The province is investing $400,000 in a clean energy facility on Vancouver Island.
The facility will use ocean thermal energy to heat a new First Nations residential community for the Beecher Bay First Nation.
The new town, called Spirit Bay, will use heat extracted from the ocean using heat exchangers and pumps and delivered to the development through a district heating system.
John Rustad, the Minister of Aboriginal Relations and Reconciliation, says the technology is relatively new and the project has many potential applications.
The First Nations Clean Energy Business Fund is designed to increase First Nations participation in the clean energy sector.
The development will take 10 years to build and will have residential, business, and recreational facilities on 40.5 hectares.