Government of Canada Announces Major Nuclear Energy Investments 

The Government of Canada has demonstrated its strong commitment to nuclear energy development through a series of significant funding announcements aimed at bolstering the country’s position as a global leader in the nuclear sector.

CANDU Development Funding 

On March 5, 2025, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced that the Government of Canada has entered into a preliminary agreement with AtkinsRéalis to support the development and modernization of a new, large-scale, natural uranium–fuelled Canadian deuterium uranium (CANDU) nuclear reactor. The agreement includes a loan of up to $304 million over four years to finance half of the design project. 

This investment follows the recent approval of a $2.85 billion contract to extend the life of the Unit 1 CANDU reactor at the Cernavoda Nuclear Power Plant in Romania. The contract was awarded by Romania’s national nuclear power operator, Nuclearelectrica S.A. (SNN), to a consortium including the Canadian Commercial Corporation (CCC), Candu Energy (an AtkinsRéalis company), Ansaldo Nucleare, and Korea Hydro & Nuclear Power (KHNP). 

The advancement of CANDU technology is expected to create economic value for Canada, ensure energy security, improve health outcomes through the creation of more cancer-fighting isotopes, build stronger relationships with Indigenous Peoples, workers and communities, and maintain Canada’s status as a Tier-1 nuclear nation.

Small Modular Reactor Funding 

In addition to the CANDU technology investment, Minister Wilkinson announced $55 million in funding from Environment and Climate Change Canada’s Future Electricity Fund (FEF) to support Ontario Power Generation’s Darlington New Nuclear Project. This funding adds to a previous nuclear development loan of $970 million towards the same project, representing the largest investment in clean power to date in Canada. The project focuses on advancing three new GE Hitachi BWRX-300 SMRs, which together could supply enough electricity to power approximately 900,000 homes. 

The FEF has also increased program funding from $24 million to $80 million to the Saskatchewan Government’s Crown Investments Corporation in support of SaskPower’s SMR pre-development work. This funding will support pre-engineering work, technical studies, environmental assessments, regulatory studies, and community and Indigenous engagement. 

Furthermore, the government announced a total investment of $52.4 million for various projects supporting the development and deployment of SMRs and CANDU reactors and decarbonization efforts in Saskatchewan, Alberta, and Ontario. This includes $11.4 million from the Enabling SMRs Program for three projects and $41 million for four projects under NRCan’s Electricity Predevelopment Program.

Economic and Environmental Impact 

As a tier-one nuclear country with 17 reactors in Ontario and New Brunswick supplying 15% of Canada’s electricity, the nuclear sector currently supports 89,000 high-quality jobs, with 74% in the skilled trades, and contributes $22 billion annually to Canada’s GDP. 

Nuclear is considered an integral part of Canada’s resilient and independent energy future, with CANDU technology helping to create good domestic jobs and supporting international Canadian energy exports. By advancing innovative projects, the government is reinforcing its commitment to domestically sourced and processed uranium, which creates good-paying jobs in Ontario and throughout the country. 

CANDU reactors maintain an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies. They are fuelled by uranium mined in Saskatchewan without the need for enrichment, providing an additional economic benefit to the country. The Darlington SMR project is expected to create approximately 17,000 jobs in Ontario and 10,000 more across Canada during manufacturing and construction.

With electricity demand expected to at least double by 2050, nuclear power offers a path to ensuring long-term economic growth, energy security, and emissions reductions. The intellectual property for CANDU technology continues to be owned by the Government of Canada, with AtkinsRéalis as the exclusive licensee.

Canada’s power sector has made significant progress in driving down emissions while expanding carbon-free power generation from renewables and nuclear, including by phasing out coal-fired electricity generation and scaling energy storage. The government is working together with provinces and territories, Indigenous Peoples, municipalities, utilities and workers to build a historic amount of clean, affordable and reliable electricity to power Canada into the future. 

These strategic investments in both established CANDU technology and innovative SMRs represent a clear vision for Canada’s energy future. By leveraging decades of nuclear expertise while embracing new technologies, Canada is positioning itself not only to meet its domestic clean energy needs but also to become a global leader in nuclear technology exports. As international demand for reliable, emissions-free energy grows, Canada’s revitalized nuclear sector stands ready to play a pivotal role in addressing global climate challenges while driving economic growth and creating thousands of high-quality jobs across the country.