Ontario and the Canadian government have allocated a combined $3 billion for the development of Canada’s inaugural small modular reactors, a novel nuclear energy technology set to be constructed adjacent to the Darlington power facility.
During a recent event in Bowmanville, Prime Minister Mark Carney, together with Premier Doug Ford, unveiled the funding for the Darlington New Nuclear Project, which Carney has identified as a crucial initiative for national advancement, thus expediting its progress.
The province intends to contribute $1 billion from the Building Ontario Fund towards erecting the first of four small modular reactors next to the Darlington Nuclear Station, with the federal government chipping in $2 billion through the Canada Growth Fund, as per Carney’s announcement.
Carney emphasized the significance of this endeavor, stating that it positions Canada as a frontrunner in clean energy by pioneering a groundbreaking nuclear reactor within the G7 nations, marking a substantial and forward-looking investment for the country.
Earlier this year, Ontario Power Generation (OPG) received approval from the Ford administration to commence construction on the initial small modular reactor (SMR) for the project, with the total estimated project cost standing at $20.9 billion, and the construction cost for the first reactor estimated at $7.7 billion.
Once operational, the four SMRs are projected to generate 1,200 megawatts of electricity, equivalent to powering approximately 1.2 million households, according to Carney’s statements.
Notably, the province’s electricity grid operator forecasts a 75% surge in power demand across Ontario by 2050.
Ford expressed optimism about the venture, highlighting its potential to bolster Ontario’s economic competitiveness, resilience, and self-sufficiency amid challenges like U.S. trade tariffs. He emphasized that the project will create 18,000 jobs during construction and support 3,700 jobs annually over the next 65 years, emphasizing the utilization of Ontario-made products to support local workers.
The small modular reactors are anticipated to inject $500 million annually into the national supply chain, contributing over $38 billion to Canada’s GDP over the subsequent 65 years through their construction, operation, and maintenance.
Construction activities for the SMRs are already in progress, with OPG financing the project through a combination of internal funds and borrowing, intending to recoup costs over the project’s lifespan by charging consumers for electricity. The Canadian Nuclear Safety Commission granted OPG a construction permit for the first SMR earlier this year, with the unit expected to be operational by 2030.
According to Ministry of Energy and Mines briefings, nearly 80% of the project spending will be allocated to Ontario-based companies, with another 15% going to firms in Europe and Asia, and only 5% to U.S. companies primarily for the design and development of the BWRX-300 power plant model by GE Hitachi, the technology being utilized for the new project in Ontario. This initiative will position Ontario as the pioneer in implementing the BWRX-300, a compact iteration of GE Hitachi’s existing boiling water reactor technology.
