The federal minister responsible for innovation and industry said that Canada may be at risk of losing the attraction of green industries if it does not consider all renewable electricity options, which he says include nuclear energy.

François-Philippe Champagne explained during an interview with the Canadian press that he considers nuclear energy part of the renewable energy portfolio that needs to grow to support the country's move towards a "21st-century economy."

Champagne added on Friday, "Nuclear definitely." "For me, we have to look at hydroelectric power, and we have to look at nuclear power, and we have to look at small modular reactors, and we have to look at wind power, and we have to look at solar power."

Small modular reactors are a type of advanced nuclear power plants that the International Atomic Energy Agency says can be manufactured in advance and shipped to sites unsuitable for larger conventional reactors. The federal government had previously said it wants to become a "global leader in deploying small modular reactors."

Champagne said, "I can tell you when investors call me, they are not looking for subsidies. They are looking for renewable energy, they are looking for talent, they are looking for the right ecosystem, they are looking for market access. So, I would say renewable energy today is the key to attracting investment, and that’s why we will be there."

Canada has announced a number of new investments designed to integrate into global green supply chains in recent years. These include the expansion of a battery factory costing one billion dollars in Maple Ridge, British Columbia, which was unveiled last November and aims to produce up to 135 million batteries annually.

Officials from battery manufacturer E-One Moli said one reason the Taiwanese parent company chose Canada for expansion is the availability of sustainably produced electricity.

Champagne said in a previous interview that Canada has reached its renewable energy production limits, a point he repeated in Vancouver while pointing to nuclear technology as an essential part of the solution.

He continued, "I think you have to look at all renewable energy sources, and I definitely think that British Columbia like Manitoba or Quebec has been blessed with hydroelectric power."

Often, I say we are living off the gains of those who came before us regarding renewable energy. Now, for us, I think the return we need to leave for the next generation is to make sure we invest now so that we continue to have the capacity to develop our natural resources in a sustainable and responsible manner. Clearly, renewable energy has become essential."

Mark Winfield, Professor of Environmental and Urban Change at York University, said the federal government's recent inclusion of nuclear energy within electricity decarbonization options is concerning.

Winfield said, "Yes, compared to fossil fuel sources, (nuclear) is relatively low carbon, depending on certain assumptions." "But it carries with it a very large and very dangerous set of negative trade-offs. It essentially fails every other sustainability test."

Among Winfield’s concerns are usually the high initial capital costs during nuclear plant construction, which previously involved cost overruns and delays in Canada.

He added he is also worried about nuclear waste management "on a timeline up to a million years" as well as the impact of uranium mining.

Industry proponents point to the reliable nature of nuclear energy, as it does not depend on weather conditions that can affect solar and wind power generation.

George Christidis from the Canadian Nuclear Association said the power of nuclear energy lies in its ability to provide "baseload power generation with zero emissions, which essentially means it provides the foundation in the energy system and energy mix."

He added, "And that means more clean energy generation that then helps decarbonize other sectors."

Christidis said that although nuclear plants have high initial capital costs, these costs are amortized over a longer period compared to other power plants, resulting in more stable costs than facilities subject to the volatility of fossil fuel prices.

He said there is huge potential to build small modular reactors, with other countries looking to Canada to produce such reactors to decarbonize power generation.

Within Canada, smaller nuclear reactors of different sizes are planned or being explored in Ontario, Saskatchewan, and Alberta, and Christidis said they could be "key to transitioning away from coal use" in these provinces.

He said, "The applications of (small and medium reactors) to expand the transition to clean energy solutions in the small reactor space are very real."

However, Winfield said people should be skeptical because the small nuclear reactors being discussed are designs that have not yet been realized.

He said, "No one has built small reactors anywhere." "That’s part of the problem; they don’t exist, even as prototypes."

Winfield continued, even beyond cost management and waste aspects, nuclear energy poses such huge risks that it is not worth considering as part of Canada’s attempt to bring more green industry online.

"You have catastrophic accidents, safety, security, weapons proliferation, and risks that don’t exist with any other energy technology ... all of which points to this technology being the absolute last-resort option when all other decarbonization options have been fully developed and optimized."

"I don’t think we are close to that in Canada at this stage."