Cantech Letter logo

The Governments of Canada and the Northwest Territories, along with the Northwest Territories Power Corporation, invest in Fort Simpson’s energy future

Department of Housing, Infrastructure and Communities
Wednesday at 7:05pm ADT · October 14, 2026 5 min read

FORT SIMPSON, NT, Oct. 14, 2026 /CNW/ — The Government of Canada, the Northwest Territories Power Corporation (NTPC) and the Government of the Northwest Territories (GNWT) are investing in local energy infrastructure that will strengthen energy security, support economic development, and improve the quality of life for residents and businesses in Fort Simpson.

The Government of Canada is contributing more than $31.3 million through the Investing in Canada Infrastructure Program’s (ICIP) Arctic Energy Fund, while the NTPC is contributing more than $10.4 million toward a new liquefied natural gas power plant. The GNWT has provided key funding applications and prefeasibility studies to evaluate technical and economic viability to ensure requirements are met and appropriately considered.

The existing diesel plant in Fort Simpson has become vulnerable to erosion along the Mackenzie River and is nearing the end of its operational life. To address these challenges, the project will support the construction of a combined generation facility that will primarily generate power using liquefied natural gas (LNG). The new power plant will include two 1.6 MW liquefied natural gas (LNG) generation units and two backup diesel generation units. The plant is forecast to run on 90% LNG. The new facility will also include an LNG storage and vaporization facility, a bi-fuel boiler for heating purposes, bulk diesel fuel storage, a substation, and associated auxiliary equipment. The backup diesel generators from the existing plant will be relocated to the new facility.

The new plant will help reduce reliance on diesel generation, improve energy reliability and energy security, and support a cleaner energy future, with an expected reduction in greenhouse gas (GHG) emissions, a part of the GNWT’s priorities under its 2030 Energy Strategy.

Reliable and efficient energy infrastructure is critical to supporting economic development, community well-being, and long-term sustainability in northern and remote communities. This project will provide Fort Simpson with modern power infrastructure designed to meet the community’s energy needs for years to come.

Quotes

 “Communities need reliable electricity, no matter where they are. By investing in modern energy infrastructure, we’re supporting the people of Fort Simpson as they raise their families, grow their businesses, and build a stronger future. Thanks to a federal investment of over $31 million, this new LNG power plant will reduce emissions by lowering reliance on diesel and ensure the community has dependable power for years to come.”

The Honourable Rebecca Alty, Minister of Crown-Indigenous Relations

“The new liquefied natural gas power plant in Fort Simpson is an important investment in reliable, modern energy for the community and the Northwest Territories. It will provide a dependable source of power while supporting a more efficient energy system and reductions in greenhouse gas emissions. This project represents progress and an opportunity to build on Fort Simpson’s resilience and economic potential. Investments in reliable infrastructure create a stronger foundation for local opportunities and help position communities for long-term growth and prosperity.”

Caroline Wawzonek, Minister Responsible for Strategic Infrastructure, Energy and Supply Chains

“This investment is an important step toward a more reliable and sustainable energy future for Fort Simpson. Relocating the power plant away from the eroding riverbank will help protect critical infrastructure, while reducing reliance on diesel will lower emissions and support a more efficient energy system. Reliable electricity is essential for our residents, local businesses and future economic opportunities. This project took time to come together, and I am grateful to have worked on it throughout my three terms as the MLA for Nahendeh with the various Ministers and NTPC Presidents.  I want to thank the Government of Canada, the Government of the Northwest Territories, and the NWT Power Corporation for working together to address Fort Simpson’s energy needs. This partnership represents a meaningful investment in the community’s future, its infrastructure, and the well-being of the people who call Fort Simpson home.

Shane Thompson, MLA for Nahendeh

“The new plant will resolve several issues that will enhance quality of life for our Fort Simpson customers, including a reduction in greenhouse gas emissions, less noise in the community and places the new plant away from the riverbank, which has seen erosion over the years. The new plant will also be better able to integrate future renewable projects into the local electricity grid.“ 

Cory Strang, President and CEO of the Northwest Territories Power Corporation

Quick Facts

  • The Government of Canada is investing $31,312,500 through the Arctic Energy Fund of the Investing in Canada Infrastructure Program. The Northwest Territories Power Corporation (NTPC), which operates at arm’s length from the Government of the Northwest Territories, is contributing $10,437,500.
  • This fund supports energy security in communities in the North, including Indigenous communities, by investing in upgrades to existing fossil fuel-based energy systems, as well as supplementing or replacing these systems with renewable energy options.
  • Including today’s announcement, six infrastructure projects under the Arctic Energy Fund have been announced in the Northwest Territories, with a total federal contribution of more than $81.7 million and a total contribution of more than $27.2 million from the territory and other partners.
  • The Government of Canada is taking concrete actions to strengthen the economy by investing in Canadians and supporting Canadian businesses.
  • Federal actions are creating good jobs, accelerating home building and helping communities grow across the country.

Associated Links

Investing in Canada Plan – Building a Better Canada

https://housing-infrastructure.canada.ca/plan/about-invest-apropos-eng.html 

Rural and Northern Communities Infrastructure

https://housing-infrastructure.canada.ca/plan/rnc-crn-eng.html 

Housing and Infrastructure Project Map

https://housing-infrastructure.canada.ca/gmap-gcarte/index-eng.html 

Follow us on X, Facebook, Instagram and LinkedIn

Web: Housing, Infrastructure and Communities Canada

SOURCE Department of Housing, Infrastructure and Communities

displaying rededs