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OTTAWA — The Harper government has announced a one-year, $300-million injection into Atomic Energy of Canada Ltd. to finance its development of its new ACR1000 reactor and to improve operations at the Chalk River research facility.
Finance Minister Jim Flaherty unveiled the investment in the government-owned nuclear corporation in his budget Tuesday, though he neglected to mention the commitment – one of the year’s biggest spending items – when he delivered his budget speech in the House of Commons.
The government has been dogged by controversy surrounding AECL and is considering either selling the Crown corporation outright, or bringing in private sector investors as part owners.
But the corporation received a black eye in December when it had to shut down its Chalk River research reactor – and halt the delivery of medically critical isotopes – in a safety dispute with the federal regulator. AECL is also eager to complete design work of its ACR1000 reactor, which it hopes to sell in Ontario, New Brunswick and internationally.
“Combined with a renewed management team that ensures strong leadership, these investments will help position AECL for success in the growing market for clean energy,” Finance Canada said in its budget documents.
In the midst of the Chalk River controversy, the government announced a new chief executive officer, Hugh MacDiarmid, for the corporation, which had gone without a top executive for several months and was much criticized for being rudderless.
The additional federal money for AECL is targeted at its two most pressing priorities: to get its new generation reactor ready for market, and to clean up the mess at Chalk River which has long been hungry for cash.
The one-year limit to the funding will certainly raise questions about Ottawa commitment to AECL beyond getting it ready for a possible sale.
AECL is fighting for its very survival.
It must persuade Ontario to purchase the ACR1000 to boost its international marketing effort. And AECL, along with its partner MDS Nordion Inc., must persuade American customers that it remains a secure source of medical isotopes that are not now produced in the United States, where there is growing pressure for a new domestic supply.
Critics have urged Ottawa to cut funding for the nuclear reactor vendor, arguing its technology is out of favour internationally and that subsidies could be better spent on cleaner, safer energy sources.
Greenpeace Canada has calculated that Ottawa has spent more than $20-billion on AECL in its 55-year existence.
Last year, Ottawa has committed more than $100-million annually — $105-million in the current year — to help finance its ongoing research. In the previous two years, it allocated an additional $100-million for the development of the ACR-1000, and the company must spend considerably more before the design is approved and ready for the market. It also earmarked $500-million over five years for AECL’s decommissioning and waste management plan.