Canada’s new government is moving to build major nation-building projects that create high-paying careers, reduce emissions, and expand its economy. To that end, the government launched the Major Projects Office to cut red tape and fast-track major nation-building projects. Last month, the prime minister, Mark Carney, announced the first wave of projects being referred to the Major Projects Office for review. One of these projects is the Darlington New Nuclear Project (DNNP) in Bowmanville, Ontario.
The Prime Minister has now announced a Canada Growth Fund investment of $2 bn to support the construction and operation of the four small modular reactors (SMRs) at the DNNP. This project will make Canada the first G7 country to bring SMR technology online and drive $500 million annually into Ontario’s nuclear supply chain.
Simultaneously the premier of Ontario, Doug Ford, announced that the government of Ontario will invest $1 billion in this project through the Building Ontario Fund. Ontario Power Generation remains the majority owner and operator of the DNNP, with the Canada Growth Fund and the Building Ontario Fund acquiring meaningful minority stakes in the project, representing 15% and 7.5% ownership, respectively.
This investment is intended to strengthen Ontario’s power grid and represent the kind of nation-building projects that define Canada’s new economic approach, by unleashing private investment, advancing energy security, and strengthening the industrial base.
François-Philippe Champagne, minister of Finance and National Revenue, commented: “The financing we’re providing to the Darlington New Nuclear Project will pave the way for a future where Canadian energy fuels our economy at home and provides export opportunities for Canadian expertise. By uniting government, industry, and Indigenous partners, we are not only creating thousands of good jobs in Ontario, but building out affordable, reliable power that Canadians can depend on.”
Earlier this year, the government of Ontario authorised Ontario Power Generation to move forward with construction of its first of four rate-regulated SMRs as part of this project. At its full potential of four SMRs, the DNNP will provide 1200 MWe while reducing carbon emissions by an average of up to 2.3 million tonnes annually between 2029 and 2050.
