AECL strikes agreement with Isowater to boost production, markets for heavy water

Collaboration between an Ontario high-tech company and Atomic Energy of Canada Ltd (AECL) is promising to open up a global marketplace for the recycling, upgrading and non-nuclear use of deuterium oxide (D20) – an enriched form of heavy water. Isowater Corp is expanding its collaboration with an agreement that will see the Collingwood ON-based company market and sell existing inventories and further develop a refinery system used for upgrading D2O to sell into a global market marked by dwindling supplies.

The collaboration has already resulted in contracts and increasing interest from companies in several industry sectors including the life sciences, pharmaceuticals, fibre optics and semiconductors. Companies in the US, Europe and elsewhere are pursuing both fresh supplies of D2O and upgrading of existing supplies based on technologies Isowater and AECL are developing using a Manitoba-based refinery system that will be able to produce hydrogen in large quantities.

Longer term, Isowater plans to scale up its production of D2O to enter the nuclear sector where far larger volumes of heavy water are required.

As the developer of CANDU nuclear reactor technology, AECL is one of the few developers of nuclear reactors to use heavy water in its power generation systems and is a major source of the key ingredient. It continues to conduct research into developing more efficient and environmentally benign methods for its production. Isowater has been collaborating with AECL since its founding in 2009 and sees the new agreement as a major step forward in cracking the global market.

"By stabilizing deuterium oxide supply and addressing the need for refining, I see tremendous growth opportunities," says Isowater president and CEO Andrew Stuart. "Working with (AECL's Hydrogen Isotopes Technology group) we're developing practical and innovative ways to make D2O and also working on selling into the market."

For AECL, the Isowater agreement marks a significant new shift in direction for the crown corporation — which is currently gravitating towards a government-owned, contractor-operated (Go-Co) management structure — highlighted by a strong private sector orientation and entry into new markets.

The restructuring of the agency has already resulted in the sale of its CANDU division to SNC Lavalin (R$, February 27/12).

"We have 12 technologies that are market ready and looking for partnerships … These are opportunities that go beyond the traditional relationship of the nuclear power sector in areas like sensing and robotics," says Walker. "This is a new model on the landscape that we haven't seen before … Government is about to take procurement to the next step."

Stuart says AECL's emphasis on private sector engagement is a welcome development that offers access to expertise and facilities typically beyond the reach of smaller firms.

"This is helping Canadian companies like ours connect with Canada's largest science and technology laboratory … We're excited with the potential ahead of us," he says. "It's a resource for Canadian companies to help improve the quality of product and how companies use it.

In addition to its collaboration with AECL, Isowater has used Export Development Canada's accounts receiveable insurance to support the sale of heavy water to China and has also tapped into support from the Industrial Research Assistance Program and Sustainable Development Technology Canada (SDTC).

The latter providing funding for Isowater's demonstration of a unique process – to produce heavy water and hydrogen from water electrolysis that is economically and environmentally superior. Initial markets targeted by the company are the US, UK, Germany, Switzerland, Japan, France and China.

"It's important that Canada has programs in place so that companies can utilize them to grow," says Stuart. "

R$