Hydro-Québec and Newfoundland and Labrador Hydro announce agreement for Churchill Falls and Gull Island projects
On August 17, 2026, Hydro-Québec announced the signing of a Definitive Cooperation and Implementation Agreement ("DCIA") with Newfoundland and Labrador Hydro concerning the development of the Churchill Falls and Gull Island hydroelectric projects. Together, these projects represent the largest clean energy investment in North American history, at nearly C$70 billion.
The DCIA follows the reopening of the parties' December 2024 memorandum of understanding and lays the foundation for one of the largest infrastructure projects ever announced in Canada. Under the announced agreement, the parties intend to expand the capacity of the existing Churchill Falls generating station and construct the Gull Island generating station with a supplementary generating unit.
The arrangement is expected to provide Hydro-Québec with access to over 10,000 MW of generating potential from Labrador, doubling current production and supporting Québec's long-term energy needs at a competitive rate. In Newfoundland and Labrador, the project is expected to drive economic growth in a key mining region and strengthen the power supply Labrador communities need to deliver essential services to a growing population.
The project has received support from the Government of Canada, which considers it a project of national interest that will support Canada's energy sovereignty.
Hydro-Québec and Newfoundland and Labrador Hydro are the provincially owned electric utility companies responsible for generating, transmitting, and distributing electricity in their respective provinces.
McCarthy Tétrault LLP is advising Hydro-Québec with a team led by David McAusland that includes Luke Carsley, Mathieu LeBlanc, Clemens Mayr, Dominique Amyot-Bilodeau, Gordon Baird, Louis-Nicolas Boulanger, Marjolaine Hémond Hotte, Elisa Laxer, Mitchell Lui, Benjamin Rivard, Ruo Lan Wang, Karl Bherer, Janie Lambert-Roy (Business), Maxine Ethier, Anca Neacsu (Infrastructure), Awanish Sinha (Litigation), Lambert Perron, Michel Bergeron (MT>Version), Matthew Kraemer, Christian Meighen (Tax) and Ursula Kenkel (Real Property & Planning).
