A $450-million wind energy project being developed by the sister company of Nova Scotia-based Port Hawkesbury Paper will be powering its mill and providing clean electricity to the provincial grid.

Port Hawkesbury Paper Wind Ltd. announced it received $224.2 million in loans from the Canada Infrastructure Bank (CIB) earlier this week, enough to close financing and progress to construction.

The first phase, expected to be finished by late 2026, will consist of 24 cold climate wind turbines in Guysborough County, enough to generate 168 megawatts of electricity at full capacity.

It will offset over 350,000 tonnes of carbon dioxide per year, over two per cent of Nova Scotia's greenhouse gas emissions in 2022.

The province's grid will be the first to receive the electricity. The wind farm will then supply approximately 60 per cent of the paper mill’s electricity needs per year, Geoff Clarke, director of sustainability and economic development for Port Hawkesbury Paper, said in an interview with Sustainable Biz Canada.

“It’s going to be for the benefit of all Nova Scotians.”

Powering the paper mill with wind

The paper mill located on the southwest end of Cape Breton Island specializes in supercalendered paper used in magazines. Clients include publishers of The Hockey News, People and Cosmopolitan.

It has 325 full-time employees and supports 900 contractors who help produce 360,000 tonnes of supercalendered paper per year, Clarke said.

Port Hawkesbury Paper took an interest in producing wind energy to meet its goals for sustainable mill operations and having consistent energy bills.

“Over the years the energy costs and price for fuel to create that energy from the grid keeps increasing and there’s quite a lot of volatility,” Clarke said.

The reliably gusty winds of Nova Scotia offer predictability by comparison, and have attracted attention from other firms as well. EverWind, a green hydrogen and ammonia fuel company, in July 2023 announced a $1-billion investment in three wind farms in Nova Scotia, showing high demand for wind power from the province.

Named the Goose Harbour Lake Wind Farm, the Port Hawkesbury project’s main private investors are Vancouver-based Stern Partners and Wskijinu’k Mtmo’taqnuow Agency Ltd. (WMA) which represents 13 Mi’kmaq First Nations. Stern Partners is the owner of both Port Hawkesbury companies.

With the CIB loan secured, construction is expected to start in the spring and power generation in Q4 2026.

Port Hawkesbury is confident the project will avoid major construction snags that could delay work, Clarke said. The contracted firms are seasoned in constructing and developing wind energy projects, he explained.

The Nova Scotia grid will be one step closer to meeting the provincial government’s target of having 80 per cent of its electricity from renewable sources by 2030 compared to 43 per cent as of 2024.

Depending on the success of Phase 1, Port Hawkesbury may add up to seven more wind turbines in a potential Phase 2, Clarke said.

Mi’kmaq involvement

The Mi’kmaq First Nations have a notable role in Goose Harbour, participating in the initial fundraising with Stern Partners and owning a part of the project.

The loan from the CIB will be used so the Mi’kmaq First Nations can take a 10 per cent stake via the WMA.

It marks the second Indigenous equity loan from the CIB to the organization, following a deal for an energy storage project in Nova Scotia.

“By acquiring a stake in this groundbreaking initiative, we are not only contributing to Nova Scotia's transition to sustainable energy but also supporting industry, creating jobs and fostering economic development in our region,” Crystal Nicholas, the president of WMA, said in a release.

Clarke called the Mi’kmaq stake an "important step towards economic reconciliation" and building stronger partnerships with the local First Nations.

Indigenous Canadians are increasingly participating in clean energy development. The vast tracts of land needed to site solar, wind and battery projects will often cross into Indigenous territories, requiring the consent of the owners. The developments are viewed as a way to support local economies with jobs, training and revenue from energy generation.

An example of the strategy is First Nation Power Development Inc., which is developing two solar projects in Alberta. The framework from the company includes securing the financing, dealing with regulators and securing community involvement.