Darlington small modular reactor to miss 2030 target and $7.7-billion budget; Ottawa stands by $2-billion investment

Ontario Power Generation (OPG) acknowledged this week in its third-quarter financial statements that the first BWRX-300 small modular reactor (SMR) at the Darlington New Nuclear Project (DNNP) will not enter service in October 2030 as planned, nor stay within its previously disclosed $7.7-billion budget. Federal Energy Minister Tim Hodgson responded that setbacks are “a reality in all first-of-a-kind projects,” and defended the Canada Growth Fund’s $2-billion equity investment in the project.

Unfinished engineering is dragging on construction and the supply chain

OPG said the overrun and delay “reflects GE Vernova Hitachi Nuclear Energy’s ongoing engineering for its first-of-a-kind SMR, which has impacts on construction execution and supply chain performance.” The utility gave no new cost or schedule figures, saying only that a comprehensive assessment is under way and is expected to be substantially complete by mid-2027; a production forecast in the filing suggests the in-service date could slip by at least a year, though the final delay could prove shorter depending on the assessment.

Four reactors, $20.9 billion — Canada’s first new nuclear build in over 30 years

The Darlington New Nuclear Project, in Clarington, Ont., plans four BWRX-300 reactors and supporting infrastructure at a total budget of $20.9 billion, the first new nuclear build in Canada in more than three decades. The first unit received a licence to construct from the Canadian Nuclear Safety Commission in April 2025. When the project was announced in late 2021 it was said it could be completed as early as 2028, so this is the second schedule slip. The Tennessee Valley Authority plans to build the same reactor design at Clinch River and received a construction permit from the US Nuclear Regulatory Commission in September.

Ottawa and Ontario have committed $3 billion combined; Hodgson says it fits the fund’s mandate

Ottawa has committed up to $2 billion through the Canada Growth Fund, Ontario’s Building Ontario Fund has committed another $1 billion in equity, the Canada Infrastructure Bank has provided $970 million in low-interest financing, and eligible spending can also claim the federal 15% Clean Electricity Investment Tax Credit. Hodgson said the fund’s mandate is to shoulder risk for technologies that can drive economic growth and advance climate goals. A fund spokesperson said the equity commitment is being deployed over time, in tranches tied to the first unit and to the remaining three units, but declined to say whether the conditions are tied to specific timelines or cost estimates.

(Sources: The Globe and Mail; World Nuclear News; Decouple Media.)