Canadian Design and Construction Report staff writer
Construction is underway on a new Central Heating Plant at 5 Wing Goose Bay in Labrador following a groundbreaking ceremony held by the federal government.
The plant will replace diesel heating at the Canadian Armed Forces base with electricity from Labrador’s hydroelectric grid, providing what the federal government says will be more reliable and lower-cost heat.
The $187-million project is the cornerstone of an Energy Performance Contract (EPC) awarded to MCW Custom Energy Solutions Ltd. in December 2025 to modernize infrastructure at 5 Wing.
The base supports North American Aerospace Defense Command (NORAD) operations and Canadian Armed Forces activities across the Arctic and North.
To support the conversion to electric heating, the Department of National Defence secured an additional 20 megawatts of electrical capacity from Newfoundland and Labrador Hydro. The project will also include upgrades to control systems and utility metering infrastructure.
The EPC is expected to reduce energy costs at the Wing by 77 per cent, generating about $8.6 million in annual savings.
The project is also expected to reduce greenhouse gas emissions by 94 per cent, or approximately 19,000 tonnes annually, compared with current levels.
“This historic investment advances Canada’s Net Zero goals while strengthening Arctic sovereignty and operational reach by leveraging industry partners,” said Derrick Cheung, president and CEO of Defence Construction Canada.
The Central Heating Plant is scheduled for completion by December 2030.
“Canada is moving with speed and purpose to defend and build the North,” Defence Minister David J. McGuinty said. “Today, we begin building the modern, reliable infrastructure the women and men who serve there rely on.”
The project is part of broader federal efforts to modernize infrastructure supporting military operations in the North while reducing energy use and emissions.
“Labrador’s essential contribution to 5 Wing Goose Bay is also an essential contribution to Canada’s northern sovereignty,” said Philip Earle, MP for Labrador. “Our government is making the generational investments needed so Canada remains prepared, present, and resilient in the North.”
