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Tuesday, January 17, 2006

Big Announcement Today in Labrador - Congrats folks

Canadian Wind Energy Developer Announces Canada's Largest Wind Farm to be Built in Labrador

ST. JOHN'S, Jan. 17 /CNW/ - Toronto-based wind energy developer, Ventus
Energy Inc, and Metis Energy Corporation, a subsidiary of Metis Development
Corporation, announced today plans to develop a $2.5 billion wind farm near
Churchill Falls, Labrador.

Through a newly-created partnership, Labrador Ventus Limited Partnership
(labradorventus.ca), the wind farm will be the largest in Canada with an
installed nameplate capacity of 1,000 megawatts. This new generation facility,
to be called "Height of Land Wind Park", is expected to produce over three
terawatt hours of electricity per year. Development plans include a phased
construction approach over a three-year period. Pending regulatory approval,
construction could begin in 2007.

"We spent much of the last year carefully evaluating our potential
partners for this innovative development opportunity," says John Douglas,
President and Chief Executive Officer of Ventus Energy Inc. "Over time, the
choice became obvious. Who better to proceed with than the people of
Labrador?"

Ventus Energy forged a relationship with Metis Development Corporation,
and had preliminary discussions with the Innu, Government of Newfoundland and
Labrador and Newfoundland and Labrador Hydro. "We are very keen to ensure that
the concerns of the Innu and Innu business community, and other residents of
Labrador, are fully considered in this development," says Mr. Douglas. "We
look forward to participating with the province in the evolution of its energy
plan and firmly believe there is a viable role for an independent power
producer."

Labrador Ventus Limited Partnership will conduct public consultations
throughout the province beginning in February 2006.

"We agreed to partner with Ventus Energy because they have a strong wind
energy development team and have been well capitalized by reputable
institutional shareholders," says Jamie Snook, General Manager of MDC.

"Development plans have been structured to ensure that every dollar possible
is spent in the province and that maximum economic benefits accrue to the
people of Labrador."

Labrador Metis Nation President Chris Montague says the development will
advance Labrador into the 21st Century as a world leader in wind energy. "We
are very impressed with Ventus as a developer, and we look forward to working
with them in this exciting project," he says. "This is a sound
environmentally-friendly project that will result in benefits for the people
of Labrador, the province, and the entire country."

The Height of Land Wind Park will have the capacity to produce enough
zero-emission electricity to power 500,000 homes and displace the equivalent
of three million tonnes of carbon dioxide per year. Local, regional and
provincial economic benefits will be significant, providing over 2,000 direct
and indirect construction jobs and over 200 direct and indirect long-term
operation and maintenance jobs in Labrador.

This private-sector solution to energy development will not require any
provincial or federal grants or loans in order to proceed. Negotiations of a
power purchase agreement to sell the expected annual production are currently
under way with potential customers.

Development activities to date include:
- the completion of a comprehensive wind prospecting field trip
throughout Labrador and Newfoundland in the summer of 2005;

- the installation of wind monitoring equipment in the project area,
which included obtaining permits from Transport Canada, NAV CAN and
Crown Lands (Newfoundland and Labrador Department of Environment and
Conservation and the Department of Natural Resources);

- the submission of an interconnection application to Newfoundland and
Labrador Hydro in October 2005;

- the filing of and Environmental Registration Document with the
provincial Department of Environment and Conservation; and

- the filing of a Project Description with the Canadian Environmental
Assessment Authority.

11 comments:

Anonymous said...

Steve here,

Great news overall, especially since with the Lower Churchill falls project the expansion in production capacity will certainly provide a long term economic benefit.

Two observations.

First, the same type of environment exists in the south west portions of Newfoundland. Certainly some effort should be undertaken to build on the synergy of this effort.

Second, although this may seem as a caveat, the only way to transport the energy for export and sale is through the Upper Churchill falls lines thru Hydro Quebec. Perhaps it's time to consider alternatives to that tranmission route especially since running nearer the proposed TLC connection to SE Labrador and then to the island brings benefits to both provincial areas

Tis to be hoped that this is discussed at the remaining energy plan meetings both in Labrador and the island

Congrats again to those who worked to bring this about

NL-ExPatriate said...

Merry Christmas and Happy New Year Steve!

This is indeed good news. I would like to join with you in congratulating all parties who had anything to do with bringing this about as well as the people of Labrador which will benefit directly from this announcement.

Word has it there are two projects one on the Island as well as this one for Labrador.

Stephen Eli Harris said...

Indeed this is excellent news. I posted the same article on my blog today as well. This is VERY Green and I love it!

I hope our province continues down this path as it's the correct one to follow at this stage of the game.

It's really too bad that Labrador Coastal Ltd. didn't have anything to do with it though. They are a wind turbine company here in the Province and it would have been nice to see it happen from a local. He does have work right now though, building 134 wind turbines accross the province to replace deisal generated power stations that exist in some communities now.

Basically, it's happening... and it's all good!

Stephen
http://newfoundlandgreenparty.blogspot.com

NL-ExPatriate said...

Not done yet though.
From reading the release it would seem they want to wheel the power through the existing power lines which run through Quebec and will need permission from Hydro Quebec. We all know how that went with discussions to wheel power from a Lower Churchill development project.

I think Steve may be onto something with going East with the Power. I see the NDP put in their reponse to OUR PREMIERS list of issues affecting NL that the NDP supports a National Power corridor.

GOD I hope the NDP is the official Opposition and CPC wins. Both of their responses were good for NL IMHO The Liberal response basically said we gave you 2 billion so shut up.

When in fact nothing was given to us that wasn't rightfully ours already. The 2 Billion was retroactive fees collected by the Feds.

Patriot said...

It is indeed great news for the folks in the big land.

I find the timing very interesting as well. Since this means that the company will be in negotiations for transporting the power over the coming months, it will be a good barometer of the hoops that may have to be jumped through when Lower Churchill is developed.

Hopefully they will be succesful in the negotiations and the project will proceed in a profitible way.

As to going to the island and into the eastern seaboard rather than through Quebec, that might work if the cost was somehow shared with the government in preparation for Lower Churchill development. On their own I doubt they could absorb the cost and they need to reach the national grid in order to make the venture profitable. The island itslf, currently I believe, does not have the apetite for that volume of power.

Feltham said...

As exciting as this is to hear, at the same time, I can’t help but be somewhat disappointed. If a private investor can come up with the $$$ to create a mega project like this, why can’t the Government of NF and Lab do something similar? With the amount of wind we get in the Province, I am sure there are many locations to provide the means.

Does anyone have an idea of what the 2000 jobs would consist of? Is this just a short term thing to construct the windmills or more of a long term thing?

NL-ExPatriate said...

Mr Chills the 2000 jobs would just be site preparation and installation. All of the wind mills will be prefabed somewhere else I'm guessing. Heavy equipment work building roads preping sites and pouring cement foundations and pads for the towers. Crane work to errect the towers labour to assemble the prefabed pieces. Some lineman work to run the power lines.

Anonymous said...

Steve here...

Patriot ..

good point regarding cost, in that the costs of transmission line development would likely exceed the capacity/ capability of the wind project venture.

But, Incremental costs of adding capacity to an existing grid is far different than the initial construction.

Further, the development of infrastructure is a necessary predecessor to any significant captial production capacity in either Labrador or Newfoundland itself. Cases in point, the cost of electricity for paper processing on the island, and the cost of heating in many of the coastal areas of Labrador.

Given the relative population density *or lack of to be precise*, it is very possible that energy can be Newfoundland's primary export capability for the next century assuming the infrastructure were in place. Beginning now with oil (but which has a limited lifespan), a continuing revenue thru export of electrical power is not only possible, but profitable, especially when you look at the growth requirements for the entire North American grid, and not only thru hydro, but wind (as described in your original posting) but also potentially nuclear.

And that kind of infrastructure once in place (road and grid) begins to result in serendipitous benefits beyond any planning experience. Take as a case in point the Tennessee Valley authority in the US which began strictly as a rural electrification program, and now has wind, hydro and nuclear components.

Just my two cents worth.

NL-ExPatriate said...

The thing about wind generating tubines is they need a consistant wind pattern. So in my mind that would be where ever the jet stream is most consistant. I'm no meteorologist but from watching the weather forcasting it would seem that the Jet stream is most constistant along the eastern sea board.
As for a national power corridor this is the only way power will ever go east to NL IMHO. If a national power corridor is ever built funded or endorsed by the Feds it will not only open a way for power to go East but more likely west.
It would also be a great incentive to bring Natural gas ashore in NL and run through generating stations to be converted into electricity and then sent west. Otherwise we will never have a reason to bring OUR natural gas ashore for any reason since we don't have the industrial base nor the population to base to utilize it.
It is a helluva lot easier to transport electricity than it is to transport natural gas.
Once the natural gas runs out the power lines could be used to transmit electricity generated from tidal power wind power or convert the natural gas generating stations into peat moss ethanol or some other sort of fuel source. But the grid will still be there to be used by what ever source is used to generate electricity.
We live in a harsh climate. That isn't such a bad thing when it comes to generating electricity. It means we have the energy there to be converted into electricity.

Patriot said...

Looks like a fly in the ointment on this project already.

It appears the provincial government is putting a hold on the development (at least temporarily). The official line is that there are several potential projects possible for wind power and they haven't given the stamp of approval to this one yet.

Is it that simple, or are they concerned that:

A: The project would mean someone else in the province besides Hydro would control so much power and basically be a competitor?

B: That they are afraid the 1000 mw that would flow from the farm within the next 3 or 4 years would take some of the pressure off the power needs of Ontario and put Hydro in a much tougher position in pushing for the development of Lower Churchill?

Any thoughts?

NL-ExPatriate said...

Jury is still out.
but you do raise some valid conspiracy theories.
Ontario is only a drop in the bucket the US is the big player in this Electricity game. Thats where a national grid going East to NFLD will open the door to sending it across the Gulf to the Eastern sea board via an underwater cable.
I'm sure the feds realize that this is pandoras box and once opened will do nothing for ONTARIO but everything for NL by opening up a gateway to the energy markets along the eastern seaboard.
Once that box or gateay is opened we will have reason to bring our natural gas ashore and convert it into electricity to be sold to the US.
Canada/Ontario doesn't want this to happen and will fight tooth and nail to stop it IMHO.
Besides how much more power can those lines transmitt going through Quebec? I would have thought that they were already close to max capacity at 780 and another tranmission line would be needed to accomodate the Lower churchill?