Inuit-led Hope Bay Wind Project in Nunavut receives $20 million CIB loan

The Canada Infrastructure Bank (CIB) announced financial close on a $20 million project loan to the Kitikmeot Tugliq Limited Partnership (KTLP), an Inuit-led partnership between the Kitikmeot Inuit Association (KitIA) and Tugliq Energy, to advance the Hope Bay Wind Project.

The project is a renewable energy initiative that will supply power to Agnico Eagle Mines Limited’s (Angico Eagle) Hope Bay operation in Nunavut’s Kitikmeot Region.

“The Hope Bay Wind Project will deliver lasting economic benefits, create new career opportunities in the Kitikmeot Region and reduce reliance on diesel in the Arctic. It’s a strong example of how infrastructure can help advance economic reconciliation and meet our shared aspiration to decarbonize electricity supply,” said Ehren Cory, CEO, Canada Infrastructure Bank.

Located adjacent to the Hope Bay mine, the renewable energy project includes a 4.2-megawatt wind turbine and a 4-megawatt battery energy storage system to support operations at one of Canada’s northernmost mines, which recently achieved a positive investment decision.

Under a long-term power purchase agreement with Agnico Eagle, the project will support Inuit participation, skills development and economic opportunities in one of Canada’s most remote regions.  

The wind energy and storage system is expected to reduce diesel-based electricity generation by up to three million litres annually and improve energy security. Electricity generated will be integrated into the mine’s conventional energy system to help power construction and mining operations, lowering direct and indirect emissions by approximately 13,000 tonnes annually and reducing fuel transportation in the Arctic.  

“The partnership between Kitikmeot Corporation and Tugliq Energy is not only about transitioning energy use from conventional diesel to alternative wind energy, it is also a partnership intended to grow the Inuit labor market with new skills along with increased investment in Hope Bay and the Kitikmeot Region. We believe this is the start of greater investment and economic impacts within the region for years to come,” said David Omilgoitok, president and CEO, Kitikmeot Corporation.

The CIB’s loan helps address the significant upfront capital costs associated with the buildout of clean energy infrastructure in northern and remote regions and complements a $25 million contribution from Natural Resources Canada through the Smart Renewables and Electrification Pathways program.  

The investment marks the CIB’s second project in Nunavut, following its $6.7 million loan towards Anuriqjuak Nukkiksautiit Wind in Sanikiluaq, further advancing Indigenous-led infrastructure and clean energy development across the territory.

Featured image: (CIB)