Mr. Chairman, I thank you and members of the panel for this opportunity to express our views on the state of the nuclear industry in Canada and abroad.
As we approach the end of the first decade of the 21st century, we can all agree that we now have reached a fork in the road concerning nuclear's place in Canada's future. Decisions pending must be made to bring clarity to this role in delivering competitive solutions in energy supply as well as the continuation of the high quality of life that Canadians enjoy and expect to continue.
In fact, I would further state that a stronger vision on a nuclear role is needed, and that from such a strong vision, a clarity of mission and goals will result, with a sense of the actions needed urgently to capture the opportunities for Canada.
Public policy needs, which include a regulatory framework, must be shaped to maximize the benefits while maintaining safety and must be realized from the current nuclear infrastructure in Canada, as must the benefits derived from abroad, where, over the decades, nations have embraced Canadian technology safely, providing improved standards of living for their citizens. Canadian nuclear technology has been operating around the world, unmatched in safety and reliability, while providing electricity at a competitive cost. These nations will no doubt be in the market for more Canadian technology in the near future and will serve as a showcase in securing new opportunities as the nuclear renaissance unfolds.
After a brief introduction of Hitachi, it is my intention to detail: Hitachi's nuclear experience; Hitachi's role in the Canadian nuclear industry, particularly with Atomic Energy of Canada; the need for a vision on nuclear's role in Canada, anchored by CANDU technology; and the positive impact that the execution of such a vision will have on areas such as manufacturing, academia, and medical and high-technology research, development, and deployment.
The Hitachi Group of Companies, with revenues of approximately $117 billion Canadian, consists of approximately 400,000 employees worldwide. In Canada, Hitachi employs approximately 1,000 people and includes two manufacturing operations, one in Saskatoon and the other in Guelph, Ontario. Hitachi has engaged in building and maintaining nuclear plants for over 40 years and, over that period, has participated continuously in the construction of 20 nuclear plants that are currently in operation, with an additional two plants now under construction.
Hitachi was a major partner with Atomic Energy of Canada on the Qinshan plant in China, a highly successful project having the highest capacity factors of any station in China, as well as having been constructed on time and on budget. Currently, Hitachi's role as a member of Team CANDU will bring its vast experience and technology to support any new build alongside Atomic Energy.
A vision is needed whereby policy does not limit nuclear contributions to current needs, but rather embraces the potential applications, such as Canadian technology being one of the potential solutions to climate change, as noted by Patrick Moore, one of the founders of Greenpeace; a vision that enables competitive, carbon-free energy source options; a vision that tries to accommodate a future hydrogen economy; and of course a vision that uses nuclear as a base to support plug-in electric vehicles.
All of the above are essential components that need to be included within a vision for nuclear's future in Canada, a vision that embraces the creation of long-term, high-paying, skilled technology jobs related to IP created by Canadians; a vision that maintains the supply chain synergies that integrate continuous training of workers who can undertake new build support and service functions globally; a vision that develops scientists who will deliver innovations that form the basis for new products while capturing the imaginations of young Canadians in the engineering as well as the physical and social sciences to achieve excellence; and a vision that builds on innovative ideas and the commercialization of new products developed through an integrated academia.
I would be remiss in not highlighting the potential for greater collaboration among educational institutions, which would foster the development of future scientists and be a fertile ground for innovation. Universities such as McMaster University, the Universities of Alberta, Saskatchewan, and New Brunswick, and UOIT are leading examples of this.
Let us also not forget the positive impacts of enhancing U.S.-Canada relations through reliable cross-border energy trade, energy security, and interprovincial trade.
To realize such a vision, nuclear technology must be proven at home to have any chance of acceptance abroad. This is a critical reason why a Canadian new build project is crucial.
While the capital costs of nuclear power are initially high compared to other forms of energy, worldwide, a nuclear power station produces electricity that is consistently competitive with any other form of energy over its life cycle. Policy that reduces or allows clear identification of risks will greatly assist the industry in overcoming the capital cost barrier. Policy also needs to accept the reality that uranium is a finite resource and the recycling of nuclear fuel, as well as the development of new fuel cycles, for which CANDU is particularly well suited, will ultimately be required by all users of nuclear energy.
In casting our sights on the potential that international markets offer, we must never lose sight of the fact that international nuclear projects are very competitive in a way that mirrors the support and coordination of multiple stakeholders, as demonstrated by the recent efforts to host the Olympics. Every major player received and had the backing of their home government, local stakeholders, community, and supply chain.
Domestic policy is critical to global success, whether it be the Olympics or large high technology projects such as nuclear plants. Why should Canada expect differently? This represents the challenge facing Canada. I maintain that such support is crucial if Canada has any chance of getting its fair share of the very real nuclear renaissance.
There is no shortcut or easy way out. Demonstrable support for the industry by government is required so that the private sector supply chain can go forward under strong leadership and clear vision. Customers, domestic and international, need to believe that the Canadian supply chain, supported by strong vision and domestic public policy, will be there in the long term, or they will not engage with Canadian technology. Our vision for the industry must recognize this fact and actions taken must reaffirm this.
Time is of the essence. There are serious consequences for inaction. Successful project execution requires detailed planning and the use of multiple skill sets, skills that are being lost to international competitors or through retirement as decisions drag on.
The commencement of simultaneous multiple global nuclear new builds will drive the competition for resources, both human and material. Delay breeds uncertainty and erodes confidence in our technology, both domestically and internationally, and in our workforce, which may have to seek opportunities in other industries or other countries. Delay undermines our past achievements, which over time are pushed into the background as challenges take centre stage.
Once a decision/policy is set, industry will be able to fully understand the risks and challenges that need to be addressed and will evolve strategies and plans to mitigate such risks and overcome any challenges. Canada has a proud history of achievements despite recent difficulties.
Nuclear, like all high technology, thrives best in an environment that has a stable vision of how it fits into society, both currently and in the future. The critical role of nuclear in health care as a provider of competitive and reliable baseload electricity, and its critical continued contribution as part of the solution to climate change, as well as Canada being prepared for the knowledge-based economy of the 21st century, are all at risk the longer clear and stable policy is lacking.
I thank you.