Ontario and the federal government have allocated a combined $3 billion for the construction of Canada’s inaugural small modular reactors, a novel nuclear energy technology set to be situated adjacent to the Darlington power plant.
During a joint announcement in Bowmanville, Prime Minister Mark Carney and Premier Doug Ford revealed the new initiative, which has been added to Carney’s list of projects considered to be in the national interest and thus prioritized for accelerated development.
The funding breakdown includes $1 billion from the province through the Building Ontario Fund and $2 billion from Ottawa through the Canada Growth Fund, as stated by Carney. Describing the venture as a significant advancement, Carney emphasized the project’s strategic importance, highlighting Canada’s position as an energy powerhouse.
The project will encompass the construction of four small modular reactors (SMRs) next to the Darlington Nuclear Station, with the Ontario Power Generation (OPG) granted approval earlier this year to commence work on the first SMR. The total project cost, announced at $20.9 billion, will feature an initial reactor construction expense of $7.7 billion.
Upon completion, the four SMRs are projected to generate 1,200 megawatts of electricity, sufficient to power approximately 1.2 million households, according to Carney. Anticipating a 75% surge in power demand by 2050, the province’s electricity system operator has underlined the necessity for augmented power generation.
Ford expressed optimism regarding the project’s potential to enhance Ontario’s economic competitiveness and resilience, especially in light of prevailing economic uncertainties and tariffs. The construction phase is expected to create 18,000 jobs and support 3,700 positions annually over the next 65 years, with a focus on utilizing local resources and supporting Ontario’s workforce.
Carney emphasized the far-reaching economic benefits of the SMR project, estimating an annual injection of $500 million into the Canadian supply chain and an overall contribution of over $38 billion to Canada’s GDP over the project’s lifespan.
Construction of the SMRs is already in progress, with OPG financing the endeavor through a mix of existing funds and debt, with cost recovery planned through electricity charges. The Canadian Nuclear Safety Commission has granted OPG a construction license for the first SMR, with operations slated to commence in 2030.
An estimated 80% of the project expenditure will be directed to Ontario-based companies, with an additional 15% allocated to firms from Europe and Asia, and a marginal 5% to U.S. companies, predominantly for the development of the BWRX-300 reactor model by GE Hitachi.
Ontario is poised to pioneer the deployment of the BWRX-300 technology, a compact iteration of GE Hitachi’s existing boiling water reactor design, positioning the province at the forefront of nuclear innovation.
