The Canadian Infrastructure Bank (CIB) has committed a C$206 million (US$150.5 million) loan to a partnership between Slate Asset Management and Hamilton Lane managed funds to develop a wind farm on the Mersey River in Nova Scotia.
Project partner Renewall Energy will sell the electricity generated by the facility directly to end customers across the province.
The wind farm will consist of 33 turbines and associated infrastructure with a generating capacity of 148.5 MW, enough to power more than 50,000 homes.
Housing and Infrastructure Minister Gregor Robertson and Energy and Natural Resources Minister Tim Hodgson announced the funding and outlined the initiative’s role in Nova Scotia’s transition from coal-based power generation to renewable energy by 2030.
“By supporting the Mersey River Wind Project, we are helping Nova Scotians have access to more affordable, reliable and renewable electricity,” Robertson said.
“Our government is committed to investing in infrastructure to reduce emissions, create good jobs and strengthen our economy.”
The operation of the wind farm is expected to reduce carbon emissions by approximately 220,000 tons per year, equivalent to 1.5% of the province’s carbon emissions in 2022.
Renewall Energy has been awarded its first license under Nova Scotia’s Renewable Energy Retail Program.
This will allow electricity produced entirely from renewable sources to be sold directly to residential, public sector, commercial and industrial consumers in the region.
Construction will take place in two phases and is expected to create more than 200 jobs at peak, with an initial operational target of 2027.
The project is eligible for up to 30% of capital cost reimbursement through the Clean Technology Investment Tax Credit.
Natural Resources Canada is also contributing up to $25 million through its Smart Renewable Energy and Electrification Pathways program.
Royal Bank of Canada acted as administrative agent and lead arranger on the related construction loan.
The Canada Infrastructure Bank is supporting the project within its clean energy priority area, which aims to support low-carbon initiatives such as renewable generation and energy storage solutions.
“Canada Infrastructure Bank invests $150 million in Nova Scotia wind farms” was originally created and published by Power Technology, a brand of GlobalData.
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