Mr. Ian Edwards reports

ATKINSREALIS, AECL AND CNL TEAM UP TO BOLSTER CANADA'S STRATEGIC HEAVY WATER SUPPLY IN SUPPORT OF CANDU TECHNOLOGY

Candu Energy Inc., an SNC-Lavalin Group Inc. (AtkinsRealis) company, has signed a memorandum of understanding (MOU) with Atomic Energy of Canada Ltd. (AECL), a federal Crown corporation, and Canadian Nuclear Laboratories (CNL), which manages and operates Canada's premier nuclear science and technology organization for AECL, to co-operate on the upgrading and production of heavy water for the commissioning and operation of new Candu nuclear reactors in Canada.

"This collaboration among important stakeholders in the Canadian nuclear sector sets the stage for Canada to lead the global heavy water market, solidifying its role as a key player in the energy transition," commented Ian L. Edwards, president and chief executive officer, AtkinsRealis. "With Candu reactors operating across four continents, a global nuclear new-build market with expected demand in excess of 1,000 new reactors, a strong Candu reactor refurbishment market and the introduction of the new Candu Monark 1,000 MW [megawatt] reactor in addition to the existing enhanced Candu 6, this memorandum of understanding could not have come at a better time."

The MOU brings together AtkinsRealis's nuclear and industrial capabilities in Canada as the licensee of Candu technology, as well as AECL, owners of Candu intellectual property (IP) and other heavy water production technologies, and CNL, a world leader in the industry with extensive experience in heavy water technologies. The objective is to evaluate options and select cost-efficient, environmentally responsible and viable heavy water production technologies, which could include the establishment of industrial-scale heavy water production facilities to support the deployment of a new fleet of Candu reactors.

Heavy water is used as a moderator and coolant in Candu reactors. It is a differentiating factor in nuclear reactor design that not only allows Candu technology to be incredibly safe, but also allows the reactor to utilize unenriched uranium as its fuel source -- something no other modern nuclear reactor can do. However, heavy water has not been produced in Canada for over 25 years, and there are currently no large industrial-scale heavy water production capabilities in the Western world that will meet the supply needed for a new fleet of Candu reactors. This is especially true as Canada has ambitious nuclear buildout plans, with the country being one of many to have committed to tripling nuclear output by 2050, and the province of Ontario alone having an estimated future need for 18 GW (gigawatts) of new nuclear power by 2050.

"I am pleased that AECL, CNL and AtkinsRealis are collaborating and working together to advance heavy water production for Candu reactor technology. Candu technology is uniquely positioned to contribute to important national objectives such as decarbonization, energy security, economic growth and maintaining Canada's Tier 1 nuclear nation status," said Fred Dermarkar, president and chief executive officer of AECL.

"As the owner of Candu IP licensed to Candu Energy Inc. and owner of Canada's national nuclear laboratory at Chalk River, Ont., managed and operated by CNL, AECL is committed to seeing its Candu technology and the unique capability of its national laboratory leveraged for the benefit of Canadians," commented Grant Gardiner, executive vice-president, business strategy and development, AECL. "We believe establishing a secure, domestic and economically viable supply of heavy water is vital to the continuing success of Candu technology, and are proud of the unique capability that our national laboratory brings to this effort."

"The deployment of large-scale nuclear power in Canada is an enormous undertaking, and will require extensive alignment and co-ordination between organizations, industries, public officials and regulators from across the country," commented Jack Craig Jr., president and chief executive officer at CNL. "Heavy water is one key piece of the larger puzzle, and CNL is working hard to play a leadership role in this process, ensuring that the broader industry is working towards a shared vision, and that the necessary inventory and production capabilities are in place to supply these reactors. CNL looks forward to leveraging our world-leading expertise, experience and CNL-managed, AECL-owned IP in heavy water production and upgrading to support the deployment of new Candu reactors in Canada with AtkinsRealis. By doing so, we will strive to make Canada the leader in the global heavy water market."

"Candu technology, as Canada's only domestically developed large-scale nuclear technology, is a source of national pride," said Joe St. Julian, president, nuclear, AtkinsRealis. "We are honoured to continue stewarding and enhancing its reputation as a leading global nuclear technology. A reliable supply of heavy water will also safeguard the supply of the global isotope market with cancer-fighting nuclear medicine, as Candu reactors -- with Ontario's supplying 50 per cent of the world's supply of cobalt 603 -- are the only commercial-scale reactors that can produce such medical isotopes while also producing power at the same time."

About SNC-Lavalin Group Inc. (AtkinsRealis)

Created by the integration of long-standing organizations dating back to 1911, AtkinsRealis is a world-leading professional services and project management company dedicated to engineering a better future for the planet and its people. The company creates sustainable solutions that connect people, data and technology to transform the world's infrastructure and energy systems. It deploys global capabilities locally to its clients and delivers unique end-to-end services across the whole life cycle of an asset, including consulting, advisory and environmental services, intelligent networks and cybersecurity, design and engineering, procurement, project and construction management, operations and maintenance, decommissioning, and capital. The breadth and depth of the company's capabilities are delivered to clients in strategic sectors such as engineering services, nuclear and capital.

About AtkinsRealis's nuclear business

AtkinsRealis has over 70 years of global nuclear expertise, delivering nuclear technology products and full-service solutions to nuclear utilities around the world. AtkinsRealis is the steward of Candu nuclear technology, operating on four continents, and provides advisory and engineering services to other nuclear developers. With an innovative technology portfolio, including access to over 500 patented solutions, AtkinsRealis solves technically complex challenges across the whole nuclear life cycle, from design and new build, through asset management, and from life extension and late-life management, through decommissioning and waste management. AtkinsRealis operates and manages government nuclear research sites, transforming aging infrastructure and safely managing legacy nuclear waste. AtkinsRealis is also involved in developing medical radioisotopes for cancer research through its partnership with TerraPower.

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