SaskPower and First Nations Power Authority sign Opportunity Agreement worth an estimated $300 million

May 11, 2018

Today, SaskPower and the First Nations Power Authority (FNPA) signed a First Nations Opportunity Agreement to source 20 megawatts of flare gas power generation projects. Worth an estimated $300 million of potential revenue over 20 years, this represents significant new economic development and opportunity for power projects led by Aboriginal communities and businesses.

Flare gas power generation takes waste flare gas from oil and gas operations and uses it to produce electricity, instead of emitting it directly into the atmosphere. As a result, the oil and gas operation reduces its environmental footprint, and the power is used to meet the growing demand for electricity in Saskatchewan.

“We are proud to celebrate this pioneering agreement between our government and the First Nations Power Authority, which will contribute to Saskatchewan’s climate change strategy in a very meaningful way,” said Minister Responsible for SaskPower Dustin Duncan. “By supporting the adoption of innovative emission reduction technologies such as this, we are supporting all sectors of Saskatchewan’s economy in an effort to reduce their carbon footprint. We are committed to a cleaner electricity sector, and a cleaner oil and gas sector, but in a manner that is financially sustainable and responsible.”

The First Nations Opportunity Agreement gives FNPA the responsibility of securing Aboriginal-led flare gas power production projects. Power purchase agreements will then be signed and negotiated for the electricity to be sold to SaskPower and distributed on the provincial power grid over the next 20 years. FNPA has notably been working closely with Flying Dust First Nation on developing a flare gas power generation opportunity.

“This is an important milestone for us,” said FNPA Chief Executive Officer Guy Lonechild. “This agreement and long-term commitment between SaskPower and Saskatchewan First Nations is exactly what FNPA was created to develop. Together, we are saying that our First Nations will be essential in the power future of this province, from an economic and environmental perspective.”

Flare gas is part of SaskPower’s diverse portfolio of generation sources. Reducing the greenhouse gas emissions of the oil and gas industry is also in-line with the corporation’s values. SaskPower has targeted the reduction of its own emissions by 40 per cent, by 2030.

“SaskPower is committed to progressive Aboriginal relations and procurement,” said SaskPower President and Chief Executive Officer Mike Marsh. “Through this agreement and the hard work of the First Nations Power Authority, we are delivering on this commitment today and for the foreseeable future. It’s also an example of how we can keep growing the provincial power grid to meet the rising demand for power, in a way that also meets our collective vision for environmental sustainability.”

At a Glance

  • SaskPower and First Nations Power Authority sign Agreement to bring 20 MW of flare gas power to the power grid
  • Aboriginal-led projects will be worth an estimated $300 million over 20 years
  • Agreement meets commitments for Aboriginal collaboration and commitment to reduce provincial greenhouse gas emissions

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