New Brunswick has given conditional approval to a proposed 500-megawatt natural gas power plant, a project provincial officials describe as essential to reducing the risk of rolling electricity blackouts over the next two years.
The approval follows the completion of an environmental impact assessment by the province. U.S.-based ProEnergy, the company behind the project, will have to comply with 45 conditions during both the construction and operation of the facility.
NB Power, New Brunswick’s public utility, has signed a 25-year agreement with ProEnergy to establish 10 refurbished jet turbines in a rural area of Tantramar, N.B. The turbines would primarily burn natural gas transported from the United States through the Maritimes and Northeast pipeline.
Known as the Renewables Integration Grid Security project, the facility would also be capable of switching to diesel if natural gas is unavailable, according to NB Power.
Under the provincial approval, however, the plant will be restricted to burning natural gas no more than 17 per cent of the time.
During periods when the turbines are not generating electricity with gas, they will operate in what officials call a condensing mode. The system is intended to help stabilize the electricity grid without producing additional power.
Environmental conditions imposed on ProEnergy
New Brunswick Environment Minister Gilles LePage said the conditions attached to the approval respond to the concerns raised by residents and environmental organizations during the assessment process.
“It is now the responsibility of ProEnergy to determine how they will proceed and to ensure it is carried out in accordance with the approved requirements,” LePage told reporters in Fredericton.
Among the requirements, ProEnergy will have to regularly monitor air and water quality in the surrounding area, develop an emergency management plan and monitor the project’s effects on plants and animals.
The province has also retained the ability to intervene if the company fails to comply. LePage said his department could establish deadlines for corrective measures and, in serious cases, order the project to be shut down entirely.
NB Power has previously argued that the facility would provide a necessary backup for the electricity system when weather-dependent renewable sources are unable to produce enough power.
The project also has an interprovincial component. Nova Scotia’s energy operator has signed a 10-year agreement to purchase 100 megawatts of electricity from the future plant.
Energy security becomes a political issue
New Brunswick Premier Susan Holt has argued that maintaining a secure and reliable electricity supply is vital to the province’s autonomy, particularly as Canada continues to navigate an ongoing trade dispute with the United States.
The project, however, has drawn opposition from Green Party legislator Megan Mitton, who represents the area where ProEnergy plans to build the facility.
Mitton said she was troubled by the decision to approve a major energy project involving a U.S. company.
“This does the opposite of ensuring energy security, this is very risky,” Mitton said.
“It’s shameful to be partnering with this American company … it flies in the face of elbows up and of protecting our energy security and protecting New Brunswickers.”
Mitton also raised concerns about the plant’s dependence on natural gas imported from the United States. She warned that the project could potentially be used to justify lifting New Brunswick’s long-standing moratorium on hydraulic fracturing.
LePage rejected a direct connection between the two issues during a news conference. He said the approval of the ProEnergy project was unrelated to the provincial government’s announcement earlier in the week that it would review its fracking moratorium.
Environmental groups remain opposed
The province’s energy regulator, the Energy and Utilities Board, approved NB Power’s application for the project in May.
At the time, the Conservation Council of New Brunswick criticized the proposal, describing the gas-and-diesel facility as “not the future New Brunswickers need or deserve.”
“This decision will expose residents to higher power bills, more pollution and decades of dependence on fossil fuels,” the organization’s climate researcher Moe Qureshi said in a statement.
The latest government approval, together with the conditions imposed on ProEnergy, represents the final major regulatory step required before the company can begin developing the facility.
The plant is scheduled to be operational by 2028, although provincial officials were unable to provide a date for the start of construction.
ProEnergy declined a request for an interview.
In a statement responding to questions from The Canadian Press, the company said it had received “another important regulatory decision,” but did not confirm when construction would begin.
Nova Scotia welcomes the approval
Nova Scotia’s Department of Energy said it was pleased that the New Brunswick project had received approval.
The department said the province’s electricity system is moving away from coal while expanding renewable sources such as wind and solar. As that transition continues, it said, the grid will require additional firm generating capacity to maintain reliable and affordable electricity supplies.
“This new fast-acting gas generation facility will supply 100 MW, and there is additional work to secure even more, which is aligned with our Clean Power Plan,” the department said in a statement.
