Ontario — The Canada Infrastructure Bank (CIB) will invest up to $170 million in the half billion dollar Oneida Energy Storage project, in Southwestern Ontario.
Under the terms of the investment agreement in principle, Oneida Energy Storage LP, together with private-sector lenders, will finance the balance of the project’s capital cost, which will be confirmed and announced at financial close this summer. Construction is anticipated to begin in fall 2021.
CIB says the project will help Ontario reduce greenhouse gas emissions by 4.1 million tonnes or the equivalent of taking 40,000 cars off the road every year. It will also allow Ontario to better manage peak electricity demand and meet future reliability needs in a more sustainable way.
When operational, the energy storage facility will draw and store existing surplus baseload and renewable energy during off-peak periods. Clean, reliable power would be released to the Ontario grid when energy demand is at its peak to reduce greenhouse gas emissions.
In addition, the facility will help optimize Ontario’s electricity sector by providing important grid balancing services and reducing renewable curtailment.
Oneida Energy Storage LP, a partnership between NRStor Inc and Six Nations of the Grand River Development Corporation, will create internship opportunities for Six Nations community members and result in training and employment opportunities.
Oneida Energy Storage LP will be responsible for the design, construction, operations and maintenance of the 250 megawatts / 1,000 megawatt-hour facility.