The future is currently taking shape in a deep, reinforced pit of nuclear grade concrete in Darlington, Ontario. Here, Canada’s first small modular reactor (SMR) is becoming a permanent landmark.
An SMR is a type of advanced nuclear reactor with a capacity of up to 300 megawatts (MW) per unit — which is roughly one third the generating capacity of traditional nuclear reactors. For years, SMRs have been viewed as important theoretical technologies within the energy industry. Canada has long been investing in SMR and other energy technologies to help its expanding energy demands since 2018, and both ends of Canada’s political spectrum have shown support for SMRs.
The Canadian Nuclear Safety Commission (CNSC) has been facilitating SMR technologies through a pre-licensing process to help identify potential SMR solutions and their caveats. As of 2023 a total of nine potential models have been submitted to the CNSC for review: Terrestrial Energy’s Integral Molten Salt Reactor; Ultra Safe Nuclear Corporation’s MMR-5 and MMR-10 microreactors; ARC Nuclear’s liquid sodium ARC-100; Moltex’s stable salt reactor; LLC’s pressurized light water SMR-160; U-Battery’s high temperature gas U-Battery; GE Hitachi’s boiling water reactor BWRX-300; X-energy’s high temperature gas Xe-100; and Westinghouse’s eVinci microreactor.
As of February 2026, driven by a budget of $20.9 billion, the Canadian bet on nuclear energy has turned into construction. In Darlington, Ontario, a small city located approximately 75 kilometres east of Toronto, the first power plant utilizing a four SMR system is being built.
We understand the technology works based on the history of light water reactors (LWRs), which were first used by the US military in submarines and nautical warfare as a way of providing clean energy for long periods of time. The more recent development of functional SMR units comes from preexisting nuclear technologies, such as LWRs, and decades of failed models for military application.
The core question is no longer if the technology works. Today, the question facing Canada in its development of nuclear energy is whether or not it can build SMRs fast enough to cope with growing national electricity demand, which is projected to double or even triple by 2050. Canada is already the fourth largest consumer of electricity in the world, mainly driven by the variation in temperatures throughout the year and a population spread out between northern and southern border communities.
Additionally, a large part of the Canadian industrial sector, specifically pulp and paper, gas extraction, as well as metallic and nonmetallic mineral production make up a significant portion of Canadian energy demand. With the added growth of technology sector industries, such as AI and EV supply chains, Canada needs cheaper alternatives to supplying energy.
The importance of SMR technology lies in four factors: its modularity, lower capital investment, safeguards, as well as its contribution to economic growth. These particular benefits potentially make them a better alternative to fossil fuels and large nuclear reactors. Specifically, SMRs are generally safer and cheaper compared to conventional nuclear reactors.
Unlike traditional nuclear reactors, which require a substantial amount of work at the construction site to build, an SMR is designed to be factory-fabricated and shipped via rail or truck. Then, as energy demand grows, additional reactors can be delivered incrementally, avoiding the possibility of billion-dollar delays.
The added benefit of modularity is that communities in need of energy can more readily “attach” SMRs to an already existing power grid, rather than having to go through more tumultuous labour that can come with setting up other electricity generation methods.
SMRs also provide a lower capital investment due to the lower upfront cost of building a power plant. A typical 100MW SMR would require somewhere around $1 billion USD (around $1.4 billion CAD) in upfront costs, compared to roughly $10 billion USD (around $14 billion CAD) to build a 10000 MW reactor power plant. Generally, lower capital investments equate to lower risks, and create more opportunities for projects to be financed from a greater range of partners. This trait has allowed SMR technology to expand both domestically and internationally, particularly in the United States, where both private equity and government firms have invested greatly in developing SMR technology.
Additionally, SMR designs are generally simpler, often relying on more passive systems that run on lower powers and operating pressures. This means that no human or external power is required to shut down systems in the event of a failure. Because these systems rely on physical phenomena, nuclear accidents have a significantly lower risk of occurring compared to traditional reactor power plants, making them safer than some may assume.
Along with safety, SMRs can be designed to have long refueling cycles, some of which can reach 10 years or more. A longer refueling cycle is generally more beneficial for nuclear reactors because it implies a reduction in the frequency of maintenance outages, meaning more continuous electricity generation.,
In Northern Canada, there is a particular interest in SMRs. In Nunavut, the Yukon, and the Northwest Territories, it is much harder to build and maintain expensive power plants due to isolated geography, extreme winters, and a lack of resources. SMRs could provide a reliable solution and an alternative to the gasoline and diesel fuel methods already used.
This is generally seen as a benefit to northern communities as it enhances energy security for remote locations and makes them less reliant on maintenance from other towns, which could take much longer to repair.
A report was commissioned by the Yukon Department of Energy, Mines, and Resources in 2023 to determine if SMRs could help meet the territory's 45% greenhouse gas reduction goal by 2030, as well as serve as a reliable source of energy. The report found that it was best to wait and see how the technology matures in other parts of Canada before the Yukon would invest in it as well. Ironically, the noted issue with SMRs for use up north was that they generated too much power. Only the smallest SMRs (also called microreactors) would better suit the needs of the North. These small reactors could be positioned as small power stations to the North, providing significantly less maintenance and free power to remote mining sites and villages.
The “secret sauce” of Canada’s SMR strategy is not found in a single technical breakthrough, but rather in a paradigm shift, as we move from treating nuclear power as a megaproject to a standardized industrial product. Canada has broken this cycle by implementing a fleet approach. By selecting the GE Hitachi BWRX-300 for use in both Ontario and Saskatchewan, the provinces have effectively created a shared assembly line. This domestic strategy creates a robust “closed-loop” economy, ensuring that every dollar invested in the nuclear lifecycle remains within the country’s borders.
This industrial efficiency is mainly underpinned by a high level of regulatory and political team-work. The CNSC has evolved to use a joint-licensing framework that allows a single design approved for one plant to be fast-tracked for many other provinces and their respective plants. This regulatory decision has allowed Canada to better work with other countries.
Finally, with the use of a “Team Canada” supply chain, the country's natural resources have been better integrated with modern social standards. Crucially, the 2026 model has transitioned Indigenous communities from stakeholders to equity partners. This shift ensures that as SMRs are deployed more across Canada, they carry a social responsibility as well as an economic one. This combination of streamlined regulation and inclusivity has positioned Canada as a potential global leader in SMR technology.
The bet on SMRs is far from a guaranteed success. SMRs suffer from supply chain and fuel cycle issues. These reactors use High-Assay Low-Enriched Uranium (HALEU) fuel, which requires advanced manufacturing and new kinds of infrastructure. New or modified transport containers are required to move large quantities of HALEU demanding new, modified regulations to work.
It is critical that a supply chain of HALEU can be established. This will require a very large capital investment that will require added support from governments until the commercial demand for HALEU increases.
Beyond fuel, a significant bottleneck has emerged in the need for talented workers. A 2026 study done by the Canadian Nuclear Association found that as the construction of new nuclear facilities increases, the nuclear sector faces a shortage of specialized nuclear-certified welders and pipefitters.
To keep a shortage of skilled workers from occurring, the federal government recently expanded the Union Trading and Innovation Program with a $75 million investment, specifically for the green energy trades. A vital part necessary to Canada’s success now depends on whether it can train a new generation of specialists fast enough to prevent a rapid shortage of these workers from occurring.
Additionally, the public perception of nuclear energy is generally very pessimistic. This has stemmed from past nuclear accidents, although the actual probability of such an accident occurring again is very low. However, the word “nuclear” still carries a heavy psychological weight.
Given that SMRs are an offshoot of traditional nuclear reactors, it is likely SMRs will face a somewhat different set of publicity challenges. This creates the need for SMRs to be developed collaboratively with the general public. By doing so, a high degree of transparency with the public may allow SMRs to be widely viewed as a different breed of nuclear technology.
Another persistent issue with the public perception of nuclear energy has been nuclear waste. Canada has continued to address this problem through an Integrated Waste Strategy. As radioactive waste is generated, the highest international practices are utilized to protect health, safety, security, and the environment.
Central and Eastern Europe have emerged as the most eager customers for Canadian nuclear expertise. They view Canada’s progress as a potential blueprint for their own energy independence. Poland is planning to deploy its own fleet of the same SMRs currently under construction in Ontario, participating in the Canadian supply chain and bypassing the potential risks inherent with a novel energy solution. In early 2025, a $40 million contract was signed for Ontario’s Laurentis Energy Partners to support Poland’s Preliminary Safety Analysis Report (PSAR). This contract ensures that Canadian parts and services are essential to Poland’s energy infrastructure for the next 60 years.
Estonia has followed suit, signing agreements with Canada as they look to replace their oil industry with SMRs. In late 2025, Estonian utility company Fermi Energia signed an agreement with Canada’s Aecon to help work on SMR deployment. Estonia is essentially tapping into Canada’s own regulatory body and economy, allowing Estonia to fast track its own transition toward a cleaner energy grid while also contributing to the growth of the Canadian nuclear sector.
As of February 2026, Canada’s SMR strategy has turned into real construction. If Canada can navigate the bottlenecks of fuel security, specialized labour, and public perception, it won’t simply be creating its own net zero future. Rather, Canada will be exporting its expertise and designs creating global economic and environmental impacts.
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