Canadian government announces nuclear investments

Minister of Energy and Natural Resources Jonathan Wilkinson announced that the government had entered into a preliminary agreement with AtkinsRéalis to finance up to half of the design costs of a “new, large-scale, natural uranium-fuelled Canadium deuterium nuclear reactor (e.g. Monark)” to a maximum of CAD304 million, through a loan over four years. This is to be matched by AtkinsRéalis. Atomic Energy of Canada Ltd (AECL), plant operators and the broader Canadian supply chain will also be included in the work to modernise the Candu design.

The Candu pressurised heavy water reactor design was developed from the 1950s onwards by federal Crown corporation AECL. AECL sold its reactor division to SNC-Lavalin’s Candu Energy subsidiary in 2011 – along with an intellectual property licensing agreement – but still owns the intellectual property rights for the technology. AtkinsRéalis is the original equipment manufacturer of Candu technology (SNC-Lavalin Group Inc rebranded to AtkinsRéalis in 2023).

AtkinsRéalis unveiled its plans for the 1000 MW Candu Monark, a Generation III+ reactor with the highest output of any Candu technology, in November 2023. It completed the conceptual design phase in September 2024, and is in the planning stage of a vendor design review with the Canadian nuclear regulator.

Candu reactors currently operate in seven countries, and Wilkinson noted that, with their “almost entirely Canadian-made, Canadian-designed supply chain”, they provide “good-paying, long-lasting, and sustainable jobs in manufacturing for Canadians” as well as being fuelled by uranium mined in Saskatchewan. “The Government of Canada is acting now to modernise Canadian-owned Candu technology, which will provide a viable, cost-effective design in support of the expansion of nuclear energy capacity in Canada and internationally,” he said.

AtkinsRéalis President and CEO Ian Edwards said the company has been the “proud steward” of Candu technology for more than a decade, and with its Candu supply chain partners has serviced, life-extended and refurbished Candu nuclear reactors on time and on budget as well as advancing the prospects for new Candu reactors. “The federal government’s decision today, to invest in the further development of Candu technology, an evolution of the proven Darlington reactor model, will enable us to continue this important work already underway with our utility partners,” he said.

SMR collaborations

 

Wilkinson also announced further funding for nuclear projects under Environment and Climate Change Canada’s Future Electricity Fund, on behalf of Minister of Environment and Climate Change Steven Guilbeault, plus a total of CAD52.4 million for various projects supporting the development and deployment of SMRs and Candu reactors and decarbonisation efforts in Saskatchewan, Alberta and Ontario under two Natural Resources Canada programmes.

The Future Electricity Fund mainly consists of proceeds collected from electricity-generating facilities which are being returned through funding agreements with provincial or territorial governments for which the federal carbon pollution pricing system for industry currently applies, or has applied in the past, to support clean electricity initiatives.

CAD55 million from the fund has been awarded to Ontario Power Generation (OPG) to support pre-development work for the Darlington New Nuclear Project, where the company plans to build up to four GE Hitachi BWRX-300 small modular reactors. Specifically, these funds are to be used for planning, site preparation, various procurements and regulatory approvals for units 2, 3 and 4 at the site. OPG signed a commercial contract for the first of the four SMR units in January 2023.

He also announced an increase to Future Electricity Fund programme funding to the Saskatchewan Government’s Crown Investments Corporation by CAD54 million to CAD80 million, to support of SMR pre-development work by SaskPower. The funding will support pre-engineering work and technical studies, environmental assessments, regulatory studies and community and Indigenous engagement.

Three projects will receive a total of CAD11.4 million under Natural Resources Canada’s Enabling SMRs programme: the University of Western Ontario is to receive nearly CAD5 million to conduct a detailed study of TRISO-based used fuel properties and characteristics; Canadian Nuclear Laboratories will receive just over CAD3.5 million for a project on developing guidelines, strategies and standards for SMR deployment to support the Canadian nuclear industry; and the Saskatchewan Industrial and Mining Suppliers Association will receive CAD2.8 million for a project to evaluate the capabilities of the existing supply chain in Saskatchewan to support SMRs.

Under Natural Resources Canada’s Electricity Predevelopment Program, four projects in Alberta will receive funding totalling CAD41 million, including CAD13 million to develop an assessment of the potential suitability of three locations in Alberta as potential host locations for SMR deployment and increase public and Indigenous community understanding and awareness of SMRs and nuclear power generation.

“Nuclear is an integral part of Canada’s resilient and independent energy future, and Candu technology is helping us get there – while creating good domestic jobs and supporting international Canadian energy exports,” Wilkinson said.

“By advancing innovative projects like Monark reactors, this government is reinforcing our commitment to domestically sourced and processed uranium, which is creating good-paying jobs in Ontario and throughout the country. And through investments in the Darlington New Nuclear project and SMRs in Alberta, we are providing a powerful example of how public and private sectors can work together to enhance energy security; advance cutting-edge, made-in-Canada nuclear technologies; and deliver a clean and reliable energy future.”