Algonquin Power & Utilities Corp. announces $105 million USD investment by Emera

Algonquin Power & Utilities Corp. ("APUC") announced yesterday that it is finalizing arrangements with Emera Inc. ("Emera") for a treasury subscription of subscription receipts convertible into 17.43 million APUC common shares ("Shares") for total proceeds of approximately $105 million USD. The subscription receipts will be issued in two tranches with delivery of the Shares conditional on and planned to occur simultaneously with the closing of certain previously announced transactions.

One tranche of subscription receipts will be used to partially fund the previously announced acquisition by APUC's power generation subsidiary of a 51% interest in a 480 MW U.S. wind power portfolio. These subscription receipts will be convertible into 10.456 million Shares at a purchase price of $5.74 USD for proceeds of $60.0 million USD, conditional on the closing of the acquisition.

The other tranche of subscription receipts will be used to partially fund the previously announced acquisition by APUC's regulated utility subsidiary of certain gas distribution assets in the mid-west U.S. These subscription receipts will be convertible into 6.977 million Shares at a purchase price of $6.45 USD for proceeds of $45.0 million USD, conditional on the closing of the acquisition.

APUC and Emera have also agreed to promptly convert the 12 million subscription receipts that were issued to Emera in December, 2010. APUC will receive $60 million USD in proceeds from the conversion and will use the proceeds to partially fund the acquisition of electricity and natural gas distribution utilities in New Hampshire that are expected to close in Q2 2012.

"We believe the subscription receipts are a very efficient way for APUC to raise capital to fund our previously announced acquisitions", commented APUC Chief Executive Officer, Ian Robertson. "The issuance of these additional subscription receipts further strengthens our relationship with Emera as we look to complete our growth initiatives for 2012".

"We are pleased to continue to grow our relationship with Algonquin through these additional investments", commented Emera Chief Executive Officer Chris Huskilson. "Algonquin's proven strategy of investing in renewable energy and regulated utilities continues to contribute to Emera's holdings in renewable energy in North America".

Source: Algonquin Press Release, Emera Press Release

Japanese government takeover of Tepco means Japan owns 5% of Cameco's Cigar Lake uranium mine in Saskatchewan

A $12.5 billion USD purchase by the Japanese government of shares in Tepco, announced last week, means that the Japanese government will own more than 50% of Tepco's voting shares.

Tepco holds a 5% interest in Saskatoon-based Cameco's Cigar Lake mine in Northern Saskatchewan

The 5% ownership is well within the limits for non-residents owners of Canadian uranium mines.

Aecon wins contract with Northland Power to build 6 Ontario solar PV projects

Aecon's wholly-owned subsidiary, Miwel Construction Limited, has been awarded a contract to construct six 10 MW solar photovoltaic (PV) generation projects in Ontario.

Each of the six projects will be constructed on approximately 85 acres of land, and will consist of over 40,000 PV solar modules mounted on fixed structural supports. The solar modules will generate direct current electricity from the sun's energy, which will then be converted into alternating current, and subsequently transformed and injected into the Hydro One distribution system. The projects will sell the electricity under Ontario's renewable energy Feed-in-Tariff (FIT) program, and will use Ontario-made equipment and local Ontario labour.

The projects are located near Smiths Falls and Belleville in Eastern Ontario, and Burk's Falls near Huntsville. Work on the sites has begun, with completion of all six sites expected in 2013.

"Renewable energy sources like solar are essential to ensure a strong, sustainable energy grid," said John Brace, President and CEO of Northland Power. "With a long history of generating clean and green, intelligent energy, Northland's contract with Aecon will further our mission to provide renewable energy to power Ontario homes and businesses."

Northland has received more than 130 MW of FIT contracts for solar projects that will be constructed from 2012 to 2014. With experience in both rooftop and ground mounted solar projects, Aecon has previously constructed Peterborough Utilities' 10 MW Lily Lake Solar Park, and rooftop systems on IKEA, Home Depot and Canadian Tire stores.

"Aecon has a long-standing commitment to being a leader in the construction of innovative, renewable and sustainable energy solutions," said Teri McKibbon, Aecon's Chief Operating Officer. "We are pleased to be working with Northland Power, and are confident this contract will showcase our abilities in delivering customized solutions for solar projects."

Northland Power develops, owns and operates clean and green power generation projects. Its operating assets are primarily in the provinces of Ontario, Quebec and Saskatchewan. The company has been in business since 1987 and has a net economic interest in 1,005 MW of power generating capacity.

Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients.

Sources: Aecon and Northland Press Releases

Japan announces proposed rates for feed-in-tariff for renewable energy

Japan will require power utilities to pay above market rates for electricity generated from renewable energy sources such as solar and wind, based on recommendations recently announced by a government panel.

The feed-in tariff (FIT) for solar power was recommended at 42 yen (52 U.S. cents) a kilowatt-hour for 20 years, compared with the current rate of 13.65 yen a kilowatt-hour for industry and commercial users, according to the Ministry of Economy, Trade and Industry.

The wind FIT in Japan was recommended at 23.10 yen a kilowatt hour for plants with the capacity of 20 kilowatts or more and 57.75 yen for smaller ones, both for 20 years.

For geothermal, the panel recommended 27.30 yen a kilowatt hour for plants with the capacity of 15,000 kilowatts or more and 42 yen for smaller plants, both for 15 years. Japan currently gets about 9 percent of its electricity from renewable energy.

Pending approval by the Ministry of Economy, Trade and Industry, the feed-in tariffs will be introduced in July 2012 to spur investment in solar, wind geothermal, biomass and hydroelectric power generation as Japan plans a shift away from atomic power after the Fukushima disaster. In August, Japan’s parliament approved legislation for the feed-in tariffs to help diversify its energy mix following the devastating accident at the Fukushima Dai-Ichi nuclear plant in March 2011. Atomic power provided about 30 percent of the country’s electricity before the Fukushima crisis.

The price recommendation for solar is in line with that earlier proposed by the Japan Photovoltaic Energy Association. The Japan Wind Power Association had suggested a wind tariff of up to 25 yen over 20 years for bigger producers. The Japan Geothermal Developers’ Council had recommended 25.8 yen a kilowatt-hour for 15 years for bigger suppliers.

Source: Chisaki Watanabe, Bloomberg

Finnish Fortum establishes operations in France to develop renewable energy projects

Fortum has opened an office in Paris in order to boost its presence in France where the company may work on renewable energy projects, French business daily La Tribune reported this week.

Currently, the Finnish company operates in the segments of hydropower, co-generation and nuclear energy. Regarding France, the group is interested in the possibilities for winning hydropower concessions, to be offered soon by the French government. Another interesting opportunity on the French market is the marine tidal energy sector. Fortum has already embarked on a partnership with French shipyard DCNS to operate in that sector. The Nordic group is also looking for business opportunities in the solar power sector.

Fortum is a leader in the production of energy and heating in the Nordic region. Throughout the years, the Finnish group managed to boost its performance via the deregulation of different markets. Thus, the company was able to establish presence throughout Scandinavia, and later on turned its attention to the Baltic republics and Russia.

Fortum employs 10,700 people and closed 2011 with a revenue of 6.2 billion EUR.

Sources: La Tribune, Fortum Press Release

Saskatchewan committed to proceeding with $1.2 billion CAD carbon capture and storage (CCS) project while Alberta moves away from CCS

Despite the decision in Alberta to step away from a carbon capture and storage project, officials in Saskatchewan say they remain committed to the $1.2 billion CAD project at SaskPower’s Boundary Dam power station near Estevan, which has received $240 million CAD in funding from the federal government.

SaskPower is aiming to demonstrate that carbon dioxide from a coal-fired generating station can be captured post-combustion and safely stored or used for enhanced oil recovery projects in the oilpatch.
 


Illustration by Karen Petkau for the Calgary Herald based on files and information from the Alberta Geological Survey

Rob Norris, the government minister responsible for SaskPower, said the technology being used for the Saskatchewan project is different than what was being pursued in the now-stalled Alberta project, which involved using chilled ammonia to strip carbon dioxide out of emissions from TransAlta Corp.’s new Keephills 3 coal-fired generation station. TransAlta estimated the technology would eliminate one million tonnes of greenhouse gas a year.

The gas then would have been used to enhance oil production by injecting it into mature wells, as well as stored in deep saline aquifers.

Alberta ceding ground on the carbon capture front may create additional opportunities for Saskatchewan, Norris said.

“In a sense, we’re more confident today than the first day that we announced because we have partners coming on side. We see the support that we’re receiving internationally,” Norris said. “I think the eyes of the world are focused on the success that Saskatchewan is having on clean coal and carbon sequestration, building on a decade of our work.”

SaskPower president and CEO Robert Watson said the Boundary Dam project is on track to come in on budget, and should be in full production by spring 2014.

Watson said he expects Saskatchewan — which has also partnered with Hitachi on a carbon capture test facility in southeastern Saskatchewan — to be at a point in a few years where it can charge interested parties around the world for the expertise that has been developed. Watson said he also anticipates a solid market for the CO2 that is captured.

“There is nothing that has actually come off our original business plan. Our original business plan was put in place to make sure the project came in as good as you would build a gas plant because not only is the technology important but the economics are important. If we come in remotely as close as building a gas plant then we’re golden because we’re sitting on a 300 year supply of (coal).”

Sources (in part): National Post, Calgary Herald, Government of Saskatchewan Press Release

CanBio conference focusing on biomass in a Canadian energy strategy in Edmonton last week a great success

Many thanks to the organizers, in particular Noam Sugarman of CanBio for a very well-organized, insightful and practical conference. Talking with other attendees, the sentiment was shared. This was the first CanBio event I presented at and was very impressed with the number of presenters and cross-section of attendees of all sectors of the bioenergy industry.

As a renewable energy lawyer based in Saskatoon, I know there is increasing interest in biomass projects in Saskatchewan. I was very pleased to see representatives from Prince Albert Pulp and Nipawin Biomass at the conference but there is certainly scope for much broader engagement with CanBio in Saskatchewan.

If biomass developers, suppliers, forestry companies, First Nations or others active in Saskatchewan are interested in learning more about CanBio, I am happy to make introductions.

Canadian Solar and SkyPower enter into Purchase and Joint Venture Agreement

Solar PV leaders, Canadian Solar Inc. and SkyPower Limited have entered into a Purchase and Joint Venture Agreement, which creates a powerful team comprising of one of the world's largest solar companies and Canada's largest owner and developer of solar projects to build and deploy solar energy solutions in Ontario, and to jointly develop solar projects internationally in select emerging markets.

Under the agreement, Canadian Solar will acquire a majority interest in 16 solar projects representing approximately 190-200MW DC from SkyPower. Each of these projects was awarded a 20-year power purchase contract by the Ontario Power Authority. Fifteen of these contracts were issued under Ontario's Feed-In-Tariff Program, and one was issued as part of Ontario's Renewable Energy Standard Offer Program. These projects are in the advanced permitting stage and are expected to commence construction in 2013 and be fully operational in 2014. They are expected to generate over $800 million CAD in revenue for Canadian Solar.

Canadian Solar and SkyPower have also agreed to form a 50:50 international joint venture focused on developing solar power plants in select emerging markets. The JV company expects to start generating revenue from this global strategic initiative within the next two to three years.

The transaction price is approximately $185 million CAD to be paid at certain milestones. Canadian Solar will assume certain security deposits, which are typical with FIT contracts. In conjunction with the transaction, a five-year warrant is being issued to SkyPower for 9.9% of Canadian Solar's outstanding shares, with a strike price of $5.00 USD.

Source: Canadian Solar Inc. Press Release

Four new biodiesel plants proposed in Finland as Spain considers local preference for EU biodiesel over that from Argentina

The Finnish forest industry is planning for a total of four new biodiesel plants in Finland in the coming years producing a total of 700 million liters of fuel per year sufficient to fuel up to 600 000 vehicles. One project has completed the permitting process and has been granted approval - the forestry giant UPM is to build a pulp residue biodiesel processing plant in Lappeenranta. Construction is scheduled to begin in summer 2012. The UPM plant will produce 100 000 tonnes of fuel production in two years' time. Three of the four proposed biodiesel projects are expected to receive European Investment Bank and EU funding decisions at the end of this year. If all the plans materialize, the Finnish target to increase renewable sources in transportation to 20 percent will be met.

Finnish plans to ramp up biodiesel production come as Spain and Argentina are embroiled in dispute curtailing multimillion-euro imports of biodiesel from Argentina. Spain has indicated that they may give preference to European Union-produced biofuel in meeting compulsory motor fuel blending requirements. Industry sources estimate that Spain imported 720,000 tonnes of biofuel from Argentina in 2011, worth some 750 million euros. Argentina is the world's leading supplier of soyoil and soy-based biodiesel. More than 12 million tonnes of Argentine soybeans were used last year to make biodiesel, compared with total output of some 49 million tonnes in the 2010/11 season.

Sources: Helsingin Sanomat (with thanks again to my wife, Minna-Riitta for spotting this article), Reuters

Canadian government to streamline environmental approval process

The federal government of Canada will no longer undertake environmental assessments for smaller resource projects but will only do assessments for those of national significance. At this point it is unclear how that standard will be determined. The federal government will allow the provincial governments to review the resource projects when it deems that the specific province has the expertise and experience to assess such project. Where the federal government continues to do reviews, responsibility will fall to three central agencies; officials at Fisheries and Oceans or Transport Canada will not be able to intervene. Agencies will have to meet fixed time lines when reviewing major resource projects. The government will introduce new penalties for those who contravene federal environmental regulations, ranging up to $400,000.00 CAD.

Source: (in part) Globe and Mail

Saskatchewan fires back at David Suzuki Foundation report calling the province a "laggard" in climate change

A report released last week by the David Suzuki Foundation praised Saskatchewan for commitments to double wind energy capacity and for plans to improve residential energy efficiency. However, the report also made it clear that Saskatchewan has the highest greenhouse gas emissions per capita in the country. The report went on to note that in recent years, no plans have been made to close the coal-fired generation plants which provide Saskatchewan with nearly 60% of electricity. “It is difficult to imagine any jurisdiction taking the threats of climate change less seriously than Saskatchewan currently does,” the report said.

Saskatchewan's environment minister, Dustin Duncan recently fired back that he's disappointed that the David Suzuki Foundation released the report without talking to the province about what it's doing to cut greenhouse gas emissions.

"We are making significant investments in technology like carbon capture and sequestration which has been recognized as leading technology when it comes to reducing emissions, while still providing jobs for people that work in the coal and in the power industry" Minister Duncan noted. Coal-fired power plants are the primary source of energy in Saskatchewan and Minister Duncan said there's no plan to get rid of them.

"The Suzuki Foundation has taken a position, and it's fair enough for them to take it, but they seemingly have taken a position that we need to move away from the coal industry," said Duncan. "And that's a position that we just fundamentally disagree with as a government. It's important to the people that rely on that industry for their employment. We have significant coal reserves and we're pretty confident that we have a technology that can make coal a resource that we can use in the future in a cleaner way."

The position of the Saskatchewan government seems at odds with proposed Federal regulations would essentially prohibit the construction of new coal-based plants after 2015 unless they include carbon capture and storage equipment to dramatically reduce emissions. Even if Saskatchewan would negotiate an equivalency agreement with the Federal government, the province would still need to essentially comply with these regulations over the longer term SaskPower is currently testing carbon capture and storage technology but as yet it is still not widely adopted and utilized technology. Much is clearly riding on getting CCS working in Saskatchewan.

Sources: The Star Phoenix, The Canadian Press, Government of Saskatchewan Press Releases, David Suzuki Foundation

Can I transfer the contract for a renewable energy project to another third party?

There are many reasons why either the landowner or developer may want to transfer or assign their agreement providing for site control for their renewable energy project. For wind projects the agreement between the landowner and developer providing for site control is often an Option to Lease Agreement whereas for solar PV the agreement is often a Lease Agreement.

A properly drafted Option or Lease Agreement will contain an assignment provision outlining if and how the parties can assign the agreement to a third party. A portion of a typical developer-friendly assignment clause in a wind Lease Agreement is noted below:

The Lessor agrees that the Lessee may assign or sublet the whole or any part of this Lease or the Lands at the sole and absolute discretion of the Lessee to any third party provided that the assignment is for the purpose of the business of constructing and operating the Windpower Facility and any use ancillary thereto continuing to be carried on by the assignee or the sublet tenant on similar terms and conditions as are contained within the Lease herein and that accordingly, provided the use is as so set out herein, the assignment or sublet shall be without the leave, consent of, or notice to the Lessor. It is also understood that the Lessee herein may, without the leave, consent of, or notice to the Lessor, assign the within Lease to: 

1. an affiliate or corporation to be incorporated by the Lessee to carry out the Project on the subject Lands;
2. one or more of its lenders, mortgagees, beneficiaries of deeds of trust, or other holders of a beneficial interest in a Mortgage.

What if there is no assignment clause in my contract?

The situation becomes complicated where there is no assignment provision in the Option or Lease Agreement which prevents, allows or otherwise contemplates assignment of the contract. Generally speaking, where there is no express provision permitting assignment of a contract, and all parties have not consented to such assignment, the assignment of the contract is not possible where the transfer may be overly burdensome on one of the parties. Simply put, as G.H.L. Fridman noted in his book, The Law of Contract in Canada (Fourth Edition) in such situations “the assignment must not throw uncontemplated burdens on the debtor, to his prejudice.”

Assignment of a contract absent an express provision may be permitted in certain situations, but the rule permitting assignment is “confined to those cases where it can make no difference to the person on whom the obligation lies to which of two persons he is to discharge it.” This principle was stated in the case of Tolhurst v. Associated Portland Cement Manufacturers (1900) Ltd. (1902) 2 K.B. 660 (C.A.), affd (1903) A.C. 414 H.L.

Sky Harvest Windpower Corp. to target gas and power markets in Turkey and Europe

In February, 2012 Sky Harvest Windpower Corp. ("Sky Harvest") announced that it has formed a joint venture corporation under the name Levant Energy Inc. for the purposes of developing underground natural gas storage plants in the Republic of Turkey. Sky Harvest will initially hold a 65% interest in the joint venture by investing $500,000 CAD in the newly formed subsidiary. The investment is subject to certain conditions, including Sky Harvest’s completion of further equity or debt funding in order to finance the acquisition. The joint venture intends to use these proceeds to identify and commence securing proposed natural gas storage sites, as well as starting associated permitting processes. It is anticipated that Sky Harvest’s interest in Levant Energy Inc. will be diluted as additional funds are raised.

Turkey is experiencing rapid economic growth and is strategically positioned as a natural gas hub between Europe and the producing gas fields in the Northern Caspian and Middle East regions. As the 16th largest economy in the world, Turkey’s increasing domestic power consumption and its need to use traditional power generation sources to supplement its emerging wind power sector during times of peak power demand are increasing its need for natural gas. As well, Turkey must meet European Union natural gas directives that require pipelines supplying Europe to have access to a nominal 20% of volumes stored as natural gas to ensure security of supply. Currently, Turkey’s installed storage capacity is approximately 4% as there are only two adjacent, seasonal, natural gas storage sites operating in the country with one additional site to be developed. In contrast, there are over approximately 750 independent natural gas storage firms in Canada and the USA. Sky Harvest believes that Turkey’s needs represent a great opportunity for the Company through the development of natural gas storage facilities in the country.

Concurrently, Sky Harvest has entered into an agreement with Mr. Bertan Atalay of The Hague, Netherlands whereby he will act as President and CEO of Levant Energy Inc. Mr. Atalay has over 20 years of experience in project engineering, private and public company management, and gas and renewable energy development in both North America and Europe. He previously acted as Chief Operating Officer and a director of Finavera Renewables Inc., a Canadian wind energy and wave power technology developer. Mr. Atalay has also held business development and management positions with Northland Power Inc., Shell Wind Energy, and Enron Europe Limited. He holds engineering degrees from Middle East Technical University in Ankara, Turkey and the University of Toronto, as well as an MBA in Finance from the University of British Columbia. He was also an exchange scholar of the London Business School.

In addition to operating Levant Energy Inc., Mr. Atalay has also agreed to act as a consultant to Sky Harvest for the purpose of introducing the Company to additional acquisition opportunities in renewable energy and related sectors, including wind power development opportunities in North America, Turkey, and other regions of Europe. Sky Harvest will compensate Mr. Atalay based on the successful completion of such transactions with a success fee equal to 10% of the transaction’s value.

In connection with the joint venture formation, Sky Harvest’s President, William Iny, stated, “We are excited about the energy sector opportunities that exist in the Republic of Turkey and look forward to working with Mr. Bertan Atalay to generate more value for our stockholders. Mr. Atalay’s experience in the power industry, and his knowledge of Turkey’s energy infrastructure, make him a great asset to the joint venture. We believe that this project will complement our current portfolio of wind power properties and allow us to potentially become a diversified energy provider.”

The Company also intends to change its name from “Sky Harvest Windpower Corp.” to “Sky Harvest Energy Corp.” in order to better reflect the nature of its expanding business operations.

Sky Harvest has interests in utility scale wind power projects in South-West Saskatchewan totaling 350 MW. Sky Harvest has leaseholds and contractual interests in over 35,000 acres of land in Saskatchewan for the purpose of developing these clean energy projects. Sky Harvest will continue to hold long term lease agreements on key properties in the area that permit the company to erect wind power facilities for the purpose of generation and sale of wind power to the provincial grid in Saskatchewan.

Hitachi to expand into renewable energy: Agreement inked with Fuji to acquire wind turbine generation business

Hitachi Ltd. ("Hitachi") and Fuji Heavy Industries, Ltd. ("Fuji") have reached an agreement on the assignment of Fuji’s wind turbine generator system business to Hitachi. The details are still being worked out but the agreement is planned to close on July 1, 2012.

Hitachi and Fuji co-developed a 2 MW downwind turbine in 2003. The prototype machine was installed in Hasaki, Kamisu City, Ibaraki Pref. Japan in December 2005, followed by the delivery of a total of 25 units of wind power generation systems at 6 sites throughout the country. The downwind type turbine is a wind turbine that is installed with its rotor under the lee of the tower. It can effectively catch wind to generate power on hills and at sea. Hitachi designed and manufactured the power generator and the power control component and has also sold and installed the wind power system. Fuji designed and manufactured the nacelle, blade, and tower.

After the assignment, Hitachi will consolidate the resources of the two companies to enhance the design and development capability, and integrate the manufacturing and distribution so that it can quickly respond to future market needs. Hitachi will combine its power control technologies as well as the system linkage and stabilization technologies with Fuji's downwind type turbine technologies, with the goal of expanding further into the renewable energy market.

Source: (in part) TES - Today's Energy Solutions

Hitachi centers Canadian operations in Saskatchewan: Calgary and Mississauga to be integrated in Saskatoon with additional $10 million CAD investment

Hitachi is integrating Hitachi Canada and Hitachi Canadian Industries and establishing Hitachi Power Systems Canada in order to strengthen the business structure of Hitachi's power systems business in Canada. Hitachi will invest $10 million CAD in the new company in Saskatoon over the next three years. The investment will be used for the purchase of equipment that will enable Hitachi to increase its technology and productivity for manufacturing products and providing services to the power, energy and industrial market sectors in Canada.

Hitachi's operations in Canada involve design, manufacturing, inspection, installation, trial operation, sales and preventive maintenance for power generation equipment and parts for thermal, hydroelectric, nuclear and other power generation. In Saskatchewan, Hitachi has been providing power generation equipment to SaskPower since 1970. Hitachi also does custom manufacturing for mining, oil and gas and other industrial applications.

The new President of Hitachi Power Systems Canada will based in Saskatoon, but there are no immediate plans to transfer jobs from other locations at the moment.

Sources: (in part) Star Phoenix and Hitachi Press Release

Wind farm appeals in Ontario - the Zephyr Farms case - a further case commentary

Great article entitled Rewind re Wind regarding the Zephyr Farms case in the recently released April 2012 issue of Miller Thomson LLP EnviroNotes! by Tamara Farber, a Partner in our Environmental and Litigation department in Toronto with particular expertise in wind.

http://www.millerthomson.com/en/publications/newsletters/environotes/april-2012

There are two other wind appeals currently in process with the Tribunal in Ontario – one involving a wind farm in Wellington County (the proponent is Conestogo Wind LP) and one in Chatham Kent County (the proponent is Gesner Wind Farm LP, represented by Miller Thomson LLP).

IPCC releases full report on Managing the Risks of Extreme Events Disasters to Advance Climate Change Adaptation

The Intergovernmental Panel on Climate Change ("IPCC") released their Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation ("SREX") earlier this week.
“The main message from the report is that we know enough to make good decisions about managing the risks of climate-related disasters. Sometimes we take advantage of this knowledge, but many times we do not,” said Chris Field, Co-Chair of IPCC’s Working Group II, which together with Working Group I produced the report. “The challenge for the future has one dimension focused on improving the knowledge base and one on empowering good decisions, even for those situations where there is lots of uncertainty,” he said.

Some important conclusions delivered by the SREX include:

• Medium confidence in an observed increase in the length or number of warm spells or heat waves in many regions of the globe;
• Likely increase in frequency of heavy precipitation events or increase in proportion of total rainfall from heavy falls over many areas of the globe, in particular in the high latitudes and tropical regions, and in winter in the northern mid-latitudes; and
• Medium confidence in projected increase in duration and intensity of droughts in some regions of the world, including southern Europe and the Mediterranean region, central Europe, central North America, Central America and Mexico, northeast Brazil, and southern Africa.

The full 592 page SREX report is available here: http://www.ipcc-wg2.gov/SREX/images/uploads/SREX-All_FINAL.pdf

Source: IPCC Press Release

Denmark aims to get 50% of all electricity from wind power

Denmark aims to supply 35% of its total energy from renewables by 2020 and 100% by 2050.

The Danish government has stepped up its green energy and carbon reduction targets for 2020, hailing the plan as the "broadest, greenest, and most long-term energy agreement" it has ever reached.

Danish minister for climate, energy and building, Martin Lidegaard, confirmed on Friday that parliament had agreed a new set of goals designed to wean the country off oil and gas.

The deal aims to see Denmark cut its greenhouse gas emissions by 34% by 2020 compared to 1990 levels and decrease energy consumption by more than 12% compared to 2006.

It also aims to supply 35% of its total energy from renewables, with half of its electricity delivered by wind farms. The agreement also covers advances in renewable heat, smart grids, and biogas among other green technologies.

"Denmark will once again be the global leader in the transition to green energy," said Lidegaard. "This will prepare us for a future with increasing prices for oil and coal. Moreover, it will create some of the jobs that we need so desperately, now and in the coming years."

The agreement will help Denmark achieve its goal of supplying 100% of its energy from renewables by 2050, including electricity, heating, industry and transport.

Lidegaard added that the commitments would prevent consumer energy bills from soaring, by reducing the country's dependence on the volatile price of fossil fuels.

The commitment could also provide a boost to efforts across the European Union to increase its carbon emissions reduction target to 30% from the current 20%.

Earlier in March, Poland was the only state to vote against the shift, arguing the EU should wait for other countries to take similar measures first.

Source: The Guardian

Hitachi and SaskPower Announce Partnership to invest $60 million CAD on Test Facility for CO2 Capture Technology in Saskatchewan

Hitachi and SaskPower will jointly construct a Carbon Capture Test Facility ("CCTF") which will be a part of SaskPower’s larger “Clean Coal Project”, which is a comprehensive initiative to select and apply emerging carbon capture technologies to coal fired power plants to manage their emission of greenhouse gases. The CCTF will allow international developers to fully evaluate performance of their systems to capture carbon dioxide emissions from coal-fired thermal power plants.

Hitachi will provide equipment to capture CO2 which will be installed at SaskPower’s 298 MW Shand Power Station, located near the city of Estevan in South-East Saskatchewan. SaskPower and Hitachi will jointly invest $60 million CAD to cover the cost of the project. SaskPower will be the owner/operator of the project. Construction will begin in late 2012 or early 2013, with a scheduled completion date of summer 2014. Hitachi will supply their skilled process development team, as well as core process equipment from their Saskatoon manufacturing facility.

While the demand for electric power is increasing in Canada, power companies are being required to implement countermeasures against global warming, including measures to suppress CO2 emissions, and to reinforce these initiatives, Canada is currently promoting the development of CCS (Carbon Capture & Storage) technology and the implementation of demonstration projects as a national strategy. SaskPower, in line with this initiative, is currently constructing a world leading, large CO2 capture and storage demonstration project at the Boundary Dam Power Station. Hitachi was selected to supply the steam turbine and generator for this carbon capture and storage demonstration project and will build the crucial system that is needed to efficiently supply the steam required for the CO2 capture and storage equipment.

Hitachi began researching and developing technology to capture CO2 in the 1990s and since then, the company has conducted demonstration projects using its own research equipment as well as domestic and overseas pilot facilities. SaskPower’s experience in integrating CCS into commercial projects combined with Hitachi’s expertise in Carbon Capture Technology will contribute to a comprehensive evaluation and demonstration of the equipment’s overall reliability, economic feasibility, and the necessary properties to scale-up to a large, commercial-scale facility. Hitachi will produce and supply its CO2 capture solvent (H3-1) and the main equipment for the facility. Babcock-Hitachi K.K. (President: Tetsuro Wakino) and Hitachi Canadian Industries Ltd. (President and CEO : Tom Kishchuk) located in Saskatoon, Saskatchewan will be in charge of production and supply.

Hitachi is also deepening its collaboration with the province of Saskatchewan through exchange activities sponsored by the Japan Coal Energy Center and the Coal Division of the Natural Resources and Fuel Department of the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry and will further endeavor to contribute to this mission.

The CCTF demonstration project will capture 120 tons/day of CO2 through a chemical scrubbing capture process.

Source: Hitachi and SaskPower Press Releases

Two-year Feed-in-Tariff Review Released by Government of Ontario

The Government of Ontario released their two-year review of the Feed-In-Tariff ("FIT") Program, which included the following recommendations:

1. the reduction of prices - for solar projects by more than 20% and for wind projects by approximately 15% (see new price table below);
2. the creation of a point system to prioritize FIT Applications which have demonstrated community or Aboriginal participation and municipal support; and
3. reserving 10% of the remaining capacity for projects for those projects which have significant local or Aboriginal participation.



Image copyright Government of Ontario


The full text of the Report, which makes for some very interesting reading, is available here: http://www.energy.gov.on.ca/docs/en/FIT-Review-Report.pdf.

In the Report, I found this map of feed-in-tariffs globally particularly interesting:

Image copyright Government of Ontario

Ontario ERT decision limits laypersons from testifying about health effects allegedly caused from wind turbines: Case commentary on Middlesex-Lambton Wind Action Group Inc. v. Director, Ministry of Environment

In Middlesex-Lambton Wind Action Group Inc. v. Director, Ministry of Environment (Case No. 11-208) the Ontario Environmental Review Tribunal ("ERT") limited the ability of laypersons to testify about health effects allegedly caused by proximity to wind turbines without providing medical records or expert opinions to substantiate their testimony.

The Director of the Ontario Ministry of Environment (the "Director") was seeking disclosure of all medical records from doctors and other qualified health practitioners as to the adverse health effects from wind turbines, or in the alternative, a prohibition of the layperson from testifying as to the alleged adverse health effects from wind turbines.

Medical Records

The ERT noted the following in regard to disclosure of medical records to determine if there are adverse health effects from wind turbines:

"Lay witnesses are only permitted to give testimony with respect to facts as they observe them and are not permitted to express opinions on medical diagnoses or the causes of diseases. The usual way of presenting such evidence is through qualified medical experts who are familiar with the medical histories of the individuals and knowledgeable about the etiology of the diseases those individuals suffer from. To this extent, complete medical records of the Appellant's proposed witnesses would appear to be highly relevant to the Appellant's case."

 Middlesex-Lambton Wind Action Group Inc. did not manage to submit a single medical record to support the alleged claim that wind turbines cause adverse health effects. The ERT comments on this:

"It seems difficult to believe that not one set of medical records has been obtained, or could have been obtained, by this point. Counsel for the Appellant has not provided information about specific requests it has made and the particular obstacles or delays it has faced; rather there is only a series of general claims about the length of time it usually takes to get medical records."

Devaluation of Property & Noise

For those wind opponents planning to raise similar unfounded allegations regarding devaluation of property and noise due to wind turbines, the ERT stated:

"Similar considerations apply to real estate records, noise assessments and all other relevant documents."

Adjournments and Delays

Often wind opponents will attempt to draw out the document disclosure process and try to obtain additional time and adjournments to collect medical records (mainly because they do not exist). The ERT also provided some guidance in this regard:

"...a lengthy adjournment to gather complete medical records for each witness is not appropriate. The Appellant knew of the time constraints on REA appeals when it filed its Notice of Appeal. More than two months later, it has provided no explanation for its inability to obtain a single medical record for any of the witnesses it proposes to call."

Summary of Evidence
 
The ERT also opined on a what constitutes a proper summary of evidence. The Appellant had summarized their evidence by stating that "18 individuals live in close proximity to an industrial wind turbine and have suffered serious health effects." The ERT rejected this summary and stated:

"It is not sufficient at this point, on the eve of the Hearing, to say only, for each of approximately 18 individuals, that he or she 'lives in close proximity to an industrial wind turbine' project and has suffered 'serious health effects.' Specific, relevant facts, such as the location where each individual lives in relation to a turbine project, information about each wind turbine project, measured noise levels at each location, and the specific symptoms and particular medical conditions suffered by each individual, must be stated in the summary of evidence."

Conclusion

Middlesex-Lambton Wind Action Group Inc. v. Director, Ministry of Environment is a solid Canadian precedent which addresses those wind opponents who are claiming adverse health effects from wind turbines but have no medical evidence to support their claim. Unfortunately there are many such claims clogging the courts and administrative tribunals across Canada. This decision is clear that it is not adequate to simply include testimony of laypersons who claim to suffer health effects from living near wind turbines - medical evidence is required. As most of us know, no such medical evidence exists and claims of adverse health effects from wind turbines have been entirely unsubstantiated by medical evidence.

The full text of the decision is here: http://www.ert.gov.on.ca/files/201202/00000300-BKF5BC0DDLO026-CBT55E313IO026.pdf

Finavera Tumbler Ridge Wind Project in Peace River Region of British Columbia Moves Forward

The British Columbia Environmental Assessment Office has completed its review of Vancouver-based Finavera Wind Energy's proposed 47 MW Tumbler Ridge Wind Energy Project in the Peace River region of North-Eastern British Columbia and referred the application to the province's environment and energy ministers for a decision.

Finavera Wind Energy President and COO Peter Leighton stated that, “The Tumbler Ridge application is the result of several years of environmental studies, First Nations and community consultation, and detailed analysis of potential impacts. The review process with the Environmental Assessment Office is now complete and we look forward to a positive decision from the provincial government. Finavera is confident the project can be built with minimal environmental impacts and would deliver clean, renewable electricity to British Columbians. An Environmental Assessment Certificate, combined with a long term power purchase agreement with BC Hydro that is already in place, would allow the project to move forward towards construction in late 2012.”

SaskPower CEO, Robert Watson on the future of renewable energy in Saskatchewan

SaskPower CEO, Robert Watson commenting on the furture of renewable energy in Saskatchewan and the new 177 MW Chaplin Wind Energy Project to be developed by Algonquin Power:

Obama Attacks Renewable Energy Critics

In a speech earlier today in Washington, US President Barack Obama ridiculed critics of renewable energy sources, calling them "naysayers" and comparing them to the "flat-earthers of yesteryear". Obama went on to state that "a lot of the folks who are running for a certain office who shall go unnamed, they've been talking down new sources of energy, They dismiss wind power. They dismiss solar power. They make jokes about biofuels. They were against raising fuel standards. I guess they like gas-guzzlers." Obama's recent statements seem to indicate increased funding for renewable energy projects in the US if he gets in for a second term.

First Nations Renewable Energy Projects in Canada - Expert Counsel Critical to Success

Nathan Denette/The Canadian Press

The key to success of your renewable energy project on First Nations land or in partnership with First Nations is expert counsel.

Here is an excerpt from today's issue of the Canadian national daily newspaper, the Globe and Mail:

Aboriginal law expert Thomas Molloy moves to Miller Thomson

With tensions between native bands and resource companies showing few signs of going away, Miller Thomson LLP has hired one of Canada’s pre-eminent experts in aboriginal law.

The firm has added to its Saskatoon office Thomas Molloy, a lawyer with 40 years experience in native land claims, acting for the federal government in the 1999 creation of Nunavut.

He was instrumental in the landmark Nsiga’a treaty in British Columbia, and acts for the Ontario government in the land-claim controversy in Caledonia, Ont. He has also acted for resource companies and utilities in their dealings with first nations.

Mr. Molloy said he left his old firm, MacPherson Leslie and Tyerman LLP, for Miller Thomson because of the national platform his new firm offers.

Despite recent headlines about confrontations with mining firms over land rights in Ontario, he said progress is being made. It’s just more difficult to see, since crises, blockades and legal battles usually hog the attention.

“It’s easier to get a story when there’s a demonstration … going on,” Mr. Molloy said. “When progress is being made, not much is reported, because people are just working. It’s sort of business as usual.”

Thanks to all who made the District Energy Seminar in Stockholm, Sweden a Great Success

Many thanks to Ambassador H.E. Mr. Kenneth Macartney, Inga-Lill Olsson and all the staff at the Canadian Embassy in Stockhom for putting on a great district energy event in Stockholm.

Special thanks to the many Swedish participants in the district energy industry which made this event a great success. I look forward to hearing from you regarding your proposed and current district energy projects in Canada.

Thanks also to Mary-Ellen Richardson, President of the District Energy Association of Canada and Ted Sheldon of the British Columbia Ministry of Environment.

Gamesa makes first Canadian sale - Algonquin to purchase projects from Gamesa

Gamesa Technology Corporation ("Gamesa") of Spain will supply five of its G97, 2 MW turbines to Saturn Power's Gesner Wind Farm, located near the northern shore of Lake Erie between Chatham-Kent and London in the Canadian province of Ontario. The turbines will be installed by mid-2012. "This is a new milestone for Gamesa. The Canadian wind market offers abundant opportunities, and Gamesa has the advanced technology products to bring this clean energy to market in a cost-effective way to benefit local consumers," says vice president of sales for North America, David Takash.

Last week Gamesa agreed to sell four U.S. wind projects to Canadian electricity provider Algonquin Power & Utilities Corp. for almost $900 million USD. The wind projects are located in Pennsylvania, Iowa, Texas and Illinois and will have 240 Gamesa-made turbines with a total generating capacity of 480 megawatts. The transaction between Gamesa and Algonquin will need regulatory approval from the U.S. Federal Energy Regulatory Commission, which may take about 45 days. Additionally, both companies reached an agreement to develop future wind projects in the U.S. and Canada. Gamesa will operate and maintain the projects for a term of 20 years.

District Heating Project in Saskatoon?

Could SaskPower, Saskatoon Light & Power and the City of Saskatoon work together to build the first large-scale thermal district heating project in the province of Saskatchewan?



The Queen Elizabeth II Generation Facility (QEII) is owned by SaskPower, the provincial utility in Saskatchewan. An overview of the QEII follows below:

• Originally named the South Saskatchewan River Generating Station; renamed and officially commissioned in 1959 by Her Majesty Queen Elizabeth II
• Natural gas-fired station located in Saskatoon, Saskatchewan
• Three original units with a combined generating capacity of 218-net MW
• Of the original three units, two units had a combined generating capacity of 123-net MW
• The third original unit had a generating capacity of 95-net MW and was commissioned in 1971
• Six 25-MW combustion gas turbines, along with systems to produce additional electricity from waste heat, were commissioned in June 2002; the combined-cycle technology adds 150 MW of supply and reduces our greenhouse gas emissions by an amount equal to emissions from 30,000 cars!
• Three natural gas turbines were added in 2010. Each one provides 36-net MW for a total of 108-net MW
• Total generating capacity 430-net MW

The QEII is just on the edge of the City of Saskatoon boundary.

Saskatoon Light & Power controls the distribution grid in the City of Saskatoon in the city's original 1958 boundaries which includes the energy-intensive downtown core. It would seem that a district heating project in the Northern part of the downtown core may be feasible.

District Energy Seminar in Copenhagen a Success

Many thanks to Ambassador Peter Lundy, Suzanne Steensen and all the staff at the Canadian Embassy in Denmark for putting on a great district energy event.

And special thanks to the many Danish participants in the district energy industry which made this event a great success. I look forward to hearing from you regarding your proposed and current district energy projects in Canada.

S & P green lights Algonquin Power's 177 MW Chaplin Wind Project in Saskatchewan: Chaplin Project has "no merchant risk"

Standard & Poor's Ratings Services announced that its ratings on Algonquin Power Co. ("APCo") are unaffected by the company's announcement of the 177 MW Chaplin Wind Project in Saskatchewan. The project has no merchant risk, as APCo will sell all energy production under a 25 year power purchase agreement with SaskPower, which is wholly owned by the Province of Saskatchewan. In 2011 Standard & Poor's upgraded Saskatchewan's credit rating to the highest level possible. For the first time in Saskatchewan's history, the credit rating is at the AAA level.

Algonquin's target construction completion for the Chaplin project is December 2016 with an estimated capital cost of $355 million CAD. It is assumed that Algonquin will finance the Chaplin Project with about 50% equity and 50% debt, consistent with its long term target capital structure. Based on this, Standard & Poor's continues to believe that parent Algonquin Power & Utilities Corp. will achieve target ratios of adjusted funds from operations-to debt of 15%-20%, with about 40%-50% of its consolidated cash flows supported by regulated cash flows from its other subsidiary, Liberty Utilities Co.

Standard & Poor's has confirmed what Algonquin and other developers have known for some time - Saskatchewan is ideally suited for utility-scale wind projects having one of the best onshore wind regimes in Canada, a stable and well-developed regulatory system and a utility controlled by the province with the highest credit rating possible. With the addition of the 177 MW Chaplin Project to the Saskatchewan grid in 2016, wind will make up 8.5% of the generation mix in Saskatchewan. However, given Saskatchewan's voracious demand for electricity due to the increase in large mining projects in the province it is expected that new gas-fired baseload generation will bring this figure down closer to 5% post 2016.

Source: (in part) Reuters and S & P release

Talvivaara receives approval to recover uranium for Cameco

The Finnish government announced today that Talvivaara Mining Company Plc has received approval to recover uranium from their existing nickel mine in Sotkamo, Finland. Talvivaara is building a separate uranium extraction circuit at the Sotkamo mine to facilitate recovery. The uranium extraction circuit still requires approval from the Finnish Radiation and Nuclear Safety Authority (STUK). The operation also requires approval from the Regional State Administrative Agencies (AVI) for Northern Finland.

Saskatoon, Saskatchewan-based Cameco has executed two agreements with Talvivaara. Under the first agreement with Talvivaara, Cameco will provide an up-front investment, to a maximum of $60 million USD to cover the construction cost of the uranium extraction circuit. Cameco’s capital contribution will be repaid through the initial deliveries of uranium concentrates under the first agreement. Once the capital is repaid, Cameco will purchase the uranium concentrates produced at Sotkamo through a second agreement that ends on December 31, 2027. The second agreement will provide Talvivaara payments for the uranium, based on a formula that references market prices at the time of delivery.

Cameco has and will continue to provide technical assistance to Talvivaara in the design, construction, commissioning and operation of the uranium extraction circuit to be constructed at the Sotkamo operation.

Source: Helsingin Sanomat - with thanks again to my wife, Minna-Riitta for the translation

SaskPower 175 MW wind RFP successful proponent announced: Algonquin Power & Utilities Corp.

Algonquin Power & Utilities Corp. ("APUC") announceed that Algonquin Power Co. ("APCo"), APUC's power generation subsidiary, was the successful proponent under Saskatchewan Power Corporation's ("SaskPower") Request for Proposal ("RFP") CO/690.

APCo's 177 megawatt Chaplin Wind Project (the "Project") will be located in the Rural Municipality of Chaplin, Saskatchewan, 200 km south-west of Regina, Saskatchewan, with construction completion targeted for December 2016. The Project will be constructed at an estimated capital cost of $355 million CAD and consist of approximately 77 multi-megawatt wind turbines. The Project is in the same area as the existing 152 MW SaskPower Centennial Wind Farm.

The Project enjoys an excellent wind resource, consistent with APCo's existing wind power projects in the province of Saskatchewan, and will satisfy the energy needs of approximately 70,000 homes. The Project is expected to generate first full year EBITDA of $37.5 million CAD. All energy will be sold under a 25 year Power Purchase Agreement ("PPA") between SaskPower and APCo's wholly owned subsidiary Windlectric Inc. The PPA has an annual commercial power purchase rate escalation of 0.6% of the tariff in the preceding year. The Project was jointly originated in 2009 by APCo and Gaia Power Inc.

"Achieving this award in the SaskPower RFP process is both exciting and significant to the size and long term contracted nature of APCo's renewable energy portfolio", commented Ian Robertson, Chief Executive Officer of APUC. "We are very pleased with the continuing growth of our wind energy portfolio in the Province of Saskatchewan and the benefits of its excellent wind regime."

SaskPower has yet to issue a formal Press Release.

In March 2011 Algonquin purchased two proposed wind energy development projects near Morse, Saskatchewan each with a capacity of 10 MW from Kineticor Renewables Inc. The total estimated capital cost of both projects is $55 to $60 million CAD. The development phase is expected to be completed in late 2013. The projects are to be constructed about 180 km south-west of Regina, near Morse. Morse is about 25 km from Algonquin's new Chaplin Project.

Algonquin also owns the 26 MW Red Lily Project near Moosomin, Saskatchewan which was commissioned in February 2011.

Source: (in part) Algonquin Power & Utilities Corp. Press Release - 02/28/2012 16:10

Wind energy construction in Finland may double in little more than a year

Construction of wind power came almost to an end in Finland last year, but is now restarting. The amount of wind power provided to the grid may double in little more than a year. According to the Executive Director of the Finnish Wind Energy association, Anni Mikkonen, this year building permits have already been granted for 100 MW of projects. This is a lot if you compare the total with the number of completed wind power projects. At the end of 2010 there were 130 turbines whose output totaled 197 MW. Last year, only three small scale wind energy projects were completed in Finland. The delays are most commonly caused by complicated application processes and bureaucracy. However, both issues are now being addressed in Finland. The Finnish Department of Defence has finally started their studies on the effect of wind farms on radar data and the flight altitude recommendations above wind sites have been revised.

Source: Helsingin Sanomat, with special thanks to my lovely wife Minna-Riitta for the translation from Finnish to English

36 MW First Nations biomass project moving forward in Northern Saskatchewan

Engineers are designing the $150 million CAD Meadow Lake Bioenergy Centre that will be built on 10 acres of land at Norsask Forest Products east of the city in Northern Saskatchewan. The site will be prepared this summer and the majority of construction done in 2013 on the structure that will burn wood by-products to produce enough green energy to power 36,000 homes.

“We’re very focused on it,” said Ben Voss, president and CEO of resource development for Meadow Lake Tribal Council (MLTC). MLTC signed a 25-year agreement with SaskPower in 2011 to sell the utility power. About 200 workers will be needed for the construction phase, said Voss. They include people who haul gravel, heavy equipment operators, steam pipe welders and millwrights. “We want to try to work as much as possible on training and seeking ways to get people from our own communities involved,” said Voss. Gord Iron runs a program at MLTC that will identify workers who have the proper skills. Skilled trades workers will also be drawn from Robwel, Tron Power and construction companies, said Voss. The crew will likely be accommodated in Atco trailers near the construction site, at Flying Dust or at Canoe Lake.

“There are a number of other business opportunities for the area,” said Voss. “You have 200 people working. They need to be fed. They need to be taken care of. There are a number of other services that go with that.” The Bioenergy Centre will work much the same way as a steam locomotive, he said. “You literally have a place where the fuel is pushed in and it’s burning,” he said. “That burns very hot and produces steam through a boiler. The steam is then put through a pipeline to a turbine and the turbine is the same thing as you’d see on an aircraft… the steam drives the turbine and the turbine drives a generator that makes electricity.”

The Bioenergy Centre will produce 36 megawatts (36,000 kilowatts) of power. Voss said a typical home in Saskatchewan consumes one kilowatt. The power will be fed into the grid and transmitted to homes, farms and businesses. “The electricity that comes to Meadow Lake right now is generated (far away) in places such as Estevan or Saskatoon,” he said. “When it’s transported that far there are transmission losses. By putting generation right in Meadow Lake it reduces that loss.” SaskPower president and CEO Robert Watson said the utility must double its production over the next 10 to 15 years to meet the increased demand for power. It wants to use green power to close the gap. If all goes according to plan, the Bioenergy Centre will be up and running in 2014 seven days a week, 24-hours a day.

Source: The Meadow Lake Progress

Investing in renewables: Analysts recommending investing in utilities, IPPs and developers while avoiding manufacturers

As most are aware, solar PV cell and wind turbine manufacturers are trading significantly lower than their peak levels in 2007/8.

The stock of Danish Vestas Wind Systems AS, the world's largest wind turbine manufacturer, has dropped 90% over the past four years. The United States' leading solar PV manufacturer, First Solar Inc. has fallen from more than $250 USD to just over $40 USD in the same 4 year period. Norwegian solar equipment manufacturer Renewable Energy Corp. is trading at 1/40 of its price at the start of 2008. Similarly Spain's turbine manufacturer Gamesa Corp., China's solar PV cell manufacturer Suntech Power Holdings and India's turbine manufacturer Suzlon Energy Inc. all have seen their shares drop over the past few years. QCells, Germany's large solar PV cell manufacturer had to restructure its debt to stave off bankruptcy. Large global companies, like Vestas and First Solar, have strong balance sheets which will allow them to survive - albeit with lower margins - until things pick up but smaller companies are facer bigger problems.

Solar PV and wind manufacturers are facing 4 major problems:

- low natural gas prices;
- new production in China;
- less favourable political climate both in Europe and North America; and
- the global economic downturn has prompted governments and corporations to tighten support and spending on renewables.

A better bet for investors is to consider utilities, power producers or developers who can actually take advantage of the downward pressure in equipment prices like Brookfield Renewable Energy Partners LP, a Canadian dividend-paying stock with power plants in Canada, the U.S. and Brazil. In contrast to the equipment makers, it has seen its stock rise about 35% since the beginning of 2008.

Sources (in part): Globe Investor, Bloomberg, The Globe and Mail, Richard Blackwell

Chad Eggerman in Copenhagen, Denmark and Stockholm, Sweden presenting on District Energy in Canada: Developments, Projects and Investment Opportunities

I will be delivering a presentation and attending a networking luncheon at the Canadian Embassy in Copenhagen, Denmark on Tuesday March 6, 2012 at 10:00am – 2:00pm. The seminar is entitled District Energy in Canada: Developments, Projects and Investment Opportunities and will be undertaken along with keynote speaker, Mary-Ellen Richardson, President of the Canadian District Energy Association.

Mary-Ellen and I will deliver a similar presentation in Stockholm, Sweden on Wednesday, March 7, 2012 at 3:00pm – 5:00pm followed by a networking reception.

District energy is on the move across Canada. From east to west new systems are being developed at a faster pace than ever before. Municipalities are looking to district energy solutions to help meet their greenhouse gas reduction goals, attract new development and tap underutilized local resources. Combined heat and power is becoming more common, and natural gas-fired plants are being augmented with energy from geoexchange, solar thermal, biomass, biogas, deep water cooling and waste heat recovery sources.

Invitations and additional details regarding the presentations are attached below:

Copenhagen, Denmark Invitation

Stockholm, Sweden Invitation

For those of my contacts, clients, friends and former colleagues in Copenhagen and Stockholm, I would welcome your attendance at the presentation or the opportunity to meet.

Munich-based Siemens long-term growth strategy for Western Canada focused on Saskatchewan as plans for further expansion in the province move ahead

In November 2011, Munich, Germany-based Siemens, one of the largest and most diversified companies in the world operating in the energy and mining sectors, acquired Regina, Saskatchewan-based Prairie West Technical Services. Less than 4 months after acquiring Prairie West, Siemens annouced earlier this month they are aiming to expand the operation, which specializes in large electric motor repair and service for the mining and oil and gas industries in Saskatchewan.

“For us, it’s really the start of the investment,” said Michael Gross, senior vice-president, industry sector, Siemens Canada, referring to the German company’s decision to acquire Prairie West — its first major investment in Saskatchewan — rather than start from scratch.

“At the speed the economy in Saskatchewan is developing, it would have taken, from our point of view, way too long. That’s why we decided to go with an M&A (mergers and acquisitions) strategy and buy a company and grow that company.’’

With the acquisition completed in November, Gross and his staff have been working to make Prairie West and its 60 employees part of Siemens Canada, which has 4,000 employees and annual sales of $3 billion. “We’re in the process of integration,’’ Gross said in an phone interview from Siemens Canada headquarters in Toronto.

That integration process included a visit to the Prairie West facility in January by Ralf-Michael Franke, CEO of the drive technologies division, industry sector, of Munich-based Siemens AG. (Siemens, Europe’s largest electronics and electrical engineering firm, is divided into three sectors — industry, energy and health care. The industry sector has three divisions, one of which is drive technologies.)

While a small acquisition for Siemens, Prairie West, which has branch operations in Saskatoon and Sudbury, is an integral part of the company’s plans to expand into the mining and oil and gas sectors. “Prairie West is very strong in terms of potash mining ... Prairie West was, for us, the perfect target to have a significant entry into that market and form the nucleus to grow the business.”

Gross said mining and oil and gas development figure highly in Siemens Canada’s plans. “We’re defining a detailed strategy and growth plan for our vertical minerals (business) and one of the core areas is going to be Saskatchewan. We’ve already had the first discussions on how fast we can grow.’’

In fact, one of the challenges facing Siemens is going to be staffing its facilities as they gear up for expansion. “One of the (problems) here is how to get skilled labour. You might be willing to grow faster, but you just don’t get the people.’’

Siemens has already undertaken projects in Saskatchewan, In 2010 Nokia Siemens Networks was awarded a significant contract to upgrade SaskTel's 3G mobile phone infrastructure. Nokia Siemens Networks is based in Espoo, Finland.

In addition to being involved in the mining, oil and gas and IT sectors, Siemens is a global player in the renewable and conventional energy sectors. It is expected that in the future Siemens will make further moves into this area in Western Canada from their Saskatchewan base of operations.

Source: (in part) Leader Post, Bruce Johnstone

Nova Scotia Community Feed-In Tariff (COMFIT) projects approved

The Nova Scotia Department of Energy has approved a further round of Community Feed-In Tariff (COMFIT) projects. The five projects include wind farms being developed by Millbrook First Nation, the Halifax Regional Water Commission, the District of Chester, the Town of New Glasgow and Celtic Current. "These projects harness the energy of their communities in more ways than one. Not only do they use local resources for the good of the surrounding area, they bring neighbours together in a spirit of cooperation and self-sufficiency," says Energy Minister Charlie Parker.

The Millbrook First Nation project is a 6 MW wind project and the first Mi'kmaq COMFIT project application approved. It is anticipated that the Mi'kmaq First Nation will have subsequent renewable energy projects approved under the COMFIT.

Municipalities, First Nations, co-operatives, universities, community economic development funds and not-for-profit groups can apply to the COMFIT in Nova Scotia. The COMFIT program will help the province of Nova Scotia reach its aggressive renewable electricity targets of 25 percent renewable electricity by 2015 and 40 per cent by 2020. The province expects 100 megawatts to be produced through the COMFIT.

Canada now ranked 6th globally in new wind capacity: $3.1 billion CAD invested in 2011 adding 1,267 MW

The Canadian government has been working hard lately to pitch Canada is an energy superpower and this seems to ring truer every day. Apart from being the world’s 6th largest crude oil producer, Canada has emerged as a renewable energy giant after being ranked 6th globally in new installed wind energy capacity, according to statistics released recently by the Global Wind Energy Council (GWEC). Canada attracted $3.1 billion CAD in the wind energy sector in 2011 adding 1,267 megawatt of new capacity to provincial grids, a 21% improvement over the previous year. Canada now boasts total capacity of 5,265 MW of wind energy after new projects were built and commissioned in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, and Nova Scotia during 2011. The Canadian Wind Energy Association (CanWEA) expects 2012 to be another record year for wind development in Canada with approximately 1,500 MW of new developments expected to come online in Quebec, Ontario, Alberta, British Columbia, Prince Edward Island and Nova Scotia. “With similar or higher levels of growth expected over the next four years, Canada’s wind energy industry is on pace to easily surpass 10,000 MW of total installed capacity by 2015 – keeping the country on track to meet CanWEA’s national WindVision target of supplying 20% of Canada’s electricity needs by 2025,” said a CanWEA statement.

Source: Yadullah Hussain, Financial Post

Swedish company proposes floating wind farms for Malta and Cyprus

Swedish company Hexicon AB, recently submitted a Project Description Statement to the Malta Environment and Planning Authority. This is the first time the project was made public although in May 2011 a number of foreign websites had referred to the endorsement of this project by regulatory authorities in Malta, Sweden and Cyprus in a bid to obtain EU funding for this renewable energy project.

According to the report, a location on the northeast of Malta 11 nautical miles from shore, where water depths vary between 100 and 150 metres, has already been identified. A cable would link the wind-farm to an offshore substation in Maghtab.

Malta will have to increase its renewable energy share to 10% from the current 1-2% by 2020.

The plant will produce 54MW, which amounts to 9% of the energy currently generated by the two existing power stations, and 24MW more than projected from the proposed Sikka l-Bajda windfarm.

The PDS claims that this development will enable Malta to meet its EU commitment to generate 10% of its energy from renewable sources by 2020. It also promises "the production of energy at a more competitive rate than oil based power generating facilities".

Hexicon's technology for large-scale, floating platforms for wind and wave power was analysed and reviewed by the Swedish Energy Agency, the Malta Resources Authority and the Ministry of Agriculture, Natural Resources and Environment of the Republic of Cyprus.

The hexagon shaped platform will be constructed on the basis of offshore oil rig platform technology. The company claims that its platform has an expected lifespan of 50 years while the turbines have a life expectancy of 25 years.

Source: Malta Today, Thursday 16 February 2012 edition

3 innovative clean technology projects receive Go Green funding in Saskatchewan

The Saskatchewan provincial government is providing Go Green funding for three new projects that address the government's priority areas of biodiversity, education and awareness, greenhouse gas emissions reduction and water conservation, the Ministry of Environment announced earlier this month in a government Press Release.

1. Eat Healthy Foods of Regina will receive $36,000 CAD for an efficient cold storage project that will use cold outdoor air to operate grocery store refrigerators and freezers and reduce electrical consumption. For about six months of the year, Saskatchewan's outdoor temperatures are low enough to keep coolers and freezer units in grocery stores at good, safe temperatures. If proven effective, the technology could be adopted throughout most of Canada and in other northerly climates such as Northern Europe.

2. The Native Plant Society of Saskatchewan is developing a series of classroom and field activities and teaching resources focusing on native plants and habitats. The Go Green Fund is contributing $24,000 CAD for the initiative, which will enable the society to develop a program that helps young people learn more about the importance of natural habitats and how they can conserve them.

3. Ground Effects Environmental Services Ltd. (GEE) of Regina will receive $49,000 CAD from the Go Green Fund to test its new ElectroPure Technology, which is designed to limit the use of fresh water by industry through the treatment and reuse of existing industrial waste water. Evraz, one of the largest vertically integrated steel and mining businesses in the world, with a steel and pipe manufacturing facility in Regina, is the test partner and expects to save three million litres of water during this project.

Additional projects are currently being negotiated for Go Green funding in 2012. Over the past four years, the Saskatchewan government has committed $70 million CAD to the Go Green Fund for research and demonstration projects and incentive programs.

Sources: (in part) The Regina Leader-Post, Government of Saskatchewan Press Release

Joining Miller Thomson LLP as Partner in the Saskatoon office specializing in energy, mining and natural resources

Effective today, February 13, 2012 I have joined the partnership of Miller Thomson LLP. Miller Thomson enjoys a reputation as one of Canada’s most respected national business law firms with more than 470 lawyers in offices across Canada. Miller Thomson is currently the only national law firm with offices in Saskatchewan.

My updated contact information follows below:

Chad Eggerman
Partner
Saskatoon
306.667.5616 (office)
306.380.7664 (mobile)
306.652.1586 (fax)
ceggerman@millerthomson.com (email)
millerthomson.com (web)

Miller Thomson LLP
Princeton Tower
123-2nd Avenue South
Suite 600
Sasktoon, SK
S7K 7E6
Canada

Profile: http://www.millerthomson.com/en/our-people/chad-eggerman

I have already been in contact with many of my clients and many of your files have already transferred and I look forward to continuing to work together with you.

I would be happy to hear from others who wish to take advantage of the considerable opportunities in Saskatchewan in the energy and natural resource sector and work together with one of the largest law firms in Canada providing comprehensive legal services to Canada’s energy and natural resource industries.

Our lawyers have developed an excellent reputation for their advice and counsel to clients in transactions involving energy and natural resource industries in Canada, the U.S. and Europe and providing high-quality representation in complex transactional, regulatory and litigation matters.

We are proud of our commitment to client service and our creative approach to problem-solving. Many of team members are recognized leaders in their field and active participants in resource sector industry organizations. Industries we serve include:

- Oil and Gas
- Acquisitions and Divestitures
- Power Generation
- Mining
- Agriculture and Food Production
- Forestry
- Environmental
- CleanTech
- Transportation

I look forward to the opportunity to work together with existing and new clients at this exciting time for energy and resource development in Saskatchewan.

SaskPower moving forward with new 230 kV and 138 kV transmission in windy Southwest Saskatchewan

This week SaskPower held a second round of open houses in Swift Current, Gull Lake and Shaunavon in windy Southwest Saskatchewan. SaskPower plans to upgrade and replace two transmission lines in the Southwest. One proposed project is a 230 kV transmission line to supply service to TransCanada Pipeline’s Keystone Piapot site and the second proposed project is for a 138 kV transmission line to supply service to the TCC Keystone Grassy Creek site southeast of Shaunavon.

The two new proposed lines would start at the Swift Current switching station, located about 8 km west of the city. The first portion of the lines would use double circuit structures and carry both the 138 kV and 230 kV conductors south and west of Swift Current. The two lines would then branch off from one another near the 152 MW Centennial wind farm near Gull Lake, with the 230 kV service continuing west to the Piapot site and the 138 kV service continuing south past Shaunavon to the Grassy Creek site.

Even though the project is linked with the Keystone project, which has yet to receive full approval for construction, SaskPower is selecting an appropriate route for the proposed lines now, and securing the necessary environmental approvals for these routes so that it is prepared to proceed when TransCanada is ready.

However, even if the pipeline does not proceed, SaskPower still plans to move forward with system reinforcements in the Southwest as part of its plan to renew its electricity system to meet the province’s growing needs.

Originally construction was to begin on the project in January 2013. The start date has been rescheduled for August 2013. The line will likely be complete by April 2014.

The transmission upgrade will help service the growing oil and gas sector but will also be an important upgrade to facilitate future wind farm developments which are likely to be located in the very windy Southwestern part of the province.

Source: (in part) Maple Creek News, Shaunovan Standard

Current biomass and biogas projects under development in Saskatchewan

A. What are the type and scale of projects currently going forward in Saskatchewan?

There are currently 5 biomass and biogas projects under development in Saskatchewan which have been publicly announced. There are other projects under development for which details have not been publicly announced.

1. 35 MW biomass plant at Meadow Lake

Meadow Lake Tribal Council (MLTC) has signed a deal with SaskPower for a 35 MW biomass project and received a power purchase agreement (PPA). The new Meadow Lake-area biomass energy facility is scheduled to reach COD in 2014.

The MLTC has signed a deal with SaskPower with the intent to create a new biomass power generation facility in the area creating 300 jobs, 25 of which will be permanent jobs at the facility.

SaskPower Energy and Resources Minister Rob Norris explains the biomass centre will be a greener way to generate power for the company's grid. The biomass procedure will provide a use for the material cast off from the forestry industry.

“We know that as a growing province we are going to need more energy,” said Norris. “It helps us work with another partner ensuring that Saskatchewan has energy security and at the same time work closely with the first nations.”

The proposed facility is expected to create enough energy to power 36,000 homes for a full year.

2. Prince Albert Biomass cogeneration project at pulp mill

The CEO of SaskPower, the utility purchasing the excess generation and the general manager of P.A. Pulp, the generator, have announced that the two companies intend to have the biomass cogeneration power facility at a pulp mill in Northern Saskatchewan delivering electricity to the grid by late May 2012. Details have not yet been released regarding the generation capacity of the biomass cogeneration plant.

Dale Paterson of P.A. Pulp, said that when negotiating the contract for the recent sale of the pulp mill, part of the agreement was that the mill would provide “green energy” to SaskPower’s grid. “We’re working to generate green energy by (some time in) May,” said Paterson. “We started in September and we‘re about halfway there now. $5 million dollars has been spent on the project (so far) and another $5 million will be spent (in the coming months),” Paterson added. Paterson explained that the pulp mill’s biomass boiler and a turbine will be producing the power generated at the mill. About 21 people who were previously employed by the mill are being hired to provide maintenance on the cogeneration project, Paterson said. The power will be used to operate the mill itself and the excess power will be sold to SaskPower. As well, producing energy is integral to getting the mill ready to produce dissolved pulp in about a year and a half (the third quarter of 2013), as the energy produced on-site will provide much-needed heat for construction crews undertaking the work, explained the mill’s general manager. “We’re very happy to be working cooperatively with SaskPower to have this (project) operational (by May),” Paterson said.

In speaking with Robert Watson, the CEO of SaskPower, Mr. Watson reiterated that the corporation signed an agreement with Paper Excellence (the company that purchased the mill) regarding the co-generation project. “We’ve had meetings with them regarding the timeline and the technical issues involved,” stated Watson. In terms of the technical issues, Watson explained that the distribution of the power must be fine tuned—meaning, the excess energy generated by P.A. Pulp can’t just be pumped onto the grid heedlessly - rather, it needs to be “balanced” or specific areas would be affected and blackouts could occur. “We’re going to accommodate them when they are ready,” said Watson, in reference to the mill’s plan to be producing power by late May. “We have told our employees that we will be accepting power generated at (P.A. Pulp) onto our grid. We need the power, so we are willing to take it (once the mill is able to generate it), said Watson. Watson said that utilizing cogenerated power projects, such as the one with P.A. Pulp, is a cost-effective means of obtaining power. When asked if the Crown corporation had other cooperative projects underway in the province, Watson said there were a few, such as one at Potash Corp’s Cory Potash mine, east of Saskatoon.

It is expected that other mining companies planning to build mines in Saskatchewan such as BHP Billiton, Vale and K & S are also considering onsite cogeneration facilities at their mine sites.

3. Nipawin Biomass Cellulose Ethanol project overview

Developer: Nipawin Biomass Ethanol New Generation Co‐operative Ltd. (“Nipawin Biomass”)

Location: Town of Nipawin in North-East Saskatchewan, Canada

Type of facility: Biomass cellulose ethanol plant

Strategic Partners:

1. Saskatchewan Research Council (“SRC”)
2. Fulcrum BioEnergy, Inc.
3. Shore Gold Inc.

Feedstock: The facility will process non‐merchantable waste timber and local farm fibre (flax/straw) into ethanol. The facility will require approximately 200,000 oven dried metric tonnes of cellulosic fibre per year, approximately two‐thirds of which would come from forest residue supplied by Shore Gold Inc. and the remainder from farmers in the local area. Shore Gold Inc., a mining company developing a nearby diamond mine have entered into an MOU with Nipawin Biomass to deliver the excess trees to the facility to be converted to ethanol. First Nations people and businesses will be involved in the clearing, removal and transportation of the waste wood.

Pre-feasibility Study complete? Yes.

Proposed capacity: 75 million litres/year

Estimated capital budget: $30-50 million CAD

Proprietary technology: Nipawin Biomass and SRC have jointly developed a proprietary conversion technology which will process synthesis gas from waste wood and farm fibre, such as flax fibre or straw, into ethanol and other alcohols.

Why this project is important: The facility will be among the first in the world to convert cellulose into ethanol. The catalytic conversion process developed by Nipawin Biomass and SRC is being integrated into California-based Fulcrum Energy Inc.’s proprietary process for converting municipal solid waste into ethanol. Fulcrum is on track to complete their first plant in 2013 in Nevada and will become one of the first companies to commercially produce ethanol from municipal solid waste.

Current status of project: Nipawin Biomass and SRC signed an agreement in fall 2011 to help complete the cellulosic ethanol plant. The agreement outlines the next series of development requirements for engineering support to advance the design for the Nipawin Biomass cellulose ethanol facility. SRC is currently undertaking this work and a report is expected in 2012.

Next steps: Once Fulcum completes their first plant in Nevada, Nipawin Biomass aims to follow closely behind Fulcrum and to be ready to begin construction of their facility in Saskatchewan within a few months of completion of the Nevada facility.

4. City of Saskatoon Landfill gas project

The City of Saskatoon, through its electric utility - Saskatoon Light & Power and the Environmental Services Branch, is developing a Landfill Gas Collection System at the City Landfill Site. Collected LFG will be piped to a Power Generation Facility adjacent to the landfill. The LFG will then be used to fuel internal combustion engines. The engines are coupled to electrical generators to produce power that will be fed to Saskatoon Light & Power's electrical grid. This project has the potential to reduce annual greenhouse gas emissions by over 90,000 tonnes per year (equivalent to removing over 16,000 vehicles from our roadways) and provide enough power for up to 2,600 homes. The capital cost of the project is $10 million and will be operational by 2012. The project is partially funded (50%) by the Governments of Canada and Saskatchewan through the Canada-Saskatchewan Provincial-Territorial Base Funding. Detailed design of the facilities is underway. A competitive procurement process for construction of the project is currently underway. It is expected the facilities will reach COD in 2013.

5. City of Regina Landfill gas project

The City of Regina is currently collecting and flaring landfill gas and has plans to connect a generator in the near future.

B. Are there any projects in Saskatchewan that involve refining value added production like bioplastics and food additives?

I am not aware of such projects but I know of plastics manufacturers in Saskatchewan recycling plastic waste for reuse and new production.

C. Is the government of Saskatchewan doing anything to encourage development of the emerging biomass/biogas sector?

Yes, the government controlled monopoly utility SaskPower has committed to providing up to 25 MW of Power Purchase Agreements to biomass and biogas projects every year in the province through the Green Options Partners Program.

SaskPower has also committed to providing PPAs for First Nations biomass and biogas projects such as the 35 MW First Nations PPA in Meadow Lake and the cogen PPA in Prince Albert. It is anticipated that with the cooperation of the newly created First Nations Power Authority in Saskatchewan many new biomass First Nations projects will move forward in the near future supported by PPAs from SaskPower. The government of Saskatchewan has also publicly expressed support for First Nations energy projects.

D. Are there any notable collaborations between the oil and gas industry (or any other "traditional" industry) and the biomass industry?

Paper Excellence, a Dutch company is selling electricity to SaskPower generated from their biomass plan producing cellulose fiber for manufacturer of cloth and other clothing items.

Veresen Inc. owns and operates four, 5 MW waste heat power generation units located adjacent to compressor units on the Saskatchewan segment of the Alliance pipeline.

Finnish wind power capacity to continue to increase significantly in 2012

“Now it is almost certain that a number of the sites have already started construction," says the Finnish Wind Energy Association Executive Director Anni Mikkonen.

Last year, wind power development projects fell short of targets set because of the wind power production subsidy forms and regulation changes.

The Finnish Ministry of Labour and the Economy has set up a working group to further identify the factors that hinder the production of wind power in Finland.

Overall wind power capacity will rise to nearly 300 megawatts in Finland in 2012, while 7 projects are already under construction and the park “Tervolan” will be completed shortly.

Tervola Varevaaran is the area where many of Finland's first inland wind farms are located.S-Group and the energy company St1 who own the wind energy company, TuuliWatti announced a multi-million EUR investment in wind farms in Finland last week.
A 30 MW project is expected to reach COD in Finland shortly.

Source: Helsingin Sanomat – January 31, 2012 (E&O excepted due to my poor Finnish translation – sorry)

RES awarded BOP contract for Halkirk wind project in Alberta

Renewable Energy Systems Canada Inc. (RES Canada) has been chosen by Edmonton-based Capital Power LP as the balance-of-plant (BOP) construction contractor for the 150 MW Halkirk wind project currently under construction in central Alberta.

The project is located near the town of Halkirk, 122 km east of the city of Red Deer, and will comprise 83 V90 1.8 MW Vestas wind turbines. Once completed, the wind farm will have the potential to power approximately 50,000 Alberta homes, according to RES Canada.

The Halkirk project is expected to reach COD in the fourth quarter of 2012.

Biomass cogeneration project at pulp mill in Saskatchewan aiming for COD in May 2012

The CEO of SaskPower, the utility purchasing the excess generation and the general manager of P.A. Pulp, the generator, have announced that the two companies intend to have the biomass cogeneration power facility at a pulp mill in Northern Saskatchewan delivering electricity to the grid by late May 2012. Details have not yet been released regarding the generation capacity of the biomass cogeneration plant.

Dale Paterson of P.A. Pulp, said that when negotiating the contract for the recent sale of the pulp mill, part of the agreement was that the mill would provide “green energy” to SaskPower’s grid. “We’re working to generate green energy by (some time in) May,” said Paterson. “We started in September and we‘re about halfway there now. $5 million dollars has been spent on the project (so far) and another $5 million will be spent (in the coming months),” Paterson added. Paterson explained that the pulp mill’s biomass boiler and a turbine will be producing the power generated at the mill. About 21 people who were previously employed by the mill are being hired to provide maintenance on the cogeneration project, Paterson said. The power will be used to operate the mill itself and the excess power will be sold to SaskPower. As well, producing energy is integral to getting the mill ready to produce dissolved pulp in about a year and a half (the third quarter of 2013), as the energy produced on-site will provide much-needed heat for construction crews undertaking the work, explained the mill’s general manager. “We’re very happy to be working cooperatively with SaskPower to have this (project) operational (by May),” Paterson said.

In speaking with Robert Watson, the CEO of SaskPower, Mr. Watson reiterated that the corporation signed an agreement with Paper Excellence (the company that purchased the mill) regarding the co-generation project. “We’ve had meetings with them regarding the timeline and the technical issues involved,” stated Watson. In terms of the technical issues, Watson explained that the distribution of the power must be fine tuned—meaning, the excess energy generated by P.A. Pulp can’t just be pumped onto the grid heedlessly - rather, it needs to be “balanced” or specific areas would be affected and blackouts could occur. “We’re going to accommodate them when they are ready,” said Watson, in reference to the mill’s plan to be producing power by late May. “We have told our employees that we will be accepting power generated at (P.A. Pulp) onto our grid. We need the power, so we are willing to take it (once the mill is able to generate it), said Watson. Watson said that utilizing cogenerated power projects, such as the one with P.A. Pulp, is a cost-effective means of obtaining power. When asked if the Crown corporation had other cooperative projects underway in the province, Watson said there were a few, such as one at Potash Corp’s Cory Potash mine, east of Saskatoon.

It is expected that other mining companies planning to build mines in Saskatchewan such as BHP Billiton, Vale and K & S are also considering onsite cogeneration facilities at their mine sites.

Source: (in part) Prince Albert Herald, January 18, 2012

Canadian developer, Windstream Energy Ltd. selects German manufacturer, Siemens to provide turbines for 300 MW offshore wind project in Ontario

Windstream Wolfe Island Shoals Inc., the development corporation for the Wolfe Island Shoals Offshore wind project in the Canadian province of Ontario has signed a binding agreement with Siemens Canada Limited, to supply up to 130 turbines for its 300 MW offshore wind project on Lake Ontario. The turbine blades will be manufactured at Siemens’ plant located in Tillsonburg, Ontario. Windstream holds the only offshore wind power Feed-in-Tariff (FIT) contract in Ontario, which was awarded by the Ontario Power Authority (OPA) in May 2010. The project is planned to be located from 5 to 16 kilometers off the southwest shore of Wolfe Island, in eastern Lake Ontario. By selecting Siemens, Windstream has guaranteed that the Wolfe Island Shoals project will provide more than 50 percent Ontario content. It will create more than 1,900 jobs for the first five years of development, and 175 jobs after construction. “We are very pleased to have entered into a contract for turbines with Siemens Canada. With Siemens’ 140 years of experience in the energy sector, and a global network of highly-skilled employees, we are confident that we have chosen the right supplier”, said Ian Baines, President of Windstream Energy. “Siemens is the world’s leading supplier of offshore wind turbines with over 2 000 MW installed globally offshore. We are planning to use their experience to develop the first offshore wind project in Canada.” he continued. “We are pleased to enter this agreement with Windstream for the Wolfe Island Shoals offshore wind farm and look forward to contributing to the development of Canada´s first offshore wind project,” said Bill Smith, Senior Vice President of Siemens Canada.

Source: (in part) Windstream Energy Inc. Press Release dated January 4, 2012

Saskatchewan to follow Ontario's lead with wind turbine setbacks

Dr. Moira McKinnon, Saskatchewan's chief medical health officer says that the province will soon see guidelines from Health Canada for how far wind turbines should be from homes.

The national guidelines, which have been circulated in draft form, will closely match those in place in Ontario, where the provincial government spells out a minimum distance of 550 metres, and could stop a patchwork of municipal guidelines from evolving.

Saskatchewan will defer to the federal guidelines, a move that likely won't quell a growing number of anti-wind activists who are calling for more stringent homegrown regulations as the province expands wind power.

"At this stage, they're looking very similar to Ontario," said Dr. McKinnon, Saskatchewan' chief medical health officer. "There will only be minor discrepancies (to Ontario's regulations)."

The issue of wind turbine setbacks has been central to the debate over the 120-metre wind turbine project planned for the Saskatoon landfill. The project was planned to be 780 metres away from the closest residence, a distance McKinnon called "perfectly acceptable" under the standards.

Most Saskatchewan municipalities don't have bylaws in place so wind companies have been negotiating directly with land owners on land lease agreements. The province has advised municipalities to use the Ontario regulations as a guideline, McKinnon said. The Health Canada guidelines will deal with noise and shadow flicker, and will account for the power of the turbine, the size of the blade and the geography of where the wind development is planned, she said.

When the landfill wind turbine report is tabled next Monday at city council, Coun. Pat Lorje says she will call for a moratorium on new wind energy projects in Saskatoon until the province has a standard setback distance in place. Lorje is calling for setback distances of up to two kilometres.

Dr. David Colby, medical health officer in Chatham-Kent, Ont., and a professor of medicine at the University of Western Ontario, said health concerns have been overblown by opponents. There is scientific consensus that setback distances in place in Ontario, some of the most stringent in the world, are more than sufficient. Countless studies and literature reviews have shown there are no direct adverse health effects, though the turbines can be annoying, he said.

"What it all comes down to is basically turbines don't generate enough acoustic energy to adversely effect human tissue," Colby said. "You can't get away from that. The idea that inaudible sound can make you sick is not supported by the scientific community."

McKinnon says the guidelines will be re-evaluated if new evidence comes to light.

"If the public is feeling there are effects we need to look into that," McKinnon said. "There has been an extensive consultation process for these guidelines, but the work doesn't stop in terms of continually examining the evidence."

Setting stringent regulations in law instead of industry guidelines is unnecessary, McKinnon said. The province is set to add 175 megawatts of wind power from one or more independent producers who submitted bids last year and 25 megawatts from smaller-scale projects. Under the plans, wind power would make up 8.5 per cent of SaskPower's total generating capacity.

"The way forward is a partnership with industry," McKinnon said. "The industry is generally willing to comply with guidelines rather than regulations, which involve a lot of taxpayer money."

Source: DAVID HUTTON, THE STARPHOENIX JANUARY 12, 2012