Thank you, Mr. Chairman and members of the committee.
Today I'd like to give you a very brief overview of AECL and its role in nuclear technology, as well as a bit about its history, where it is currently, and how it contributes to the nuclear sector, nuclear energy, and nuclear applications across all of Canada.
Chalk River or AECL has been leading innovation for over 60 years. It's the largest scientific complex in Canada. It has 3,000 workers, many of whom are scientists doing research on a variety of elements and activities. It's the birthplace of Canada's nuclear industry. The first sustained criticality outside of the U.S. occurred there. Probably even more important, it's the birthplace of the CANDU reactor technology, with 19 reactors in Canada and 30 operating internationally. It also provided the research and facilities for breakthroughs in the application of medical isotopes, including cobalt-60.
AECL really is the heart of the nuclear sector. AECL has been doing nuclear research in energy, health, safety, security, and non-proliferation. Currently, the nuclear industry generates $6 billion of domestic product. As John indicated, there are 60,000 workers engaged in this industry. Canada has a large and robust supply chain that supplies both domestically and internationally. At its peak, the NRU reactor produced the material for over 20 million diagnostic procedures per year.
It's also the home of two Nobel Prize winners.
Regarding AECL today, as many of you may be aware, AECL has gone through a significant restructuring. Our mandate remains essentially the same: to enable nuclear science and technology to support both the federal government and industry. Our mandate is also to manage Canadians' radioactive waste and decommissioning liabilities.
AECL's mandate is now delivered through a long-term contract with the private sector under what is known as a government-owned contractor-operated, or GOCO, model. All the facilities, all the assets, and all the individuals—including the laboratory—are managed and operated by Canadian Nuclear Laboratories. This model has been used both in the U.K. and in the U.S. and has been found to be quite successful. The GOCO model leverages international best practices. It brings rigour and efficiency, and it will advance the priorities of the nuclear laboratory.
Currently, AECL has an annual spend of just under a billion dollars. We are also in the process of delivering infrastructure improvements at the site, with a budget of $800 million, in the next five years.
In terms of AECL's focus, the Chalk River labs are focused on three areas. First and foremost is science and technology, specifically in the area of nuclear energy and material science, which is applied to a wide variety of industries, including oil and gas. There is also research in health, emergency preparedness, safety, and the environment, which is also applied widely across other industries.
As I mentioned, one of the focuses is decommissioning and waste management. I'll talk a bit more about that in a minute or so. I have already mentioned that the lab is currently undergoing a significant renewal with the application of $800 million in the next five years, revitalizing the lab.
The lab has a very wide set of science and technology applications. Most of them are related to the nuclear industry but are by no means specific to that industry. It does work in thermodynamics, in surface science, biological research. It does have the NRU reactor and works on advanced fuels and has a hot cell. As I mentioned, the lab is going through a significant renewal. There's a new hydrogen isotope facility, a recently opened multi-purpose science facility, and other facilities are being planned.
Regarding nuclear energy in Canada, as John and others have mentioned, Canada has a long history of safe and successful use of nuclear energy. It's one of only a handful of countries with homegrown nuclear technology, export experience, a strong regulator, a supply chain, and most importantly, a world-class nuclear workforce.
Nuclear energy is a low greenhouse gas emitting technology. It has a strong environmental record, a strong safety record. It has an independent regulator that's respected worldwide and as mentioned, it does generate some amount of waste but that waste is low in volume, it's well managed, it's rigorously accounted for, and it's funded. Nuclear energy provides a reliable, baseload electricity that complements other clean and renewable energy sources. This has been recognized internationally.
As John mentioned, significant investment is occurring in the nuclear industry with the $25 billion invested in the refurbishment. We believe this provides an opportunity to show the cost-effectiveness of nuclear projects being delivered on time and on budget.
On nuclear technology innovation, nuclear technology at Chalk River has been a springboard to innovation in multiple areas of the economy. The study of materials has direct applications to industry that need high-performing materials. The work at Chalk River also continues to support the nuclear industry in terms of continued safety, lower operating costs, life extension, and exports of the nuclear supply chain.
In summary, the Chalk River laboratory is a key element of not only the nuclear sector but the innovation and science and technology capacity across Canada. One of the emerging innovations is that around a very small modular reactor. Canada's expertise and experience provide Canada a unique opportunity. The application of this type of technology could serve a wide variety of potential customers, including the mining and gas industry. It could bring energy to the northern, more remote communities, and it provides an opportunity for export.
One of the challenges facing small modular reactors is the number of designs. We believe that the Chalk River lab could help advise both the government and commercial companies on the technology. Currently, there are over 100 different designs. We believe that Chalk River provides a site and the technology and the capability to find the best and the most appropriate.
Finally, on the topic of decommissioning and waste management, as I mentioned, AECL is responsible for the liability that Canada has, which is currently estimated at $8 billion. These liabilities are a result of 60 years of research, development, and production of radiopharmaceuticals. The point I want to make is that nuclear waste in Canada is understood, it's very well managed, it's highly regulated, and currently it's minimized to the extent possible.
As I mentioned, decommissioning is under way in Canada, and we have solutions for almost all the waste. The Nuclear Waste Management Organization is overseeing the long-term solution to used fuel and low-level and some intermediate-level waste at Chalk River. We're in the process of designing and securing regulatory approval for what we call a near-surface disposal facility.
There are currently two low-level waste management facilities being built, in Port Hope and Port Granby. There are decommissioning plans being put together for both Whiteshell and the NPD reactor.
In summary, we believe nuclear is a key contributor to low-carbon energy production. It has a strong environmental record in safety and it is complementary to other sources of energy. Canada has a strategic advantage with nuclear power technology. It has experience with both the environmental and economic application, and it has and could produce significant high-quality jobs. The Chalk River laboratory is a key element, not only to the Canadian nuclear sector but to its innovation chain and science and technology capabilities across the entire country.
Canada is very well placed to seize an opportunity as it relates to the small and very small modular reactors, but this will require investment from both government and industry. Finally, in terms of waste and decommissioning, work is under way. We understand the waste. It's accounted for and well managed and it's funded. AECL is leading the way to develop safe waste management solutions.
Thank you.