NL, QC and Canada announce the single-largest clean energy investment in North American history

econext welcomes today’s announcement of a Definitive Cooperation and Implementation Agreement between Newfoundland and Labrador, Québec and Canada on the future of the Churchill River.

We congratulate the governments of Newfoundland and Labrador, Québec, and Canada, and also commend Hydro Québec and NL Hydro, on the work required to reach this agreement. The proposed development of Gull Island, onshore wind generation in Labrador, and expanded transmission and enabling infrastructure represent a significant, historic opportunity to grow clean electricity in the province and support future economic development.

The project has been designated as a “project of national significance” and will be referred to the federal Major Projects Office (MPO).

With energy demand growing across the country and around the world, we are pleased to see the province’s significant renewable resources recognized on the federal scale from the following announcements.

Scale of Investment

The largest clean energy investment in North American history, with nearly $70 billion being invested on a suite of hydro, wind and transmission developments.
NL will retain 2,350 MW of hydropower in addition to 400 MW of onshore wind energy, totaling 2,750 MW.
$3.5 billion in federal investment support for NL through financial support, investments and tax credits supporting the Labrador Wind Project, Labrador West Transmission Line, Gull Island and Churchill Falls upgrades.

Churchill River

Construction of a new 2,700 MW hydroelectric facility on Gull Island. The project is expected to be online between 2036-2037 and is expected to produce about 12 TWh in power.
The referral of the Gull Island, Churchill Falls upgrades, and Labrador transmission projects to the Government of Canada’s MPO, which will coordinate federal financing and permitting requirements.
The federal government will provide a loan guarantee for costs related to Gull Island, and offer $1.5 billion of value in support for Gull Island, Churchill Falls and transmission.
Federal support to expand and extend the lifetime of the existing Churchill Falls 11 turbine units (with one turbine expected to come online each year) to increase capacity by 1,275 MW.

Transmission

The commitment to build the Labrador West Transmission line with $1 billion in federal support, investments, and Investment Tax Credits (ITCs), opening up economic possibilities for development, particularly within mining and critical minerals.
NL will maintain optionality in how its allotted power from the Churchill Falls base power plant is deployed, with the choice to either keep power for its own industrial development or to sell it.
The commitment to 985 MW of guaranteed transmission to US markets through the Champlain Hudson Power Express (CHPE) and the New England Clean Energy Connect (NECEC).
Greater transmission access provides more flexibility to develop and market renewable energy generation, including wind, while giving the province a stronger connection to electricity markets.

Wind Energy

The inclusion of an adjoining Labrador Wind Project leverages the province’s established hydroelectric system to establish 2,000 MW of onshore wind development at Churchill Falls.
This project is made possible with support from Canada taking a 40% equity position, valued at $1 billion. The federal government will guarantee the financing for Gull Island under the MPO, and aims to co-invest alongside the Innu Nation in the onshore wind project.

Community Benefits

Approximately 23,000 jobs during construction for NL and Québec.
Guarantee that 85% of all person-hours of employment involved in constructing Gull Island will stay within NL, with priority given to Labrador Innu, Labradorians, and Newfoundlanders, in that order.
It is estimated that as many as 5,000 workers will be employed at the Gull Island site during peak construction.
NL will introduce a 15% “Churchill River Electricity Rebate” upon agreement finalization for all ratepayers in the province on their first 2,000 kWh of electricity usage per month, a measure that will save ratepayers an average of $351 per year.
These projects are expected to contribute $31 billion to Canada’s GDP by 2040.

Critical Minerals

The referral of the “Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor” to the Major Projects Office (MPO) for coordinated federal review and financing.
$20 million from the federal government to support feasibility work for mining-enabling infrastructure through the First and Last Mile Fund (FLMF).

Going Forward