CIB lending $108.3M for new wind project in Gespe'gewa'gi

Globe and Mail

a day ago

102.2-megawatt wind farm to deliver clean power and economic benefits
Disponible en français
CIB supporting wind energy project with first Indigenous equity loan in Quebec
Mi'gmaq communities to co-own 50% of the project with Innergex Renewable Energy
Will create 150 construction jobs and sufficient electricity to power 20,000 homes
MONTREAL , June 10, 2025 /CNW/ - The Canada Infrastructure Bank (CIB) is investing $108 .3 million, including its first Indigenous equity loan in Quebec , to support construction of the 102.2-megawatt Mesgi'g Ugju's'n 2 Wind Farm (MU2), located in Gespe'gewa'gi, also known as the Gaspésie–Îles-de-la-Madeleine region.
The project is a partnership between Mi'gmawei Mawiomi Business Corporation (MMBC), representing the Gesgapegiag, Gespeg and Listuguj Mi'gmaq communities and Innergex Renewable Energy Inc. (TSX:INE).
The CIB's $15 .8 million equity loan improves the economic viability of MMBC's participation in the project, and the remaining $92 .5 million is dedicated to the project construction. The project was the only one from two provincial tenders for 780-megawatt blocks of renewable energy to include an Indigenous community partner as a sponsor.
Additional financing to the project includes a $163 .9 million green loan, a $41 million construction bridge loan and a letter of credit facility from CIBC, Desjardins and National Bank of Canada.
The MU2 project is expected to generate approximately 150 direct construction jobs, with a commitment to hire at least 30% of the workforce from local Mi'gmaq communities. Revenues will be reinvested into community initiatives.
The wind farm will be located on the Mi'gmaq traditional territory of Gespe'gewa'gi, near Rivière- Nouvelle . It will be developed adjacent to the 150-megawatt Mesgi'g Ugju's'n Wind Farm (MU1), also a 50/50 partnership between the Mi'gmaq communities and Innergex.
MU2 will feature Nordex turbines, generating enough electricity to power 20,000 Quebec homes through a 30-year power purchase agreement with Hydro- Quebec . The project is expected to cut emissions by 153,053 tonnes annually and supports the public utility's Electricity Supply Plan, which forecasted a 12% rise in demand between 2019 and 2029.
Operations are expected to begin in late 2026.
Endorsements:
With our first investment in a Quebec wind energy project, the CIB is helping another province expand its clean electricity production and expand the capacity of its grid. This aligns with our mandate to support meaningful Indigenous economic and social development while investing in clean power opportunities.
Ehren Cory , CEO, Canada Infrastructure Bank
This project is about building—building clean energy, good jobs and stronger communities. Through this investment, the Mi'gmaq will advance clean energy, help power homes and secure long-term benefits through community ownership.
Hon. Gregor Robertson , Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
We are proud to reach financial close on Mesgi'g Ugju's'n 2 and to continue advancing a project that is deeply rooted in collaboration, sustainability and regional economic impact. We thank MMBC and the Mi'gmaq communities for their continued trust and partnership. This project is a powerful example of how strong Indigenous-led partnerships and clean energy development go hand in hand to generate economic and environmental value.
Michel Letellier , President and Chief Executive Officer of Innergex
MU2 reflects the maturity and determination of our communities to lead impactful energy development on our own terms. This partnership with Innergex and the support from the CIB demonstrate that Indigenous-led projects can be scalable, bankable, and rooted in long-term vision. It's a model we're proud of—one that delivers real value to our people and contributes to the Gespe'gewa'gi and Quebec's clean energy future. We would also like to take the opportunity to thank our advisers, Plan A Capital and Stikeman, who were instrumental in the success of this transaction.
Frederic Vicaire , CEO of MMBC
About Mi'gmawei Mawiomi Business Corporation
The Mi'gmawei Mawiomi Business Corporation is the economic development arm of the Gesgapegiag, Gespeg and Listuguj communities. MMBC drives sustainable resource development, services and knowledge-based ventures to improve employment and economic security. Learn more at http://mmcorporation.ca/.
About Innergex Renewable Energy Inc.
For 35 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada , the United States , France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 91 operating facilities with an aggregate net installed capacity of 3,737 MW (gross 4,693 MW), including 42 hydroelectric facilities, 36 wind facilities, 10 solar facilities and 3 battery energy storage facilities. Innergex also holds interests in 16 projects under development with a net installed capacity of 915 MW (gross 1,547 MW), 5 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totaling 10,288 MW. Its approach to building shareholder value is to generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital. To learn more, visit innergex.com or connect with us on LinkedIn.