AECL Signs Agreement with Argentina to Enter into Negotiations for New CANDU Unit

    BUENOS AIRES, July 27 /CNW/ - Atomic Energy of Canada Limited (AECL) is
pleased to announce that it has signed a Memorandum of Understanding (MOU)
with Nucleoeléctrica Argentina S.A. (NASA) to enter into commercial
negotiations to define the contracts and project delivery model for a new
740-megawatt CANDU 6(TM) power plant.
    The agreement also includes the potential for a second unit, the design
of which is based on the twin CANDU 6 units in Qinshan, China - completed
ahead of schedule and under budget in 2002/2003 respectively - with certain
modifications made by NASA.
    The signing ceremony between representatives of AECL and NASA was
witnessed by the Honourable Gary Lunn, Minister of Natural Resources Canada,
and Argentina's Minister of Planning and Federal Investment, Julio De Vido.
The MOU reflects the importance both governments place on using world-leading
CANDU power plants to meet increasing energy demands.
    "This agreement clearly demonstrates that, once again, CANDU is an
excellent choice for additional clean, baseload power," said Minister Lunn.
"This initiative strongly supports Canada's New Government's agenda of
enhancing mutually beneficial commercial and bilateral relations between
Canada and South American nations. As an international leader in clean-air
nuclear power, Canada is very pleased to be working with Argentina to
strengthen its world-class nuclear program."
    The decision to proceed with negotiations for a new CANDU power plant is
based on the results of a joint feasibility study completed in April 2007.
Terms of the MOU negotiations will cover the following areas:

    -  Technology Transfer Agreement
    -  Procurement for scope of supply in Canada
    -  Technical Assistance Agreement covering AECL's support in engineering,
       local supply, project management and construction and commissioning
       management

    NASA will be the project manager of the new station, and AECL will
provide the technical assistance required during the construction and the
Canadian equipment content. The results of the contract and project delivery
model negotiations will be submitted by NASA to the Government of Argentina
for final review and approval by the end of April 2008.
    AECL's Senior Vice-President and Chief Operating Officer Ken Petrunik in
Argentina for the signing ceremony, stated, "We are extremely pleased to be
working in partnership with NASA as this initiative builds on a long and
strong business and cultural relationship which supports NASA's intention to
re-launch its world-class nuclear program. As the world looks to clean nuclear
energy to supply an important part of growing energy needs, NASA and Argentina
can join with AECL in providing a stronger delivery capability to meet
increasing international demands."
    Argentina's nuclear power program is centred on heavy water reactors,
including the very successful Embalse, an AECL CANDU 6 power reactor that was
connected to the grid in 1983.
    In May 2006, AECL announced an Agreement for Nuclear Energy Cooperation
with Argentina that specifies a number of nuclear-related projects on which
AECL and NASA would collaborate. These projects include life extension to the
Embalse CANDU 6 power plant, a feasibility study for the next CANDU station,
and assistance to NASA to complete a heavy water reactor originally supplied
by Germany. The agreement will also create commercial opportunities for
Argentina to supply services and heavy water to international CANDU markets.
    In the last 11 years, AECL has been continuously building new nuclear
reactors and has surpassed all major reactor vendors in completing six
reactors on budget and on or ahead of schedule. AECL's new Cernavoda Unit 2
CANDU 6 nuclear power plant owned by Societatea Nationala Nuclearelectrica
(SNN) SA, Romania's nuclear public utility, sustained a fission reaction for
the first time in early May of this year. AECL's CANDU 6 (700 megawatt class)
reactors are operated in five countries by seven different utility customers
and have consistently achieved outstanding safety and performance track
records.

    About AECL

    AECL is a full-service nuclear technology company providing services to
nuclear utilities around the world. Established in 1952, AECL is the designer
and builder of CANDU technology.
    AECL specializes in a range of advanced nuclear energy products and
services that are an important component of clean-air energy programs on four
continents. AECL's 4,700 employees provide research and development, support,
design and engineering, construction management, specialized technology,
refurbishment, waste management and decommissioning in support of CANDU
reactor products. More information on AECL and CANDU technology can be found
at www.aecl.ca.

For further information: Dale Coffin, Director, Corporate
Communications, AECL, (905) 403-7457, Toll free: 1-866-886-2325