As the rights-holders to strategic lands, prospective Indigenous proponents of clean energy projects can be at ground zero for net-zero. A newly released primer from the First Nations Major Projects Coalition (FNMPC) — a non-profit collective of more than 170 First Nations across Canada that provides support for wholly owned ventures or equity partnerships in infrastructure developed within members’ traditional territories — highlights the opportunities and some illustrative generation, storage and transmission ventures.

Collectively, Indigenous peoples are already the third most invested owners in Canadian clean energy assets, after governments and utilities. Strategies to expand that stake can align with self-governance, reconciliation, economic development, environmental stewardship and climate change response.

“Indigenous nations in Canada expect to be full economic beneficiaries of electrification,” the introduction to the primer affirms.

Initially, investment opportunities are expected to be most plentiful in established clean energy technologies like solar, on-shore wind, biomass, geothermal and hydroelectric generation, and associated services like energy storage and transmission. Some early examples of wholly owned enterprises include:

• Tu Deh-Kah Geothermal, a 15-megawatt (MW) generating facility in Fort Nelson, British Columbia, which will replace the gas-fired power plant now serving communities of the Fort Nelson First Nation;
• Five Nations Energy, one of Ontario’s five licensed electricity transmission companies and the developer of the 270-kilometre Omushkego Ishkotayo Project, delivering electricity to the communities of Attawapiskat, Fort Albany, and Kashechewan; and
• Groupe ADL, a company of the Mashteuiatsh First Nation, developing biomass fuel as the owner of Quebec’s largest wood pellet plant, Granules LG.

As well, Saskatchewan-based Cowessess First Nation owns a 95 per cent majority interest in Awasis Solar, a 10-MW solar photovoltaic generating facility with a 20-year agreement to sell power to SaskPower. The arrangement with the minority owner, Elemental Energy, will also give its Indigenous partner the opportunity to acquire full ownership after five years of commercial operations.

Examining the rationale for Indigenous equity stakes in both small and large-scale clean energy projects, FNMPC reiterates the “legal and socio-economic precedents” that underpin an obligation for any infrastructure proponent to engage in meaningful consultation and obtain informed consent from Indigenous peoples prior to beginning a project on their lands. Canada is a signatory to the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), while the Truth and Reconciliation Commission’s call to action 92 urges the corporate sector to likewise apply UNDRIP principles for respectful business relationships that can convey long-term sustainable economic benefits to the Indigenous communities that host and provide labour and/or a market for outside enterprises.

From potential partners’ perspective, receptive communities can enhance a deal’s outcomes with valuable insiders’ connections and an expanded network of potential business opportunities. FNMPC stresses that it is an opportune time as global economies strive to shift to low-carbon production and deliver the capacity for required wide-scale electrification of transportation, manufacturing and building operations. Flawed engagement risks derailing projects, while true collaboration can shave time off that process.

“Given that any new net zero project will be hosted or built on Indigenous lands, the centering of Indigenous peoples’ rights and self-determination must anchor the now quickly unfolding electrification era in Canada,” the primer states. “Without full participation of Indigenous people, clean energy projects are not likely to be completed in time to meet Canada’s net zero target timelines.”

Henvey Inlet First Nation Wind Energy Centre, a 300-MW wind farm on the northeast shore of Ontario’s Georgian Bay with an associated transmission line, is a prominent example of an equity partnership. Developed with Pattern Energy, it is Canada’s largest Indigenous wind energy project to date.

Parc éolien Apuiat, a 200-MW wind farm on Uashat Mak Mani-Utenam First Nation territory in Quebec is another large-scale wind project. The Innu nation is a 50 per cent joint owner with the Quebec-based energy company, Boralex and, together, they have secured a 30-year contract to sell power to Hydro-Québec.

The primer also cites examples of Indigenous co-ventures in energy storage and hydroelectric projects, and examines a range of emerging technologies including nuclear small module reactors, hydrogen, tidal and wave energy and carbon capture, utilization and storage (CCUS). As well, it outlines some of the considerations that prospective energy project proponents may choose to apply in assessing the technologies and business models that are most suitable for their resources and ambitions.

FNMPC stresses that the new primer is meant to set out the big picture and does not delve deeply into financial or legal details. However, as the provider of business capacity support to a collective that has 17 projects in progress, representing total Indigenous capital investment of $30 to $40 billion, it has an extensive library of guidance on myriad aspects of project development.