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) at Darlington.
This is CIB’s largest investment in clean power to date, said a bank statement.
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.
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.
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 Darlington SMR will be one of the first ever developed and is expected to spearhead similar projects in Saskatchewan, New Brunswick and Alberta, with interest also growing in the U.S. and Europe.
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, the statement said.
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
Quick Facts
- 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.
