In a substantial shift towards enhancing Canada’s energy independence and economic growth, the federal government is set to unveil a comprehensive strategy aimed at significantly increasing the deployment of nuclear power across the nation. Scheduled for release on Monday by Energy Minister Tim Hodgson, this policy document lays out ambitious goals to boost the number of large-scale nuclear reactors by over 50%, positioning nuclear energy as a cornerstone for Canada’s economic stability, energy transition, and national sovereignty.
Revitalising the Nuclear Sector
The government’s initiative marks a pivotal moment for Canada, which has historically been cautious about nuclear energy due to concerns over cost and construction complexities. Prime Minister Mark Carney’s administration is seizing a global momentum towards nuclear power, which is witnessing renewed interest as a viable, non-emitting energy source. According to the strategy, “the global nuclear renaissance is creating a time-limited window,” urging swift action to secure markets and partnerships that Canada is strategically poised to capture.
This renewed focus on nuclear energy aligns with the government’s broader objective of diversifying exports and reducing dependence on the United States for economic growth. However, it is important to note that the strategy does not come with new funding; rather, it relies on existing resources and investment tax credits to encourage provincial cooperation in expanding nuclear capabilities.
Targeting Large-Scale Reactors
While the document emphasises the expansion of large-scale reactors, it notably lacks specific targets for small modular reactors (SMRs), which the government has previously touted as a more economical alternative. The strategy prioritises the Candu reactor—Canada’s homegrown technology—which boasts a fully Canadian supply chain and circumvents the need for enriched uranium, a resource Canada does not produce. By focusing on Candu, the government argues that Canada can enhance its energy security and autonomy, as well as facilitate exports of this technology abroad.
In a bid to galvanise the nuclear workforce, the strategy aims to double employment in the sector by 2050 and increase uranium exports by 2035, coinciding with the commissioning of new uranium mines in Saskatchewan. Recent approvals for uranium mining projects, such as Denison Mines Corp.’s Wheeler River and NexGen Energy Ltd.’s Rook I, underscore the government’s commitment to reinvigorating domestic uranium production.
Streamlining Regulatory Processes
To bolster this ambitious nuclear agenda, Ottawa is advocating for a more streamlined regulatory framework to reduce the time required for project approvals. The government aims to complete federal reviews within a two-year timeframe, enabling the construction of up to ten new reactors by 2040, with two expected to be underway by 2035. This proposal would mark a dramatic increase from the current number of operational reactors in Canada, which stands at 17, the last of which was completed in 1993.
The strategy also envisions deploying at least one new nuclear facility outside Ontario by 2035, as provinces such as Alberta and Saskatchewan explore the potential for new nuclear investments. Meanwhile, the prospect of utilising microreactors—compact units capable of being transported to remote locations—could provide energy solutions for isolated communities by the late 2030s.
Financing and Future Prospects
Although the strategy does not outline new federal expenditures, it promises to leverage existing financial mechanisms, including green bonds and the Canada Infrastructure Bank, to foster private investment in the nuclear sector. The government is particularly keen on attracting pension funds and sovereign wealth investments. Recent moves by institutional investors, such as Caisse de dépôt et placement du Québec’s commitment to the Sizewell C nuclear project in the UK, indicate a growing confidence in nuclear investments.
Historically, Canada’s success in nuclear exports has been supported by robust government financing. The current strategy sets an ambitious target of securing at least four new international markets for Canadian reactor technology by 2040, echoing past successes in exporting Candu reactors to countries like South Korea and China. A modernised Candu reactor is expected to be developed by 2030, with AtkinsRéalis, the sole licensee, committed to completing preliminary engineering by 2027.
Why it Matters
The unveiling of this nuclear strategy represents a significant turning point for Canada’s energy policy, potentially reshaping the country’s energy landscape while enhancing its economic resilience. By prioritising nuclear power as a key element of its energy transition, Ottawa aims not only to secure energy independence but also to position Canada as a global leader in nuclear technology exports. As the world pivots towards sustainable energy solutions, the government’s proactive stance on nuclear energy may well determine the trajectory of Canada’s economic future in a rapidly evolving global market.
