Funding for ‘Namgis First Nation clean energy project

Kwagis Power LP project while under construction Kokish River near Port McNeill, B.C. — Photo courtesy Kwagis Power LP

The ‘Namgis First Nation is benefiting from B.C.’s First Nations Clean Energy Business Fund with funding to support an equity investment in the Kokish River run-of-river hydro-electric project.

Located on northeastern Vancouver Island, about 15 kilometres east of Port McNeill, the Kokish River project is owned and operated by Kwagis Power LP, a limited partnership between the ‘Namgis First Nation and Brookfield Renewable Energy Group. The ‘Namgis own 25% of the hydro facility and Brookfield Renewable holds 75%.

The $400,000 funding through the First Nations Clean Energy Business Fund supports the 25% equity investment by the ‘Namgis in the 45 megawatt run-of-the-river hydroelectric development, which is located in ‘Namgis traditional territory. The hydro facility is designed to generate enough electricity to power approximately 13,000 homes.

Brookfield developed the project and manages operations and maintenance. The ‘Namgis participate in decision making, with a focus on environmental safeguards and monitoring.

Construction of the power facility began in May 2012. The project was completed in April 2014, and is now producing electricity for sale to BC Hydro under a 40-year Electricity Purchase Agreement. A portion of revenues generated each year by the power facility is also being directed into a ‘Namgis Community Benefit Fund.

The two-year construction phase of the Kokish River project created jobs for ‘Namgis members as well as subcontracting opportunities. Approximately two dozen of the First Nation’s members worked on the project during construction and a new business, ‘Namgis Excavating LP, was also created.

This is another step in fulfilling the BC Jobs Plan commitment to increase Aboriginal participation in the economy and promote successful investment partnerships between First Nations and the private sector.

Key Quotes:

John Rustad, Minister of Aboriginal Relations and Reconciliation -

"We’re seeing the benefits of this project already - jobs, business partnerships, long-term revenue, and clean energy. This equity funding will support significant and long-lasting involvement by the ‘Namgis First Nation in the development of new clean energy sources.”

Chief Debra Hanuse, ‘Namgis First Nation -

“The equity grant that we received from the First Nations Clean Energy Business Fund has brought us one step closer to realizing benefits for our community from the Kokish River project. Our participation in this clean energy project aligns with our traditional values and stewardship responsibilities and allows us to share in the benefits derived from our traditional territory. Together with our partner, Brookfield Renewable, we are proud of our contribution to the development of clean, renewable energy in British Columbia.”

Bill Bennett, Minister of Energy and Mines -

“The First Nations Clean Energy Business Fund is part of our commitment to promote greater First Nations participation in B.C.’s clean energy sector. The Kokish River hydroelectric facility will provide significant benefits for the ‘Namgis and northern Vancouver Island residents for many years to come.”

Felipe Pinel, CEO, Brookfield Renewable Energy Group, North America - 

“The ‘Namgis First Nations is a partner who shares our respect for the environment and commitment to social responsibility. The development and operation of the Kokish hydroelectric facility has provided a significant boost to the local economy, and we feel this partnership can serve as a model for how the private sector can work with First Nations for the benefit of all.”

Quick Facts:

• The ‘Namgis First Nation has more than 1,700 members, living primarily in Alert Bay on Cormorant Island.
• The First Nations Clean Energy Business Fund provides equity funding of up to $500,000 and capacity development funding of up to $50,000 to support First Nations with feasibility studies or engagement with private sector proponents of clean energy projects.
• Since 2011, more than 100 Aboriginal communities have benefited from more than $6.9 million in capacity and equity funding through the First Nations Clean Energy Business Fund.To date, $3.9 million has been approved for First Nations equity investments for nine clean energy projects.
• B.C. has 36 clean energy revenue-sharing agreements with First Nations, including 10 new revenue-sharing agreements this spring.
• The fund supports First Nations participation in ocean and wind energy, biomass, run-of-river hydroelectric power, clean energy planning and related projects.
• The fund also allows First Nations with revenue-sharing agreements to receive a portion of water and land rents charged by the Province for new clean energy projects.
• The clean energy technology industry is one of the fastest-growing industries in B.C., with more than 200 organizations, 68% of which were formed in the past decade.