Ottawa announces up to $74M for small modular nuclear reactor development in Sask.

Canada is getting behind the development of small modular nuclear reactors in Saskatchewan, the federal minister of energy and natural resources announced on Saturday,

Ottawa has approved up to $74 million in federal funding for small modular reactor (SMR) development in the province, Jonathan Wilkinson said in Saskatoon. 

SMRs generate nuclear power. The idea is to help fuel the transition to net-zero emissions and meet the federal government's climate goals by transitioning toward non-emitting energy, Wilkinson said, speaking at the Sylvia Fedoruk Canadian Centre for Nuclear Innovation at the University of Saskatchewan.

"Delivering clean, reliable and affordable electricity will look different in every region of Canada," he said in a press release accompanying the announcement. 

"We are investing in the future of nuclear technology, building on Canada's decades-long legacy as a responsible global leader in nuclear power, and leveraging Saskatchewan's world-leading production of uranium to position the province to thrive." 

Saskatchewan and three other provinces — Ontario, New Brunswick and Alberta — have led the charge on developing SMR technology that would help supply power in their respective provinces. 

Like their name implies, SMRs are much smaller than traditional nuclear reactors. 

While a conventional nuclear reactor generates about 1,000 megawatts of energy, SMRs generate between 200 and 300 megawatts — enough to power about 300,000 homes.

A final decision on whether to build a SMR in Saskatchewan won't happen until 2029 but the planning process has been moving ahead with SaskPower put in charge of development and implementation in the province. 

The GE-Hitachi BWRX-300 is the reactor identified for development in the province. That's the same model chosen by Ontario Power Generation, which has been closely working with SaskPower on the project. 

SaskPower has identified Estevan, located in the province's southeast, and Elbow, located about midway between Saskatoon and Regina, as two sites that could potentially host SMRs.

Both are close to water sources, existing power transmission infrastructure and have the ability to support a workforce, according to an announcement released last year by SaskPower. 

A final decision on the location to build one SMR is not expected until late 2024. 

If approved, construction could begin as early as 2030 with the first SMR coming on line sometime in 2034. Additional facilities could follow. 

Funding comes from two streams

The $74 million in funding announced Saturday, will support pre-engineering work and technical studies, environmental assessments, regulatory studies and community and Indigenous engagement to help advance the SMR project, Natural Resources Canada said. 

The money is drawn from two streams. Up to $50 million will come from Natural Resources Canada's electricity predevelopment program, a $250 million program to support predevelopment of clean electricity projects. In addition, more than $24 million allocated for Saskatchewan is from Environment and Climate Change Canada's future electricity fund. 

The $250 million electricity predevelopment program is meant to support projects of "national significance" like SMRs, according to Natural Resources Canada. 

The $50 million from that stream earmarked for Saskatchewan is conditional on the finalization of a contribution agreement between Natural Resources Canada and SaskPower. Negotiations are currently underway. 

The Future Electricity Fund returns the proceeds drawn from Canada's carbon pricing plan in order to support clean energy project and energy-efficient technologies that will help Canada meet its climate goals and reach net-zero emissions by 2050. 

The Saskatchewan project is an example of two levels of government co-operating on clean energy projects, Environment and Climate Change Minister Steven Guilbeault said in the press release.

"Saskatchewan has a significant competitive advantage with an abundance of natural resources to be a leader in the development of clean, affordable and reliable electricity grid," Guilbeault said in the statement. 

"Building a clean electricity grid in Saskatchewan is good for the economy, good for communities and good for the planet." 

Dispute over clean energy regulations

The announcement comes amid pushback from the provincial government on the federal government's proposed clean energy regulations. 

Premier Scott Moe has claimed the regulations, which are intended to pave the way to a net-zero power grid — not a fossil fuel-free grid — by 2035, are "unachievable" for the province and would "at least double the power rates."

Moe has said Saskatchewan is targeting a non-emitting grid by 2050.  

Experts have disagreed with Moe's assessment, especially because the new regulations don't mean the end of natural gas power generation.