Minister Thompson Announces Largest Canadian Defence Investment in Newfoundland and Labrador’s History
April 2, 2026
On April 1, 2026, the Honourable Joanne Thompson, Minister of Fisheries, along with Philip Earle, Member of Parliament for Labrador, Newfoundland and Labrador, on behalf of the Honourable David J. McGuinty, Minister of National Defence, announced significant long-term investments at 5 Wing Goose Bay that may total up to $8 billion as one of Canada’s NORAD northern basing infrastructure (NNBI) sites.
As part of this broader effort, the Government of Canada has awarded a $187 million (Energy Performance Contract) EPC to upgrade infrastructure at 5 Wing Goose Bay, Newfoundland and Labrador.
The 5 Wing Goose Bay EPC, awarded to MCW Custom Energy Solutions Ltd., will focus on modernizing the Central Heating Plant by replacing diesel systems with electric boilers, leveraging Labrador’s clean hydroelectric grid for greener, more efficient energy. Additional upgrades will include enhancements to control systems and the installation of utility metering.
These upgrades are expected to reduce energy costs at the Wing by approximately $8.6 million annually, a 77% reduction, and lower greenhouse gas (GHG) emissions by roughly 19,000 tonnes per year, representing a 94% reduction from current levels. Construction will begin in May 2026, with completion anticipated by December 2030.
By modernizing its infrastructure to reduce its carbon footprint and real property operating costs, these EPCs contribute to the federal government’s target of achieving net-zero emissions by 2050. The next three to five years will see an additional nine EPCs planned for award, representing over $650M in new investments.
The NNBI plan, valued at $32 billion, will include improvements to airfields, operational facilities, and support infrastructure at key northern sites, including Inuvik, Iqaluit, Yellowknife, and Goose Bay. NNBI will enable rapid mobilization to the Arctic and the North in support of NORAD missions and will provide additional capacity to support CAF operations. Planning is still in the early stages, though it is expected that each of these four sites will evolve over time. Where feasible, community needs will be considered as well.
Over the last year, the Government of Canada has moved at unprecedented speed and scale to deliver on its plan to rebuild, rearm and reinvest in the Canadian Armed Forces. As a result, Canada has delivered on a core objective of its plan – achieving the NATO 2% of gross domestic product (GDP) defence spending target this year, half a decade ahead of schedule. Beyond enhancing military readiness, Canada’s historic defence investment is generating significant economic benefits – driving innovation, growing the defence industrial base, and creating long-term prosperity for Canadians.
Meeting 2% is not an end point – it is the beginning of a sustained, whole-of-government effort to rebuild the Canadian Armed Forces, restore operational readiness, and deliver the warfighting capabilities required to deter threats, defend Canada, and contribute to the defence of North America and international security. Over the next decade, Canada will deliver half a trillion dollars in defence investment, putting the country on a clear path toward meeting the new NATO Defence Investment Pledge of 5% of GDP by 2035. This sustained investment will also generate significant economic benefits for Canadians — driving innovation and growing the domestic defence industrial base.
The Government of Canada will advance this long‑term investment plan to strengthen defence and security, supporting a Defence Team that remains prepared, resilient, and reliable in an increasingly complex world.
Quotes
“These Energy Performance Contracts deliver results. They modernize the infrastructure our forces depend on, cut emissions, and reduce operating costs. At the same time, they strengthen the readiness and resilience of the Canadian Armed Forces, including our ability to support critical continental defence missions through NORAD. This is a practical, forward-looking investment in our military capability and in Canada’s commitment to a secure and sustainable future.”
— The Honourable David J. McGuinty, Minister of National Defence
“5 Wing Goose Bay is central to Canada’s defence strategy. This investment of up to $8 billion will modernize that base and tap into the province’s clean energy grid to do it more efficiently. Newfoundland and Labrador is essential to defending Canada’s sovereignty and this investment reflects that.”
— The Honourable Joanne Thompson, Minister of Fisheries
“These investments at 5 Wing Goose Bay reflect Labrador’s vital role in defending Canada’s North and strengthening our Arctic sovereignty. At a time when the world is becoming more uncertain, our government is making the serious, long-term investments needed to ensure Canada is prepared, present, and resilient in the North.”
— The Honourable Philip Earle, Member of Parliament for Labrador, Newfoundland and Labrador
“Energy Performance Contracts unlock significant opportunities to reduce energy use and emissions while modernizing defence infrastructure. Defence Construction Canada, alongside our industry partners, is committed to supporting the Department of National Defence by bringing specialized procurement and contract management expertise to these initiatives, ensuring efficient delivery and long-term value.”
— Derrick Cheung, President and Chief Executive Officer, Defence Construction Canada
Quick facts
- In addition to the EPC at 5 Wing Goose Bay, the Department of National Defence (DND) is implementing EPCs at installations across Canada as an efficient way to reduce building energy consumption. Recent EPC contract awards include:
- 9 Wing Gander, valued at $24.6 million with approximately $440,000 annual savings and GHG reductions of 1,300 tonnes annually.
- Focuses on recapitalizing aging mechanical and electrical systems at the base to enhance operational reliability and reduce environmental impact.
- 9 Wing Gander, valued at $24.6 million with approximately $440,000 annual savings and GHG reductions of 1,300 tonnes annually.
- EPCs support DND’s implementation of the Defence Climate and Sustainability Plan (2023–2027). Similar contracts are now in development for bases in Trenton, Montreal and Cold Lake. A second EPC is in development for Petawawa.
- Since 2015, the DND has implemented EPC contracts at 22 locations, and alongside our energy service company partners, have invested almost $598 million in energy and Greenhouse Gas reduction improvements. Once the EPC projects underway are completed, we expect to reduce our annual energy costs by nearly $27 million per year and reduce our emissions by over 90,000 tonnes annually.
- Facilities at 5 Wing Goose Bay will remain fully functional during the project, with no impact on military operations. Local Canadian Armed Forces members will receive training on the upgraded systems, enhancing workforce expertise.
