OTTAWA — Canada is embarking on an ambitious nuclear power initiative, with plans to construct up to 10 new nuclear reactors within the next 15 years. Energy Minister Tim Hodgson announced this national strategy aimed at bolstering Canada's nuclear energy capabilities and increasing its presence in the global market for nuclear technology and uranium exports.
During a news conference in Newmarket, Ontario, Hodgson characterized the initiative as a blueprint for a "new civilian nuclear renaissance," emphasizing the pivotal role of nuclear energy in meeting Canada's electrical grid expansion goals. The federal government aims to double the capacity of its electrical grid by 2050, making a strong case that nuclear energy is essential to achieving a low-carbon economy. "If our goal is to double our grid and build a low-carbon economy in less than 25 years, there is no credible plan to do that without nuclear energy," he stated.
The newly unveiled strategy outlines a timeline for the construction and development of nuclear reactors. It envisions the start of construction on two large-scale reactors by 2035, with plans for five more by 2040. Additionally, the strategy indicates that at least one reactor should be under construction outside the province of Ontario by 2035. Furthermore, it aims to finalize a Canadian-made microreactor by 2035, which would be deployed to a remote community by the late 2030s.
During a technical briefing, officials from Natural Resources Canada indicated that the total cost for the construction of these new reactors could exceed $100 billion; however, the plan does not specify how Canada intends to fund this massive investment.
The strategy also aims to enhance the international sales of Candu reactors. The government is targeting the entry into at least four new international markets by 2040 and seeking to engage with six to ten new nuclear entrant markets over a 15-year horizon, solidifying Canada as a favored partner. Currently, 30 Candu reactors are operational in countries such as South Korea, China, India, Argentina, Pakistan, and Romania, with plans for an additional two reactors to be built.
It is noted that Prime Minister Mark Carney was not presented with the strategy and did not participate in its development due to an ethics screen he has in place. Carney had deferred shares in both Brookfield Corporation and Brookfield Asset Management, which were placed into a blind trust following his ascension to the prime ministership. Notably, Candu competes with a reactor model co-owned by Brookfield.
The push to export Candu reactors is considered a strategic move to position Canada as a reliable uranium export partner and to utilize nuclear energy as a geopolitical tool. The strategy outlines that exporting reactors is not merely transactional; rather, it aims to foster multi-decade partnerships that promote Canada's broader foreign policy interests. As the country seeks to diversify trading relationships and strengthen ties with middle powers, Candu reactors are envisioned as central to this strategy.
Should Ottawa struggle to penetrate new markets for Candu reactors, the strategy suggests considering the enhancement of domestic uranium enrichment capabilities to supply fuel for other types of reactors. Unlike most nuclear reactors, Candu reactors do not require enriched uranium. The document notes that Western allies are increasingly shunning Russia, a primary supplier of enriched uranium, positioning Canada to fill this gap in global demand.
The document asserts that Canada is uniquely positioned to meet evolving demands, particularly in upstream uranium production, while also exploring selective expansion of downstream enrichment capabilities. The decision regarding whether Canada should develop domestic enrichment capabilities is still under evaluation. However, the argument for such a development would be strengthened if the domestic non-Candu reactor fleet grows significantly. In the meantime, establishing strategic partnerships with trusted allies, with Canada as the leading uranium supplier, is touted as a means to ensure fuel security.
