Canadian Natural Resources Minister Jonathan Wilkinson announced on Tuesday that Canada Infrastructure Bank (CIB) and a major generating company have joined together in a $970 million deal to fund the construction of Canada’s first nuclear Small Modular Reactor (SMR).

Wilkinson noted in his statement, “We are doing this because nuclear energy – as a non-emitting source of energy – is critical to the achievement of Canada’s and the world’s climate goals…”

He went on, “Nuclear power is one source that can help in reaching our climate targets while addressing growing future demand,”

Canada is committed to reducing its greenhouse gas emissions to zero by 2050. SMR technology is seen as critical to this goal.

The CIB will offer a low-interest loan for the project, which will be spent on preparatory work, including site preparation, and generation of a design to be implemented..

Ontario Power Generation, the recipient of the loan for the project, noted that GE Hitachi Nuclear Energy will design the reactor, which will supply enough electricity for 300,000 homes. The project is predicted to be completed by 2030, with site preparation to begin later this year.

SMRs are small nuclear reactors designed to be built in factories, and delivered to a site the size of roughly two soccer fields, for assembly and installation. An SMR can be capable of supplying electricity for up to one million homes.

Nuclear power plants present supply roughly 15% of Canada’s energy, according to the World Nuclear Association.