Premier wants Alberta energy minister to incentivize development of small modular reactors

Premier Danielle Smith has tasked Energy and Minerals Minister Brian Jean with encouraging Alberta oilsands operators to explore small modular reactor technology to reduce greenhouse gas emissions from the sector.

The premier's mandate letter to Jean, released on Monday, mentions the small modular reactors (SMRs) three times.

Smith wants him to develop and improve regulations to incentivize investments in SMRs, among other industries, and work with other provinces and the federal government to "further explore and promote small and micro modular reactor technologies and pave the way for their use in oilsands operations and petrochemical production," the letter says.

Jean said in an interview Tuesday he believes SMRs are part of the solution to extracting oil and generating electricity with fewer emissions in the province.

However, he says Alberta will take its time.

"Let's not rush on something so important as nuclear," Jean said.

It's a proposal he acknowledges is divisive, and needs to be done safely and economically.

Next steps include ensuring power and oilsands companies believe there are business cases for using the technology, he said.

Jean said his office will hire a staff member with expertise in SMR technology. Discussions with his federal counterparts about the future of SMRs in Alberta have been encouraging, Jean said.

Smith has also asked Jean to work with Environment and Protected Areas Minister Rebecca Schulz to develop a regulatory framework for SMR technology in the province.

Oilsands companies exploring nuclear options

SMRs are a new generation of nuclear reactors that would produce power by fission — splitting uranium atoms — but on a smaller scale, producing 300 megawatts or less.

They are high-temperature heat-generating machines, says Canadian Nuclear Association president John Gorman. Unlike conventional power plants, some of the smallest ("micro") SMRs can be assembled from manufactured components and shipped to a site on a couple of pallets, he said.

However, they still cost billions of dollars.

Gorman says there is tremendous potential for oilsands companies to use them to generate steam and potentially extract oil without generating greenhouse gasses.

In an emailed statement, Pathways Alliance president Kendall Dilling said SMRs could be a "safe, versatile and scalable" option to reduce emissions — if they are commercially and economically viable and can overcome regulatory hurdles.

The alliance is a group of Canada's six largest oilsands producers working to reach net-zero in oil extraction operations by 2050. The alliance has a working group of experts from its member companies studying the viability of using SMRs.

Ontario and New Brunswick have plans to build what could be Canada's first SMRs. Saskatchewan will decide by 2029 whether to build an SMR.

These provinces have also inked an agreement with Alberta to work together developing the technology.

The Canadian Nuclear Safety Commission has yet to give any SMRs final approval.

Gorman said Alberta is the province that could benefit most from adopting SMRs. While under pressure to reduce emissions, provinces simultaneously need to increase their electrical generation to meet rising demand from products such as electric vehicles.

"The opportunities for small modular reactors in Alberta are tremendous," Gorman said.

Most of Alberta's electricity is generated from natural gas.

Gorman says the province already has a workforce with the right skills and experience to pivot to nuclear power.

He said the biggest challenges will be meeting federal regulatory requirements and the federal Impact Assessment Act, which requires an examination of the environmental, economic health and social implications, and effects on Indigenous people for any major infrastructure project.

Prof says challenges decay away any benefits

UBC public policy professor M.V. Ramana is more skeptical about the promise of SMRs.

Ramana, who is professor and chair in disarmament, global and human security, said SMR projects attempted in Russia and China have been plagued with delays and cost overruns.

Lower-output SMRs are prohibitively expensive and not a cost-effective way to produce smaller amounts of power, he said.

Meeting stringent safety and maintenance requirements to run nuclear operations, as well as dealing with the waste, are also risky and expensive, he said.

He says the benefits of SMRs in the oilsands are "modest," because eliminating the emissions from production doesn't stop downstream carbon emissions from burning oil and gas. A viable SMR would need to run for 40 to 60 years to pay for itself, and it's unclear if oilsands mines will operate that far into the future, he said.

Ramana says it's a PR exercise that creates the impression a government is tackling climate change, while building a functional SMR is likely at least a decade down the road.

"It sounds like that they want to make the province seem cleaner," Ramana said of the government. "It's a bit of a greenwashing exercise."