Ontario and the Canadian government have allocated a combined $3 billion for the construction of the country’s inaugural small modular reactors (SMRs), a novel nuclear energy innovation to be erected 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 priority initiative meriting expedited processing. The province will contribute $1 billion from the Building Ontario Fund towards erecting the initial four SMRs next to Darlington Nuclear Station, while the federal government will provide $2 billion through the Canada Growth Fund, as stated by Carney.
Carney emphasized that this venture positions Canada as an energy powerhouse, pioneering the introduction of a novel nuclear reactor model within the G7. Labeling it as a strategic, forward-looking investment, Carney underscored its implications for bolstering Canada’s global standing in sustainable energy. Earlier this year, the Ford administration greenlit Ontario Power Generation (OPG) to commence construction on the first SMR under the project, with a total estimated project cost of $20.9 billion and an initial reactor construction cost of $7.7 billion.
Upon completion, the four SMRs are projected to generate 1,200 megawatts of electricity, capable of powering approximately 1.2 million households, Carney disclosed. Anticipated data from the province’s electricity system operator indicates a 75% surge in power demand across Ontario by 2050. Ford asserted that the project signifies a vital investment essential for enhancing Ontario’s economic competitiveness, resilience, and self-sufficiency amidst prevailing challenges such as U.S. tariffs.
Highlighting the employment potential, Ford stressed that the project will create 18,000 jobs during construction and support 3,700 jobs annually over the ensuing 65 years. He also emphasized the government’s commitment to prioritize local procurement, ensuring Ontario’s workforce benefits from the project’s expenditures. Carney projected that the SMRs would infuse $500 million annually into the domestic supply chain, with the cumulative economic impact from construction, operation, and maintenance of the units estimated to exceed $38 billion over 65 years.
Construction of the SMRs is already in progress, with OPG financing the endeavor through a mix of internal funds and debt, recouping costs through electricity tariffs. The Canadian Nuclear Safety Commission granted OPG a construction license for the first SMR earlier this year, with operations scheduled to commence in 2030. Ministry of Energy and Mines officials disclosed that the majority of project spending, approximately 80%, will benefit Ontario companies, with 15% allocated to European and Asian firms and 5% to U.S. enterprises, primarily for GE Hitachi’s BWRX-300 power plant model development.
Ontario is poised to become the global pioneer in deploying the BWRX-300 technology, a compact adaptation of GE Hitachi’s conventional boiling water reactor design.