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Alberta

Alberta supports the development of Small Modular Nuclear Reactors

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Alberta signs small modular nuclear reactor MOU

Alberta has signed a memorandum of understanding (MOU) with New Brunswick, Ontario and Saskatchewan to support the development of small modular nuclear reactors (SMRs).

Premier Jason Kenney signed the MOU, previously signed by the three other provinces, on April 14. He joined New Brunswick Premier Blaine Higgs, Ontario Premier Doug Ford and Saskatchewan Premier Scott Moe at a virtual event where the premiers shared the findings of a study that examined the feasibility of SMRs in Canada.

“Alberta has always been committed to clean, affordable energy. Small modular reactors are an exciting new technology that could be used in the future to significantly cut greenhouse gas emissions, for example by generating power for Canadian oilsands producers. Nuclear is the cleanest form of electricity production, and with SMRs is now more affordable and scalable for industrial use. We are excited to be part of this group that will help develop Canadian SMR technology.”

Jason Kenney, Premier of Alberta

“Today’s announcement confirms the commitment of our provinces to advancing SMRs as a clean energy option, leveraging the strength and knowledge of each of our jurisdictions. This study confirms the feasibility of small modular reactors in Canada and outlines a path forward to deploy this new clean, safe, reliable and competitively priced power. This new technology will help attract investment, create high-skilled jobs and contribute to our growing economy.”

Scott Moe, Premier of Saskatchewan

“Our government believes the best way to ensure that Canada becomes a leader in advanced small modular reactor development and deployment is through continued engagement and partnerships. New Brunswick has already attracted two tremendous vendors in ARC Clean Energy Canada and Moltex Energy who are now developing their capacity and generating local economic development in the province. New Brunswick is well-positioned to be a world leader in the SMR field.”

Blaine Higgs, Premier of New Brunswick

“It is important that our provinces take these next steps together to continue leading the development of cutting-edge small modular reactors for the benefit of future generations. Ontario is home to a world-class nuclear industry, which we will leverage as we continue our critical work on this innovative technology in order to provide affordable, reliable, safe and clean energy while unlocking tremendous economic potential across the country.”

Doug Ford, Premier of Ontario

With the addition of Alberta to the MOU, all provinces involved have agreed to collaborate on the advancement of SMRs as a clean energy option to address climate change and regional energy demands while supporting economic growth and innovation.

The SMR Feasibility Study, formally requested as part of the MOU in December 2019, concludes that the development of SMRs would support domestic energy needs, curb greenhouse gas emissions and position Canada as a global leader in this emerging technology. SMRs are nuclear reactors that produce 300 megawatts of electricity or less. They can support large established grids, small grids, remote off-grid communities and resource projects.

The study, conducted by Ontario Power Generation, Bruce Power, NB Power and SaskPower, identifies three streams of SMR project proposals for consideration by the governments of Ontario, New Brunswick and Saskatchewan.

Stream 1 proposes a first grid-scale SMR project of approximately 300 megawatts constructed at the Darlington nuclear site in Ontario by 2028. Subsequent units in Saskatchewan would follow, with the first SMR projected to be in service in 2032.

Stream 2 involves two fourth generation advanced small modular reactors that would be developed in New Brunswick through the construction of demonstration units at the Point Lepreau Nuclear Generating Station. By fostering collaboration among the various research, manufacturing, federal and provincial agencies, an initial ARC Clean Energy demonstration unit plans to be ready by 2030.

Moltex Energy Inc.’s waste recycling facility and reactor is preparing to be ready by the early 2030s. Through ongoing support and collaborations, these advanced technologies could start being deployed as early as 2030 in support of the industrial needs in areas like Saskatchewan, Alberta and around the globe.

Stream 3 proposes a new class of micro-SMRs designed primarily to replace the use of diesel in remote communities and mines. A five-megawatt gas-cooled demonstration project is underway at Chalk River, Ont., with plans to be in service by 2026.

The report identifies the potential for all three streams to create employment and economic growth benefits for Canada, as well as opportunities to export technology and expertise to address global issues such as climate change and energy reliability.

The next action identified in the MOU is the development of a joint strategic plan, to be drafted by the governments of Alberta, New Brunswick, Ontario and Saskatchewan. The plan is expected to be completed this spring.

The partner provinces will continue to work together and across the nuclear industry to help ensure Canada remains at the forefront of nuclear innovation while creating new opportunities for jobs, economic growth, innovation and a lower-carbon future.

This is a news release from the Government of Alberta.

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Alberta

Low oil prices could have big consequences for Alberta’s finances

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From the Fraser Institute

By Tegan Hill

Amid the tariff war, the price of West Texas Intermediate oil—a common benchmark—recently dropped below US$60 per barrel. Given every $1 drop in oil prices is an estimated $750 million hit to provincial revenues, if oil prices remain low for long, there could be big implications for Alberta’s budget.

The Smith government already projects a $5.2 billion budget deficit in 2025/26 with continued deficits over the following two years. This year’s deficit is based on oil prices averaging US$68.00 per barrel. While the budget does include a $4 billion “contingency” for unforeseen events, given the economic and fiscal impact of Trump’s tariffs, it could quickly be eaten up.

Budget deficits come with costs for Albertans, who will already pay a projected $600 each in provincial government debt interest in 2025/26. That’s money that could have gone towards health care and education, or even tax relief.

Unfortunately, this is all part of the resource revenue rollercoaster that’s are all too familiar to Albertans.

Resource revenue (including oil and gas royalties) is inherently volatile. In the last 10 years alone, it has been as high as $25.2 billion in 2022/23 and as low as $2.8 billion in 2015/16. The provincial government typically enjoys budget surpluses—and increases government spending—when oil prices and resource revenue is relatively high, but is thrown into deficits when resource revenues inevitably fall.

Fortunately, the Smith government can mitigate this volatility.

The key is limiting the level of resource revenue included in the budget to a set stable amount. Any resource revenue above that stable amount is automatically saved in a rainy-day fund to be withdrawn to maintain that stable amount in the budget during years of relatively low resource revenue. The logic is simple: save during the good times so you can weather the storm during bad times.

Indeed, if the Smith government had created a rainy-day account in 2023, for example, it could have already built up a sizeable fund to help stabilize the budget when resource revenue declines. While the Smith government has deposited some money in the Heritage Fund in recent years, it has not created a dedicated rainy-day account or introduced a similar mechanism to help stabilize provincial finances.

Limiting the amount of resource revenue in the budget, particularly during times of relatively high resource revenue, also tempers demand for higher spending, which is only fiscally sustainable with permanently high resource revenues. In other words, if the government creates a rainy-day account, spending would become more closely align with stable ongoing levels of revenue.

And it’s not too late. To end the boom-bust cycle and finally help stabilize provincial finances, the Smith government should create a rainy-day account.

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Alberta

Governments in Alberta should spur homebuilding amid population explosion

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From the Fraser Institute

By Tegan Hill and Austin Thompson

In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Alberta has long been viewed as an oasis in Canada’s overheated housing market—a refuge for Canadians priced out of high-cost centres such as Vancouver and Toronto. But the oasis is starting to dry up. House prices and rents in the province have spiked by about one-third since the start of the pandemic. According to a recent Maru poll, more than 70 per cent of Calgarians and Edmontonians doubt they will ever be able to afford a home in their city. Which raises the question: how much longer can this go on?

Alberta’s housing affordability problem reflects a simple reality—not enough homes have been built to accommodate the province’s growing population. The result? More Albertans competing for the same homes and rental units, pushing prices higher.

Population growth has always been volatile in Alberta, but the recent surge, fuelled by record levels of immigration, is unprecedented. Alberta has set new population growth records every year since 2022, culminating in the largest-ever increase of 186,704 new residents in 2024—nearly 70 per cent more than the largest pre-pandemic increase in 2013.

Homebuilding has increased, but not enough to keep pace with the rise in population. In 2024, construction started on 47,827 housing units—the most since 48,336 units in 2007 when population growth was less than half of what it was in 2024.

Moreover, from 1972 to 2019, Alberta added 2.1 new residents (on average) for every housing unit started compared to 3.9 new residents for every housing unit started in 2024. Put differently, today nearly twice as many new residents are potentially competing for each new home compared to historical norms.

While Alberta attracts more Canadians from other provinces than any other province, federal immigration and residency policies drive Alberta’s population growth. So while the provincial government has little control over its population growth, provincial and municipal governments can affect the pace of homebuilding.

For example, recent provincial amendments to the city charters in Calgary and Edmonton have helped standardize building codes, which should minimize cost and complexity for builders who operate across different jurisdictions. Municipal zoning reforms in CalgaryEdmonton and Red Deer have made it easier to build higher-density housing, and Lethbridge and Medicine Hat may soon follow suit. These changes should make it easier and faster to build homes, helping Alberta maintain some of the least restrictive building rules and quickest approval timelines in Canada.

There is, however, room for improvement. Policymakers at both the provincial and municipal level should streamline rules for building, reduce regulatory uncertainty and development costs, and shorten timelines for permit approvals. Calgary, for instance, imposes fees on developers to fund a wide array of public infrastructure—including roads, sewers, libraries, even buses—while Edmonton currently only imposes fees to fund the construction of new firehalls.

It’s difficult to say how long Alberta’s housing affordability woes will endure, but the situation is unlikely to improve unless homebuilding increases, spurred by government policies that facilitate more development.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Austin Thompson

Senior Policy Analyst, Fraser Institute
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