Canada is making bold moves in nuclear energy. It is investing heavily in next-generation technology to boost its clean power supply. As demand for low-emission electricity grows, the government is modernizing its flagship CANDU reactors along with developing the small modular reactors (SMRs).
On March 5, 2025, Canada’s Energy Minister, Jonathan Wilkinson, announced a deal with AtkinsRéalis to develop the MONARK reactor, a new CANDU design. Under this agreement, Canada will provide up to $304 million over four years to cover 50% of the project’s design costs.
AtkinsRéalis CEO Ian L. Edwards,
“We are honoured to have the full faith and confidence of the Government of Canada in continuing our development of proven home-grown CANDU technology.”
AtkinsRéalis Leads CANDU Innovation
AtkinsRéalis, a global engineering and nuclear company, has been operating since 1911. It focuses on building a sustainable future by connecting people, data, and technology. The company provides end-to-end services to key sectors such as engineering, nuclear, and capital projects.
They have pioneered CANDU technology for over a decade and have contributed majorly to global low-carbon energy solutions.
CEO Ian L. Edwards further added,
“The federal government’s decision today to invest in the further development of CANDU technology, an evolution of the proven Darlington reactor model, will enable us to continue this important work already underway with our utility partners. Advancing CANDU technology creates economic value for the country and Canadians, ensures energy security at this critical time, improves health outcomes through the creation of more cancer-fighting isotopes, builds stronger and more resilient relationships with Indigenous peoples, workers and communities, and above all, maintains Canada’s status as a Tier-1 nuclear nation.”
This initiative involves Atomic Energy of Canada Limited (AECL), Canadian suppliers, and reactor operators. Together, they will modernize a technology that has powered Canada for decades.
Canada’s CANDU Advantage: A Homegrown Powerhouse
CANDU (CANada Deuterium Uranium) reactors have a major plus. They use natural uranium sourced from Saskatchewan. This means no enriched uranium is needed. Most of the uranium is used to produce fuel for nuclear plants (over 99%). The rest (less than 1%) is used for research reactors and medical isotopes.
In 2022, Canada produced 7.4 kilotonnes of uranium from mines in Saskatchewan. This was worth around $1.1 billion. This makes uranium a secure energy source for Canada and an easily available fuel for CANDU reactors.
- Currently, Canada has 17 CANDU reactors—16 in Ontario and one in New Brunswick.
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Net Zero Integration: can eliminate over 17 million tonnes of CO₂ emissions annually when replacing coal.
Internationally, CANDU technology is used in South Korea, China, Argentina, and Romania. Demand for CANDU reactors is rising. In late 2024, Romania said it would buy two more units for its Cernavoda nuclear site. This move strengthens Canada’s reputation in global nuclear energy.
The CANDU supply chain drives economic growth as the industry sources 85% of its components from domestic companies. This supports 89,000 high-quality jobs in manufacturing and engineering. In 2024, AtkinsRéalis hired over 750 new employees for Candu Energy Inc. and placed more than $1 billion in orders with Canadian suppliers.
Minister Wilkinson hailed the potential of CANDU reactors by explaining,
“CANDU reactors maintain an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies, and they provide good-paying, long-lasting, and sustainable jobs in manufacturing for Canadians. They are also fuelled by uranium mined in Saskatchewan without the need for enrichment. As countries look to secure safe sources of clean energy, demand for Canadian nuclear is growing. The Government of Canada is acting now to modernize Canadian-owned CANDU technology, which will provide a viable, cost-effective design in support of the expansion of nuclear energy capacity in Canada and internationally.”
SMRs: The Future of Flexible Nuclear Power
Canada is also investing in small modular reactors to diversify its nuclear energy options.
The Government’s press release also highlighted,
Minister Wilkinson, on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change, also announced $55 million in funding from Environment and Climate Change Canada’s Future Electricity Fund (FEF) to support Ontario Power Generation’s Darlington New Nuclear Project.
This project will install three GE Hitachi BWRX-300 SMRs at Darlington. Each unit will produce 300 megawatts, which can power 900,000 homes.
Saskatchewan is moving forward with SMR deployment. The federal government increased funding for SaskPower’s pre-development work. It went up from $24 million to $80 million. This support helps with engineering studies, environmental assessments, regulatory planning, and collaboration with indigenous communities. These are all essential steps before construction begins.
More Nuclear Investments, Less Carbon
Moving on, Minister Wilkinson announced a $52.4 million investment to push SMRs and CANDU reactors. This investment also includes decarbonization strategies in Saskatchewan, Alberta, and Ontario.
- The investment includes $11.4 million from the Enabling SMRs Program for three projects and $41 million under NRCan’s Electricity Predevelopment Program for four projects.
This investment reflects Canada’s dedication to partnering with businesses, utilities, and system operators to grow clean energy. By backing both proven CANDU technology and new SMR projects, the government aims to fortify its nuclear policy and establish Canada as a leading global energy provider.
Economic and Environmental Wins
Investing in nuclear power offers major economic advantages. The Conference Board of Canada says a four-reactor CANDU project could boost Canada’s GDP by $50 billion. It might also generate $29 billion in tax revenue. Additionally, building these four CANDU reactors could create over 20,000 full-time jobs and ~ 3,500 permanent jobs for more than 70 years.
Nuclear energy is also crucial for Canada’s goal of net-zero emissions by 2050. Unlike fossil fuels, CANDU reactors and SMRs produce zero emissions. Thus, expanding the nuclear capacity will bring direct environmental benefits like:
- They provide a clean and reliable power source.
- Help replace coal and natural gas plants.
- Cut greenhouse gas emissions and ensure a stable electricity supply.
With strong government support and growing investment, nuclear energy has a bright future in Canada. It will also play a key role in cutting emissions by 45–50% below 2005 levels by 2035.
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