Strong domestic supply chain an advantage as Canada moves ahead with new nuclear

From the MacDonald Laurier Institute

By Sasha Istvan

Canada has two major advantages. We produce uranium and we have an established supply chain.

The pledge from 22 countries, including Canada, to collectively triple nuclear capacity by 2050 drew cheers and raised eyebrows at the United Nations Climate Change Conference last fall in Dubai. Climate commitments are no stranger to bold claims. So, the question remains, can it be done?

In Canada, we are well on our way with successful and ongoing refurbishments of Ontario’s existing nuclear fleet and planning for the development of small modular reactors, or SMRs, in Ontario, New Brunswick, Saskatchewan and most recently Alberta.

The infrastructure required to generate nuclear energy is significant. You not only need engineers and technicians working at a plant, but the supply chain to support it.

Over five decades worth of nuclear generation has allowed Canada to build a world class supply chain. Thus far it has focused on servicing CANDU reactors, but now we have the potential to expand into SMRs.

I first became interested in the CANDU reactor after working as a manufacturing engineer for one of the major fuel and tooling suppliers of Ontario Power Generation and Bruce Power. I witnessed firsthand the sophistication and quality of the nuclear supply chain in Ontario, being particularly impressed by the technical expertise and skilled workers in the industry.

The CANDU reactor is the unsung hero of the Canadian energy industry: one of the world’s safest nuclear reactors, exported around the world, and producing around 60 per cent of Ontario’s electricity, as well as 40 per cent of New Brunswick’s.

Having visited machine shops across Ontario, it’s evident that Canadians should take pride that the expertise and technology required for the safe generation of nuclear energy is available here in Canada.

As Canada looks to grow its nuclear output to achieve net-zero goals, its well-established engineering and manufacturing capabilities can make it a leader in the global expansion of nuclear energy as other nations work to make their COP28 declaration a reality.

Canada has two major advantages. The first is that it is a globally significant producer of uranium. We already export uranium from our incredible reserves in northern Saskatchewan and fabricate unenriched uranium fuel for CANDU. Canadian uranium will be an important ingredient in the success and sustainability of a nuclear renaissance, especially for our allies.

The second is that we have an established and active supply chain. While new nuclear builds have slowed dramatically in the western world — a result of the fallout from Chernobyl and Fukushima, as well as competition from cheap natural gas — Bruce Power and OPG are in the midst of major refurbishments to extend their operations until 2064 and 2055, respectively.

Bruce Power has successfully completed the first unit refurbishment on schedule and within budget, with ongoing work on the second unit. OPG has accomplished refurbishments for two out of its four units at Darlington, with the latest unit completed ahead of schedule and under budget. These multibillion-dollar refurbishments have actually grown our nuclear supply chain and demonstrate that it’s firing on all cylinders.

SMRs are the next phase of nuclear technology. Their size and design make them well suited for high production and modular construction. Investing in the supply chain for SMRs now positions Canada for significant economic gains.

OPG plans to build four GE-Hitachi BWRX-300 reactors, with the first slated for service as early as 2028. This first-of-a-kind investment will help identify and overcome design challenges and develop its own supply chain. That will benefit not only their project but those that follow suit.

SaskPower is planning to proceed with the same SMR design, as well as the first pilot globally of the Westinghouse eVinci microreactor; New Brunswick is moving ahead with the ARC-100, both for its existing nuclear site at Point Lepreau as well as in the Port of Belledune; and OPG and Capital Power recently announced a partnership to explore a nuclear reactor in Alberta, including the potential for the BWRX-300.

While the bulk of the nuclear supply chain is currently located in Ontario, other provinces have already been investing in the development of local capacity.

All this activity sets Canada up to leverage first-mover advantage and become a significant global provider of BWRX-300 components. Canada will not only see the economic benefits during initial construction but also through sustained demand for replacement parts in the future.

Nuclear energy has already made a significant contribution to the Canadian economy. In 2019, a study commissioned by the Canadian Nuclear Association and the Organization of Canadian Nuclear Industries showed that the nuclear industry accounted for $17 billion of Canada’s annual GDP annually and has created over 76,000 jobs.

Notably, 89 per cent of these positions were classified as high-skilled, and over 40 per cent of the workforce was under 40. This study, conducted before the announcement of SMR plans, was followed by a more recent report from the Conference Board of Canada on the economic impact of OPG’s SMR initiatives. The study found that the construction of just four SMRs at OPG could boost the Canadian GDP by $15.3 billion (2019 dollars) over 65 years and sustain approximately 2,000 jobs annually during that period.

Public perception of nuclear is improving. In 2023, the percentage of Canadians wanting to see further development of nuclear power generation in Canada grew to 57 per cent compared with 51 per cent in 2021.

As well, the Business Council of Canada has voiced its support for nuclear expansion, emphasizing Canada’s strategic advantages: political and public backing across the spectrum, coupled with a rich history of nuclear expertise.

Nuclear energy is dispatchable, sustainable and a proven technology. As nations move to achieve their climate goals, it has one other major benefit: a supply chain that is wholly western and in Canada’s case almost totally domestic.

While the critical minerals and manufactured goods required for batteries, wind and solar energy rely heavily on China and other politically unstable or authoritarian countries, nuclear provides energy independence. Canada is well positioned to help our allies improve their energy security with our strong, competitive nuclear supply chain.

Sasha Istvan is an engineer based in Calgary, with experience in both the nuclear supply chain and the oil and gas sector.

Related Topics:#MacdonaldLaurierInstitute #NucleanEnergy #SashaIstvan #SmallModularReactors

Up Next

The Cost to Western Canada if Steven Guilbeault Copies Biden’s Assault on LNG

Don't Miss

Opportunity knocks for Canada to become key LNG supplier as U.S. pauses projects

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Alberta’s grand bargain with Canada includes a new pipeline to Prince Rupert

Business / 1 hour ago

Carney’s European pivot could quietly reshape Canada’s sovereignty

Crime / 12 hours ago

Manhunt on for suspect in shooting deaths of Minnesota House speaker, husband

Alberta

Alberta’s grand bargain with Canada includes a new pipeline to Prince Rupert

Published on June 15, 2025

Todayville

From Resource Now

By Nelson Bennett

Alberta renews call for West Coast oil pipeline amid shifting federal, geopolitical dynamics.

Just six months ago, talk of resurrecting some version of the Northern Gateway pipeline would have been unthinkable. But with the election of Donald Trump in the U.S. and Mark Carney in Canada, it’s now thinkable.

In fact, Alberta Premier Danielle Smith seems to be making Northern Gateway 2.0 a top priority and a condition for Alberta staying within the Canadian confederation and supporting Mark Carney’s vision of making Canada an Energy superpower. Thanks to Donald Trump threatening Canadian sovereignty and its economy, there has been a noticeable zeitgeist shift in Canada. There is growing support for the idea of leveraging Canada’s natural resources and diversifying export markets to make it less vulnerable to an unpredictable southern neighbour.

“I think the world has changed dramatically since Donald Trump got elected in November,” Smith said at a keynote address Wednesday at the Global Energy Show Canada in Calgary. “I think that’s changed the national conversation.” Smith said she has been encouraged by the tack Carney has taken since being elected Prime Minister, and hopes to see real action from Ottawa in the coming months to address what Smith said is serious encumbrances to Alberta’s oil sector, including Bill C-69, an oil and gas emissions cap and a West Coast tanker oil ban. “I’m going to give him some time to work with us and I’m going to be optimistic,” Smith said. Removing the West Coast moratorium on oil tankers would be the first step needed to building a new oil pipeline line from Alberta to Prince Rupert. “We cannot build a pipeline to the west coast if there is a tanker ban,” Smith said. The next step would be getting First Nations on board. “Indigenous peoples have been shut out of the energy economy for generations, and we are now putting them at the heart of it,” Smith said.

Alberta currently produces about 4.3 million barrels of oil per day. Had the Northern Gateway, Keystone XL and Energy East pipelines been built, Alberta could now be producing and exporting an additional 2.5 million barrels of oil per day. The original Northern Gateway Pipeline — killed outright by the Justin Trudeau government — would have terminated in Kitimat. Smith is now talking about a pipeline that would terminate in Prince Rupert. This may obviate some of the concerns that Kitimat posed with oil tankers negotiating Douglas Channel, and their potential impacts on the marine environment.

One of the biggest hurdles to a pipeline to Prince Rupert may be B.C. Premier David Eby. The B.C. NDP government has a history of opposing oil pipelines with tooth and nail. Asked in a fireside chat by Peter Mansbridge how she would get around the B.C. problem, Smith confidently said: “I’ll convince David Eby.”

“I’m sensitive to the issues that were raised before,” she added. One of those concerns was emissions. But the Alberta government and oil industry has struck a grand bargain with Ottawa: pipelines for emissions abatement through carbon capture and storage.

The industry and government propose multi-billion investments in CCUS. The Pathways Alliance project alone represents an investment of $10 to $20 billion. Smith noted that there is no economic value in pumping CO2 underground. It only becomes economically viable if the tradeoff is greater production and export capacity for Alberta oil. “If you couple it with a million-barrel-per-day pipeline, well that allows you $20 billion worth of revenue year after year,” she said. “All of a sudden a $20 billion cost to have to decarbonize, it looks a lot more attractive when you have a new source of revenue.” When asked about the Prince Rupert pipeline proposal, Eby has responded that there is currently no proponent, and that it is therefore a bridge to cross when there is actually a proposal. “I think what I’ve heard Premier Eby say is that there is no project and no proponent,” Smith said. “Well, that’s my job. There will be soon. “We’re working very hard on being able to get industry players to realize this time may be different.” “We’re working on getting a proponent and route.”

At a number of sessions during the conference, Mansbridge has repeatedly asked speakers about the Alberta secession movement, and whether it might scare off investment capital. Alberta has been using the threat of secession as a threat if Ottawa does not address some of the province’s long-standing grievances. Smith said she hopes Carney takes it seriously. “I hope the prime minister doesn’t want to test it,” Smith said during a scrum with reporters. “I take it seriously. I have never seen separatist sentiment be as high as it is now. “I’ve also seen it dissipate when Ottawa addresses the concerns Alberta has.” She added that, if Carney wants a true nation-building project to fast-track, she can’t think of a better one than a new West Coast pipeline. “I can’t imagine that there will be another project on the national list that will generate as much revenue, as much GDP, as many high paying jobs as a bitumen pipeline to the coast.”

Canadian Energy Centre

Cross-Canada economic benefits of the proposed Northern Gateway Pipeline project

Published on June 15, 2025

Todayville

From the Canadian Energy Centre

Billions in government revenue and thousands of jobs across provinces

Announced in 2006, the Northern Gateway project would have built twin pipelines between Bruderheim, Alta. and a marine terminal at Kitimat, B.C.

One pipeline would export 525,000 barrels per day of heavy oil from Alberta to tidewater markets. The other would import 193,000 barrels per day of condensate to Alberta to dilute heavy oil for pipeline transportation.

The project would have generated significant economic benefits across Canada.

The following projections are drawn from the report Public Interest Benefits of the Northern Gateway Project (Wright Mansell Research Ltd., July 2012), which was submitted as reply evidence during the regulatory process.

Financial figures have been adjusted to 2025 dollars using the Bank of Canada’s Inflation Calculator, with $1.00 in 2012 equivalent to $1.34 in 2025.

Total Government Revenue by Region

Between 2019 and 2048, a period encompassing both construction and operations, the Northern Gateway project was projected to generate the following total government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $11.5 billion
Federal government revenue: $8.9 billion
Total: $20.4 billion

Alberta

Provincial government revenue: $49.4 billion
Federal government revenue: $41.5 billion
Total: $90.9 billion

Ontario

Provincial government revenue: $1.7 billion
Federal government revenue: $2.7 billion
Total: $4.4 billion

Quebec

Provincial government revenue: $746 million
Federal government revenue: $541 million
Total: $1.29 billion

Saskatchewan

Provincial government revenue: $6.9 billion
Federal government revenue: $4.4 billion
Total: $11.3 billion

Other

Provincial government revenue: $1.9 billion
Federal government revenue: $1.4 billion
Total: $3.3 billion

Canada

Provincial government revenue: $72.1 billion
Federal government revenue: $59.4 billion
Total: $131.7 billion

Annual Government Revenue by Region

Over the period 2019 and 2048, the Northern Gateway project was projected to generate the following annual government revenues by region (direct, indirect and induced):

British Columbia

Provincial government revenue: $340 million
Federal government revenue: $261 million
Total: $601 million per year

Alberta

Provincial government revenue: $1.5 billion
Federal government revenue: $1.2 billion
Total: $2.7 billion per year

Ontario

Provincial government revenue: $51 million
Federal government revenue: $79 million
Total: $130 million per year

Quebec

Provincial government revenue: $21 million
Federal government revenue: $16 million
Total: $37 million per year

Saskatchewan

Provincial government revenue: $204 million
Federal government revenue: $129 million
Total: $333 million per year

Other

Provincial government revenue: $58 million
Federal government revenue: $40 million
Total: $98 million per year

Canada

Provincial government revenue: $2.1 billion
Federal government revenue: $1.7 billion
Total: $3.8 billion per year

Employment by Region

Over the period 2019 to 2048, the Northern Gateway Pipeline was projected to generate the following direct, indirect and induced full-time equivalent (FTE) jobs by region: