Supply Chain Opportunities in the Canadian Nuclear Refurbishment Market

Supply Chain Opportunities in the Canadian Nuclear Refurbishment Market

The Report on Supply Chain Opportunities in the Canadian Nuclear Refurbishment Market is a 170+ page report that provides you with a comprehensive understanding on how to successfully capture business in this market.

Scope

The Canadian nuclear industry is undergoing a dynamic revitalization. Replacement of major components and life extension activities—also known as “Refurbishments”—will occur at ten nuclear reactor units over the next 17 years. This activity will generate approximately C$25 billion (US$20 billion) in economic activity. This must-have report covers:

• Overview of the political, economic and regulatory context for refurbishment in Canada

• Scopes of Work for each of the ten reactors being refurbished at Darlington and Bruce

• Procurement processes and investment levels for supply chain opportunities

• Schedule information for when procurements will occur

• Contact information for each major utility and current supply chain vendor

• Strategic Considerations and Key Success Factors for winning business in this market.

Reasons to Buy

This report is an invaluable tool for understanding how to win business in this lucrative and dynamic sector.

Notice.............................................................................................................................................. 2

List of Tables................................................................................................................................... 5

List of Figures................................................................................................................................ 6

Executive Summary....................................................................................................................... 7

Glossary and Acronyms............................................................................................................. 10

  1. Introduction........................................................................................................................ 12
  2. Canada’s Commercial Nuclear Power Sector and the CANDU Reactor........................ 13

2.1       Overview........................................................................................................................... 13

2.1.1    History........................................................................................................................... 14

2.1.2    Canadian Nuclear Technology - CANDU.......................................................................... 14

2.1.3    The Role of Nuclear Power in Canada............................................................................. 17

2.2       Canada’s Nuclear Utilities.................................................................................................. 19

2.2.1    Ontario Power Generation Inc........................................................................................ 20

2.2.2    Bruce Power L.P............................................................................................................. 21

2.2.3    NB Power...................................................................................................................... 23

2.2.4    Operating Power Reactors in Canada............................................................................. 24

  1. Decision-Making in Canada’s Civil Nuclear Sector......................................................... 26

3.1       Role of Provincial Governments........................................................................................ 26

3.1.1    Electricity Decision-Making in Ontario............................................................................. 26

3.1.2    Ontario’s Long-Term Energy Plan 2013........................................................................... 28

3.2       Legal and Regulatory Framework....................................................................................... 29

3.3       Licensing of Nuclear Power Plants..................................................................................... 30

3.3.1    The Canadian Nuclear Safety Commission...................................................................... 30

3.3.2    Main Licensing Activities for Power Reactors................................................................... 32

3.3.3    Licensing Reactor Refurbishments.................................................................................. 33

3.3.4    Recent Refurbishment Licensing Experience.................................................................... 35

  1. Driving Factors for Refurbishment of Ontario’s Nuclear Reactors........................... 37

4.1       Driving Factor #1: Government Commitment to Phase Out Coal.......................................... 37

4.2       Driving Factor #2: Maintaining Reliability.......................................................................... 37

4.3       Driving Factor #3: Cost-Effectiveness................................................................................ 38

4.4       Driving Factor #4: Managing Risk...................................................................................... 39

4.5       Driving Factor #5: Maintaining Schedule and Budget to Avoid Off-Ramps............................ 41

  1. Ontario’s Nuclear Refurbishments................................................................................... 44

5.1       Background....................................................................................................................... 44

5.2       What is Refurbishment?..................................................................................................... 45

5.2.1    Current Ontario Refurbishment Timelines....................................................................... 46

5.3       Darlington NGS Refurbishments........................................................................................ 47

5.3.1    Planning for Darlington Refurbishment.......................................................................... 47

5.3.2    Investment Level............................................................................................................ 49

5.3.3    Darlington Refurbishment Schedule................................................................................ 50

5.3.4    Scopes of Work for Darlington Refurbishment and Current Status................................... 51

5.3.5    Work Allocated and Awarded to Date............................................................................. 56

5.3.6    Pre-Qualification for Sub-Suppliers................................................................................. 59

5.3.7    Supply Chain Opportunities for Darlington Refurbishment.............................................. 61

5.3.8    Strategic Considerations for Darlington Refurbishment Supply........................................ 62

5.4       Bruce NGS Refurbishments................................................................................................ 64

5.4.1    Planning for Bruce Refurbishment.................................................................................. 64

5.4.2    Investment Level............................................................................................................ 64

5.4.3    Bruce Refurbishment Schedule....................................................................................... 66

5.4.4    Scopes of Work for Bruce Refurbishment and Current Status........................................... 67

5.4.5    Work Allocated and Awarded to Date............................................................................. 85

5.4.6    Bruce Power’s Procurement Process............................................................................... 86

5.4.7    Strategic Considerations................................................................................................ 87

  1. Conclusions.......................................................................................................................... 89

Appendix A   History of the Canadian Civil Nuclear Sector.................................................. 90

Appendix B    Bruce Refurbishment Complete Scope of Work................................................ 95

Appendix B.i   Main Component Replacement, Scopes of Work........................................................ 95

Appendix B.ii  Asset Management, Scopes of Work........................................................................ 99

Appendix C    Overview of Major Players in the Canadian Nuclear Sector....................... 107

Appendix D   Bruce Power, OPG and Tier 1 Contractors Contact Information................ 112

Appendix E    Select Canadian Suppliers Contact Information........................................... 114

Appendix F    Capabilities Profile Matrix of Canadian Nuclear Suppliers.......................... 162

Appendix G   Key Canadian Codes and Standards.................................................................. 170

Appendix H   Select Industry Association Contact Information........................................ 175

List of Tables

Table 1: Canada's Nuclear Assets And Utility/Ownership. 19

Table 2: Bruce Power L.P. partnership and ownership structure pre- and post-BPRIA, 22

Table 3: Operational nuclear power reactors and Refurbishment Status in Canada, 2016. 24

Table 4: Licensing steps for new nuclear in Canada. 33

Table 5: Licensing-related activities for NPP refurbishment and life-extension (source: CNSC). 34

Table 6: Darlington Refurbishment Schedule – Individual Unit Estimated Dates. 51

Table 7: Major Work Packages for Darlington Refurbishment and Current Status. 52

Table 8: Darlington Refurbishment Prime Contract Partners. 54

Table 9: Darlington Refurbishment Main EPC Contractors and Scopes of Work. 55

Table 10: Definition Phase Contract for SNC-Lavalin / Aecon JV.. 56

Table 11: Contracts Awarded to SNC-Lavalin / Aecon for Execution Phase of Darlington Refurbishment. 57

Table 12: Contracts awarded to BWXT Canada for Darlington refurbishment. 58

Table 13: Contracts Awarded to Promation Nuclear. 59

Table 14: Investment Level at Bruce by Category. 65

Table 15: Bruce Units 3-8 refurbishment, individual MCR start / duration / end dates (planned). 66

Table 16: Bruce Power MCR Major Work Packages and Current Status. 69

Table 17: Bruce Power Sourcing Strategy for MCR. 76

Table 18: Upcoming Procurement Opportunities for Bruce MCR. 77

Table 19: Asset Management Main Work Categories. 79

Table 20: Contract Awarded to SNC Lavalin Nuclear Inc. 85

Table 21: Contract Awarded to Laker Energy Products Ltd. 85

Table 22: Contract Awarded to BWXT Canada Ltd. 86

Table 23: Bruce Units 3-8 and Common Areas Asset Management Scope of Work, Complete. 99

Table 24: Principal Utilities / Tier 1 EPCs. 112

Table 25:  Suppliers in the Canadian Nuclear Supply Chain. 114

 

 

 

List of Figures

Figure 1: CANDU Nuclear Power Plant Diagram (Source: Candu Energy Inc.). 14

Figure 2: CANDU fuel bundle (source: Candu Owners Group). 15

Figure 3: CANDU Fuel Bundle, End-View (source: AECL). 16

Figure 4: CANDU Power Reactor Main NSP Safety Layers. 17

Figure 5: Location of operating nuclear power plants in Canada. 18

Figure 6: Roles and responsibilities of key entities in Ontario electricity power system planning. 27

Figure 7: Original Nuclear Refurbishment Sequence According to LTEP 2013. 28

Figure 8: Relative costs of electricity options in Ontario 2013$/MWh). 38

Figure 9: Containment layers inside a CANDU Calandria. 46

Figure 10: Refurbishment Timelines for Darlington and Bruce. 47

Figure 11: Darlington Refurbishment, Phased Project Management. 49

Figure 12: DNGS refurbishment high-level schedule, with approvals and off-ramps. 50

Figure 13: Darlington refurbishment project work packages, proportion of total schedule. 53

Figure 14: Bruce Units 3-8 refurbishment high-level schedule. 66

Figure 15: Bruce Unit 6 Major Component Replacement Program Schedule. 75

Ontario Power Generation

Bruce Power

SNC Lavalin Inc.

Aecon

BWXT