The world is shifting towards sustainable and renewable energy sources, but nuclear energy still plays a crucial role in meeting the world’s growing energy demands. Canada is one of the leading countries in nuclear energy production and has a significant presence in the global nuclear industry. If you are an investor looking to invest in nuclear energy stocks in Canada, then this article is for you.
Investing in nuclear energy stocks can be lucrative for investors, but it also involves significant risk. Therefore, conducting thorough research and analysis before investing in stocks is essential. This article will explore Canada’s top nuclear energy stocks that you can consider for investment.
Whether you are a seasoned investor or a beginner, this article will provide valuable insights and information to help you make informed investment decisions in the Canadian nuclear energy sector. So, let’s dive in and explore Canada’s top nuclear energy stocks.
What's in the Article:
- Why Invest in Nuclear Energy in Canada?
- The Best Nuclear Energy & Power Stocks in Canada
- What About Canadian Uranium Stocks?
- What’s the top Nuclear Energy ETF in Canada?
- What Does the Canadian Nuclear Industry Look Like?
- Who Operates Nuclear Plants in Canada?
- What Companies Handle Nuclear Waste in Canada?
Why Invest in Nuclear Energy in Canada?
With government support and clean energy trends, nuclear energy shows a promising future in Canada.
Strong Government Support
The Canadian government is demonstrating a robust commitment to nuclear power. For instance, it is backing a grid-scale small modular reactor (SMR) project with C$970 million ($708 million) in financing.
Additionally, the proposed budget creates tax credits for clean technology manufacturing and processing of nuclear energy equipment, signalling further support for the sector. The government is also investing $50 million in the Canadian Nuclear Safety Commission to develop appropriate regulations for small modular reactors and for international regulatory harmonization.
Leading Role in Clean Energy Generation
Canada leads the world in clean energy generation due to its nuclear technology. Ontario, for instance, eliminated coal from its grid in 2014, primarily due to refurbishing existing nuclear plants. About 15% of Canada’s electricity comes from nuclear power, with 19 reactors, mainly in Ontario, providing 13.6 GWe of power capacity.
The future of nuclear energy in Canada is promising, with plans to expand its nuclear capacity. The development of Small Modular Reactors (SMRs), new nuclear technology touted as a vital part of the country’s plans to reduce greenhouse gas emissions, is a significant part of this future.
Presence of Industry Leaders
Companies like BWX Technologies are already beginning to recognize revenue from significant projects like the BWRX-300, signalling a favourable investment environment.
With its world-class nuclear workforce and a global desire to reduce reliance on Russian nuclear technology, Canadian companies are poised to become the global partner of choice for new nuclear projects.
All these factors make investing in Canada’s nuclear energy sector attractive.
The Best Nuclear Energy & Power Stocks in Canada
These companies are involved in engineering, safety, training, technology, and much more related to nuclear power in Canada.
SNC-Lavalin Group Inc. (SNC.TO)
As one of the world’s leading engineering and construction groups, SNC-Lavalin has a significant presence in the nuclear sector. They provide end-to-end solutions for nuclear power plants, including design, construction, maintenance, and decommissioning. With a solid financial performance and a leading market position, the company’s emphasis on nuclear innovation could provide growth potential.
BWXT Canada Ltd. (BWXT Canadian Subsidiary)
BWX Technologies operates in Canada and provides various nuclear services, including engineering, manufacturing, and maintenance. BWXT’s financial performance remains strong due to its diverse service offerings and reliable customer base. As they continue to innovate in the nuclear sector, the company is poised for continued growth.
They manufacture parts for nuclear components in Canada.
ATS Corporation (ATS.TO)
ATS provides innovative automation solutions for a variety of industries, including nuclear. Their strong financial performance and leadership in the automation space position them well for growth as nuclear facilities increasingly adopt automation technologies.
Aecon Group Inc. (ARE.TO)
Aecon is one of Canada’s largest construction companies and has worked on several major nuclear projects. Aecon’s strong financial performance and experience in the nuclear sector make it well-positioned to seize growth opportunities as new nuclear projects come online.
L3Harris Technologies, Inc. (LHX)
While primarily known for its work in the aerospace and defence sectors, L3Harris also provides advanced detection and imaging technologies with applications in the nuclear industry. The company’s strong financial performance and innovation in nuclear safety technology make it an attractive investment opportunity.
Thermo Fisher Scientific Inc. (TMO)
Thermo Fisher offers a range of products and services to support nuclear research and power generation. The company’s strong financial performance and leading position in the scientific research services market provide a solid base for future growth.
E.S. Fox Limited
This private company from Niagara Falls has a long history in the nuclear industry, providing construction, fabrication, and maintenance services. E.S. Fox is well-positioned for growth due to its established relationships within the industry and its emphasis on innovation and high-quality service.
What About Canadian Uranium Stocks?
We have written an article specifically for uranium exploration, mining and refinement in Canada. You can read our article on the top uranium companies in Canada here.
What’s the top Nuclear Energy ETF in Canada?
The VanEck Uranium + Nuclear Energy ETF (NLR) is listed as a top uranium ETF in Canada. The fund aims to provide investment returns by tracking the price and yield performance of the MVIS Global Uranium and Nuclear Energy Index before fees and expenses. As of May 9, 2023, it has a yield of 2.00% and a year-to-date return of 3.84%
What Does the Canadian Nuclear Industry Look Like?
Outside of uranium mining, Canada’s nuclear energy industry plays a significant role in the country’s energy mix. Canada is one of the few nations that export nuclear technology, with its CANDU reactor design used worldwide.
As the world’s focus shifts towards carbon-neutral energy sources, nuclear power’s importance is expected to increase, providing opportunities for growth in the Canadian industry.
This sector is not just about uranium mining. Still, it spans various activities, including reactor design and construction, operation and maintenance of nuclear power plants, nuclear safety, and waste management.
Here are some of the key sub-sectors of the nuclear energy industry in Canada outside of uranium mining:
- Reactor Design and Construction: Companies in this sub-sector focus on the design, engineering, and construction of nuclear reactors, both domestically and for export.
- Operations and Maintenance: Once nuclear reactors are built, they need to be operated and maintained. Companies in this sub-sector provide these services, ensuring reactors operate safely and efficiently.
- Nuclear Safety and Security: This sub-sector includes companies that provide safety and security solutions for nuclear facilities. This can range from physical security measures to sophisticated detection and monitoring systems.
- Nuclear Waste Management: Managing and disposing of nuclear waste is critical to the nuclear energy lifecycle. Companies in this sub-sector specialize in various aspects of nuclear waste management, from transportation and storage to decommissioning and remediation.
- Nuclear Medicine: This sub-sector involves using radioactive substances for medical diagnosis and treatment. It includes the production of medical isotopes and the design and manufacture of equipment used in nuclear medicine.
- Nuclear Research and Consultancy: This sub-sector includes companies and institutions involved in nuclear research and consultancy firms providing expert advice on various aspects of nuclear energy.
- Nuclear Training and Education: Companies and institutions in this sub-sector provide training and education for the nuclear industry, helping to ensure a skilled workforce.
- Nuclear Equipment Manufacturing: This sub-sector includes companies that manufacture equipment used in the nuclear industry, such as reactor components, control systems, and safety equipment.
Who Operates Nuclear Plants in Canada?
In Canada, nuclear reactors are operated by various licensees, including nuclear power plants, research reactors, and nuclear substance processing facilities. These facilities are licensed by the Canadian Nuclear Safety Commission (CNSC) and are subject to strict regulatory oversight to ensure safety.
As of the latest update in 2023, Canada operates 19 reactors, mainly in Ontario, which provide 13.6 GWe of power capacity. These reactors contribute approximately CAD 13 billion annually to Canada’s GDP and provide about 70,000 direct and indirect jobs nationwide.
Among the notable reactors, units 2 and 3 of Ontario’s Pickering Nuclear Generating Station are already in safe storage. In addition, three prototype nuclear reactors owned by Atomic Energy of Canada Limited were shut down and prepared for decommissioning in the 1980s.
Ontario Power Generation (OPG) is a crown corporation wholly owned by the Government of Ontario. It is responsible for approximately half of the electricity generation in the province of Ontario, Canada, making it a significant player in the energy sector. OPG owns and operates a diverse portfolio of power generation assets, including nuclear, hydroelectric, thermal, and a small amount of wind power.
Furthermore, Canada is investing in developing small modular reactors (SMRs), a new nuclear technology that is expected to be part of the country’s plans to reduce carbon emissions. A small reactor under construction at Darlington is expected to be operational by 2029.
What Companies Handle Nuclear Waste in Canada?
These government-related organizations handle nuclear waste management in Canada; they subcontract to private companies but are run with government oversight.
Nuclear Waste Management Organization (NWMO)
Established in 2002 under the Nuclear Fuel Waste Act (NFWA), the NWMO is responsible for investigating approaches for managing Canada’s used nuclear fuel. The organization is currently the only one in Canada working towards developing a deep geological repository (DGR) for the long-term storage of used nuclear fuel from Canadian nuclear power plants. Their plan, known as Adaptive Phased Management, requires used fuel to be contained and isolated in a deep geological repository.
Atomic Energy of Canada Limited (AECL)
AECL, a federal Crown corporation, has managed nuclear waste in Canada. In 1978, it was directed by the federal government and the government of Ontario to create a plan for a repository under the new Nuclear Fuel Waste Management Program. As a result, AECL and the Government of Canada are investing more than $1.2 billion to revitalize the Chalk River Laboratories for various purposes, including waste management.
Canadian Nuclear Laboratories (CNL)
CNL provides guidance and services for all types of waste (both radioactive and non-radioactive), from generation to disposal. CNL and Ontario Power Generation are the two leading radioactive waste managers in Canada and have proposed multiple long-term low- and intermediate-level radioactive waste management projects in recent years
Canadian Nuclear Safety Commission (CNSC)
While not a company, the CNSC plays a crucial role in nuclear waste management as it regulates all steps to protect the health, safety, security, and the environment.
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