Canada has announced around C$450 million in new subsidies for nuclear energy, including the reallocation of funds collected from industrial emitters of greenhouse gases, in what the government frames as a bid to enhance energy security and reliability.
Ottawa will lend AtkinsRéalis, formerly SNC-Lavalin Group, C$304 million over four years to finance the development and modernization of a new Canadian deuterium uranium (CANDU) nuclear reactor named MONARK, Energy and Natural Resources Minister Jonathan Wilkinson said in a news release.
But a leading nuclear critic told The Energy Mix the new subsidies will be far from sufficient to bring the new design to life, and the new design is years if not a decade or more away from going into service.
Domestic Uranium and Job Creation
The move “will provide a viable, cost-effective design in support of the expansion of nuclear energy capacity in Canada and internationally,” while maintaining “an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies,” the news release states.
CANDU reactors are fuelled by natural uranium mined in Saskatchewan without the need for enrichment, which would have to be done elsewhere.
In the news release, Ottawa emphasized a commitment to domestically sourced and processed uranium, citing its importance for creating jobs in Ontario and across Canada.
Nuclear Cost Concerns
But nuclear is also by far the most expensive way to generate electricity, Susan O’Donnell, an adjunct research professor at St. Thomas University who studies energy transitions in Canada, told The Mix. Ottawa’s funding is “nowhere near the amount” needed to fully develop and build reactors, she said, adding that it will take years to develop the MONARK design toward applying for a licence to build.
O’Donnell pointed to two similar reactors that just came online in Georgia, United States, at a cost of US$35 billion, compared to just $4 billion for the equivalent solar capacity.
“The big nuclear reactors were almost nine times more expensive than solar,” said O’Donnell. “It makes no sense.”
More Federal Cash for SMRs
Canada is also directing $55 million from Environment and Climate Change Canada’s Future Electricity Fund (FEF) to Ontario Power Generation’s Darlington New Nuclear Project for three new small modular reactors (SMRs) that together could power about 900,000 average Ontario homes.
“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,” Wilkinson said.
The SMRs destined for Darlington were designed by GE Hitachi Nuclear Energy, based out of North Carolina, and would require enriched uranium fuel, which Canada cannot produce domestically, reported the Globe and Mail. Wilkinson told the Globe that Canada’s options for enriched uranium include the United States or Russia, and that Canada could develop that capability if necessary, but it was not preferable.
While collaborating on nuclear projects with the U.S. might help eliminate tariffs, he added, “we’re unlikely to be spending an enormous amount of time collaborating with a party that is treating us like an adversary.”
First Nations Concerns
The Canadian Nuclear Safety Commission held its second set of public hearings just over a month ago for the first of the three reactors planned for Darlington. The hearing included presentations from the chiefs of four First Nations—Curve Lake, Hiawatha, Mississaugas of Scugog Island, and Alderville—calling for a new collaborative relationship built on respect, trust, and partnership.
Chief Kelly LaRocca of the Mississaugas of Scugog Island First Nation said “the current relationship is not working effectively.”
“The path we’ve outlined today provides meaningful solutions,” said LaRocca. “Now we look to the commission to take these steps with us to honour the commitments made and to move forward together in a way that breathes life into the honour of the Crown.”
Additional Funding Announced
Further funding will also go to SaskPower’s SMR pre-development program. The FEF increased its program funding from $24 million to $80 million.
More federal subsidy support is also destined for Saskatchewan, Alberta, and Ontario. It includes a further investment of $52.4 million for various projects, not just nuclear but four other energy projects under Natural Resources Canada’s Electricity Predevelopment Program.
