Clearwater County council has conditionally approved an additional $2.7 million in funding for the long-awaited Nordegg gasification project, bringing the county’s total commitment to $4.1 million—but the investment comes with a caveat.
At a regular council meeting held April 22, councillors voted to release the funds to Rocky Gas Co-op Ltd., on the condition that the agreement include “default security”—a safeguard designed to protect public funds in the event the project does not proceed as planned.
The Nordegg gasification project involves an 11.5-kilometre natural gas pipeline from the Stolberg Facility to the hamlet of Nordegg. The region is currently reliant on propane, heating oil, or electric heat—options local officials say are not only costlier but also less safe and less efficient.
Clearwater County Director of Public Works Erik Hansen says the project is already well underway with pipe in the ground.
Originally estimated at a lower cost, the project’s budget has ballooned to $8 million due to a number of unforeseen challenges—including inflation, regulatory delays, and the need to reroute the pipeline after access through the Highway 11 corridor was denied by provincial regulators.
Rocky Gas Co-op, which has already committed $1.4 million to the project, submitted a letter to council in March requesting the additional $2.7 million to address a funding shortfall. The request came after the County and Co-op jointly lobbied the province last year for a $3.2 million contribution to help get the project over the finish line, though that funding has yet to be secured.
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The additional $2.7 million from Clearwater could come from the County’s Core Infrastructure Restricted Surplus—expected to hold over $3.2 million by the end of 2025—though administration has cautioned that this reserve has other future commitments.
Council considered several funding options, including an outright grant, a conditional grant with default security, or a repayable loan. Ultimately, the conditional grant with security was deemed the most appropriate.
Deputy Reeve Bryan Cermak expressed dismay that the county has suddenly become a “major partner” in the project, with its total commitment of $4.1 million now over 50 per cent of the project’s total cost.
Clearwater County Reeve Michelle Swanson said the funding request puts her “between a rock and a hard place”, but asserts the project is essential nonetheless.
Default security options for council’s consideration are expected at a future meeting.
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