Provincial minister of energy and electrification Stephen Lecce was in Cambridge this afternoon to announce two new government contracts with BWX Technologies Canada valued at more than $1 billion.
The contracts, which combined are expected to generate more than 350 local jobs, will see the company manufacture steam generators for the refurbishment of the Pickering Nuclear Generating Station and the reactor pressure vessel for the first small modular reactor in the G7 at Darlington.
BWXT will manufacture 48 new steam generators to support the refurbishment at Pickering. The generators convert heat from the reactor into steam that drive turbines to generate electricity.
The contract, valued at $960 million over seven years, will create more than 250 highly skilled trades jobs, in addition to engineers and supporting staff.
BWXT will also manufacture the reactor pressure vessel for the Darlington New Nuclear Project.
The province says it will be part of the first on-grid small modular reactor (SMR) in the G7 and will support an additional 100 new jobs.
BWXT is the first manufacturer in North America to begin this type of work for an SMR technology. The province says it furthers Ontario’s position as a global leader in nuclear innovation and production.
SMRs, which can be deployed anywhere, create small grids where power generation needs are small and there are limitations on distribution.
"Ontario needs steady leadership to build out a clean and affordable energy future, by leveraging our province’s nuclear advantage," Lecce told a crowd of BWXT workers and local dignitaries gathered for the announcement.
With US President Donald Trump's 25 per cent tariff threat looming, Lecce acknowledged challenges ahead as he touted the need for Ontario to create a robust energy sector to meet "explosive demand on the grid."
"As we expand and refurbish our nuclear fleet, we are announcing a major contract that creates 350 jobs with materials and components proudly stamped with ‘Made-in-Ontario,’ he said.
Asked if retaliatory tariffs on provincial electricity exports to the US are still being considered, Lecce said it's "certainly a viable path" but would't disclose how the province could implement such a measure.
He said the message that tariffs would end up hurting consumers on both sides of the border is beginning to resonate with his US counterparts as the province pushes the idea of creating an energy alliance with the US.
"Premier Ford and Minister Lecce are leading the largest expansion of nuclear energy on the continent to help meet soaring energy demand, creating new jobs in Cambridge and across the province," said Cambridge MPP Brian Riddell.
"I couldn’t be more pleased that 350 workers in Cambridge will help manufacture the key components we need to power our growing province and cement Ontario’s position as a global leader in nuclear innovation."
President, BWXT Commercial Operations John MacQuarrie said the company has been taking strategic steps to meet the current and anticipated demand for nuclear power.
"These significant projects leverage BWXT’s extensive capabilities and specialized expertise in the delivery of large components for the domestic and global nuclear industry," he said.
Kitchener South-Hespeler MPP Jess Dixon said the advancement of SMRs is something she's incredibly proud of.
"It's a success story we do not give ourselves enough credit for," she said.
Last November, Lecce went to Poland and Estonia to discuss SMRs and support European allies looking to build their energy independence in the face of Russian aggression and to help reduce their reliance on coal power.
The mission resulted in signing agreements with major European energy companies, Orlen Synthos Green Energy and Fermi Energia, that could leverage Ontario based suppliers like BWXT, as they develop and deploy SMRs in their jurisdictions, he said.
Today's announcement comes closely on the heels of an $80 million investment the company announced last spring to expand BWXT's Cambridge facility and add 200 jobs.
That project, already underway and expected to be completed next year, includes a $50-million, 55,000-square-foot expansion of the company's Cambridge manufacturing facility and $30 million in advanced manufacturing equipment.
The facility is already one of the largest commercial manufacturing facilities in North America, currently employing 1,200 people.