Nuclear energy could help cost-effectively decarbonize Canada’s heavy industry Along with the rest of the world, Canada is under immense pres-
vide heat and power to remote and First Nations communities.
sure to build its path to net-zero by 2050. But unlike many parts
Research conducted by EnviroEconomics and Navius looked
of the world, Canada faces unique challenges and opportunities.
at the economic and climate implications of using SMRs in Can-
Canada’s economy is built on the advantage of extensive, rich
ada’s high-emitting heavy industry, and explored different cost
natural resources – but this is a double-edged sword when it
and technical assumptions for deploying SMRs. The research
comes to climate change. While our energy, mining, and heavy
highlights that SMRs in Canada could reduce GHGs in the heavy
industry sectors form the backbone of our economy, they rep-
industrial sector by 18 per cent by 2050 while contributing up to
resent a large portion of Canada’s greenhouse gas emissions
$5 billion to gross domestic product (GDP) annually in the same
(GHGs). Currently, the oil sands, chemical manufacturing, and
timeframe.
mining collectively contribute more than 30 per cent of Canada’s
With deployments set to begin as early as 2026, SMRs could
GHGs. We also know that these sectors face enormous challeng-
be widespread by 2035 to meet the rapidly growing demand for
es in reducing their carbon footprint.
emission reductions in heavy industry and resource extraction
It’s not realistic to abandon these industries. Doing so would
sectors.
cause significant socio-economic destruction. Instead, Canada’s
Beyond the obvious environmental benefits, investing in clean
path to net-zero must include decarbonizing heavy industry in
nuclear technology offers huge economic opportunities, with
an environmentally and economically advantageous way.
the global SMR market projected to reach $300 billion per year
There is a path to a more sustainable green economy for Canada’s heavy industry sector − a path that includes clean nuclear energy working in partnership with renewables. World-renowned scientists, environmentalists, and climate change experts have concluded time and time again that there is no path to net zero without nuclear in the mix.
by 2040 according to the World Economic Forum. With 65 years of industry experience, an impeccable safety track record, and the world’s largest natural reserve of high-grade uranium, Canada is well-positioned as a global nuclear leader. Nuclear is one of the largest producers of clean electricity around the world and in Canada, accounting for 15 per cent of
As an energy-dense, carbon-free, and reliable energy source
Canada’s electricity production. But we have only scratched the
available around the clock, nuclear can play an integral role in
surface of nuclear’s potential to help drive a low-carbon green
fighting climate change − including through SMRs (small modu-
economy. Data demonstrates that SMRs could deliver low-cost
lar reactors).
emission reductions while driving down the overall cost of get-
SMRs use fission to generate reliable, carbon-free electricity
ting to net zero as a nation.
and heat with a small land footprint. These innovative reactors
With the right investments today, Canada can use its world-
are scalable and can be built economically in factory settings,
leading nuclear expertise to provide the vast amounts of clean
allowing for easy transportation to remote or challenging loca-
heat and electricity required to make this country’s energy tran-
tions.
sition clean and economically advantageous.
Working in tandem with renewables, SMRs are uniquely positioned to provide clean electricity, produce carbon-free hydrogen, decarbonize our extraction and heavy industries, and pro-
SMRs have the potential to be a game changer in helping to fight climate change in Canada, but the clock is ticking. The time to take decisive action is now. v Manitoba Energy Review 2022
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