Nuke

Canada suspends new nuclear reactor construction

Tue Jun 30, 2009 11:03 am (PDT

OTTAWA (AFP) - Ontario, Canada's economic hub, announced Monday the suspension of its plan to build two new nuclear reactors, citing concerns about vendor Atomic Energy Canada Limited's viability, and pricing.

The provincial government said AECL's bid to build the two new nuclear power plants at its Darlington station, 43 miles (70 kilometers) east of Toronto, by 2018 was the only one to meet its terms and objectives.

The project was to be the first step in the modernization of Ontario's aging nuclear fleet.

France's Areva and Westinghouse Electric Company, a subsidiary of Japan's Toshiba, had also bid on the project in February.

But, in the end, none of the proposals presented "suitable" longterm energy costs for the province, Ontario Energy Minister George Smitherman said.

As well, "uncertainty regarding the company's future prevented Ontario from continuing with the procurement at this time," he said.

Ontario currently generates half of its electricity from 16 nuclear reactors that were built by AECL between 1970 and 1990.

In 2007, it announced plans to spend 26.5 billion dollars to replace aging units and renew its entire fleet over the coming years.

The daily Globe and Mail said recently that Ontario sought assurances in case of project cost overruns from the federal government, which is seeking to privatize AECL.

The stalled project is a blow to both struggling AECL and international nuclear firms, as this was the first in Canada to be open to foreign bids.