For more than a decade, the former Lambton Generating Station property near Courtright has represented both an important part of Ontario’s industrial history and a major missed economic opportunity for St. Clair Township.
I previously wrote about the possibility of using the property for a large data centre—an idea that made sense because data centres require enormous amounts of reliable electricity. Now, however, the Ontario government is taking a much closer look at returning the site to its original purpose: generating power.
On August 25, 2026, Ontario Energy and Mines Minister Stephen Lecce announced $500,000 in provincial funding to help St. Clair Township begin planning and consulting the public about new electricity generation at the former Lambton Generating Station site.
Several technologies remain under consideration, including natural gas, hydrogen, battery storage, small modular reactors and traditional large-scale nuclear generation. However, Lecce made it clear that his personal preference is nuclear power.
That does not mean a nuclear station has been approved. No reactor design has been selected, no construction contract has been awarded and no nuclear licence has been issued. Nevertheless, this is the strongest indication yet that the province sees the Lambton property as an important part of Ontario’s future electricity system.
What Has the Ontario Government Announced?
The province is providing St. Clair Township with $500,000 in “growth readiness” funding. The money is intended to help the municipality hire experts, assess infrastructure needs and begin consultation with residents, local organizations and Indigenous communities.
The announcement advances a process that began in 2024, when the Ontario government asked Ontario Power Generation to examine three provincially owned properties for new electricity generation:
- The former Lambton Generating Station in St. Clair Township
- The former Nanticoke Generating Station in Haldimand County
- The Wesleyville property in Port Hope
According to Ontario Power Generation, the approximately 1,200-acre Lambton property is already zoned for power generation. It also has access to transmission infrastructure, railway service and a deepwater dock on the St. Clair River.
Those advantages are extremely difficult—and expensive—to reproduce at an undeveloped location.
OPG is currently examining several possible technologies, including large nuclear reactors, small nuclear reactors, natural gas generation, hydrogen production and battery energy storage. The property is large enough that more than one type of generation or industrial development could eventually operate there.
Nuclear Power Is Now Receiving Serious Attention
Although the province has not officially selected nuclear power, Lecce was direct about his preference during the Courtright announcement.
“I think we should go big,” he said while discussing the possibility of nuclear generation, according to Sarnia News Today.
The minister described Canada’s nuclear industry as comparatively resistant to tariffs and recessions because much of the technology, fuel, engineering expertise and skilled labour can be supplied within Canada.
Ontario already receives more than half of its electricity from nuclear power. The province is refurbishing existing reactors and building the first of four planned BWRX-300 small modular reactors at Darlington.
The Darlington project gives Ontario practical experience with a new generation of smaller reactors. Each BWRX-300 is designed to produce approximately 300 megawatts of electricity. Depending on the results of the Lambton study, the province could theoretically consider multiple small modular reactors, a larger nuclear station or a combination of technologies.
Associate Energy Minister Sam Oosterhoff referred to the possibility of producing as much as 900 megawatts from small modular reactors at Lambton. That could indicate a development involving three reactors similar in output to the 300-megawatt Darlington design. However, this should be treated as a possible scale—not a finalized proposal.
The capacity, reactor technology and number of units have not been formally determined.
Why Ontario Needs More Electricity
Ontario’s demand for electricity is expected to rise dramatically as the province adds new homes, factories, electric vehicles, data centres and energy-intensive industries.
OPG says the Independent Electricity System Operator has forecast that provincial electricity demand could increase by approximately 65 per cent by 2050. During the Courtright announcement, Lecce referred to a more recent projection of as much as 90 per cent growth.
Whichever forecast ultimately proves correct, the overall direction is unmistakable: Ontario is going to require considerably more electricity.
A new generating station at Lambton could provide power for:
- Electric vehicle and battery manufacturing
- Steel and petrochemical production
- Hydrogen projects
- Large data centres and artificial-intelligence computing
- Greenhouse and agricultural processing operations
- Residential and commercial growth
- Greater electrification of transportation and industrial equipment
A reliable local supply could also make Sarnia–Lambton more attractive to companies that require large amounts of power before they will consider investing in a region.
What Happened When Lambton Generating Station Closed?
The original Lambton Generating Station began operating in 1969 and served Ontario for more than four decades. At its peak, its four coal-fired units had a combined capacity of approximately 1,976 megawatts.
The first two units were retired in 2010. The remaining units, with approximately 950 megawatts of capacity, were shut down in September 2013 as part of Ontario’s phase-out of coal-fired electricity.
The coal phase-out produced important air-quality and environmental benefits across the province. However, the economic consequences for St. Clair Township were substantial.
According to Mayor Jeff Agar, the closure eliminated approximately 400 high-paying jobs and reduced the township’s annual tax revenue by roughly $2 million. Earlier in its history, the station had employed as many as 700 people.
For a smaller municipality, losing $2 million in recurring revenue is not a minor budget adjustment. It affects the municipality’s ability to pay for roads, recreation, fire protection, public works and other services. The loss of well-paid employment also affected contractors, restaurants, retailers and other businesses supported by the workers and industrial activity around the station.
OPG continued examining possible uses for the facility after generation ended, including biomass and natural gas conversion. In 2016, however, OPG decided to proceed with decommissioning. The major buildings and three landmark smokestacks were demolished in 2022.
The physical station disappeared, but much of the property’s strategic value remained.
Why the Lambton Property Is So Valuable
The former generating station is not simply an empty industrial field. It is a rare combination of land, location, infrastructure and industrial experience.
Existing transmission connections
Power plants require access to major transmission lines and switchyards. Building those connections from scratch can add years and enormous costs to a project.
The former Lambton site already has access to high-voltage transmission infrastructure. The new St. Clair Transmission Line will further strengthen the area’s connection to Ontario’s electricity grid.
Access to the St. Clair River
A nuclear plant requires a dependable cooling-water source. The St. Clair River could provide an important siting advantage, although any withdrawal and discharge system would require detailed environmental examination and regulatory approval.
The river is also a binational waterway, making environmental protection and consultation particularly important.
Railway and deepwater dock
Heavy generating equipment can be exceptionally large. Rail and marine access could make it easier to transport reactor components, turbines, transformers and construction materials.
A large, properly zoned property
At approximately 1,200 acres, the property offers enough room for electricity generation, supporting infrastructure, security boundaries and potentially complementary industries.
Because the land is already associated with industrial electricity generation, redevelopment could avoid converting productive farmland or disturbing a completely undeveloped property.
An experienced regional workforce
Sarnia–Lambton already has pipefitters, boilermakers, electricians, millwrights, engineers, crane operators, welders, heavy-equipment technicians and fabrication businesses.
A nuclear project would require specialized training and strict certification, but the region would not be starting without relevant skills or industrial experience.
How a Nuclear Project Could Benefit the Local Economy
A nuclear generating station would be one of the largest economic-development projects ever undertaken in Lambton County.
Thousands of construction jobs
Lecce said that nuclear development could take approximately 10 years before producing electricity, but employment would begin much earlier through surveying, engineering, excavation, concrete work, fabrication and site preparation.
He suggested thousands of jobs could be associated with the construction stage, although a formal employment estimate will not be available until a specific project is proposed.
These jobs could support union trades, engineering companies, local fabricators, trucking businesses, equipment dealers and service companies across southwestern Ontario.
Long-term skilled employment
Construction jobs are temporary, but a nuclear station could operate for 60 to 70 years. It would require permanent operators, engineers, security personnel, maintenance trades, emergency-response teams and administrative staff.
These would generally be stable, highly skilled positions capable of supporting families and keeping younger workers in the region.
Restoration of municipal tax revenue
A major generating facility could restore a significant portion of the industrial assessment lost when the coal station closed.
The actual property-tax arrangement would depend on the facility, ownership structure and provincial rules. It would therefore be premature to promise a particular amount. Nevertheless, new industrial assessment could help St. Clair Township fund infrastructure and community services without placing the entire burden on residential taxpayers.
More business for local suppliers
The economic benefit would reach beyond workers employed directly at the station.
Local hotels, restaurants, rental companies, machine shops, construction suppliers and transportation businesses would likely see additional activity. Major projects also generate demand for housing, training, professional services and municipal infrastructure.
Attracting other industries
Perhaps the greatest long-term benefit would be the ability to attract additional employers.
Manufacturers and technology companies increasingly need large supplies of dependable, low-emission electricity. A nuclear station could make the Lambton site and surrounding industrial lands attractive for data centres, hydrogen production, advanced manufacturing and agricultural processing.
The Sarnia-Lambton Economic Partnership has already identified data centres, low-carbon hydrogen, manufacturing and value-added agriculture as industries that could benefit from greater generating capacity in the region.
What Happened to the Proposed Natural Gas Plant?
Before the latest nuclear discussion, OPG subsidiary Atura Power proposed building the Riverside Generating Station on a small portion of the former Lambton property.
The proposed facility was designed as an approximately 500-megawatt natural gas peaking plant. It would operate mainly during periods of high electricity demand or system stress.
The federal Impact Assessment Agency determined in November 2025 that no further federal assessment was required under the Impact Assessment Act. However, the project was not selected during the latest Independent Electricity System Operator procurement process.
That means Riverside did not receive the electricity contract it needed to proceed in that procurement round. Atura has said it may consider future opportunities for the project.
Importantly, the Riverside proposal would occupy only part of the property. Atura Power says it would not prevent the later addition of nuclear generation, hydrogen, solar power or energy storage.
Mayor Agar has suggested that natural gas generation could potentially be developed sooner while a longer-term nuclear project moves through consultation, environmental assessment and licensing.
A gas plant might be operational within two or three years after receiving the necessary approvals and contract. A nuclear project would likely require a decade or longer.
Could a Data Centre Still Be Part of the Site?
The nuclear discussion does not necessarily replace the data-centre possibility. In fact, dependable nuclear generation could make the area more attractive to data-centre developers.
Data centres need enormous quantities of electricity around the clock. They also require redundant power supplies, transmission capacity, fibre-optic connections and cooling systems.
A generating station and data centre could potentially be co-located, but the economics would need to be carefully examined. Ontario must ensure that residents and existing businesses are not left paying for expensive infrastructure built primarily for one private customer.
A data centre can involve billions of dollars in construction, but it generally provides fewer permanent jobs than a major manufacturing facility or nuclear generating station. The best outcome for Lambton would therefore be a balanced development that combines power generation with industries providing substantial long-term employment.
What Must Happen Before Nuclear Construction Can Begin?
Building a nuclear station involves far more than a provincial announcement.
Before construction could proceed, the project would require:
- Support from St. Clair Township and the surrounding community.
- Meaningful engagement and consultation with affected Indigenous Nations.
- Detailed geological, environmental and archaeological studies.
- Examination of cooling-water use and effects on the St. Clair River.
- Evaluation of transmission capacity and necessary grid upgrades.
- Selection of a reactor technology and generating capacity.
- A viable business case and provincial procurement decision.
- Federal environmental and impact-assessment reviews where applicable.
- Licensing through the Canadian Nuclear Safety Commission.
- Emergency planning, security arrangements and radioactive-waste plans.
OPG has stated that it will develop a project only where the host community expresses support.
Local residents should therefore have a meaningful opportunity to examine both the benefits and concerns—not simply be consulted after important decisions have already been made.
Concerns That Must Be Addressed
Nuclear power offers reliable, low-carbon electricity, but a project of this size deserves careful scrutiny.
Residents will reasonably want answers about:
- Construction cost and the effect on electricity rates
- Protection of the St. Clair River and local groundwater
- Emergency-planning zones and evacuation procedures
- Storage and transportation of radioactive materials
- Long-term management of used nuclear fuel
- Effects on nearby farms, homes and property values
- Traffic, noise and housing pressure during construction
- How many jobs will actually go to local workers
- Whether municipal tax benefits are guaranteed
- Indigenous rights, consultation and potential ownership participation
- Whether Canadian companies and workers will receive priority
These questions should not be dismissed as opposition to development. Proper scrutiny is how a community ensures that a project delivers lasting benefits rather than impressive promises.
A Rare Opportunity for Sarnia–Lambton
The closure of Lambton Generating Station removed hundreds of good jobs and approximately $2 million in annual municipal revenue. For more than a decade, the region has watched an exceptionally valuable industrial property sit largely unused.
Ontario’s latest announcement does not guarantee that a nuclear station will be built. However, it does show that the province is no longer treating the property as an abandoned chapter of Ontario’s coal era.
The site has the land, zoning, transmission access, transportation infrastructure and workforce needed to become a major energy centre again.
A properly planned nuclear project could create thousands of construction jobs, provide decades of permanent employment, restore municipal revenue and attract data centres, manufacturing, hydrogen production and other major investments.
The strongest outcome may not be a choice between a nuclear station, natural gas plant or data centre. With 1,200 acres available, the property could eventually support several complementary uses—provided development is environmentally responsible, economically sound and supported by the community.
For St. Clair Township and Lambton County, this is about more than producing electricity. It is an opportunity to replace what was lost in 2013, give local tradespeople a reason to stay and rebuild the property as one of southwestern Ontario’s most important centres of industry and energy.
The former Lambton Generating Station helped power Ontario for more than 40 years. If the planning is done properly, the same property could power the province—and the local economy—for generations to come.
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