Calgary: The Alberta Indigenous Opportunities Corporation (AIOC) announced September 9 that as its first commitment it has provided a loan guarantee to a consortium of six Alberta First Nations to enable their participation in the Cascade Power Project, a 900MW combined cycle natural gas fired power plant located near Edson, AB. (See “Siemens to supply 2 turbines, above). The transaction is a culmination of intensive efforts by multiple parties including Kineticor Resource Corp., OPTrust and Backwoods Energy Services (Backwoods), which is owned by the Alexis Nakota Sioux Nation.
The First Nations will invest through a holding vehicle owned by Alexis Nakota Sioux Nation, Enoch Cree Nation, Kehewin Cree Nation, O’Chiese First Nation, Paul First Nation and Whitefish Lake First Nation.
Alberta Indigenous Opportunities Corporation (AIOC) is a provincial Crown corporation established in November 2019. The mandate of the AIOC is to fund natural resource projects such as Cascade, which will benefit Indigenous communities through participation in major energy projects. With up to $1 billion in loan guarantees, the AIOC helps reduce the cost of capital for Indigenous groups and makes it easier to raise capital to invest in natural resource projects.
“As the first entrepreneurs, First Nations and Metis people deserve to be at the forefront of energy development in our province,” said Premier Jason Kenney. “Financial security through the AIOC for these participating First Nations in the Cascade Power Project will contribute to our energy grid, get people in Alberta back to work and put First Nations on a path to prosperity.”
“Securing this deal is transformational for the First Nations involved and creates the national blueprint for Indigenous communities to acquire ownership in major energy and infrastructure projects,” commented Chief Tony Alexis, Alexis Nakota Sioux Nation. “Thank you to the AIOC, Kineticor, OPTrust and particularly my team at Backwoods Energy Services for the tireless work in structuring and negotiating this transaction on behalf of the six First Nations communities.”