Following the confirmation that it has received approval for construction for the small modular reactor, Ontario Power Generation (OPG) announced it has awarded an alliance contract for the execution phase of the Darlington New Nuclear Project (DNNP) to Aecon Kiewit Nuclear Partners (AKNP), a joint venture between Aecon Group Inc. and Kiewit Nuclear Canada, with Aecon acting as lead partner.
This significant step marks further progress in the development of North America’s first grid-scale Small Modular Reactor (SMR).
Contract Award and Scope of Work
Valued at approximately $1.3 billion for Aecon’s share only, the contract will be added to the company’s Construction segment backlog in the second quarter of 2025. The project will be delivered under an Integrated Project Delivery (IPD) model, structured as an alliance contract—a collaborative approach that aligns the interests of all parties to deliver the project as a unified team.
Located at the existing Darlington nuclear site in Clarington, Ontario, the project brings together Aecon Kiewit Nuclear Partners (AKNP), Ontario Power Generation (OPG) as the owner and licence holder, GE Vernova Hitachi Nuclear Energy, and AtkinsRéalis under a shared governance model.
Under this alliance framework, AKNP will lead responsibilities for project management, construction planning, and execution, with the first unit scheduled to reach commercial operation by 2030. This collaborative model is designed to foster transparency, shared risk and reward, and efficient decision-making—key factors for the successful delivery of complex nuclear infrastructure.
What is the Integrated Project Delivery (IPD) model?
Integrated Project Delivery (IPD) is a collaborative project model where the owner, designer, and builder work together under a shared or coordinated contract to align goals, share risks and rewards, and improve project outcomes. It emphasizes early involvement, joint decision-making, transparency, and often incorporates Lean Construction and BIM.
IPD and alliance contracting share key principles: collaboration, cost transparency, and a focus on what’s best for the project. Both link financial incentives to performance and encourage teamwork over adversarial relationships.
The main differences lie in structure and use. IPD typically involves separate legal entities under multi-party agreements and is common in North American vertical construction, as in this project. Alliance contracts usually form a single legal entity, often include no-blame clauses, and are widely used in Australian and British infrastructure.
Aecon's leadership comments on the project
This project represents a major milestone in the deployment of SMRs in North America, positioning Ontario at the forefront of next-generation nuclear development.
“OPG’s Darlington New Nuclear Project is a trailblazing undertaking – leading the way in delivering the next generation of nuclear plants across North America and internationally,” said Jean-Louis Servranckx, President and CEO of Aecon Group Inc. “Aecon is proud to bring its diverse nuclear expertise and multidisciplinary capabilities to play a prominent role in safely executing this exciting project to meet the energy demands of future generations in Ontario.”
The execution team brings decades of nuclear construction experience to the project. “Backed by over five decades of nuclear experience and the collective capacity of our project team, we are well positioned to successfully execute the next phase of this clean energy project with a steadfast commitment to safety, quality, schedule and cost performance,” said Aaron Johnson, Senior Vice President, Nuclear, Aecon Group Inc.
Aecon's Broader Role in Ontario’s Nuclear Sector
Aecon has played a major role in shaping Ontario’s nuclear infrastructure. The company is the lead constructor for Ontario’s three largest nuclear refurbishment projects, including:
Darlington Nuclear Refurbishment
Pickering Nuclear Refurbishment
Bruce Major Component Replacement program
These projects reinforce Aecon’s long-standing involvement in complex nuclear initiatives and underscore its capacity to deliver high-value, schedule-critical infrastructure in Canada’s energy sector.
Related Article, Project and News
- GE Vernova Hitachi’s BWRX-300 small modular reactor approved for construction for Darlington New Nuclear Project in Ontario
- What is an Alliance Contract? (Pros, Cons & Examples)
- Aecon to replace Condensers and Feedwater Heaters at Anna Nuclear Power Station in Virginia
- Aecon to deliver the 1.5km Elevated Guideway for the Eglinton Crosstown West Light Rail Extension
