SNC-Lavalin joint venture to service Darlington nuclear plant

SNC-Lavalin (TSX:SNC) said June 27 that its joint venture with Aecon Group (TSX:ARE) has been awarded two multimillion-dollar contracts by Ontario Power Generation (OPG) for nuclear services at the Darlington Nuclear Generating Station in Ontario, Canada.

The first contract, valued at (C) $265m, is for the refurbishment of all four 935-MW steam turbine generators at the station, along with overhauls of the generators and moisture separator re-heaters, condenser repairs and implementation of new controls systems. Under this contract, the work is split 40% to SNC-Lavalin and 60% to Aecon. Work has already begun and is forecast to be completed in 2025.

The second contract is for the engineering, procurement and construction of the Retube Waste Processing Building. Valued at (C)$27m, the work is split 50% to SNC-Lavalin and 50% to Aecon and is expected to be complete in 2017.

In January 2016, the joint venture was awarded a $2.75bn contract to carry out the execution phase of its Retube and Feeder Replacement project for OPG’s Darlington Nuclear Generating Station Refurbishment Program.

“We are pleased to work closely with OPG to extend the life of one of Canada’s largest nuclear generating stations,” said Preston Swafford, Chief Nuclear Officer & Executive Vice-President, Nuclear, SNC-Lavalin. “Our nuclear capabilities ensure that the Candu nuclear reactors will continue to provide safe, reliable, affordable and CO2-free energy to Ontario for up to another 30 years.”

“Aecon remains steadfast in our commitment to delivering end-to-end turnkey solutions for our diverse range of clients across the country,” said Aecon President and CEO Teri McKibbon.

Ontario Power Generation has been planning the (C) $12.8bn refurbishment project since 2009.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.