Prime Minister Carney announces the largest clean energy investment in North American history

ST. JOHN'S, NL, Aug. 17, 2026 /CNW/ -- In a more dangerous and divided world, Canada's new government is focused on what we can control: building a stronger, more independent, and more sustainable country.

Canada is starting from a position of strength. We have what the world wants. We have the natural resources, critical minerals, and clean power that will build this century. We have the workers and the ingenuity to turn that potential into strength. We understand we can build faster and bigger when we work together. And we have trust, the most valuable commodity in an increasingly volatile, unreliable world.

We have everything we need to build the future we want.

Today, the Prime Minister, Mark Carney, alongside the Premier of Québec, Christine Fréchette, the Premier of Newfoundland and Labrador, Tony Wakeham, and the CEOs of Hydro-Québec and Newfoundland and Labrador Hydro, announced a historic agreement to upgrade and expand the Churchill Falls Generating Station and develop the Gull Island project and related transmission, building one of the largest electricity projects in North America.

As part of this agreement, the federal government will provide $10 billion in federal financing to:

• Upgrade and expand the Churchill Falls Generating Station.
• Develop the massive Gull Island hydroelectricity project.
• Unlock co-investment opportunities with the Innu of Labrador in a major new Labrador onshore wind project.
• Build associated transmission lines.

Together, these projects represent the largest clean energy investment in North American history, at nearly $70 billion. They will generate 14,000 megawatts of clean, renewable power – nearly tripling the current generating capacity of Churchill Falls. That is enough power to light, heat, and cool all the homes in Toronto, Montréal, and Vancouver combined. These projects will support 23,000 jobs – from the skilled trades to engineering – and contribute $31 billion to Canada's GDP through the early 2040s.

The Labrador Trough is a world-class mining region across Newfoundland and Labrador and Québec, with significant sources of high-purity iron ore. To harness this strategic asset and create high-paying careers for Canadian workers, the government announced the referral of the Labrador Trough Clean Power, Critical Minerals and Infrastructure Corridor to the Major Projects Office (MPO). The MPO will coordinate and structure federal financing, accelerate permitting requirements, and work with Indigenous Peoples to forge meaningful partnerships.

In addition, Canada's new government will support strategic, pre-development projects in the Labrador region, funded under the First and Last Mile Fund (FLMF) through Natural Resources Canada. This includes the following projects:

• Labrador West Transmission Expansion to assess the transmission infrastructure needed to connect critical minerals mining operations in western Labrador to the electricity grid, supporting regional opportunities and mine electrification.
• Kami Iron Mine Partnership's project to undertake planning and feasibility work for the transportation and energy infrastructure required for the large-scale Kami iron ore project near Wabush, Newfoundland and Labrador.
• Focus Graphite's project to undertake pre-construction work for a new transmission line and road connecting the Lac Knife graphite project to Hydro-Québec's power grid, advancing the development of projects that will support the battery and energy storage technologies this country and our allies need.
• SFP Pointe-Noire's project to expand critical minerals handling capacity and related rail infrastructure, strengthening a key transportation gateway for mining production in the Labrador Trough.

We are making Canada the best place in the world to build and invest in clean energy. By combining the Clean Economy Investment Tax Credits, efficient project approvals, cooperation agreements with provinces and territories, strategic investments, and attractive financing, we are giving builders the certainty to build big and move fast.

Today's agreement realises the enormous potential of Canada when we build together. This is cooperative federalism at work.

In a more dangerous and volatile world, we're choosing to build clean, affordable, and reliable energy systems, in partnership with all Canadians, for all Canadians.

Quotes
"Canada is extending its unique advantage in clean, reliable, and affordable power. Because when we master energy, we master our destiny. Through cooperative federalism, we are unlocking our immense potential, building big, building sustainably, building in partnership, and building Canada strong for all."
-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"In the current geopolitical context, it is vital for every nation to secure its energy future. I am very proud to announce today the conclusion of this new agreement, which is a priority for Québec, particularly for generations to come. Through this partnership, we are supporting the energy transition and enabling the growth of our economy through renewable energy, while ensuring our energy independence."
-- Christine Fréchette, Premier of Québec

"This is a win-win-win for Newfoundland and Labrador, the federal government, and Québec. I want to thank Prime Minister Carney and Premier Fréchette for their leadership throughout this process. We are finally replacing the notorious 1969 Churchill Falls deal and the 2024 MOU with a new deal that will guarantee us more power, more value, and more transmission. Newfoundlanders and Labradorians will finally be the primary beneficiary of our own resources, with complete control over whether we use our power to develop our economy or sell to outside markets. Today is not about what we can tear up, it's about what we can build up. It is now time for us to roll up our sleeves and get to work to build a better and brighter future for all of us."
-- The Hon. Tony Wakeham, Premier of Newfoundland and Labrador

Quick facts

• Today's agreement is the largest clean energy investment in North American history, nearly tripling the current generating capacity of Churchill Falls. Together, these projects will deliver 14,000 megawatts of clean, renewable power, support 23,000 jobs in the construction phase alone, and contribute $31 billion to Canada's GDP through the early 2040s.
• The agreement advances:
  • Canada's National Electricity Strategy, which aims to double the capacity of our grid by 2050 and supply clean, reliable, affordable power across the country for decades to come.
  • The Atlantic Energy Strategy, which was referred to the Major Projects Office in the fall of 2025. The Strategy focuses on developing renewable and non-emitting energy across Atlantic Canada – onshore and offshore wind, nuclear, and hydro – to meet rapidly growing demand across Eastern and Atlantic Canada and beyond.
• Today's investments strengthen the interprovincial grid and the export infrastructure that carry clean, affordable power and Canadian resources to markets at home and abroad.
• The Labrador Trough is a world-class mining region stretching across Labrador and Québec. With significant sources of high-purity iron ore, it is a strategic asset for decarbonising global steel supply chains, reinforcing Canada's leadership in both renewable energy and critical minerals, and giving Canada a significant competitive advantage in the transition to a cleaner economy.
  • Strategic, pre-development projects in the Labrador region will be supported through the First and Last Mile Fund (FLMF). The FLMF is backed by $1.5 billion in federal funding announced in Budget 2025. It supports infrastructure that unlocks new mines and moves Canada's resources to customers at home and abroad. Recognising that most critical minerals deposits and enabling infrastructure projects in Canada are located on Indigenous territories, the FLMF makes specific funding available to enable Indigenous leadership, engagement, and participation throughout the mining value chain.
• On clean energy, Canada already leads from a position of strength: the lowest residential electricity costs in the G7, the second-lowest industrial electricity costs in the G7 and the OECD, and the second-highest share of clean electricity generation in the G7. Today, approximately 80% of Canada's electricity generation is non-emitting.
• To build on that advantage, Canada's new government is advancing strategic investments in the modernisation and expansion of the country's electricity infrastructure, including:
  • Major Clean Economy Investment Tax Credits for clean electricity, clean technology, and carbon capture, utilisation, and storage.
  • Strategic financing through the Canada Infrastructure Bank (with a $20-billion clean energy target), the Canada Growth Fund, and the Indigenous Loan Guarantee Program (envelope doubled from $5 billion to $10 billion).
  • A new Productivity Super-Deduction, enhanced tax incentives covering all new capital investment, which allows businesses to write off a larger share of the cost of these investments right away.

Related product

• Backgrounder: Prime Minister Carney announces the largest clean energy investment in North American history

Associated links

• Major Projects Office
• Powering Canada Strong: A National Strategy for an Electrified Canadian Economy

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]