The Canada Infrastructure Bank (CIB) and Oneida Energy Storage LP announced today the signing of a Memorandum of Understanding (MOU) for the Oneida Energy Storage project in Ontario. Oneida Energy Storage LP is a joint venture between NRStor Incorporated and Six Nations of the Grand River Development Corporation.
The MOU confirms the CIB's collaboration with Oneida Energy Storage LP in support of the project. The CIB and Oneida Energy Storage LP have an agreement on the parameters around a CIB investment in the project, which will be confirmed by further due diligence and a final investment decision in spring 2021. This partnership is another step forward for the CIB to deliver new clean power infrastructure as part of its $10B Growth Plan.
Representing the largest project of its kind in Canada, the proposed Oneida Energy Storage project includes development of a 250 megawatt / 1000 megawatt-hour energy storage facility in Southwestern Ontario.
The facility would provide clean, reliable power capacity. It would draw and store existing surplus baseload and renewable energy during off peak periods. Power would be released to the Ontario grid when energy demand is at its peak. In addition, the energy storage facility would help stabilize Ontario's electricity sector by providing important grid balancing services.
By helping to better use the existing assets of Ontario customers, greater efficiencies would be secured leading to a more affordable and cost-effective electricity system.
Benefits of the CIB's Involvement
The CIB engages and builds relationships with all levels of government, Indigenous communities and private and institutional investors. Its team of infrastructure experts conduct market analysis and provide specialized commercial and investment expertise, including innovative financial modelling, project structuring and procurement options to support project sponsors.
The CIB is excited to be part of this project as it has the potential to deliver sustainable, reliable and affordable energy for customers in Ontario. The project is founded on a strong partnership between an innovative Canadian energy company and a First Nation community. The CIB is proud to support this partnership. As part of the Growth Plan, the CIB has a goal of investing $2.5 billion in clean energy projects across Canada within three years. The CIB will continue to encourage projects which include meaningful Indigenous community participation.
Ehren Cory, CEO, Canada Infrastructure Bank
Energy storage is a game-changer that can help to enable Canada's transition to a low-carbon economy and make Ontario a global leader in cleantech innovation. We are excited to work with industry-leading partners on the Oneida project to deliver grid efficiencies at scale resulting in meaningful savings for rate payers. We believe Oneida will be just the first of many exciting storage projects on our country's horizon.
Annette Verschuren, CEO & Founder, NRStor
The Oneida Energy Storage project has the potential of contributing significantly to our mission of achieving economic self-sufficiency for the people of Six Nations.
Elected Chief Mark Hill, Six Nations of the Grand River
We are thrilled to partner with NRStor to develop energy storage as the means through which energy savings can be realized while providing reliable clean energy to our communities and businesses.
Matt Jamieson, President and CEO, Six Nations of the Grand River Development Corporation
Renewable energy projects in partnership with Indigenous communities - like the Oneida Energy Storage project with the CIB, Six Nations of the Grand River Development Corporation and NRStor Inc. – are a great example of how our economy will grow in the future and how forward-looking investments can help Canadians achieve their economic and environmental goals. Investors here in Canada and from around the world are looking to locate and create jobs in places that innovate in this way, helping them reduce carbon emissions and be more competitive at the same time.
Catherine McKenna, Minister of Infrastructure and Communities
Ontario is uniquely positioned to take advantage of energy storage solutions and I congratulate the Six Nations of the Grand River Development Corporation, NRStor and the Canada Infrastructure Bank on this important project milestone today.
Greg Rickford, Minister of Energy, Northern Development and Mines, Minister of Indigenous Affairs
SOURCE: Canada Infrastructure Bank