Oct. 23, 2025 (Clarington, ON) – Canada Growth Fund Inc. (CGF) and Building Ontario Fund (BOF) today announced an equity commitment agreement to finance the Small Modular Reactors (SMR) project to be constructed at the Darlington New Nuclear Project (the DNNP or the Project), which will be majority owned and operated by Ontario Power Generation Inc. (OPG). Through this agreement, CGF and BOF have committed to invest up to $2 billion and $1 billion, respectively, each taking minority ownership positions in the Project.
The DNNP will see the construction of four grid-scale commercial SMRs – a first among G7 nations – that, when completed, are expected to deliver up to 1,200 MW of reliable, affordable, and low-carbon electricity, enough to power 1.2 million homes. CGF and BOF are investing in this world-leading energy infrastructure project to de-risk the construction and operation of the first SMRs. Leveraging their unique investment mandates, both organizations are bringing forward innovative financial arrangements to temporarily share certain risks that currently limit private sector interest today. As a result, this transaction is paving the way to spur private sector and Indigenous investment in the DNNP over time.
The investment will also reinforce Canada’s robust nuclear supply chain, inject hundreds of millions of dollars into Ontario’s industrial supply chain, contribute to the resilience of Canada’s low-carbon electricity grid, and foster a new generation of Canadian nuclear expertise.
This is a watershed moment for Building Ontario Fund and demonstrates our catalytic role in financing large-scale infrastructure projects” – Michael Fedchyshyn, CEO of Building Ontario Fund.
“Through this novel financing arrangement, Canada Growth Fund is pleased to support these first-of-a-kind small modular nuclear reactors with significant potential to be replicated across Canada and globally,” said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc. (“CGFIM”). “We look forward to building upon this financing model to attract further interest from private investors committed to developing low-carbon energy infrastructure in Ontario and across Canada.”
“We are delighted to bring PSP Investments’ rigorous investment process, depth of expertise, operational excellence and arm’s length governance model to the execution of CGF’s mandate,” said Deborah K. Orida, President and Chief Executive Officer of PSP Investments. “With today’s announcement, CGFIM continues to position CGF as a leading investor in the Canadian ecosystem, with a keen focus on unlocking important projects, improving Canada’s investment climate, and contributing to PSP’s foresight on the evolution of the energy sector.”
“The transaction opens new investment opportunities in the province’s energy sector and will boost competitiveness, drive job creation, and support innovation across the industrial base.” said Michael Fedchyshyn, CEO of Building Ontario Fund.
“The Darlington New Nuclear Project will help meet growing demand for low-carbon energy, and provide significant economic benefits for Ontarians and Canadians, creating jobs and securing contracts across the province’s robust nuclear supply chain,” said Nicolle Butcher, OPG President and CEO. “Other Canadian provinces and global jurisdictions are seeking our expertise to deploy SMRs as a solution for their energy security needs, making this project a platform for further growth.”
Canada Growth Fund (CGF) is a $15 billion arm’s-length investment vehicle designed to attract private capital to build Canada’s clean economy. It uses investment instruments that absorb certain risks to catalyze private investment in low-carbon projects, technologies, businesses, and supply chains. Visit www.cgf-fcc.ca for more information. For CGF’s Media relations, contact mediacgf@cgf-fcc.ca.
In Budget 2023, the Government of Canada appointed PSP Investments, through a wholly owned subsidiary, to act as the asset manager for CGF. Canada Growth Fund Investment Management Inc. serves as the independent and exclusive asset manager for CGF.
Building Ontario Fund (BOF) is a board-governed Crown agency with a mandate to catalyze investment in revenue-generating infrastructure projects across Ontario. Backed by $8 billion in funding from the province, BOF supports transformative projects in five priority sectors: affordable and student housing, long-term care, energy, transportation, and municipal and community infrastructure. Through innovative financing and partnerships with institutional investors and Indigenous communities, BOF helps unlock private capital to deliver high-impact infrastructure. Established under the Building Ontario Fund Act, 2024, BOF is building a stronger, more resilient province for today and future generations.
Learn more at buildingonfund.ca and follow us on LinkedIn @buildingontariofund.
As Ontario’s largest and one of North America’s most diverse electricity generators, OPG invests in local economies and employs thousands of people across Ontario. OPG and its family of companies are advancing the development of new low-carbon technologies, refurbishment projects and electrification initiatives to power the growing demands of a clean economy. Learn more about how the company is delivering these initiatives while prioritizing people, partnerships and strong communities at opg.com.