A new study has confirmed that nuclear energy could soon play a role in Alberta’s energy mix.
X-energy Canada announced on Friday that its small modular reactor, the Xe-100, is well-suited to replace an existing thermal generation site in the province. The study also found that Alberta’s industries could directly benefit from this technology, which provides both electricity and industrial-grade heat.
The research was funded by Emissions Reduction Alberta through the provincial government’s TIER fund. TransAlta Corp (TSE: TA) (NYSE: TAC), Hatch, PCL, and Kinectrics worked alongside X-energy Canada to complete the study. It determined that Alberta’s energy needs and industrial strengths align well with the capabilities of the Xe-100 reactor.
Unlike conventional nuclear plants, the company designed the Xe-100 to produce both power and high-temperature steam. It can generate heat at 565°C, which could serve Alberta’s oil and gas facilities, petrochemical operations, and other heavy industries. This dual capability sets the Xe-100 apart, as it can help industries cut emissions while meeting energy demands.
Furthermore, the Xe-100 can use air-cooling systems instead of large amounts of water. This feature reduces water consumption and allows for greater flexibility in siting. In a province where water resources are critical, this advantage could prove especially important. Alberta’s existing supply chain and skilled workforce could also support construction and manufacturing tied to the new technology.
Currently, nuclear energy provides about 15 per cent of Canada’s electricity. Seventeen reactors, mostly in Ontario, supply 12.7 gigawatts of capacity. Alberta has no nuclear power plants, but it has shown growing interest.
In 2021, the province signed a memorandum of understanding with Ontario, New Brunswick, and Saskatchewan to explore small modular reactors.
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Government sees potential for nuclear power
Energy Alberta once proposed building a large-scale nuclear plant using Candu Monark reactors in northern Alberta. However, that project never advanced. More recently, Alberta launched a public engagement process, including a survey, to gauge opinions on nuclear energy. Premier Danielle Smith said the government sees “tremendous potential” for nuclear power in meeting future energy needs.
Ben Reinke, the company’s senior vice president and deputy chief commercial officer, said Alberta combines a strong industrial base with skilled workers and deep energy expertise. He added that the company looks forward to working with provincial and community leaders to advance nuclear opportunities.
X-energy Canada is a subsidiary of X-energy Reactor Company, LLC. The company has ambitious plans beyond Alberta and has scheduled its first Xe-100 project for Dow’s Seadrift site in Texas, where it will provide both electricity and steam. Following that, X-energy and Amazon have agreed to deploy five gigawatts of Xe-100 capacity by 2039, starting in Washington state. The company also announced an agreement with Centrica plc (LON: CNA) to install six gigawatts in the United Kingdom.
TransAlta, which partnered on the Alberta study, brings its own history of transition.
It was one of Canada’s largest coal generators but completed its coal phaseout in 2021. By converting facilities to natural gas, the company retired nearly 3,800 megawatts of coal-fired capacity in only three years. Its involvement signals how traditional power companies are adapting to low-carbon options.
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