Delegation proposes $3.6B small nuclear reactor to be sited in M.D. of Bonnyville

With a local long-term potential of hundreds of permanent workers, and a massive tax base, Nucleon Energy is looking at bringing nuclear energy as an option to Alberta’s stressed power grid.

Is the future nuclear?

One company’s presentation to the M.D. of Bonnyville proposes the Lakeland to be the home of one to two small modular nuclear reactors (SMR) to be a provincial energy source. 

Last Tuesday’s council meeting saw a delegation from Will Bridge and Dustin Wilkes of Nucleon Energy to discuss potential interest in finding a site, or partnering together, on a SMR project within the M.D. of Bonnyville. 

They’ve spent the last two years working with advisors on ways to bring nuclear energy to Alberta, amid the unique regulatory frameworks, and the growing need for long-term, reliable energy sources. 

Canvassing the province for available areas to be the home of these reactors, the M.D. of Bonnyville is seen as one of only a few desirable spots with it’s proximity to a major power distribution line. 

Nucleon Energy believes that for SMRs to be developed in Alberta, they need a made-in-Alberta solution to that problem, with the reliance on traditional fossil fuel emitting sources to be lessened in the coming decades. 

The nuclear paradigm is changing, says Bridge, as the capital costs years ago of large gigawatt reactors have dropped with small modular ones. 

“I know that the transmission grid is very congested, and there are only a small number of places where SMRs can be plugged into the grid. Bonnyville’s county is one of them,” said Bridge. 

Won’t be enforced

“The reason we’re here today is we would like council’s support to work with your administration to discuss the siting of a SMR in the county, where it could go, where you don’t want it to go,” continued Bridge. 

“Is there support from the community? Is there no support for the community? It’s such an expensive endeavour, we’re not interested in pushing an SMR project on a community that doesn’t want it. We’re keen to engage with you, the administration, the local First Nations, to find out the level of support that exists in the area before we go too far down any road.” 

Every winter, the stresses and demands for energy bring up concerns about brownouts, particularly in the coldest of temperatures.

Small modular reactors have a power capacity of up to 300 megawatts per unit. Nucleon is proposing placing two in the area.

Unlike the large-scale reactors that had been built back decades ago, the type of SMR that Nucleon is looking at would require just 20 acres plus a 500-meter exclusion zone. 

In comparison to other forms of energy, it requires much less space than other forms of energy that are being sought after currently, like wind or solar.

As of 2022, 80 commercials SMRs have been built, according to the International Atomic Energy Agency.

Nucleon estimates that if one were to be built in Canada, it would be the ninth, as Ontario is building two to four, and Sask Power is getting more involved.

Some of speculated though that the estimates aren’t quite as rosy as believed.

‘Way of the future’

But what has the attention of the municipality is the massive economic spinoff created by such a project. 

The tax revenues from the site could be huge, plus estimates of full-time employment ranging from 300-600 people during operation, and up to 1000 people during construction.

The capital cost of two SMR units quoted during the presentation was $3.6 billion, parlaying into some figure of $40 million in tax base, cited by Nucleon Energy.

It’s what has Reeve Barry Kalinski and council’s attention, as well as the small geographic footprint. A follow-up meeting is planned with Nucleon and M.D. administration to discuss further details and safety concerns.

“I’d like to have them come back with more people and tell us what it’s all about,” Kalinski told Lakeland Connect about having more in depth meetings.

“It’s the way of the future in my mind. But the people better bring some good information because when residents hear nuclear, they think Chernobyl.” 

$85 dollar power?

The process would not be very fast if all parties were on board.

Four years are quoted to select a site, complete impact statements, and concept designs, amongst various other items. Then they could move to phase two, to acquire more funding and do more studies.

After seven years, then theoretically, a project construction of this type could begin, for an operating life of 60 years.

“We expect the cost of it to be in and around $6 million a megawatt, which over 60 years, is about $85 power,” said Bridge. 

“The power price in Alberta since the market opened in the ‘90s has averaged $65. This is $20 more than that, but it’s also about $40 less than the prices we’ve seen over the last four or five years. And so all of that, to describe it as an affordable power source that doesn’t need subsidy.”

Residents are able to view the powerpoint presentation of Nucleon Energy’s here on the M.D. website, and watch the delegation on the M.D.’s YouTube page.

“It’s not a small undertaking, but we’ve well underway to do that. We’re also looking at other potential sites in the Northwest portion of Alberta as well.”