Mike Holland was among Canada’s leading evangelists for small modular nuclear reactors. During his tenure as New Brunswick’s energy minister, from 2018 to when he stepped down on
His enthusiasm and risk tolerance proved a boon for ARC and Moltex, two tiny startups that have neither licensed nor constructed a commercial reactor. Under Mr. Holland’s leadership, New Brunswick became an incubator and helped the companies attract government funds to continue their work. According to documents released by New Brunswick’s energy ministry through the province’s freedom of information legislation to researcher Susan O’Donnell, and provided to The Globe and Mail, in 2017 NB Power reviewed dozens of SMRs it read about in nuclear industry publications. It came up with a short list of five, which it later narrowed to ARC and Moltex, and enticed both companies to set up headquarters in Saint John.
“These two technologies have different market applications and there is no downside to letting both of them work through the process,” the letter stated. Edwin Lyman, a physicist at the Union of Concerned Scientists, has warned policy makers about the pitfalls of betting on “advanced” reactor designs, which he has studied over many years. “Developing new designs that are clearly superior to light water reactors overall is a formidable challenge, as improvements in one respect can create or exacerbate problems in another,” he wrote in a 2021 report.
In addition to confronting such technical challenges, New Brunswick’s strategy also presupposes that reprocessing of spent fuel will be permitted and affordable. But a report published last year by the Nuclear Waste Management Organization, the industry-controlled organization tasked with disposing of Canada’s reactor waste, was skeptical on both counts.
Last year, ARC and Moltex each estimated that developing their reactors would cost around $500-million per company. NB Power is Canada’s most heavily indebted utility, and its budgets must be approved by the province’s Energy and Utilities Board. It has limited ability to pay for crucial early steps such as studies necessary to establish what the environmental consequences of the SMRs might be.