Backgrounder - Investment In Qulliq Energy Corporation

The Government of Canada, through the Canadian Northern Economic Development Agency (CanNor), will provide Qulliq Energy Corporation (QEC) with $5,835,250 to upgrade and improve its power-generation facilities in eight Nunavut communities.

Qulliq Energy Corporation (QEC) is a territorial crown corporation. It produces and distributes electricity in 25 Nunavut communities through its subsidiary, Nunavut Power. Energy in Nunavut is produced using diesel-powered plants.

Over the next two years, CanNor will fund QEC to help replace old, inefficient fuel generators in Arviat, Cambridge Bay, Chesterfield Inlet, Gjoa Haven, Pond Inlet, Rankin Inlet, Resolute Bay, and Whale Cove.

The project is expected to result in the creation of employment opportunities (to March 2011) through the installation of new generators.

The new generators are fuel-efficient and low-emission models. QEC estimates that the new generators will reduce use of diesel fuel by 1.62 million litres annually and greenhouse gas emissions by 4,212 metric tons annually. All of these features will have positive long-term environmental benefits. In addition, each new generator will be equipped with heat exchangers for connection of residual heat capture systems. Where there is a residual heat distribution system already in place (Arviat and Rankin Inlet) they will be connected immediately to begin heating space and domestic water in surrounding buildings.

Total project costs are estimated at $13,900,000, of which $5,835,250 will be provided through CanNor. The remainder of the funding will be provided by QEC.

Community Adjustment Fund

The Community Adjustment Fund (CAF) is a two-year national program established under Budget 2009, Canada's Economic Action Plan. Its objectives are to provide economic stimulus to create or maintain jobs in and around communities affected by the global recession, and to promote economic diversification of those communities. Longer term economic and ecological benefits are also considered.

CAF is delivered by CanNor in the three territories. CanNor has received $32.8 million over two years for the North.