A federal regulator is cautioning that the true costs of small modular nuclear reactors are still unknown despite hundreds of millions of dollars in taxpayer spending on the technology. A recent report found that while the reactors are promoted as cheaper to build than traditional nuclear plants, their actual output costs could run far higher.According to Blacklock's Reporter, the Canada Energy Regulator said small modular reactors are still experimental and “costs remain uncertain.” The agency noted that capital spending per unit of electricity may be as much as 70% higher than large-scale reactors, though costs could fall if the technology matures.No country has yet produced a commercially viable modular reactor, which is typically envisioned at the size of a shipping container. Canada’s nuclear regulator in April licensed a factory in Darlington, Ont., with plans to produce the first commercial SMR facility in North America by 2030.The regulator also flagged challenges beyond cost. SMRs create relatively higher amounts of nuclear waste per unit of energy and require enriched uranium, which Canada does not currently produce and would have to import.Federal subsidies for the sector already total $215 million, according to the Department of Natural Resources, including $27.2 million for a Westinghouse Electric Canada prototype. Westinghouse is owned by Brookfield Asset Management, where Prime Minister Mark Carney previously served as chair and still holds shares, according to ethics filings.The taxpayer-backed Canada Infrastructure Bank has approved a further $970 million in loans for SMR projects. Additional support includes tax credits for developers, though the overall cost remains undisclosed.Critics question whether the investment can be justified. Dr. Susan O’Donnell, a former National Research Council scientist, told MPs that federal spending on the technology is misplaced. “In the past two years the government has given almost $100 million to three private nuclear companies for research,” she said, warning that experts outside the industry “have identified many potential problems.”She added that building a dedicated factory for micro modular reactors “cannot be justified” since the total energy needed to replace diesel in all of Canada’s remote communities is too small to make such a facility economically viable.
