Canada Unveils North America’s Largest Clean Energy Investment to Power Labrador’s Low-Carbon Future

Canada is moving to dramatically expand its clean electricity capacity, with Prime Minister Mark Carney announcing a package of up to $10 billion in federal financial support for major energy and transmission projects in Labrador. The initiative, enabled by a new agreement between Hydro-Québec and Newfoundland and Labrador Hydro, forms part of nearly $70 billion in combined construction projects—described as the largest clean energy investment in North American history.

At the center of the plan is the 2,700 MW Gull Island hydroelectric project, alongside upgrades to Churchill Falls that could increase its capacity by up to 2,500 MW. More than 660 km of new transmission infrastructure will connect the Churchill River projects to Québec, while a new 735 kV transmission line will support growing electricity demand and industrial development in Labrador West. The package also includes proposed development of 2,000 MW of onshore wind.

The investment is closely linked to the Labrador Trough’s critical minerals potential, with nearly $20 million in federal funding supporting feasibility work for mining-enabling infrastructure. Expanded clean power could help electrify mining operations and strengthen Canada’s position in low-carbon steel and critical mineral supply chains.

The government is also referring the Labrador Trough Clean Power, Critical Minerals, and Infrastructure Corridor to the Major Projects Office for coordinated federal review. The projects are intended to create thousands of jobs, support Indigenous participation, and help Canada double electricity grid capacity by 2050.

Beyond adding generation, the initiative signals a broader shift toward integrating clean power, transmission, industrial electrification, and critical minerals infrastructure as foundations for Canada’s next phase of economic decarbonization.