Atlin hydro expansion project is 'shovel-ready,' but still $86M short

The Tlingit Homeland Energy Limited Partnership said its Atlin hydro expansion project in northern B.C. is "shovel-ready" but it still has a few major missing puzzle pieces.

One of those missing pieces continues to be funding. Peter Ramsden, the project's director, said construction is expected to cost around $360 million dollars. He said that means they're about $86 million short of what's needed to move the project forward.

But Ramsden is optimistic the funding will be secured and that they could be breaking ground this coming March.He said they're working with federal, provincial and territorial governments to find the cash.

"We certainly understand that it's a major ask," Ramsden said. "But it's something that many northerners already understand. Construction in the North is expensive and especially projects that have a life cycle like ours."

The Yukon government has long touted the hydro expansion project which would see an increase in the amount of renewable energy produced in nearby Atlin, B.C., and sold to Yukon Energy as a key part of its strategy to reduce emissions. The project would supply Yukon Energy with clean power during winter and reduce the territory's reliance on diesel generators.

The project would also include the construction of a transmission line from Atlin to Jakes Corner in the Yukon, construction of a substation, and upgrades to the transmission line from Jakes Corner to Whitehorse.

Yukon remains committed to the project

John Streicker, Yukon's energy minister, said the territorial government is still committed to giving the project a $50-million grant. But, he said, there are requirements that still need to be met before handing over the money.

"There still is a question that I haven't yet heard the answer to, but I know that Carcross Tagish [First Nation] had some outstanding concerns and I'd need to check in where those are at. But the big issue is the funding gap."

Streicker said the territory is in discussions with the Canada Infrastructure Bank and the federal government to see if there is a funding model that can come together on the project. An example of those negotiations, he said, could be borrowing more money from the infrastructure bank in exchange for adjusting the power purchase agreement.

Streicker said he was "pretty excited" to hear that the project had reached a resolution and was now receiving support from the Taku River Tlingit First Nation.

Yukon Liberal MP Brendan Hanley said the federal government has committed $193 million to the project, including $80 million from the Canada Infrastructure Bank. But, he said, the longer it takes to fill the funding gap, the harder it'll be.

He also said the project needs the support of Carcross Tagish First Nation (CTFN) to move forward.

"We also have to have more certainty on the partnership, or potential agreement between Taku River Tlingit and Carcross Tagish First Nation over the transmission line," Hanley said. "And my understanding is that that is not yet clear."

"In order to be able to map out the shovel-readiness of the entire project we need to know that there is that kind of agreement from CTFN because of course that is the land in which the line would go," he said.