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 innovation to be erected adjacent to the Darlington power plant. Prime Minister Mark Carney, accompanied by Premier Doug Ford in Bowmanville, unveiled the funding initiative, designating the Darlington New Nuclear Project as a priority undertaking eligible for expedited processing.
The initiative will witness the construction of the initial four small modular reactors (SMRs) adjoining the Darlington Nuclear Station, with the province contributing $1 billion through the Building Ontario Fund, and Ottawa allocating $2 billion via the Canada Growth Fund, as outlined by Carney. Carney emphasized the significance of this venture, stating, “We are an energy superpower, and we are only getting stronger. This project will make us the first in the G7 to have an entirely new kind of nuclear reactor,” emphasizing that it is a crucial long-term investment to bolster Canada’s global leadership in sustainable energy.
Earlier this year, the Ford government granted Ontario Power Generation (OPG) the green light to commence construction on the inaugural small modular reactor (SMR) within the project. The total project expense was disclosed as $20.9 billion, with the initial reactor’s construction estimated at $7.7 billion. Upon completion, the four SMRs are projected to generate 1,200 megawatts of electricity, adequate to power 1.2 million households, according to Carney. The provincial electricity system operator forecasts a 75% surge in power demand across Ontario by 2050.
Ford expressed his optimism regarding the project, highlighting its potential to enhance Ontario’s economic competitiveness, resilience, and self-sufficiency amidst U.S. trade tariffs. The initiative is expected to create 18,000 employment opportunities during construction and sustain 3,700 jobs annually over the next 65 years. Ford emphasized the provincial commitment to supporting local labor and industries throughout the project’s lifecycle.
Carney outlined the economic benefits of the SMRs, indicating that they will inject $500 million annually into the Canadian supply chain. Moreover, the construction, operation, and maintenance of the four units are anticipated to contribute over $38 billion to Canada’s GDP over the subsequent 65 years.
Construction of the SMRs is already in progress, funded by OPG through a combination of internal resources and debt financing, with the costs to be recouped through electricity tariffs over time. The Canadian Nuclear Safety Commission granted OPG a construction license for the first SMR earlier this year, with operations slated to commence in 2030. The project’s financial distribution allocates approximately 80% of spending to Ontario-based entities, 15% to European and Asian firms, and 5% to U.S. companies, predominantly for the design and development by GE Hitachi of the BWRX-300 power plant model.
Ontario is set to pioneer the construction of the BWRX-300, a scaled-down iteration of GE Hitachi’s boiling water reactor technology, positioning the region at the forefront of nuclear innovation.