Ottawa stands by Darlington small modular reactor amid delays and rising costs

Detailed summary

Project aligns with Canada Growth Fund’s mandate to shoulder risk for tech that can drive economic growth, advance climate goals, Energy Minister says

The federal government is shrugging off an engineering setback at Ontario’s Darlington small modular reactor project, with Energy Minister Tim Hodgson calling it “a reality in all first-of-a-kind projects.”

Mr. Hodgson defended the Canada Growth Fund’s $2-billion equity investment in the project, saying it aligns with the taxpayer-backed fund’s mandate to shoulder risk for technologies that can drive economic growth and advance climate goals.

“It’s important for Canada that we do not balk on making these important investments,” he said.

Earlier this week, Ontario Power Generation said it would undertake a comprehensive assessment after filings with the Ontario Energy Board indicated the Darlington SMR project is facing cost overruns and delays.

To get its first new nuclear reactor in decades, Canada must beat the clock – and the odds

The Crown corporation reported that the overruns reflected the “ongoing engineering” work of its partner, GE Vernova Hitachi Nuclear Energy, which is responsible for designing the BWRX-300 reactor and other aspects of the facility.

In a statement, GE Vernova Hitachi spokesperson Jonathan Allen pointed to other factors outside his company’s control.

“While engineering and design maturity are important considerations, as OPG’s update recognizes, there are multiple interconnected contributions across engineering, procurement and construction, as well as evolving market conditions, including inflation and geopolitical risks.”

In quarterly financial statements released Tuesday, OPG said the first reactor unit would not be completed within its previously disclosed $7.7-billion budget.

Opening of the article, excerpted from The Globe and Mail (Report on Business). To read the rest, open the article on the publisher's site.