Canada aims to grow nuclear and uranium capacity, at home and abroad

The Nuclear Energy Strategy for Canada was unveiled by Minister of Energy and Natural Resources Tim Hodgson, and sets out how Canada intends to strengthen energy affordability, security and sustainability at home and abroad by leveraging its existing strengths, according to Natural Resources Canada (NRCan). These strengths include CANDU reactor technology, world-class uranium deposits, a top-tier Canadian nuclear workforce and supply chain, proven refurbishment expertise, medical isotopes and other nuclear innovations. And - with 38 countries to date endorsing the Declaration to Triple Nuclear Energy by 2050 - the global nuclear renaissance creates time-limited opportunities that Canada is well-positioned to capture, the strategy notes.

Referencing Canadian CANDU reactor technology - with 26 reactors in operation around the world, including 17 in Canada - as well as Canada's status as the world’s second-largest producer of uranium, Canadian federal support for nuclear new-build projects, and its track record of nuclear refurbishments, the strategy is structured around four pillars:

• Enabling new builds across Canada

• Being a global supplier and exporter of choice

• Expanding uranium production and nuclear fuel opportunities and supporting world-class long-term nuclear waste management

• Developing new Canadian nuclear innovations (including fission and fusion)

Key objectives under the new-build plans include enabling the construction of up to ten new large-scale reactors within Canada, with two under construction by 2035 and five more planned or under development by 2040; at least one nuclear deployment (including small modular reactors, SMRs) operational or under construction outside Ontario by 2035; and a Canadian microreactor to be demonstrated by 2035 and deployed to remote communities in the late 2030s.

The government will aim to centralise federal support for nuclear buildouts and intellectual property management. A draft Policy on Federal Financing of New Nuclear Power Projects will be released by April 2027, by the Departments of Finance and Natural Resources Canada, outlining preconditions for federal support and a range of financing instruments, including green bonds, Canada Infrastructure Bank participation, and loan guarantees. It will also aim to Increase Indigenous equity participation in nuclear energy generation projects, alongside broader economic and leadership opportunities for Indigenous communities.

The regulatory framework for nuclear projects will be streamlined, with a target of completing federal regulatory review within two years, to ensure projects are reviewed efficiently, and federal funding will prioritise a fleet-based approach to reduce regulatory burden, construction risk, and supply chain costs, the strategy notes.

Key export objectives include a unified "Team Canada approach", and securing the success of existing international CANDU projects, beginning with Romania's plans for new build and refurbishment programmes. The strategy targets winning at least four new international markets for CANDU technology by 2040, and engaging six to ten new nuclear entrant countries over a 15-year horizon; establishing a Nuclear Export Strategy providing end-to-end lifecycle support; and positioning the Canadian supply chain "beyond CANDU" to take part in SMR and large light-water reactor projects globally, with an objective of capturing "significant Canadian supply chain participation" in at least five international non-CANDU large reactor and SMR projects by 2040.

Uranium expansion

Geopolitical volatility has exposed fragility in nuclear fuel supply chains at every stage, the strategy notes, with nuclear fuel supply chains bifurcating with certain markets - it cites the USA and Europe in particular - "moving away from a hostile aggressor in favour of reliable actors" while also needing to ensure alternative supplies. "Canada is uniquely positioned to address this evolving demand, particularly in the upstream uranium stages, but there is also a compelling case for expanding downstream capabilities selectively," it notes.

To this end, the strategy sets an objective to strengthen and secure fuel supply chains for all reactors in Canada by 2032, with a doubling of Canadian uranium exports over the 10 years to 2035, supported by new mine production entering service by 2035. Canadian policies on uranium mining investment will be reviewed and updated as necessary by 2027. 

Canada currently has no requirements for uranium enrichment services - the CANDU fleet uses unenriched fuel - but with the deployment of SMRs and, possibly, light-water reactors, Canada will have a "modest need" for enriched uranium in future, the strategy says. It envisages meeting this need primarily through alliances and contracts, but does not rule out the possibility of developing domestic enrichment: "The longer-term question of whether Canada should develop domestic enrichment capability remains under assessment. The case would strengthen if the domestic non-CANDU fleet expands considerably, but in the meantime, forming deliberate partnerships with trusted allies - with Canada as the top supplier of uranium - will ensure our fuel security."

A Nuclear Fuels Table of industry, provincial and territorial governments, and Indigenous groups, will be the primary forum for tracking supply chain analysis. And at the other end of the fuel cycle, the third pillar includes an objective to advance responsible waste management solutions by continuing to support waste management projects such as the Deep Geological Repository project for used nuclear fuel.

Innovation

The fourth pillar of the strategy sets out objectives to strengthen Canadian innovation to sustain Canada's status as a Tier One nuclear nation. These objectives include aims to more than double annual private-sector nuclear R&D investment by 2032 and establish Canada as a leader in the global fusion fuel cycle market, and the development and demonstration of a Canadian-controlled Generation IV microreactor technology before 2035. Also included is an expansion of research reactor capacity by the early 2030s, alongside a formal assessment of the case for a large-scale research reactor replacement; and development of a Radioisotope Strategy to grow Canada's share of the global medical isotope market by at least 10%. 

Complementing an independent review of Canada's national nuclear innovation ecosystem, which will consider deployment of smaller research reactors "in regions developing in-jurisdiction expertise to support their deployment ambitions", the Government intends to "leverage the Pan-Canadian Multipurpose Research Reactor Alliance to support consideration of the case for a large-scale research reactor to replace the National Research Universal (NRU) reactor". The closure of the NRU in 2018 "removed a cornerstone capability" and replacement of this infrastructure "is a strategic priority, not simply a scientific one", the strategy notes.

Powering up

"We are moving at speeds not seen in generations to get big things done and leveraging pre-existing strengths to become a modern energy superpower," Hodgson said as he launched the strategy. 

On social media platform X, he went on to say the new strategy "is more than an energy plan. It is an industrial strategy, a pillar of our energy security, and an instrument of our foreign policy. It means high-quality jobs, a road to a clean grid, and diversifying our trading partners around the world". 

Cameco - which as well as being one of the largest global producers of uranium, is now a co-owner, with Canadian investment firm Brookfield, of Westinghouse - welcomed the new strategy, and its recognition that "Canada offers multiple nuclear reactor technologies including the Cameco-owned AP1000". 

"The strategy is also clear that Canada has an important role to play in delivering secure, reliable nuclear fuel to allied partners facing geopolitical realities impacting national and energy security. With our tier-one uranium assets, world-class fuel services, and strategic investments across the nuclear fuel and reactor cycle, Cameco is fundamental to Canada's nuclear energy strategy," the company said on X.

Fred Dermarkar is President and CEO of Atomic Energy of Canada Ltd - Canada's nuclear Crown corporation, which owns the intellectual property for the CANDU reactor technology on behalf of the Canadian government. (CANDU is for CANada Deuterium Uranium reactor). "This is a pivotal moment for Canada," he said. "Nuclear energy will play a critical role in meeting growing energy demand while advancing economic growth, energy security, and climate objectives. The Nuclear Energy Strategy provides an important national framework to help turn that opportunity into action."

AtkinsRéalis is the sole licensee for the CANDU technology and is developing the Monark reactor: the Government of Canada last year announced it would lend the company up to CAD304 million (USD212 million) over four years to support the development. AtkinsRéalis Ian Edwards said the Nuclear Energy Strategy "reflects the ambition and vision Canada's nuclear industry deserves," adding: "I look forward to continuing to work together to advance Canada's nuclear advantage at home and abroad."

The Nuclear Energy Strategy for Canada is available on NRCan's website.