Ecotrust Canada, First Nations launch green energy fund

COMMENT: This certainly isn't the first example of government buying equity in projects for First Nations. The Mackenzie Gas Pipeline is an example - though it still hasn't got much traction.

Kitimat LNG pipeline takes another step forward

News Release, Ecotrust Canada, May 15, 2009

Ottawa - The Honourable Chuck Strahl, Minister of Indian Affairs and Northern Development, today announced a contribution to the Aboriginal Energy Partnership to establish a new fund that will support Aboriginal involvement in renewable energy hydro projects in BC.

“Our Government is committed to encouraging Aboriginal participation in resource and energy projects across Canada,” said Minister Strahl. “Through this unique approach, we are maximizing the benefits of our investment in Aboriginal economic development by leveraging capital from the private sector and other partners.”

The Aboriginal Energy Partnership will work with Ecotrust Canada to establish the First Nation Regeneration Fund. This new fund will provide financing to Aboriginal businesses and communities in British Columbia to purchase an equity stake in run-of-river hydro projects, which produce renewable energy.

The Aboriginal Energy Partnership is a new partnership between two Aboriginal capital corporations, Tale’awtxw Aboriginal Capital Corporation and Tribal Resources Investment Corporation. Ecotrust Canada Capital, a subsidiary corporation of Ecotrust Canada, will manage the new $7-million fund. The Aboriginal Energy Partnership and Ecotrust Canada will each contribute $2 million to the new fund, with the remaining $3 million being provided by the Government of Canada.

“The Regeneration Fund is going to provide access to much needed capital for First Nations,” says Sandy Wong, General Manager of the Tale’awtxw Aboriginal Capital Corporation. ”The $7 million fund will help First Nations finance equity in independent power projects in B.C. It will help grow Aboriginal ownership in this critical sector of our economy.”

”We have two goals in launching the First Nation Regeneration Fund today,” says Ian Gill, President of Ecotrust Canada. “By investing in run-of-river hydro-electric projects, we want to generate green energy to help meet B.C.’s carbon reduction targets and we want to regenerate Aboriginal economies which are suffering from high unemployment and stagnation.”

“Run-of-river hydro power generation is one area where First Nations clearly have a competitive advantage,” says Peter Lantin, Chief Operating Officer of Tribal Resources Investment Corporation.”Our traditional territorities, especially on the coast, have an abundance of clean energy. In fact, the first project we are helping to finance is a two-megawatt run-of-river hydro project owned by the Taku River Tlingit First Nation near Atlin in northern British Columbia.”

The Government of Canada is providing support to the new fund through the Major Resource and Energy Development (MRED) Investments Initiative, a pilot program run by Indian and Northern Affairs Canada. These investments are designed to help Aboriginal businesses to partner in some of the most important economic developments and energy projects in the country.

Ecotrust Canada is an enterprising non-profit organization whose purpose is to build the conservation economy in coastal B.C. The organization works at the intersection of conservation and community economic development, promoting innovation and providing services for communities, First Nations and enterprises to green and grow their local economies. For more information, visit www.ecotrust.ca

Tale’awtxw Aboriginal Capital Corporation (TACC) supports the success of Aboriginal businesses within the Coast Salish Traditional Territories through business financing and support services. Its mission is to support, encourage and build Aboriginal economies that create sustainable self-sufficiency. For more information, visit www.tacc.ca.

Tribal Resources Investment Corporation (TRICORP) provides business consulting and financial services to First Nations entrepreneurs in north-western British Columbia. TRICORP’s mandate is to increase the number of permanent jobs, reduce unemployment and facilitate business ownership among First Nations people. For more information, visit www.tricorp.ca.

Through the MRED Investments Initiative and other Aboriginal economic development measures, the Government of Canada is demonstrating its continued commitment to increasing Aboriginal participation in the Canadian economy.

For more information on the First Nation Regeneration Fund, visit www.regenerationfund.ca.

New fund to give First Nations equity in power projects

Ecotrust Canada and two aboriginal capital corporations have partnered to help First Nations take ownership of power projects on their traditional territories.

Today they launched the $7 million First Nation Regeneration Fund, to give First Nations and band councils money to purchase equity shares in run-of-river projects.

Ecotrust Canada, the Tribal Resource Investment Corporation and the Tale'awtxw Aboriginal Capital Corporation provided $4 million altogether and the federal Ministry of Indian Affairs and Northern Development provided $3 million.

The two aboriginal corporations deal with First Nations in Vancouver and northwestern B.C.

Peter Lantin, chief operating officer with the Tribal Resources Investment Corporation, said many bands they talked to have been approached by independent power producers (IPPs).

"Most [developers] have come with a royalty agreement in hand," said Lantin. "When we asked, why bands don't take some ownership of these projects, the answer was, 'we don't have any money.'"

"We're looking at the energy source, the river, as being an asset of the First Nation. They can put it to work."

Lantin said the fund could realistically provide funding for four to five small-scale projects. The first project it will finance is a 2 MW run-of-river project wholly owned by the Taku River Tlingit First Nation. The focus right now is on run-of-river projects in communities that are currently using diesel power, Lantin said.

"We're not just going to be handing out money to any project...it's going to have to pass environmental criteria."

Ecotrust Canada president Ian Gill said they are in the middle of developing the environmental criteria with which projects will be evaluated.

"The project we have already supported is a very good illustration of what can be achieved," he said. "It not only means the energy independence of a community, but the environmental benefit is you allow them to not have to purchase a half million litres of diesel a year."

Colleen Kimmett reports for The Hook.

Funding powers aboriginals

British Columbia aboriginals are ratcheting up their support for independent power projects.

A new $7-million "First Nation Regeneration Fund" announced Tuesday will give aboriginal groups access to capital to participate as co-owners in run-of-river power projects, proponents say.

Two aboriginal capital corporations, Ecotrust Canada and the federal government have all kicked in the money -- which David Lantin, chief operating officer of Tribal Resources Investment Corporation (Tricorp), said will enable "four or five" first nations to borrow money to take an equity share in power projects in their communities.

First nations have struggled to ramp up their participation in power development, largely due to difficulty accessing capital -- a situation aggravated by the recent global economic meltdown.

"Originally, we envisioned a larger-scale fund, but this is a start,"
Lantin said in a telephone interview from Prince Rupert, home base for northern B.C.-focused Tricorp. "We will not be adding to it, but we will be looking at probably a second fund if this one works out according to plan."

Tricorp's shareholders include several of B.C.'s major northwest tribal groups -- Haida, Nisga'a, two Tsimshian bands, Gitxsan and Wet'suwet'en.

"In our journeys through the communities, IPP is front and centre in almost every one of them in terms of opportunities," Lantin said. "We are mainly a fishing-forestry region and with those industries doing not so well, Tricorp's capital corporation had to look at diversifying itself.

"This is probably the first time in our community that we've been very proactive -- not sitting back and waiting for the economy to turn us in a certain direction. We see this as the new industry, a new opportunity for us, and we are pretty optimistic."

One project, the Taku River Tlingit run-of-river project at Atlin, has already tapped into the fund.

Ecotrust Canada president Ian Gill said he expects investments will be "low risk" and will take place after generation potential has been assessed and project construction is complete.

"What I'm proudest of ... is that this has a social justice component,"
Gill said in an interview. "It provides first nations with real equity. It has an environmental benefit, and it has an economic component.

"The leverage in this fund type I think is tremendous and I think we may have struck upon a way in a market sense to help finance first nations participation in a whole stream of economic activity in the province."

ssimpson@vancouversun.com