N.B. finds nuclear project viable, but study needed

SAINT JOHN, New Brunswick – A study on the feasibility of building and operating a second nuclear power plant in New Brunswick says the project could help meet the energy needs of the Maritimes and displace the region’s heavy dependence on fossil fuels.

Energy Minister Jack Keir said the report, prepared by an independent consultant, confirms there is a viable business case for constructing an 1,100-megawatt reactor next to the smaller, existing reactor at Point Lepreau.

“They’ve determined there is a viable business case using reasonable assumptions on the cost of the plant and projected market prices in the United States,” Keir said of the report by New Brunswick-based MZConsulting Inc.

“We originally thought all of the power would be sold in the United States. It now looks like up to half of that output could potentially be sold in the Maritime market.”

Terry Thompson of MZConsulting said New Brunswick is facing a difficult future as its largest power plants are forced to burn expensive oil.

“Nova Scotia, as well, is fossil-dependent for all but 11 percent of its power,” he said. “Over 70 percent is coal-fired power. Nova Scotia has environmental commitments, legislative commitments, so it would have a similar requirement either for large hydro or large nuclear.”

Nuclear opponents said the second reactor, estimated to cost at least $6 billion, is a pipe dream.

“The government is trying to construct a fairy tale to convince New Brunswickers this is a viable option and clearly it is not,” said David Coon of the New Brunswick Conservation Council.

Coon noted that the feasibility study details some of the many challenges a second reactor would have to overcome, including major competition from liquefied natural gas and natural gas projects.

The study goes on to say that many potential customers in the northeastern United States are not interested in the kind of lengthy power purchase agreements a nuclear developer would require.

As well, there is currently not enough transmission capacity to carry the energy into the U.S. market.

“This would be a go if pigs could fly, but pigs can’t fly so it’s not going to happen,” Coon said.

The proposed reactor would be the world’s first Advanced Candu Reactor-1000 – a design that is still on the drawing board at Atomic Energy of Canada Ltd., the federal Crown corporation behind Candu reactor products.

Candu reactors supply about 16 percent of Canada’s electricity.

In New Brunswick, the plan is to have the reactor built by the private sector and operated by NB Power, the province’s Crown-owned utility.

It would be up to the New Brunswick government to decide how much investment, if any, it would be willing to make.

But the energy minister hinted the province is very interested in investing in the project.

“If the business case looks like a no-brainer, and it’s a slam dunk … why wouldn’t the province of New Brunswick want to get in on some of that rate of return?” Keir said. “But we don’t have to decide yet.”

Coon said the provincial Liberal government is so wedded to its dream of turning the province into an energy hub, it can’t admit a second reactor is an unreasonable idea.

“There’s a lot of political oomph generated around the notion of an energy hub,” he said. “It’s not something this government will easily let go of.”

Keir confirmed the government has also received a study on the reactor proposal carried out by AECL and several leading nuclear industry firms, including GE Canada and SNC Lavalin.

He said the government will analyze that report and announce its findings later.

“This is a multibillion-dollar project and we want to do it right, not quick,” he said. “I don’t want to put artificial deadlines in front of us on a project of this magnitude. We don’t want to be rushed.”