Two Canadian government agencies will together invest CAD3 billion (USD2.1 billion) in Ontario Power Generation’s (OPG) Darlington New Nuclear Project, acquiring minority stakes to help reduce financial and operational risks associated with building small modular reactors (SMRs). Canada Growth Fund Inc., a CAD15 billion investment vehicle created to attract private capital for clean energy projects, will contribute up to CAD2 billion and take a 15% stake in the project. The Building Ontario Fund, a Crown agency with CAD8 billion in provincial support to spur infrastructure investment, will add CAD1 billion for a 7.5% stake. OPG will remain the majority owner and operator.
In May, the Province of Ontario granted OPG approval to move forward with construction on what will become the first operational commercial SMR project in any G7 country. The Darlington site will house four GE Vernova Hitachi Nuclear Energy BWRX-300 reactors, together expected to produce 1,200 MW of clean power, enough to light up about 1.2 million homes. The total project cost is estimated at CAD20.9 billion. Canada Growth Fund and the Building Ontario Fund said they are using their mandates to share near-term construction and technology risks that currently discourage private sector investment. Their participation is intended to pave the way for future private and Indigenous investment in the project. The Darlington New Nuclear Project (DNNP) was also recently listed as one of the first initiatives to be reviewed by the federal Major Projects Office, which was established to accelerate the development of large-scale infrastructure.
Canadian Prime Minister Mark Carney and Ontario Premier Doug Ford announced the financing during a visit to the Darlington Nuclear Generating Station. “This is a generational investment that will build lasting security, prosperity, and opportunities,” Carney said, emphasizing the project’s role in creating thousands of well-paying jobs and providing clean power to hundreds of thousands of homes. Ford described the investment as “a down payment on Ontario’s nuclear energy future,” adding, “We’re protecting Ontario by supporting good-paying, long-term jobs for Ontario workers and building the energy infrastructure – including both SMRs and new, large-scale nuclear – needed to make Ontario an energy superpower,”
Funding from the two government agencies will be released to OPG in two tranches. The first tranche will finance the initial unit, SMR 1, while the second tranche will support the next three reactors once construction milestones are achieved. OPG expects SMR 1 to be completed and connected to the grid by 2030, with the remaining units following in the mid-2030s. According to OPG, Canada Growth Fund, and the Building Ontario Fund, DNNP has a higher risk profile as a first-of-its-kind project, which limits access to traditional financing. The agencies said their investments will help de-risk the project and prepare it for private sector participation. “DNNP represents a compelling opportunity for CGF and BOF to invest in a large-scale rate-regulated asset with rates subject to oversight and approval by the Ontario Energy Board,” they said.
Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc., said there is “significant potential” for SMR projects to be replicated across Canada and internationally. “We look forward to building upon this financing model to attract further interest from private investors committed to developing low-carbon energy infrastructure in Ontario and across Canada,” he added.
Since the provincial green light in May, OPG has made steady progress at the Darlington site, where preparation began in 2022. Components for a tunnel boring machine named Harriet Brooks which will create a 3.4-kilometre tunnel for the condenser cooling water system arrived in July for assembly in early 2026. The first basemat module assemblies, forming the reactor’s foundation, are also being delivered. Construction of pre-assembly and fabrication buildings is complete, while excavation and grading work for all four reactor units continues at the site.