Ontario announces $2.1B for Pickering nuclear refurbishment

Ontario has announced plans to refurbish part of the Pickering Nuclear Generating Station, one of the world's largest nuclear stations. 

At a press conference on Thursday, Stephen Lecce, Minister of Energy and Electrification, said the government has approved Ontario Power Generation’s (OPG) plan to proceed with a $2.1 billion contract with CanAtom to support early work, which is expected to create 2,400 jobs.

“The Pickering Nuclear Generating Station has powered cities and towns across Ontario with affordable, reliable and zero-emissions electricity for more than 50 years, supporting thousands of jobs in the process,” said Stephen Lecce, Minister of Energy and Electrification in a statement. “This refurbishment would protect those good paying jobs and provide the affordable and reliable power our province will need for decades to come.”

The project promises to deliver 30 more years of affordable, emissions-free electricity, Lecce added. The proposed refurbishment still requires approval from the Canadian Nuclear Safety Commission. 

The announcement comes a week after the province said it wants to build a new large-scale nuclear power plant near Port Hope. That project would generate up to 10,000 megawatts of electricity, five times the output of the Pickering project.

Nuclear remains a contentious battleground for the environmental movement with critics deriding its cost, construction time-scale and waste problem.

“Stephen Lecce’s high-cost plan to re-build the Pickering Nuclear Station will cause our electricity rates to rise and will lead to a 500 per cent increase in dirty gas power as we wait for Pickering’s 40-year old reactors to be re-built,” said Jack Gibbons, chair of the Ontario Clean Air Alliance. “Minister Lecce’s plan is good for big energy utilities like Ontario Power Generation and Enbridge Gas, but it will take more money out of the pockets of Ontario’s hard-working families.”

Ontario has cleaner, safer, and more affordable options to meet its energy needs, Gibbons argued. By prioritizing investments in energy efficiency, wind and solar power, and energy storage, the province could close the Pickering Nuclear Station in 2026 while also reducing electricity costs, he said.

A new report from the Ontario Clean Air Alliance predicts electricity generated by a new nuclear reactor would be significantly more expensive than renewable sources, costing 3.6 times more than onshore wind, three times more than solar, and 1.7 times more than offshore wind. The report also highlights Ontario's abundant renewable energy potential, noting that Great Lakes wind power alone could provide more than enough electricity to meet the province’s energy needs.

Lecce says nuclear expansion is needed to address Ontario's rapidly growing energy needs, driven by economic growth and electrification, with the province projected to face a 75 per cent surge in electricity demand by 2050.

Lecce said the full refurbishment project is projected to contribute $19.4 billion to Ontario’s economy over the plant’s 30-year lifespan and create 11,000 jobs annually over the course of the project’s 11 years, with completion anticipated by the mid-2030s.

The Pickering station generates approximately 14 per cent of electricity in Ontario, where more than half the total electricity is nuclear-generated.

The province says that the Ontario Power Generation’s (OPG) has committed to investing an additional $100 million with Indigenous companies over the course of the refurbishment project.

Lecce said 90 per cent refurbishment investment will be sourced from Ontario-made parts and materials, ensuring the majority of the spending stays within the province to support local industries, communities, create jobs and stimulate economic growth.

The contract announced Thursday involves early engineering, procurement of long-lead components, and construction planning for the retube, feeder, and boiler replacement of units 5-8.

Beyond powering homes and businesses, the Pickering refurbishment will also support the production of Cobalt-60 isotopes, vital for sterilizing medical equipment and aiding in cancer treatments, said Melody Greaves Executive Director & VP, Government Relations, Canadian Nuclear Isotope Council (CNIC).

“Today’s announcement from the Ontario Government and Ontario Power Generation to continue with the Pickering B refurbishment marks a major milestone in solidifying the province's position at the forefront of isotope production and strengthening our domestic supply of life-saving medical isotopes,” Greaves said.