Wednesday, September 23, 2026

World Nuclear News


Contracts announced as Pickering refurb approaches



The Province of Ontario has announced the signature of more than CAD3 billion (USD2.1 billion) worth of contracts for the refurbishment of four units at Ontario Power Generation's Pickering plant as site construction for the project gets under way.
 
Aecon's Samantha Roussy, an operating engineer working with the Pickering Refurbishment team, speaking at the contract announcement watched by Minister Lecce (Image: Aecon)

Ontario Power Generation's (OPG) Pickering units 5 to 8 - together known as Pickering B - are to be removed from service by the end of September for refurbishment to officially begin in January 2027, subject to final regulatory approval. After the major project - which will include the replacement of 1,520 fuel channels, 48 boilers and building a 1.5-kilometre deep-water intake - the refurbished station will supply up to 2,200 MW of power.

As site construction began on 21 September, the Province of Ontario announced that a CAD1.7 billion contract for the execution phase of the Retube, Feeder and Boiler Replacement (RFBR) for Pickering 5 has been awarded to a 50:50 joint venture of Aecon Group Inc and Candu Energy, an AtkinsRéalis company. A consortium of Aecon and Siemens Energy Canada has been awarded a contract worth CAD1.3 billion for the Turbine Generator Replacement. The refurbishment project as a whole is expected to contribute CAD41.6 billion to Canada's GDP.

The scope of the Retube, Feeder and Boiler Replacement work is a critical component of the Pickering refurbishment project, including the replacement of steam generators, fuel channels and feeders. The contract covers engineering and design services, project delivery, as well as programme and project management associated with the CANDU reactors, including work that would enable Unit 5 to operate until the 2060s, AtkinsRéalis said. Similar work will need to be carried out on units 6, 7 and 8 in subsequent phases of the refurbishment project.

The Turbine Generator Replacement scope includes installation of 14 new steam turbine rotors, the overhaul of four generators (including stator rewinds), as well as the delivery of new auxiliary systems, and a control and monitoring system. Aecon holds a majority interest in the consortium with Siemens, and will provide construction services and material procurement. 

Both projects are currently nearing completion of collaborative development work, with further prerequisite work expected to start this month, Aecon said.

"Advancing the Pickering Nuclear Refurbishment Project is another significant milestone in Ontario's clean energy future and further demonstrates the strength of Aecon's comprehensive nuclear construction expertise," Aecon Group President and CEO Jean-Louis Servranckx said. "Building on decades of experience successfully delivering the largest and most complex nuclear projects across North America, our teams are proud to support OPG in extending the life of this important nuclear generating station while helping ensure a reliable supply of low-carbon electricity for Ontario."

"AtkinsRéalis brings decades of hands-on experience refurbishing Canadian-owned CANDU reactors in Ontario, with a proven track record of delivering complex life-extension work safely, reliably and with the discipline required for on-time and on-budget performance," AtkinsRéalis President and CEO Ian Edwards said. "This work at the Pickering station will help ensure Ontario continues to benefit from reliable, affordable and low-carbon electricity for decades to come."

Pickering units 5-8 began operations in the mid-1980s and had been scheduled to end electricity production this year, but in 2022 the provincial government directed OPG to keep them in operation until 2026 and to reassess the feasibility of refurbishing the units. The government gave OPG the go-ahead to begin the initiation phase of the refurbishment project in January 2024, and one year later, it gave its permission for the start of the project definition phase. In November, the Ontario government formally approved OPG's refurbishment plan, clearing the way for the execution phase of the project to begin.

Over the years, Pickering Nuclear has consistently met up to 14% of Ontario's electricity needs, according to OPG. President and CEO Nicolle Butcher said that since the first unit at Pickering A began operating in 1971, the plant has established itself as one of the world's largest and best-performing nuclear facilities. "Through its refurbishment, we will ensure this important station continues to play a vital role in powering Ontario for future generations," she said. The last of the Pickering A units, Pickering unit 4, was permanently shut down at the end of 2024.

"When the previous government planned to shut down Pickering, our government chose to protect 4,500 jobs and create 30,500 new jobs by doubling down on Canadian workers, technology and energy sovereignty," Stephen Lecce, Ontario's Minister of Energy and Mines, said. "Today, we are marking a national achievement as we begin work on Canada's largest clean energy infrastructure project and strengthen our made-in-Ontario nuclear supply chain."

SGE confident of UK SMR fleet prospects


The team behind plans for a fleet of 14 BWRX-300 small modular reactors in the UK says they are confident of the economic model and supply chain capability to deliver these units.
 
How a BWRX-300 could look (Image: GE Vernaova Hitachi)

SGE (formerly Synthos Green Energy) in July submitted an application under the UK's Advanced Nuclear Framework for reactors which could provide 4.2 GW of capacity, equivalent to 11% of current UK power demand.

Poland's SGE - whose deployment team includes Samsung C&T, Laing O'Rourke, Aecon Group and Google Cloud - says it will privately finance the deployment of the fleet of GE Vernova Hitachi’s BWRX-300 small modular reactors (SMRs) across three sites in the UK.

The plan is for the initial site to host six of the 300 MW SMRs, with four each at two subsequent sites. The locations of the proposed sites have not yet been disclosed, pending final negotiations.

Rafał Kasprów, CEO of SGE, told World Nuclear News, "I think the UK market has amazing opportunities for SMR developers, and especially us with a fleet approach".

From the financial point of view he says "we are bringing this investment to the UK … with the disruptive model of not asking government to cover everything on the development and construction phase. We are asking the UK government for Contract for Differences for a fleet of reactors. So it is only when electrons are delivered to the grid that we can benefit from the Contract for Difference model".

The Contract for Difference (CfD) would work by a future price being agreed for electricity generated by the SMRs - if the price of electricity is higher, the developer will pay the extra back, and if the price of electricity is below the agreed level, the difference is provided to the developer. In the energy sector, a CfD acts as a very long-term price stabilisation mechanism. The UK used a Contract for Difference funding model for Hinkley Point C, but moved away from it for the Sizewell C project. 

SGE's project is currently going through the "deep dive" stage of the UK's Advanced Nuclear Framework which they believe will conclude in October or November and allow them to be part of the pipeline, and start to execute the project.

As an investor in the project, SGE says that it knows what it needs to do internally to de-risk the project "so we know how to translate that same conversation to markets".


Kasprów, seated, centre, at June's event outlining its UK fleet plan (Image: SGE)

The company has also developed plans for a fleet of SMRs in Poland and in June submitted its contract for difference application to the government there. As to which country's projects might happen first, Kasprów says that the UK project could happen at the same time, praising the UK regulatory regime and its infrastructure.

He also rejected concerns about the capacity of supply chains and workforce to cope with the construction of Sizewell C and a number of SMR projects at the same time. He stressed the maturity of the BWRX-300 technology, its use of existing nuclear fuels and the example and experience of the first unit being constructed in Canada.

"We are using existing supply chains - there is also an advantage to the fleet approach because there are places where the supply chain exists, but maybe needs to scale up, and by coming to market with a 14-unit project as our starting point those companies can see a clear path to making that investment worthwhile," said Robert Rudich, Chief Business Development Manager.

They also stress that the non-nuclear part of the plant is similar to conventional power plants, with the industrial giants GE Vernova and Hitachi as partners and all part of a Europe-wide supply chain.

GE Vernova Hitachi Nuclear Energy's BWRX-300 is a 300 MWe water-cooled, natural circulation SMR with passive safety systems that leverages the design and licensing basis of the company's US Nuclear Regulatory Commission-certified ESBWR boiling water reactor design and its existing, licensed GNF2 fuel design, a unique combination that GE Vernova Hitachi Nuclear Energy says positions it to deliver an "innovative, carbon-free baseload power generation source" this decade.

The first BWRX-300 is under construction at Ontario Power Generation's Darlington site in Canada, with completion expected by the end of the decade. The Darlington project is a reference project for OSGE.

Luba Kotzeva, founder and CEO of advisory and consultancy group Etara and part of the project team, said there had been "good engagement" with the UK side on the issue of a Contract for Difference funding model and stressed the importance of the proposal being for a fleet programme: "I think that is essential to getting the economies of scale, to getting the economics to flow, to getting the private capital."

The example of the first SMR being built in a G7 country, at Darlington in Canada, is also seen as a key development. Kasprów said: "It's extremely important, it is the difference between having something and nothing. It's not about promises anymore - it's happening."

Škoda JS to supply control rod drives for Rolls-Royce SMR's reactors



Czech company Škoda JS has been chosen as sole supplier of control rod drive mechanisms for Rolls-Royce SMR's future small modular reactors.
 
(Image: CEZ)

Škoda JS is part of the Czech majority state-owned CEZ Group, which also has a 20% stake in UK-based Rolls-Royce SMR.

Earlier this year Škoda JS and Doosan Enerbility were selected by Rolls-Royce SMR for pre-production work for key components - including the reactor pressure vessel - with work which encompasses "early supplier engagement, design finalisation and manufacturing readiness to support the delivery of first power at the earliest possible date".

The Pilsen-based firm has now added the contract for the control rod drive mechanisms, which are key bits of equipment in a nuclear reactor, ensuring the precise movement of the control rods which control the reactor’s power, ensuring its safe operation. According to CEZ "each drive is a unique electromechanical linear motor, almost eight metres long and weighing 450 kg, capable of safely controlling the nuclear reactor in all operating modes".

Czech Minister of Industry and Trade Karel Havlíček said: "Small modular reactors are a technological opportunity for our companies with global reach. The contracts that Škoda JS has already concluded with Rolls-Royce SMR are clear proof of this. Small modular reactors will not only strengthen the energy security and self-sufficiency of our country, but will also create new jobs and create opportunities for follow-up investments."

The first of Rolls-Royce SMR's 470 MWe small modular reactors is due to be built in North Wales in the UK, with the first in the Czech Republic to be built at Temelín, with an expected operational date "in the second half of the 2030s" and with five or six more units to follow across three sites.

Rolls-Royce SMR CEO Chris Cholerton said: "Škoda JS has proven that it is one of the few companies in Europe capable of providing one of the most important components of our power plant … our cooperation shows the clear benefits that this project brings to industrial companies."

Daniel Beneš, Chairman and CEO of ČEZ, said: "A global supply chain for small modular reactors is now being formed, and it is essential for our industrial companies to act quickly and now. This opportunity is unique. If they manage to get involved in this chain right from the start, they can win attractive contracts for the next decades. Škoda JS now faces the task of developing a prototype directly for small modular reactors so that it can subsequently supply them to Rolls-Royce SMR all over the world."

Background

The Rolls-Royce SMR is a 470 MWe design based on a small pressurised water reactor. It will provide consistent baseload generation for at least 60 years. Ninety percent of the SMR - measuring about 16 metres by 4 metres - will be built in factory conditions, limiting activity on-site primarily to assembly of pre-fabricated, pre-tested, modules which significantly reduces project risk and has the potential to drastically shorten build schedules.

In October 2024, Rolls-Royce SMR was selected by ČEZ to deploy up to 3 GW of electricity in the Czech Republic, and ČEZ took a 20% stake in Rolls-Royce SMR. The plan is for the first SMR to be deployed in the area of the Temelín site (which already has two gigawatt-scale VVER-1000 units), with further projects being developed for coal-fired power plant sites, including Tušimice.

In June 2025, Rolls-Royce SMR was selected as the UK government's preferred technology for the country's first SMR project. In November, the UK government announced that Wylfa on the island of Anglesey, North Wales, would be the site to host the three Rolls-Royce SMR units. It said the site - where a Magnox plant is being decommissioned - could potentially host up to eight SMRs. A final investment decision is expected to be taken in 2029.

Škoda JS has long experience in the construction and servicing of nuclear power plants, including manufacturing 21 VVER-440 reactors and three VVER-1000 reactors, as well as supplying engineering, equipment and servicing for nuclear power plants, research reactors and spent nuclear fuel storage facilities in Central and Eastern Europe, Scandinavia, France, Germany, the USA, Austria, Finland, Belgium, the UK, China and Armenia. 

GE Vernova, Hitachi, SGE and Samsung C&T sign BWRX-300s MoU


An agreement to work together to identify and develop market opportunities for the deployment of BWRX-300 small modular reactors in Europe was signed on the sidelines of the United Nations General Assembly in New York.
 
The signing took place during the Atlantic Council Nuclear Energy Policy Summit (Image: SGE)

The signatories of the memorandum of understanding - Poland's SGE, the US's GE Vernova, Japan's Hitachi and South Korea's Samsung C&T - will establish "a framework for cooperation on market development and commercial opportunities" for the deployment of the BWRX-300 small modular reactor (SMR).

GE Vernova Hitachi Nuclear Energy, a joint venture between GE Vernova and Hitachi, is the designer of the BWRX-300. Samsung Construction and Trading Corporation (Samsung C&T) has considerable experience in major nuclear and energy infrastructure projects. SGE is already developing projects for a fleet of BWRX-300 reactors in Europe, notably in Poland and the UK.

The official announcement of the MOU signing said it was "linked to the memorandum of cooperation for SMR deployment in third countries signed on the margins of this year's NATO summit by United States Secretary of State Marco Rubio, Japan Foreign Minister Motegi Toshimitsu, and Republic of Korea Foreign Minister Cho Hyun".

It said the US Department of State saw it as "a concrete industry effort to advance BWRX-300 deployment across Europe and deepen government-industry cooperation on global energy security".

In quotes

Roger Martella, GE Vernova's Chief Corporate Officer and Chief Sustainability Officer, said: "GE Vernova has a long-standing history and presence across the European continent. This collaboration brings together complementary capabilities to help advance BWRX-300 deployment across multiple markets and build on the momentum already behind the technology."

Yasunori Inada, CEO of Nuclear Energy Business Unit, Hitachi, said: "This collaboration brings together the strengths and expertise of each partner, and Hitachi will contribute to exploring the deployment of the BWRX-300 in Europe by drawing on the technological capabilities cultivated through our nuclear business and on our collaboration with qualified Japanese suppliers."

Jung Wook Kim, Executive Vice President and Head of Global Business Unit and Global Operation, Samsung C&T, said: "Samsung C&T is honoured to open a new chapter in Europe's SMR business together with GE Vernova, Hitachi and SGE. Building on Samsung C&T's proven EPC capabilities, we will fully leverage the synergy created by this four-way partnership to strengthen Europe's energy security and contribute to the realisation of carbon neutrality."

Michał Sołowow, founder of SGE, said: "Europe and the UK need a scalable commercial model for new nuclear, built on proven technology, established supply chains and world-class delivery partners. By combining GE Vernova Hitachi's BWRX-300 technology, Hitachi's industrial capabilities and Samsung C&T's global construction expertise, SGE is creating a platform to deploy standardised nuclear fleets across multiple markets."

Background

The BWRX-300 is a 300 MWe water-cooled, natural circulation SMR with passive safety systems that leverages the design and licensing basis of GVH's US Nuclear Regulatory Commission-certified ESBWR boiling water reactor design and its existing, licensed GNF2 fuel design, a unique combination that GVH says positions it to deliver an "innovative, carbon-free baseload power generation source" this decade.

The first BWRX-300 is under construction at Ontario Power Generation's Darlington site in Canada, with completion expected by the end of the decade.

SGE has a number of potential projects under way across Europe - including in Poland, where a decision in principle has been issued for 26 BWRX-300 SMRs, and in the UK  where a proposal for a fleet of 14 of the SMRs across three sites is being considered under the UK’s Advanced Nuclear Framework programme.

Read more: SGE confident of UK SMR fleet prospects

China's giant crane for nuclear power plant construction


China General Nuclear says the 250,000-ton-metre lifting torque ring-rail crane rolled off the production line last month to support the construction of Hualong One 2.0 nuclear power plants.
 
(Image: CGN)

The equipment uses a combination of a 137-metre and a 66-metre ultra-long boom, with a maximum height of 207 metres. According to the developers, under large-radius operating conditions in nuclear power plants, its lifting capacity is about 50% higher than that of similar foreign products, and it can meet the relevant hoisting operation requirements at a single station and under a single operating condition.

In terms of operation, the equipment adopts a fully electric drive mode and can be directly connected to 10kV industrial mains power, featuring zero emissions and low noise. According to project calculations, the application of this equipment is expected to shorten the construction period of nuclear power projects by 15%, reduce operating costs to about one-quarter of traditional oil-fired equipment, and decrease site costs and logistics costs by 20% and 30%, respectively.

In terms of safety control, the crane is equipped with digital systems such as intelligent anti-collision, 360-degree surround view, remote fault diagnosis, cable tangling detection, facial recognition, and work behaviour recognition to enhance risk identification and protection capabilities during on-site hoisting.

The crane - jointly developed by Sany Heavy Machinery and China Energy Engineering Guangdong Thermal Power Special Equipment Co Ltd - was produced at Sany's Huzhou Industrial Park in Zhejiang.

This crane was developed to meet the construction needs of the Hualong One 2.0 nuclear power plant's "one machine, two islands" system - this is where one ring-rail crane is positioned between two nuclear islands, allowing for the lifting of all modules and main equipment of both units with a single positioning and boom length.

"This marks a key breakthrough in the localisation of ultra-large tonnage nuclear power plant lifting equipment in China," China General Nuclear (CGN) said. It added that it "represents the culmination of seven years of technological research, achieving breakthroughs in structural design, manufacturing processes, and assembly control".

Hualong One 2.0

On 31 July, the construction of three pairs of Hualong One (HPR1000) reactors at the Jinqimen, Taipingling and Zhuanghe sites, as well as two Guohe One (CAP1400) reactors at the Laiyang site was approved by the State Council. The Phase II units (3 and 4) of China National Nuclear Corporation's Jinqimen plant in Zhejiang Province and the Phase III units (5 and 6) of CGN's Taipingling plant in Guangdong Province have been designated as demonstration projects of the Hualong One 2.0.

The Hualong One 2.0 is described as "an advanced pressurised water reactor nuclear power technology combining third-generation and advanced technologies, developed through independent innovation and overall collaboration, based on feedback from the construction and operation experience of Hualong One". So far, 10 Hualong One units are commercially operational both domestically and internationally, with another 37 units approved for construction.

CGN said the new crane "will be used at Taipingling Phase III and subsequent Hualong One 2.0 projects".

Framatome secures first contract for higher enriched fuel


Framatome announced it has signed a commercial contract to deliver the world's first nuclear fuel reload with uranium-235 enrichment above the industry standard of 5%, to an operating nuclear reactor in the USA.
 
(Image: Framatome)

Under the agreement - and as part of its Advanced Fuel Management (AFM) programme - Framatome will supply a series of higher enriched fuel reloads using AFM technology, beginning with delivery in early 2028. These reloads will support the long term deployment of AFM fuel for the reactor, with options for additional future reloads included in the contract. The company did not reveal the name of the reactor where the fuel will be deployed.

Uranium-235 is the main fissile isotope of uranium and occurs at a concentration of about 0.7% in natural uranium. Standard fuel used in today's operating light water reactors uses low-enriched uranium (LEU), with enrichment levels up to about 4.8% U-235. But higher-enriched fuel containing up to 10% U-235 - also known as LEU+ - can potentially offer improved nuclear fuel cycle economics for currently operating reactors.

AFM is a globally integrated Framatome programme designed to deliver fuel with higher enrichment and burnup limits. The company says enriching uranium oxide past the traditional 5% threshold, combined with its latest technology, allows reactor operators to maximise their energy production. The increases in enrichment and burnup support improved economic performance by extracting more cycle energy from the reactor core and reducing operations and maintenance costs. The AFM programme encompasses all aspects of the nuclear fuel cycle including enrichment services, regulatory licensing and fuel fabrication infrastructure.

This advanced fuel solution has been developed by Framatome and will be manufactured at its facility in Richland, Washington. The facility has undergone upgrades and modifications over the past four years to support implementation of this innovative technology, and received US Nuclear Regulatory Commission (NRC) approval for the fabrication of fuel with increased uranium enrichments and to manufacture fuel with higher burnup limits.

Framatome said the fuel supply agreement "represents a major advancement for the global nuclear industry, enabling the first reactor in operation to extend its cycle lengths and burnup rates through this advanced technology. The contract establishes a new benchmark for innovation, performance and industry collaboration."

It said the agreement builds on ongoing deliveries of standard GAIA fuel, Framatome's most advanced pressurised water reactor fuel design, which serves as the foundation for these AFM enabled reloads. "With AFM, the US customer will extend its fuel cycle length from 18 to 24 months, reducing outage frequency and enhancing operational efficiency and power generation," it said.

"This contract reflects the strength of our long standing relationship with our customer and our shared commitment to advancing nuclear fuel technology," said Lionel Gaiffe, Framatome's Senior Executive Vice President, Fuel Business Unit. "Collaborating on this milestone project underscores the trust our customers place in Framatome's expertise and the innovative capabilities of our Advanced Fuel Management technology."

Framatome submitted a licence amendment request to the NRC in September 2024, seeking permission for the plant to handle uranium enriched up to 10%, up from the current 6.5% so that it can expand domestic capacity for advanced reactor fuels and support the acceleration of deployment of next-generation reactors. The NRC approved Framatome's request in July this year.

In October 2023, Southern Nuclear has announced it has received authorisation from the NRC to use Westinghouse advanced nuclear fuel enriched up to 6% uranium-235 at Vogtle unit 2. This marked the first time a US commercial reactor had been authorised to use fuel with over 5% enrichment.

Bechtel steps away from TerraPower project



TerraPower says it intends to rebid the engineering, procurement and construction contract for the project to build the first-of-a-kind Natrium reactor in Kemmerer, Wyoming, following the two companies' decision to move forward separately.
 
Excavation work at the Kemmerer site (Image: X/TerraPower)

TerraPower named Bechtel as its design, licensing, procurement and construction partner in a federal grant application to build a demonstration Natrium plant as long ago as 2020. A ground-breaking ceremony for the 345 MWe sodium-cooled fast reactor and its accompanying molten salt-based energy storage system was held at the Wyoming site in June 2024, with TerraPower announcing the official start of construction in April this year.

EPC (engineering, procurement and construction) and project management specialist Bechtel said it will remain on site to complete the plant's Sodium Test & Fill Facility and support an orderly transition.

"Bechtel has supported TerraPower’s Natrium project through several significant milestones, including securing the NRC construction permit, the first ever issued for a commercial non-lightwater reactor in the United States; completing the exterior enclosure of the Sodium Test & Fill Facility; placing major procurements; and beginning foundational work for Kemmerer Unit 1," Bechtel spokeswoman Molly Edwards told World Nuclear News.

"This work was performed under an earlier phase of the contract, prior to full EPC scope. As we considered the next phase of the project, Bechtel and TerraPower decided to move forward separately."

In late August, TerraPower announced it had selected 12 equipment vendors to receive contracts to support the construction of the Natrium plant and completion of the sodium facility, as it builds a supply chain to bring an envisaged fleet of Natrium reactors online in the coming decade. The company said it does not expect the latest development to affect the construction timeline.

"Bechtel will remain on site to complete the Sodium Test and Fill Facility, and we look forward to continuing our work with them on that first-of-a-kind facility," a TerraPower spokesperson told World Nuclear News. "Construction in Kemmerer will maintain its current schedule with the exemplary subcontractor teams and EPC support services from commercial-grade firms that have been working on site. TerraPower is managing this transition to protect the overall construction schedule for Kemmerer Unit 1 and will rebid the EPC contract."

News of the split emerged after Reston, Virginia-headquartered Bechtel filed a Worker Adjustment and Retraining Notification (WARN) Act Notification with the State of Virginia, in which it said it would be scaling down its operations supporting the project and reducing staffing levels as work is completed, with around 200 positions and employees affected. The reductions are expected to commence "on or about" 16 November, but Bechtel told the State it is "actively collaborating with our team to identify the next assignments for these employees".

"Our people will move to other nuclear projects under way across the company, where demand for these skills continues to grow. While the WARN notices are a legal requirement, we do not expect any actual layoffs," Edwards said.

France prepares to start dismantling first UNGG reactor

EDF subsidiary Cyclife announced the Chinon A nuclear power plant dismantling project has reached a major milestone with the validation of the contractual strategy for dismantling the Chinon A2 plant's heat exchangers.
 
Chinon A2 (Image: Cyclife)

Chinon A2 is one of six gas-cooled reactors (Uranium Naturel Graphite Gaz¸ or UNGG) at Bugey, Chinon and St Laurent-des-Eaux currently being decommissioned by EDF in France. The six UNGG reactors entered service between 1963 and 1972. With the exception of Chinon A1, which closed in 1973, all operated for more than 20 years. Chinon A2 is the lead site for EDF's immediate dismantling strategy for its UNGG fleet. The company's objective is to dismantle the facilities in the shortest timeframe possible.

With the validation of the contractual strategy for dismantling Chinon A2's heat exchangers, the project "has reached a decisive milestone", Cyclife said. "After more than three and a half years of studies conducted jointly by the teams from EDF's Deconstruction and Waste Projects Department (DP2D) and Cyclife Engineering, this milestone paves the way for the launch of the first operational phase of the dismantling of the world's first UNGG reactor."

Subject to the entry into force of the dismantling decree, this first operation will consist of dismantling in series the equipment present in the four heat exchanger rooms of Chinon A2. The heat exchangers made it possible to transfer the heat from the carbon dioxide, heated in the core of the reactor, to the water of the secondary circuit which then turned into steam.


Teams from EDF and Cyclife Engineering visting the heat exchangers of Chinon A2 (Image: Cyclife)

Cyclife said the dismantling operation will "fully benefit" from the lessons learned during the dismantling of the Chinon A3 reactor heat exchangers.

The start of operations is planned for mid-2028, following the public inquiry into the UNGG reactor dismantling strategy, scheduled for 2027. The project is expected to take six years.

"This is an essential step forward in preparing for an exceptional industrial project, which is set to serve as a benchmark for EDF's entire UNGG programme," said Stéphanie Proust, EDF Chinon A-AMI project manager.

In December 2019, EDF and Veolia established the Graphitech joint venture for the decommissioning of reactors that use graphite technology. Graphitech's first objective was to provide EDF with an optimised scenario for decommissioning the Chinon A2 reactor in 2028 and to offer a testing programme to evaluate the technological solutions needed to complete the project. This programme began in 2022 with a development and qualification phase using full-scale models to prepare the remote-operation tools to be used in decommissioning the Chinon reactor.

Graphitech has produced an outline decommissioning methodology for the five remaining UNGG reactors: where possible, transposition of the Chinon A2 methodology to the other reactors; and where not possible, identification of additional engineering work required.

Graphitech will seek contracts for assisting in the dismantling of gas-cooled reactors in France, Italy, Japan, Lithuania, Spain and the UK.


 

Cameco may turn $2.1B into $24B with Westinghouse listing


An AP1000 reactor under construction. Credit: Westinghouse Electric.

Cameco’s (TSX: CCO)(NYSE: CCJ) $2.1-billion investment in Westinghouse Electric three years ago could soon be valued a dozen times that as the nuclear reactor maker prepares for a US stock market listing.

Westinghouse is seeking a valuation above $50 billion and could publicly file for an initial public offering as soon as October, Bloomberg News reported Friday. Cameco owns 49% of the company, implying a value above $24.5 billion for its holding before accounting for shares sold in the offering or potential dilution.

“A potential IPO comes a lot sooner than we previously envisioned,” Scotiabank analyst Orest Wowkodaw said after Cameco’s second-quarter results last month. “We have increased our medium- to long-term Westinghouse estimates.”

The proposed valuation would mark a dramatic re-rating even from analysts’ estimates last month. Desjardins valued Cameco’s share of Westinghouse at C$15.1 billion, while Scotiabank valued the entire reactor company at C$24.6 billion, putting Cameco’s 49% interest at about C$12 billion.

Cameco and Brookfield Renewable Partners (TSX: BEP.UN; NYSE: BEP), along with institutional investors, completed the acquisition in November 2023. The deal valued Westinghouse at $8.2 billion including debt after closing adjustments. Cameco paid $2.1 billion for its 49% interest, using $1.5 billion in cash and $600 million in term loans.

Reactor pipeline

The potential jump in value comes as Westinghouse builds a much larger pipeline for new reactor work than when Cameco bought into the company.

Westinghouse has identified opportunities for as many as 91 AP1000 reactors over more than 20 years, Cameco said in July. The pipeline includes as many as 20 US reactors under government programs, two units at the stalled V.C. Summer project in South Carolina, three in Poland, two each in Bulgaria and Ukraine and dozens of earlier-stage prospects.

Cameco also raised its estimate of the share of construction spending that could flow to Westinghouse on new AP1000 projects to 40% to 45%. Scotiabank estimated that could translate into $8 billion to $11 billion of Westinghouse revenue over roughly a decade for a two-reactor project and $1.6 billion to $2.2 billion of earnings before interest, taxes, depreciation and amortization.

The higher revenue share was a positive for Westinghouse over the medium term, BMO analyst Alexander Pearce said in August. Firm commitments for new AP1000 reactors remained more important in the near term than the timing of an IPO, he added.

The distinction matters because the 91 reactors represent a pipeline of opportunities rather than firm orders. A $50-billion-plus valuation would partly depend on investors assigning value today to projects that could stretch well into the 2030s.

Washington is trying to shorten that timeline. The U.S. Department of Energy in June made a conditional commitment for as much as $17.5 billion in financing for long-lead equipment for up to 10 AP1000 reactors. Westinghouse would work with utilities and energy companies on as many as five two-reactor projects, with the program intended to bring construction and commercial operation forward by as much as three years.

Government interest

The $24.5-billion figure doesn’t mean Cameco could simply pocket that amount in an IPO.

Westinghouse hasn’t disclosed how many shares would be offered, whether Cameco or Brookfield would sell existing holdings or how much new stock might be issued. It submitted a confidential draft filing to U.S. securities regulators July 31.

A separate agreement with Washington could also dilute the existing owners under certain conditions.

Cameco and Brookfield agreed last year on a strategic partnership under which the U.S. government would receive a participation interest if it makes a final investment decision and enters definitive agreements for at least $80 billion of new Westinghouse reactor construction in the U.S. before January 2029. Once vested, the interest would entitle Washington to 20% of Westinghouse cash distributions above $17.5 billion.

If the interest has vested and an IPO values Westinghouse at $30 billion or more, the government could require a listing. The interest would then be converted into a five-year warrant to buy shares equivalent to 20% of the public value above $17.5 billion.

Desjardins was more cautious than Scotiabank on timing, saying in July that the IPO window remained broad and could extend as far as 2029.

Cash returns

A listing could also sharpen questions over how Cameco uses rising cash flow.

Scotiabank forecasts Cameco’s free cash flow rising to C$1.3 billion in 2028 from about C$200 million this year. With the miner already holding a small net cash position, Wowkodaw said the bank anticipates “further improvements to dividends ahead.”

Cameco raised its annual dividend to 24¢ a share from 16¢ last year. The company’s strong balance sheet, improving free cash flow and limited internal need for capital should make shareholder returns an increasingly frequent discussion, Scotiabank said.

The uranium side of Cameco’s business could add another tailwind. Nuclear demand is beginning to outrun new mine supply, with Benchmark Mineral Intelligence forecasting a uranium shortfall equal to 18% of demand by 2027. Global reactor requirements could rise from about 64,500 tonnes uranium annually to as much as 143,900 tonnes by 2050, according to the OECD Nuclear Energy Agency and the International Atomic Energy Agency.

Much of the recent supply increase has come from restarting or expanding existing operations rather than developing new mines, which typically take 15 to 20 years from exploration through production.

Cameco shares rose 1.5% to C$130.02 in Toronto on Monday morning, valuing the Saskatoon-based company at about C$56.6 billion ($40.3 billion).

China Will Dominate Global Nuclear Energy Through 2035, Analyst Says


  • China added 34 gigawatts of nuclear capacity over the last decade while the US added just one plant, Georgia's long-delayed Plant Vogtle.

  • Beijing signed a new deal with the IAEA to share its expertise on high-temperature gas-cooled reactors, a rare opening from a historically secretive sector.

  • Analysts expect China to overtake the US as the world's top nuclear energy producer within the next decade, with AI's power demand adding urgency.

The future of nuclear energy is in China’s hands. While the United States remains the world’s largest producer of nuclear energy, China’s sector is growing at such a rapid clip that it is expected to overtake France as well as the United States to become the world’s leading nuclear power producer within the next decade. In addition to this rapid expansion of traditional nuclear power capacity, Beijing has also quickly become the global leader in a broad and diverse range of advanced nuclear power technologies.

“By a wide margin, China will have the world’s most dynamic and significant nuclear industry through 2035,” Damien Ma, energy lead analyst for Gavekal Technologies, wrote in a recent report, as quoted by the South China Morning Post. “Construction efficiencies mean China can build a new plant in about six years, compared with more than a decade for the latest Vogtle reactors in the US,” Ma went on to say.

The United States has added just one nuclear plant in the last decade, Georgia’s long-delayed, over-budget, and controversial Plant Vogtle. Over the same time, China added a staggering 34 gigawatts of capacity. And, Beijing’s latest five year plan shows that China has no intentions of slowing down

“With innovation and security as its leading themes, the latest FYP illuminates how nuclear energy underpins multiple strategic priorities for China in the context of not only energy security but also technological innovation and global engagement,” the Center for Strategic and International Studies (CSIS), a nonprofit policy research organization and bipartisan think tank recently reported.

The Chinese government has been eager to build up the most advanced nuclear power sector in the world as a part of Beijing’s broader bid to establish lasting dominance in the global energy sector by becoming the world’s first electrostate. Building the world’s most advanced nuclear energy fleet is a part of this goal, and includes innovative approaches to how nuclear reactors are designed, deployed, and fueled.

“From the world’s first in-reactor thorium breeding confirmation to a dual PWR-HTGR plant and commercial supercritical CO? generation, China is assembling a vertically integrated advanced nuclear ecosystem,” Power Magazine reported in March of this year. “The breadth of activity signals a coordinated push toward fuel independence and industrial deployment.”

The United States has also been bullish about building up and advancing its ageing nuclear sector. The Trump administration has publicized its intentions to “produce lasting American dominance in the global nuclear energy market” and is likewise bullish on developing next-gen nuclear reactors and nuclear fusion technology on its own home turf. Similarly to China, the United States is also fighting to free itself from international nuclear fuel supply chains, and is attempting to do so by building up domestic uranium extraction and enrichment capacities. But the United States’ advanced nuclear sector is lagging far behind China when it comes to spending and technological knowhow.

But while China is historically quite secretive about its technological advancements and cutting-edge energy sector developments, this week Beijing made a surprising move to share its expertise with the rest of the world. This week, China signed a deal with the International Atomic Energy Agency (IAEA) to more freely share its knowledge on high-temperature gas-cooled reactors (HTGRs) with other countries. HGTRs are a form of advanced fourth-generation reactor that is capable of producing nuclear energy at extremely high temperatures, opening avenues for use in a variety of industrial applications.

The new deal “covers cooperation in HTGR research and development, reactor design, construction, commissioning and operation,” as well as the exchange of “information on supply chains and personnel training,” according to a recent Interesting Engineering report. “The deal could give other countries greater access to China’s engineering experience with HTGRs as interest grows in nuclear systems that can provide both electricity and high-temperature industrial heat.”

This development is a promising starting point for a more cooperative approach to what is indeed a borderless problem – climate change and the growing problem of artificial intelligence’s energy demand growth. Advanced nuclear energy systems could provide a critical lifeline by offering clean energy 24 hours a day, seven days a week.

By Haley Zaremba for Oilprice.com

Nuclear Safety Brings America Into Russia's Uzbek Energy Project

  • Russia remains central to Uzbekistan’s first nuclear power plant, which is planned to include two large reactors and two small modular reactors.

  • Uzbekistan has signed a new nuclear-safety agreement with the United States, covering licensing, inspections, regulations, emergency preparedness, and specialist training.

  • Tashkent is bringing more foreign expertise into the project, although official statements stop short of saying Russia or Rosatom is being replaced.

Uzbekistan still wants Russia to build its first nuclear plant, but when it comes to safety, Tashkent is turning to the United States.

Meeting on the sidelines of the recent general conference session of the International Atomic Energy Agency in Vienna, US and Uzbek officials signed a memorandum of understanding covering monitoring, safe operations and disaster response. The memo additionally contains provisions to enable US technical assistance to improve regulatory guidelines and training programs.  

“The memorandum will expand the exchange of information and experience between the regulatory authorities of the two countries and contribute to ensuring safety in the peaceful use of nuclear energy,” according to a statement issued by Uzbekistan’s Committee on Industrial, Radiation and Nuclear Safety. 

Uzbek nuclear officials also held talks with their Russian counterparts amid the IAEA gathering. Curiously, no memos or agreements resulted from the meeting. An Uzbek statement noted that the ongoing bilateral dialogue enables “the advancement of statutory inspection methodologies, and the rigorous enforcement of safety requirements across all stages of NPP design, construction, and operation.” 

The US-Uzbek memo offers fresh evidence that Uzbekistan is losing faith in the Russian state-controlled entity Rosatom to fulfill its obligations to build the Central Asian state’s first nuclear cluster, comprising two large-scale reactors and two small modular types. Construction has faced delays amid speculation about Rosatom’s financial health.

In early September, Uzbek President Shavkat Mirziyoyev announced the formation of an international consortium to assume oversight of construction “to improve project management [and] strengthen technical oversight.”

By Eurasianet

Google Backs Nuclear Expansion at Georgia Power Plants

Georgia Power and Google have struck an agreement aimed at expanding the output of two of Georgia’s nuclear power stations as technology companies seek growing volumes of reliable, low-carbon electricity for data centers.

Under the proposed arrangement, Google would subscribe to power associated with uprates at the Vogtle and Hatch nuclear plants. Georgia Power estimates the upgrades could add approximately 96 megawatts of generating capacity to the state’s electric grid.

The agreement still requires approval from the Georgia Public Service Commission.

Georgia Power said Google’s participation is expected to produce around $900 million in projected benefits for customers over the operating lives of the nuclear units. The structure is also intended to prevent customers that are not participating in the program from bearing additional costs associated with the upgrades.

Google would participate through a newly proposed Nuclear Uprate tariff and receive zero-emission credits representing the carbon-free attributes of electricity generated by the incremental nuclear capacity.

The utility has also asked regulators to approve an extended power uprate for Units 1 and 2 at Plant Hatch. Uprates for Vogtle Units 1 and 2 were previously approved as part of Georgia Power’s 2025 Integrated Resource Plan.

Nuclear uprates increase the output of existing reactors through equipment modifications, including upgrades to turbines, pumps, motors and cooling systems. The approach can add generation without requiring construction of an entirely new reactor.

The deal highlights the widening role of large technology companies in financing new electricity supply as artificial intelligence and data-center expansion pushes U.S. power demand higher. Nuclear energy has become particularly attractive to hyperscale operators because it can provide around-the-clock electricity while helping companies meet emissions targets.

For Georgia Power, the arrangement also offers a way to extract additional capacity from its existing nuclear fleet after the completion of Vogtle Units 3 and 4 transformed the site into the largest nuclear power station in the United States.

Nuclear power supplied more than one-quarter of the electricity generated in Georgia last year, according to Georgia Power.

The agreement follows a broader trend of technology companies seeking direct or indirect access to nuclear generation, including deals involving existing reactors, planned reactor restarts and advanced nuclear projects.

Google said the Georgia arrangement could demonstrate how growing electricity demand from digital infrastructure can help finance additional output from the existing U.S. nuclear fleet rather than relying exclusively on new generating facilities.

Georgia Power serves about 2.8 million customers and is the largest electric utility subsidiary of Southern Company.

By Charles Kennedy for Oilprice.com

Why Utility Profits Could Be the Next Target

  • Rising inflation and Treasury yields are pushing utility costs higher, but regulators could offset some of the pressure by cutting utilities’ allowed returns on equity.

  • Utilities may currently be earning above their theoretical cost of equity, with returns around 10% versus an estimated 7–8%, potentially adding roughly 5% to typical electricity bills.

  • Lower allowed returns could hit utility stocks hard, with each percentage-point ROE cut potentially reducing earnings by about 10% and contributing to a 20–30% decline in sector valuation multiples.

Electricity prices are heading up. Utility operating costs, raw materials, and fuel (obviously), are all heading up and no sign of stopping. Now higher capital costs courtesy of the Fed can also be expected. All we can say is that it seems like inflation is back, baby.

The Fed recently raised its discount rate and Treasury bond yields hit 5%—their highest level in almost two decades. A utility’s cost of capital consists of two parts: 1) the return earned on a risk-free investment (like US Treasury bonds) plus 2) an extra amount added to compensate for the additional risk assumed by equity holders, who take a subordinate role in the capital structure. Does this imply cost of capital has to rise with these costs inevitably passed along to consumers, leading to still higher rates? Well we do know that state public utility regulators set a return based on cost of capital. However, as we pointed out above, there are two parts to the cost of capital determination. The risk-free interest rate, like Treasury’s, which is clearly rising, and the equity risk premium. It is the latter figure which allows regulators to have some flexibility. The equity risk premiums allowed by state regulators have ranged broadly over the postwar years from 300-700 basis points over the risk-free rate. Simply lowering equity risk premiums (towards the lower end of their traditional range) would allow regulators to provide consumers some relief. Also, the logic here is kind of obvious. Receiving a generous equity risk premium in return for financing a low-risk, monopoly business is, as they say, nice work if you can get it.

At present, the risk-free return (10-year Treasury) yields about 5%. According to the latest numbers out from NYU, the equity risk premium for the average stock is about 6%.  Over the past two decades, that premium has ranged from about 5% to 7%. In other words, equity investors today buying an average stock hope to earn about 11%  (5% risk-free yield + 6% equity risk premium) per year. However, utility and power stocks are not average. They are about half as risky as the overall equity market (from a beta perspective). Consequently, investors should be satisfied with an equity risk premium of 2-3%, half that of the broader equity market. (Half the risk equals half the equity premium portion of the return.) Therefore, according to financial theory, utility investors should expect to earn maybe 7-8% per year. That is the cost of their equity capital. In the past two years, the member companies of the Edison Electric Institute (most big investor-owned utilities) earned about 10% on their equity. In other words, they may be earning 2-3 percentage points over their cost of equity capital, which adds roughly 5% to a typical electric bill. From the perspective of a Progressive political agenda, this should be regarded as low-hanging fruit.

Okay, those cost of capital formulas are imprecise. But as a double-check, calculate the industry’s market/book ratio, always considered as an indicator of whether the underlying stock was earning its cost of equity capital. Last we looked, the number was in the 180-200% range, indicating earnings well over cost of capital. But why quibble? High means high, and leave the rest of the debate to expert witnesses.

At this point, you would be justified to counter: “What’s the big deal? Electric companies have been over-earning their implied equity return for decades. What could possibly jolt the regulators out of their lethargy? For that question, we provide a one-word answer: affordability. Regulators, viewing higher costs, pressure from hyperscalers, expecting no help from a federal energy policy that is both visionless and chaotic, and suddenly under attack from formerly complacent politicians, now have to find meaningful financial offsets to rapidly rising costs they now face from all sides. There is no easier number to cut than return on equity, especially now. Simple as that. Admittedly, this type of cut won’t amount to much in the big picture, especially if fuel costs keep going up. But the impact will be felt most keenly by current utility shareholders. Every one percentage point off return on equity cuts earnings for common stock by 10%. That’s a lot. This suggests to us the potential for a broader, downward revaluation of utility shares.

Let’s reexamine that last point. First, recognize that a re-ignition of inflation is a really big negative for utilities. Every cost increases at the same time, and the cost of money increases too. Then the regulators get mean. This by itself should cause a rerating of the group. But the implied rerating looks large (maybe a 20-30% reduction in the price /earnings ratios of utility stocks). But what is it different enough this time to lead to such a market reaction?  Three things stuck out: 1) equity percentages of cap structure are high, 2) equity risk premiums are also high, 3) the industry learned to do very well operating in a low-growth environment with compliant regulators. (Translated into simpler terms, the utilities had too much expensive equity in their capital structures, earned too much on that excessive equity, and got away with it because regulators felt no pressure to do anything to rein in capital costs because they didn’t have to raise prices.) An ignition of inflation forces all three of these favorable trends to go in reverse. That’s the source of a possible group rerating (which is a fancy way of saying that the market will pay less for a dollar of earnings). But what happens when regulators propose to cut allowed return on equity and the utilities pull back on investment in the rate base, citing the financial requirements of their shareholders? That’s when things get interesting.

By Leonard Hyman and William Tilles for Oilprice.com