Canada Invests in the Next Generation of Canadian-Made, Clean, Affordable Nuclear Energy

CAMBRIDGE, ON, March 5, 2025 /CNW/ - Nuclear energy plays a pivotal role in the Canadian energy supply, contributing vital non-emitting electricity to the grid in Canada. That's why the Government of Canada has been making strategic investments in nuclear energy at a time when there is a need for a resilient and secure energy supply and to ensure that Canada remains a global leader in the industry. Canada's homegrown CANDU technology serves as the backbone of its nuclear fleet and has been exported globally to support our allies to achieve energy security, all while creating good jobs here at home.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced that the Government of Canada has entered into a preliminary agreement with AtkinsRéalis to support the development and modernization of a new, large-scale, natural uranium–fuelled Canadian deuterium uranium (CANDU) nuclear reactor (e.g. MONARK). The intent is to lend AtkinsRéalis a maximum of $304 million over four years to finance half of the design project. This modernization work will also include Atomic Energy of Canada Limited (AECL), the operators and the broader Canadian supply chain. Specifically, AECL owns the CANDU intellectual property and is working with AtkinsRéalis to leverage it for success in today's energy markets. 

CANDU reactors maintain an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies, and they provide good-paying, long-lasting and sustainable jobs in manufacturing for Canadians. They are also fuelled by uranium mined in Saskatchewan without the need for enrichment. As countries look to secure safe sources of clean energy, demand for Canadian nuclear is growing. The Government of Canada is acting now to modernize 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. 

In addition to investing in this foundational, domestic, large-scale nuclear technology, Canada is also leveraging opportunities for international collaboration on emerging technologies, including small modular reactors (SMRs). Minister Wilkinson, on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change, also announced $55 million in funding from Environment and Climate Change Canada's Future Electricity Fund (FEF) to support Ontario Power Generation's Darlington New Nuclear Project. The next phase of the Darlington project will focus on advancing three new GE Hitachi BWRX-300 SMRs, which produce zero greenhouse-gas emissions during operation. As each GE Hitachi BWRX-300 SMR produces about 300 megawatts of electricity, the three SMRs together could supply enough electricity needed to power about 900,000 homes. The Minister also announced that the FEF has increased program funding from $24 million to $80 million to the Saskatchewan Government's Crown Investments Corporation in support of SaskPower's SMR pre-development work. It will support pre-engineering work and technical studies, environmental assessments, regulatory studies and community and Indigenous engagement to help advance this important project.

Minister Wilkinson also highlighted a total investment of $52.4 million for various projects supporting the development and deployment of SMRs and CANDU reactors and decarbonization efforts in Saskatchewan, Alberta and Ontario. Saskatchewan and Ontario are already nuclear energy leaders, and this investment will help bolster their presence for the benefit of Canada while helping develop new capacity in Alberta. The funding includes $11.4 million from the Enabling SMRs Program for three projects and $41 million for four projects under NRCan's Electricity Predevelopment Program.

These significant investments highlight how the Government of Canada is working closely with the private sector and Canadian utilities and systems operators to meet the demands of increased clean electrification. Building on its foundational investment in CANDU technology, as well as emerging SMR opportunities, the Government of Canada will continue working with partners as we look to develop a comprehensive approach to nuclear energy policy for the country and act as an energy supplier of choice for the world.

Quotes

"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. 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." 

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

"Canada's power sector has made significant progress in driving down emissions while expanding carbon-free power generation from renewables and nuclear — including by phasing out coal-fired electricity generation and scaling energy storage. I congratulate our partners on the investments announced today, which represent a strong step forward for the economy, for jobs and for climate action. Together, with provinces and territories, Indigenous Peoples, municipalities, utilities and workers, we are building a historic amount of clean, affordable and reliable electricity to power Canada into the future." 

The Honourable Steven Guilbeault
Minister of Environment and Climate Change

"This investment is a massive step forward for Cambridge and Canada. BWXT's work will be critical in easing the nation off fossil fuels as demand on our grid increases. The expansion of its facility and investment in advanced equipment ensure that BWXT will continue to be at the forefront of Canada's nuclear program. BWXT is a vital partner to our government, and I look forward to our continued work together." 

Bryan May
Parliamentary Secretary to the Prime Minister and Member of Parliament for Cambridge 

"We are honoured to have the full faith and confidence of the Government of Canada in continuing our development of proven home-grown CANDU technology. For over a decade, we have been the proud steward of CANDU technology, successfully meeting the world's growing low-carbon energy needs. With our CANDU-based supply chain partners, we have serviced, life-extended and refurbished CANDU nuclear reactors on time and on budget and advanced 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. Advancing CANDU technology creates economic value for the country and Canadians; ensures energy security at this critical time; improves health outcomes through the creation of more cancer-fighting isotopes; builds stronger and more resilient relationships with Indigenous Peoples, workers and communities; and — above all —maintains Canada's status as a Tier-1 nuclear nation." 

Ian Edwards 
President and Chief Executive Officer, AtkinsRéalis 

"Ontario has built a strong, homegrown nuclear energy supply chain that supports tens of thousands of good-paying jobs across the province. In the face of tariff threats from our closest trading partner, we are securing these jobs for generations with major refurbishment and expansion projects, helping to deliver the clean, reliable and affordable power that families and businesses need." 

The Honourable Stephen Lecce
Minister of Energy and Electrification of Ontario 

"As first mover in the G7 on small modular reactors, OPG's Darlington New Nuclear Project will create approximately 17,000 jobs in Ontario and 10,000 more across Canada during manufacturing and construction. The Darlington SMR project will further cement Ontario and Canada's robust nuclear supply chain, creating additional growth opportunities domestically and internationally, as jurisdictions seek to increase energy security and reliability."

Nicolle Butcher
President and CEO, Ontario Power Generation

Quick Facts

• The intellectual property for CANDU technology continues to be owned by the Government of Canada for the benefit of all Canadians, with AtkinsRéalis as the exclusive licensee of the intellectual property portfolio. CANDU technology has operated in Canada since the Nuclear Power Demonstration reactor at Rolphton went online in 1962, providing decades of safe operations and clean power.  
• Environment and Climate Change Canada's Future Electricity Fund mainly consists of proceeds collected from electricity-generating facilities covered by the federal Output-Based Pricing System (OBPS). These proceeds 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.

Related Information

• Backgrounder: Canada Invests in the Next Generation of Canadian-Made, Clean, Affordable Nuclear Energy
• Canada's clean electricity future 
• The Canadian Nuclear Energy Technology
• Powering Canada Forward: A vision for a clean, affordable, and reliable electricity system for every region of Canada

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SOURCE Natural Resources Canada