TC Energy Corp. (TRP.TO): Bruce Teach-In - Nuclear to Support 2030+ Growth

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TC Energy Corp. (TRP.TO): Bruce Teach-In - Nuclear to Support 2030+ Growth

Goldman Sachs TC Energy Corp. (TRP.TO)

risk, and 4) ensuring a competitive return on capital will be generated. The first

point remains a major focus for management, as the team was resolute that a

fully complete design is required before both FID and long-lead item

procurement (given change orders during construction have historically been

the root cause of newbuild nuclear project cost overruns). Interestingly, the

company noted construction could run from 2033-2045 (we acknowledge the

likelihood for the company to pursue the project in phases), though the license

to operate milestone target was mid-2041, a bit later than we had expected of

late-2030s. All that said, management noted the potential for the timeline to

accelerate, and noted that the targeted regulated framework would allow the

company to begin earning a return throughout the construction period.

o Nuclear technology still to be determined - SMRs unlikely: While Bruce sites

A and B utilize the native-to-Canada CANDU nuclear technology, management

noted they are still evaluating which nuclear technology could be used for

Bruce C. We note CANDU and AP1000s appear to be in the running, per

management commentary, though management explicitly noted they do not

see small modular nuclear reactors (SMRs) as suitable for this site (the design

for SMRs is still evolving, and management expects large-scale reactors to

better utilize the inherent benefits of low seismicity, freshwater access,

distribution capacity, local support, etc., at the Bruce site vs small scale

reactors.

o Bruce C site is well-situated for growth given labor, geography and local

support. Management highlighted benefits on the Bruce site from low