Velan Inc., a Montreal-based manufacturer of industrial valves, has announced plans to build a new manufacturing facility in Durham Region, east of Toronto, to produce components for small modular reactors (SMRs). The project is part of a supply chain partnership with GE Vernova Hitachi Nuclear Energy (GVH), aimed at supporting SMR deployment in Europe.
Partnership Details
On Wednesday, the Ontario government announced that GVH and Velan signed a partnership agreement to explore opportunities for deploying nuclear components for SMR projects in Europe. The facility will focus on manufacturing reactor integral isolation valves (RIIVs) and containment isolation valves (CIVs), which are critical safety equipment for SMRs.
Stephen Lecce, Ontario’s minister of energy and mines, emphasized the economic potential: “With more than $600 billion in global SMR investment expected in the decades ahead, our government is firing up the Ontario supply chain, helping create good-paying jobs for Canadians.”
Economic Impact
The government anticipates that each new reactor built could bring up to $70 million worth of new investment into Ontario. Velan’s new facility will support these efforts by producing key components locally.
Laurent Karim Béland, an associate professor of mechanical and materials engineering at Queen’s University, described the partnership as a “win-win relationship.” He noted that Ontario has already built expertise and an industrial base for SMR technology while working closely with regulators. This is particularly important for nuclear supply chains, which face stringent regulatory requirements. European reactors have often encountered regulatory issues, leading to supply and project delays.
“If it works, that’s going to be extraordinary, because you’re going to get clients, both nationally and internationally, for something that’s been proven to be buildable at a reasonable cost,” Béland said. “I think that this announcement is part of the de-risking that can nudge us towards success.”
Background on SMRs
SMRs are a class of nuclear reactors with a power capacity of up to 300 megawatts per unit, about one-third the size of a full-scale nuclear reactor. They are designed for modular construction and can be deployed incrementally to meet growing energy demands.
GVH is a provider of advanced reactors, fuel, and nuclear services, formed through an alliance between General Electric and Japan’s Hitachi Ltd. In October 2024, GVH announced a previous collaboration with Velan to manufacture valves for North America’s first SMR initiative at Ontario Power Generation Inc.’s Darlington site.
