Inside India & Canada’s Nuclear, Hydrogen & Renewables Deal

Canada and India have agreed on a wide-ranging strategic energy partnership, anchored by a C$2.6bn uranium supply agreement and new cooperation across renewables, hydrogen and critical minerals.

The deal was secured during Prime Minister Mark Carney’s visit to Mumbai and New Delhi, the first bilateral visit to India by a Canadian Prime Minister since 2018. It marks a reset in relations after several years of diplomatic strain and comes as both countries seek to diversify trade and strengthen energy security.

India’s energy demand is rising faster than any other major economy. With a population of 1.4 billion and rapid industrialisation, the country is scaling up nuclear, renewable and alternative fuels capacity to meet surging consumption while reducing emissions and import dependence.

Nuclear energy at the core

At the centre of the agreement is a long-term uranium supply contract between Saskatoon-based Cameco and India’s Department of Atomic Energy.

Under the C$2.6bn deal, Cameco will supply nearly 22 million pounds of uranium to India between 2027 and 2035, supporting fuel requirements for the country’s expanding nuclear fleet.

Cameco’s CEO Tim Gitzel said: “Cameco is proud to be a strategic partner with India to help meet its civil nuclear fuel needs and support its trade relationship with Canada. 

“India is embarking on an ambitious nuclear expansion to power its development plans and meet the future energy security needs of its people. That isn’t possible without a stable supply of uranium fuel. 

“Importantly, this demand underscores an emerging trend of sovereign buyers locking up large volumes from multiple suppliers, and in a window where demand continues to grow and available supplies continue to become more uncertain and constrained. 

“As a proven and reliable producer, Cameco is globally recognised as a nuclear fuel supplier of choice, and we are pleased to be a trusted provider for India once again.”

Indian Prime Minister Narendra Modi highlighted the scale of the agreement following talks in Delhi while speaking to reporters.

"In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors," Prime Minister Modi said.

The reference to small modular reactors and advanced reactor technologies signals a broader ambition to collaborate beyond fuel supply, potentially spanning next-generation nuclear design and deployment.

Prime Minister Modi presented the two countries as "natural partners in technology and innovation" and emphasised a bilateral agreement to enhance co-operation in supercomputing, AI and semiconductors, as well as to jointly host a renewable energy summit.

Prime Minister Carney positioned Canada as a reliable long-term supplier of nuclear fuel to support India’s clean energy transition and energy security. The uranium contract forms part of a newly launched Strategic Energy Partnership covering LNG, LPG, uranium, solar and hydrogen.

Renewables and clean fuels cooperation

Alongside nuclear, both governments signed an MoU on renewable energy cooperation between India’s Ministry of New and Renewable Energy and Canada’s Ministry of Energy and Natural Resources.

The agreement promotes technical collaboration in solar, wind, biomass, waste-to-energy, small hydropower and energy storage, as well as capacity building. Canada also announced it will begin the process of joining the International Solar Alliance, reinforcing cooperation on solar deployment.

India welcomed Canada’s decision to upgrade to full membership status in the Global Biofuels Alliance, strengthening collaboration on biofuels as part of the clean energy transition.

Hydrogen is another pillar of the partnership. Simon Fraser University and the Hydrogen Association of India signed an MoU to advance joint hydrogen research, innovation and technology development. The focus will be on academic and research collaboration to accelerate clean hydrogen solutions.

Carbon capture also features in the energy framework. A separate MoU between Saskatchewan’s Petroleum Technology Research Center and the Indian Institute of Technology Bombay National Centre of Excellence in Carbon Capture Utilization and Store Technology will support joint research, knowledge exchange and pilot projects in advanced CCUS technologies.

Critical minerals and supply chains

Energy cooperation extends to critical minerals, a sector central to both countries’ industrial strategies.

India’s Ministry of Mines and Canada’s Department of Natural Resources signed an MoU on critical minerals value chains, covering exploration, mining, processing, investment promotion and technical exchange.

Additional agreements between the Saskatchewan Research Council and Indian partners will support collaboration in critical minerals exploration, downstream processing and nonferrous metals technology development.

These arrangements are designed to diversify supply chains and secure materials essential for renewable energy systems, batteries and advanced manufacturing.

Prime Minister Carney framed the broader reset as part of a strategic shift in a volatile global environment.

“India is the fastest-growing major economy and a powerhouse of global commerce and technology. In a rapidly changing world, Canada and India are transforming their economies to be more diversified, more independent, and more resilient,” he said. 

“Our strategic partnership, and the speed at which we are working to unleash its potential in energy, talent, and AI, is the result of two confident, ambitious nations who want to build the future, together.”

LNG, LPG and energy trade

Beyond nuclear and renewables, the two governments committed to intensifying engagement on liquefied petroleum gas with the aim of concluding Canada’s first long-term LPG arrangement with India.

LNG also forms part of the Strategic Energy Partnership, reflecting India’s growing gas demand as it seeks to increase the share of natural gas in its energy mix.

The energy agreements sit within a broader trade framework. Both sides confirmed that negotiations toward a Comprehensive Economic Partnership Agreement will conclude by the end of 2026, with the ambition of significantly expanding bilateral trade.

“Our target is to reach $50bn in bilateral trade. This is why we have decided to finalise a comprehensive economic partnership soon,” Modi said.

Energy and resources are expected to play a central role in achieving that target, alongside technology and manufacturing.

Investment and industrial expansion

The visit also produced a series of commercial agreements linked to energy and industrial development.

Elk Valley Resources of British Columbia signed MoUs with multiple Indian steel producers to discuss new sales of 1.2 million tonnes of metallurgical coal worth approximately C$285m.

Metal7, a Canadian industrial technology company, secured approximately C$30m in confirmed orders in India, with deliveries scheduled throughout 2026.

In clean technology and infrastructure, Montréal-based Ovivo won an order to supply grit removal systems and associated equipment for a wastewater treatment plant in Madhya Pradesh.

These agreements contribute to more than C$5.5bn in commercial partnerships announced during the visit, spanning energy, mining, manufacturing and technology.

Talent, skills and innovation

Talent is a central pillar of the renewed Canada–India partnership. With more than 1.8 million Canadians of Indian origin, both governments are scaling academic and research collaboration through the new Canada–India Talent and Innovation Strategy, which includes 13 university partnerships and a Dalhousie innovation campus with IIT Tirupati and IISER Tirupati.

Mobility is a core focus. The framework provides 300 funded Indian student researcher positions, while the University of Toronto has committed up to C$100m for as many as 200 fully funded scholarships for Indian students, alongside outbound opportunities for Canadians. A further C$10m under Canada’s Indo-Pacific Strategy will support more than 85 Canadian graduate students and researchers in India.

In advanced technology, Jubilant Bhartia-McGill will establish a Centre of Excellence in AI Education and Research, training 200 graduates annually. Additional AI-focused agreements link the University of Toronto with the Indian Institute of Science and Jio Institute, strengthening joint research, faculty exchange and industry collaboration.

Energy security in a shifting landscape

The rapprochement follows years of strained diplomatic ties. Trade and visa services were previously curtailed amid tensions over security allegations, but both governments have moved to rebuild engagement.

Analysts note that geopolitical shifts, including exposure to US trade tariffs and volatility in global energy markets, have encouraged both countries to diversify partnerships.

India is seeking to reduce reliance on Russian energy imports and expand domestic clean generation. Canada, as a major producer of uranium, LNG and critical minerals, offers supply security aligned with India’s growth trajectory.

Prime Minister Carney highlighted the pace of renewed engagement.

"There has been more engagement between the Canadian and Indian governments in the last year than there has been in more than two decades combined," he said.

With uranium deliveries scheduled to begin in 2027 and negotiations on trade and LPG supply ongoing, the partnership now moves from political agreement to implementation across nuclear fuel supply, renewable deployment and critical minerals development.