First Nations now equity partners in $20 billion new nuclear project in Clarington

Williams Treaties First Nations are all in on the $20 billion new nuclear build at Darlington nuclear plant after a historic $700 million investment in the Ontario Power Generation project was announced Tuesday morning.

The First Nations east of Toronto are set to become part owners of the small modular reactor build after reaching a deal for a commercial partnership with the federal and provincial governments.

Ottawa and Ontario are providing loan guarantees of $700 million to the seven Williams Treaties First Nations that will turn into equity.

Ontario Energy Minister Stephen Lecce says this is the first deal of its kind in Canada, while Chiefs of the Williams Treaties First Nations are calling the deal – the largest collective First Nations investment in nuclear generation in Canada – an “historic step forward.”

The investment will support the development of Canada’s first grid-scale Small Modular Reactor (SMR) project – a first-of-its-kind project amongst G7 countries – at a critical time for Ontario and Canada’s growing energy needs. It also highlights the growing role Indigenous communities are playing in the financing, development and long-term success of major infrastructure projects across Canada.

Through a jointly held investment limited partnership, the Michi Saagiig and Chippewa Anishinaabeg Nations of the Williams Treaties are establishing a pathway to long-term project ownership and creating a “strong foundation” for further Indigenous economic participation in major infrastructure projects.

The transaction is also supported by a loan guarantee from the Canadian Indigenous Loan Guarantee Corporation, with the Province of Ontario serving as a 50 per cent participating guarantor through Building Ontario Fund’s Indigenous Opportunities Financing program.

The investment is structured to ultimately create a long-term ownership position in the project.

“Today, our Nations are taking an historic step forward. Through this investment, we are not only creating opportunities for our own communities – we are helping advance a project that will play an important role in meeting Ontario and Canada’s growing energy needs,” the chiefs said in a statement. “This investment demonstrates what is possible when First Nations are able to participate meaningfully in projects taking place within their territories, not only as rights holders, but as investors, partners, and participants in the long-term success of the project.”

For too long, the statement continued, major infrastructure projects were built across their territories with “little or no involvement” from Indigenous people. “Today, we are helping shape that future. This investment reflects a future where projects in our territories are developed with us leading and at the table – not carried out around us on our shared lands and waters. This is ownership, capital, and long-term responsibility at scale. It is an economic decision made on our own terms that reflects the role First Nations are increasingly playing in projects that are critical to Ontario and Canada’s future.”

The deal also establishes a foundation for future Indigenous participation in major infrastructure opportunities while not diminishing treaty rights or obligations for the federal and provincial governments to consult, the chiefs added.

The investment is being made through WTFN Investment Holdings LP, a jointly held limited partnership established by First Nations of Mississaugas of Scugog Island, Alderville, Curve Lake, Hiawatha, Beausoleil, Chippewas of Georgina and Chippewas of Rama.

Each First Nation participates through its own nation-owned and controlled economic development limited partnership enabling them to participate collectively in major investment opportunities while maintaining their own governance, ownership, and decision-making structures.

By working together through a shared investment framework, the Indigenous partners said in a news release, they are able to participate “at a scale that would be difficult to achieve individually.” while preserving local ownership and governance.

Williams Treat First Nations have been in “good-faith discussions” with Ontario Power Generation since last fall about economic opportunities that will arise from the Darlington new nuclear project.

The announcement was made at OPG Darlington Energy Complex in Courtice, with chiefs from each of the First Nations joined by federal Finance Minister Francois-Philippe Champagne, his provincial counterpart Peter Bethlenfalvy and Ontario Energy Minister Stephen Lecce.

The federal and provincial governments announced a combined $3 billion commitment to the project last year, with the investments supporting construction and operation of the first-of-its-kind small modular reactor project through “innovative” financial arrangements, encouraging private sector and Indigenous investment in the project.

The chiefs were clear at the time of the announcement in the fall that work on the project not be accelerated without “comprehensive consultation.”

“Our nations are committed to advancing sustainable energy solutions, but only in ways that honour our rights, respect our lands, and recognize our role as partners.”

Prime Minister Mark Carney and Mississaugas of Scugog Island First Nation Chief Kelly LaRocca

The Mississaugas of Scugog Island First Nation have been active partners with OPG  at the Darlington and Pickering nuclear sites through their Voyageur Services economic arm, which was founded less than five years ago and has already earned several major contracts including site preparation work at Darlington for the small modular reactor project, a water treatment project – also at Darlington – and dredging work at the Pickering nuclear plant.

As well, the Region of Durham and the First Nation have signed a new bilateral agreement to cooperate on issues such as economic development, ecological protection and consultation work.

Treaties hold aboriginal and treaty rights at the Darlington site.

There is expected to be additional work after Velan. Inc. builds a promised a new manufacturing facility in Durham Region to help meet rising global demand for SMR technologies, with each new reactor bringing up to $70 million worth of new investment into Ontario for world-class components.

SMR builder GE Vernova Hitachi and Velan have entered into a partnership to “explore opportunities” to deploy Reactor Integral Isolation Valves and Containment Isolation Valves – critical pieces of safety equipment for BWRX-300 small modular reactor projects in Europe.

The first SMR unit at Darlington will supply enough clean electricity to power approximately 300,000 homes. When completed, the four units will generate enough electricity to power 1.2 million homes.

The first SMR will cost $7.7 billion including common infrastructure, and the total budget for all four units is expected to be $20.9 billion.

All four units are expected to create 18,000 annual jobs during construction and sustain 2,500 annual jobs during operation.

The SMR nuclear project at Darlington