Ontario begins construction on first small modular reactor in G7

Investing.com -- Ontario has commenced construction on the first of four small modular reactors (SMRs) at the Darlington nuclear site, marking a significant stride in clean, reliable energy production. The Ontario government and Ontario Power Generation (HM:PGV) (OPG) are leading this initiative, which is expected to surge electricity demand by at least 75% by 2050. This pioneering SMR will be the first of its kind in the G7, producing enough electricity to power about 300,000 homes.

The construction of these four units aligns with the government’s strategy to safeguard Ontario’s workers and economy. This project is estimated to create up to 18,000 Canadian jobs, infuse an average of $500 million annually into Ontario’s economy, and contribute $38.5 billion to Canada’s GDP over the next 65 years. The government and OPG have also ensured that 80% of project spending will be directed to Ontario companies and that the operation will sustain about 3,700 jobs for the next 65 years.

The SMRs will generate 1,200 megawatts (MW) of electricity, enough to power 1.2 million homes, and will be crucial for powering new homes and fueling a thriving economy. The BWRX-300, a small-scale nuclear reactor, uses commercially available uranium to generate power and will be instrumental in bridging a power gap that could emerge in the early 2030s without new baseload power sources.

The Ontario government and OPG are collaborating with power companies in Alberta, Saskatchewan, and New Brunswick to deploy SMRs in their jurisdictions. They have also secured job-creating agreements that will build SMRs globally using Made-In-Ontario components.

The Ontario Independent (LON:IOG) Electricity System Operator (IESO) concluded that the Darlington New Nuclear Project is the best option to meet growing demand when compared against non-emitting generation alternatives. This conclusion, combined with OPG’s successful track record on the Darlington Refurbishment Project, factored into the government’s decision to support the new project.

The government is backing OPG’s $20.9 billion budget for the Darlington New Nuclear Project, which includes site preparation, engineering, design work, and construction of all four SMRs. OPG will continue to build respectful, collaborative relationships with the Williams Treaties First Nations communities, exploring potential opportunities for their equity partnership in the project.

The first SMR will cost $6.1 billion, with an additional $1.6 billion for systems and services common to all four SMRs. Costs are expected to decline with each subsequent unit. OPG began site preparation for the first SMR in December 2022, and received a Licence to Construct (LTC) for Unit 1 from the Canadian Nuclear Safety Commission (CNSC) in April 2025.

The construction of the Darlington New Nuclear Project SMRs is part of Ontario’s Affordable Energy Future, the government’s vision for rising energy demand. This project is a significant step towards creating a clean, reliable, and affordable energy future for Ontario.