US$ 6.1 billion hydroelectric project in Canada approved
24 November 2010
The Canadian government of Newfoundland and Labrador has given the green light to a CA$ 6.2 billion (US$ 6.1 billion) investment in developing hydropower generating facilities as Muskrat Falls.
Nalcor Energy, owned by the Newfoundland authorities, and privately-owned Emera subsidiary Nova Scotia Power have entered into a partnership agreement to invest in the Lower Churchill hydroelectric project.
Emera will invest over US$ 1.2 billion, or 20% of the overall capital cost of the entire project, and will be responsible for 20% of its operating costs for the 35-year life of the contract.
Nalcor will invest US$ 2.8 billion to build hydropower generating facilities and US $2 billion to build the transmission link from Labrador to the island of Newfoundland.
As an additional investment, Emera will also put US$ 587 million towards a sub-sea cable link in exchange for transmission rights in Nova Scotia, New Brunswick and New England.
The total cost of the project will be approximately US$ 6.1 billion and Muskrat falls is projected to produce 824 mW of power.
The generating station at Muskrat Falls will be 100% owned and operated by Nalcor Energy,
total transmission systems - the Labrador Transmission line, the Labrador-Island Link and the Maritime Link - will be majority owned by Nalcor Energy (51%) and minority owned by Emera.
The government of Newfoundland and Labrador said the construction of the Muskrat Falls hydroelectric facility would mean that the province's electricity system would run on 98% renewable, emission-free energy.
Danny Williams, Premier of Newfoundland and Labrador said the benefits of this project for the province would be "enormous".
"From day one, our government has taken a long-term, strategic approach to developing this project".
Development of the Lower Churchill basin has been a goal of the Newfoundland and Labrador government since the 1970s.
And this is just the first phase of a mega project which will also see the development of a second, 2250 mW plant on nearby Gull Island - a project which is expected to start several years after Muskrat Falls.
