CIB commits $970 million towards Canada’s first Small Modular Reactor
Large-scale investment supports Phase 1 of OPG’s Darlington New Nuclear Project
Toronto, ON – The Canada Infrastructure Bank (CIB) has finalized an agreement with Ontario Power Generation (OPG) and committed $970 million towards Canada’s first small modular reactor (SMR).
This is CIB’s largest investment in clean power to date.
OPG is developing and constructing the 300-megawatt SMR next to OPG’s existing 3,500-megawatt Darlington Nuclear Generating Station in Clarington, Ontario.
SMRs are a new class of nuclear reactors which are approximately 300 megawatts or less, have a smaller footprint and a shorter construction schedule, compared to traditional nuclear generating stations. SMRs can provide zero-carbon baseload power across all regions and are crucial to decarbonizing the electricity sector and broader economy.
The CIB-financed Phase 1 work covers all preparation required prior to nuclear construction, including project design, site preparation, procurement of long lead-time equipment, utility connections, implementation of a digital strategy, and related project management costs.
Zero-carbon energy from SMRs is a key pillar in OPG’s Climate Change Plan, which outlines OPG’s goals to become a net-zero carbon company by 2040 and a catalyst for achieving a net-zero economy by 2050.
The project will also support Canadian efforts to become a global SMR technology hub in a market estimated to be $150 billion per year by 2040.
Once fully constructed by the end of this decade, the SMR will avoid approximately 740,000 tonnes of greenhouse gas emissions annually – equivalent to the emissions of nearly 160,000 gas cars
Energy experts say there is no path to bringing the world’s carbon emissions to zero by 2050 without nuclear. The CIB’s $970 million investment will help OPG construct Canada’s first small modular reactor. As our largest clean power investment, we are supporting technology which can accelerate the reduction in greenhouse gases while also paving the way for Canada becoming a global SMR technology hub.
- Ehren Cory, CEO, Canada Infrastructure Bank
We know nuclear energy, including from SMRs, is an essential part of the electricity mix to help meet our climate change goals. This low-interest financing helps us advance the Darlington New Nuclear Project, paving the way for development and deployment of the next generation of nuclear power in Canada.
- Ken Hartwick, OPG President and CEO
Today’s announcement represents a significant step towards the development of a non-emitting electricity grid and a prosperous net-zero future. The deployment of one of Canada’s first Small Modular Reactors (SMR) at Darlington Station will further enhance Canada’s leadership in nuclear technology, create sustainable jobs, and reduce emissions. This announcement represents an important step forward for energy security and availability in Canada.
- The Honourable Jonathan Wilkinson, Minister of Natural Resources
Ontario is leading the way when it comes to new nuclear technologies and the world is watching as we build the first ever grid-scale SMR at Darlington. Today’s investment is a demonstration of the incredible opportunities of SMRs and nuclear power as a way to produce clean electricity to attract new investment, create jobs, and grow our economy while supporting electrification.
- The Honourable Todd Smith, Minister of Energy
- CIB's long-term capital can ensure critical, large-scale clean energy infrastructure projects are built.
- OPG is an Ontario-based electricity generation company wholly-owned by the Province of Ontario and has more than 50 years of experience operating nuclear facilities.
- With an approved Environmental Assessment already in place, the Darlington site is the only location in Canada licensed for new nuclear.
- The Darlington New Nuclear Project is being managed in a gated approach, subject to OPG board approval at each gate.
- A 2020 study undertaken by the Conference Board of Canada shows strong economic benefits from construction and 60 years of operation of a single SMR facility. According to the report, direct, indirect employment would result in an annual average of approximately:
- 700 jobs during project development;
- 1,600 jobs during manufacturing and construction;
- 200 jobs during operations;
- and 160 jobs during decommissioning.
- Through its Clean Power priority sector, the CIB has committed $5 billion towards clean power, renewables, district energy, storage, interties, and transmission.
- All CIB investments are subject to approval of its board of directors.