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.
“The CIB is proud to invest in this world class, clean energy project alongside the private sector,” said Ehren Cory, CEO of CIB. “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.”
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 Incorporated 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.
“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,” said Matt Jamieson, president and CEO of the Six Nations of the Grand River Development Corporation. “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.”
Featured image of energy storage units from CIB.