In a bold move to bolster its energy independence and economic growth, the Canadian government is set to unveil a comprehensive strategy aimed at significantly enhancing the country’s nuclear power capabilities. The plan, outlined in a forthcoming policy document by Energy Minister Tim Hodgson, outlines a target of over a 50% increase in large-scale nuclear reactors across Canada. The initiative seeks not only to revitalise the domestic nuclear supply chain but also to reignite Canada’s presence in the global nuclear technology market, which has seen a resurgence in interest.
A New Era for Nuclear Power
The upcoming strategy, which has been acquired in advance by The Globe and Mail, positions nuclear energy as a pivotal element for Canada’s economy, energy transition, and national sovereignty. As the world witnesses a renewed fascination with nuclear power, largely driven by its potential as a reliable, low-emission energy source, Canada finds itself at a crucial juncture. The document argues that now is the time for decisive action, stating, “Hesitation is not a neutral choice; it is a decision to cede ground that will be difficult to recover.”
Despite the absence of new funding commitments, the strategy aims to leverage existing investments and tax incentives to encourage provinces to embrace nuclear energy. Ottawa’s hope is to use its influence to encourage provincial leaders to adopt nuclear solutions in their energy portfolios, particularly as power generation remains under their jurisdiction.
Focus on Candu Technology
Central to the strategy is a renewed emphasis on the Candu reactor, a homegrown technology that has been integral to Canada’s nuclear landscape since the 1960s. The Candu design, which does not rely on enriched uranium—a resource Canada does not produce—offers a unique advantage by insulating Canadian energy from global supply chain disruptions. The federal government, through Atomic Energy of Canada Limited, retains ownership of this crucial technology, with AtkinsRéalis Group Inc. as its sole licensee.
The strategy advocates for a “fleets-based approach,” which would standardise reactor technology across various power grids, thus promoting economies of scale. However, it also hints at the possibility of accommodating a limited number of reactor designs, which could lead to a diverse range of technologies being introduced into the market.
Workforce and Export Goals
In addition to expanding reactor capacity, the strategy aims to double the nuclear workforce by 2050 and increase uranium exports by 2035, coinciding with the anticipated commissioning of new mines. Recently, the Canadian Nuclear Safety Commission approved two significant uranium mining projects in Saskatchewan, signifying a proactive approach to bolstering domestic resources.
The government’s plan includes ambitious milestones: constructing up to ten large-scale reactors, with two expected to break ground by 2035, and five more in various stages of development by 2040. This vision marks a stark contrast to the current landscape of just 17 operational reactors, the last of which was completed in 1993.
Moreover, the government is keen on deploying at least one new nuclear facility outside Ontario by 2035 and exploring the potential of microreactors for remote communities by the late 2030s.
Financial Mechanisms and Global Positioning
While the strategy does not introduce fresh federal funding, it outlines a framework for financing nuclear projects through existing resources, including green bonds and partnerships with the Canada Infrastructure Bank. Ottawa is also looking to attract private investment, particularly from pension funds and sovereign wealth entities, to offset the historical reliance on government financing for nuclear projects.
Canada’s approach to nuclear exports is framed as a critical component of its foreign and industrial policy. The strategy sets a goal of entering at least four new international markets by 2040, building on Canada’s historical success in exporting Candu reactors to countries such as South Korea and China.
The government plans to modernise the Candu reactor by 2030, with AtkinsRéalis tasked with advancing this initiative. However, the absence of a formal loan agreement for the $304-million support package raises questions about the commitment to this timeline.
Why it Matters
This renewed focus on nuclear power represents a significant shift in Canada’s energy strategy, especially as the world grapples with climate change and the pressing need for sustainable energy solutions. By positioning nuclear energy as a cornerstone of its economic and industrial future, Canada aims to enhance its energy sovereignty, reduce dependence on external sources, and capitalise on emerging global markets. The success of this initiative could reshape not only the Canadian energy landscape but also its role on the international stage in promoting nuclear technology as a viable solution to the challenges of modern energy demands.
