The federal and Ontario governments have agreed to invest a total of $3 billion in the Darlington New Nuclear Project in Clarington, Ont.

The development is one of five that Prime Minister Paul Carney has recommended that the newly-opened Canadian Major Projects Office fast-track in accordance with new federal legislation. The federal government will invest $2 billion in the small modular reactors (SMR) project, while the province has committed $1 billion.

The project’s current estimated construction cost is $20.9 billion.

Ottawa is investing through the Canada Growth fund, while the province is making its contribution through the Building Ontario Fund. In return for the investments, the federal government and Ontario will receive 15% and 7.% ownership stakes, respectively.

Ontario Power Generation (OPG), a provincial Crown corporation that provides about half of the province’s electricity, will remain the majority owner of the project and oversee its construction.

“The Darlington New Nuclear Project will create thousands of high-paying careers and power hundreds of thousands of Ontario homes with clean energy,” said Carney. “This is a generational investment that will build lasting security, prosperity, and opportunities.”

Upon completion, the DNNP will include four grid-scale commercial SMRs – a first among G7 nations – that are expected to deliver up to 1,200 megawatts of reliable, affordable, and low-carbon electricity, enough to power 1.2 million homes.

The two governments’ investments are designed to de-risk the construction and operation of the first SMRs. According to the two governments and OPG, the deal is paving the way to spur private sector and Indigenous investment in the project over time.

Ottawa and the province will provide the funds in two tranches, initially funding the first two SMRs and then the final two. The first SMR is expected to be completed and in operation by 2030, and the last two are slated for delivery in the mid-2030s.

OPG will consult with the neighbouring Williams Treaties First Nations during the project’s developments. Conversations will advance at a pace set by the First Nations, said the two governments and OPG.

The Conference Board of Canada predicts that the project will create up to 18,000 jobs annually during construction and add $38.5 billion to Canadian GDP over the next 65 years.

Pictured: The future Darlington New Nuclear Project in Clarlington, Ont.

Rendering: OPG