Innergex Renewable Energy Inc. (TSX: INE) ("Innergex"), the Pituvik Landholding Corporation ("Pituvik") and Hydro-Québec are proud to announce the construction of a 7.5-MW run-of-river hydroelectric generating station on the Inukjuak River near Inukjuak, Nunavik, in northern Québec (the "Innavik Project"). This innovative project will provide customers of Inukjuak's off-grid system with clean and renewable energy.
The Innavik Project, an initiative of Pituvik, is in line with Hydro-Québec's strategy to convert off-grid systems to cleaner and less costly energy sources. This structuring project will meet the community's growing long-term energy needs while acting as a lever for sustainable development.
Project highlights
- Innergex will oversee the construction and operation of the 7.5-MW run-of-river generating station, a project valued at approximately $125 million, with Pituvik as a 50% partner.
- The project will reduce hydrocarbon consumption by over 80% and greenhouse gas ("GHG") emissions by 700,000 tonnes over 40 years.
- Site preparation should begin in the fourth quarter of 2019 and construction, in 2020.
- The generating station should begin serving the community toward late 2022.
- A 40-year Power Purchase Agreement ("PPA") was signed with Hydro-Québec. The PPA provides for the payment of a fixed annual amount in return for guaranteed contracted energy and capacity.
- The project will result in annual reductions of 20% in Hydro-Québec's operating costs.
- The PPA will be submitted to the Régie de l'énergie for approval in 2019.
- The projected adjusted EBITDA for the Innavik Project's first full year of operation is approximately $9 million.
The Quebec Government, through the Société d'habitation du Québec ("SHQ") [Quebec housing corporation], the Kativik Municipal Housing Bureau ("KMHB") and Transition énergétique Québec ("TEQ") [Quebec energy transition agency], supports a key component of the project: the program to convert fuel-fired water and space heating systems to electricity. This will maximize the use of renewable electricity by the entire community of Inukjuak over 480 homes.
