The Government of Canada will provide or purchase a loan guarantee for the lower Churchill River clean energy projects in Newfoundland and Labrador.

These clean energy projects involve the Muskrat Falls hydroelectric generating station and three power transmission lines.

According to the government, the power projects will help reduce up to 4.5 megatonnes of carbon dioxide emissions in the country and generate up to $3.5bn in economic benefits.

Canadian minister of intergovernmental affairs Peter Penashue said that the move is an important step to realizing the full potential of one of North America’s most ambitious clean energy projects.