Pickering refurbishment gets government go-ahead

"For more than 50 years, nuclear power has been the backbone of Ontario's energy grid, with the Pickering Nuclear Generating Station as one of the best-performing and continuously operating nuclear stations in the world," Minister of Energy and Mines Stephen Lecce said as he announced the government's approval.

"To deliver on our major jobs plan to get Canadians working, extending the life of the facility will create jobs for tens of thousands of skilled workers while we build up the Ontario supply chain and keep 90 per cent of our project spend in this country."

Pickering units 5-8 - known as Pickering B - began operations in the mid-1980s and had been scheduled to end electricity production this year, but in 2022 the provincial government directed OPG to keep them in operation until 2026 and to reassess the feasibility of refurbishing the units. The government gave OPG the go-ahead to begin the initiation phase of the refurbishment project in January 2024, and one year later, it gave its permission for the start of the project definition phase.

The final budget for the Pickering refurbishment is CAD26.8 billion (USD19.1 billion), but according to a study by the Conference Board of Canada, the mega-project - which will enable the plant to continue in operation for up to 38 more years - will increase Ontario's GDP by CAD38.2 billion in 2024 dollars over the project's lifespan, including CAD17 billion during the refurbishment phase, and increase Canada's national GDP by CAD41.6 billion over its lifespan.

Some 30,500 jobs will be created during refurbishment, while the station's operation will sustain 6,700 jobs. To reduce costs, the government says it will continue exploring potential financial instruments that would benefit ratepayers, while OPG "continues to explore other optimal financing arrangements".

_{Pickering (Image: OPG)}

Refurbishment of CANDU reactors is a major undertaking in which thousands of parts - including major components such as steam generators and pressure tubes - are inspected or replaced before the reassembled reactor returns to service. OPG has been carrying out refurbishment of four units at its Darlington site, and thousands of lessons learned there will be incorporated at the Pickering refurbishment which the company said is a more complex and larger project than Darlington. The work at Pickering will include replacing all 48 steam generators across the four units - components that were inspected rather than replaced at Darlington.

With the green light from the government, OPG said it will continue to advance the definition phase, which will last through much of 2026. It has already signed contracts for the refurbishment with Ontario-based suppliers, including a CAD2.1-billion contract with CanAtom for early engineering and procurement to prepare for the execution of the project's Retube Feeder and Boiler Replacement Program. It expects to begin the Project Execution Phase in early 2027, with completion expected by the mid-2030s.

"This is a truly remarkable moment for Pickering Nuclear, our employees, and the community," OPG President and CEO Nicolle Butcher said. "We are ready to leverage all of our ongoing lessons and experience from our Darlington Refurbishment and the construction of the G7's first Small Modular Reactor to deliver another successful nuclear refurbishment for Ontario. Through this project, we will ensure this important station continues to play a key role in our future - by generating critical energy and economic benefits, sustaining high-quality jobs, and ensuring Ontario and Canada's energy security."

Pickering units 1 and 4 - the last of the four units making up Pickering A - ceased commercial operations in 2024.