Aecon Group Inc. (TSX: ARE) announced on July 30, 2026, that Mactaquac Improvement Partnership has executed a development phase agreement with New Brunswick Power Corporation ("NB Power") for the Mactaquac Life Achievement Project. Aecon holds a 33.3% interest in the general partnership, which also includes FlatironDragados and Green Infrastructure Partners. This agreement secures Aecon’s role in delivering civil works at the 672 MW Mactaquac Generating Station, a critical infrastructure asset that provides approximately 12% of New Brunswick’s electricity.

Under an Early Contractor Involvement approach, the partnership will collaborate with NB Power over a 12-month development phase to advance design, schedule, and cost estimates. Upon successful completion, the construction phase is expected to commence in the second quarter of 2027 under a target price model, with final completion anticipated in 2039. The project aims to rehabilitate the station to ensure it operates for its intended 100-year lifespan.

The civil works scope is extensive, involving the rehabilitation of the powerhouse and spillways, the replacement of six turbines, and upgrades to electrical and mechanical components. Additionally, the project will enhance upstream and downstream water storage and environmental infrastructure to support the Saint John River ecosystem. Built in 1968, the Mactaquac Generating Station remains integrated into the electricity grid of surrounding regions.

Strategic Significance

Jean-Louis Servranckx, President and Chief Executive Officer of Aecon Group Inc., emphasized the strategic importance of the deal. "The Mactaquac Generating Station is a vital power generation facility and Aecon’s world-class experience executing some of the most complex hydroelectric, dam and water management infrastructure projects will be integral in safely delivering this formidable project," Servranckx said. He noted that the collaboration aims to optimize benefits by extending the facility’s operating life while ensuring clean energy supply.

Thomas Clochard, Executive Vice President and Chief Operating Officer, highlighted Aecon’s track record in the sector. "Aecon has been building critical infrastructure for over 150 years and brings decades of proven expertise delivering top-tier hydroelectric and water management projects," Clochard stated. He added that the project expands Aecon’s footprint in Atlantic Canada and strengthens its position for future opportunities.

What the Numbers Show

The Mactaquac Life Achievement Project represents a long-term commitment to infrastructure resilience, with a timeline spanning from 2026 through 2039. The involvement of three major partners—Aecon, FlatironDragados, and Green Infrastructure Partners—underlines the complexity and scale of the rehabilitation work required for a facility built in 1968. By targeting a target price model for the construction phase starting in 2027, the partnership seeks to balance cost predictability with the technical demands of replacing six turbines and upgrading critical spillway infrastructure.

Relevant Experience

Aecon’s portfolio includes significant hydroelectric projects such as the Site C Generating Station and Spillways Civil Works in British Columbia, and the Lower Mattagami Hydroelectric Complex in Ontario. Internationally, the company is executing the Howard A. Hanson Dam Facility project in Washington State for the U.S. Army Corps of Engineers.

Aecon Group Inc. has secured a major infrastructure mandate through the execution of an Energy Storage Facility Agreement for the Simcoe Battery Energy Storage System Project in Norfolk County, Ontario. The partnership will construct, own, and operate a 150 MW / 1,200 MWh facility under a 20-year contract with Ontario’s Independent Electricity System Operator (IESO). This agreement positions Aecon to receive capacity payments for grid services, alongside additional revenue from energy sales into the Ontario electricity grid and ancillary services, with commercial operations targeted for 2030.

The Simcoe Battery Project is developed by Simcoe Battery Project General Partnership Inc., where Aecon Concessions holds an equity stake. Ownership partners include Six Nations of the Grand River Development Corporation, the Mississaugas of the Credit Business Corporation, Sitka Power Inc., and NRStor. Aecon will serve as the exclusive Engineering, Procurement and Construction (EPC) provider for the balance of plant works, with a separate EPC agreement expected to be finalized shortly.

Project Scope and Portfolio Impact

The Simcoe facility adds to Aecon’s growing footprint in Ontario’s energy storage sector. Combined with completed and ongoing projects, Aecon’s portfolio now represents approximately 1 GW of battery energy storage systems built or under delivery in the province. Existing assets include the Oneida Energy Storage Project, which began operations in May 2025, as well as the York and Goreway BESS facilities. Ongoing developments include the South March and Trail Road BESS projects.

Steve Nackan, Executive Vice President and President of Aecon Concessions, stated that the project strengthens grid reliability and supports renewable generation integration. He emphasized that the deal exemplifies Aecon’s “One Aecon” approach, leveraging diverse operating sectors to convert core construction capabilities into long-term concession opportunities.

Strategic Context

The agreement underscores Aecon’s strategic focus on North American power infrastructure, specifically energy storage and grid expansion. By securing both equity ownership and exclusive EPC rights, Aecon captures value across the full project lifecycle. The company highlighted its multidisciplinary expertise in Canada’s power generation sector, noting that these projects address Ontario’s growing electricity demand and need for resilient energy foundations.

Forward-looking statements regarding the project’s execution, timing, and financial returns are subject to risks detailed in Aecon’s Management’s Discussion and Analysis filings on SEDAR+. These include potential delays in finalizing the EPC agreement, obtaining regulatory approvals, and meeting labor and supply chain requirements.