Richard Blackwell
January 7, 2008

 A beleaguered Atomic Energy of Canada Ltd. (AECL) and a "Team Candu" consortium of Canadian engineering and manufacturing companies are looking with hope to Britain for new nuclear contracts.

The British government is expected to defy environmentalists in approving a new generation of power stations to replace the country’s aging reactors. And companies that supply the nuclear industry in Canada could expect significant spinoff benefits, were AECL to land a British contract.

"It would obviously be a good thing for the Canadian industry," which is already busy with nuclear refurbishment projects, said Murray Elston, president and chief executive of the Canadian Nuclear Association. At the same time, the expected vote of confidence from the British government will help the nuclear industry over all, he said.

Nuclear critics, however, say the chances of AECL getting the British contract are slim. Britain was not keen on Candu heavy-water technology in the past and wouldn’t likely go for it this time, said Norm Rubin, director of nuclear research at Toronto-based Energy Probe.

The British government has said it wants private utilities to develop any new nuclear plants, and Mr. Rubin said he’s not convinced there is any way new nuclear plants can be built without heavy government involvement or subsidies. Nuclear power just isn’t competitive when costs and financial risks are taken into account, he said.