CIB commits $170M to Oneida Energy Storage project
A project to store surplus energy from Ontario’s electrical grid effectively has the green light to proceed thanks to a formal announcement of $170 million in funding on May 19 from the Canada Infrastructure Bank (CIB).
The project, which will be built on a 10-acre site in Jarvis, Ontario, will absorb surplus electricity from the electrical grid during off-peak periods, and return it to the grid during peak periods.
The facility is expected to reduce the need and cost associated with using gas-fired power plants during times of peak demand. In so doing, it 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.
The project will be the biggest of its kind in North America.
“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,” said NRStor CEO and founder Annette Verschuren. “It will help protect our environment, lower electricity costs for Ontarians, and support the economic recovery and future growth of our province and Canada.”
Design, construction, operations and maintenance of the 250 megawatt / 1,000 megawatt-hour facility will be the responsibility of Oneida Energy Storage LP, which is a partnership between NRStor Inc and Six Nations of the Grand River Development Corporation.
Oneida Energy Storage LP will also aim to create internship opportunities for Six Nations community members, as well as jobs and training opportunities.
“Six Nations of the Grand River Development Corporation is extremely pleased to play a lead role in advancing an energy solution that unlocks value for ratepayers, promotes greenhouse gas reduction, and provides much needed stimulus for our local economy,” said Matt Jamieson, president and CEO, Six Nations of the Grand River Development Corporation. “The Oneida Energy Storage project is an example of the progressive steps we are taking to seek out high caliber partners and build new relationships that are reflective of our community’s needs and value.”
Under the terms of the investment agreement, Oneida Energy Storage and its private-sector lending partners will finance the balance of the project’s capital cost, which will be confirmed and announced at financial close this summer.
The 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 is proud to invest in this world class, clean energy project alongside the private sector,” said CIB CEO Ehren Cory. “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 project is a win-win-win.”
Construction is anticipated to begin in fall 2021.