FNPA Renewable Energy Projects

Adhering to the terms and conditions of the 2012 Master Agreement between FNPA and SaskPower, FNPA and SaskPower have worked collaboratively to identify power generation development opportunities that will benefit First Nations. Currently, two such opportunities—First Nation Opportunity Agreements (FNOAs) or “set- asides’’—totaling 40MW of generating capacity are under development. Of the 40 MW set-aside, there are 20 MW worth of Flare Gas and 20 MW worth of solar currently under development and expected to achieve commercial operations in the next one to two years.

FNPA is continuing to explore other project opportunities which could potentially lead to new First Nations Opportunity Agreements. Included in these is an update on the collaboration with TC Energy to develop power generation from Waste Heat Recovery.

Solar

Solar has proved to be very successful, and all the teams involved have worked hard over the past year to finalize the various agreements needed to make two 10 MW solar projects a reality. FNPA is proud of the work everyone has done from the initial FNOA negotiations to an in-house developed First Nations procurement (General Membership Opportunity or GMO) process which was used to select the First Nations partners. Everything has come together very quickly and both projects are expected to be in service by the end of next year.

Awasis Solar Project

The Awasis Solar Project is a 10 MW solar facility that will be located on Cowessess First Nation reserve land just east of Regina Saskatchewan. Cowessess First Nation and Elemental Energy entered into a formal partnership to develop, construct, own and operate the project.

The Proposal Submission for the Awasis Solar LP was submitted to SaskPower in October 2019. The submission was approved by SaskPower in March 2020. The project team has a target commercial operation date of late 2021 and are well on their way to achieving this milestone.

This project is 51 per cent owned by Cowessess First Nation through their economic development arm, Cowessess Ventures Ltd. owns Awasis Neheyawewini Energy Development Corporation (ANDEDC), a corporation established in 2010 to pursue utility scale energy projects on behalf of the nation.

To date, two Indigenous owned companies have been engaged. Misty Clifton will carry out environmental and geotechnical studies, with legal services provided by Brabant Law. An Engineering, Procurement (EPC) and Construction Plan is being developed and the EPC contract will be awarded through a public tender process, maximizing Indigenous vendor opportunities wherever possible.

The project will enable the nation to build governance, finance and business capacity in the energy sector. In addition to construction employment opportunities, Cowessess First Nation has a long-term goal for a community member to be employed to provide the ongoing maintenance of the project.

Learn more at http://elementalenergy.ca/ portfolio/awasis-solar/

In October 2020, the Power Purchase Agreement with SaskPower was signed. This is another major milestone which will enable project engineering, procurement and construction to begin. First Nations Power Authority will receive a revenue stream in the form of a royalty payment based on electricity produced by the project over the 20-year term of the PPA.

Pesâkâstêw Solar Project

The Pesâkâstêw Solar Project is a 10 MW solar farm under development in the city of Weyburn, Saskatchewan, approximately four km southwest of the city of Weyburn, on land with low environmental sensitivity. In late 2018, George Gordon First Nation, Star Blanket Cree Nation and Natural Forces Inc. entered into a formal partnership to develop, construct, own and operate the 10 MW solar project and chose Pesakastew or “rising-sun” as the partnership name.

This project will require approximately 85-100 acres (34-41 ha) of land and will connect directly to the SaskPower substation adjacent to the site. The project will be able to provide electricity to approximately 2,400 homes and, in doing so, will displace 18,860 tonnes of CO2 equivalent annually.

In September 2019, FNPA received a formal Proposal Submission from the Pesâkâstêw partnership. The proposal submission which was then submitted to SaskPower, who approved it in January 2020. The project has a targeted commercial operation date of 2021 and the project team is well on their way to achieving this milestone. Starblanket Cree Nation (Red Dog Holdings) and George Gordon First Nation (George Gordon Developments) own 51 per cent of this project.

In addition to providing much-needed revenue for the communities to reinvest in economic and community development, as well as education and training, the project will provide opportunities for contracting and capacity building.

Learn more at http://www. pesakastewsolarproject.ca/

Carbon Neutral Technologies

Flare Gas Power Generation, Flying Dust Power Corporation (FDPC) Flare Gas to Power Project

Flying Dust Power Corporation (FDPC) Flare Gas to Power Project will produce 20 MW of carbon neutral generation, which will help the province reduce greenhouse gas emissions and provide reliable electricity to the SaskPower grid. This is one of the projects cited by the Ministry of Energy and Resources as complementary to its Oil and Gas Methane Reduction Regulations. The conservation of associated methane gas from oil production used for electricity generation will contribute to the reduction of greenhouse gas emissions in Saskatchewan.

The origins of the project date back to 2014, when FNPA and Flying Dust First Nation (FNPA) first began to discuss the possibilities. Hard work and persistence eventually paid off, and in the spring of 2018 FNPA and SaskPower signed a First Nation Opportunity Agreement (FNOA), which set-aside up to 20MW of flare gas based power exclusively for First Nation development. In early 2019, Flying Dust First Nation and Genalta Power Inc. entered into a formal partnership arrangement to develop, construct and operate 20MWs of set- aside based flare to power electricity generation.

Based on this opportunity, the Flying Dust First Nation (FDFN) formed Flying Dust Power Corporation (FDPC) and selected Genalta Power Inc. (Genalta) as a partner to develop, build, own and operate up to 20 MW flare gas to power generation (the Flying Dust Project).

Genalta has a proven track record, having designed, built and operated nine power plants with a total generating capacity of 65.6 MW. Recently, Genalta announced an agreement with Capstone Infrastructure which will provide financial support for the Flying Dust Project.

Significant progress has been made by the FDPC team over the past 12 months, despite the uncertainty in the oil sector due to falling prices and the COVID-19 pandemic. Sites have now been selected in optimal locations and a formal proposal has been submitted to FNPA, with two of the three sites already approved by SaskPower. Approval of the third site is expected before the end of the year.

The sites proposed and technology selected will meet the goals of the 20 MW FNOA set-aside:

Sustainable, long term and meaningful participation for First Nations in the power industry through Flare Gas to Power projects.
No net new emissions in Saskatchewan.
Supporting local businesses and the oil and gas industry.
Consume normally flared gas from upstream and midstream oil production.

It is anticipated the Power Purchase Agreements with SaskPower will be in place by the end of 2020. This will enable formal gas supply agreements to be firmed up with oil producers and the award of Engineering, Procurement and Construction contracts. Two of the three sites selected are expected to begin producing power as early as August 2022.

First Nations Power Authority will receive a revenue stream in the form of a royalty payment based on electricity produced by the project over the 20-year term of the PPA.

Waste Heat Recovery

First Nations Power Authority and TC Energy (TCE) have signed a Memorandum of Understanding (MOU) to begin exploring opportunities to develop a project that would capture waste heat, mainly from some of TCEs gas compressor stations along the Saskatchewan section of its Canada Main line.

Waste heat recovery is the process of reusing heat energy produced during the normal operations of the gas compressor station that would otherwise be released into the atmosphere. This waste heat is then used as a ‘fuel’ to generate electricity, reducing energy costs and CO2 emissions, while simultaneously increasing energy efficiency.

In July 2019, a Partnership Identifications Process (PIP) was undertaken to survey all FNPA General members to gauge interest in the project. The result of that survey was that many First Nations and Tribal Councils support FNPA in its exploration of this opportunity.

A pre-feasibility assessment has been completed and the opportunity has been presented to SaskPower. In addition, FNPA has explored options for federal funding which would help to offset the capital cost of the project and make it more competitive with SaskPower’s traditional options.

Coal Replacement in Saskatchewan by 2021 and 2024 at Boundary Dam Units 4 and 5

FNPA looks to advance projects through a new Master Agreement with SaskPower in 2021, which will ensure that Saskatchewan’s Clean Energy Future is not replaced by other fossil fuels such as natural gas. Units 4 and 5 were previously contemplated for carbon capture and storage but the business case to pursue that technology is no longer there.

SaskPower and FNPA are contemplating other power generation opportunities where required. These opportunities may include wind, solar, battery storage, biomass, geothermal, small hydro, waste heat recovery, SMRs and additional flare gas to power as well as invite those with project aspirations to contact FNPA.

Additionally importing power from Manitoba Hydro as a clean and reliable source of power is under construction, but that will require significant investment in additional transmission infrastructure. FNPA is interested in advancing Indigenous ownership of major power generation and transmission infrastructure in the immediate and foreseeable future for the benefit of our members.

FNPA is recognized as a significant and strategic partner organization to Saskatchewan’s First Nations, SaskPower and other key stakeholders in proactively advancing economic reconciliation that leads to improved socio- economic outcomes for First Nations and Province of Saskatchewan.

First Nations Power Authority and SaskPower ‘Powering Our Future’

The existing Master Agreement between SaskPower and FNPA will reach its end of term on June 30, 2022.

As a replacement to the Master Agreement document, the parties have agreed to participate in a joint FNPA/ SaskPower working group to lead the development of a new Memorandum of Understanding (MOU). Under the umbrella of the new MOU, the parties will work toward the development of a new Master Services Agreement, Master Power Agreement and Master Funding Agreement, as required. FNPA and SaskPower will:

Identify and support economically viable pathways to concluding Power Purchase Agreements in Power Generation/Supply and Transmission projects;
Establish General Member Opportunities (GMO), Industry Member Opportunities (IMO), Project Identification Program (PIP) parameters and pathways to explore First Nations’ equity ownership of major power generating and transmission assets to First Nations;
Establish strong Indigenous-owned Independent Power Producer capacity amongst FNPA General and Industry Members so that potential partnerships, including Indigenous ownership in energy infrastructure, can be pursued; and
Establish Saskatchewan First Nations as industry leaders in power generation, power transmission and distribution, distributed energy systems management, energy efficiency and conservation;
Create wealth through opportunity and improve quality of life for Saskatchewan First Nation communities;
Build capacity, create benefits, provide employment and business opportunities for Saskatchewan First Nation communities; and
Positive contribution to reconciliation of differences between First Nation people and rest of Saskatchewan.