Thursday, November 18, 2010

Newfoundland and Nova Scotia strike $6.2 billion CAD hydro deal

The premiers of Newfoundland and Labrador and Nova Scotia today announced a $6.2 billion CAD deal to develop the Lower Churchill hydroelectric megaproject.

The details of the deal for the Lower Churchill project follow below:

Development cost: $6.2 billion
Size: 834 megawatts
Jobs: 2,700 at peak; 120 permanently
Share of assets: Nalcor 51% and Emera 49%
Contract term: 35 years
Requiring: Ratification of Innu Nation land claim
Sought: Federal loan guarantee; $375 million toward subsea link
What Nalcor will pay for subsea link in 2045: $1

Emera (Nova Scotia) will receive about 20% of that energy for itself, and in return is paying for the construction of the underwater link. Nalcor (Newfoundland and Labrador), which is reserving 40% of the power for its own use, will raise $4.4 billion to pay for its share.

The deal still leaves undeveloped the 2,200 megawatt potential of the Gull Island site on the Churchill River, which has been on blueprints since the 1970s.

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