It's not a done deal, but Hydro-Québec is spending millions on Gull Island study

Even without a finalized agreement in place, Hydro-Québec is spending millions of dollars on site studies for a proposed hydroelectric project on the lower Churchill River in Labrador.

In a statement on Tuesday, Hydro-Québec said workers will be on the ground of Gull Island later this week to collect environmental data, complete surveys and install construction trailers as part of geotechnical and environmental studies.

Hydro-Québec spokesperson Lynn St-Laurent later told CBC News she expects workers will be in the area until the end of September or mid-October, with 40 on site at the study's peak.

"Today, for instance, there's probably less than 10 people, but that'll be building up in the coming days," St-Laurent said, adding the surveying work is expected to start in the coming days.

Surveying the ground of Gull Island will involve some drilling and tree clearing, she said.

"This is kind of a standard process, though, because this is a large endeavour and there's a lot of information that we need to get ready," she said. "There's also some components that are standard for the reaching of the final agreement."

A memorandum of understanding to develop more hydroelectric capacity on the Churchill River — including the Gull Island project — was first announced in December and is set to be finalized in April 2026.

"This is an important step on a long path toward developing this major renewable energy resource. Seeing the first workers in the field gives further impetus to the project," Hydro-Québec president and CEO Claudine Bouchard said in the statement.

"It's a clear affirmation of our commitment to carrying out this historic project, signing a final agreement with our partner N.L. Hydro, and working with Indigenous and local businesses in Labrador."

The Quebec Crown corporation estimates the study will cost between $10 to $15 million, which is coming from Hydro-Québec's subsidiary Société d'Énergie de la Baie James.

The statement also said the two Crown corporations — Hydro-Québec and Newfoundland and Labrador Hydro — are aiming on a final agreement "in the coming months."

Local boost

The news of site work comes a few weeks after the Innu Nation and Hydro-Québec announced they had reached a Churchill Falls agreement.

St-Lauren told CBC News that Hydro-Québec's survey will not impact the Mainishan Nui Gathering, which takes place during the third week of September on Gull Island. 

"We certainly don't want to disrupt that event, and we're making sure to to preserve that calendar and be a respectful obviously of of that event," she said. 

Gull Island is one of the last undeveloped hydroelectric projects in North America.

The Gull Island project would be a new entity, owned 60 per cent by N.L. Hydro and 40 per cent by Hydro-Québec. The target date for commissioning Gull Island is 2035.

In its statement on Tuesday, Hydro-Québec said the studies are already giving boosts to Newfoundland and Labrador businesses, pointing to Stassinu Stantec Limited Partnership as the company to carry out the geotechnical studies and Air Borealis to transport employees.

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