Federal Funding Supports Labrador West Transmission Expansion Study
September 9, 2026
The federal government has confirmed funding support for the Labrador West Transmission Expansion poject. Hydro will receive $2.34 million through the First and Last Mile Fund (previously the Critical Minerals Infrastructure Fund) to advance study and design work, as well as approximately $1 billion NPV in broader support allocated to the project as part of the federal-provincial energy agreement.
The Labrador West Transmission Expansion Study was initiated following requests by four large mining customers seeking additional power to support existing operations and future critical mineral projects. The first phase of study identified a single 735 kV transmission line as the preferred solution to support existing operations and future industrial load growth. The proposed expansion will enable increased power transfer capacity to Labrador West by up to an additional 1,500 MW – approximately four times current limits – helping to support future industrial growth and unlock new economic development opportunities in the region.
This federal support highlights the strategic importance of the Labrador West Transmission Project in advancing critical minerals development and supporting long-term economic growth in Labrador and across Newfoundland and Labrador.
Learn more about the proposed Labrador West Transmission Expansion project and the latest developments.