N.B. Energy Minister Jack Keir said earlier this week a letter of intent with France's Areva was very close. An energy announcement is slated for Thursday where Areva officials are expected to attend. (CBC)The New Brunswick government and France's Areva will reveal their possible energy future together at a news conference on Thursday in Saint John.

Premier Shawn Graham will be visiting an energy conference on Thursday for an energy announcement and senior officials with the French nuclear giant will also be at the conference.

Energy Minister Jack Keir has made no secret the two sides were close to signing a letter of intent toward building a second nuclear reactor next to NB Power's Point Lepreau Nuclear Generating Station as the centrepiece of a green energy park, which could include solar, offshore wind and biomass projects.

Graham was asked on Wednesday whether the New Brunswick government would offer any financial incentives to land Areva, such as loan guarantees.

"Where there are opportunities where we can see investments made in the province, as a government, we have a responsibility to search those out," Graham said.

"You know some are very extensive in discussions and some are very preliminary. We'll have to wait until [Thursday's] announcement as to what stage we are at."

While touting the economic benefits that would come with a new plant, even the province's energy minister has cautioned that a letter of intent is a long way from a contract to build a new reactor.

2nd pitch for reactor

When the Point Lepreau reactor was approved in the 1970s, the site was licensed for more than one nuclear facility. (CBC)This is the second time that Areva has courted the New Brunswick government to offer its nuclear expertise.

When the Liberal government was last in the market for a second nuclear reactor both Areva and Atomic Energy of Canada Ltd., which was joined by a consortium of private sector companies, pitched nuclear reactors.

New Brunswick signed an agreement with AECL and its Team Candu New Brunswick partners to allow them to build a merchant nuclear reactor next to the existing Point Lepreau reactor and sell the power into the eastern United States.

Team Candu New Brunswick had released a feasibility study showing the project would work and had begun lining up potential investors in the United States.

The project was shelved recently as AECL problems continued to mount in the $1.4-billion Point Lepreau refurbishment project. AECL is more than a year behind schedule in refurbishing Atlantic Canada's only nuclear reactor.

Financial concerns

Green Party Jack MacDougall has criticized the timing of the Areva talks and his party has condemned the idea of a second nuclear reactor in New Brunswick (CBC)Political parties and an environmental group have already lined up to oppose the Areva discussions.

David Coon, the policy director of the Conservation Council, said he's concerned that any potential arrangement with Areva is likely to come with financial help.

"There isn't a nuclear plant on the planet that has been built without some kind of public money and public concessions," Coon said.

The merchant nuclear power plant model would have Areva build the reactor and sell the power privately to recoup its investment.

The New Brunswick government, similar to how the AECL arrangement had been conceived, could invest in the project if it wanted to reap some of the potential profits.

The Point Lepreau site was approved for more than one site when it received its environmental permitting in the 1970s.

The Progressive Conservatives and Green Party have both blasted the Areva talks as political theatre considering the provincial election is to be held on Sept. 27.

The Tories have also explored the idea of setting up a second reactor in the province.

However, Green Party Leader Jack MacDougall said his party is opposed to the concept of building another reactor in the province.

New Brunswick's energy minister said it was Areva that approached the provincial government again seven months ago and he would not apologize for the timing.