Ontario and the federal government have committed $3 billion to construct Canada’s inaugural small modular reactors, a novel nuclear energy technology to be situated adjacent to the Darlington power plant. Prime Minister Mark Carney, alongside Premier Doug Ford in Bowmanville, unveiled the funding, designating the Darlington New Nuclear Project as a priority endeavor, thus expediting its progress.
The funding structure entails the province contributing $1 billion through the Building Ontario Fund for the initial construction of four small modular reactors (SMRs) near the Darlington Nuclear Station, with an additional $2 billion from Ottawa through the Canada Growth Fund. Carney emphasized the significance of this initiative, proclaiming it as a transformative investment that will establish Canada as a pioneer in clean energy within the G7 nations.
Earlier this year, the Ford administration authorized Ontario Power Generation (OPG) to commence construction on the first SMR of the project, with the total estimated project cost announced at $20.9 billion, including $7.7 billion for the initial reactor construction. Upon completion, the four SMRs are projected to generate 1,200 megawatts of electricity, adequate to power 1.2 million households, as per Carney.
Ford expressed his optimism regarding the project’s economic benefits, citing its role in enhancing Ontario’s competitiveness and resilience amidst trade challenges. The development is expected to create 18,000 jobs during construction and sustain 3,700 positions annually over the next 65 years, with an emphasis on supporting local industries and workers with Ontario-produced materials.
Carney highlighted the economic impact of the SMRs, projecting an annual injection of $500 million into the Canadian supply chain, while the cumulative contribution to Canada’s GDP over the ensuing 65 years from construction, operation, and maintenance of the four units is estimated to exceed $38 billion. The initiative aims to bolster Ontario’s nuclear energy capacity, with plans for expansion across the province.
Construction of the SMRs is already underway, with OPG financing the project through a combination of internal funds and debt, with recovery planned through electricity tariffs over the project’s lifespan. The Canadian Nuclear Safety Commission granted OPG a construction license for the first SMR earlier this year, with operations expected to commence in 2030. Notably, a significant portion of the project expenditures is allocated to Ontario-based companies, showcasing a commitment to local economic participation.
Ontario’s adoption of the GE Hitachi BWRX-300 small modular reactor technology for this project positions the province as a global leader, setting a precedent for the technology’s utilization. The endeavor signifies a substantial advancement in Canada’s clean energy landscape and economic development.
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