Ontario and the federal government have jointly allocated $3 billion for the construction of Canada’s inaugural small modular reactors, a novel nuclear energy technology set to be situated adjacent to the Darlington power plant. Prime Minister Mark Carney, in collaboration with Premier Doug Ford, made the announcement in Bowmanville, highlighting the project’s inclusion in the national interest list for expedited approval.
The funding breakdown sees the province contributing $1 billion from the Building Ontario Fund, while the federal government is allocating $2 billion from the Canada Growth Fund towards the development of the first four small modular reactors (SMRs) near the Darlington Nuclear Station. Carney emphasized the significance of this initiative, positioning Canada as a pioneer among the G7 nations with this innovative nuclear reactor, heralding it as a substantial and forward-looking investment that will fortify Canada’s leadership in sustainable energy.
Earlier approval granted by the Ford administration to Ontario Power Generation (OPG) kickstarted the construction of the initial small modular reactor within the estimated $20.9 billion total project budget, with the first reactor’s construction costs pegged at $7.7 billion. Once operational, the four SMRs are projected to generate 1,200 megawatts of electricity, sufficient to power approximately 1.2 million households, aligning with the province’s anticipated 75% surge in power demand by 2050.
Ford underscored the transformative impact of the project on Ontario’s economic landscape, stating that it will enhance competitiveness, resilience, and self-sufficiency in the face of external challenges like U.S. tariffs. The initiative is expected to generate 18,000 employment opportunities during the construction phase and support 3,700 jobs annually over the next 65 years, with a strong emphasis on utilizing local resources to bolster Ontario’s workforce and economy.
Carney highlighted that the SMRs would inject $500 million annually into the domestic supply chain, contributing over $38 billion to Canada’s GDP over the project’s lifespan. Construction of the SMRs is currently underway, with OPG financing the project through a blend of internal resources and debt, recouping costs through electricity tariffs. The Canadian Nuclear Safety Commission has sanctioned OPG to commence construction, with the first reactor anticipated to be operational by 2030.
Notably, a vast majority of the project expenditure, around 80%, is earmarked for Ontario-based companies, with additional contributions going to European and Asian firms. Only a small portion, approximately 5%, is allocated to U.S. companies, primarily to GE Hitachi for the design and development of the BWRX-300 power plant model, marking Ontario as the pioneering site for this scaled-down iteration of GE Hitachi’s boiling water reactor technology.