Canada aids India’s shift to thorium-based nuclear fuel
An American consortium managing Canada’s federal nuclear science program is developing a new reactor fuel that could reduce demand for Canadian uranium. A May briefing for Natural Resources Minister Tim Hodgson highlights this shift, driven by U.S. interests in Canada’s nuclear sector. This development comes as part of a broader trend of international collaboration in nuclear technology, with significant implications for both Canada and its trading partners.
India, a major importer of Canadian uranium, aims to replace it with thorium, a resource it holds in abundance. Clean Core Thorium Energy, a U.S. firm, is leading this effort with support from Canada’s nuclear labs. Their product, branded ANEEL, uses thorium and a uranium type Canada doesn’t produce. This initiative aligns with India’s long-term goal of achieving energy independence, particularly in the context of its growing nuclear power ambitions.
India’s Nuclear Ambitions
India’s nuclear fleet, largely based on Canada’s Candu reactor design, relies heavily on imported uranium. Despite a $2.6-billion supply deal with Saskatchewan’s Cameco, India seeks energy independence through thorium. Canada’s historical role in India’s nuclear program is significant, as it agreed to sell India two Candu reactors in the 1960s. However, after India tested an atomic bomb in 1974, Canada cut off further support. Despite this, India utilized the Candu technology to build its own reactors, and today, 21 of India’s 25 nuclear-power reactors are Candu-style pressurized heavy-water models, with more under construction, according to the International Atomic Energy Agency.
“We can easily, if there is enough uranium available, go up to whatever figure you want,” said Dinesh K. Patnaik, India’s high commissioner to Canada. However, the briefing notes India views ANEEL as a path to reduce imports from countries like Canada, emphasizing its strategic shift toward thorium-based energy solutions.
Canada’s Role in Thorium Development
Canada’s nuclear research, overseen by Hodgson, is managed by Canadian Nuclear Laboratories (CNL), a subsidiary of Atomic Energy of Canada Ltd. (AECL). CNL is operated by Nuclear Laboratory Partners of Canada, a U.S.-led consortium. This consortium includes major players such as BWX Technologies, Amentum, and Battelle, with Kinectrics as a former Canadian member now owned by BWX. The leadership of CNL also reflects this U.S. influence, with key positions held by individuals from the U.S. nuclear industry.
Progress and Partnerships
CNL and Clean Core signed a 2023 agreement, though commercialization of ANEEL is delayed beyond the initial 2025 target. In April, they deepened their collaboration, reflecting ongoing efforts to overcome technical and logistical challenges. The Trump administration authorized Clean Core to export thorium fuel to India in September 2025, marking a significant milestone in the project’s development.
