Sanikiluaq wind turbine gets $6.7M loan from Canada Infrastructure Bank
Project expected to be ready later this year; Nukkiksautiit Corp. can repay loan over 24 years with 1% interest
A Sanikiluaq wind turbine project is getting a $6.7 million loan from a federal bank. (Photo courtesy of Qikiqtaaluk Corp.)
A wind turbine project in Sanikiluaq is getting a $6.7-million loan from the Canada Infrastructure Bank.
This is the bank’s first investment in Nunavut and comes as the territory is working on multiple “large nation-building” projects that could require the bank’s support, said Hillary Thatcher, the bank’s managing director of Indigenous and Northern Investments.
The approximately $20-million wind turbine project, introduced in 2015, is one of the smaller initiatives and was “the most ready to move forward,” she said.
The plan to build a wind turbine in Sanikiluaq is now in the “final stages,” said Harry Flaherty, president and CEO of Nunavut Nukkiksautiit Corp., the company working on it.
The project, which includes a single wind turbine, is expected to produce enough power to offset up to 70 per cent of the current diesel fuel usage in Sanikiluaq, a community of approximately 1,010 people that’s currently entirely reliant on diesel shipped from outside the community.
“So it’s a win-win for all of us, and it’s the first of its kind for Nunavut,” Flaherty said.
The wind turbine is expected to be completed by late fall or early winter, he said, adding that the road to the facility is completed and proponents are awaiting installation of the turbine itself and the battery energy storage system.
The loan to the Nukkiksautiit Corp. can be repaid over 24 years with one per cent interest, Flaherty said.
The Canada Infrastructure Bank is a Crown corporation tasked with awarding loans to Canadian revenue-generating infrastructure projects that are in the public interest.
It’s an “impact investor,” Thatcher said, adding the Sanikiluaq project’s impact is enough to meet the bank’s requirements.
The $6.7 million is on the “lower end” of the bank’s typical financing, she said. The bank is working to potentially give out larger loans for projects like the Grays Bay road and port, which is estimated to cost $1 billion; the Kivalliq Hydro-Fibre Link which carries an estimated $3.39 billion price tag; and a hydroelectric project in Iqaluit that doesn’t yet have an estimated price tag.
“If they get designated, we’re going to be working closely in hand with the territory and with the project proponents and developers and the federal government to help accelerate the projects,” Thatcher said.
I predict this thing will cease working within five years.
How many different ventures is Harry Flaherty President and CEO of?
Does he get paid for each one?
Wonder what , the life expectancy of a windmill is before you haul it off to the dump .
Probably same as a new truck atv or skidoo. Easier to haul to dump and buy new one than to fix it.
Wow 24 years to pay off
Before they are paid off they will expire in lifespan
The contractors are only getting rich every time they get a contract from Nunavut to render their services
What happens when the temp is minus 40 and electricity is most needed–and there’s no wind?
What ever happenned to the wind turbine that was running in Sanikiluaq about 15 years ago?
I think it cost about $10,000.
This project is $20,000,000 for one post, one generator (wattage unstated), and one set of blades, plus transportation, setup, consulting fees, administration fees, and profit for someone.
Current list price for just a 0.5 megawatt generator is about $600,000 Canadian. That’s capable of supplying power for about 250 homes. So, about $19,400,000 for the post, the blades, the delivery, the setup, the consultants, the administration, and the profit. Sounds about right.
I smell a scam !!
NU has become consulting heaven for idiotic projects.
Lets verify how much less diesel QEC is going to bulk purchase and carry in Sanikiluaq, will it be 70% less? Absolutely not, it wont even be a tiny fraction of that because QEC cannot risk losing power in an Arctic Town if a windmill goes down and they don’t have fuel and suddenly they need to start hercing fuel in.
Because of the dire consequences of long sustained power outages in NU you cant rely on renewable energy , if something goes down, we don’t have people stationed who can work on this equipment, nor have the parts, just picture a blade flying off. You cant get a new blade due to the size until next sealift!
As a result you cannot have reliance on that piece of equipment that readily cant have major components replaced at any point in the year.
As such you have to carry the same amount of fuel roughly, fuel that will go bad if not used, have to be pumped out and disposed of and replaced with a new resupply.
I don’t understand the thought process until we work out the logistical challenges in NU that make these projects totally senseless when we have a million other very important issues that need money towards them. NU is a miniscule spec when it comes to the world of carbon, lets invest in in our people first.
When you don’t have to show the 70% fuel math savings, it’s easy to use hippy-dippy math. Especially when wildlife groups are silent about the slaughter of birds or caribou scares. Sanikiluaq is famous for elder ducks. Nor do we know if their math is based on name plate or actual in the field. And probably does not include the diesel generators must always run to keep steady at base load.
This is, so the Gen sets can ramp up at a moment’s notice. Because of the unreliable and intermitted wind. This causes the diesel Gen sets to use more fuel, age twice as fast, require more filter changes and earlier major over hauls. Because low load cycling it accelerates mechanical wear. Thus, increasing maintenance costs for the GN. An expensive nightmare if the GN must replace diesel Gen sets because they are aging twice as fast wherever Wind Turbines are located in Nunavut.
If the wind turbine does not have robust maintenance, blades looked after, oil changes and gears replaced the life span of about 15 years drops to 10 to 8 years. The other question; Does the oil saving math above, includes who pays to take down and ship out the dead WT? Or left like the others around the world, a rusting, abandoned eyesore? Fuel savings or GN become big bucks looser?
But as long as the federal subsidies (your tax dollars) are flowing to off set the millions of dollars to erect ugly, wildlife harming wind turbines. Who cares? The GN, and the citizens get the raw end of the blade with sky high electricity prices.
Meanwhile just next door they might have to wait an entire year for a fix on something as dire as water!
https://nunatsiaq.com/stories/article/puvirnituq-water-repairs-could-cost-millions-take-another-year-to-fix-krg-public-works-director/
Published today.
Who on earth would rely on renewable energy in our northern remote communities when repairs could take years if its something significantly like needing a major component that takes sealift. You could be looking at 2 sealift seasons!
Its a joke.
What ever happened to the wind turbines that blew over in Kugluktuk? funny now they want try solar, guessing by the non use of the the 500k solar project on the arena that only opens 2 months of the year for ice it also will not succeed but im pretty optimistic as you can tell.
Well it’s only feels and shows how business on Inuit runners of business to be a climate color used on businesses todate ,
Very good question on mentioned Harry.F,
QIA president is well ventured we see now as Oulayuu worked well with Harry from the past and learned how business is working,
Harry has a venture selling parts business with there old machinery mechanic possibly selling to QIL and more profitable for him to stay as president how he is running QC and other businesses to loose more profits as explained to QIA AGM not in gain to be questioned and bigger pictures needs explanations as a facts needs answers,
Take care of us inuit First than you laughing benefits first example Larga issues and other issues,
Gala invitations in Ottawa and bonuses received as well and alot more question to the QC board members from QIA board should be questioned and be made public regardless,
Wonders not hiding anymore and other inuit organizations to mentioned soon tackle one by one .
Inuuyuuguu isuumaanaatuuq