Canadian officials finalized a federal loan guarantee for Nalcor Energy’s Lower Churchill project in early December. The guarantee will apply to up to C$5 billion (US$4.7 billion) of project debt for the 824-MW Muskrat Falls Hydroelectric Generating Station, Labrador Transmission Assets and Labrador-Island Transmission Link.
Nalcor is developing the Muskrat Falls station, located on the Churchill River in Labrador. The Labrador Transmission Assets will be a 315-kV, high-voltage alternating current transmission interconnection between Muskrat Falls and the existing upstream Churchill Falls Hydroelectric Generating Station. The Labrador– Island Transmission Link will be a 1,135-km, high-voltage direct current transmission line between Muskrat Falls and the Island of Newfoundland with a transfer capability of 900 MW.
The projects will make a major contribution to meeting Atlantic Canada’s energy needs while reducing annual CO2 emissions by up to 4.5 megatonnes per year. Nalcor and Emera Inc. estimate the total projected cost of the Lower Churchill project to be about C$7.7 billion (US$7.3 billion). Nalcor will construct and own 100% of the Muskrat Falls station and will also build the Labrador–Island transmission Link through a joint venture with Emera.
— Hydro Review January 2014