Ontario’s BWXT to Power Rolls-Royce’s Nuclear Reactor Push

The announcement that BWX Technologies (BWXT) in Ontario will join forces with Rolls-Royce SMR Ltd to design steam generators for its small modular reactors (SMRs) is more than a business deal; it’s a strategic move with wide-ranging implications for nuclear energy, industrial growth, and the global transition to low-carbon power. This partnership solidifies BWXT’s position as a core player in the evolving nuclear sector while lending credibility and capability to Rolls-Royce’s ambitious SMR rollout. It also signals that Canada, and specifically Ontario, is not just participating in the global energy transition; it’s helping to manufacture it.

To understand the impact, it helps to know what Rolls-Royce SMR is trying to achieve. Their SMR design produces around 470 megawatts of electricity, enough to power a million homes, and uses a pressurized water reactor based on proven technology. What sets this project apart is how it’s being built. Instead of constructing massive nuclear plants on-site over the course of a decade or more (a model that’s often plagued by delays and budget overruns), Rolls-Royce is aiming to produce these reactors in modular form. Think of it like nuclear Legos: major components built in factories, shipped out, and assembled on-site. This model is supposed to drastically cut costs, reduce construction time, and make nuclear power more scalable and flexible.

That vision, however, depends entirely on having a robust and experienced supply chain, and that’s where BWXT comes in. With decades of experience building critical nuclear components, including steam generators for both commercial and military use, BWXT is the kind of manufacturing partner Rolls-Royce needs to turn its SMR blueprint into a global product. The fact that BWXT will design and potentially manufacture these components at its Cambridge, Ontario, facility, already undergoing a CAD 57 million expansion, is a sign that this isn’t just a paper partnership. BWXT is scaling up, hiring over 200 skilled workers, and increasing production capacity in direct response to this and other nuclear opportunities.

For Canada, this partnership is a win on multiple levels. First, it creates high-quality, long-term jobs in Ontario. These aren’t gig economy or short-term construction roles; these are skilled manufacturing and engineering positions that support a sustainable industrial base. Second, it integrates Canada into the global clean energy economy. As countries around the world look for ways to meet climate targets while keeping their power grids stable, SMRs are gaining traction. The International Atomic Energy Agency (IAEA) and energy ministries in countries like the UK, the US, and Canada have all pointed to SMRs as a crucial piece of the net-zero puzzle. By being part of the manufacturing supply chain, Canada positions itself not just as a user of clean energy but as a supplier of the tech that makes it possible.

This deal also reflects a larger shift in how nuclear energy is being approached. Traditional nuclear projects have faced criticism for being too expensive, too slow, and too risky. SMRs, on the other hand, offer a different path. They’re smaller, faster to build, and potentially cheaper per unit of electricity produced. Their modular nature allows them to be deployed in areas that don’t have the infrastructure for full-scale nuclear plants, making them a good fit for remote regions, industrial applications, and even countries new to nuclear power. By working with experienced firms like BWXT, Rolls-Royce is attempting to sidestep the pitfalls that have plagued nuclear power in the past and offer something more predictable and scalable.

But challenges remain. While the idea of factory-built reactors sounds promising, it’s never been done on scale. Regulatory hurdles are significant. Even though Rolls-Royce’s SMR design is based on familiar PWR technology, it still has to pass through a lengthy and detailed regulatory process in each country where it’s deployed. The UK’s Generic Design Assessment is ongoing, and Canada has its own requirements through the Canadian Nuclear Safety Commission. Beyond approvals, there’s also the question of economics. Can the SMR model deliver the promised cost savings? Can components be mass-produced without sacrificing quality or safety? These are real questions that will need to be answered not just through design documents, but through real-world manufacturing and deployment.

Still, the potential upside is hard to ignore. For BWXT, this partnership opens the door to future contracts, not just with Rolls-Royce but potentially with other SMR developers looking for experienced manufacturing partners. For Rolls-Royce, it reduces supplier risk and adds manufacturing strength outside the UK, which can help win export contracts in North America and beyond. For Ontario, it reinforces the province’s place in the nuclear ecosystem. Ontario already generates over 50% of its electricity from nuclear power and has a well-developed base of nuclear expertise. This partnership builds on that foundation and points to future industrial and energy leadership.

In the bigger picture, the BWXT–Rolls-Royce partnership is a sign that the nuclear industry is evolving. It’s adapting to a world that demands clean, reliable energy but is increasingly skeptical of big, slow, over-budget megaprojects. SMRs could be a way to bring nuclear back into the mainstream, more flexible, faster to build, and easier to finance. Deals like this one are the first real steps toward making that vision tangible. If SMRs are going to become a major part of the global energy mix, partnerships like this will be how it happens: through experienced manufacturers, proven designs, and real industrial investment.

So yes, this is a manufacturing deal, but it’s also a marker for something bigger. It shows where nuclear power is going, what kind of energy we’re building, and who’s going to be building it. Ontario and BWXT just staked their claim.