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[cdn-nucl-l] " Nuclear power seen as boon to oil, gas "



http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=0e338
e17-cbad-43b4-ba92-4c2bd24c7d4a
Nuclear power seen as boon to oil, gas
Gina Teel, Calgary Herald, Wednesday, October 01, 2008

Nuclear power could help wean Alberta's oilsands from its natural gas habit
and give a boost to the electrical grid, but its true potential may best be
realized when it works in partnership with the oil and gas industry,
suggested the head of nuclear power giant Areva Canada Inc.

Speaking at the Energy Roundtable on Tuesday, Areva president Armand
Laferrere said he envisions the emergence of combined industrial projects,
where nuclear plants will sit next to hydrogen manufacturing plants.

The setup would allow operators to ship all or part of the power generated
by the reactor, as needed, to specific industrial customers "which will have
bought pre-allocated amounts of power," he said.

"Nuclear can provide power but you also need hydrogen for the purpose of
upgrading the bitumen from northern Alberta, so nuclear can provide both,"
Laferrere said.

In his pitch, Laferrere -- who earlier this year said Areva was in
discussions with several local players about building a nuclear generating
facility -- reiterated why nuclear should be part of the everyday fuel mix
that will feed Alberta's growing need for power.

The Alberta Electric System Operator has forecast a demand of 5,000 MW by
2017 and 11,500 MW by 2027, while ongoing oilsands development would require
nearly [all] of Canada's current natural gas supply by 2030.

While Areva is one of four potential vendors to the proposed Bruce Power
plant in Peace River, Laferrere has declined to name the remaining firms. On
Tuesday, he again refused to name names but added should a deal be struck
and approvals be in-hand, it would take a minimum of nine years to have a
nuclear facility built.

In March, Ontario's Bruce Power LP announced plans for a 4,000-MW facility
near Peace River that could cost $10 billion or more.

Steve Cannon, spokesman for Bruce, said the company is a long way from any
decision.

"We haven't even reached the point where we've had an environmental
assessment," he said. That alone is a 30-month process -- once launched.

Bruce Power is still awaiting the Alberta government panel review on what
policy steps it wants to take regarding nuclear energy, he said.

"Once we get a clearer picture on that we'll decide which way we want to
go," Cannon said.

In April, the province appointed an expert panel to examine a number of
issues on nuclear energy, including the feasibility of integrating nuclear
into Alberta's electricity system.

The fact-finding report is expected before the end of the year.

Alberta Energy spokesman Jason Chance said the province remains open-minded
on the issue.

"The panel's report and the views of Albertans, because there will be some
public consultation at a later date, will be essential in determining
whether nuclear energy is an appropriate fit for Alberta," Chance said.