MULGRAVE — Backed by a $224-million loan from the Canada Infrastructure Bank (CIB) this week, Port Hawkesbury Paper Wind Ltd. (PHPW) has officially approved its Goose Harbour Lake Wind Farm in the Municipality of the District of Guysborough (MODG).
“The project is now fully financed and a final investment decision has been made,” PHPW Director Nigel Cave told The Journal at the federal funding announcement in Mulgrave on Jan 6. “The total project costs are in the neighbourhood of $450 million.”
The CIB loan will enable PHPW to build and install 24 Nordex cold-climate turbines on a 43-hectare plot of provincial Crown land. These turbines will generate up to 168 megawatts of energy, supplying roughly 60 per cent of the power needs for PHPW’s sister company, Port Hawkesbury Paper (PHP).
The Goose Harbour Lake project, in development since 2019, is expected to create 150 jobs at the peak of construction and up to five permanent jobs once operational. “There has been some initial construction,” Cave said, “but the plan would be for civil contracting work to carry on with completion early in 2025, erection of the turbines during 2026 and, hopefully, reaching commercial operations by late fall of 2026.”
The financing will also help 13 Mi’kmaw First Nations, under the Wskijinu’k Mtmo’taqnuow Agency Ltd. (WMA), acquire a 10 per cent stake in PHPW. The wind project is majority owned by Stern Partners, a Vancouver-based investment firm and the project’s principal equity investor. Additional financing is provided by Stonebridge Financial Corporation of Toronto.
At the announcement, WMA President Crystal Nicholas said, “This is a milestone for the Mi’kmaw of Nova Scotia. The 10 per cent ownership is more than just a financial investment. It is a statement of our commitment to lead in clean energy development, upholding our values as stewards of the land. [It] represents a natural alignment with our commitment to environmental sustainability. This equity position creates opportunities for the community beyond the immediate scope of this project.”
Meanwhile, MODG Warden Paul Long highlighted that the project will bring increased tax revenues and new community economic benefits. “We’ve been in discussions [about] the opportunities surrounding community benefits agreements, which will serve to address local needs for years to come,” Long said.
He added, “A lot of these things certainly allow for better communications, better sharing of information, and that [also] makes [this] seem like a real project going on ... Port Hawkesbury Paper has laid [a] path that will be part of the way agreements are reached as other projects unfold in our municipality and throughout Nova Scotia.”
According to a project backgrounder, the wind farm will support both Nova Scotia’s largest industrial electricity user – PHP – and the provincial energy grid. It is projected to reduce emissions by more than 350,000 tonnes annually. This will “help the province’s energy transition, moving from coal to renewables.”
The paper mill, the backgrounder emphasized, is a vital contributor to Nova Scotia’s economy, particularly in the eastern region. “Economic impact studies confirmed the mill directly employs approximately 325 people, and contracts another 900 jobs, employing hundreds of forestry contractors and suppliers.”
In his announcement remarks, Cape Breton-Canso MP Mike Kelloway underscored the importance of collaboration in rural Nova Scotia. “These are key ... When we work together, hand in glove, different levels of government, private entities, not-for-profits, unions, good things are going to happen ... Cape Breton and northeastern Nova Scotia are not only emerging as a serious competitor but, quite frankly, we’re emerging as a leader in the green energy sector, and that doesn’t happen by accident.”
In an interview with The Journal following the announcement, PHPW’s Director of Sustainability and Economic Development Geoff Clarke commented, “This mobilizes everything ... Everything becomes more real now. There are multiple levels. There’s the provincial land lease program for Crown land. The wind taxation act comes into play, where the municipality gets dollars per megawatt. There’s a community benefits program, with the local community surrounding the project. There’s also an Indigenous benefits layer added onto that as well ... It’s not chump change.”
