Situated near the city of Winnipeg, the Riel electrical station is at the junction of major high voltage power lines.
The contract includes design, supply, installation and commissioning of four synchronous condensers each rated 250 MVAR.
The condensers will offer grid stability as major powerhouses are far from consumption centers. Voith said they are sealed to enable for hydrogen cooling and do not generate real energy with no turbines attached.
The civil work is due to start later this year and the four units are expected to start services in 2018.
Voith will be lead the commissioning activities while Stuart Olson will undertake the civil, infrastructure work and mechanical & electrical balance of plant including the equipment installation work.
Voith Hydro (Canada) president and CEO William Malus said: "We are extremely proud and excited to work together with our consortium partner, Stuart Olson, on this innovative project.
"It represents an important new reference for Voith and will position our company well for new opportunities, not only in Canada, but also globally in the synchronous condensers market."
Image: The Riel electrical station is located at the junction of major high voltage power lines. Photo: courtesy of Voith.
