Ottawa and Ontario are providing loan guarantees of $715 million to the seven Williams Treaties First Nations east of Toronto that will eventually turn into equity for one of the four small modular reactors (SMRs) being built at the Darlington New Nuclear Project in Bowmanville, Ont., by Ontario Power Generation.

Finance Minister François-Philippe Champagne called the $700 million guarantee “the largest Indigenous loan guarantee ever issued” under the federal program, giving Williams Treaties First Nations a “significant minority interest” in the project. 

It surpasses the Canada Indigenous Loan Guarantee (CILGC)’s first-ever loan, a $400 million guarantee issued last year for 38 First Nations to acquire a 12.5 per cent stake in the Westcoast natural gas pipeline.

The Darlington equity deal is backed by CILGC and the Building Ontario Fund, each providing approximately $357.5 million and marking the first time a federal and provincial Indigenous loan guarantee program have officially collaborated on a transaction.

At the announcement Tuesday, Mississaugas of Scugog Island First Nation Chief Kelly LaRocca said the 2018 land rights settlement with Ottawa and Ontario paved the way for the deal.

“It’s what prompted other governments, crown corporations, and proponents to take notice of their First Nation treaty partners when planning major projects… our nations are now invited as decision makers to consider opportunities that would never otherwise have been made available.”

Chief Ted Williams of the Chippewas of Rama recalled that his wife’s grandfather had few opportunities for advancement while working at the Darlington plant 56 years ago, and that his goal is to create something better for future generations.

“Love is not measured by what you say, it’s measured by what you leave behind, and the impact that you have on your community, on your people, on your family,” he said.

Curve Lake First Nation Chief Laurie Hockaday spoke of the “bravery” required to build consensus across seven nations and structure the investment partnership. Asked by a reporter to explain what risks the nations weighed, Hockaday spoke instead of collective decision-making, responsibility to the land, and the importance of economic opportunity for members.

READ MORE: Rights-holders, not stakeholders: Indigenous groups prepare for new era of project equity

Ontario authorized $7.7 billion for the first BWRX-300 reactor last year, with three more planned at a total cost of approximately $21 billion. 

The first reactor is scheduled to be completed by 2030 and once all four are operational, the SMRs could produce 1,200 megawatts of power, enough to power more than a million homes.

Large-scale nuclear projects have a history of cost overruns, and the Darlington SMR would be the first such project in the G7. Utilities around the world are watching the BWRX-300 buildout to inform their own energy plans.

Ontario Energy Minister Stephen Lecce noted that most nuclear reactors built in the past decade were constructed in Russia and China.

“We want Ontario to lead the way, building on time, building on budget, which is the secret sauce of our success,” he said.

OPG is financing the project through a mix of reserves, revenues and debt, with construction costs expected to be recovered through electricity rates over time. 

READ MORE: Nuclear industry eyes opportunities for growth as provinces and territories seek out new generation capacity

Last fall, Ottawa and Ontario provided additional support to help de-risk the project, including $2 billion in equity financing from the Canada Growth Fund.

Following directives in Budget 2025, CILGC prioritizes investments in projects referred to the Major Projects Office. The Darlington SMR was among the first to be picked by Carney for consideration under the Building Canada Act.

Meanwhile, critics are warning against the expansion of nuclear, saying there are better ways to meet anticipated electricity needs in years to come. 

“Environmental Defence has largely refrained from weighing in on nuclear,” wrote director Keith Brooks in a social media post. “But the amount of nuclear power the province is now contemplating is too big to ignore, and the costs are astronomical, especially when compared to solar, wind and batteries, which are being deployed at record speed around the world because they are coming in at record low prices and outcompeting everything else.” 

A June 2026 analysis by Power Advisory LLC, commissioned by Environmental Defence, found that Ontario’s nuclear-heavy electricity plan could cost $117 billion more in capital costs through 2050 than a renewables-focused alternative, assuming nuclear projects are completed on time and on budget.

Last year the Ontario Energy Board approved a 29 per cent rate hike, attributed in part to larger than anticipated costs in the nuclear sector and higher spending on electricity conservation programs.

South of the border, the U.S. announced Tuesday a conditional loan package of almost $25 billion to help speed up five nuclear reactor projects across the U.S., in line with President Donald Trump’s goal of quadrupling domestic production of nuclear power within the next 25 years.

With files from the Canadian Press