Federal government invests $6M into Iqaluit hydro project
The federal government is investing another $6 million into a once-stalled hydro project near Iqaluit that could help the city reduce its reliance on diesel-generated power.
Crown-Indigenous Relations and Northern Affairs Minister Gary Anandasangaree made the announcement in the lobby of the Aqsarniit Hotel in Iqaluit early Tuesday afternoon.
The funding is flowing to the Nunavut Nukkiksautiit Corporation (NNC), an Inuit-owned clean energy developer, for its Iqaluit Nukkiksautiit Project which – once built – would be a 15- to 30-megawatt traditional water power plant.
Nunavut Nukkiksautiit Corporation identified the Kuugaluk River (McKeand River South), 60 kilometres northwest of Iqaluit, as a possible site for the project after doing community consultations in 2023.
The money announced Tuesday is earmarked for engineering and design work on the project, including gathering field data, developing financial models and talking to the public about it. A news release from CIRNAC said a funding agreement must be signed for the money to start flowing.
The project was previously under the territorial government's Qulliq Energy Corporation (QEC). It was put on hold in 2014 due to the high capital costs, which went beyond QEC's funding and borrowing ability.
Since then, the NNC has taken over the project.
As of last fall, the project's price tag was between $400 and $500 million.
Crown-Indigenous Relations and Northern Affairs Canada says it already invested $7 million into the hydroelectric project back in 2021 to understand whether the project would be feasible.
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