Canada Infrastructure Bank To Invest Up To $170 Million In One Of The World’s Largest Clean Energy Storage Project
TORONTO – The Canada Infrastructure Bank (CIB) will invest up to $170 million in the half billion dollar Oneida Energy Storage project, in Southwestern Ontario.
Under the terms of the investment agreement in principle, Oneida Energy Storage LP, together with private sector lenders, will finance the balance of the project’s capital cost, which will be confirmed and announced at financial close this summer. Construction is anticipated to begin in fall 2021.
The project will help Ontario reduce greenhouse gas emissions by 4.1 million tonnes, or the equivalent of taking 40,000 cars off the road every year. It will also allow Ontario to better manage peak electricity demand and meet future reliability needs in a more sustainable way.
When operational, the energy storage facility will draw and store existing surplus baseload and renewable energy during off peak periods. Clean, reliable power would be released to the Ontario grid when energy demand is at its peak to reduce greenhouse gas emissions.
In addition, the facility will help optimize Ontario’s electricity sector by providing important grid balancing services and reducing renewable curtailment.
This project is a demonstration of how the CIB is attracting private sector capital in partnership with a Canadian clean technology company and an entrepreneurial First Nations community.
Oneida Energy Storage LP, a partnership between NRStor Inc and Six Nations of the Grand River Development Corporation, will create internship opportunities for Six Nations community members and result in training and employment opportunities.
Oneida Energy Storage LP will be responsible for the design, construction, operations and maintenance of the 250 megawatt / 1,000 megawatt-hour facility.
The CIB is proud to invest in this world class, clean energy project alongside the private sector. The CIB, NRStor Inc. and Six Nations of the Grand River Development Corporation are showing how we can invest in sustainable infrastructure, take action on climate change, create energy security for Ontarians and stimulate economic opportunity benefiting a First Nations community. This infrastructure project is a win-win-win.
The Oneida Energy Storage project is a historic achievement built on a foundation of respect and equal partnership with the Six Nations of the Grand River. It will help protect our environment, lower electricity costs for Ontarians, and support the economic recovery and future growth of our province and Canada. We are excited to work with the Canada Infrastructure Bank to advance this project as we strive to achieve our shared environmental, energy, and economic objectives.
Six Nations of the Grand River is excited to co-develop the Oneida Energy Storage project in collaboration with industry leader NRStor Inc. This innovative project aligns with our community’s core values of protecting Mother Earth and preservation for our future generations. With the financial support of the CIB, this project will be amongst the first of its size to be co-developed by an Indigenous partner and will model a path forward for how private, public and Indigenous partners can work together to create meaningful solutions.
Six Nations of the Grand River Development Corporation (SNGRDC) is extremely pleased to play a lead role in advancing an energy solution that unlocks value for ratepayers, promotes green house gas reduction, and provides much needed stimulus for our local economy. The Oneida Energy Storage project is an example of the progressive steps SNGRDC is taking to seek out high caliber partners and build new relationships that are reflective of our community’s needs and value.
Renewable energy storage is critical to building a low-carbon economy and a net-zero emissions future. The Oneida Energy Storage project with the CIB, Six Nations of the Grand River Development Corporation and NRStor Inc is a great example of a strong partnership with Indigenous Peoples on one of the largest battery storage projects in North America that will create good jobs, reduce costs for ratepayers, tackle climate change and help Canada be a leader in the clean economy. I’m excited to see this important project moving forward.
I am encouraged to see another key milestone met in the Oneida Energy Storage project with the joint investment from CIB and Oneida Energy Storage LP. This is another important example of what public-private collaboration and First Nations partnership can accomplish. Congratulations to all involved in the project.
Quick Facts
- The project is one of the largest clean energy storage facilities in the world.
- Oneida Energy Storage will harness clean, reliable electricity to the provincial grid by optimizing the use of existing assets, reducing inefficiency and waste.
- The energy project is part of the CIB’s $2.5 billion clean energy initiative and goal to invest at least $1 billion in projects in partnership with and for the benefit of Indigenous Peoples.
- The CIB’s investment is subject to final due diligence and approval by its Board.
- Scotia Capital Inc. is acting as financial advisor to NRStor Inc. and Six Nations of the Grand River Development Corporation.
