Cameco, SaskPower, Westinghouse to explore nuclear reactor tech for clean electricity

Cameco (TSX: CCO; NYSE: CCJ) is partnering up with Saskatchewan Power (SaskPower) and Westinghouse Electric to evaluate the use of nuclear reactors to meet the province's future clean power needs.

On Monday, the parties signed a memorandum of understanding that will explore technical and commercial pathways to deploy Westinghouse’s reactor technology, including the advanced AP1000 reactor and AP300 small modular reactor (SMR), for long-term electricity supply planning.

The framework within the MOU includes evaluation of a Saskatchewan-based nuclear supply chain to support nuclear energy projects, including fuel. It also identifies opportunities to collaborate on nuclear research, development and workforce training in partnership with Saskatchewan’s post-secondary institutions.

SaskPower is expected to make a final investment decision in 2029 whether to proceed with constructing the first SMR facility in Saskatchewan. As the principal utility company, it intends to use Saskatchewan-produced uranium in any reactors constructed in the province.

Saskatoon-based Cameco is currently one of the world's largest publicly traded uranium companies. It has a licensed capacity to produce more than 30 million lb. of uranium concentrates annually from its sites across Canada (Saskatchewan), US and Kazakhstan.

Westinghouse – owned 49% by Cameco and 51% by Brookfield Asset Management  – is the world's leading supplier of safe, innovative nuclear technology. The company’s technology is now the basis for nearly one-half of the world’s operating nuclear plants.

“Leveraging knowledge from organizations that have significant expertise in the nuclear industry is critical to ensure we make responsible, informed decisions around our power future,” Rupen Pandya, CEO of SaskPower, stated in a news release.

“Collaborating on nuclear fuel supply and evaluating various technologies will only serve to enhance our current small modular reactor development work and planning around workforce and the future of Saskatchewan’s power system.”

The AP1000 reactor is in operation in the US and China, where it is setting operational performance and availability records. It has been selected for the nuclear energy programs in Poland, Ukraine and Bulgaria, and is also under consideration at multiple other sites in Central and Eastern Europe, the United Kingdom (UK), India and North America.

The AP300 modular reactor is the only SMR based on an advanced, large Generation III+ reactor already in operation globally. Westinghouse is targeting design certification by 2027 and for first construction to begin by 2030, with the operating unit planned to be available in the early 2030s. The AP300 SMR has been selected by the UK’s Great British Nuclear program and is under further customer consideration in Europe and North America.

“Cameco has a proud history and a significant presence in Saskatchewan, from our world-class uranium operations to our large and growing provincial workforce to our long-standing partnerships with northern Indigenous communities,” said Tim Gitzel, CEO of Cameco.

“We look forward to assessing the potential role Cameco and Westinghouse could play in decarbonizing Saskatchewan’s power grid, an ambitious and important goal for the province’s future.”