Innergex Renewable Energy and Pituvik Landholding Corporation have secured a $92.8m non-recourse construction and term project financing for the Innavik hydro project in Canada.
The financing has been secured from The Manufacturers Life Insurance Company.
Located near Inukjuak, Nunavik in northern Quebec, Canada, the Innavik project is a 7.5MW hydroelectric facility on the Inukjuak River.
Pituvik president Sarah Lisa Kasudluak said: “Reaching financial close for the Innavik Project initiated by our community in 2008 in order to reduce local greenhouse gas emissions is a historic achievement.
“Being able to secure substantial funding demonstrates how, through self-determination, we can carry out projects with significant social, environmental and economic benefits for our people.”
Construction of Innavik hydro project to cost $127.8m
The total cost for the construction of the project is estimated to be around $127.8m and it will be mainly financed through the construction loan secured from The Manufacturers Life Insurance Company.
The remaining construction cost of $35m will be financed by Innergex and Pituvik.
Upon entering into commercial operations in December 2022, the Innavik hydro project will deliver produced electricity to Hydro-Québec Distribution under a 40-year power purchase agreement.
After the project reaches its commercial operation which is in December 2022 it will carry a fixed interest rate of 3.95%. The loan term for 40 years has been set to match the duration of the 40-year power purchase agreement signed with Hydro-Québec Distribution.
The other $35m required for the project will be financed by Innergex and Pituvik.
Construction of the Innavik project, which is expected to be able to produce a gross estimated long-term average of 54.7 GWh, is underway.
Innergex stated: “The Innavik Project is the first partnership between an Inuit corporation and an independent power producer.
“This innovative project will provide customers of Inukjuak’s off-grid system with clean and renewable energy, replacing diesel for their basic electricity and heating needs.”
