Mike Rencheck, President and CEO of Bruce Power on Canada’s goal of Net-Zero by 2050

October 14, 2020

The Empire Club of Canada Presents

Mike Rencheck, President & CEO of Bruce Power, on Canada’s Goal of Net-Zero by 2050

Chairman: Mike Van Soelen, Immediate Past President, Board of Directors, Empire Club of Canada

Moderator
Jan De Silva, President & CEO, Toronto Regional Board of Trade

Distinguished Guest Speakers
Michael Rencheck, President & CEO, Bruce Power
Rocco Rossi, President & CEO, Ontario Chamber of Commerce
Bruce Wallace, President & CEO, Nuclear Innovation Institute
Sujin Wren, Hydrogen Technologies Lead, Hatch

Introduction
It is a great honour for me to be here at the Empire Club of Canada today, which is arguably the most famous and historically relevant speaker’s podium to have ever existed in Canada. It has offered its podium to such international luminaries as Winston Churchill, Ronald Reagan, Audrey Hepburn, the Dalai Lama, Indira Gandhi, and closer to home, from Pierre Trudeau to Justin Trudeau; literally generations of our great nation's leaders, alongside with those of the world's top international diplomats, heads of state, and business and thought leaders.

It is a real honour and distinct privilege to be invited to speak to the Empire Club of Canada, which has been welcoming international diplomats, leaders in business, and in science, and in politics. When they stand at that podium, they speak not only to the entire country, but they can speak to the entire world.

Welcome Address by Mike Van Soelen, Immediate Past President, Board of Directors, Empire Club of Canada
Good afternoon, fellow directors, past presidents, members, and guests. Welcome to the 117th season of the Empire Club of Canada. My name is Mike Van Soelen. I am the immediate past president of the Empire Club of Canada, and I am delighted to be your host for today's virtual event: "Canada's Goal of Net-Zero by 2050 and the Critical Role of Nuclear Power." We have a great group of speakers with us today: Michael Rencheck, Rocco Rossi, Bruce Wallace, Sujin Wren, and Jan Di Silva, all of whom will be properly introduced in short order.

I want to take a moment to recognize our sponsors for their generous support of the Empire Club, who helped make these events possible. First of all, our Lead Sponsor today is Hydro One. Our Supporting Sponsors are Connectrix, and the Organization of Canadian Nuclear Industries. I'd also like to acknowledge our Season Sponsors, the Canadian Bankers Association and Waste Connections Canada. And finally, today's event partner is Van Volkenberg Communications, Canada's online event space, who has helped us adapt to webcasting in this virtual environment.

Before we begin today, I have a few logistical items to share. Pre-COVID, I might be directing you to the washrooms or to the emergency exits. But as is the way things go these days, I have some tech tips for you. So, first of all, if the internet feed is slow for you in any way, please press "Switch Streams" at the bottom of your screen. And finally, if there's any further technical help needed, don't hesitate to hit the "Request for Help" button.

It is now my pleasure, from where I sit here in Toronto, to wherever you are, to welcome you to this meeting and to call it to order. Climate change is one of the defining issues of our time. We know human activity has contributed to an increase in the concentration of greenhouse gases. The impacts of climate change includes, increases in global temperatures, with implications such as a rise in sea levels, increased frequency and severity of weather events, population displacements, and greater food and fresh water scarcity around the world. It is largely accepted by scientists that to prevent the worst consequences of global warming, our world must reduce its carbon emissions.

The Canadian Federal Government has set the target of net-zero emissions by 2050, which is only 30 years away. In 2019, UN Secretary-General António Guterres noted that the climate emergency is a race that we are losing but is a race that we can win. And surely, one of the best ways to win this challenge is with nuclear power, and that's what we're here to talk about today.

Bruce Power is a global leader in clean, safe, reliable nuclear energy. Bruce supplies over one-third of the electricity for Ontario's grid and produces medical-grade isotopes that help sterilize forty percent of the single-use medical devices around the world. So, without further ado, it is my distinct pleasure to welcome our first speaker of the afternoon, Michael Rencheck. He has been the President and CEO of Bruce Power since 2014. He has been an accomplished leader in the sector for almost the last 36 years, with roles at Areva, American Electric Power, and Florida Power Generation, all prior to joining Bruce. Michael has numerous distinctions to his name. But my favorite is the "CEO Who Gets It Award," he received in 2014 by the National Safety Council, for his leadership and personal commitment to worker health and safety. A professional engineer by trade, Michael is a leader in the energy sector, and we are thankful that he has agreed to join us this afternoon. Welcome back to the Empire Club, Michael. The virtual floor is yours.

Michael Rencheck, President & CEO, Bruce Power
Thank you, Mike. It's a pleasure to be here. Good afternoon, everyone, and thank you for joining us here today. And I'd also like to thank the Empire Club for hosting us today. We're here to talk about creating "Made in Ontario" and "Made in Canada" jobs, economic recovery, innovation, advanced medicine, and clean, affordable energy. Slide one, please.

We're here to outline a leadership role in enabling Canada to achieve net-zero carbon emissions by 2050. At Bruce Power, many of our people consider themselves environmentalists. And our focus on social responsibilities to improve our communities, to improve our environment, and to build a better future rings true with all of them.

You may or may not know this, but we operate the world's largest operating nuclear facility. We generate 30 percent of Ontario's electricity at 30 percent less than the average cost. We also make medical isotopes that sterilize forty percent of the once-used medical devices around the world and treat cancer. And we're also currently performing Canada's largest private sector infrastructure project, creating 22,000 direct and indirect jobs. These actions alone will ensure a long-term supply of clean, reliable, and affordable energy and life-saving medical isotopes for Ontario, for Canada, and for the world. But there's much more we have to do, much more we can do, and we will not stop here.

You see, we are uniquely positioned to help lead Canada forward, and achieve its economic and climate change objectives. Canada is currently a leader in nuclear innovation. And we need to ensure that it stays that way, so that future generations can benefit from the energy that we provide. The Canadian nuclear industry is growing, from isotopes that sterilize medical equipment and treat various forms of cancer, to small modular reactors and fusion energy, to heat, to power, to being able to produce hydrogen in bulk quantities, and other clean fuels that can possibly enable storage and further electrification of the transportation and industrial processes. Our nuclear sector right here in Canada is poised to lead the transformation into the future.

Now, why am I saying this, you may ask? Well, you see, throughout the COVID-19 pandemic, we are facing tough choices and great uncertainty. But what we have demonstrated is the importance of tackling big challenges together, listening, and caring for each other, and doing the things that we can do to make a difference. That's why Bruce Power has developed the strategy which I'm announcing here today, to contribute to an economic recovery and a net-zero Canada by 2050. We will only be successful implementing the strategy, by implementing the things that we know we can count on and working together to turn that into reality. We must leverage our clean infrastructure and build on the sound foundation that we have set, but not be pleased or satisfied. We must seek to do more. Let me explain. Slide two, please.

Nuclear power is the foundation that enables us to take these steps into further decarbonizing our economy and achieving net-zero by 2050. It's an integral component for Canada and the rest of the world. And in order to achieve our greenhouse gas emissions targets, enable the practical and affordable means of combating the devastating effects of climate change. The fact is, the largest and most successful greenhouse gas emission reduction program ever in North America was accomplished on the back of nuclear power. Ontario's Coal Phase-Out Program that cleaned our air stands out as one of the largest and most successful greenhouse gas reduction initiatives in the world. Eighty-nine percent of the energy needed to reduce these emissions and help Ontario phase out coal was made possible due to nuclear energy produced right here at Bruce Power. We saw smog days, from a high of 53 in 2005, reduced to zero by 2015. Slide 3, please.

Let's put that into context on what we actually mean for Ontario's emissions. The standard for so-called deep decarbonization is believed to be less than 50 grams of CO2 equivalent per kilowatt-hour generated. Ontario is about 35 grams, with electricity that costs customers on average about 13 cents. And this is done using a portion of 61 percent nuclear, 18 percent hydro, 8 percent solar and wind—with the remainder gas and other sources. And when we look at the economics of that, hydroelectric is at 6 cents, Bruce Power nuclear is at 7.85 cents, gas is at 14 cents, wind is at 14.8 cents, and solar is at 49 cents.

Now, contrast that with other jurisdictions that are trying to do it differently and promote themselves as being a green leader. Let's look at California, for instance. California's current CO2 equivalent per kilowatt-hour, by comparison, is 175 grams, with an average electric cost of about 30 cents, or two-and-a-half times more than Ontario, with billions and billions more to invest to achieve deep decarbonization of the electric sector. Similarly, Germany's current grid is emitting roughly 425 grams of CO2 equivalent with a similar price. That's about 10 times as much as Ontario. Slide 4, please.

This was echoed recently by Minister of Natural Resources, Seamus O'Regan, when he said Canadians have to be open to the idea of more nuclear power generation, if this country is to meet its carbon emissions reduction targets that it agreed to five years ago in Paris. Minister O'Regan stated quite bluntly: there's no path to net-zero without nuclear power. You see, Bruce Power strives to make Ontario a cleaner and greener place to live. And you can see that. Our electric system is a world leader in terms of decarbonization and emissions. We take very seriously our responsibility to provide clean and reliable energy, especially at such a pivotal time. We can make more clean energy, and we will. The work we're doing now to extend the life of our reactor units will enable us to produce this energy for many, many decades to come. And we are opening the doors to new technologies like medical isotopes, cancer treatments, hydrogen production, small modular reactors. We want to position our economy in a state of recovery with the ability to do that in conjunction with meeting Canada's net-zero by 2050 targets. This means fostering innovation and recognizing that economic growth across Canada can be enabled in parallel with good environmental goals and initiatives. We'd now like to play you a video that demonstrates the five pillars of Bruce Power's net-zero by 2050 strategy. Please play the video, please.

[VIDEO]:
Nuclear energy has the power to change our future. It supplies clean and reliable energy, strengthens the labour force, fights deadly diseases, and combats climate change. And it is a leader in addressing global challenges. Whether we work and live in rural environments or large cities, no one is immune to weather incidents or wildfires or to the impacts of climate change on industries like construction, agriculture, or tourism. Bruce Power has a solid commitment to helping Canada deal with these threats by further decarbonizing our economy without sacrificing economic growth. Our five-pillar net-zero 2050 plan points the way to achieving net-zero carbon emissions for Canada by 2050. Net-zero is important to all of us, but none more so than our children, who will endure tomorrow's consequences if we do not act decisively today.

Investing in existing infrastructure: our major component replacement project will extend the lives of our reactor units through to 2064. This investment in our Life-Extension Program assures the provision of low emission, affordable electricity, and life-saving isotopes to Ontarians for decades to come. And it supports more than 22,000 direct and indirect high-quality jobs in science, technology, engineering, and mathematics every year, while also generating 9 to 11 billion dollars of economic activity for Canada.

Supporting next-generation nuclear: Bruce Power is a founding member of the Nuclear Innovation Institute, which harnesses the expertise of scientific minds to break new ground in nuclear innovation. The institute recently launched the Centre for Next Generation Nuclear Technologies to explore progressive solutions to pressing challenges. Some of these solutions are small modular reactors, designed to serve remote communities and extraction industries, research into the role of fusion technology as part of Canada's clean energy future. A hydrogen economy. Hydrogen is a clean fuel that can be produced using electricity as an approach to reducing emissions, in just about all sectors across our country.

For more than 60 years, Canada has been a global leader in the research, development, and production of medical isotopes and radiopharmaceuticals. Cobalt-60 disinfects food products, controls airborne viruses, and sterilizes medical equipment. In fact, our 2020 harvest will enable the sterilization of 24 billion pairs of surgical gloves and swabs, critical in the struggle against COVID-19. Cobalt-60 is also highly effective as a targeted therapy for brain and breast cancers. Bruce Power is now poised to produce Lutetium-177, a promising treatment for prostate cancer. And through a new production system, we anticipate supplying a wide range of isotopes to give new hope to patients here, and around the globe.

Enabling clean electricity, clean fuels, clean transportation. Climate change is a primary concern demanding action now. And nuclear power plays a major role in attaining greenhouse gas emission targets. Bruce Power provided 70 percent of the energy Ontario required to phase out coal, and avoids 31 million tons of carbon dioxide every year. This is equivalent to taking about 6 million cars off the road, and almost equivalent to the air pollution released by coal plants in a single year. Transportation and trucking are among the largest sources of greenhouse gas emissions in Ontario. And finding practical solutions for the conversion to clean fuel is an industry priority. Using hydrogen as an alternative fuel can make a significant impact on reducing emissions. Ontario's vehicle manufacturers must quickly transition to zero-emission vehicles in order to remain viable. Stable, clean, affordable energy is essential to facilitate this transition. At stake is as many as 100,000 jobs in Ontario's vital manufacturing sector.

Creating green-collar jobs: we are creating an ecosystem of green-collar jobs throughout the nuclear manufacturing and energy development sectors, with a focus on diversity, and more representation from women, visible minorities, and Indigenous Peoples. The green economy is opening up to rewarding careers in both the research and skilled labour fields. Nuclear innovation supports tens of thousands of sustainable jobs annually. In fact, the nuclear industry in Canada today accounts for more than 76,000 jobs. New technologies and products founded on a clean electricity system are a boon to Ontario's homes and businesses. And beyond our own borders, this investment gives us a significant competitive edge in the export market, leading the energy sector.

We are inspiring innovation by supporting strong social responsibility and sustainability and providing contributions to global health, such as life-saving medical isotopes, as the world battles COVID-19. Bruce Power is a trailblazer in innovative advancements while also motivating partners and stakeholders to join forces to secure a flourishing future.

As a private sector initiative, Bruce Power's Net-Zero 2050 Strategic Plan will maintain our leadership in Ontario-made climate change solutions with cutting-edge technologies, and the supply of clean, low-cost energy. Through dedication, expertise, and a strong vision for tomorrow, Bruce Power is turning ideas into action.
[END OF VIDEO]

Michael Rencheck
The 2050 strategy consists of five key pillars. And these pillars are the foundation of our approach, and the building blocks to take further steps. You see, leadership means taking action. And we're taking action here today to build a brighter future. That's why I'm proud to be here today talking with you about what Bruce Power is doing, and where we're going.

First, by optimizing and enhancing our existing assets, Bruce Power will have an even greater impact on Canada's clean energy future. We are creating 22,000 direct and indirect jobs, $4 billion in Ontario's gross domestic product, and around $8 to $11 billion in Canada's gross domestic product. We're increasing the output of our plants. You see, in 2016, when we started our Life-Extension Program, our plants were rated at roughly 6,300 megawatts. Today, our plants are rated at 6,480 megawatts, and we have a plan and a vision to take this even further. Performance is at the heart of everything we do in our industry. You know. our friends at Ontario Power Generation at their Darlington Unit recently set a world record for continuous operation of 963 days straight at one of their units, and our Bruce Power units are right there along with them. In the last three years, we've generated more energy than we've ever generated in the history of the site. You see, innovation is at the heart of everything we do. By using new technologies and new tools, we can enhance the output from our site, and further reduce greenhouse gas emissions in the electric sector and make that electricity available for widespread use throughout Ontario. Additionally, we can't stop there. We are taking a study to look at the next 50 years for the Bruce Power site. With the world's largest nuclear operating facility, our assets can continue to be optimized, enhanced, leveraged, and life-extended, and Bruce Power can continue to have a profound impact on Canada's clean energy future for many years to come with many different options. We'll look at this study and produce it by the end of 2021.

Further, we are working with the Nuclear Innovation Institute and its new Centre for Next Generation Nuclear Technologies to look at coordinating and applying the best minds, to explore the tools and practices needed to develop leading-edge solutions. But what is most interesting to us, is that the projects in this centre will undertake and study the use of small modular reactors, fusion energy, hybrid hydrogen, nuclear economies, increased energy output from existing facilities, and storage solutions that flatten demand on the grid, such as lithium-ion batteries, pumped hydro, compressed air, stored hydrogen, and other technologies.

We'll also further advance our production of medical isotopes to look at sterilization, food disinfection, airborne viruses, and also to diagnose and treat cancer. While we are expanding the production of medical isotopes, we're unlocking the innovation and creativity of the medical community, in terms of new treatments that can be made available, and other diagnostics that can be sought after. This year alone, the medical isotopes harvested from Bruce Power's reactors will be able to sterilize 24 billion pairs of surgical gloves and swabs, which are critical in the fight against COVID-19.

So, we've covered existing infrastructure, and we've covered our near-term actions and research. But one thing we're very passionate about is the role of nuclear, and its critical role in a hydrogen economy. The promise and opportunity for this resource can foster a pan-Canadian solution, and Canadian unity across the provinces. Hydrogen is a clean fuel that can be produced using electricity, allowing it to be used as an indirect electrification approach to reducing emissions in just about all sectors. Enabled by bringing together different technologies with complementary features like hydrogen and nuclear. Hydrogen performs best when matched with a reliable base load supply for electrolysis, such as Bruce nuclear power. With our partners at the Nuclear Innovation Institute, we can evaluate the opportunity for mass production of hydrogen using nuclear technology and evaluate the opportunities for alignment with the oil and gas sector, the transportation sector, and industrial sectors. We see hydrogen as a unity project, the Hydrogen Unity Project. At a time when there are divisions in Canada on energy issues, we need to find solutions that are a win for all provinces. We'll explore the economic benefits, the regional opportunities, and the greenhouse gas reduction that can be achieved.

Lastly, all of these projects and our next steps will need to recognize that the COVID-19 pandemic has changed the world. Fighting COVID-19 is placing a greater importance on human health, along with retooling and economic recovery needed to be integrated to achieve net-zero carbon emissions. This is why our last project announcement today, the Bruce Power Retooling and Economic Recovery Council, will launch a panel review to determine the opportunities for enhancing global health through isotopes, leveraging our nuclear supply chain to be self-sufficient with PPE and isotope production, and furthering our opportunities to expand sterilization using cobalt-60 or other isotopes.

In closing today, it's clear that nuclear power, coupled with innovation, is essential to combat the global challenges we face to our environment, to our health and human well-being, and to economic prosperity. It's important to be able to achieve a net-zero by 2050. At Bruce Power, we have a strong vision for tomorrow. And you can see, we are acting to make it a reality today, with a plan to turn ideas into new solutions for tomorrow. Bruce Power's Net-Zero 2050 Strategy will maintain our global leadership in nuclear innovation and enable Canadian-made climate change solutions, with cutting-edge technologies, that will create real and meaningful lasting effects, well into the future. Our new projects will help lead Canada forward on its path to net-zero by 2050, and we're proud to do our part, with all of our great employees, all of our great partners, all of our great communities, as we push forward to achieve a greater future. Thank you, and I'll turn it back to you, Michael.

Mike Van Soelen
Thanks, Michael, I appreciate your insightful remarks. I got to meet you a couple of years back when you came to the Empire Club last, and I've appreciated the chance to watch your thought leadership in the space. And I think our audience heard that again today. So, thank you very much. It's a great privilege to have you. The next item on our agenda is a panel discussion to dive deeper into the question of how nuclear energy is a key pillar in our journey to net-zero greenhouse gas emissions. It is my pleasure to introduce Jan De Silva as moderator. Jan is the President and CEO of the Toronto Region Board of Trade, and she is spearheading efforts to make Toronto, our club's home, one of the most competitive and sought-after business regions in the world. Jan has an impressive resume, with 14 years of international CEO experience, building ambitious high-growth organizations. Her leadership is anchored in the belief in the power of economic development to propel communities. Jan is highly respected in the business community around the world, and has earned multiple distinctions for her business advocacy and government engagement efforts, including Canada's Top 100 Most Powerful Woman of Our Time by Hong Kong South China Morning Post and Canadian Board Diversity Council's Top 50. As an MBA recipient and an Honourary Doctorate holder, we are thrilled to have her moderate today's panel. Before I pass it over to Jan, just to remind you that you're watching an interactive event. We encourage you to submit questions in the box on the right of your screen. And we trust we can work to incorporate some of those to make today's discussion even deeper. So, with that, to introduce our panellists and to kick off the conversation, I turn it over to Jan.

Jan De Silva, President & CEO, Toronto Regional Board of Trade
Mike, thanks so much for that introduction, and thanks for inviting me to moderate today's very important Empire Club discussion. Though it may not seem like it at first glance, sustainability and climate action are essential to our economic recovery from this pandemic-fuelled recession. That's a reality Mike Rencheck has championed since COVID reached Canada, and even before. He continues to speak to business-minded audiences about the enormous economic potential in climate action. And he's not alone in this message. Governments and private equity firms are clear when they say that sustainable projects will take priority for funding and investments in the year ahead, and countries around the world are actively shopping for clean tech and energy solutions.

Here in Ontario, our house is in order. Our electricity system is over 90% emissions-free, thanks in large part to clean nuclear power. Now, we want to be leaders in exporting technology to international markets. But even greater than these incentives are the risks of climate inaction. Recent reports of flooding around the Great Lakes, hurricanes in the American South, and wildfires on the West Coast, demonstrate that the pandemic isn't the only threat to our way of life.

Our panel today features incredible leaders who, in addition to Mike, will speak to the opportunities and risks for businesses in Canada's march toward carbon neutrality. First on the panel is my very good friend and dear colleague, the Ontario Chamber of Commerce's President and CEO, Rocco Rossi. Rocco is an entrepreneur, business executive, and champion fundraiser. Prior to joining the chamber in 2018, he helped advance research and awareness in the health sector. Now, he amplifies the voice of the chamber's 60,000 member businesses. A warm welcome, Rocco.

Next is Bruce Wallace, the Nuclear Innovation Institute's President and CEO. Bruce has rich private and public sector experience in innovation networks and economic development. At the institute, he drives nuclear's role in our clean energy transition, and he helps foster collaboration between manufacturers and advanced technology companies in the region. Bruce, I know you're doing well because we had a chance to chat before this event.

Finally, rounding out our panel is Sujin Wren, the Hydrogen Technologies Lead at Hatch. Through most of her amazing career, Sujin has worked in the energy industry, with an increasing focus on sustainability. Her experience ranges from conceptual design to project implementation, and she recently led the product development of a fuel cell system for the world's first hydrogen-powered passenger train. Welcome, Sujin.

Now, let's jump right into questions. In Mike's remarks, he referenced the importance of optimizing our existing infrastructure to further tackle the realities of climate change. To the panel: how can the business community leverage this, and what advantages does Ontario and Canada have in this regard? Sujin, maybe we'll start with you, as this amazing Product Development Lead that you've been.

Sujin Wren, Hydrogen Technologies Lead, Hatch
I thank you very much for having me on the panel; it's exciting to be here. So, when we talk about the realities of fighting climate change, I think hydrogen is a very good solution to this issue. Hydrogen offers zero-emissions technologies, and so, because of that, it's such a good solution for tackling the realities of climate change. And so, when we talk about hydrogen and nuclear being compatible partners, hydrogen, when you go to create it using electrolysis, it only uses water and electricity as an input, and that makes it very compatible with using nuclear energy. This type of technology has been around for some time. So, it's not new technology. But there are constantly new developments happening in the space. And therefore, you do need to look at the risks and the rewards, when you are implementing this type of technology.

Jan De Silva
Thanks. Rocco, you sat on the Green Ribbon Panel with Mike. Why is now the time to invest in sustainable energy and infrastructure, and how will this attract investment to our region and aid in our economy?

Rocco Rossi, President & CEO, Ontario Chamber of Commerce
All great questions. And it was our privilege to be part of the Green Ribbon Panel—and kudos to all of the participants, because it came from healthcare advocates, to Pollution Probe, to the hydrogen sector, to the nuclear sector, to our friends at the Canadian Manufacturers and Exporters. So, a really wide group that all share the same desires. One, we want a lower carbon, a net-zero future, and one of the things we love about nuclear is it's not just the promise, it's what they've delivered. As Mike pointed out, the single biggest step taken in North America towards the Paris targets was actually shutting down the coal-fired plants in Ontario, and that would have been impossible without nuclear. And in particular, the flex capability at Bruce Power. So that's number one; there's a track record to build on, and we love building on existing assets and existing skill sets, because that gives you the highest probability of success

Number two, our 60,000-plus members in the Ontario Chamber of Commerce, including our amazing colleagues at the Toronto Region Board of Trade, are very interested in competitiveness. You know, we want the lower GHG future, but we want to stay competitive in the world, and that means we're concerned about price. And we love it when you've got an asset that produces 30-plus percent of our power at 30 percent less than the average of the rest of the power. So, that's critical.

Third is that it be consistent, because uncertainty is the single biggest enemy of investment. And when both domestic and foreign investors look at a regime within which you can count on that power going forward, and at a price that you can count on, really critical to making investment decisions. And then, finally—and I know we'll come back to it—there are lots of times people use the terminology "world-class." You know, it gets used a lot. But this is one area, the nuclear area, where, very clearly, Canada leads. And the combination of Bruce Power and OPG, really are crown jewels, in an effort to compete on a global basis—not just in power, but also in life-saving medical isotopes. And so, that's why we're really excited about this.

Jan De Silva
Thanks, Rocco. Mike, I want to go back to you. You had some compelling stats. Like, the data doesn't lie, in terms of how competitive we are in this space relative to other jurisdictions. And you've worked in many other jurisdictions. So, specifically, what are the advantages that we have in Ontario and Canada, and how can the business community leverage this?

Michael Rencheck
Yeah, first, let's start off with our electric grid. It's already decarbonized. So, as businesses, you are now using effectively carbon-free energy. We should be using that as a business community to attract growth and development all throughout Ontario. You can simply plug into the grid anywhere and not have to worry about your electricity being produced by fossil fuels, or other carbon-emitting sources. It's a great advantage that we have, and that some of the other jurisdictions around the world, to achieve what we have achieved, will have to invest billions upon billions upon billions of dollars to get down to the goals agreed to in the Paris Climate Accord. That's first and foremost.

But, you know, we have such great infrastructure here in Ontario, when you look at all of our electric system and our gas system combined. We start talking about new fuel types, our ability to tightly integrate, then, the wires system, or the electric system, and the gas infrastructure, from an aspect of storage and delivery. I think that integration, I believe that part of the Green Growth Compatible study, when we looked at that, we think we could lower overall energy costs by 28 percent, create 50,000 more jobs throughout Ontario in this sector. So, I think these advantages not only drive near-term economic growth and jobs, but to further decarbonize Ontario by moving into the transportation sector with electrification and hydrogen, by moving into the industrial sectors, and other sectors that are emitting sources, with solutions that can provide economic value for Ontarians and Canadians.

Jan De Silva
That's great. Now, just a reminder to the audience. We're starting to get some Q&A in, so keep your questions coming in. I'm going to turn to Bruce with a question, and then we'll go over to audience Q&A. So, Bruce, Mike always places emphasis on growing local economies. And in fact, he's got just such amazing impact stories about what's happened, particularly through Bruce Power's life extension projects. And this has more than 40 offices located in Bruce County. Bruce, can you explain how the Institute is partnering with Bruce Power in this regard, and how will the Institute's work integrate the local community in the broader nuclear supply chain?

Bruce Wallace, President & CEO, Nuclear Innovation Institute
Yeah, absolutely, Jan, thanks for that. And you'll recall, when you and I first met, we were both just sort of back in the country from warmer places trying to get through Canadian winters. And I was working at the Ontario Government, working for the Deputy Minister of Economic Growth and Development. And the big issue—and I think everybody wrestled with there—was how do we create an economic cluster that's successful? Everyone wants to have their own Silicon Valley. How do we create an Ontario version of Silicon Valley? People around the world were wrestling with that. And I think we probably would have settled for Austin or Boston, but it was very, very tricky to do. But it was sort of a top-of-mind issue there. Then I went to work for one of the federal superclusters, where, again, the question was, how, what's the alchemy of turning something that's organic by nature into artificially kind of creating something that the Harvard Business School will be proud of?

And then I got up here, and working for the Nuclear Innovation Institute, and I looked. And you can see that one of the best answers is right here at home, in Bruce County, where you have an anchor company that cares deeply about what happens beyond the wire that surrounds it, that has market certainty, and has policy certainty, that allows it to plan for the long term, that is able then to attract investment, and attract other companies into its network and supply chain, and talent develops around it. And that's what Bruce Power did, here. It looked forward at how you could take this one-time opportunity over years, which is the Life-Extension Program, and create sort of a lasting footprint in the region. So, the Nuclear Innovation Institute is part of that vision. It's a vision question. And it's a tribute to Mike Rencheck's leadership, and James Scongack, and frankly, the leadership of the other companies that have joined us in this mission, to really invest in creating an economic foundation for generations to come.

So, what we're able to do here as the Institute is to leverage what's happening at Bruce Power with the Life-Extension Program, to leverage all of that talent, all of those skills, the capital, the assets that are there, and to find a way for us to play a role in this transition to a cleaner energy future. It also allows us to build a local knowledge economy, here, to really put an emphasis on education, to put an emphasis on energy literacy—which, frankly, isn't just a regional problem, it's a global universal problem, getting people to understand energy better—and so, we're focused on those areas in terms of just trying to raise the next generations of people who are comfortable in this as we go forward.

So, very specifically and quickly, the NIA focuses on that sort of increasing the pace of innovation in the industry itself, by leveraging the current strengths of the industry into creating that clean energy future, and to develop local skills, so that 117 years from now at the Empire Club, Mike, people can be coming to attend from the street.

Rocco Rossi
Yeah. And I'd like to add just one stat for you, to what Bruce is saying. One of the incredible things of the Renewal Project at Bruce is that over 90 cents of every dollar spent is being spent right here in Canada. And so, you know, all of the sort of "buy local, celebrate local," this is at a scale that no one else is doing, single-largest private sector infrastructure investment in the country. And being done, largely, by building the local economy, so that you have a cluster that, by the end of this, also is ready to take on the world, in terms of export possibilities, whether it's small modular reactors or the rest of our technology.

QUESTION & ANSWER

Jan De Silva
No, you raise an excellent point. And can I tell you—and hopefully Mike Van Soelen, maybe you and I can team up and do another event with Mike Rencheck, just simply talking about this topic. Because it's core to his leadership style, it's core to his ambitions for the community, and that's front and centre every time you talk to him. So, it's an excellent point, Rocco, and it is such a compelling advantage of what's happening with Bruce Power. I've got some questions coming in from the audience, so let me switch over, here. Bruce, you mentioned, you made a very, several compelling points here. But a very important point that there's still a great deal of misunderstanding about nuclear in the marketplace. And the first question is somewhat related to that. With growth, what is the risk of nuclear accidents? Mike and Bruce, maybe I could direct that to both of you.

Bruce Wallace
I'll let Mike take that.

Michael Rencheck
Yeah, thanks, Bruce. You know, a few things. When you look worldwide, it's one of the safest industries in the world. Our industrial safety events are lower than banking, the banking system, as an example. And over time, the new technologies are becoming more and more passive, in terms of needing active systems to continue operation or shutdown. So, when you look at that profile and you look at the record, the history will show that this industry has done very well in that space. And, you know, we always, we often always hear about, what about the residual? Well, if you used all of your electricity in a year from nuclear energy, this is the total amount of waste that you could possibly produce. And in fact, it's one of the only industries in the world that has all of its waste captured and stored. We have 50 years of it contained in canisters, here at the site, in an area less than the size of a football field. So, it's going nowhere, it's hurting no one, unlike other industries. The transportation sector, you know, just from the Asthma Society alone, they count on the thousands of deaths per year from emissions. Other industries like plastics, there's plastics everywhere—you can find them in the oceans, you can find them discarded in landfills. Other technologies will also be pursuing that.

So, when you consider the risk versus the benefit, especially as we're facing climate change, nuclear is one source of energy that can be scaled to a degree that can really have an impact. I believe in that climate in the Climate Report that was produced by the Green Ribbon Panel, you'll see that, with the phase out of Ontario's CO2 emissions, particularly coal, you'll see the introduction of other technologies had very little impact on the overall emissions reduction. It wasn't until nuclear got provided at scale did we see any appreciable change in the footprint. I think, when you look at Germany, you'll see similar types of degrees of increases in CO2 emissions with the applications of other technologies. You see, others are trying to do it differently than Ontario. All I can tell you is that we've already done it. It's proven. It's real. You can see it every day. And you know how much it cost. You can see the price of the power that you pay for here in Ontario, versus other regions around the world. Thanks, Jan, for that question, and thanks for the viewers for that question.

Jan De Silva
That's great. We talked about the federal government announcing a number of climate policies and targets. To the panel at large: how do these announcements impact the sector, and is there more that government can be doing? Sujin, maybe just start there. We'll start with you about the announcements of the climate policies and targets.

Sujin Wren
Yeah, so I think it's a great announcement to see that we're going to pursue net-zero emissions by 2050. I do think hydrogen and nuclear are very compatible partners in this, and I'm going to kind of echo what Mike has already spoken about earlier, where to produce hydrogen, one of the, kind of, lead technologies methods is electrolysis, which is splitting water using electricity, and that produces hydrogen gas and oxygen. And that process is very clean. But you could also argue that it's only as clean as the electricity source that you're using as an input, and that's where nuclear comes into play. Nuclear provides that carbon-free electricity source to a carbon-free process of generating hydrogen. And that whole process is net-zero emissions. And so, that solution is very elegant, and can be used to get us to the 2050 net-zero target. The other advantage, specifically around nuclear and hydrogen, is in order to meet our decarbonization objectives, we will need to install quite a lot of hydrogen generation into our mix. And what better way to provide that electricity is through a large, reliable, low-cost baseload like nuclear. So, they pair very well together to try to reach that net-zero target.

In terms of what the government can do across Canada, I think there is opportunity across every province and every territory to participate in greenhouse gas emissions. You know, from the Green Panel Report, it's very clear that Canadians have a desire and want to act on climate change. And hydrogen provides this unique opportunity where we can really tackle so many different ways of reducing emissions across every province and territory, because there are so many ways you can generate hydrogen and use hydrogen. And I just want to talk about some of those examples.

So, in transportation, Mike mentioned you can look at decarbonizing trucking fleets. You can also go further and looking at shipping and trains, by converting them over to hydrogen-powered fuel cells. And that is, maybe, a better solution to batteries, specifically for those larger vehicles, where batteries just don't provide the energy density that you need. Mike also mentioned in the oil gas sector, you can look at using cleaner hydrogen as a feedstock, as well as in remote communities and mine sites in Northern Canada. You can also look at reducing reliability on diesel fuel by looking at different forms of hydrogen fuel, and you can make that hydrogen fuel from electrolysis, like I mentioned. But there's also alternatives like biomass gasification. In terms of the government, so what, so it's clear that hydrogen, it pairs very well as nuclear, and is a very elegant solution for getting us to net-zero 2050, but what I think we need from the government is we really need provinces and the federal government to collaborate, and really develop and set the stage for support of regulatory and policy frameworks so that we can advance hydrogen solutions across Canada.

You know, Mike noted on this, you know, we have all the building blocks to do that, here. So, we have Made-in-Canada hydrogen technologies that are made locally, we understand how to build up a clean electricity system, and then we also have engineering expertise like Hatch, which is a Canadian engineering firm. And if you kind of bundle those all together, we really have the building blocks and foundation to develop clean energy solutions that are really pan-Canadian.

Jan De Silva
That's great. I know that's music to Rocco's ears and my ears, because we've been proponents for breaking down inter-provincial trade barriers, and this would seem to, unintentionally, fall into that category. So, absolutely, the collaboration aspect is, is just critical for this to enable us with transportation networks that are, are national in nature. I think we've got time for one more question. The carbon reduction benefits of nuclear power are indisputable. However, risk management and attractiveness to business investment must consider wider applications related to net environmental impact. Bruce's plan to store waste in deep geological reserves were scuppered, and there's no plan in sight. My understanding is that Bruce on-site storage is reaching capacity. Mike, what is the plan for the next 50 years, and what impact will it have?

Michael Rencheck
Yeah. First, a few things. First, we believe in on-site storage, and, in terms of the canisters. There's plenty of capacity, there's plenty of capacity to store it for another 50 years, another 100 years. There's no, there's no issues there. The second piece of that is deep geological storage. That's a technology that's been proven around the world—countries like Finland and Sweden do it now; other countries like France recycle. So, that's typically a policy choice, in terms of how to handle it from a government perspective. The technologies are readily available and usable. And quite frankly, the footprint's quite small. When you consider other technologies, as I was saying, this little cube would represent the size and the amount of waste that you would create by using all the electricity for a year from nuclear. Match that with other, with other technologies that are only good for 20 years, and then you have to discard those solar panels, as an example. They're not recyclable. So, you've got millions and millions and millions of these panels. What are you going to do with them? They're going to find their way to the landfills, or worse, right? This is a technology where we know how to control the emissions—there are effectively zero emissions year-round—we know how to control the waste, we know how to manage it, we're a perfect building block for the next 50 years of energy, not only in Ontario, but throughout the world.

And we have to get past those old paradigms. There's a lot of paradigms being shaken now. And I'll, I will tell you, with the work that we're doing with our communities, we're going to be much more open in terms of being able to be inclusive of all members of society. We've got some great work going on right now in terms of partnering with the Saugeen Ojibwa Nation in our isotope production; they're going to be an equity investor. They're going to be able to have a partnership in the creation of solutions that save people's lives every day. They're also creating construction companies, and other businesses, now, to partner with us. And we see this going on over and over again, here in Bruce and Huron Counties, but also throughout Ontario, and then we see it throughout Canada. Especially, some of our partners like Cameco; over 50 percent of their employees are Indigenous. We think it's just a great opportunity for all Canadians, and we think it's a great opportunity to really take forward this initiative to get to net-zero by 2050. Like I said, some of these paradigms of the past have to be shaken. It's the same story for the last 50 years, or last 30 years, that have been said, in the last 30 years, we've made next to no progress in terms of mitigating climate change. Let's put forth a positive solution with something that works. We've proven it works right here in Ontario. It's a great model to keep building upon.

Jan De Silva
Well, I'm getting the wrap-up sign. I hate that. But unfortunately, it's all the time we have for this afternoon. Sujin, Bruce, Rocco, Mike, thank you for taking the questions, for sharing insights. As I turn things back over to Mike, I'm struck by this incredible, globally leading capability that we have, right here in Ontario and in Canada. This is the most scalable form of clean tech that exists, and it's really such a huge advantage for us. So, the more that we can amplify the important role that this can play in leading us to net-zero sooner, possibly, than the Canadian goals, and also helping the marketplace better understand the untapped potential of this capability that's right here in our own backyard, the better. With that, Mike, I want to turn things back to you. Thanks for a really engaging, important discussion today at the Empire Club.

Note of Appreciation and Concluding Remarks by Mike Van Soelen
Thanks, Jan, and thanks to all our panellists. Thanks to all those who submitted questions and engaged in this conversation. I do want to recognize our Lead Event Sponsor once again, Hydro One. And on behalf of Hydro One, I want to thank all of you who participated in this event. In some ways, it's a simple format—pull together a really interesting topic, and of course, getting to net-zero by 2050 and dealing with climate change is one of those compelling topics that is worthy of great discussion. And second, put a lot of smart people in a virtual room to talk it over. And we certainly did that today. Thanks to Mike Rencheck, Rocco Rossi, Bruce Wallace, and Sujin Wren for being here. And of course, thanks to our moderator, Jan De Silva,, for expertly guiding this discussion. So, on behalf of Hydro One, thanks to all who participated on the panel, and all those of you who watched from wherever you may be this afternoon. The Empire Club loves having these events. And, as I said, having conversations about important topics, with smart people to help unpack them. We have more events coming up. Please check out our website for ones coming up in the near future. Thanks to everyone. We greatly appreciated your time with us this afternoon. This meeting is adjourned. You