Banff, Calgary (Platts)--26Sep2011/816 am EDT/1216 GMT

Jordan is due to announce a preferred bidder in October to construct the first nuclear power plant in the Middle Eastern country, a top official of Atomic Energy Canada Limited said.

"[Jordan Atomic Energy Commission] is in the process of opening the final three commercial bids and we feel our Enhanced Candu-6 [EC-6] reactor is a serious contender," AECL's CEO Hugh MacDiarmid said in an interview late Friday on the sidelines of the Global Business Forum in Banff, Calgary.

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AECL is one of the bidders, with the others being a team of Areva and Mitsubishi Heavy Industries and a joint venture of Atmea and Rosatoms Atomstroyexport.

AECL currently offers three designs of nuclear reactors -- Candu-6 and EC-6, both of which are 700-MW class, and the Advanced Candu reactor 1000, with a 1,200 MW capacity.

"We have a relationship with Jordan that dates back to 2008 and have worked with JAEC to conduct engineering and feasibility studies to start a nuclear program there, assist in infrastructure development and site selection and also train manpower," he said.

However, AECL's first focus will be on installing additional capacity at Darlington, Ontario, offering the EC-6 reactor, before it takes the product to global markets, he said.

"China and India will demand the drive for electricity and we need to increase our presence there," MacDiarmid said.

"...[W]e could also make a big contribution in the development of oil sands resources in Alberta," he added. "The nuclear industry and oil sands operators need to get together and find a solution on its application. I am convinced nuclear energy can play a very important role in the long-term exploitation of the heavy oil resource. Despite the massive reserves, coal will not be a long-term solution in Alberta due to carbon emissions."

POST-FUKUSHIMA CHALLENGES

There was still a market for Candu 6 reactors post-Fukushima, despite AECL incorporating more safety features in its EC-6 and ACR-1000 models, he said.

"In a way, the [earthquake and tsunami] has reinforced the Canadian design and we believe the world is now more ready for a natural uranium fuel cycle reactor," MacDiarmid said. "Some small modular reactors are under development, but it will still take another 10 to 15 years before they prove to be economic."

Addressing the conference earlier, MacDiarmid said energy, environment and economy will be three key factors driving the nuclear industry forward.

"This [nuclear] industry is controversial and needs to gain more social acceptance," he said. "The Fukushima incident will slow down the pace of building new nuclear capacity and also raise the bar for regulatory approvals.

"But, we hope the advancement of nuclear technology will take us to a level where cost of building new plants will be brought down and also less nuclear waste is generated," he added. "It will be a long path, but we will be there."

North America is unlikely to see any major new nuclear power projects over the short-to-medium term, with utility companies using natural gas and coal to generate power, MacDiarmid said.

--Ashok Dutta, newsdesk@platts.com

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