Lower Churchill Project Gilbert Bennett, VP, Lower Churchill Project March 22, 2013
Safety Moment • Nalcor safety culture 2
Project Overview
Lower Churchill Hydroelectric Development A dam and powerhouse at Two dams and powerhouse at Gull Island Muskrat Falls 2250 MW/ 12 TW-h/yr 824 MW/ 5 TW-h/yr Reservoir length – 232 km Reservoir length - 60 km Flood area – 85 sq km Flood area – 41 sq km Interconnecting Transmission Lines between Muskrat Falls, Gull Island, and Churchill Falls
Muskrat Falls Generating Facility
Muskrat Falls Generating Facility Tailrace Spillway North RCC Dam Powerhouse Intake South Dam 6
Project Design Stage-gate process • Front-end loading to mitigate risks • Substantial design enhancements between DG2 and DG3: • – Greater definition and design improvements with engineering >50% complete (~5% at DG2) – >5,000 engineering drawings and documents 7
Meteorological Conditions 4500 towers; 460,000 • insulators 6,000,000 m of conductor • 13 distinct wind and ice • combination zones developed from multiple desktop report and existing network of test towers/test spans 170 km of High Alpine (Rime) • Ice and Wind Loading, 180 km Heavy Glaze Ice 250 km of remote • inaccessible line in central Labrador 9
Meteorological Conditions 10
Strait of Belle Isle (SOBI) Crossing Rock Placement Vessel • Three cables will each have a dedicated horizontally directionally drilled (HDD) conduit to protect it from shore and pack ice at the landfall points. • Conduits will take each cable to a water depth of between 60 to 80m. • Cables will be laid on sea bed and each protected with a rock berm. Horizontal Directional Drilling Landfall Protection 11
SOBI - Iceberg and Pack Ice Protection The bathymetric shield extends 50 km East of SOBI and stops icebergs with draft greater than60m The SOBI sea bed extends to depths of ~110 m The HDD takes the cable below 70 m – clear of iceberg drafts and takes the cable 1 to 2 km away from the shore to protect from pack ice 12
Project Update 13
Project Update • Sanction decision made by the provincial government in December 2012 • Preliminary site work completed at Muskrat Falls • More than 95% of engineering work has been carried out in NL • Moving forward with site construction • Contracts and packages awarded for several major project components
Key Activities: 2013
Muskrat Falls – 2013 • Bulk excavation underway • Start reservoir clearing • North Spur geotechnical engineering • Accommodations complex to be constructed • First concrete to be poured for spillway 16
Labrador Transmission • Commence Right of Way (ROW) clearing – Muskrat Falls to Churchill Falls • Commence transmission construction • Commence earth works at Churchill Falls switchyard 17
Labrador-Island Link/SOBI • Anticipated release from Environmental Assessment early 2013 • Following release: – Commence earthworks at Soldier’s Pond (Avalon Peninsula) – Start ROW clearing in Labrador and Northern Peninsula – Begin transmission construction late 2013 – Begin Strait of Belle Isle Horizontal Directional Drilling (HDD) program
Muskrat Falls Today 19
Muskrat Falls Site Today • 7 contractors working on site today • Approx. 260 workers • Security and medical services located on site • Health, Safety and Environmental personnel onsite 20
Muskrat Falls Site 21
Powerhouse Area 22
Temporary Accommodations 23
Bulk Excavation 24
Bulk Excavation 25
Bulk Excavation 26
North & South Wall Bulk Excavation, Controlled Blasting 27
Line stringing across Churchill River 28
Line stringing across Churchill River 29
Newfoundland and Labrador Benefits
Benefits to NL will include: • Long-term stable electricity rates for generations • Reliable, long-term supply of clean, renewable energy • Energy independence – an enviable position • Energy for future mining and industrial development in the province • Diversified economy, jobs and benefits • Link to North America’s electricity grid and ability to export power to other markets • Long-term revenue generation
Project Benefits • The construction of Muskrat Falls will mean significant economic benefits for Newfoundland and Labrador, including: – $1.9B in income to labour and business – $320M in average income benefits per year – $290M in taxes to the Government of NL 32
Project Benefits • Approx. $500M in income to business and labour will be earned by Labradorians and Labrador-based businesses. • 23,300 person years of direct, indirect & induced employment - 8,000 in Labrador. • 9,100 direct person years of employment during construction - 5,800 in Labrador. 33
Quarterly Labour Demand 34
Procurement Opportunities
Committed to Opportunities for NL • Full and fair opportunity on a competitive basis • Participate in the supply of works, goods and services – Directly from Nalcor and SNC-Lavalin Inc. – Indirectly through contractors and suppliers • Availability of businesses to provide goods and services determines level and nature of economic benefits • Nalcor, SNC-Lavalin Inc. and any contractors and suppliers must adhere to provisions of: – Impacts and Benefits Agreement (IBA) with Labrador Innu – NL Benefits Strategy – NL/NS Benefits Memorandum of Understanding
Innu Business Opportunities • Nalcor is committed to enhancing Innu business participation in the project in accordance with the IBA • Innu Businesses have first bidding opportunity on $400 million of business opportunities, split between Phase 1 (Muskrat) and Phase 2 (Gull Island) • First bidding opportunities cover a wide range of goods and services • Interested businesses should contact the Innu Business Development Centre or Innu Nation to discuss partnership opportunities
Procurement Activities to Date • Packages awarded for several major project components: – Bulk excavation – Accommodations complex installation – Medical and security services – HVdc Submarine Cables – Turbines and generators – HVac transmission line steel towers Muskrat Falls to Churchill Falls – Site services for temporary camp Majority of procurement activity for the Project will be • initiated in 2013/14
Summary • Over 95% of the engineering work carried out in NL • Construction work has commenced and will continue as per the schedule • Significant economic, business and employment opportunities for NL • Procurement opportunities available – bulk of contracts to be awarded in 2013/early 2014 39
Learn More • Nalcor Energy website: nalcorenergy.com • Muskrat Falls Jobs website: muskratfallsjobs.com • Email: lowerchurchill@nalcorenergy.com • Call toll-free: 1-888-576-5454 • Participate in supplier development sessions, public meetings and open houses 40
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