Market Snapshot: Canada's role in small modular reactor (SMR) technology

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Release date: 2025-08-20

Canada has been at the forefront of small modular reactor (SMR) development. This builds on Canada’s decades of experience in nuclear energy, including its CANDU reactors.Footnote 1 Canada’s first commercial SMR power plant is planned to be constructed in Darlington, Ontario by 2030,Footnote 2 which is also expected to be the first operational commercial SMR facility in North America and among OECD countries.Footnote 3

SMRs represent a range of nuclear reactor technologies, many of which are increasingly being explored for deployment globally. Like traditional large nuclear reactors, SMRs produce non-emitting and dispatchable electricity.Footnote 4 SMRs are also capable of producing heat. The key features distinguishing SMRs from traditional large nuclear reactors are the modular nature of construction and comparatively smaller electricity capacity, typically between 5 and 300 megawatts (MW), compared to more than 700 MW for traditional large nuclear reactors.Footnote 5

Figure 1: SMR vs Traditional Large Reactors

The image shows a comparison of traditional large reactors and small modular reactors side by side, with a list of features that are different between the two types.
Text Alternative

Text Alternative: The image shows a comparison of traditional large reactors and small modular reactors side by side, with a list of features that are different between the two types.

SMR Innovation and Projects in Canada

Globally, Canada is known for its well-established nuclear energy and deep knowledge of nuclear technology. Canada’s own innovation, CANDU reactors, are currently being used worldwide.Footnote 6 Domestically, around 13% of Canada’s electricity demand was met by nuclear energy in 2024. In addition, Canada is also the world’s second-largest producer and exporter of uranium, the fuel used in nuclear reactors.Footnote 7

According to the International Atomic Energy Agency, there are 68 different SMR designs or technologies.Footnote 8 Canadian organizations are involved in developing at least seven different SMR technologies, as shown in Table 1.Footnote 9 Among prospective SMR projects, Darlington SMR received license to construct in April 2025 from the Canadian Nuclear Safety Commission (CNSC), a significant step towards commercial SMR deployment. In addition, there are many other SMR units being considered across the country (Table 1), at various stages of development.

Table 1: SMR Technologies and Projects in Canada
SMR Technologies and Projects in Canada
Technology Projects Status Capacity/Units/Energy Type Expected Operational Year Location Owners/Partners
GE Hitachi BWRX-300 Ontario Power Generation (OPG)’s Darlington SMR Project License to construct issued in April 2025 by Canadian Nuclear Safety Commission (CNSC) One 300 MW electricity unit initially, three other 300 MW units proposed First unit before end of 2030 Darlington, Ontario OPG, GE Vernova Hitachi Nuclear Energy
SaskPower’s proposed SMR project Pre-investment, site selection, CNSC engagement Four 300 MW electricity units First unit in late 2030s Estevan, Saskatchewan Saskatchewan Power Corporation (SaskPower)
Stable Salt Reactor – Wasteburner (SSR-W) combined with Waste to Stable Salts (WATSS) Moltex first Stable Salt Reactor SMR with NB Power Pre-investment, detailed design, pre-licensing, ownership change 100 MW electricity Early 2030s Point Lepreau, New Brunswick Moltex Clean Energy, New Brunswick Power Corporation (NB Power)Footnote 10
ARC-100 NB Power’s ARC-100 Project Application to prepare site submitted to CNSC 100 MW electricity and 400 MW heat Early 2030s Point Lepreau, New Brunswick NB Power, ARC Clean Technology Canada
Belledune Port Authority Green Energy Hub Early stakeholder engagement 200 MW electricity and 800 MW heat Mid 2030s Belledune, New Brunswick Belledune Port Authority, ARC Clean Technology Canada
ARC-100 in Alberta (MOU only, not a specific project) MOU Unknown Unknown Alberta ARC Clean Technology Canada, Invest Alberta Corporation
Xe-100 Xe-100 in Alberta Pre-investment economic study Unknown Early 2030s Alberta X-Energy Reactor Company (X-energy), TransAlta Corporation, Emissions Reduction Alberta
Xe-100 – in Ontario (MOU only, not a specific project) MOU Unknown Unknown Ontario X-energy, OPG
Integral Molten Salt Reactor (IMSR) Currently no specific projects, MOUs signed in Alberta and Saskatchewan Pre-licensing vendor design review, MOU Unknown Unknown Alberta and Saskatchewan Terrestrial Energy, Invest Alberta Corporation, First Nations Power Authority
eVinciTM microreactor Saskatchewan Research Council (SRC) research reactor Feasibility, MOU, stakeholder engagement, pre-licensing vendor review 5 MW electricity and 13 MW heat 2029, non-commercial unit Saskatoon, Saskatchewan SRC, Westinghouse Electric Canada
SMR-160 Currently no specific projects Stakeholder engagement, pre-licensing vendor review N/A N/A N/A Holtec Canada
Sources and Disclaimer

Sources: World Nuclear OrganizationFootnote 11, Project Websites

Disclaimers: The data on the table only shows the information that was publicly available at the time of publication. Owners/Partners listed in the table only include the most prominent partners and owners of the project. These projects may also have other stakeholders, such as government entities, suppliers, Indigenous organizations, financial partners, equity partners, and research institutes. The above is not an exhaustive list.

Current SMR Policy, Regulatory, and Financial Support

There are policy and financial support mechanisms for SMR development in Canada by federal and provincial governments. In 2018, the Government of Canada announced the SMR roadmapFootnote 12 and subsequently launched Canada's SMR Action Plan in 2020.Footnote 13 The Government of Canada has provided financial support for SMRs through various grants and tax incentives.Footnote 14 In addition, the Canada Infrastructure Bank (CIB), a federal crown corporation, has financially supported the development of Ontario Power Generation’s Darlington SMR project.Footnote 15 In the 2024 Fall Economic Statement, the Government of Canada announced its intent to backstop up to $500 million in enriched nuclear fuel purchase contracts from allied countries, to reduce fuel supply risk for SMR operators.

The provinces of Ontario, New Brunswick, and Saskatchewan entered into an SMR strategic plan agreement in 2019, with Alberta joining in 2021. Provincial crown corporations, as highlighted in Table 1, are prominent financial partners in advancing SMR technology.

CNSC is Canada’s federal regulator for nuclear energy and materials. The CNSC has actively contributed to developing the policy and regulatory framework for SMRs, including CNSC’s SMR readiness project.Footnote 16

Indigenous communities across Canada have shown interest in emerging technologies like SMRs.Footnote 17 In 2021, the First Nations Power Authority created the Indigenous Advisory Council as part of its SMR action plan.Footnote 18 Also, North Shore Mi'kmaq Tribal Council and its seven First Nation member communities have made financial investments in SMR developers Moltex Energy Canada and ARC Clean Technology Canada, under equity agreements.Footnote 19

Benefits and Challenges of SMRs

The major benefits and challenges of SMRs compared to large traditional reactors are highlighted in Figure 1. SMRs are designed with advanced safety features. Some inherent safety characteristics of SMRs include smaller nuclear fuel cores, passive cooling systems designed for automatic shutdown, and innovative coolants, resulting in higher safety and streamlined operation.Footnote 20

To date, no commercial SMR projects have been completed in OECD countries. As a result, costs remain uncertain. Compared to large reactors, SMRs are expected to be built with smaller upfront capital investments because of their smaller size. However, the capital cost per unit of production capacity can be relatively high. Early estimates suggest that capital cost per unit of production capacity for an SMR unit built for mining operations could be around 70% higher than traditional large reactors.Footnote 21Footnote 22 SMRs are a new technology; once they become mature, the capital cost per unit of production capacity may reduce from current values.Footnote 23

Nuclear waste must be safely managed for long periods to prevent radioactive pollution.Footnote 24 The nuclear waste produced by SMRs would differ based on their design, fuel type, and operation and differs from Canada’s current nuclear waste inventories. SMRs also may produce relatively higher nuclear waste amounts per unit of energy.Footnote 25 Currently, Canada does not have nuclear waste management facilities outside Ontario and New Brunswick. The national integrated waste management strategy anticipates waste from SMRs in its current development.Footnote 26

SMRs require enriched uranium as fuel, as opposed to natural uranium used in CANDU reactors in Canada. In addition, many SMR designs require special types of enriched nuclear fuels, such as High Assay Low Enriched Uranium (HALEU).Footnote 27 Although Canada produces, refines, and converts uranium, it does not have uranium enrichment facilities. The enriched uranium used in Canadian research reactors and medical applications comes from foreign facilitiesFootnote 28, and planned SMRs rely on international partners to fulfil enriched uranium needsFootnote 29, compared to the largely domestic fuel supply chain for existing CANDU reactors.

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