Ontario is investing $500,000 to explore converting its largest former coal plant into a nuclear-powered industrial facility, marking a shift from electricity-only reactors to systems that provide clean heat for manufacturing. The Nanticoke site, which closed in 2013 after decades as North America's largest coal-fired power station, could soon host small modular reactors (SMRs) designed to supply both electricity and high-temperature steam to chemical plants, refineries, and other heavy industries.

This development signals a broader pivot in how nuclear energy is being deployed. While much recent attention has focused on powering artificial intelligence data centers, a parallel trend is emerging: using nuclear reactors to decarbonize the industrial sector, which accounts for roughly one-third of U.S. energy consumption and generates significant carbon emissions.

Why Is Industrial Heat Such a Hard Problem to Solve?

Heavy manufacturing requires massive amounts of reliable, high-temperature steam to produce chemicals, fertilizers, plastics, and fuels. The International Energy Agency projects that global industrial heat demand will grow 16 percent between 2023 and 2028, yet most of this heat still comes from burning fossil fuels. Unlike electricity, which can be generated from wind or solar, industrial process heat demands constant, on-demand thermal energy at specific temperatures, making it one of the most difficult parts of the global economy to decarbonize.

In the United States alone, the industrial sector emitted 947 million metric tons of carbon dioxide in 2024, according to recent data cited by NuScale Power, a leading SMR developer. Replacing that fossil fuel heat with clean energy has proven technically and economically challenging, which is why most decarbonization efforts have focused on electricity generation.

How Can Nuclear Reactors Provide Industrial Process Heat?

NuScale has developed an integrated energy system that goes beyond generating electricity. A single NuScale Power Module, a 250-megawatt thermal reactor, can produce up to 8,883 metric tons of steam per day, equivalent to 816,000 pounds per hour at temperatures around 283 degrees Celsius. For industrial applications requiring even higher temperatures, NuScale uses a heat augmentation process that combines the reactor's core output with commercially available steam compressors and heaters.

The approach is elegant: the reactor provides the heavy lifting, accounting for over 86 percent of the energy needed to reach high-temperature conditions like 500 degrees Celsius, while the augmentation system handles the remaining 14 percent. This design allows NuScale to support production of ethylene oxide, acetic acid, nylon, polyester, and urea, among other chemicals. Approximately 70 percent of U.S. industrial heat demand falls below 500 degrees Celsius, meaning this technology could address the majority of industrial decarbonization needs.

NuScale is moving beyond concept stage. The company has partnered with Ebara Elliott Energy to build and test a commercial-scale, high-temperature steam compressor designed to integrate with petrochemical plants. The demonstrator will compress steam to produce 60,000 pounds per hour at 500 degrees Celsius, with completion targeted for 2027.

What Makes the Nanticoke Site Attractive for This Transition?

The former Nanticoke coal plant offers what Ontario Energy Minister Stephen Lecce called a "jewel" of infrastructure. The 364-hectare property is already zoned and permitted for up to 3,000 megawatts of electricity generation, has access to high-voltage transmission lines, rail service, and a port. Rather than building new energy infrastructure from scratch, developers can leverage existing transmission connections and site preparation, reducing both costs and timeline.

The $500,000 in growth readiness funding from Ontario Power Generation will allow Haldimand County and neighboring communities to conduct feasibility studies and community consultations before any technology is selected. While natural gas could be deployed within a few years, an SMR would likely require closer to a decade of development and construction.

The announcement carries emotional weight for the region. Haldimand County Deputy Mayor Deborah McKeen worked at the Nanticoke station for 27 years, becoming its first female maintenance mechanic in 1986, and left when the plant closed in 2013. "My reaction to today's news is absolutely ecstatic," she said, noting that the site represents infrastructure that would take years and billions of dollars to replicate elsewhere.

What Are the Economic and Employment Implications?

While specific job numbers depend on which technology is ultimately selected, Ontario has pointed to comparable projects as a benchmark. Four SMRs planned at the Darlington site are expected to create between 18,000 and 19,000 construction jobs and approximately 3,700 permanent positions. Eighty percent of SMR components are sourced from Canadian and Ontario suppliers, meaning much of the economic benefit stays within the region.

Business leaders view the project as a catalyst for broader regional prosperity. Renée VanKooten, president of the Simcoe and District Chamber of Commerce, stated that "major energy projects of this scale and potential create broad regional opportunities" and described the initiative as "more than an energy project" but rather "a catalyst for prosperity across both counties".

Steps to Evaluate Nuclear-Powered Industrial Heat Projects

• Community Engagement: Conduct early and transparent consultations with residents, neighboring municipalities, and Indigenous partners to build understanding of project benefits and address concerns before final technology decisions are made.
• Infrastructure Assessment: Evaluate existing transmission lines, rail access, water availability, and zoning to identify sites where nuclear facilities can leverage existing infrastructure rather than requiring costly new construction.
• Industrial Partnership Development: Identify anchor industrial customers with high-temperature heat demands and establish long-term power purchase agreements to ensure economic viability and operational flexibility.
• Technology Demonstration: Support pilot projects and commercial-scale testing of heat augmentation systems, steam compression technology, and modular reactor configurations before full-scale deployment.

The convergence of industrial decarbonization needs, rising global energy demand, and proven SMR technology is creating momentum for projects like Nanticoke. Unlike data center applications, which have captured recent headlines, industrial heat represents a larger and more difficult decarbonization challenge. By repurposing sites with existing infrastructure and pairing nuclear reactors with industrial customers, developers can accelerate the transition away from fossil fuels while creating substantial employment and economic benefits.

Haldimand County Mayor Shelley Ann Bentley expressed hope that new energy generation could begin within five to ten years, transforming a site that has sat largely idle for over a decade into a cornerstone of Ontario's clean energy future.