NUCLEAR ENERGY COULD HELP COST-EFFECTIVELY DECARBONIZE CANADA’S HEAVY INDUSTRY Along with the rest of the world, Canada is under immense pressure to build its path to net-zero by 2050. But unlike many parts of the world, Canada faces unique challenges and opportunities. Canada’s economy is built on the advantage of extensive, rich natural resources – but this is a double-edged sword when it comes to climate change. While our energy, mining and heavy industry sectors form the backbone of our economy, they represent a large portion of Canada’s greenhouse gas emissions (GHGs). Currently, the oil sands, chemical manufacturing and mining collectively contribute more than 30 per cent of Canada’s GHGs. We also know that these sectors face enormous challenges in reducing their carbon footprint. It is not realistic to abandon these industries. Doing so would cause significant socio-economic destruction. Instead, Canada’s path to net-zero must include decarbonizing heavy industry in an environmentally and economically advantageous way. 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. As an energy-dense, carbon-free, and reliable energy source available around the clock, nuclear can play an integral role in fighting climate change -– including 56 SASKATCHEWAN energy REPORT 2022
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. through SMRs (small modular reactors). SMRs use fission to generate reliable, carbon-free electricity and heat with a small land footprint. These innovative reactors are scalable and can be built economically in factory settings, allowing for easy transportation to remote or challenging locations. Working in tandem with renewables, SMRs are uniquely positioned to provide clean electricity, produce carbon-free hydrogen, decarbonize our extraction and heavy industries, and provide heat and power to remote and First Nations communities. Research conducted by Enviro– Economics and Navius looked at the economic and climate implications of using SMRs in Canada’s high-emitting heavy industry1, and explored different cost and technical assumptions for deploying SMRs. The research highlights that SMRs in Canada could reduce GHGs in the heavy industrial sector by 18 per cent by 2050 while contributing up to $5 billion to gross domestic product (GDP) annually in the same timeframe. With deployments set to begin as early as 2026, SMRs could be widespread by 2035 to meet the rapidly growing demand for emission reductions in heavy industry and resource extraction sectors. Beyond the obvious environmental benefits, investing in clean nuclear technology offers huge economic
opportunities, with the global SMR market projected to reach $300 billion per year 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 highgrade 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 Canada’s electricity production. But we have only scratched the surface of nuclear’s potential to help drive a low-carbon green economy. Data demonstrates that SMRs could deliver low-cost emission reductions while driving down the overall cost of getting to net zero as a nation. With the right investments today, Canada can use its world-leading nuclear expertise to provide the vast amounts of clean heat and electricity required to make this country’s energy transition clean and economically advantageous. 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. 1
Emission and Economic Implications for Canada of Using Small Modular Reactors (SMRs) in Heavy Industry. March 2021. EnviroEconomics and Navius Research.
