Saint John, New Brunswick (Thursday, March 30, 2023) – Moltex Energy Canada Inc. (Moltex) is pleased that Canada’s federal government has recognized the importance of nuclear energy, and nuclear fuel recycling, in the 2023 budget.
“This year’s federal budget is a clear indication of the federal government’s commitment to nuclear energy, and in particular to innovative technologies such as spent fuel recycling,” said Rory O’Sullivan, CEO, Moltex. “We’re pleased the government has acknowledged the essential role nuclear power will play in the country’s transition to a low-carbon power grid.”
The budget includes several incentives to boost Canadian nuclear investment and innovation. Notably, there will be a 30% Investment Tax Credit (ITC) for Clean Technology Manufacturing, for new machinery and equipment used to manufacture or process key clean technologies, including nuclear fuel recycling.
There will also be a 15% ITC for Clean Electricity, for eligible investments in nuclear energy, including both conventional and small modular reactors.
In addition, the budget has extended the eligibility for reduced tax rates for zero-emission technology manufacturers to include the processing and recycling of nuclear fuels, as well as the manufacturing of nuclear energy equipment.
Additionally, the Canada Infrastructure Bank will invest at least $20 billion to support major clean electricity and clean growth infrastructure projects.
To expedite major projects, the federal government has committed $1.3 billion over six years and $55.4 million ongoing to the Impact Assessment Agency of Canada, the Canada Energy Regulator, the Canadian Nuclear Safety Commission, and 10 other federal departments. The budget emphasizes that these departments are “working together to streamline regulatory assessment processes and ensure timely decisions.”
“A faster, more intuitive assessment process is necessary to accelerate project timelines, reduce costs, and remain competitive on a global scale,” added O’Sullivan.
Moreover, the budget proposes to provide $500 million over ten years to the Strategic Innovation Fund (SIF). Moltex was highlighted as one of the companies that previously received funding from SIF to support its nuclear research and technology development.
Moltex is a nuclear technology leader that has caught the attention of governments, utilities and investors worldwide. It is developing three unique technologies: a Stable Salt Reactor – Wasteburner (SSR-W) that uses recycled nuclear waste as fuel; a WAste To Stable Salt (WATSS) process for recycling nuclear waste to produce SSR-W fuel; and GridReserve thermal energy storage tanks, enabling the SSR-W to act as a peaking plant. Moltex was selected by NB Power to progress development of its reactor technology in New Brunswick, Canada, with the goal of deploying first-of-a-kind SSR-W, WATSS and GridReserve units at the Point Lepreau site.