Construction begins on new Central Heating Plant at 5 Wing Goose Bay

The Government of Canada held a groundbreaking ceremony to mark the start of construction of a new Central Heating Plant at 5 Wing Goose Bay (NL). 

This plant will give the Wing reliable, lower-cost heat powered by Labrador’s hydroelectricity. 5 Wing Goose Bay supports North American Aerospace Defense Command (NORAD) operations and Canadian Armed Forces activity across the Arctic and North.

“Canada is moving with speed and purpose to defend and build the North. That work depends on strong bases like 5 Wing Goose Bay. Today, we begin building the modern, reliable infrastructure the women and men who serve there rely on. This is what rebuilding, rearming and reinvesting in the Canadian Armed Forces looks like,” said David J. McGuinty, Minister of National Defence.

In December 2025, the Government of Canada awarded a $187-million Energy Performance Contract (EPC) to MCW Custom Energy Solutions Ltd. to modernize infrastructure at 5 Wing. The new Central Heating Plant is the cornerstone of the EPC. It will move the Wing off diesel heating and onto Labrador’s electrical grid.

 “Labrador’s essential contribution to 5 Wing Goose Bay is also an essential contribution to Canada’s northern sovereignty. Our government is making the generational investments needed so Canada remains prepared, present, and resilient in the North,” said Philip Earle, MP for Labrador, Newfoundland and Labrador.

To support this transition, the Department of National Defence (DND) secured an additional 20 megawatts of electrical capacity from Newfoundland and Labrador Hydro. The project will also include upgrades to control systems and utility metering infrastructure. 

The EPC is expected to reduce the Wing’s energy costs by 77 per cent, generating approximately $8.6 million each year., It will also lower GHG emissions by 94 per cent from current levels, a reduction of roughly 19,000 tonnes per year. The project is anticipated for completion by December 2030.

“This historic investment advances Canada’s Net Zero goals while strengthening Arctic sovereignty and operational reach by leveraging Industry partners. Defence Construction Canada’s efficient procurement and contract management processes support the Department of National Defence as we find new and innovative ways to reduce energy use and emissions and improve long-term resilience of critical infrastructure across Canada and in the North,” said Derrick Cheung, president and CEO, Defence Construction Canada.