Canadian Prime Minister Mark Carney, alongside Québec Premier Christine Fréchette and Newfoundland and Labrador Premier Tony Wakeham, has announced a historic agreement to expand the Churchill Falls Generating Station and develop the Gull Island hydroelectric project, representing a total investment of nearly $70bn.
The initiative marks the largest clean energy investment in North American history. Backed by $10bn in federal financing, the combined projects will generate 14,000 megawatts of renewable power—nearly tripling the current capacity of Churchill Falls. The developments are projected to support 23,000 jobs during the construction phase and contribute $31bn to Canada’s GDP through the early 2040s.
The agreement includes co-investment opportunities with the Innu of Labrador for a major onshore wind project, alongside associated transmission line construction. To support regional economic development, the federal government has also referred the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office, accelerating permitting and structuring federal financing to support critical mineral mining, including high-purity iron ore and graphite.
Prime Minister Mark Carney stated that Canada was extending its unique advantage in clean, reliable, and affordable power, adding that when energy was mastered, destiny was mastered. He noted that through cooperative federalism, the country was unlocking its immense potential, building big, sustainably, and in partnership to build Canada strong for all.
Québec Premier Christine Fréchette highlighted the strategic imperative, explaining that in the current geopolitical context, securing an energy future was vital for every nation. She noted that through this partnership, they were supporting the energy transition and enabling economic growth through renewable energy while ensuring energy independence.
Newfoundland and Labrador Premier Tony Wakeham described the agreement as a win-win-win for the province, the federal government, and Québec. He noted that they were finally replacing the 1969 Churchill Falls deal with a new agreement guaranteeing more power, value, and transmission, ensuring Newfoundlanders and Labradorians would be the primary beneficiaries of their own resources.
Supplementary pre-development funding through Natural Resources Canada’s First and Last Mile Fund will support regional transmission expansions, transport infrastructure, and critical mineral projects, strengthening Canada’s interprovincial energy grid and export capabilities.
