A transformative Inuit-led project is planning to deliver renewable energy and high-speed Internet to remote northern communities in the Kivalliq region of Nunavut. The Kivalliq Hydro-Fibre Link project will help advance Canada's transition to a low carbon future while protecting the land and water, unlocking economic opportunities in the region and improving the health and wellbeing of Nunavummiut.
The Honourable Dan Vandal, Minister of Northern Affairs, CanNor and PrairiesCan, announced today that the Kivalliq Hydro-Fibre Link project is receiving $7 million in funding from Canada's Northern REACHE Program to help advance the project. The federal government remains committed to supporting Inuit in further advancing this nation-building green infrastructure project. This funding builds on previous Government of Canada funding of $4.6 million for technical and feasibility assessments through the Canadian Northern Economic Development Agency (CanNor). The Canadian Infrastructure Bank is also providing important advisory services in support of the project's development activities.
Led by Nukik Corporation, the project proposes a new 1,200-kilometre overhead hydroelectric transmission line between the Gillam, Manitoba area and the Kivalliq region that will help five communities and two gold mines transition away from polluting and costly diesel. This clean energy initiative will improve local air quality, reduce greenhouse gas emissions by 371,000 metric tons annually and displace 138 million litres of fuel per year, enable Nunavut to meet its 2030 GHG emissions reduction target, and save the region money.
Many communities in the North continue to rely on diesel for electricity and heat, which is costly, polluting, and contributes to climate change. Northern REACHE supports Indigenous and northern communities' transition away from diesel fuel for electricity and heating by supporting and funding for renewable energy technologies such as solar, wind, hydroelectricity and biomass heating.
As Nunavut's first-ever infrastructure link to the rest of Canada, the project will also create access to affordable broadband service for 10,000 residents; modernize the region's telecommunications systems; and enable future economic development, including e-business, tele-healthcare and educational opportunities. The project will also create jobs from its construction and operation and be the catalyst of generational socio-economic opportunities for the region once completed in 2030, contributing $3.2 billion to Canada's GDP during construction and generating an estimated $8 billion in revenues over 50 years.
In the recent 2022 Fall Economic Statement, the Government of Canada continues to move forward in making life more affordable for Canadians and taking bold climate action to lower energy costs and reduce pollution. This includes launching the new Canada Growth Fund, bringing in new investments required to reduce our emissions and grow our economy. The Government of Canada will also introduce major investment tax credits for clean technologies and clean hydrogen that will help create good jobs and make Canada a leader in the net-zero transition.
