Canada is moving forward with plans to build its first small modular reactors (SMRs) as part of a strategy to enhance clean energy production. The federal government and Ontario are investing a total of $3 billion in this initiative, which aims to create simpler and more affordable nuclear energy solutions. Prime Minister Mark Carney and Ontario Premier Doug Ford made the announcement at an energy facility in Bowmanville, Ontario.

Carney stated that the federal government will contribute $2 billion to the project, emphasizing the need for Canada to take control of its energy future. "The trade war is causing massive economic uncertainty, holding back investment and costing jobs here in Ontario. This is not a transition. It is a rupture. To confront the challenges, to emerge stronger, Canadians must chart a new course," Carney said. He urged Canadians to invest in their future and strive for success.

The Ontario government previously announced plans to construct the first SMR in Clarington, located east of Bowmanville. Four reactors will be built at the Darlington nuclear site, which is expected to generate electricity for the province. Premier Ford described the investment as a "down payment on Ontario’s nuclear future," stating that it would enhance the province's economic competitiveness and resilience against U.S. tariffs.

The project will see Ontario Power Generation (OPG) receive $1 billion from the province's Building Ontario Fund, while the federal government will allocate $2 billion through the Canada Growth Fund. The SMRs are projected to produce 1,200 megawatts of electricity, enough to power approximately 1.2 million homes. With Ontario's electricity demand expected to rise by 75% by 2050, the SMRs are seen as a crucial part of the province's energy strategy.

Construction on the first SMR began in May, with an estimated total project cost of $20.9 billion. The initial reactor's construction is projected to cost $7.7 billion, funded through a combination of OPG's cash reserves and debt. The first SMR is anticipated to be operational by 2030.

The SMR project is expected to inject $500 million annually into the Canadian supply chain and contribute $38.5 billion to Canada’s GDP over the next 65 years. Approximately 80% of the project spending is expected to benefit Ontario companies, with the remaining funds allocated to European and Asian firms.

Small modular reactors are designed to be smaller and more efficient than traditional nuclear reactors, with enhanced safety features. They can generate up to 300 megawatts of electricity, which is about one-third of the capacity of larger nuclear plants. SMRs can be constructed off-site and transported to their final location, potentially reducing construction costs and time.

Despite the optimism surrounding SMRs, critics have raised concerns about the technology. The Canadian Environmental Law Association has argued that investing in SMRs may divert attention from renewable energy sources that are more socially acceptable and cost-effective. They caution that SMRs could create new forms of radioactive waste before Canada has a long-term solution for existing waste.

The Ontario government is also collaborating with other provinces, including Alberta, Saskatchewan, and New Brunswick, to explore the deployment of SMRs in their regions. New Brunswick has plans to introduce SMRs at the Point Lepreau Nuclear Generation Station by 2035.

As Canada embarks on this ambitious nuclear energy project, it aims to position itself as a leader in the emerging SMR technology market, which is projected to be worth $150 billion annually by 2040. The successful implementation of SMRs could significantly impact Canada’s energy landscape and contribute to its low-carbon future.