Fort Nelson First Nation to receive $1.2 million via Indigenous Natural Resource Partnerships Program

FORT ST. JOHN, B.C. — Fort Nelson First Nation’s Tu Deh-Kah (TDK) Geothermal project got a big $1.2 million hand from the federal government. 

While announcing the launch of the $5 billion Indigenous Loan Guarantee Corporation on February 21st, federal minister of natural resources Jonathan Wilkinson said Fort Nelson First Nation (FNFN) would receive $1.2 million via the government’s Indigenous Natural Resources Partnerships (INRP) Program.

According to a press release, TDK is one of seven First Nations-led forestry and energy projects in B.C. to receive a combined $6.2 million through the INRP.

FNFN will use the money to advance the TDK project, according to project coordinator and media specialist Andrea Warren.

It will go toward gas well testing, environmental studies, engineering, permitting, design and continued community engagement for TDK.  The planning is the fourth of five stages. 

Warren says if all goes according to plan, stage five, involving drilling and the beginning of construction and commissioning of the power plant, will start later this year. 

Using heat energy from underground, TDK will provide clean energy for an estimated 10,000 homes.  

The project uses abandoned gas wells to harness heat from below the surface in the depleted gas field located 14 kilometres southwest of Fort Nelson.

That heat will then be used to generate energy via a binary power plant producing a minimum level of clean demand electricity, known as baseboard power, for the community and surrounding area.

It was first announced in 2019 and is owned by the FNFN’s economic arm, Deh Tai Limited Partnership (LP). 

Warren adds the Canada Indigenous Loan Guarantee Corporation – a separate initiative to the INRP – could also help TDK secure lower interest rates and financing costs. 

It supports Indigenous groups which could benefit from natural resources development on their territory, providing $5 billion in loan guarantees to “help unlock” capital needed for Indigenous communities to pursue ownership of industry and resource projects.

The corporation was first announced last December. 

Should TDK qualify for loan guarantees, this would provide more sturdiness to the project’s  long-term financial sustainability and greater Indigenous ownership in clean energy.

“We welcome this initiative and will explore how it can support TDK’s development,” said Warren.

Deh Tai chief executive officer Jim Hodgson said the government funds received through the INRP reflect FNFN “showcasing leadership” in Canada’s geothermal industry.

“The TDK geothermal energy project is a vital step toward energy security and reliability in northeastern BC,” explained Hodgson. “We are progressing in project design, permitting, consultation and BC Hydro negotiations.

“We are proud to lead the way in advancing sustainable, renewable energy solutions for our people and the broader economy.”

According to a government website, INRP expansion was announced in the 2022 budget, with an $80 million commitment over five years for Indigenous-led resource and energy projects across Canada.

The money announced on Friday was first confirmed in 2023, says Warren.

The timetable for the project’s completion is slated to be late 2026 or early 2027.