Can Canada lead the global small modular reactor race through Darlington builds, lab readiness, and coordinated nuclear policy?

Canada is positioning itself at the forefront of the global small modular reactor (SMR) race, supported by a coalition of federal agencies, provincial utilities, and reactor technology partners. With the construction of the first GE Vernova Hitachi BWRX-300 reactor underway at Ontario Power Generation’s Darlington site, and a long-term C$1.2 billion annual management contract awarded to BWX Technologies for Canadian Nuclear Laboratories (CNL), the nation’s SMR vision is accelerating from planning to deployment.

The country’s long-standing nuclear legacy—anchored by Atomic Energy of Canada Limited (AECL), the CANDU reactor program, and the Chalk River research site—forms the backbone of a new generation of compact, scalable reactors aimed at providing clean baseload energy, industrial heat, and hydrogen production. Through the collaborative efforts of AECL, CNL, Ontario Power Generation (OPG), and the Canadian Nuclear Safety Commission (CNSC), Canada now has one of the most mature SMR deployment frameworks in the Western world.

What regulatory, financial, and policy mechanisms are enabling Canada’s national SMR deployment strategy by 2030?

Canada’s SMR leadership is underpinned by two key national documents: the SMR Roadmap (2018) and the SMR Action Plan (2020). These frameworks outline a cohesive national strategy involving licensing modernization, Indigenous engagement, environmental approvals, and international collaboration. AECL’s role as steward of federal nuclear assets and funding channels has also been critical in aligning public and private sector players under one deployment umbrella.

Natural Resources Canada estimates the domestic SMR market at C$5.3 billion by 2040, with global export potential exceeding C$150 billion. The CNSC has pre-licensing reviews underway for up to 10 SMR designs, enabling early-stage alignment with international standards.

Financial backing includes a C$970 million loan from the Canada Infrastructure Bank and C$80 million in direct federal support through the Future Electricity Fund, making Darlington the most advanced SMR construction project in any G7 country.

How is Ontario Power Generation advancing the world’s first Western commercial SMR at the Darlington site?

Ontario Power Generation is leading the charge with the BWRX-300 SMR project at Darlington. Construction preparation for the first of up to four units began in May 2025, with commercial operation expected by 2030. The BWRX-300, developed by GE Vernova and Hitachi Nuclear Energy, is a 300 MWe boiling water reactor derived from the ESBWR design with passive safety systems and simplified construction architecture.

The full four-unit cluster is expected to cost approximately C$20.9 billion, creating an estimated 18,000 jobs and contributing over C$38 billion to GDP during its operational lifetime. The project complements Ontario’s nuclear refurbishment program, with OPG applying lessons from the ongoing Darlington refurbishments to minimize risk and cost overruns.

Institutional sentiment around OPG’s SMR initiative is generally positive, with analysts noting strong alignment between provincial climate goals and base-load grid needs. Ontario’s electricity demand is forecast to rise 75% by 2050, driven by electrification and industrial demand—making SMRs an attractive solution to scale quickly without carbon impact.

What role do AECL and Canadian Nuclear Laboratories play in enabling SMR demonstration, licensing, and fuel innovation?

AECL’s corporate strategy has placed small modular reactors, hydrogen innovation, and advanced isotopes at the core of Canada’s federal nuclear mission. AECL, through its oversight of CNL, provides critical support for licensing, safety validation, and research infrastructure at Chalk River Laboratories, which serves as the country’s central node for nuclear R&D.

CNL has opened expressions of interest for SMR demonstration sites at Chalk River and is preparing for a potential demonstration reactor by 2026. The new NLPC-led management team, led by BWX Technologies, is expected to expand CNL’s support for SMR developers, while also enhancing environmental remediation and isotope research.

CNL’s facilities also serve as a licensing pathway accelerator for other SMR developers, including X-Energy, Moltex, and Terrestrial Energy, all of which are engaging with Canadian regulators. The lab’s fuel research capabilities—especially on TRISO and HALEU—make it a strategic asset in both domestic deployment and international SMR partnerships.

Why is the Darlington SMR project considered a global milestone in modular reactor deployment?

The Darlington BWRX-300 is on track to become the first grid-scale SMR deployed in the Western world. Each unit will provide enough power for approximately 300,000 homes, while emitting zero greenhouse gases during operation. Unlike conventional nuclear builds, the BWRX-300’s modular design allows for factory-based fabrication, reduced onsite labor, and a significantly shortened construction timeline—estimated at under 36 months per unit once the supply chain is mature.

Canada’s SMR push positions it as a hub for global deployment. The government has already committed to supporting reactor exports to Eastern Europe, including CANDU reactor renewals in Romania and Poland. Success at Darlington could catalyze export orders for BWRX-300 units and other Canadian SMR models across Asia, Eastern Europe, and Africa.

For vendors like GE Vernova, Darlington serves as a proof-of-concept that could influence licensing decisions in the United States, United Kingdom, and beyond. The Canadian model of combining public financing, federal laboratory support, and provincial utility execution is now being studied internationally.

What risks and challenges could delay Canada’s SMR rollout despite strong momentum?

Despite its global leadership potential, Canada’s SMR ecosystem faces real execution risks. The projected C$6.1 billion cost for the first unit, along with C$1.6 billion in shared infrastructure, has drawn scrutiny over budget predictability. SMR projects worldwide have struggled with first-of-a-kind costs, and even with extensive experience, Darlington will be the first major test of modular cost and schedule efficiency.

Licensing complexity, stakeholder reconciliation, and Indigenous engagement also remain ongoing priorities. While AECL and CNSC have created formal pathways for Indigenous consultation, several First Nations and Métis communities are calling for more equitable participation models before new sites can move forward.

Beyond Ontario, Saskatchewan and Alberta have SMR siting studies underway, but are at least five years behind Darlington in terms of readiness. The need for a pan-provincial coordination mechanism is growing, especially as other jurisdictions explore microreactor or hybrid hydrogen-nuclear applications.

What is the long-term outlook for Canada’s SMR commercialization and global market leadership?

Canada’s long-term outlook in the small modular reactor (SMR) sector is one of global leadership—built on the convergence of technology readiness, regulatory modernization, public-private capital alignment, and international export ambition. The country’s SMR framework, anchored in federal agencies like Natural Resources Canada (NRCan), the Canadian Nuclear Safety Commission (CNSC), Atomic Energy of Canada Limited (AECL), and Infrastructure Canada, positions it to deliver not just domestic clean energy capacity, but also to establish itself as a full-cycle SMR export power.

The BWRX-300 SMR project at Darlington, currently being constructed by Ontario Power Generation (OPG), is expected to be commercially operational by 2030. This will set a precedent for future commercial rollouts across the provinces. Saskatchewan is targeting its first SMR by 2034, followed by Alberta and other provinces initiating pre-feasibility studies. Together, these developments create the basis for a national SMR fleet deployment strategy extending through the 2040s.

Analysts project that Canada could deploy 6 to 10 small modular reactors domestically by 2040, contingent on meeting construction milestones, maintaining political and stakeholder alignment, and scaling local supply chains. On the global front, federal agencies have estimated that Canada could capture 10 to 15 percent of the global SMR export market, equivalent to 20 or more reactor unit exports by the end of the next decade.

Key to this ambition is Canada’s ability to offer a vertically integrated SMR solution—from fuel manufacturing and reactor design to licensing expertise and regulatory harmonization services. Canadian Nuclear Laboratories (CNL), under the new BWX Technologies-led NLPC consortium, will play a central role in this ecosystem, offering demonstration platforms, licensing support, and technology validation for Canadian and international vendors alike. Chalk River Laboratories is increasingly being positioned as a global proving ground for next-generation nuclear innovations.

In terms of capital support, institutions like the Canada Infrastructure Bank, Export Development Canada (EDC), and Clean Growth Hub are expected to play a pivotal role in financing both domestic and international SMR projects. In parallel, CANDU technology upgrades such as the Monark reactor concept are being co-developed to position Canada as a dual-track nuclear provider: offering both full-scale reactors and modular systems to suit varied grid profiles globally.

Furthermore, Canada’s approach to climate policy integration, grid reliability enhancement, and sovereign energy resilience makes its SMR roadmap especially appealing to other nations seeking to balance energy security with decarbonization. By creating a repeatable policy template—including streamlined permitting pathways, Indigenous engagement frameworks, and coordinated inter-provincial energy strategies—Canada is building an exportable SMR governance model, not just technology.

Critically, Canada is also taking steps to avoid the scalability traps that have plagued nuclear rollouts in other regions. Early investments in workforce training, modular construction techniques, and licensing harmonization with the U.S. Nuclear Regulatory Commission and European partners are likely to accelerate global deployment timelines. This could position Canadian SMRs as the de facto standard for next-generation nuclear development—especially in emerging markets and energy-importing nations.

If executed as planned, Canada’s SMR portfolio could become a G7 benchmark not only for reactor innovation but also for how public institutions can derisk frontier technologies. From enabling clean hydrogen co-production to powering remote industrial hubs and decarbonizing legacy grid assets, SMRs have the potential to reshape energy landscapes—and Canada is preparing to lead that transition.

In a global environment increasingly shaped by energy geopolitics, supply chain realignment, and the pursuit of zero-emissions infrastructure, Canada’s SMR strategy offers unmatched depth, foresight, and replicability. For institutional investors, policymakers, and clean energy developers watching the space, Canada’s modular nuclear playbook may emerge as the definitive model for 21st-century nuclear energy deployment.