Canada announces $1B in funding for New Brunswick power

Key Takeaways:

• The Government of Canada announced over $1 billion in funding to expand New Brunswick’s clean electricity capacity. This includes support for Indigenous-led wind projects, a coal-to-biomass conversion of the Belledune Generating Station, and the development of small modular reactors (SMRs) at Point Lepreau Nuclear Generation Station.
• Substantial funding is directed toward Indigenous communities, including $1 billion for wind projects and $25 million for the Neweg Energy wind project in partnership with the New Brunswick Mi’kmaq First Nations. Additionally, $500,000 is allocated for technical support to seven Mi’kmaq Nations in New Brunswick to enable participation in clean energy initiatives.
• The federal and provincial governments are collaborating on Clean Electricity Regulations and other initiatives to decarbonize New Brunswick’s energy system while ensuring reliability and affordability. These efforts aim to create jobs, foster economic growth, and position the province for a net-zero future.

The Whole Story:

The Government of Canada has announced over $1 billion in additional investments to ensure that as New Brunswick’s electricity demands grow substantially over the coming years, the province meets demand with clean electricity that is both reliable and affordable. NB Power estimates the following investments could help power up to 140,000 homes.

Officials noted that currently more than 80% of Canada’s electricity is generated from clean sources like hydropower, wind, solar, and nuclear – and it’s a big part of the reason why companies are choosing to invest in Canadian workers and business.

The investment details include:

• Up to $1 billion in federal support for up to 670 megawatts of Indigenous-led wind projects through the Canada Infrastructure Bank (CIB) Clean Power priority sector and Indigenous Equity Initiative as well as Natural Resources Canada’s Smart Renewables and Electrification Pathways program (SREPs).
• $25 million from SREPs for the 25-megawatt Neweg Energy wind project, a partnership with the New Brunswick Mi’kmaq First Nations.
• $500,000 to the North Shore Mi’kmaq Tribal Council to provide seven Mi’kmaq Nations in New Brunswickresources and technical support and enable direct participation in clean energy opportunities.
• A commitment from Canada to work with New Brunswick and NB Power to support the conversion of the Belledune Generating Station from coal-fired power to biomass.
• $1.6 million from Atlantic Canada Opportunities Agency (ACOA) to further investigate the conversion through engineering and planning studies, this is in addition to a previously announced $2 million from ACOA to evaluate different biomass fuel options.
• $25 million to NB Power for predevelopment work for up to 600 megawatts in new small modular reactor (SMR) capacity at the Point Lepreau Nuclear Generation Station through NRCan’s Electricity Predevelopment Program.
• $1.3 million to NB Power for predevelopment work on the modified Atlantic Loop transmission line between New Brunswick and Nova Scotia through NRCan’s Electricity Predevelopment program.

The Ministers also announced that the Government of Canada and the Government of New Brunswick have reached a common understanding on the forthcoming Clean Electricity Regulations that will provide the flexibilities needed to enable New Brunswick’s electricity system to grow and decarbonize all while ensuring it will be affordable, reliable, and non-emitting.

The federal and provincial governments, in collaboration with First Nations partners, have already been partnering through the New Brunswick Regional Table to identify and accelerate shared economic priorities for a net-zero future in the province’s energy and resource sectors. Investments announced today demonstrate the commitment to continue to collaborate and to take action to grow and decarbonize the electricity grid.

“Canadians are leaders in generating clean electricity that powers our communities and beyond,” said Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources. “Today’s shared commitment with New Brunswick is a clear signal that investing in clean electricity in New Brunswick creates jobs, drives economic growth, and positions New Brunswickers to take advantage of the economic opportunities presented by the clean economy, now and into the future. The federal government is a partner as we build a 21st century economy, underpinned by a clean electricity system, that places affordability and reliability at its core.”