SNC-Lavalin inks deal with 2 Chinese firms to build Candu nuclear reactors

SNC-Lavalin has signed a deal with two Chinese companies on a joint venture that will see Canadian Candu reactor technology used to buildnuclear plants in China and possibly elsewhere.

The Montreal-based engineering company said in a release Thursday it will partner withChina National Nuclear Corp. andShanghai Electric Group Co. Ltd. to place two "design centres" one in Canada and another in China which will develop at least two nuclear power plants in China using the most advanced version of the Candureactor technology that SNC bought from the Canadiangovernment for $15 million in 2011.

"This is a game changer in the nuclear industry, and a great endorsement of our expertise and ...nuclear technology from the largest nuclear market in the world," SNC-Lavalin Power's president Sandy Taylor said in a release.

The Advanced Fuel Candu reactor (AFCR)will use recycled uranium fuel from existing reactors to producepower. EachAFCR can use thefuel offourlight-water reactors togenerate up to 6 million megawatt-hours ofelectricity without needing any new natural uranium fuel, SNC said. Roughly speaking, that's enough to power 4 million Chinese households every year.

The deal comes on the same day Ottawa announced a tentative agreement over two trade disputes between Canada and China, involving Canadian beef and canola.