Canada Eyes Expansion of Large-Scale Nuclear Reactors to Meet Energy Needs — Update

By Paul Vieira

OTTAWA--Canada outlined on Monday a strategy to ramp up the construction of nuclear reactors across the country as officials look to expand power generation while capitalizing on the country's abundant reserve of high-grade uranium.

Officials said the aim is to build 10 new large-scale reactors within Canada--with at least two under construction by 2035. Federal officials also pledge to accelerate regulatory reviews, and to develop by early next year a new financing framework aimed at attracting capital from pension and sovereign-wealth funds to kick-start the nuclear-power expansion.

The strategy, unveiled by Canada's Energy Minister Tim Hodgson, provides some insight on how the country is hoping to attain its goal of doubling the capacity of Canada's electricity grid by 2050. This expansion is necessary, officials say, to meet demand from sectors such as rare-earths mining, artificial-intelligence data centers and advanced manufacturing.

Prime Minister Mark Carney was excluded from the strategy's planning and development, federal officials said, as the government adhered to a conflict-of-interest screen--administered by Canada's chief bureaucrat--to avoid policy decisions dealing with companies in which Carney has, or has had, a financial interest. Prior to entering politics last year, Carney was the chairman of Brookfield Asset Management. Brookfield in 2023 acquired a 51% interest in Westinghouse Electric, a nuclear-power company.

"To put it simply, if our goal is to double our grid and reach net-zero emissions by 2050, there is no credible plan for Canada to do that without nuclear energy," Hodgson said at a press conference in suburban Toronto. Developing energy projects has become a cornerstone policy initiative for the country's Liberal government, as it tries to capitalize on its reserves of oil, gas, metals and uranium to recharge an economy under strain from President Trump's tariff policy.

The nuclear strategy is ambitious but contains few concrete details on how to expand the use of nuclear reactors across the country. The federal government faces limits on its influence because under Canada's federal system, it is the provinces that have exclusive jurisdiction over electricity generation.

Hodgson said the federal government is not seeking to take over electricity policy. Instead, it wants to play a coordinating role that can bring the provinces, industry and investors together to pursue nuclear-power projects.

Nearly all of the nuclear-power generation in Canada is focused in the country's most populous province, Ontario. Nuclear energy accounts for 13% of the national electricity supply, but a bigger 55% share in Ontario.

Besides large-scale nuclear reactors, federal officials are also eyeing the deployment of small modular reactors, which are assembled in factories and can produce enough energy for midsized urban regions. The western Canadian province of Saskatchewan has signaled enthusiasm for these smaller reactors, also known as SMRs. Proponents say the small-modular reactors offer a way to provide electricity to remote, northern indigenous communities, some of which are fueled by diesel.

Write to Paul Vieira at paul.vieira@wsj.com

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June 22, 2026 13:44 ET (17:44 GMT)