Capital Power and Ontario Power Generation’s Collaboration on Small Modular Reactors in Alberta

In a groundbreaking move towards sustainable and reliable energy solutions, Capital Power Corporation (TSX: CPX) and Ontario Power Generation (OPG) have forged an alliance to assess the development and deployment of grid-scale small modular reactors (SMRs) in Alberta. This partnership, announced on January 15, 2024, signifies a significant step towards revolutionizing Alberta’s energy landscape by harnessing the potential of clean and efficient nuclear power.

Understanding the Agreement

The collaboration between Capital Power and OPG is centered on a comprehensive feasibility assessment aimed at exploring the viability of SMRs in Alberta. This assessment will delve into various aspects, including potential ownership and operating structures. The two companies are committed to completing this assessment within two years while concurrently advancing the next stages of SMR development.

Key Milestones and Developments

1. OPG’s Darlington New Nuclear Site:

• OPG is currently in the process of constructing North America’s inaugural fleet of SMRs at its Darlington New Nuclear site in Ontario.
• The completion of the first of four SMRs is expected by the end of 2028, with the unit becoming operational by the end of 2029.

1. Provincial Strategic Plan for SMRs (2022):

• The governments of Alberta, Ontario, Saskatchewan, and New Brunswick collaborated in 2022 to release a Strategic Plan for the deployment of SMRs.
• The Commitment Agreement between Capital Power and OPG aligns with this strategic plan, positioning the provinces at the forefront of nuclear innovation and clean energy markets.

Capital Power’s Perspective

Capital Power sees this collaboration as a transformative opportunity to enhance its global standing and elevate Alberta on the international stage. The company envisions a decarbonized power system and aims to provide real net-zero power solutions for customers through the deployment of SMR technology. Avik Dey, President and CEO of Capital Power, emphasizes the importance of safe, reliable, flexible, affordable, and clean base load electricity in Alberta’s future energy landscape.

OPG’s Nuclear Expertise

With decades of experience in building, operating, and maintaining clean and safe nuclear power generation, OPG’s President and CEO, Ken Hartwick, expresses enthusiasm in working with Capital Power. The collaboration is set to foster the exchange of expertise related to SMR development and deployment, contributing to enhanced energy security and economic growth in both Alberta and Ontario.

Government Officials’ Perspectives

1. Hon. Nathan Neudorf, Minister of Affordability and Utilities (Government of Alberta):

• Acknowledges the potential of SMRs to play a crucial role in Alberta’s pursuit of a clean, reliable, and affordable electricity supply mix.
• Describes the partnership as a significant step towards decarbonizing the grid while ensuring on-demand baseload power.

1. Hon. Todd Smith, Ontario’s Minister of Energy:

• Highlights Ontario’s commitment to leveraging its nuclear expertise to advance SMR technology globally.
• Emphasizes the potential of SMRs to attract new investments, create jobs, and reliably power communities.

1. Hon. Brian Jean, Minister of Energy and Minerals (Government of Alberta):

• Stresses Alberta’s focus on being a leader in delivering a reliable, affordable, and decarbonized energy system.
• Anticipates the collaboration with Capital Power and OPG to create the right framework for introducing SMRs to Alberta’s power grid.

1. Hon. Rebecca Schulz, Minister of Environment and Protected Areas (Government of Alberta):

• Describes SMRs as small yet powerful tools with the potential to reduce emissions across the economy.
• Expresses excitement about the collaboration and its potential to keep energy reliable and affordable for years to come.

Capital Power and Ontario Power Generation’s collaboration on advancing small modular reactors in Alberta marks a historic moment in the pursuit of sustainable and efficient energy solutions. As these two industry leaders join forces to explore the potential of SMRs, the provinces of Alberta and Ontario are poised to become pioneers in nuclear innovation, clean energy, and emerging markets for SMRs. The journey towards a decarbonized future takes a significant leap forward, promising a reliable, affordable, and environmentally conscious energy system for generations to come.