Ontario and the federal government have allocated a combined $3 billion for the establishment of Canada’s inaugural small modular reactors, a novel nuclear energy technology set to be constructed adjacent to the existing Darlington power plant. Prime Minister Mark Carney, together with Premier Doug Ford in Bowmanville, declared the new funding, including the Darlington New Nuclear Project, as a national interest endeavor, thus qualifying for expedited processing.
The province is set to contribute $1 billion through the Building Ontario Fund, while Ottawa will inject $2 billion through the Canada Growth Fund towards the construction of the initial four small modular reactors (SMRs) near the Darlington Nuclear Station. Carney emphasized the significance of this project, noting that it positions Canada as a pioneer in the G7 with a groundbreaking nuclear reactor, portraying it as a strategic and forward-thinking investment in clean energy, further solidifying Canada’s global leadership.
Earlier this year, the Ontario government greenlit Ontario Power Generation (OPG) to commence the development of the first SMR under the project. The total project cost was disclosed at $20.9 billion, with an estimated construction cost of the initial reactor pegged at $7.7 billion. Upon completion, the four SMRs are projected to generate 1,200 megawatts of electricity, adequate to power approximately 1.2 million households, as stated by Carney.
Notably, the province’s electricity system operator anticipated a 75% surge in power demand across Ontario by 2050. Ford highlighted the project’s transformative impact on Ontario’s economy, enhancing competitiveness, resilience, and self-reliance amidst economic challenges such as U.S. tariffs. The initiative is expected to create 18,000 jobs during construction and sustain 3,700 jobs annually for the next 65 years, with an emphasis on utilizing local resources to support the workforce.
Carney outlined that the SMRs will infuse $500 million annually into the Canadian supply chain, with the overall economic contribution, including construction, operation, and maintenance of the four units, projected to exceed $38 billion to Canada’s GDP over the next 65 years. Construction of the SMRs is already in progress, with OPG financing the project through a mix of available funds and debt, recuperating costs through electricity charges to consumers over the project’s lifespan.
The Canadian Nuclear Safety Commission granted OPG a license to commence construction of the first SMR earlier this year, with operations expected to commence in 2030. The majority of the project spending, approximately 80%, will be directed to Ontario-based companies, with 15% allocated to European and Asian firms, and only 5% to U.S. companies, primarily for the design and development of the BWRX-300 power plant model by GE Hitachi.
Ontario is poised to become the inaugural location worldwide to implement the BWRX-300, a scaled-down iteration of GE Hitachi’s existing boiling water reactor technology, marking a significant milestone in advancing nuclear energy capabilities.