The Government of Canada is investing up to $74 million in small modular reactor development in Saskatchewan, an initiative that will be led by the provincial utility provider SaskPower.
Canada’s Minister of Energy and Natural Resources Jonathan Wilkinson announced the federal funding program at the Sylvia Fedoruk Canadian Centre for Nuclear Innovation at the University of Saskatchewan on Saturday. SaskPower has chosen to utilize General Electric Co’s (NYSE: GE) Hitachi BWRX-300 SMR reactor for potential deployment in the province somewhere around the year 2034 with construction beginning as early as 2030.
The government says the funding will be used for pre-engineering work, regulatory and technical studies, environmental assessments and Indigenous engagement for advancement of the project.
“Saskatchewan’s SMR program will provide reliable, low-carbon baseload energy to meet increasing electricity needs, supply clean power to its resource extraction industry and fuel the province’s economic growth,” said the Canadian Nuclear Association’s President John Gorman.
Health Canada says that in 2015, approximately 150 premature deaths in the country were attributable to air pollution from electricity-generating units — a problem that SMRs could help resolve.
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The news follows Saskatchewan and New Brunswick signing a memorandum of understanding for SMR development in April this year. The two provinces will be collaborating with each other to help advance development of the technology.
Ontario is also planning to bring four of General Electric’s SMRs online in the coming decade at its Darlington nuclear site, a move motivated by increasing demand for electricity in the province brought on by economic growth. Canada’s Infrastructure Bank committed $970 million for the site’s development in October last year.
“A fleet of SMRs at the Darlington New Nuclear Site is key to meeting growing electricity demands and net zero goals,” said Ken Hartwick, President and CEO of Ontario Power Generation.
Canada launched a $29.6 million SMR development program in February intended to help with the country’s transition to net zero.
Canadian companies like SNC-Lavalin Group Inc. (TSX: SNC) have been engaging in partnerships abroad to help develop nuclear technology as well. The major engineering company entered a partnership with the British nuclear technology developer MoltexFLEX last April, a company actively developing SMRs and uranium fuel needed for them.
General Electric shares dropped by 0.3 per cent Tuesday to US$111.66 on the New York Stock Exchange and have steadily risen by more than 88 per cent over the past year.
SNC Lavalin shares have also risen significantly over the past year by more than 63 per cent. They are currently trading for $41.81 on the Toronto Stock Exchange.
rowan@mugglehead.com
