Bruce Power and BWXT Canada Ltd. (BWXT Canada) will sign a memorandum of understanding (MOU) today to commence the process for steam generator design and manufacturing out of BWXT Canada’s facility in Cambridge, Ontario. The signing of the MOU follows yesterday’s announcement that Bruce Power will advance a long-term, incremental life extension program.
Cambridge-based BWXT Canada, a subsidiary of BWX Technologies, Inc. (NYSE: BWXT), has supplied all steam generators installed at the Bruce Nuclear Generating Station since the station went online in 1977. The MOU will address the supply of replacement steam generators for the four Bruce B units, starting with Unit 6, which will go offline for refurbishment starting in 2020. Each Bruce B unit will require the manufacturing of eight steam generators as part of Bruce Power’s life extension program. The supply of eight steam generators per unit will result in more than 350,000 engineering and labour hours for BWXT Canada, said John MacQuarrie, President, BWXT Canada.
“BWXT Canada is very pleased to sign this MOU with Bruce Power, on the heels of yesterday’s announcement, which signifies our continued strong relationship with the Bruce Power site,” MacQuarrie said. “This is the beginning of a long-term project that will provide a major boost for our Cambridge facility. Our employees take great pride in the highly technical work we conduct for the nuclear industry, and we look forward to playing a major role in the refurbishment of these reactors, which will benefit all Ontarians with low-cost, reliable and carbon-free nuclear power for generations.”
The cost of steam generators for the first unit will be determined through this process but is expected to total between $400 and $500 million (CA) for all 32 steam generators across the Bruce B units, all of which will be advanced incrementally as these important long-lead components are required for the refurbishment program. The final cost will be determined through this process and will take into account a number of factors including pricing of materials and timing.
Duncan Hawthorne, Bruce Power’s President and CEO, said that long-term relationships with suppliers like BWXT Canada are an excellent example of how a strong Bruce Power site injects billions of dollars into Ontario’s economy and creates thousands of jobs every year.
“The deal Bruce Power signed with the province yesterday has kick-started one of the largest infrastructure investment programs in Canada, and the people of Ontario will reap the benefits through a strong economy and well-paying, highly skilled careers,” Hawthorne said. “The steam generator replacement program is integral to our refurbishments, and BWXT Canada is a key player in our future successes. I look forward to working with the people at BWXT Canada for many years.”
Kathryn McGarry, MPP for Cambridge, shared in the excitement of the announcement yesterday and the positive economic impact nuclear has, not just at the Bruce site, but also in Cambridge.
“Bruce Power provides a significant portion of our nuclear generation and securing output through this long-term agreement will not only provide low-cost electricity for families and businesses but economic opportunities and jobs right here in Cambridge.”
About Bruce Power
Bruce Power operates the world’s largest operating nuclear generating facility and is the source of roughly 30 per cent of Ontario’s electricity. The company’s site in Tiverton, Ontario is home to eight CANDU reactors, each one capable of generating enough low-cost, reliable, safe and clean electricity to meet the annual needs of a city the size of Hamilton. Formed in 2001, Bruce Power is an all-Canadian partnership among Borealis Infrastructure Management (a division of the Ontario Municipal Employees Retirement System), TransCanada, the Power Workers’ Union and the Society of Energy Professionals. A majority of Bruce Power’s employees are also owners in the business.
About BWXT Canada Ltd.
BWXT Canada Ltd. (BWXT Canada) has supplied over 300 CANDU and Pressurized Water Reactor steam generators worldwide, as well as other critical plant components. The company’s in-depth knowledge comes from over 50 years of experience in the design, manufacturing, commissioning and service of nuclear power generation equipment. BWXT Canada is a subsidiary of BWX Technologies, Inc. (BWXT). BWXT is a leading supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components and services for the commercial nuclear power industry. www.BWXT.com
BWX Technologies, Inc. (“BWXT”) cautions that this release contains forward-looking statements, including statements relating to the expected benefits of the MOU with Bruce Power, and the timing and cost, to the extent they may be viewed as an indicator of future revenues, of the design and manufacture of the replacement steam generators. These forward-looking statements involve a number of risks and uncertainties, including, among other things, the consummation of a final definitive agreement with Bruce Power regarding the replacement steam generators and the terms thereof, delays or other difficulties in contract negotiation or execution, changes in the factors influencing the final cost of the steam generators, adverse changes to the demand for or competitiveness of nuclear power, or modification or termination of the final contract. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXT’s annual report on Form 10-K for the year ended December 31, 2014 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
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