Canada is making a significant push to expand its nuclear energy sector, aiming to meet growing energy demands alongside other major world powers. Currently, nuclear power accounts for about 15% of Canada’s energy. However, with the development of new nuclear facilities, this share is expected to rise considerably over the next few decades. The industry had seen limited growth due to safety concerns and the high costs of building new plants. But a 2023 Ipsos poll revealed that 55% of Canadians now support nuclear energy.
The 2023 federal budget demonstrated strong backing for nuclear power, including a refundable Investment Tax Credit (ITC) for clean electricity, as well as a 30% ITC for clean technology manufacturing. The budget also included various initiatives, such as tax reductions, funding from the Canada Infrastructure Bank, support for the regulatory body, and half a billion dollars for Small Modular Reactor (SMR) projects.
Ontario is leading the way with plans to develop Canada’s first SMR project. The Darlington site will house four SMRs, generating 1,200 MW—enough to power around 1.2 million homes. Ontario Power Generation (OPG) hopes to start building the first unit in early 2025, with operations expected by 2029. The remaining units are planned to be operational by the mid-2030s. This initiative supports Ontario’s goal to decarbonize the economy and expand its green energy capacity, including a nationwide push for a net-zero power grid by 2035.
Bruce Power is also expanding its existing Ontario nuclear facility, aiming to become one of the largest nuclear plants globally. The company filed an initial project description in August, marking the start of its expansion efforts. Ontario’s Minister of Energy, Stephen Lecce, emphasized that nuclear power will play a key role in meeting the province’s growing energy needs, forecasting the need to double the electricity grid by 2050. Lecce also pointed to Bruce Power’s significant role in Ontario’s clean energy leadership.
In addition, the federal government has been investing in the nuclear sector. In October 2023, Canada allocated $9.74 million to support nine SMR research projects. Meanwhile, Saskatchewan’s SaskPower formed a nuclear subsidiary, SaskNuclear, to advance its SMR project through the regulatory process.
The U.S. is also advancing its nuclear power ambitions, with several large-scale nuclear and SMR projects underway. However, many of these have faced delays due to a global shortage of enriched uranium. Historically, Russia has been the primary supplier of High-Assay, Low-Enriched Uranium (HALEU), a key fuel for nuclear reactors. After Russia’s invasion of Ukraine in 2022 and resulting sanctions, the U.S. began developing its own HALEU production, with Centrus Energy Corp producing the first 20 kilos of HALEU in November 2023.
Canada is poised to become a key player in addressing the global uranium shortage. NexGen, a Canadian energy firm, is developing a project in the uranium-rich Athabasca Basin of northern Saskatchewan, with the aim of becoming the world’s top uranium producer. The mine, valued at nearly $4 billion, is expected to begin operations by 2028. Other companies are exploring the region and reopening dormant mines as interest in Canadian uranium surges.
At the COP28 climate summit in 2023, almost two dozen countries, including Canada, pledged to triple their nuclear energy output by 2050. Canada’s uranium resources will likely be crucial in meeting this goal. Currently, Canada is the second-largest producer of uranium, contributing 13% of global output. Once NexGen’s mine is operational, it is predicted to increase Canada’s share to 25%.
With renewed public support for nuclear power and growing pressure to transition to cleaner energy, Canada is experiencing a nuclear resurgence. Federal funding for SMR research and development, along with increasing nuclear activity worldwide, positions Canada to become the world’s largest uranium supplier, surpassing Kazakhstan in the near future.
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