The Government of Canada, the Northwest Territories Power Corporation (NTPC) and the Government of the Northwest Territories (GNWT) are investing in local energy infrastructure that will strengthen energy security, support economic development, and improve the quality of life for residents and businesses in Fort Simpson.
The Government of Canada is contributing more than $31.3 million through the Investing in Canada Infrastructure Program's (ICIP) Arctic Energy Fund, while the NTPC is contributing more than $10.4 million toward a new liquefied natural gas power plant. The GNWT has provided key funding applications and prefeasibility studies to evaluate technical and economic viability to ensure requirements are met and appropriately considered.
The existing diesel plant in Fort Simpson has become vulnerable to erosion along the Mackenzie River and is nearing the end of its operational life. To address these challenges, the project will support the construction of a combined generation facility that will primarily generate power using liquefied natural gas (LNG). The new power plant will include two 1.6 MW liquefied natural gas (LNG) generation units and two backup diesel generation units. The plant is forecast to run on 90% LNG. The new facility will also include an LNG storage and vaporization facility, a bi-fuel boiler for heating purposes, bulk diesel fuel storage, a substation, and associated auxiliary equipment. The backup diesel generators from the existing plant will be relocated to the new facility.
The new plant will help reduce reliance on diesel generation, improve energy reliability and energy security, and support a cleaner energy future, with an expected reduction in greenhouse gas (GHG) emissions, a part of the GNWT's priorities under its 2030 Energy Strategy.
Reliable and efficient energy infrastructure is critical to supporting economic development, community well-being, and long-term sustainability in northern and remote communities. This project will provide Fort Simpson with modern power infrastructure designed to meet the community's energy needs for years to come.
