”
This renewed commitment to CANDU allows for the recruitment and development of key resources in an industry that is facing shortages in qualified personnel. In the last 10 months, AECL has hired more than 900 new employees as part of its growing business.
About AECL
Atomic Energy of Canada Limited is a full service nuclear technology company providing services to nuclear utilities around the world. Established in 1952, AECL is the designer and builder of CANDU technology including the CANDU 6, one of the world’s top performing reactors.
AECL’s 4,000 employees deliver cutting edge nuclear services, R&D support, design and engineering, construction management, specialized technology, waste management and decommissioning in support of CANDU reactor products. We work in partnership with our clients to provide clean, safe, reliable and affordable energy solutions. More information on AECL and CANDU technology can be found at http://www.aecl.ca/.
Contact:
Dale Coffin
Director, Corporate Communications
Direct: 905-403-7457
Media: 905-403-7539
Toll free: 1-866-886-2325
E-Mail: coffind@aecl.ca