SNC-LAVALIN | SPECIAL REPORT


have a much bigger impact as a society by what we do as engineers. We have current solutions that could significantly reduce carbon footprints. And, we will probably improve what we’re doing from a societal perspective whether it’s in the energy production side of things, which we have good experience in… but also from the infrastructure that consumes it, whether it’s the built cities; the transportation networks we have; and the industry in areas of all of these different sectors, some of which we can really focus on and make a difference,” he says. It is this holistic view that SNC-Lavalin captured in


its March 2021 report, Engineering for Net Zero, which maps out several pathways to create a blueprint for the company’s own contributions across geographies and sectors. In some geographies, nuclear is identified as key, in other geographies, other solutions dominate. “Even as a nuclear company, we know this is not one technology,” says Taylor. “There is no single arrow in the quiver that can deal with this issue. This is not a dialogue of nuclear versus renewables; it’s about how does nuclear enable renewables and maybe in future generations, maybe some other form of generation… we are looking over multiple generations.” In Canada, Taylor sees nuclear looming large in domestic


net zero goals. He sees an opportunity to expand nuclear’s reach beyond the current provinces where it’s operated. He suggests an opportunity to take nuclear beyond urban centres and large grids to heavy-emitting industry and large energy users like mining and steel manufacturing. “Nuclear in our view is what we need in Canada, and certainly in certain provinces… When you combine retiring (emitting) resources and a need to also double capacity, nuclear’s got to be in the mix. And our belief when we look at possible solutions… we are looking at SMRs (small modular reactors); we’re really excited about that.” Recognising this statement begs a question, he


rhetorically asks, “Why would a company with exclusive IP rights to build CANDUs be excited about SMRs?” There are a few reasons, Taylor says, and one of them is SMRs, due in large part to their lower capital cost and greater flexibility in use, are a more near-term opportunity than large-scale nuclear. They will allow the industry and all the critical infrastructure, including people, knowledge development and training, to continue in the near term. “You’ve got to keep the skillset up and that’s really important. If you have no work, it’s hard to have the skillset continue to develop or retain it. Fortunately, we have these massive refurbishment programmes, which brought a lot of capability back.” That capability is now a competitive advantage in


the global market, which can be used to strengthen the country’s export economy, as well, he says: “If we do this right, we are just years ahead of anybody else. With this first mover position, what Ontario will have is just a fantastic opportunity for further penetration to other parts of Canada and also, to export.” Taylor points to the CANDU units in six countries beyond Canada’s borders as an example of the company’s international nuclear track record. This is enhanced with SNC-Lavalin’s larger international nuclear and infrastructure presence. “Even with a non-CANDU technology, why can’t we be an international employer and bring the tremendous value whole-spectrum of what Canada, and Ontario, can do and take that overseas? I really believe we have the opportunity between the industry, the leadership of OPG [Ontario Power Generation] and Bruce Power, and the


support of our government, both provincially and federally, to be a player in different geographic parts of the world, where it makes sense for Canada to participate,” he says, adding: “We’ve got a market that needs technology; we’ve got a track record of safety and performance; I think it’s time again for Canada to take its position in the global marketplace. I would hate like anything for us to squander that opportunity.” Government has a crucial role to play, as well, says


Taylor. Many nuclear companies, globally, are nation-state enterprises, which “bring everything from government-to- government relations to government financing,” to the deal. He says getting aligned regionally, provincially and federally is critical. “We have very credible project execution and supply chain and technology, but we’ve got to compete at that (national) level. We’re competing against China, Russia, Korea and India; that’s who we’re talking about,” said Taylor. There, the stars of geopolitics could align for the industry. On June 26, G7 leaders pledged a multi-billion-dollar plan to finance needed infrastructure in developing countries to counter China’s Belt and Road project. Domestic financing can also play a role, such as the UK’s regulated asset based (RAB) financing model, which allows for cost recovery earlier. This could be a “different way to think about government investment,” Taylor says. And what of CANDU? While Taylor isn’t sure it is as near-


term an opportunity as SMRs in Canada, he believes, as carbon pricing and other factors come to bear, and with the CANDU track record, there is a global market. And, in a different timeframe, a domestic one. He reflects on Boeing, in the aerospace industry, as a company that identified new materials, manufacturing techniques and new ways of operating to reinvigorate its brand. SNC-Lavalin is looking at what it means to be competitive


in the traditional-scale reactor market, says Taylor. This includes how to reduce the overall cost of CANDU reactors with contemporary manufacturing construction techniques, materials, exclusion zone reductions, and other factors that increase ease of operation. With the existing non-enriched fuel feature and more size flexibility than some of the larger designs, along with Canada’s supply chain expertise, Taylor feels CANDU offers a unique value proposition. Regardless of whether it is SMRs or CANDU technology,


Taylor believes, SNC-Lavalin has the capacity to support Canada’s international goals, through leverage of its networks. “SNC-Lavalin is a global nuclear business. How do you take these really unique capabilities and bring the breadth of those capabilities to the countries that we focus on? We’ve had some great successes in bringing things to Canada and Canada to various geographies… how do we leverage that global footprint?” As Taylor departs, it is noteworthy that his successor


will be based outside Canada. There is opportunity in the US market, which is hopeful of its own renaissance. The US offers a large market for a Canadian supply chain ready to take its know-how and apply it globally. Recent US opinion polls suggest strengthening support for nuclear as an option to address climate change in most US jurisdictions. And, OPG and Tennessee Valley Authority (TVA) recently announced they will partner on new nuclear, opening the possibility of dual-country market opportunities. For Canada’s nuclear industry, seasoned by a lifetime of CANDU, a technology-neutral approach may help further the country’s global dreams. ■


www.neimagazine.com | July 2022 | 17


Above: Sandy Taylor, SNC-Lavalin’s Nuclear Sector president for the last eight years


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