Ontario and the federal government have allocated a combined $3 billion toward the construction of Canada’s inaugural small modular reactors, a novel nuclear energy innovation to be situated adjacent to the Darlington power plant. Prime Minister Mark Carney, alongside Premier Doug Ford in Bowmanville, unveiled the new investment, designating the Darlington New Nuclear Project as a venture of national interest, thus expediting its progress.
The province will contribute $1 billion through the Building Ontario Fund, while Ottawa will inject $2 billion through the Canada Growth Fund for the development of the first four small modular reactors (SMRs) adjacent to Darlington Nuclear Station. Carney emphasized the significance of this initiative, stating that it positions Canada as a pioneer among G7 nations by introducing a groundbreaking nuclear reactor model. Describing it as a long-term commitment, he highlighted that the project will elevate Canada’s global prominence in sustainable energy.
Earlier this year, the Ford administration greenlit Ontario Power Generation (OPG) to commence construction on the initial small modular reactor (SMR) of the project. The overall project outlay was announced at $20.9 billion, with the initial reactor’s construction costs estimated at $7.7 billion. Once operational, the four SMRs will collectively generate 1,200 megawatts of power, sufficient to supply 1.2 million households, as per Carney.
The province’s power grid operator recently projected a 75% surge in electricity demand across Ontario by 2050. Ford expressed that the project will bolster Ontario’s economic competitiveness and resilience, particularly amidst U.S. trade tariffs. He underscored the employment opportunities, citing the creation of 18,000 jobs during construction and the sustenance of 3,700 positions annually for the next 65 years. Ford emphasized the government’s commitment to supporting local labor and industries by prioritizing Ontario-made products.
Carney outlined that the SMRs will inject $500 million into the Canadian supply chain annually, contributing over $38 billion to Canada’s GDP over the next six and a half decades. Construction of the SMRs is already in progress, with OPG funding the project through a mixture of internal funds and borrowing, recouping expenses by selling electricity to consumers over the project’s lifespan.
The Canadian Nuclear Safety Commission granted OPG a construction license for the first SMR earlier this year, with operations scheduled to commence in 2030. The ministry disclosed that approximately 80% of the project expenditure will benefit Ontario-based companies, with European and Asian firms receiving 15% and American companies 5%, primarily for the design and development of the BWRX-300 reactor model by GE Hitachi.
Ontario is poised to become the inaugural site worldwide for the BWRX-300, a compact rendition of GE Hitachi’s existing boiling water reactor technology.