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Representatives from six communities celebrate the announcement of Inuvialuit-led infrastructure that will support a more reliable and affordable energy supply. (Back row from left to right): John Lucas Jr., Sachs Harbour Community Corporation; Colin Okheena, Ulukhaktok Community Corporation; Jordan McLeod, Aklavik Community Corporation; Melinda Gillis, Inuvik Community Corporation; Darrel Nasogaluak, Tuktoyaktuk Community Corporation. (Front row): Duane Smith (Chair and CEO, Inuvik Regional Corporation) and Hillary Thatcher (Canada Infrastructure Bank). (CNW Group/Canada Infrastructure Bank)
Inuvialuit Energy Security Project Ltd. and the Canada Infrastructure Bank (CIB) have announced financial close on a $100 million loan towards a community-driven solution to enhance energy security and reliability in the Inuvialuit Settlement Region (ISR).
The Inuvialuit-led M-18 well development project involves the construction of a new plant to produce natural gas and synthetic diesel to secure a supply of fuel for energy, heating and transportation for local use.
The project will reduce reliance on transporting liquefied natural gas and synthetic diesel from southern regions, thereby enhancing local energy security, reducing transportation emissions and providing economic benefits for the ISR, explained CIB in a statement.
Based on current consumption rates, the well is expected to provide a stable supply of natural gas and synthetic diesel to meet the energy needs of the ISR for over 50 years, reducing energy costs for households and businesses and improving living conditions while supporting community growth.
An excavator clears snow and dirt from the project site. (CNW Group/Canada Infrastructure Bank)
The project is expected to reduce up to 40,000 tonnes of emissions annually and has been developed in a way that respects the northern environment and its inhabitants. The project, which has a total budget of $293 million, will be managed and operated in accordance with the Inuvialuit Final Agreement (IFA) and relevant territorial and federal regulations concerning technical, environmental, and safety standards.
“The CIB is proud to invest in an Inuvialuit-led solution to enhance energy security and affordability in some of the most northern, remote regions of Canada,” stated Ehren Cory, CEO of Canada Infrastructure Bank. “Our loan supports the IRC as they advance construction of this critical infrastructure to improve energy affordability, reliability and create employment opportunities for Inuvialuit.”
“The Inuvialuit-led initiative will enhance local energy security, reduce costs for households, create long-term job opportunities, and support economic growth,” added Canada’s Minister of Housing, Infrastructure and Communities, Nathaniel Erskine-Smith.