Canada would invest $708 million (CAD 970 million) for the development of a grid-scale small modular reactor (SMR), according to a recent announcement by the Minister of Natural Resources Jonathan Wilkinson. The SMR is a novel nuclear technology that is reportedly being hailed as a crucial part of the nation's plan to cut emissions.

The minister's spokesperson claimed that the project would be the first-ever commercial grid-scale SMR in the G7, also known as the Group of 7 wealthy nations. The SMR is being built by utility Ontario Power Generation (OPG) in Darlington, Ontario.

It has been reported that the funds will be used for preparation work required before starting nuclear construction, such as site preparation and project design. According to reliable sources, the funding is being offered as a low-interest loan from the pool of funds of Canada Infrastructure Bank (CIB). The funds are designated for clean energy investments.

The energy crisis brought on by the conflict in Ukraine has reignited interest in nuclear power. Next-generation SMRs are viewed as quicker to build, efficient, and a way to possibly expedite the transition from fossil to clean fuels.

Furthermore, Canada wants to achieve net-zero emissions by 2050, just like the other members of the G7. By 2030, the Canadian government wants to reduce emissions by 40-45%.

As per the World Nuclear Association, nuclear energy produces 15% of Canada's electricity. Wilkinson revealed that as a non-emitting energy source, nuclear energy was essential to achieving both Canada's and the world's climate goals.

The minister claimed that nuclear power was a source that could help the country meet its climate targets while also catering to the rising demand.

OPG stated in July that preliminary work, such as on-site road construction would begin this year. It aims to finish the SMR project by the end of the decade.

Moreover, OPG revealed that the reactors, developed by GE Hitachi Nuclear Energy, a partnership between Japan's Hitachi Ltd and General Electric Co. (GE.N), may power around 300,000 households.

Source credit: https://www.reuters.com/business/energy/canada-backs-nuclear-power-project-with-c970-mln-financing-2022-10-25/#:~:text=OTTAWA%2C%20Oct%2025%20(Reuters),Jonathan%20Wilkinson%20said%20on%20Tuesday