Prime Minister Mark Carney announced Monday the federal government will provide $10 billion in financing toward a nearly $70 billion expansion of hydroelectric power in Labrador that Ottawa calls the largest clean energy spending project in North American history.Carney announced the agreement in St. John’s alongside Québec Premier Christine Fréchette, Newfoundland and Labrador Premier Tony Wakeham and executives from Hydro-Québec and Newfoundland and Labrador Hydro.The agreement calls for upgrades and an expansion of the Churchill Falls Generating Station, development of the Gull Island hydroelectric project and construction of associated transmission lines.Federal financing will also help create opportunities for the Innu of Labrador to participate in a proposed onshore wind project.Ottawa said the projects together represent nearly $70 billion in spending and would generate 14,000 megawatts of renewable electricity, almost three times the existing generating capacity at Churchill Falls.The federal government estimates construction will support 23,000 jobs and the projects will contribute $31 billion to Canada's GDP through the early 2040s.Ottawa said the electricity produced would be enough to power, heat and cool all homes in Toronto, Montréal and Vancouver combined.“Canada is extending its unique advantage in clean, reliable, and affordable power,” said Carney.“Because when we master energy, we master our destiny. Through cooperative federalism, we are unlocking our immense potential, building big, building sustainably, building in partnership, and building Canada strong for all.”The agreement also comes as Newfoundland and Labrador seeks to replace the controversial 1969 Churchill Falls agreement with Québec.Wakeham said the new arrangement would give Newfoundland and Labrador more control over its electricity and greater financial benefits from its resources.“This is a win-win-win for Newfoundland and Labrador, the federal government, and Québec,” said Wakeham.“Newfoundlanders and Labradorians will finally be the primary beneficiary of our own resources, with complete control over whether we use our power to develop our economy or sell to outside markets.”.Fréchette said the agreement would help Québec secure its long-term electricity supply.“Through this partnership, we are supporting the energy transition and enabling the growth of our economy through renewable energy, while ensuring our energy independence,” she said.Carney also announced the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor will be referred to the federal Major Projects Office.The Labrador Trough stretches across Newfoundland and Labrador and Québec and contains significant deposits of high-purity iron ore.The Major Projects Office will coordinate federal financing, permitting and work with indigenous communities on potential partnerships, according to the Prime Minister's Office.Ottawa will also spend money on pre-development work for several Labrador infrastructure and mining projects through Natural Resources Canada's First and Last Mile Fund.Those include studying an expansion of transmission infrastructure in western Labrador to connect mining operations to the electricity grid.Federal funding will also support planning and feasibility work for transportation and energy infrastructure required for the proposed Kami iron ore project near Wabush.Focus Graphite will receive support for pre-construction work on a transmission line and road connecting the Lac Knife graphite project to Hydro-Québec's electricity grid.SFP Pointe-Noire will also receive federal support to expand mineral-handling capacity and related railway infrastructure.The First and Last Mile Fund is backed by $1.5 billion announced in the 2025 federal budget..The government said the fund includes money intended to support indigenous participation in mining projects and related infrastructure.Ottawa said approximately 80% of Canada's electricity generation is currently non-emitting.The Carney government is also using tax credits and federal financing programs to encourage additional clean electricity development, including a $20 billion clean-energy target at the Canada Infrastructure Bank and an indigenous Loan Guarantee Program whose envelope was increased from $5 billion to $10 billion.
