Ontario and the federal government have allocated a combined $3 billion investment towards constructing Canada’s inaugural small modular reactors, a novel nuclear energy technology set to be situated adjacent to the Darlington power station. Prime Minister Mark Carney, in collaboration with Premier Doug Ford in Bowmanville, unveiled the funding commitment, designating the Darlington New Nuclear Project as a venture of national significance meriting expedited implementation.
The province is earmarking $1 billion from the Building Ontario Fund for the establishment of the first four small modular reactors (SMRs) near Darlington Nuclear Station, while the federal government is contributing $2 billion through the Canada Growth Fund, as per Carney’s announcement. Carney emphasized the transformative impact of this initiative, asserting Canada’s ascendancy as a global energy powerhouse by pioneering a groundbreaking nuclear reactor technology within the G7 nations.
Earlier this year, the Ford administration granted Ontario Power Generation (OPG) authorization to commence construction on the initial small modular reactor (SMR) under the project, with the overall project cost cited at $20.9 billion, and the construction cost for the first reactor estimated 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 highlighted by Carney.
Ford expressed optimism regarding the project’s potential to enhance Ontario’s economic competitiveness, resilience, and self-sufficiency amidst U.S. trade tariffs. The undertaking is expected to create 18,000 employment opportunities during construction and sustain 3,700 jobs annually over the next 65 years, with a strong emphasis on utilizing Ontario-based products to support the local workforce, Ford emphasized.
Carney further underscored the economic benefits of the SMRs, predicting an annual injection of $500 million into the Canadian supply chain, alongside a projected contribution of over $38 billion to Canada’s GDP over the next 65 years through the construction, operation, and maintenance of the four units.
Construction of the SMRs is already in progress, with OPG financing the project through a combination of internal funds and debt, which will be recouped over the project’s lifespan via electricity charges to consumers. The Canadian Nuclear Safety Commission granted OPG a construction license for the first SMR earlier this year, with operations slated to commence by 2030. Notably, the majority of the project expenditure is anticipated to benefit Ontario-based companies, with a minor share allocated to European, Asian, and U.S. firms, primarily for GE Hitachi’s BWRX-300 model development.
Ontario is poised to pioneer the construction of the BWRX-300, a compact iteration of GE Hitachi’s existing boiling water reactor technology, marking a significant milestone in nuclear energy innovation.