Innergex Renewable Energy Inc., the Pituvik Landholding Corporation, and Hydro-Québec are proud to announce the construction of a 7.5-Megawatt (MW) run-of-river hydroelectric generating station on the Inukjuak River near Inukjuak, Nunavik, in northern Québec. This innovative project will provide customers of Inukjuak’s off-grid system with clean and renewable energy.
“We are proud of our partnership with Innergex and Pituvik. The Innavik Project is a key factor in the energy transition strategy for our off-grid systems. This is a win-win situation for the people of Inukjuak, for Hydro-Québec, which will reduce its operating costs, and for Quebecers as a whole, thanks to the significant reduction in GHG emissions,” said Éric Filion, President of Hydro-Québec Distribution.
The Innavik Project, an initiative of Pituvik, is in line with Hydro-Québec’s strategy to convert off-grid systems to cleaner and less costly energy sources. This structuring project will meet the community’s growing long-term energy needs while acting as a lever for sustainable development.
“Switching to hydropower will enable us to replace diesel and reduce greenhouse gas emissions for our basic electricity and heating needs, while saving on fuel costs,” said Eric Atagotaaluk, President of Pituvik. “This is good for the planet and the newly-available green electricity will bring sustainable development opportunities for our community.”
Innergex will oversee the construction and operation of the 7.5-MW run-of-river generating station, a project valued at approximately $125 million, with Pituvik as a 50 per cent partner.
The project will reduce hydrocarbon consumption by over 80 per cent and greenhouse gas emissions by 700,000 tonnes over 40 years.
A 40-year Power Purchase Agreement (PPA) was signed with Hydro-Québec. The PPA provides for the payment of a fixed annual amount in return for guaranteed contracted energy and capacity. The PPA will be submitted to the Régie de l’énergie for approval in 2019.
The project will result in annual reductions of 20 per cent in Hydro-Québec’s operating costs. The projected adjusted EBITDA for the Innavik Project’s first full year of operation is approximately $9 million.
The Innavik Project will be a catalyst for growth in this Inuit community of 1,800 on the coast of Hudson Bay. It will create local jobs during construction and operation while enabling economic diversification. The revenue generated by the facility will enable the community to set up local support programs for youth and elders, to develop local initiatives to improve social well-being in the community, and to support entrepreneurship. Thanks to the Innavik Project, the community could also benefit from a renewable energy-powered greenhouse that will improve food security.
Site preparation should begin in the fourth quarter of 2019 and construction will follow in 2020. The generating station should begin serving the community toward late 2022.
