How Can Nuclear Energy be used in Northern Canada?

It may seem odd to talk about nuclear power in northern Canada, as it is typically thought of as powering dense urban areas and requiring immense infrastructure and technical expertise. However, a new type of nuclear power plant, a small modular reactor (SMR), is expanding where nuclear energy can be applied.

A small modular reactor is exactly what it sounds like: a nuclear reactor that is much smaller than traditional nuclear reactors and can be produced in a factory to then be shipped to the desired location. A single SMR can produce up to 300 MW of electricity (the Yukon’s total generation capacity in 2021 was 153.1 MW) and can operate for extended periods of time without needing refuelling. Microreactors are an even smaller version of SMRs, with accordingly reduced energy generation and size.

How do Small Modular Reactors Work?

SMRs use the same process as traditional nuclear reactors, just at a smaller scale and with varying designs. In general, a nuclear reactor uses nuclear fuel to heat water, producing steam that turns a turbine and generates electricity. Various forms of uranium and plutonium are usually used as the nuclear fuel, with thorium also being explored as a fuel source.

Nuclear fuel has an extremely high energy density. A surprisingly small amount of nuclear fuel is needed to raise the temperature of a volume of water, especially when compared to traditional fuels like wood or fossil fuels, which require much larger amounts to achieve similar results.

Fuel Type	Energy Density (Megajoules per kilogram)
Coal	25
Diesel	42-46
Natural Gas	42-55
Uranium 235	3 900 000

The energy density of different fuels, measured in megajoules per kilogram (MJ/kg). Source [1].

The Potential of SMRs

The potential for low-carbon power with no local emissions and less frequent refueling has attracted the attention of both provincial and federal governments. Canada has implemented a federal roadmap and action plan for SMR technology, stating that they “are a promising technology which may be able to help mining companies and local communities in off-grid, remote, or northern areas transition away from using diesel” [2]. Northwest Territories and Nunavut were part of the group of territories and provinces involved in the federal planning, alongside Alberta, Saskatchewan, Ontario, and New Brunswick.

An SMR reactor runs continuously to generate electricity and produces heat as a by-product, which can be captured and used to warm buildings. Over the long term, electricity produced by SMRs have the potential to lower electricity costs. The levelized cost of electricity, a measure of total cost over the lifetime of electricity generation, for SMRs used in mining applications was estimated to be potentially up to 20 – 60% less than diesel generation [2].

The Reality of SMRs

For all their promise, SMRs still need to be proven as a viable technology. Since there are currently no operational SMRs anywhere in Canada, many claims about their cost, performance, and safety features have yet to be validated. Some provinces are advancing their development. Ontario just approved construction of a 300 MW SMR addition to the Darlington Nuclear Generating Station , with a plan to build four more. Saskatchewan has been working with Ontario to share SMR expertise, and Alberta is studying their use in the oilsands. Some First Nations communities in New Brunswick are partnering with SMR companies to build SMRs in the province.

In northern Canada, there is interest in small modular reactors (SMRs), but the resources needed to install them are still prohibitive. Currently, the main strategy is to take a wait-and-see approach. By monitoring the installation of SMRs in other parts of Canada first, the challenges they present, like supply chains and nuclear waste disposal, can be observed rather than encountered first-hand, and the technical expertise can be built before introducing the technology to the north.

In 2023, the Yukon Department of Energy, Mines, and Resources commissioned a report to determine if SMRs could help meet the territory’s 45% GHG-reduction target by 2030, as well as energy security goals [3]. The report looked at three scenarios:

• Adding a 100 MW unit to the Yukon Integrated System (the main grid)
• Adding a 25 – 30 MW unit to off-grid mines
• Adding a <5 MW microreactor to small hamlets

The report notes the progression of SMR technology elsewhere in Canada and recommends that the Yukon be a “fast follower”, observing the ongoing projects throughout the country and proceeding quickly once the technology has matured. A noted issue with SMRs in the Yukon and northern Canada in general is the generation of too much power. A microreactor (the smallest SMRs) that produces 5 MW of power would generate more power than a small community would use, meaning that appropriate reactor sizing is what may be needed to avoid overloading the community power grids.

Nuclear Waste Management

Canada’s Nuclear Waste Management Organization (NWMO) is legally responsible for the long-term management of all used nuclear fuel in the country, including any potential waste from SMRs in the Yukon [3]. The national plan involves permanently storing the waste in a deep geological repository built more than 500 meters underground in Ontario. This means that, per the national plan, no nuclear waste would be stored long-term within the Yukon.

The NWMO (Nuclear Waste Management Organization) would manage the transportation of spent fuel from the Yukon to the Ontario repository. Before this final disposal, spent fuel can be stored temporarily on-site in sealed casks. Some advanced SMRs claim the ability to recycle spent fuel, which may reduce the amount of long-term nuclear waste.

Safety

SMRs are designed with passive safety systems that make them “walk-away” safe, meaning that, in the event of an emergency, the reactor can shut down and cool itself without any human intervention or external power. This level of safety is achieved through various features present in the different SMR designs, like natural circulation for cooling, which eliminates the need for power-dependent pumps, or the nuclear fission reaction being constructed to be “self-dampening”, where the reaction slows down as temperature rises.

Many SMR designs claim to be incapable of meltdown [3], with the reduced size and lower thermal power compared to traditional nuclear reactors reducing the risk of overheating and meltdown. However, there are concerns that these SMR safety measures have yet to be tested thoroughly, and that the push for SMRs could lead manufacturers into weighing safety against cost-effectiveness [4].

How Does an SMR get Approved?

Canada has a three‑step federal process that is applied to every potential SMR and managed by the Canadian Nuclear Safety Commission (CNSC). Proponents must secure a Licence to Prepare Site, a Licence to Construct, and finally a Licence to Operate. All licenses are required before any fuel can be loaded or electricity can be generated. The current SMR development in Ontario is at stage 2, having just received a license to construct, but must return to the Commission for an operating licence once the unit is built.

For the territories, there are additional territorial assessment organizations, like the Yukon Environmental and Socio-economic Assessment Board (YESAB), that would perform similar reviews for any potential SMR, with a focus on regional land use and socio-economic impacts.

Contributors

Author: Trent Gardiner
Reviewed By: Simon Kerkhof, MacKenzie Smith, Bastien Letowski, Andrew MacMillan, and Maureen Charlie

Sources

[1] World Nuclear Association, “Heat Values of Various Fuels.” Accessed: May 14, 2025. [Online]. Available: https://world-nuclear.org/information-library/facts-and-figures/heat-values-of-various-fuels?utm_source=chatgpt.com
[2] Forest Research, “Typical calorific values of fuels.” Accessed: May 14, 2025. [Online]. Available: https://www.forestresearch.gov.uk/tools-and-resources/fthr/biomass-energy-resources/reference-biomass/facts-figures/typical-calorific-values-of-fuels/
[3] Natural Resources Canada, “Small Modular Reactors (SMRs) for Mining.” Accessed: May 14, 2025. [Online]. Available: https://natural-resources.canada.ca/energy-sources/nuclear-energy-uranium/small-modular-reactors-smrs-mining
[4] Calian Nuclear, “Feasibility Study of Small Modular Reactors in the Yukon,” Aug. 2023. Accessed: Sep. 07, 2025. [Online]. Available: https://yukon.ca/sites/default/files/emr/emr-feasibility-study-small-modular-reactors-yukon.pdf
[5] E. Lyman, “Small Isn’t Always Beautiful Safety, Security, and Cost Concerns about Small Modular Reactors,” 2013. Available: https://www.ucs.org/sites/default/files/2019-10/small-isnt-always-beautiful.pdf