Lower Churchill Project Gilbert Bennett, VP, Lower Churchill Project - - PowerPoint PPT Presentation

Lower Churchill Project

Gilbert Bennett, VP, Lower Churchill Project March 22, 2013

Safety Moment

• Nalcor safety culture

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Project Overview

Lower Churchill Hydroelectric Development

Interconnecting Transmission Lines between Muskrat Falls, Gull Island, and Churchill Falls

2250 MW/ 12 TW-h/yr Reservoir length – 232 km Flood area – 85 sq km

A dam and powerhouse at Gull Island Two dams and powerhouse at Muskrat Falls

824 MW/ 5 TW-h/yr Reservoir length - 60 km Flood area – 41 sq km

Muskrat Falls Generating Facility

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Muskrat Falls Generating Facility

South Dam North RCC Dam Spillway Intake Powerhouse Tailrace

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

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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

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Meteorological Conditions

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Strait of Belle Isle (SOBI) Crossing

• 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.

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Rock Placement Vessel Landfall Protection Horizontal Directional Drilling

SOBI - Iceberg and Pack Ice Protection

12 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

Project Update

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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

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Labrador Transmission

• Commence Right of Way (ROW) clearing

– Muskrat Falls to Churchill Falls

• Commence transmission construction
• Commence earth works at Churchill Falls switchyard

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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

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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

• nsite

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Muskrat Falls Site

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Powerhouse Area

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Temporary Accommodations

Bulk Excavation

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Bulk Excavation

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Bulk Excavation

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North & South Wall Bulk Excavation, Controlled Blasting

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Line stringing across Churchill River

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Line stringing across Churchill River

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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

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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.

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Quarterly Labour Demand

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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

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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

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