Kivalliq Hydro-Fibre Link estimated cost rises to $3.2B
Project that will connect energy infrastructure in 5 Kivalliq communities to rest of Canada waits on more federal funding
Arviat, shown in this file photo, as well as Baker Lake, Chesterfield Inlet, Rankin Inlet and Whale Cove are expected to benefit from faster internet and access to clean energy through the Kivalliq Hydro-Fibre Link project. (File photo)
The Kivalliq Hydro-Fibre Link is now estimated to cost close to three times more than originally expected, with federal funding still uncertain.
The expected price tag for the project to connect Nunavut’s electricity infrastructure to the rest of Canada has reached $3.2 billion instead of the initial estimate of $1.2 billion from 2019, John Main, the minister responsible for Qulliq Energy Corp., told the legislative assembly last week.
“Even with much smaller projects on the government side, we’ve seen significant cost escalations in the last couple of years since COVID, which has really impacted our ability to build,” Main said in an interview Thursday.
The project is led by Nukik Corp., which is owned by Kivalliq Inuit Association and its business arm, Sakku Investments Corp.
Five Nunavut communities could be connected with the rest of Canada by a 1,200-kilometre high-voltage transmission line. (Photo courtesy of Nukik Corp.)
The link will include a 1,200-kilometre high-voltage transmission line connecting Gillam, Man., to Arviat, Whale Cove, Rankin Inlet, Chesterfield Inlet and Baker Lake and to Agnico Eagle Mines Ltd.’s two gold mines in the region.
The hydro-fibre link is set to bring “renewable and affordable” electricity and high-speed internet to Nunavut, according to the project plan.
“It’s a really a visionary project — something we haven’t seen yet, but not without its challenges in terms of that significant cost and then the different steps that the development would have to go through,” Main said.
Work on Kivalliq Hydro-Fibre Link started in 2018 with an estimated completion date of 2032.
The project is in the development stage. That includes organizers meeting with communities, organizations and governments as well as hiring and training researchers.
Nukik Corp. is seeking support from Ottawa on the project, according to the company’s financial overview.
But Main said there is a “big question mark” as to how much money the Nunavut government will be able to provide, noting that even though Qulliq will be a “large customer” of the link it is “very limited” in its ability to financially support the project.
The federal government has made several funding announcements for the project over the years, including $3 million in 2021, $7 million in 2022 and $2.8 million in 2024.
In April, the Nunavut and Manitoba governments made a “game-changing” statement committing to jointly advance the Kivalliq Hydro-Fibre Link, Main said.
As well, the two governments called for more support from Ottawa, a Nukik Corp. news release said on April 17.
Nukik Corp. estimates the link will bring $8 billion in revenue over 50 years through construction and in mining operations and greatly reduce Kivalliq Region’s reliance on diesel.
The company did not respond to a request for comment on the estimated cost increase.
id just use starlink , already cheaper . already active and ready to use.
Cheaper , just to give everyone , a free starlink , no ?
This link is just not feasible for the time being. Why not just build a road to these communities for the time being and build the link along the road.
Show me the feasibility study for this one please. Lets just take 3.2B at a moderate 6% return for instance which is well below any market rate of return. That’s 192M per year
What is the annual cost of fuel resupply in the Kiv? and really would this hydrofibre line even serve the entire kiv.
Now because it’s so remote, I suspect repairs would have a delay in the case of damage which also means towns would still be holding diesel as backup. I understand that ultimately yes there’s a goal to reduce diesel for environmental reasons but lets really be honest. NU as a whole, let alone just the Kiv is a tiny, miniscule, spec, its a nothing contributor to actual diesel consumption in North America, below nothing.
That goes for all renewables for that matter, wind and solar. You cant fully rely on them, which means you have to hold adequate diesel and if its not consumed, diesel then goes bad and you have to remove it which would be an extraordinarily high expense. Then replace it with new diesel. No one talks about this though when it comes to renewables. Too much money tied up in consulting for that to ever come up.
On top of that NU has already made it quite clear they don’t want mines, Baffinland wrapped up into years and years of reviews to ultimately be denied, AEM wind-project denied. Miners wont suddenly look at NU difference because of this hydrofiber if they can’t get through review stages.
If we’re going to spend 3.2B on something this absurde, please make all the figures fully transparent, lets see the math.
Can we stop blaming Covid? It was 5 yrs ago, PPL had cold……And law makers like Main and the House are still stuck with it….perhaps they have no idea what is going in today’s reality. Oh! I still have to fix my porch door, delayed because of Covid issues I encountered 5 yrs ago…I’ll get to it, I am trying to figure the blueprints of the door.
Stupidest idea ever. Feds should just ditch this project because it won’t happen without them and it shouldn’t happen with them.
Cost is ridiculous. So’s the cost of a road. Imagine the maintenance cost once it’s built. Clear the way and use hovercraft, as used to cross the English Channel.
Yeah remember Burkina Faso?
Hovercraft haven’t been used as ferries on the English Channel for the last 25 years.
If another forest fire is to occur on the area. Will it destroy or damage the big tax payer investment. How will the Kivaliiq communities fare if the forest fire cuts off their power. I imagine the rest of the territory will have pick up the tab for the emergency then.
So, about $750,000 for every person in Nunavut. And if the money were available and the land was available, it would take at least 10 years.
But someone could get paid big bucks to do a “study”.
3.2B/40K = 80K per person.
That’s a lot of dough
It’s said how these people in office spend money like they are 11 years old with no real big plans
Build homes
Stop wasting money
3.2 billion going to make a contractor rich
I supported this project, but 1.2 billion to 3.2 billion, will not happen, the Feds will never do it, delay, delay, will be the plan,we do not want wind and nuclear,how many people actually pay for power here,
How many SMRs can you buy for $3.2 Billion dollars? Has anyone done the cost comparative analysis with other potential forms of power production?
This project seems madly expensive and vulnerable. Is PJ pushing projects that Nunavut needs or is he pushing projects that ve$ted interests want?
This was a bad idea from the beginning. The cost was grossly underestimated and when I looked at the numbers 5 years ago I observed that it was at least a $2.5 B price tag. You only have to look at the cost of comparable infrastructure, like the Muskrat Falls transmission line, to know how insane the first numbers were. And finally the one thing we know about projects like this, no matter where they are built, the sign off price tag and the completion of construction price tag are very different. So if the sign off were today at $3.2 Billion you can be sure it will go closer to $4.5 Billion by the time it’s done. It was a stupid idea at $1.2 B for 50 megawatts and it’s an insane proposition at $3.2B!!
Kivalliq must put on their thinking caps to deep dive, discovering what is the long term best solution for goal wanted. SMR and Manitoba hydro line are similar in price.
If a goal is to produce food under lights to supply the Kivalliq with low-cost food. And creating small industries. Then, tapping into low-cost electricity, SMR must be seriously looked at.
If drop a 10MW Arviat, 5mw Whale Cove, 80mw Baker and 300mw Rankin Inlet. Large size in Rankin for mines to run line to Rankin, allowing mines to be up and running lickety-split. Same with Baker. Big time lowering electricity for the communities. If experts number crunch, they might find Rankin will be lower or touch above the Thompson Manitoba rate and lower than the Manitoba power line rate. This is even including a 10 year refueling expense.
A Hydro Line from Manitoba will require a shadow diesel grid operating in each community (and at the mines). This means diesel generators will be required to run hot 24/7 and need a yearly fuel resupply in case of line down. This will add additional costs to the power line rate.
Depending where and if during a blizzard and if helicopters can fly to fix. And how long will it be down, for days, weeks or month will add additional costs to hydro operation? it is also possible all Hamlets and mine could be down at the same time.
SMR provides isolation resilience, emergency independence as most units have back up built in. Meaning no need for diesel back up. Even if want, the diesel generators can be left cold and brought up to run hot if ever needed.
Promoting 5G for the Hydro Line is like hyping 110 Hondas will be hot sellers for decades. The 110 lasted 1, 2 years, then 185 and 200s, then 300 cc and now there is a 976cc V-twin ATV. Regulations halt going above 1000cc. Who knows what the internet speed will be in 10 years, and how delivered when the Manitoba line built?
What also must be on the table to look at is the zero point technology generator (ZPT) and Zero Point Energy (ZPE). The Electrogavitics field, producing electricity and travel with no continuous fuel source.