Cenovus Energy Signs Power Purchase Agreement with Cold Lake First Nations

Cenovus Energy Inc. has entered into a power purchase agreement (PPA) to buy solar power and the associated emissions offsets from a partnership between Cold Lake First Nations (CLFN) and Elemental Energy Inc.

The PPA is for the output of a 150 MW project in southern Alberta that is expected to begin producing electricity in 2023. Cenovus has signed a 15-year PPA for the full output of the facility, providing the offtake contract necessary for the construction of the project and ultimately helping Cenovus mitigate its scope 2 emissions. Scope 2 emissions are those represented by purchased or acquired electricity, steam, heat and/or cooling. In Cenovus’s case, these emissions primarily result from purchased electricity.

CLFN, part of the Denesuline Nation with 3,000 members and reserve lands around Cold Lake and Primrose Lake near some of Cenovus’s oil sands projects in northern Alberta, has been a long-time supplier of services at Cenovus’s projects. Vancouver-based Elemental Energy is a privately held developer, investor and operator of renewable energy projects, including two existing solar facilities in Alberta.

“Cold Lake First Nations is excited to partner with Elemental Energy and Cenovus on this important project. As stewards of the land, our Nation fully supports sustainable renewable energy development respecting environmental, economic, cultural and social contexts, while realizing long-term economic benefits through an ownership stake in the project,” says Cold Lake First Nations Chief Roger Marten. “The project exemplifies the relationships we’ve built with our partners and creates an innovative path for economic reconciliation.”

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