May 13, 2018 2:25 pm
Updated: May 14, 2018 1:25 pm

Agreement signed for First Nations-led flare gas projects worth estimated $300M

First Nations Power Authority has signed an agreement to source 20 megawatts of flare gas power generation projects.

File / Global News

SaskPower says it signed a new agreement on Friday that represents a significant opportunity for flare gas power projects led by First Nations communities and businesses.

The agreement with the First Nations Power Authority (FNPA) is worth an estimated $300 million of potential revenue over two decades.

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READ MORE: SaskPower turning waste flare gas into electricity

“This agreement and long-term commitment between SaskPower and Saskatchewan First Nations is exactly what FNPA was created to develop,” FNPA CEO Guy Lonechild said in a press release.

“Together, we are saying that our First Nations will be essential in the power future of this province, from an economic and environmental perspective.”

The projects will take waste flare gas from oil and gas operations and use it to produce electricity for the Saskatchewan power grid.

READ MORE: City of Saskatoon and Saskatoon Tribal Council ink MOU for hydropower station

Once FNPA has secured First Nations-led projects, power purchase agreements will then be negotiated for 20 megawatts of electricity to be sold to the Crown corporation.

“SaskPower is committed to progressive Aboriginal relations and procurement,” said SaskPower president and CEO Mike Marsh in a press release.

“Through this agreement and the hard work of the First Nations Power Authority, we are delivering on this commitment today and for the foreseeable future.”

Officials said FNPA has already been working with Flying Dust First Nation, near Meadow Lake, on developing a flare gas power generation opportunity.

© 2018 Global News, a division of Corus Entertainment Inc.

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