North America’s most closely watched small modular reactor is drawing scrutiny not just for falling behind schedule, but for a price tag that dwarfs conventional power generation alternatives.
The 300-megawatt unit being developed through a GE Vernova (NYSE: GEV) Hitachi partnership in Ontario carries a cost exceeding $14,000 per kilowatt, compared to roughly $2,500 per kilowatt for a new natural gas plant.
Ontario Power Generation, the state-run utility overseeing the project, has confirmed the reactor will likely miss its targeted October 2030 operational start date and surpass its original budget.
That budget had already set a high bar, with the single unit’s total projected cost sitting at approximately $5.4 billion before the latest round of adjustments.
Of that figure, around $4.3 billion was earmarked specifically for the primary reactor unit, with the remainder designated for shared site infrastructure intended to serve three additional reactors planned for the location.
Officials at Ontario Power Generation cited ongoing engineering adjustments inherent to a pioneering reactor design, compounded by persistent supply chain disruptions, as the chief factors pushing both the timeline and costs higher.
In a statement to Barron’s, GE Vernova acknowledged the scope of the challenge, saying the company is committed to working through any issues affecting the project, which also may include “engineering, procurement and construction, as well as evolving market conditions, including inflation and geopolitical risks.”
The timing is particularly sensitive for an industry attempting to prove that next-generation nuclear technology can deliver power reliably and economically, especially as surging data center construction drives unprecedented demand for round-the-clock clean energy.
Competing SMR developers, including Oklo (NASDAQ: OKLO), X-Energy (NYSE: XE), and NuScale Power (NYSE: SMR), are also navigating investor expectations in a sector where the Ontario project has served as a bellwether for commercial viability.
Despite the concerning project updates, GEV shares climbed roughly 2% on Wednesday, consistent with a broader year-to-date gain of approximately 22.5% that reflects sustained investor confidence in the company’s overall energy transition portfolio.
Retail sentiment tracked on Stocktwits characterized the mood around GE Vernova as neutral, with message volumes described as normal, suggesting markets had largely anticipated some degree of difficulty with the pioneering build.
The cost and schedule pressures facing the Ontario reactor underscore a recurring tension in the nuclear industry between the long-term promise of low-carbon baseload power and the near-term financial realities of constructing first-of-a-kind facilities.
