Department of National Defence to invest up to $8B at NL’s 5 Wing Goose Bay

The Government of Canada announced significant long-term investments at 5 Wing Goose Bay of up to $8 billion as one of Canada’s NORAD northern basing infrastructure (NNBI) sites.

As part of the announcement, Joanne Thompson, Minister of Fisheries said the government has awarded a $187 million (Energy Performance Contract) EPC to upgrade infrastructure at 5 Wing Goose Bay, Newfoundland and Labrador.

The 5 Wing Goose Bay EPC, awarded to MCW Custom Energy Solutions Ltd., will focus on modernizing the Central Heating Plant by replacing diesel systems with electric boilers, leveraging Labrador’s clean hydroelectric grid for greener, more efficient energy. Additional upgrades will include enhancements to control systems and the installation of utility metering.

“These Energy Performance Contracts deliver results. They modernize the infrastructure our forces depend on, cut emissions, and reduce operating costs. At the same time, they strengthen the readiness and resilience of the Canadian Armed Forces, including our ability to support critical continental defence missions through NORAD. This is a practical, forward-looking investment in our military capability and in Canada’s commitment to a secure and sustainable future,” said David J. McGuinty, Minister of National Defence.

These upgrades are expected to reduce energy costs at the Wing by approximately $8.6 million annually, a 77 per cent reduction, and lower greenhouse gas (GHG) emissions by roughly 19,000 tonnes per year, representing a 94 per cent reduction from current levels. Construction will begin in May 2026, with completion anticipated by December 2030.

“5 Wing Goose Bay is central to Canada’s defence strategy. This investment of up to $8 billion will modernize that base and tap into the province’s clean energy grid to do it more efficiently. Newfoundland and Labrador is essential to defending Canada’s sovereignty and this investment reflects that,” added Thompson.

The NNBI plan, valued at $32 billion, will include improvements to airfields, operational facilities, and support infrastructure at key northern sites, including Inuvik, Iqaluit, Yellowknife, and Goose Bay. NNBI will enable rapid mobilization to the Arctic and the North in support of NORAD missions and will provide additional capacity to support CAF operations. Planning is still in the early stages, though it is expected that each of these four sites will evolve over time. Where feasible, community needs will be considered as well.

“Energy Performance Contracts unlock significant opportunities to reduce energy use and emissions while modernizing defence infrastructure. Defence Construction Canada, alongside our industry partners, is committed to supporting the Department of National Defence by bringing specialized procurement and contract management expertise to these initiatives, ensuring efficient delivery and long-term value,” said Derrick Cheung, President and Chief Executive Officer, Defence Construction Canada.

Featured image: (Government of Canada)