Canada’s upcoming nuclear expansion project will rely on foreign suppliers, including the United States, for fuel enrichment and fabrication, despite Prime Minister Mark Carney’s emphasis on Canadian energy independence. This marks a shift from the traditional Candu reactor system that utilized a predominantly domestic nuclear supply chain for over 50 years, leveraging Canada’s status as the world’s second-largest uranium producer.
In Ontario, construction has commenced on the first of four planned BWRX-300 small modular reactors at the Darlington New Nuclear Project in Clarington. These American-Japanese-designed light water reactors will utilize low-enriched uranium, unlike the Candu reactors that employ domestically produced fuel from natural uranium without enrichment.
Ontario Power Generation (OPG) anticipates connecting the first BWRX-300 reactor to the grid at Darlington by the end of 2030, with the remaining three scheduled for the mid-2030s. Cameco, a uranium mining and nuclear fuel company based in Saskatoon, will mine and convert uranium ore in Saskatchewan before sending it for enrichment in the United States. OPG has also identified France’s Orano and Britain’s Urenco as potential enriched uranium suppliers, with a U.S.-based company responsible for manufacturing the final fuel assemblies.
This new approach contradicts the original principles of Canada’s nuclear program, which sought to maintain an all-Canadian fuel supply chain to avoid geopolitical risks. By relying on foreign sources for enriched uranium, Canada exposes itself to potential disruptions in fuel supply during political conflicts, according to experts.
Ontario’s Energy Minister Stephen Lecce stated that the decision to opt for a foreign reactor, specifically the BWRX-300, was driven by the absence of a viable Canadian alternative capable of meeting electricity generation requirements. While a domestic reactor, the Candu Monark, is under development, it was not deemed suitable for Ontario’s SMR project.
The use of multiple foreign suppliers for enrichment aims to minimize supply risks, but concerns remain regarding potential geopolitical vulnerabilities. Establishing a domestic uranium-enrichment industry would be the only way for Canada to eliminate reliance on foreign suppliers, although this would entail significant costs and regulatory challenges.
While the Darlington facility will be the first SMR in the G7, experts caution that SMRs may be more expensive to operate than conventional reactors due to limited economies of scale. Despite the potential advantages of smaller reactors, the long-term implications of the new reactors on nuclear waste management and disposal remain uncertain.
Ontario is not the only province exploring SMR projects, with Saskatchewan, New Brunswick, and Alberta also considering nuclear initiatives that could involve SMRs. The federal government is yet to decide on commercial enrichment, as discussions continue to assess future energy needs and opportunities in the nuclear sector.