Innergex Renewable Energy Inc. announced plans to build the 7.5-MW Innavik run-of-river hydroelectric generation station on the Inukjuak River in Quebec.
The C$125 million project is an initiative of Pituvik Landholding Corp. Inc., which will be a 50% partner with Innergex in the project. It is intended to provide customers of Inukjuak's off-grid system with renewable energy, according to a May 27 news release.
Construction is scheduled to begin in 2020. Upon its expected completion in late 2022, the project will sell its output to Hydro-Québec under a 40-year power purchase agreement. The power contract will be submitted to the Régie de l'énergie for approval this year.
Hydro-Québec said the project is also in line with its strategy to covert off-grid systems to cleaner and less costly energy sources. It expects the power plant to reduce its annual operating costs by 20%.
The projected adjusted EBITDA for the Innavik project's first full year operation is approximately C$9 million.