The Canadian government has signed a preliminary agreement worth more than CAD300m with nuclear engineering company AtkinsRéalis to support the development and modernisation of a new Canada-designed nuclear power reactor called Monark.

The government said in a statement that it intends to lend AtkinsRéalis a maximum of CAD304m ($211, €195m) over four years to finance half of the design project.

The agreement will see both sides co-finance up to half of the design costs, to a maximum of $304m each.

This work will also include Atomic Energy of Canada Limited, the country’s nuclear operators and the broader Canadian supply chain. AECL owns the intellectual property for Candu nuclear power plants and is working with AtkinsRéalis to use it for today’s energy markets.