Capstone Infrastructure Corporation and the shíshálh Nation have entered into a formal partnership to own and operate the Sechelt Creek run-of-river power project in Salmon Inlet.
Capstone said this week that the agreement, which replaces an informal working relationship between shíshálh and the company, “recognizes and gives effect to shíshálh’s indigenous rights and title in view of the facility’s ongoing operation in their territory, enshrines collaborative decision-making and governance, and will result in equity ownership and profit sharing for the project, which will provide significant economic benefits to shíshálh.”
The Sechelt Creek IPP was built in the mid-’90s and is one of the oldest on shíshálh territory. It’s also the site of a rehabilitated salmon spawning channel that’s been instrumental in the return of pink salmon to the area. The channel was one of joint initiatives Capstone credits with helping build a positive relationship with the shíshálh Nation.
Shíshálh Nation and Capstone call the agreement “the successful result of a positive 20-year history of collaboration on the project” as well as a “modernization” of the relationship.
“We are pleased to now be official partners in this renewable energy project,” said Chief Calvin Craigan, who will be succeeded by Warren Paull April 1, in a release announcing the agreement.
“Capstone has worked with us to come to an agreement that recognizes and respects our role as an indigenous government. This long-term partnership is an example of how we are working with industry and ensuring the stewardship of our lands. We have a greater role in the operations of this facility going forward.”
The Sechelt Creek IPP has won several awards for environmental stewardship, including efforts to enhance and protect the salmon run in Sechelt Creek. “These projects and the partnership between Capstone and the Nation will ensure salmon and trout resources in Sechelt Creek continue to be protected for future generations,” said shíshálh resource director Sid Quinn.
The 16-megawatt facility began operation in 1997. Capstone’s electricity purchase agreement with BC Hydro recently expired and was extended on an interim basis on Feb. 28.
Capstone officials told Coast Reporter the interim extension allows the company and BC Hydro to continue negotiating a new, or possibly amended, long-term agreement. They also said it’s likely the price Hydro pays for the electricity will be lower than under the previous agreement.
