The COP Collection
New ways of working enabling decarbonization in Ontario
The technology is undoubtedly cutting-edge. Yet it is new ways of working and an approach that is rooted in local communities, that are unlocking the energy transition – at pace - in Canada. What will it really take to deliver on decarbonization – and keep the lights on?
OPG and GE Vernova are collaborating on a major 15-year refurbishment programme of hydro power stations in Ontario
“For our Niagara hydro refurbishment project, we’re co-locating our team with GE Vernova so we can foster a One Team culture. The arrangement is designed to help to build trust while facilitating collaboration and innovative thinking.”
Ken Hartwick
CEO and President, Ontario Power Generation (OPG)
Solving to meet Canada's goals and customers' needs
Meeting the twin challenge of decarbonization and growing demand
Jurisdictions around the world are looking for more sustainable energy solutions to meet the ever-growing demand for power stemming from economic growth, electrification, and the need to address climate change. Developing large sources of reliable electricity is also critical to energy security and investment attraction.
Ontario’s demand for electricity could more than
Double by 2050¹
As part of its decarbonization strategy, Canada has an ambitious goal of having a net zero grid by 2035. In 2022, the electricity sector had the smallest share of emissions of seven sectors and emissions from the sector have reduced 50% from 1990 to 2022². The country’s most populous province, Ontario, already has one of the cleanest grids in North America and the world³. Its grid benefits from being comprised of a range of diverse resources, including hydroelectric, nuclear, natural gas, solar and wind. The Government of Ontario is taking action to build a cleaner electricity system to meet the demands of the future⁴. Two of the key actions that the Government is taking are the refurbishment of existing hydroelectricity generation and moving ahead with a total of four small modular reactors (SMR) at the Darlington nuclear site.
OPG contracted with GE Vernova to build four of its BWRX-300 small modular reactors at the Darlington New Nuclear Project site
Electricity generation, Canada, 2022
Source: International Energy Agency. Licence: CC BY 4.0
“The world is watching Ontario as we lead the way with our first-class nuclear capabilities, including building the first small modular reactor in the G7 at Darlington. Our province's high-performing nuclear fleet and hydroelectric facilities underpin Ontario's clean energy advantage, providing affordable power as energy demand rises. While Ontario has one of the cleanest energy grids on earth, we are committed to building clean, reliable and affordable energy across our province without imposing high taxes on working families.”
The Hon. Stephen Lecce, Ontario’s Minister of Energy and Electrification
The tools that are creating a win‑win‑win for all players
Meeting the practical realities head-on – while not losing sight of affordability and reliability
Despite Canada's head start – more than 80% of the country's electricity is non-emitting - achieving a net zero grid by 2035 is an ambitious target. There are large regional variations in electricity mix and long distances for power to travel to load centers. In addition to these challenges, those working on the energy transition come face-to-face daily with the practical realities. The parties working in this space need to find a path through the complexity, from permitting to the regulatory landscape, to the speed of maturation of new technologies. At the same time, affordability and reliability need to be maintained. It takes courage from all parties to navigate this landscape, innovate and implement new technologies, and put in place the new ways of working which enable delivery.
“It’s a One Team approach. That’s what makes the difference.”
Heather Chalmers,
President and CEO, Canada, GE Vernova
Working together means sharing a coffee and sandwich for lunch
GE Vernova has a long history of working with OPG. In fact, it is a relationship that is over a century old, with GE manufacturing the original generating units still in operation at some of OPG’s sites in Niagara. To meet the ambitious targets and make complex projects happen with the urgency that is needed, GE Vernova and OPG have adopted a new way of working for the massive refurbishment of Ontario’s hydro power generation that is now underway and is designed to last for the next 15 years. It’s a shared risk-reward model which means that everyone is on the same team – there’s no us vs them. This is crucial to create the trust and capacity for problem-solving that’s needed and is facilitated on a day-to-day level by the co-location of teams.
Listen here to Ken Hartwick, President and CEO of OPG, talk about the collaborative approach that is supporting the energy transition and bringing economic and community benefits to Ontario.
Creating long-lasting value for communities
Establishing Ontario as a clean-tech powerhouse
Ontario is set to benefit from its first-mover advantage on SMRs. Having 70-80% of the trades resources for the Darlington SMRs coming from Ontario’s supply chain will put the province in a unique position. There is a supply-demand imbalance for key technologies in the energy transition. By moving first, Ontario is locking in the supply chain and, as other SMR projects are rolled out globally, Ontario and its communities are expected to enjoy an ongoing and growing benefit through the expansion of businesses in the supply chain and from secure, high-skilled jobs. GE Vernova’s nuclear business, GE Hitachi Nuclear Energy, is forming a group of qualified supply chain companies to advance the global deployment of the BWRX-300 small modular reactor. The first member of this group is BWXT Canada, based in Ontario. They have been contracted for engineering of the BWRX-300 reactor pressure vessel. In addition to being a supplier for the deployment of the SMRs at Darlington, orders to support the deployment of SMRs in Poland could be worth up to $1 billion CAD. John MacQuarrie, President of BWXT Commercial Operations, said: “The anticipated global demand for nuclear power was a significant factor in our recent decision to expand our Cambridge, Ontario manufacturing facility, where we design and manufacture large and heavy nuclear components.
The BWXT facility in Cambridge, Ontario
70-80%
of the trades resources for SMRs will come from Ontario's supply chain
Our plans to increase the site's manufacturing capacity by 50 percent for large components and to invest in advanced manufacturing equipment over the next few years are expected to further position our business to help deliver the BWRX-300 and other reactor technologies for our customers around the world. The estimated CAD 80 million (USD 56 million) investment in our manufacturing plant in Cambridge is expected to increase the site’s manufacturing capacity by 50 percent for large components. It will also create more than 200 long-term jobs for skilled workers, engineers and support staff in the area.”
In conclusion
As countries work to decarbonize and electrify, Canada and Ontario are showing how to move at speed towards these goals:
using innovative, cost-effective technologies and processes
adopting new collaborative ways of working
ensuring that benefits are distributed across communities, including through creating high-skilled jobs
creating strong local supply chains, which can then serve the energy transition globally.
¹ https://www.ontario.ca/page/powering-ontarios-growth ² https://www.canada.ca/en/environment-climate-change/services/environmental-indicators/greenhouse-gas-emissions.html ³ https://www.ontario.ca/page/powering-ontarios-growth ⁴ https://www.ontario.ca/page/powering-ontarios-growth#section-1 ⁵ This article contains forward-looking statements, which provide current expectations based on certain assumptions. Except as required by law, we disclaim any obligation to update these statements.
