Thursday, January 31, 2013

Vestas inks Tower Supply Agreement with undisclosed party to supply towers for North American wind power projects

This week Vestas announced signature of a Tower Supply Agreement to supply towers for a number of non-Vestas wind power projects over the next two years. The name of the developer or manufacturer which signed the Tower Supply Agreement with Vestas was not released.

The Tower Supply Agreement will see Vestas ramp up at its tower factory in Pueblo, Colorado, USA. Vestas soon will begin manufacturing the first phase of the Tower Supply Agreement that could use up to 25 percent of the production capacity. The agreement will create more than 100 jobs by the end of the first quarter of 2013. The Vestas facility can produce almost 1,500 towers a year, Vestas Chief Operating Officer Jean-Marc Lechene said this week.

Vestas is branching into tower manufacturing for external customers to boost revenue after overcapacity among turbine producers wiped out profit at the Danish company. Vestas and its competitors have cut jobs and withdrawn from weaker markets to reduce costs as wind-industry growth slows.

The Tower Supply Agreement, announced yesterday, marks the first time Aarhus, Denmark-based Vestas has sold the support structures to a competitor. The deal is with a single client, an American company with multiple projects, Lechene said, declining to identify the client or disclose financial terms. Vestas has also secured smaller deals for metal-cast components with non-wind customers, he said.

“Vestas is continuously evaluating its manufacturing footprint and opportunities to utilise the current production capacity better. Producing components for third parties is part of this strategy, and although we have had other smaller orders, this new agreement is the first major step in realising this plan,” Lechene said.

“Our tower factory employees are very excited about this new order,” said Tony Knopp, Vice President of Vestas Towers America, Inc., in Pueblo. “The extension of the Production Tax Credit (PTC) at the beginning of the year also was an important factor in securing this contract, and we are now in the process of evaluating our ramp-up plan.”

Sources: Bloomberg, Reuters, Vestas Press Release

Monday, January 28, 2013

University of Saskatchewan professor wins national award for solar energy research

Ronald Steer a professor at the University of Saskatchewan in Saskatoon has been awarded the annual Canadian Society for Chemistry’s John C. Polanyi Award for his research which is leading to new insights in the field of solar energy.

Steer and his team are attempting to make organic photovoltaics, also known as dye-sensitized solar cells (DSCs), a more efficient source of electricity.

Typically organic solar cells are around 10 per cent efficient and Steer says they are making great strides towards increases the amount of sunlight that is absorbed and converted into usable power.

“We have the proof of principle and soon we’ll be at the stage of having working devices,” said Steer.

“If we can achieve even the slightest increase, even one or two per cent efficiency of these cells, it could be beneficial to everyone.”

The team is also working on incorporating tougher materials such as carbon nanotubes to create a more durable, longer-lasting cell.

Not only was Steer awarded an Earned Doctor of Science at the University of Saskatchewan he has also been in their Department of Chemistry in Saskatoon since 1969.

Congratulations Professor Steer! Keep up the good work.

Source: Global News

Thursday, January 24, 2013

How many wind turbines does the Nordic region require in the next 27 years to meet stated GHG reduction goals?

The International Energy Agency (IEA) has proposed that the Nordic countries add more than 13,000 new wind turbines in order to achieve ambitious emissions-reduction schemes in the next three decades.

The proposal, part of a report presented on Tuesday, focused on wind power as a key to making the Nordics - Iceland, Finland and the Scandinavian countries - climate neutral by 2050.

The authors suggest that such an investment, along with upgrades to the grid, would cost 0.7 percent of the region's annual GDP - about $460 billion USD in total over the next 27 years, according to a calculation by Sveriges Radio (SR).

"In the global 2°C Scenario, energy-related CO2 emissions in the Nordic region must be reduced by 70 percent by 2050 compared to 1990," the report authors summarized.

The report suggested the use of fossil fuels be halved and account for only 20 percent of total electricity generation in the future.

In order to do so, relying on extensive wind generation "needs to grow particularly quickly and alone accounts for 25 percent of electricity generation in 2050."

Such a move, however, would place demands on refurbishing parts of the distribution network.

"This will increase the need for flexible generation capacity, grid interconnections, demand response and storage," the report authors wrote.

They highlighted that the region's access to hydropower and ambitious domestic targets were in the Nordic countries' favour in achieving climate neutrality.

Yet, Swedish industry association Svensk Energi noted in a response that wind turbines are still not completely accepted in Sweden.

Chair Kjell Jansson told SR there needed to be more focus on the technology from the politicians' side.

"I think with today's attitude it would be difficult to put this in place," he said.

"One has to accept new things, for example turbines in places where people now resist them, if we are to meet our climate target."

Sources: IEA, The Local.se

Wednesday, January 23, 2013

Ikea to double its spending on renewable energy to $4 billion USD: part of Ikea's plan to get all the energy used at its stores and by subcontractors from renewable sources by 2020

Ikea Group, the world's biggest furniture retailer, will double its investment in renewable energy to $4 billion USD by 2020 as part of a drive to reduce costs as cash-strapped consumers become more price sensitive.

The additional spending on projects such as wind farms and solar parks will be needed to keep expenses down as the company maintains its pace of expansion, Chief Executive Mikael Ohlsson said in an interview in Malmo, Sweden.

"I foresee we'll continue to increase our investments in renewable energy," said Ohlsson, who plans to step down this year after 3 1/2 years at the helm. "Looking at how quickly we're expanding and our value chain, we will most likely have to double the investments once more after 2015."

Companies such as sportswear maker Puma and drinks producer PepsiCo Inc. are expanding efforts to cut their use of scarce resources as they jostle for customers. Prices for wind turbines sank 23% in the three years that ended in June, while solar panels have tumbled by more than half in two years, making projects cost-effective, according to Bloomberg New Energy Finance.

Ikea plans to get 100% of the energy consumed at its stores and by subcontractors from renewable sources by 2020. The Swedish company owns 250,000 solar panels, mainly in the U.S., and invested in 126 wind turbines in northern Europe to cover 34% of its energy consumption.

Ohlsson said the retailer will have opportunities for "strong growth" in Europe for "many years to come" because many customers still do not have an Ikea store near them.

Sales in 2012 rose 9.5% to 27.6 billion EUR ($36.7 billion USD), the company said in a release, while net income increased 8% to 3.2 billion EUR.
   
In October, Ikea said it planned to more than double spending on wind farms and solar parks to as much as $2 billion USD to have the company cover more than 70% of its energy consumption by renewable sources in 2015 and protect it from volatile fossil-fuel prices.

The retailer is expanding its product range for customers to live more sustainable lives themselves, focusing on waste handling and cutting energy and water use.

"For now, we're mainly focusing on the big parts of resource use at home," Ohlsson said, adding that Ikea is testing some solar solutions for customers in Britain.

Source: Bloomberg

Tuesday, January 22, 2013

City of Saskatoon approves Power Purchase Agreement with SaskPower for $7.7 million CAD landfill gas project

City Council in Saskatoon has approved the final step towards a $7.7 million CAD project to collect methane gas from Saskatoon's landfill and convert that into electricity. The city of Saskatoon has been working since 2008 to develop a landfill gas collection system. The city of Saskatoon is expected to recover the cost of the landfill gas project after 9 years. "Because the numbers do make sense it's a good thing for us," said Troy Davies, Ward 4 city councillor.
 
Kevin Hudson, manager of metering and sustainable electricity with Saskatoon Light & Power, says the project is one way to reduce harmful greenhouse gases. "With the gas that we're capturing, it's equivalent to reducing our emissions by about 45 thousand tons annually," Hudson explained. "That's like removing about nine thousand vehicles from our roadways." According to Hudson, in many jurisdictions in North America, landfills are required to manage landfill gas so it is not released into the atmosphere.

Saskatoon city council has approved the sale of the electricity generated by the landfill gas project to SaskPower pursuant to a 20 year Power Purchase Agreement. In 20 years, according to the city, the overall project will have made a return to Saskatoon of $8.4 million CAD after taking into account the cost of building the system.

The city of Saskatoon estimates it will sell about $1 million CAD worth of electricity in its first full year of production, which is expected in 2014. Construction on the project is approximately 50% complete.

Additional information about this exciting project and the Green Energy Park in Saskatoon is available here: http://www.saskatoon.ca/DEPARTMENTS/Utility%20Services/Saskatoon%20Light%20and%20Power/powergenerationinitiatives/Pages/LandfillGas.aspx

Friday, January 18, 2013

SaskPower and Black Lake First Nation submit Federal EA determination request for Elizabeth Falls Hydroelectric Project in Northern Saskatchewan

As part of the amended Canadian Environmental Assessment Act, 2012 (CEAA 2012) put in place to support the government's responsible resource development initiative, the Canadian Environmental Assessment Agency must determine whether a federal environmental assessment is required for the proposed Elizabeth Falls Hydroelectric Project located in northern Saskatchewan. To assist it in making its decision, the Agency is seeking comments from the public on the project and its potential effects on the environment.

Black Lake First Nation and Saskatchewan Power Corporation are proposing the construction and operation of a 42 to 50 megawatt water diversion type electrical generating station at Elizabeth Falls. The proposed project would be located adjacent to the Fond du Lac River between Black Lake and Middle Lake, on Black Lake First Nation Reserve lands in northern Saskatchewan. The proposed project would involve the construction and operation of a water intake tunnel, a powerhouse, a switching station, a tail race, a construction camp, a bridge, access roads, and a transmission line.

A link to the summary of the Elizabeth Falls Hydroelectric Project is below:

http://www.ceaa.gc.ca/050/documents/p80031/84322E.pdf

The Agency will post a decision on its website stating whether a federal environmental assessment is required for the Elizabeth Falls Hydroelectric Project. If it is determined that a federal environmental assessment is required, the public will have three more opportunities to comment on this project, consistent with the transparency and public engagement elements of CEAA 2012.

CanBio Community Heat & Power and Bioeconomy mission to Finland for Wood Energy Solutions 2013 - February 11-15, 2013

Qualifying Canadian participants will receive travel grants of about $1,200 CAD for companies (1 grant per company), and up to 50% of eligible expenses for non-profit organizations (2 grants per organization) through DFAIT's GOA (Global Opportunities for Associations) program.

Click here to view the draft program for the mission

CanBio will bring a delegation to the Wood Energy Solutions Conference and Tour February 11-15, 2013 to learn the latest in Finnish community biomass energy and supply chain enhancements in a conference setting, and then see installations firsthand.  We will find out what’s new in the European bioeconomy, meet with potential European partners in Canadian bioeconomy development, and. The mission will include:
  • A 2-day conference in Koli National Park, where delegates will network with key European bioeconomy companies and stakeholders. The conference program will focus on key issues, including community energy, biorefining, biomass sustainability and trade, and more;
  • 2.5 days of tours, including visits to district energy installations of various size, a micro-scale CHP installation (30 kWe), Fortum’s pyrolysis oil plant (integrated with large-scale CHP), a Ponsse manufacturing facility, several supply chain demonstrations, a pellet and raw biomass research centre, and more (including more bioeconomy-related visits). There is also the possibility of visiting a Gasek installation;
  • A ½ day course on the dos and don'ts of district energy projects by Dr. Arto Nuorkivi, leading expert in CHP, district heating, and energy efficiency.
Registration includes a conference dinner featuring Karelian cuisine as well as a post-conference Finnish winter experience and the obligatory sauna!

Thursday, January 17, 2013

Why integrate renewable energy generation with your mining operation?

A synergy is created when renewable energy systems are integrated into existing and planned mining operations. This is of particular interest to remote or otherwise off-grid operations that are faced with expensive logistical challenges and environmental hurdles associated with transporting fuel over large distances to be used for on-site thermal generation or constructing expensive transmission infrastructure to bring on-grid power to their operations. Wasted energy is also an unnecessary cost.  Having a comprehensive energy strategy is key to cost effective mining operations.

Mining operators need an uninterrupted, cost-effective means of supplying energy to power their operations. Developers and operators may need to rely on higher cost coal-fired, oil and diesel generation can offset their carbon footprint and the risk of price escalation and security of hydrocarbon fuel supplies by integrating renewable energy schemes into their mine plans. Some of the plentiful and lasting potential benefits of renewable energy include the following:
  • Creation of a legacy resource, which will carry the mine through operations and may be shared with or co-managed with neighboring communities, fostering enduring relationships and good will (this is particularly beneficial for projects located in developing nations where clean power generation is rare or too costly for communities to develop on their own)
  • Opportunity for mining operations to distinguish themselves as sustainable ventures that are favorable to shareholders, community stakeholders, government regulators and environmental NGOs
  • Reduced dependence on volatile fuel prices and insecure supplies
  • Reduced carbon footprints
  • Opportunity to offset greenhouse gas emissions and to take part in the emerging carbon economy
Source: (in part) Knight PiƩsold Consulting

Wednesday, January 16, 2013

Greengate Power plans to start construction of Canada’s largest wind farm

Greengate Power, the Calgary-based developer expects to break ground in the spring on the 300MW Blackspring Ridge 1 project in Alberta, Greengate president and CEO Dan Balaban told reNews.

“We’re in the process of finalizing the engineering and the financing of the project,” said Balaban. “We expect to be under construction later this year and be fully operational in the first part of 2014.”

Alberta regulators last week approved a switch in turbines to the Vestas V100 1.8MW machine from the V90 model. The Danish manufacturer is expected to begin delivery of 166 turbines in the third quarter, said Balaban. Mortenson was named general contractor.

Blackspring Ridge 1, located about 165 kilometers southeast of Calgary, will tie into an existing 240kV transmission line via a six- to eight-mile wire that runs almost entirely through the project site. The Alberta Utilities Commission is reviewing an interconnection application by transmission facility operator AltaLink.

“We expect approval of that permit imminently,” said Balaban.

Blackspring Ridge is Greengate’s second wind farm. Capital Power in 2011 bought the 150MW Halkirk project, which achieved commercial operation in December.

Greengate won 20-year deals with Pacific Gas & Electric of California for renewable energy credits from the Blackspring Ridge and Halkirk wind projects.

Source: reNews

Tuesday, January 15, 2013

VTT of Finland commercializing process for cogeneration of bio-oil and heat

A technique that enables the cost-effective cogeneration of heating energy and bio-oil in the same power plant has been developed by VTT Technical Research Centre of Finland, along with the Finnish energy company Fortum, Finnish engineering company Metso and Finnish forest products producer UPM. VTT’s technique is based on combining pyrolysis and fluidized bed technology.

VTT feels the new technique will contribute to an increase in bio-oil production volumes in the next few decades. VTT received an innovation award for the new technology from the European Association for Research and Technology Organisations EARTO.
 
The new technique patented by VTT enables a considerable cut in the production cost of bio-oil.

Fast pyrolysis involves heating biomass such as forest industry waste to a high temperature to form gas. When the gas is cooled, it condenses into liquid known as bio-oil. Combining the pyrolysis process with traditional fluidised bed boilers used in power plants brings a range of efficiency gains, VTT explains. Producing bio-oil with the new technique is cheaper than in a separate pyrolysis process.

Bio-oil plants that are integrated into power plants are extremely energy-efficient, because the energy contained in the by-products of the pyrolysis process can be recovered in fluidized bed boilers. This is a significant improvement, because the by-products can contain as much as 40% of the original biomass’s energy. In turn, lost heat from the power plant can be used in the bio-oil production process.

The technique is due to enter commercial production towards the end of 2013 when the energy company Fortum opens its new integrated bio-oil and heating plant in the city of Joensuu in Finland. The plant is designed to produce 50,000 tonnes of bio-oil per year.

According to VTT, there are currently around 200 power plants in Europe and North America (including many in Canada) that could be converted to include a bio-oil plant.

Source: VTT, Pulp and Paper Canada

Monday, January 14, 2013

A new twist on anti-wind litigation: the Canadian Charter of Rights and Freedoms

Interesting article by Diane Saxe on anti-wind litigation at http://envirolaw.com/twist-antiwind-litigation-charter/.

Because of the social, environmental, and political importance of reducing carbon emissions and switching to renewable sources of energy, the Environmental Protection Act  in the Canadian province of Ontario requires wind opponents to show that a renewable energy project will cause serious harm to human health, or serious and irreversible harm to plant life, animal life or the natural environment. Every case to date in Ontario has failed to meet this threshold and one can sense desperation by anti-wind groups.

Accordingly, the latest anti-wind tactic is to claim that the threshold itself is unconstitutional, i.e. that anti-wind proponents have a right, under the Canadian Charter of Rights and Freedoms, to stop all wind turbines within 2 km of their home, without having to prove the probability of harm. Diane Saxe, on her blog has provided a link to a Statement of Claim Filed November 14. 2012 between Drennan and K2 Wind - http://envirolaw.com/wp-content/uploads/Statement-of-Claim-Nov-14.-2012.pdf.

In the claim, Shawn and Trisha Drennan have requested $4 million CAD in damages plus an injunction to prevent K2 Wind Ontario Inc. from obtaining a renewable energy approval from the Ontario Ministry of the Environment for its proposed wind farm in the Township of Ashfield-Colborne-Wawanosh, Ontario. 90 local landowners have leased their land for the project. Mr. and Mrs. Drennan claim that constructing a wind farm within 2 km of their home will create a nuisance, make them ill, and reduce their property values.

An interlocutory injunction is scheduled to be heard on February 6, 2013 in Goderich, Ontario. Meanwhile, the province of Ontario is seeking summary judgment to dismiss the action.

Source: Diane Saxe, envirolaw.com

Thursday, January 10, 2013

AMG aims to recycle wastewater from oil drilling using new process

Apex Management Group LLC (AMG) a San Antonio-based oil-field services management company is rolling out an oil-field technology aimed at recycling contaminated wastewater generated during production.

This process could remove toxic chemicals from the wastewater so it could be reused in the drilling process, eliminating the need for using fresh water for each well, said David Akin, CEO and president of . However, the company hasn’t yet filed permission with the state agency that governs the oil and gas industry.

The new process is used in northwestern Oklahoma in the Mississippi Lime rock formation, Akin said. This area has seen a boom in oil drilling, particularly by SandRidge Energy, Chesapeake Energy and Devon Energy. Akin declined to state which large independent company was contracting his services, due to a non-disclosure agreement.

In that area, exploration and production companies must use millions of gallons of fresh water during part of the drilling process known as hydraulic fracturing, or fracking. A company typically pumps about 4 million to 6 million gallons of water per well, as well as thousands of pounds of sand and tens of thousands of gallons of chemicals deep into underground rock formations. Fracking, combined with horizontal drilling, is credited with the current boom, and taps oil and gas resources that were previously regarded as unobtainable.

The Mississippi Lime formation also has lots of highly salty water with the oil and gas. Producers must dispose of millions of gallons of saltwater mixed with flow-back water that flows back up to the surface from a frack job. There is so much contaminated water produced in the area, SandRidge is drilling one disposal well for every eight petroleum wells and Devon is drilling one disposal well for every 10 petroleum wells.

With so much contaminated water, companies are looking for a way to turn that waste product into a resource. Akin said his process is more efficient than existing technology using centrifuges or filters to clean flow-back water.

Akin said the process uses methane gas that would otherwise be flared into the atmosphere to power natural gas turbines. The turbines are similar to helicopter engines that are frequently used in hospitals and in universities. The turbines superheat the contaminated water, similar to a distilling process. Though the end product isn’t drinkable, Akin said, it is clean enough to be used in fracking jobs.

He declined to state exactly how much his company spent to develop the process, but said that it was in the millions of dollars. Apex spent about three years developing and refining the recycling process, and has been operating a beta test of sorts with one company for about a year and a half.

In recent years, the Oklahoma Corporation Commission has modified and created new rules for companies developing processes for recycling water used in drilling operations. Last year, the agency had at least three cases looking at the process of commercial soil farming.

The process of soil farming combines waste mud laced with petroleum chemicals used in drilling with fertilizer and crushed gypsum rock and spreads it on farmland. The drilling mud in question must be tested to ensure that it doesn’t contain high levels of salts, heavy metals or petroleum products. Akin said residual material recovered from the recycling process is superheated to remove chemicals and could be used in soil farming operations.

Matt Skinner, spokesman from the OCC, said Apex’s technology would likely be covered under existing rules for recycling flow-back water. If the residual material removed from the water process meets acceptable levels, it could be used in commercial soil farming operations. The agency hasn’t yet received any applications from the company.

Sources: Dolan Media Newswires, Lexis Nexis, WaterWorld.com

Wednesday, January 9, 2013

Gamesa wins order for 54 MW wind farm from TuuliWatti in Finland

Bloomberg has just reported a few moments ago that Gamesa Corp. Tecnologica SA, Spain’s largest wind turbine maker, won a 54 MW order from Finland’s TuuliWatti Oy, expanding its presence in a market it entered last year.

The order for 12 of Gamesa’s G128 4.5-megawatt machines forms part of a 117 MW framework agreement signed in October, the Zamudio-based company said today in an e-mailed statement. The machines are specially designed to operate in low temperatures, it said.

“Finland is considered one of the most promising growth markets in the European wind energy business in coming years,” Gamesa said in the statement.

Finland is targeting 2,500 megawatts of installed wind capacity in 2020, up from about 200 megawatts now, according to Gamesa. Gamesa on October 25 said it’s concentrating on new markets, especially in Latin America, as it adjusts to a global market this year that it forecasts will include a 12 percent drop in installations.

All except one of the turbines announced in today’s deal will be installed this year, with the last in 2014, Gamesa said. The order follows an 18-megawatt deal with the same client on October 11 that isn’t included in the 117 MW framework agreement.

The deal includes a 10-year operation and maintenance contract, with an option to extend it by five years, according to the statement. TuuliWatti is a venture between Finland’s St1 Oy and S-Group.

Source: Bloomberg

Finland's largest wind farm to be built in Pori

The town of Pori on the Western coast of Finland will soon be home to Finland’s largest wind farm.

Finnish developer, Tulliwatti will construct a 54 MW wind power facility just to the north of the town of Pori. Commercial operation is expected by the end of summer 2015. The project is a joint venture between Finnish utilities St1 and S-Voima who are investing a combined total of 75 million EUR to build the project.

A total of twelve 4.5 MW wind turbines will be built on the site. The wind turbine supplier has not yet been announced.

The Pori region of western Finland is of prime significance for Tuuliwatti. Tuuliwatti began wind power production in the area with a 3 MW facility back in 2010. Tuuliwatti is also constructing wind power plants in other parts of the region.

Source: Yle

Monday, January 7, 2013

Electricity sector planning and supply scenarios for Saskatchewan, Canada

Lisa White, P. Eng., M.Sc. and Ph.D. Candidate at the School of Environment and Sustainability at the University of Saskatchewan in Saskatoon recently published "Strategic environmental assessment in the electricity sector: An application to electricity supply planning, Saskatchewan, Canada" in the Journal of Impact Assessment and Project Appraisal which can be accessed with the following link:

http://www.tandfonline.com/eprint/d6KJPgHdGj5aDeYwwGUD/full

In the article a strategic environmental assessment (SEA) framework for electricity sector planning is developed and applied to evaluate electricity supply scenarios for Saskatchewan, Canada. The overall goal of the SEA application was to identify a preferred future electricity production path, demonstrate the application of a quantitative SEA process that operationalizes sustainability principles through the use of assessment criteria, and examine the methodological implications resulting from the application of a structured SEA framework.

Results of the application identified a renewables-focused electricity supply preference, but with several implications for electricity sector investment and sustainability, including increased infrastructure requirements and increased cost of electricity.

Results also demonstrate a practical approach to the operationalization of sustainability through the application of assessment criteria that are linked to higher level principles. The use of structure in the SEA process provided for replicability, transparency and the ability to quantify issues of uncertainty in Plan, program and policy (PPP) decision-making, while at the same time maintaining flexibility to tailor the SEA framework to the electricity sector context.

Friday, January 4, 2013

Quanta Services/Valard Construction awarded SaskPower contract to build 300 km Island Falls to Key Lake transmission line in Northern Saskatchewan

Quanta Services, Inc. announced by way of a Press Release yesterday that SaskPower has selected Valard Construction, a Quanta Services company, to install transmission infrastructure for the Island Falls to Key Lake Transmission Line Project. Under the terms of the contract, Valard will build approximately 300 kilometers of 230-kilovolt transmission line in northern Saskatchewan. The project scope includes foundation construction, installation of approximately 900 transmission towers, wire stringing and related project management.

"Growing economic development in northern Saskatchewan has created an increased need for power. SaskPower is investing in its electricity system to ensure it meets the power needs for our region, today and in the future," said Robert Watson, president and chief executive officer of SaskPower.

To minimize environmental impact, the route of the new transmission line will parallel an existing SaskPower transmission line. Valard has initiated engineering activities and the project is expected to be complete in the spring of 2015. Once in service, the new transmission line should increase reliability and provide infrastructure to meet the growing demand for power in northern Saskatchewan.

"Valard opened a corporate office in Saskatoon, Saskatchewan last year as part of our ongoing commitment to Saskatchewan," said Adam Budzinski, president of Valard. "We look forward to constructing the Island Falls to Key Lake project and participating in the exciting growth of the province."

Source: Quanta Services, Inc. and SaskPower Press Release

SaskPower and Cenovus sign 10-year CO2 Supply Agreement

SaskPower has signed a 10 year agreement with Cenovus Energy for the purchase of carbon dioxide (CO2) from SaskPower’s $1.24 billion CAD carbon capture and storage (CCS) facility under construction at Boundary Dam Power Station, near Estevan, Saskatchewan.

The Regina Leader Post reports that under the terms of the agreement, Cenovus will purchase the full volume of the CO2 captured at SaskPower’s facility - approximately one million tonnes per year - and use it for the enhanced oil recovery (EOR) project operated by Cenovus near Weyburn, Saskatchewan. SaskPower’s facility is considered the world’s first and largest commercial-scale, coal-fired integrated CCS project.

SaskPower president and CEO Robert Watson said the CCS project at Boundary Dam’s Unit 3 was predicated on being able to sell the captured CO2 to oil companies for EOR projects, which would made the economics of clean coal comparable to that of combined-cycle natural gas power plants.
 
The value of the CO2 Supply Agreement is not being disclosed.

The Regina Leader Post further report that SaskPower anticipates more CO2 sales in future as additional capacity comes on stream from Boundary Dam and SaskPower’s $60 million CAD carbon capture test facility at its Shand Power Station. SaskPower will decide in 2016 or 2017 whether to convert Units 4 and 5 at Boundary Dam to clean coal facilities, which can reduce CO2 emissions by 90 percent.

Cenovus and its partners have been using CO2 from the Dakota Gasification Corp. (DGC) plant in Beulah, North Dakota, USA for 10 years in their Weyburn EOR field.

Cenovus expects to be ready to accept the CO2 when SaskPower’s integrated carbon capture and storage facility goes into commercial operation in April 1, 2014. Cenovus will likely start building the pipeline required for the CO2 immediately. Jessica Wilkinson, a spokesperson for Cenovus, said the company will start talking to landowners and stakeholders in the area prior to construction of the 70 km pipeline from Estevan to Weyburn. “The agreement includes the construction of an additional line that would go from SaskPower’s Boundary Dam facility to our Weyburn (EOR) facility. Cenovus would build and operate that pipeline."

Cenovus currently receives 5,500 tonnes of CO2 per day from DGC, which it injects into the reservoir, some of which is recycled. “To date, we’ve injected just over 18 million tonnes of CO2 in the reservoir,” Wilkinson said. “In 2011, we injected 4.2 million tonnes of CO2." The SaskPower contract would supply about one quarter of that amount annually.

Cenovus currently produces 27,000 barrels of oil per day from the Weyburn EOR project, of which 19,000 barrels a day is incremental production from CO2 injection and 8,000 barrels a day is from conventional production.

Source: Regina Leader Post

Wednesday, November 21, 2012

World Trade Organization sides with the EU and Japan and rules against Ontario’s feed-in-tariff local content requirements

The EU and Japan filed complaints against the province of Ontario with the World Trade Organization (WTO), taking the position that the province’s feed-in-tariff (FIT) program breached international trade law by unfairly pressuring generators of renewable energy to purchase equipment and services from companies located in the province of Ontario. WTO judges rejected the EU and Japanese argument that the FIT program provisions constitute an illegal subsidy.

WTO press officer Joseph Bosch confirmed yesterday that the decision was sent to the concerned parties last Friday but that it must remain confidential until all the WTO members receive it “and that could be within the next month."

Ontario Premier Dalton McGuinty declined to comment on the WTO ruling, but he defended a policy that he says is central to creating jobs and boosting manufacturing in a province hit hard by the recent economic downturn. “We have secured some $27 billion worth of investment,” Mr. McGuinty told reporters on Tuesday. “We have the Koreans in here, the Americans in here, the Chinese in here, I think the French and the Germans as well, and that’s not stopping them.”

EU exports to Canada in wind power and photovoltaic power generation equipment are “significant,” according to the Brussels-based European Commission, ranging from 300 million EUR to 600 million EUR between 2007 and 2009.

Aaron Atcheson, an energy lawyer at Miller Thompson in Toronto, said companies in Ontario’s renewable energy sector will not likely be too concerned until the lengthy appeal process is completed. In the meantime he said, there is more risk to the sector from a possible change in government in the province. In the last Ontario election campaign, the opposition Conservative party said it would dismantle the Green Energy Act. There is even a risk to the sector from the upcoming Liberal leadership campaign, Mr. Atcheson said, because some of the candidates will have a different approach to the green energy file from Mr. McGuinty, the outgoing premier. He also said there are so many problems and delays with Ontario’s current green energy program that those practical issues are more pressing for companies than the WTO ruling.

This matter stokes a broader debate over plans by countries including Canada, the United States and China to reserve public works as well as energy and environmental projects worth billions of dollars for local companies. The United States, China, India, and Europe are immersed in a number of increasingly contentious trade disputes over subsidies for wind energy and photovoltaic energy that are likewise alleged to skew the renewable energy playing field. China announced on November 5, 2012 that it was initiating WTO dispute proceedings to challenge what it claims are discriminatory measures in renewable energy programs adopted by certain EU member states such as Italy and Greece. Germany’s law on renewable energy also limits FIT payments for energy originating from installations located in Germany

Source: Globe and Mail, Bloomberg, International Business Times

Friday, October 19, 2012

Saudi Arabia reveals plans to be power country entirely by renewable energy

Saudi Arabia, the world's biggest oil producer, has plans to become 100% powered by renewable and low-carbon forms of energy, according to an influential member of the royal family.

Saudi Arabia's energy use is almost entirely from fossil fuels at present, with about two-thirds coming from oil and the remainder from gas. The state produces close to 12m barrels of oil a day, representing more than 12% of world crude production, and has about one-fifth of the world's oil reserves, according to the US government's Energy Information Administration. Energy use per person within the kingdom is also high by world standards, because energy prices are kept so low.

As Prince Turki noted, however, the kingdom has vast potential for using solar power. "The cost of solar energy is now 15% of what it was 20 years ago," he noted. Saudi Arabia has also signed memoranda of understanding – though no final deal as yet – with Argentina over nuclear energy.
But despite his commitment to advancing renewable energy in the Middle East, Prince Turki – who served as director of Saudi Arabia's intelligence services for more than 20 years and has also been an ambassador to the UK and the US – was also clear that the rest of the world was likely to continue to rely on fossil fuels for many years to come. "No country can ban itself from any one form of energy," he said.

One of the other potentially important technologies for Saudi Arabia is carbon capture and storage, as depleted oil fields could be used as storage for compressed carbon dioxide, but it has so far made little progress. The prince said the development of carbon capture and storage (CCS) technology should be seen as an international effort rather than the responsibility of single countries.

Nebjsa Nakicenovic, deputy chief of the International Institute for Applied Systems Analysis, said CCS was likely to be a vital technology around the world. Though he acknowledged there could be problems, as the technology is still unproven, he warned: "Do not discount CCS."

On renewables, Nakicenovic said the world should aim to generate 30% of energy from sustainable renewable sources by 2030. That would represent more than a doubling of current renewable energy usage, because although on paper about 15% of energy now comes from renewable sources, this includes a large amount of biomass – mostly wood, dung and other waste – burned in developing countries. Much of this is unsustainable, and requires a significant use of resources in foraging for firewood. "So [the target] is very ambitious, but doable," he said.

Source: The Guardian

Thursday, October 18, 2012

SaskPower CEO says solar not a feasible option yet, but wind could be an option

The CEO of SaskPower says despite comments by Robert F. Kennedy Jr., the technology just isn't there yet to make solar power a part of their fleet.

Kennedy told a Federation of Saskatchewan Indian Nations conference that Saskatchewan should be focusing more on wind and solar power and less on coal power.

Robert Watson says SaskPower is investigating solar technology, but says there are technical problems. He says Saskatchewan is too far north on the curvature of the earth for solar technology to be effective. He also says in the winter time, it's too dark for too long for solar energy to be useful.

Watson says wind power will become a major player in their fleet down the road. "By the time we finish adding our 177 megawatt wind farm down near Swift Current, we will have about 8 1/2 per cent of our spinning reserve wind, which is almost higher than anybody in Canada."

SaskPower does plan on reducing coal from their fleet. Watson says over the next 10 to 15 years, coal will eventually account for 35 per cent of SaskPower's output. Kennedy suggested Saskatchewan relies too much on coal-burning power plants and needs to move toward cleaner energy. "The issue is the illusion that you have cheap coal here," he said. "Coal is heavily subsidized and it's imposing far greater costs on the people of Saskatchewan. If you took the whole community costs, it would be much cheaper to power this province on wind and solar."

Kennedy, nephew of former U.S. president John F. Kennedy, is currently serving as a senior attorney for the Natural Resources Defense Council in America.

Source: Canadian Press

Wednesday, October 10, 2012

First Nations wind project moves forward

The Assembly of Nova Scotia Mi'kmaq Chiefs, via Kwilmu'kw Maw-klusuaqn Negotiations Office, received approval today, September 18, 2012, for a wind project under the Community Feed-in Tariff (COMFIT) Program. Benefits will be shared within the local community and Mi'kmaq communities throughout Nova Scotia.

"This project approval means that the KMK and Wind4All can generate renewable electricity that will stay right here in the Amherst area,” Said Brian Skabar, MLA for Cumberland North. “Clean, green electricity is already successfully powering homes and businesses in the Amherst area, and this project will increase those benefits for the community."

The 6.0 MW project will be developed by the Kwilmu'kw Maw-klusuaqn (KMK) Mi'kmaq in partnership with Wind4all Communities.

"This COMFIT approval from the Department of Energy not only speaks to the quality of our Amherst Project but, more importantly, it speaks to the value and significance of our partnership with the KMK and Mi'kmaq," said Austen Hughes, general manager, Wind4All Communities.

"Through the Amherst project, the Mi'kmaq will become long-term and knowledgeable partners in the renewable energy sector," said Chief Gerard Julian, co-chair of the Assembly of Nova Scotia Mi'kmaq Chiefs. "As project owners, we will be expanding our ability to continue to preserve Nova Scotian resources and protect the environment for generations to come."

The Province has supported the Mi'kmaq renewal energy project development by providing $200,000 to create a Mi'kmaq Renewable Energy Strategy and $2 million for a Mi'kmaq Major Resource and Energy Fund. Nova Scotia Mi'kmaq and the province will also hold a renewable energy seminar November 21, 2012. For more information on the seminar contact the Office of Aboriginal Affairs at 424-4174.

The 2010 Renewable Electricity Plan introduced the COMFIT concept to help provide a secure supply of clean energy at stable prices, build community support for renewable energy projects and create jobs.

"COMFIT offers Nova Scotia an opportunity to become a leader in renewable energy," said Energy Minister Charlie Parker. "In addition, renewable energy projects such as this will help the province move away from dirty fossil fuels and towards our legislated goal of 40 per cent renewable energy by 2020."

Eligible groups receive an established price per kilowatt hour for projects producing electricity from certain renewable resources. Projects can include wind, biomass, in-stream tidal and run-of-the-river hydroelectric developments. Eligible groups include municipalities, First Nations, co-operatives, universities and not-for-profit groups.

More than 25 community-based groups have submitted over 100 locally based renewable energy development proposals for this unique, made-in-Nova Scotia initiative. The province expects 100 megawatts to be produced through COMFIT.

Source: Government of Nova Scotia Press Release

Wednesday, September 26, 2012

Miller Thomson LLP, Penningtons Solicitors LLP and Polsinelli Shughart PC work together on a series of international deals for BRITA GmbH, one of the world’s leading companies in the drinking water optimisation sector

The Multilaw firms were all acting for BRITA in the purchase of an equal stake in Vivreau’s North American sister companies, Vivreau USA, LP and Vivreau USA GP, LLC in the USA and Vivreau Canada, Inc in Canada.

The BRITA Group, which achieved total sales of 320.7 million EUR in the 2011 fiscal year, is based in Taunusstein near Wiesbaden in Germany. It is represented by 15 national and international subsidiaries, and distribution and industrial partners in over 60 countries on all five continents, with production facilities in Germany, Great Britain, Switzerland and India. Since inventing the water filter jug over 40 years ago, it has developed into one of the lead players in the global water filter market.

Wednesday, September 19, 2012

Soros Fund Invests in Mozambique Ethanol Project

Billionaire investor and philanthropist George Soros's nonprofit group has invested $6 million USD in an ethanol project in Mozambique that will offer families in the Southern African country an alternative to charcoal.

The Soros Economic Development Fund released information today that its investment will give it a 19% stake in the $20 million USD project, started by food-and-energy company CleanStar Mozambique. Executives say the investment is in line with the fund's aim of backing businesses that provide a return on capital and spur broader economic development.

CleanStar launched its Mozambique project a year ago to introduce a new cooking model for households in the country. Like much of Africa, Mozambican households tend to cook with charcoal, which produces smoke that when inhaled carries health risks. The company, based out of New York and Mozambican capital Maputo, has designed a low-cost stove that runs on cleaner ethanol, produced from cassava grown by farmers that the company has signed up. Since its launch, CleanStar has sold 3,000 stoves and plans to sell thousands more from November.

The project has also received a $3 million USD investment from the Denmark-backed Industrialization Fund for Developing Countries, while Danish industrial enzymes company Novozymes A/S has provided $1 million USD and a number of loans. Bank of America Merrill Lynch is also assisting with the selling of carbon credits.

With the new funding, the company plans to ramp up its production of both cassava and stoves and have its model in 20% of Maputo's households by 2015, said Novozymes executive vice president Thomas Nagy.

The investors want to roll the project out in another 45 cities across Africa, in what they say is a unique business model. The goal is to sell 100,000 stoves in the next two to three years in Mozambique, according to the Soros fund's Africa director, Cedric de Beer. "If that can happen, then the opportunity to sell in large cities across the continent is dramatic," Mr. de Beer said.

The fund also has investments in Liberia, Sierra Leone, Kenya, Zimbabwe and South Africa. Profits derived from its investments are redeployed to new projects. Stewart Paperin, president of the fund, said most of its investments in Africa are still in the early stages.

Source: The Wall Street Journal

Tuesday, September 18, 2012

Chinese-owned corporation files law suit against US government for barring wind farm transaction (Ralls Corp. v. Committee on Foreign Investment in the U.S., 1:12-cv-01513, U.S. District Court, District of Columbia)

A US company owned by executives of China-based Sany Group Co. accused a US treasury-led national security panel in Washington in a lawsuit of barring it from windfarm projects without explanation or proper legal process.

Ralls Corp., a holding company that controls wind farm assets, alleged the multi-agency Committee on Foreign Investment in the US, known as CFIUS, exceeded its authority when it ordered Ralls Corp. to cease operations and keep out of windfarm development sites it purchased, according to a lawsuit filed September 12,2 012 in federal court in Washington.

CFIUS is an interagency committee headed by Treasury Secretary Timothy Geithner that reviews the national security implications of transactions that could lead to a non-U.S. citizen controlling a U.S. business. The heads of the departments of Justice, Homeland Security, Commerce, Defense, State, and Energy, among others, sit on the committee. The panel’s recommendations can be enforced only by the president under the law.

“Ralls has been cooperating and will continue to cooperate with CFIUS, although Ralls felt strongly it had been treated unfairly and selectively,” Tim Tingkang Xia, a lawyer for Ralls, said in an e-mail. Natalie Wyeth Earnest, a spokeswoman with the U.S. Treasury Department, declined to comment on the suit, saying information filed with CFIUS by law may not be publicly disclosed.

Security Risks

CFIUS issued an order on July 25, 2012 citing “national security risks” raised by the sale of the windfarm assets to Ralls Corp., according to the filing.

An amended order on August 2, 2012 added more prohibitions, including the sale or transfer of the assets to any third party for the “use or installation at the properties of any items made or otherwise produced by the Sany Group.”

Closely held Sany Group is the owner of China’s biggest machinery maker. Dawei Duan, Sany’s chief financial officer and Jialiang Wu, a vice president of the group and general manager of Sany Electric Co., a group unit, are the owners of Ralls Corp., according to the complaint.

Ralls Corp. is seeking to develop wind energy projects in the US, where Sany Electric’s wind turbine generators can be used, according to the filing.

Ralls Corp. is seeking a temporary restraining order and preliminary injunction that would permit the company to resume construction of the wind farms by September 20, 2012. If the wind farms are not in service by December 31, 2012 then the company won't be able to obtain $25 million USD in federal investment tax incentives, according to a court filing yesterday.

Ralls Corp. said that shortly after it acquired land for a wind- farm in Oregon earlier this year, the U.S. Navy voiced concerns about the location of one of the projects. The Navy said it wanted to “reduce air-space conflicts” between the wind turbines and “low-level military aircraft training,” and asked the company to move the planned wind farm. Ralls complied, according to the complaint.

Ralls said it submitted a voluntary notice to CFIUS disclosing the acquisition on June 28, 2012. The next month, the company was told the deal posed national security risks and it must shut operations, according to the lawsuit. CFIUS offered no “evidence or explanation for its determination” that there were national security concerns and didn’t say why the transaction was even subject to review by the committee, Ralls Corp. alleged.

Development Rights

“Draconian obligations” were imposed in connection with Ralls’s purchase of “four small Oregon companies whose assets consisted solely of wind-farm development rights,” according to the complaint.

The company accused CFIUS of violating the Administrative Procedure Act by making an arbitrary and capricious decision and asked the court to find the panel lacked authority to block the deal. Companies, which typically file information with CFIUS voluntarily to address any early issues, submitted 313 notices for review with the committee from 2008 to 2010, according to the panel’s most recent annual report to Congress.

Withdrawn Applications

In 42 cases, companies withdrew applications during or after CFIUS review, according to the report. None went to the president.

Acquisitions by other Chinese companies have been blocked by CFIUS. Chinese telephone-equipment maker Huawei Technologies Co. and Bain Capital Partners LLC dropped a bid to buy computer- equipment maker 3Com Corp. in 2008 after U.S. officials opposed the transaction. Last year, Huawei unwound the purchase of patents from a computer-services company, 3Leaf Systems Inc., after U.S. objections.

Executives from Huawei and another telephone-equipment maker, ZTE Corp. (000063), were questioned by lawmakers in Washington yesterday about their efforts to expand in the U.S.

The case is Ralls Corp. v. Committee on Foreign Investment in the U.S., 1:12-cv-01513, U.S. District Court, District of Columbia (Washington).

Source: Bloomberg

Monday, September 17, 2012

Saskatchewan coal-fired power plants fuel pollution

Interesting article by Peter Prebble in The Leader-Post today:

When federal Environment Minister Peter Kent came to Saskatchewan earlier this month to announce Canada's new greenhouse gas emission regulations for coal-fired power plants, the results were disappointing for anyone concerned about the well-being of our environment.

The new regulations are a significant weakening of what was originally presented to the public in draft form 13 months ago. Over the next 18 years, they will result in greenhouse gas pollution at Canada's coal-fired generating stations being cut by less than half the amount originally proposed by Ottawa.

That announcement might have been satisfactory for SaskPower and the operators of Alberta's coal-fired power plants, but it is not in the larger public interest. Greenhouse gas pollutants from coal-fired power plants are the single most important reason why climate change on our planet is accelerating.

At a time when we have record sea-ice melt in the Arctic, devastating drought in more than 60 per cent of U.S. crop lands and record extreme weather events around the globe, it should be clear to policy makers that the heat-trapping greenhouse gas pollutants from burning coal need to be strictly regulated.

Unfortunately, it appears Ottawa's new regulations are heavily focused on accommodating the desire of governments in Saskatchewan and Alberta to keep burning coal. Meanwhile, in the rest of Canada, coal-fired power plants are steadily being shut down.

Two interesting examples are Ontario and Nova Scotia. In Ontario, the government has closed six of its 15 coal-fired power units over the past two years to curb pollution. It has done this by increasing electricity generation from natural gas, tripling wind power since 2008, building several solar power plants, and introducing conservation measures aimed at cutting electricity use during peak periods of the day.

Nova Scotia historically has been even more coal dependent than Saskatchewan. However, it has now cut its use of coal from 80 per cent of electricity production in 2006 to 57 per cent today. More large reductions are planned. To accomplish this, Nova Scotia is requiring that 40 per cent of its electricity come from renewable energy sources by 2020, up from 17 per cent in 2011. Its government has put in place generous financial incentives to encourage small-scale, community-owned renewable energy production. It has also established Efficiency Nova Scotia to promote electricity conservation.

Ontario and Nova Scotia's work means they are already doing much better than the new federal regulations on coal-fired power plants will require.

In contrast, for our population size, Saskatchewan is dedicating fewer resources to electricity efficiency and renewable energy development. Saskatchewan's greenhouse gas pollution from electricity production is unchanged from 2006. Coal accounts for 58 per cent of the electricity we consume, while wind accounts for only three per cent.

To date, the Saskatchewan plan is to keep using coal and to rely heavily on carbon capture and storage (CCS) as the way to reduce greenhouse gas emissions. That approach might work, but there is uncertainty, as CCS technology at a commercial scale is in its infancy. Moreover, at $1.2 billion for the first unit, CCS installation is very expensive, thus slowing down the pace of pollution reduction.

Saskatchewan will no doubt be able to meet Ottawa's weak greenhouse gas emission regulations, but our province would be wise to aim higher. A more proven course of action would be to invest heavily in renewable energy and electricity conservation, as a complement to our CCS initiative.

With a greenhouse gas pollution footprint more than three times the Canadian average (per million people), Saskatchewan can no longer delay the task of reducing our dependence on coal.
 
Peter Prebble is director of environmental policy for the Saskatchewan Environmental Society. He has authored and co-authored publications on climate change and renewable energy potential in Saskatchewan.

Source: The Regina Leader-Post, september 17, 2012 edition

Friday, September 14, 2012

Jilin New Energy of China to Invest 130 million EUR in Estonia

Jilin New Energy Investment Co. Ltd. plans to invest 130 million euros ($168 million USD) in renewable energy projects in Estonia, the biggest Chinese investment in the Baltic country to date.

Investments will be made mainly in the production of wooden pellets and wind energy equipment, Tallinn-based EAS said in an e-mailed statement today, citing an agreement signed between the parties on September 7, 2012. Financing for the projects will come from China Development Bank, it added.

Jilin New Energy will also set up its European headquarters in Estonia, citing its favorable geographic location, strong renewable energy industry and political stability, EAS said.

Source: Bloomberg

Wednesday, September 12, 2012

3000 MW of new power generation to come online in Ontario in the next 18 months - 4800 MW of wind and solar PV by February 2014

Ontario's power grid operator issued a statement today that generators will add more than 3000 MW of capacity to the system over the next 18 months, including about 1500 MW of nuclear and 1500 MW of renewable generation.

The Independent Electricity System Operator (IESO) said in a statement that total wind and solar PV generation connected to the grid will reach about 4800 MW by February 2014.

Bruce Power is restoring two 750 MW reactors at the giant 6300 MW Bruce nuclear power station. At least one (and possibly both) of those units was on track to enter service in 2012.

Bruce Power is a partnership owned by Alberta-based energy company TransCanada Corp, Saskatchewan-based uranium miner Cameco Corp, Ontario Municipal Employees Retirement System (OMERS), the Power Workers' Union and the Society of Energy Professionals.

The IESO said the new generation resources and transmission projects have been brought into service to ensure Ontario can meet future supply needs and to support the government's planned removal of the province's remaining 3300 MW of coal-fired capacity by the end of 2014.

The IESO said once the refurbished Bruce nuclear units and other new generation and transmission projects enter service, Ontario will be in a good position to continue eliminating coal-fired generation from the system.

Sources: IESO, Reuters

Tuesday, September 11, 2012

Valard secures first greenfield wind farm construction project of Gesner Wind Farm for Saturn Power

Valard has secured its first greenfield wind farm project, having been awarded the complete construction of the Gesner Wind Farm by project owner Saturn Power. Located near Muirkirk, Ontario, construction began in June 2012. Approximately 15 employees are currently on site building foundations for each of the five 100-metre turbines comprising this project.

“We are thrilled to be constructing the Gesner Wind Farm in Ontario,” says Vicki Marks, Valard Vice President of Ontario and Eastern Canada operations. “Valard believes in the viability and longevity of the wind sector, and we’re looking to build our capacity and capabilities in it.”

Within the next month, Valard will begin installing the turbines in parallel with constructing the 34.5 kV collector system, accepting delivery of the e-house, constructing the substation and completing the interconnection to the provincial distribution grid.

The Gesner Wind Farm is expected to be in service by December 2012. When complete, it will produce 10 megawatts of power. Each turbine will have a two-megawatt output capable of providing power for up to 3,500 homes.

Valard offers a full menu of services for wind projects including design, equipment specification, procurement, foundations and civil works, installations, substations, transmission and distribution interconnects, commissioning and operations and maintenance. Clients can choose a single service or a full engineering, procurement and construction (EPC) solution. The company also offers competitive financing to qualifying projects.

Valard is a construction company based in Edmonton, Alberta.

Source: Valard Press Release

Monday, September 10, 2012

Canada releases final regulations to curtail greenhouse gas emissions from the coal-fired electricity sector - Saskatchewan seeks separate arrangement with Federal government

"If we want to make headway at reducing emissions we have to take a hard look at coal-fired plants and that's exactly what we have been doing, what we are doing, and what we will do," the Canadian Environment Minister Peter Kent told a press conference in Saskatoon, Saskatchewan recently.

The federal government is proposing new coal plants only be allowed if they can emit less than 375 tonnes of carbon dioxide per gigawatt hour of electricity generated. In the final version, that standard is 420 tonnes. The draft regulations proposed that old coal-fired units would have to meet the targets at 45 years old, which has been moved to 50.
 
Guy Bruce, vice-president of planning, environment and regulatory affairs for SaskPower, the crown utility in the province of Saskatchewan said the announced regulations are a "good balance." The move to 50 years allows SaskPower time to determine if carbon capture is feasible, Bruce said.
 
The Saskatchewan government is seeking a separate deal with Ottawa to handle coal in its own way, while meeting the same end goals set by the federal government. The deal is expected to account for the Boundary Dam plant, where Unit 3 is undergoing a $1.24 billion CAD conversion for carbon capture and storage by 2014. It's expected to be the first commercial scale power plant with a fully integrated carbon capture system, which should help it meet tougher emission rules.

The federal government is taking a sector-by-sector approach to reducing greenhouse gases. Instead of imposing a tax on carbon emissions, or developing a cap-and-trade market that would reward clean energy over high emissions, Ottawa is gradually imposing rules and restrictions on emissions in each polluting sector of the economy. So far, it has rolled out limits for the auto sector and renewable fuels. Coal has been the trickiest sector so far.

But the remaining sectors, especially oil and gas, are expected to be even more thorny, with Alberta's oilpatch already resisting federal attempts to regulate. Draft regulations pertaining to oil and gas are expected next year, possibly in the spring.

Canada has committed to reducing its emissions by 607 megatonnes by 2020, and Kent frequently touts his sector-by-sector approach as the main way for Canada to meet that goal.

Sources: The Star Phoenix, Canadian Press

Wednesday, September 5, 2012

Shell to proceed with carbon capture and storage (CCS) project in Alberta oilsands: likely to rely on Saskatchewan experience with CCS at the SaskPower Boundary Dam Project

Shell announced this morning that it will go ahead with the world's first carbon capture and storage (CCS) project for an oil sands operation in Canada. The Quest project will be built on behalf of the Athabasca Oil Sands Project joint venture owners (Shell, Chevron and Marathon Oil) and with support from the Governments of Canada and Alberta.

The Athabasca Oil Sands project produces bitumen, which is piped to Shell's Scotford Upgrader near Edmonton, Alberta. Quest will capture and store deep underground more than one million tonnes a year of CO2 produced in bitumen processing. Quest will reduce direct emissions from the Scotford Upgrader by up to 35%.

Both the Canadian federal and Albertan provincial governments have identified CCS as an important technology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million CAD in Quest from a $2 billion CAD fund to support CCS, while the Government of Canada will invest $120 million CAD through its Clean Energy Fund.

"Today's announcement reaffirms Alberta's position as a global leader in carbon capture and storage," said Energy Minister Ken Hughes. "Technologies like CCS will play an instrumental role in helping to lower greenhouse gas intensity from the oil sands and demonstrate to the world Alberta's commitment to responsible energy development."

There was some question as to Alberta's commitment to CCS technology, when other CCS projects in Alberta were delayed earlier this year.

Construction is currently underway on the SaskPower Boundary Dam Integrated Carbon Capture and Storage Demonstration Project in Saskatchewan. The Boundary Dam Project will transform Unit 3 at Boundary Dam Power Station into a reliable, long-term producer of 100 MW of clean base-load electricity, while enhancing oil production in Saskatchewan and reducing greenhouse gas emissions by capturing 1 million tonnes of CO2 per year. SaskPower has been developing CCS technology and projects for several decades. The Government of Saskatchewan approved the Boundary Dam project in April, 2011.

SNC Lavalin is undertaking engineering, procurement and construction at the Boundary Dam project and Hitachi is providing the turbine. Cansolv, a wholly owned subsidiary of Shell, will supply the carbon capture process. It is expected that Shell will rely on their experience in Saskatchewan to build the Quest project in Alberta.

The $1.24 billion CAD SaskPower Boundary Dam project in Saskatchewan is expected to reach commercial operation in late 2013. The $865 million CAD Quest project in Alberta is expected to reach commercial operation in late 2015.  

Sources: Shell Canada Press Release, SaskPower, Government of Saskatchewan, Government of Alberta

Tuesday, September 4, 2012

RFP Opportunity - Engineering, Procurement and Construction Management (EPCM) Services for Queen Elizabeth Power Station - Saskatoon, Saskatchewan, Canada

The RFP is intended to obtain the resources of an established, multi-discipline engineering, project management, construction management, and commissioning management firm with a proven record of success in carrying out the functions of a Balance of Plant (BOP) Engineering, Procurement and Construction Management (EPCM) contract (the "Engineer").

Associated with this project, SaskPower is responsible for the procurement and delivery to the Site of the following equipment:

  • Three Hitachi H25 Gas Turbines (GTG) complete with Generators, and Static Excitation;
  • Two 138-13.8 KV step-up transformers (GSUT);
  • Six Once through Steam Generators (OTSG);
  • One 95MW to 105MW induction condensing steam turbine (STG) complete with generator, static exciter system, control system, gland seal system, oil conditioning system and instrumentation.
Collectively, the above equipment is named “SaskPower Equipment”.

The Engineer will be required to review and provide comments to drawings, manuals and project related documents received from the above SaskPower Equipment suppliers to coordinate interface design. The Engineer will be responsible for the design of all interfaces required to integrate the Balance of Plant (BOP) Equipment with the SaskPower Equipment. The Engineer will be responsible for the performance of all designs and equipment selected to meet the interface conditions provided by the SaskPower Equipment suppliers.

The Engineer will be responsible for the sizing, specification preparation, tendering, bid evaluation, recommendation for purchase, quality control, delivery and warranty of the BOP Equipment (“Engineer Supplied Equipment”). This service will include the provision of OEM technical advisors (TA) to interface with SaskPower’s Works Contractors during installation and the Engineer’s commissioning team during commissioning.

The RFP closes September 28, 2012.

Growth in Saskatchewan means removal of Federal environmental assessment requirement impacts projects in the province most significantly

The federal Canadian government has removed the requirement for environmental assessments (EAs) on nearly 3000 projects across Canada. The EA requirement has been removed because the federal government changed the rules on what projects require an environmental assessment when the new Canadian Environmental Assessment Act came into effect on July 6, 2012. This in itself is not particularly remarkable and was widely anticipated. What did surprise me is the large number of projects in Saskatchewan impacted by this change - the most in Canada by a fair margin.

Number of Canadian Environmental Assessment Agency EA requirements removed on July 6, 2012 by province:

Saskatchewan: 764
Ontario: 561
British Columbia: 492
Alberta: 348
Quebec: 295
Newfoundland and Labrador: 152
Nova Scotia: 151
New Brunswick: 141
Manitoba: 87
PEI: 24
Northwest Territories: 6
Nunavut: 1
Yukon: 1

EA requirements for more projects were removed in Saskatchewan than in 5 other provinces and 3 territories combined. There were 203 more EA requirements removed in Saskatchewan than Ontario, the next largest province impacted by the changes.

The cancelled Federal assessments include a review of a proposed run-of-river hydro facility at Fond du Lac in Northern Saskatchewan, the Saskatchewan Research Council's plans to rehabilitate the former Lorado Uranium Mill in the northern part of the province and Prairie Green Renewable Energy's proposal to build an ethanol manufacturing facility near Hudson Bay.

The provincial government and other stakeholders will assume responsibility for environmental assessments, thereby reducing duplication of certain procedures.

Friday, August 31, 2012

RFP Opportunity - Consulting Services for Wastewater Treatment Plant Biogas Cogeneration Project - City of Saskatoon

The City of Saskatoon is seeking Letters of Interest (LOI) for engineering consulting services for the design, installation and commissioning of a cogeneration system using biogas at the City of Saskatoon wastewater treatment plant. The project will begin in January 2013 and run for approximately two years. Work consists of: detailed design of the cogeneration system, equipment selection, financial analysis, tender drawings and document production, tender selection, construction administration, and commissioning services. The consultant will be responsible for guiding the project from start to finish in conjunction with City of Saskatoon staff.

Interested Proponents may obtain a condensed Terms of Reference for the project from the contact information listed below after 3:00 p.m. Wednesday, Sept. 5, 2012. The LOI must be received by 2:00 p.m. CST, Wednesday, Sept. 19, 2012 in order to be considered. Word or Acrobat documents that are emailed will be accepted, but the responsibility for ensuring the submission is received rests with the proponent. The LOI must be not longer than 5 (five) pages. The LOI will be used to decide which three or four companies will be invited into a formal Request for Proposal process. The letter should highlight expertise in the area of cogeneration and qualifications that would indicate suitability for being selected for this project. Kindly submit an email or five copies of the letter with “WWTP Cogeneration” as the subject to: Email: WWTP_Projects@saskatoon.ca Telephone: (306) 975-2534.

The RFP closes September 19, 2012.

Thursday, August 30, 2012

RFP Opportunity - Wind Power Facility Feasibility Study - City of Regina Waste Water Treatment Plant

Sealed Proposals marked “RFP #2050 – Waste Water Treatment Plant Wind Power Facility Feasibility Study” will be received by the Coordinator of Purchasing, 5th Floor, City Hall, 2476 Victoria Avenue, P.O. Box 1790, Regina, Saskatchewan, S4P 3C8, no later than 2:00 p.m. Central Standard Time, September 20, 2012. The City of Regina requires services of a consulting firm to perform a wind power facility feasibility study for the Waste Water Treatment Plant location. The services of a qualified consulting firm to provide comprehensive, expert, engineering and specialist services to achieve the objective to reduce the City’s dependency on utility-supplied electricity and greenhouse gas emissions at the Waste Water Treatment Plant. Interested proponents may obtain a copy of the Request for Proposals from the office of the Coordinator of Purchasing, by calling (306) 777-7333 or emailing purchasingbranch@regina.ca The City invites proposals for these services and reserves the right to reject any or all proposals.

The RFP closes September 20, 2012

Nova Scotia selects three wind power projects totalling 115.8 MW in RFP process: $200 million CAD private sector investment expected

The projects, in Lunenburg and Guysborough counties in the Eastern Canadian coastal province of Nova Scotia include:

- 78 MW South Canoe Wind Project between Chester and Windsor, led by Oxford Frozen Foods;
- 24 MW South Canoe Wind Project in Lunenburg County, led by Minas Basin Pulp and Power; and
- 13.8 MW Sable Wind Project near Canso, led by the Municipality of the District of Guysborough.

According to the province government, the selected projects represented the most cost-effective offers. The average purchase price was in the mid-$70s per megawatt hour, lower than those in the 2007 call for bids in Nova Scotia. Nova Scotia Power is a minority investor in each of the projects.

Collectively, these projects are expected to bring total wind energy close to the 500 megawatt wind threshold by 2015. This is near the technical limit of the amount that can be integrated into the province's electricity grid, according to the 2008 Nova Scotia Wind Integration Study by Hatch Energy. Consequently, the province does not expect to issue more request for proposals for large-scale wind projects in the near future.

The Renewable Electricity Administrator (REA) was appointed by the province to call for bids, evaluate bid submissions and select winning projects based on which projects provide the best value for ratepayers.

The process also completes an objective of the province's renewable electricity plan to determine if the utility or Independent Power Producers could build the lowest-cost renewables for the province. The competition indicates a partnership model produces the best results.

Sources: CANWea, Government of Nova Scotia

Monday, August 27, 2012

Fulcrum Bioenergy receives conditional USDA loan guarantee for Nevada MSW ethanol plant - outlook improves for possible Nipawin, Saskatchewan project

Fulcrum BioEnergy Inc. received a $105 million USD condition loan guarantee from the United States Department of Agriculture (USDA), putting its planned 10 MMgy Sierra BioFuels Plant in Nevada closer to groundbreaking.

“It will be early next year before we break ground, and 18 months after that before we’re ready to commercially produce ethanol,” said Rick Barraza, vice president of administration. The property has been acquired, the necessary permits in place, and Fluor Corp. has completed the engineering plan. Fluor will serve as the engineering, procurement and construction contractor.

The Sierra Biofuels Plant is located approximately 30 km. east of Reno, Nevada; the facility has two feedstock supply agreements in place. Waste Connections Inc. will supply presorted MSW from its waste processing facility in El Dorado County, California, and Fulcrum has a 15-year agreement with Waste Management of Nevada to deliver post-sorted MSW. Fulcrum also has a three-year off-take agreement in place with Tenaska Biofuels, to buy the cellulosic ethanol at market price. “We’re able to do that because of the low cost nature of the process,” Barraza said, “And, getting MSW feedstock at no cost.”

The Fulcrum technology is a two-step thermochemical process. First, 4-inch pieces of organic materials are gasified in a plasma-enhanced gasifier which uses heat, pressure, steam and a little bit of oxygen. “It doesn’t burn, it breaks down into carbon monoxide, hydrogen and carbon dioxide, or what we call syngas,” Barraza told EPM. The gas is cleaned and then run through a licensed catalytic technology jointly developed by Nipawin Biomass Ethanol New Generation Co-operative Ltd. and Saskatchewan Research Council. The demonstration plant incorporates a full-scale reactor tube and process, identical to those to be used in Fulcrum’s large-scale plants.

Fulrum are partners with the Nipawin Economic Development Committee and Saskatchewan Research Council (SRC) to develop a cellulose conversion industry for the production of fuel-grade ethanol from residual agricultural and forestry biomass in the Nipawin region of North-Eastern Saskatchewan.

Source: Ethanol Producer Magazine

Friday, August 24, 2012

Quebec pension plans invest $100 million CAD in leading Canadian independent renewable power producer, Innergex

The Caisse de depot et placement du Quebec (the "Caisse") is investing close to $100 million CAD in a Quebec-based hydroelectric company. The Caisse manages investments for public and private pension and insurance plans in Quebec.

The pension fund manager recently reported that it bought 9.6 million common shares of Innergex Renewable Energy Inc. for $10.27 CAD per share for a total cost of $98.9 million CAD.

The investment comes at a time when Innergex is taking on new hydroelectric acquisitions in Quebec and Ontario. Innergex recently announced a purchase and sale agreement with Hydromega Group of Companies to acquire its 70 per cent interest in the Magpie hydroelectric facility in northeastern Quebec for $30.3 million, plus another $52 million in debt. Innergex expects the Magpie acquisition to close by the end of September, 2012. The Magpie facility produces enough electricity to power almost 11,000 households every year, and sells all of its electricity to Hydro-Quebec as part of a 25-year PPA.

Innergex also signed a letter of intent with Hydromega for the acquisition of its ownership interest in six other hydroelectric projects in Quebec and Ontario, and also announced plans to acquire Wildmare, a wind energy project in British Columbia. Price tags for those deals were not disclosed.

Source: The Canadian Press

Thursday, August 23, 2012

Nordex secures first Supply Contract for 9 turbines on Finnish wind farm

Nordex won a contract to deliver and install nine turbines for a wind farm in southwest Finland, the first deal under an agreement struck with Helsinki-based fund manager Taaleritehdas Oy to finance wind projects in Finland. Construction on the project, with 21.6 MW capacity, will begin in the spring of 2013, Nordex said in a statement.

“This is a further key order for our N117 turbine,” said Lars Krogsgaard, chief sales officer of Hamburg-based Nordex.

Under the June 29, 2012 agreement with Taaleritehdas, as many as 111 turbines will be shipped and installed by Nordex in projects financed by the fund manager across Finland, with total capacity seen at 260 MW. That would be more than the installed wind power capacity of 197 MW in Finland as of the end of 2011, according to the Finnish Wind Power Association.

Finland plans to produce 38 percent of its power from renewable energy by 2020, up from 32 percent now.

Sources: Reuters, Nordex, Finnish Wind Power Association

Friday, August 17, 2012

10 facts about energy in China

  1. China is the world's largest consumer of energy and accounts for a staggering 21% of global energy use. By comparison Canada accounts for 2.7%.
  2. Energy use in China has increased by more than 150% in the past decade.
  3. Per capita energy use in China is far below the US, Canada, South Korea, Russia, Japan and the EU.
  4. China's manufacturing sector accounts for nearly 60% of all consumption.
  5. China generates more than 70% of their energy from coal.
  6. China has doubled its coal production in the past decade.
  7. Coal consumption has increased by 200% in the past decade.
  8. China's renewable capacity is at 133 GW and growing fast - mostly from hydro and wind.
  9. Solar PV is the most expensive electricity source in China.
  10. Natural gas consumption is now outpacing production in China.
 
Source: Goldman Sachs Report on Sustainable Growth in China: Spotlight on China, August 13, 2012

Thursday, August 16, 2012

AESI and Canada Powerhouse agree to deliver biomass energy solutions in Western Canada to service emerging and growing biomass industry in the region

Alternative Energy Solutions International Inc. (AESI) and Canada Powerhouse, (the Technical Sales Division of Exclusive Boilers, Burners & Controls) (EBBC) announced today that they have established and are proceeding with an important agreement for representation throughout Western Canada. This partnership will leverage each company’s strengths and bring the highest level of service and satisfaction to the Canadian biomass markets.

“Exclusive Boilers, Burners & Controls, (EBBC) through their technical sales division, Canada Powerhouse, has begun to market and support AESI, Inc. and Uniconfort, in British Columbia, Alberta, Saskatchewan, North West Territories and the Yukon. Uniconfort and AESI, Inc have over 5,000 installations operating worldwide, said David Daniels, president and CEO of AESI. “We are pleased to have the benefit of Canada Powerhouses’ continued direction. Together, we will create an optimal sales and service model for the very important, emerging and growing biomass industry in Canada.”

According to Dale Mazur, General Manager of EBBC, “AESI and Uniconfort are a game changer for the worlds CO2 and NOx emissions. Coupled or stand alone with our Co-generation capabilities, not only will energy centers realize benefits of reducing fuel consumption as well as emissions; the owners significantly reduce operating costs. Business and the environment wins. EBBC receives a considerable amount of requests for District Heating, Cogeneration, and emission reductions; we looked very hard at other technologies and realized that Uniconfort and AESI had a proven track record focused on very key areas often over looked. We further evaluated their business approach and were extremely pleased to discover that the technologies were not “locked” to other services. This allows EPC’S, engineering firms, and the customer to determine what level of involvement they prefer. No question that the company made the right decision to move forward with AESI and Uniconfort.”

Source: AESI and EBBC Press Release

Tuesday, August 14, 2012

Sprott Power seeking financing for $33 million to acquire Wind Canada Investments

For the third time in the past year, a Canadian company has chosen to raise cash to fund a takeover by way of an offering of extendible convertible unsecured subordinated debentures.

In the deal, the financing of which is expected to close next week, Sprott Power is buying all the shares of Wind Canada Investments for 22.13¢ each, which will then give it ownership of two operating assets, one of which, Glen Dhu, is the largest wind farm in Nova Scotia. (Wind Canada owns 51% of Glen Dhu.) Sprott Power has raised $30 million, which may be boosted by $4.5 million if the underwriters exercise their options.

The deal, in which investors are being offered a yield of 6.75%, represents a move into the big leagues as it will boost Sprott Power’s operating assets by 80%. The company has operations in Nova Scotia and Ontario. Sprott’s current portfolio is about 80 megawatts, which will rise to 144MW, if the acquisition goes through. But the company, according to its website, had some major plans prior to this transaction, with a development portfolio in Nova Scotia, Quebec, Ontario and Saskatchewan. By 2015 it had plans to generate 500 MW of power.

Sprott Power has locked up the support of Wind Canada shareholders who own 74% of the outstanding shares. Spanish-based Inveravante Inversiones Universales S.L. is Wind Canada’s largest shareholder with a 66% fully diluted stake.

Sprott Power’s focus is on the development, ownership and operation of renewable energy projects. It pays a dividend and is managed by Sprott Power Consulting LP, a business unit of Sprott Inc.

Offerings of extendible convertible unsecured debentures are rare in Canada, with companies planning acquisitions preferring to issue subscription receipts that in effect get converted into common shares when the transaction closes.

On this deal, and as with the other two, that option wasn’t available, because Sprott Power is small with a market cap of $68 million. The option isn’t available because of the large discount to current market price that would have to occur to raise a decent slug of common equity.

Convertibles are attractive because there is no dilution — all the company faces is the need to make the semi-annual payments. And dilution is taken care of, because the conversion price on the debentures is set at a healthy premium (in this case 30%.)

Source: Financial Post, FP Street, Barry Critchley

Monday, August 13, 2012

Canadian Solar receives $93 Million CAD loan from China to fund growth

Canadian Solar Inc., the world’s third-largest maker of solar panels, received a $93 million CAD loan from state-owned China Development Bank Corp. as it expands in North America. The five-year facility will be used to part-finance the recent acquisition of a stake in 16 photovoltaic projects in Ontario from developer SkyPower Ltd.

The loan is its first from this bank, company data show. Canadian Solar’s expansion into project development enables it to increase control over sales of its products as panel prices weaken. It also gives the company access to Ontario’s feed-in tariff program, which offers premium rates for electricity generated from renewable sources.

Canadian Solar, which is based in the province of Ontario and has production facilities in China, had about $88 million CAD in long- term debt from Agricultural Bank of China Ltd. (601288), Bank of Communications Co. and Export-Import Bank of China at the end of last year, according to the company’s latest results.

China Development Bank has offered $47.3 billion USD since 2010 to support the country’s wind and solar manufacturers, a credit line that’s only been partially tapped, according to London- based researcher Bloomberg New Energy Finance.

Under Canadian Solar’s April accord with SkyPower, it agreed to pay $187 million CAD for a majority interest in 190 to 200 megawatts of permitted PV projects. Its largest global competitors are Suntech Power Holdings Co. and First Solar Inc.

Sources: Reuters, Bloomberg New Energy Finance, Canadian Solar Inc. Press Release

Friday, August 10, 2012

Saskatchewan has highest per capita greenhouse gas emissions in Canada

Saskatchewan's per capita greenhouse gas emissions have declined slightly in recent years but remain the highest in Canada, a report from the Canadian Federal government indicates.

Per capita emissions in 2010 were estimated at 69.8 tonnes of greenhouse gas per person, more than triple the all-Canada rate, which was 20.3 tonnes per person, according to Canada’s Emissions Trends Report that was released Wednesday by Environment Canada.

The Saskatchewan figure was down 1.8 per cent from 2005, when per capita emissions were 71.1 tonnes per person.

Environment Canada report measures carbon dioxide (CO2), the main greenhouse gas, or its equivalent.

The report notes that provinces like Saskatchewan that depend on fossil fuels for their electricity generation tend to have per capita emissions above the national average.

The per capita drop happened in part because the population has increased over the five year period.

In fact, according to the report, the province's total greenhouse emissions actually increased from 71 megatonnes to 73 megatonnes between 2005 and 2010.

Saskatchewan and Alberta were the only provinces that saw their total emissions increase.

Over the next decade, it's projected total emissions in Saskatchewan will fall, however, from 73 megatonnes to 64 megatonnes.

"The decline in emissions from 2005 to 2020 in Saskatchewan, Ontario, New Brunswick and Nova Scotia are due in large part to government measures related to coal-fired electricity," the report said.

Under the 2009 Copenhagen Accord, Canada is committed to reducing its greenhouse gas emissions to 17 per cent below 2005 levels by 2020.

Source: CBC and Canada's Emissions Trends 2012 - Government of Canada Report

Wednesday, August 8, 2012

SNC-Lavalin wins district cooling project in Mecca, Saudi Arabia

SNC-Lavalin will build a district cooling system in the Saudi city of Mecca, site of the annual hajj, a pilgrimage that attracts Muslims from around the world, under a $92 million CAD contract announced yesterday.

The Montreal-based company, which provides engineering and project management services around the world, said construction is expected to begin this quarter under a contract from a subsidiary of Saudi Tabreed District Cooling Co.

District cooling uses a central plant to chill water that is then distributed to several other buildings that use the water to cool themselves before the water is returned to the central plant.

The first phase of the project, a chilled water production plant for the Jebel Omar Development, is planned for December 2013.

“We are delighted with receiving this contract, particularly because it is the third district cooling plant contract awarded to us in Saudi Arabia since May 2010,” SNC executive vice-president Charles Chebl said.

“This contract reflects our strategy of bringing the full spectrum of our global expertise to the region, and attests to SNC-Lavalin’s world-class leadership in the district cooling sector.”

Maxim Sytchev of Alta Corp Capital said the contract is relatively small, representing 2.7 per cent of its infrastructure and environment backlog and one per cent of its overall backlog.

“But it does show that the company’s clients continue to award contracts to SNC-Lavalin despite the negative news flow overhang,” he wrote in a report.

The ability to win contracts has been a key investor concern since internal problems arose in March.

“We view this contract as an important step in re-establishing investor confidence,” he said, point to it as the first international deal of size in months.
Source: Canadian Press

Finavera receives wind farm construction permit for 47 MW Tumbler Ridge project in North-Eastern British Columbia

Finavera Wind Energy Inc. recently announced it has received a General Area Licence of Occupation for the 47 MW Tumbler Ridge Wind Energy Project located in northeastern British Columbia. The Licence, which was issued by the British Columbia Ministry of Forest, Lands and Natural Resource Operations, provides the approval for construction to commence on the project. The Tumbler Ridge Wind Energy Project recently received an Environmental Assessment Certificate and has a 25 year power purchase agreement with B.C. Hydro.

The $125 million CAD project will be located 8 kilometres west of the town of Tumbler Ridge in the province of British Columbia. Once completed, the project will generate enough power to provide electricity for up to 18,000 homes. The 12 month project construction period is expected to generate 560 person years of direct employment, and the operational phase of the project is expected to create 188 person years of full-time direct employment.

Finavera Wind Energy CEO Jason Bak said, “This is a key milestone for the Tumbler Ridge Wind Energy Project and allows Finavera to progress through the final steps towards construction of this project. Our next steps are to finalize financing for the project, execute a turbine supply agreement, and contract a group to undertake the construction process.”

Source: Finavera Press Release

Monday, July 16, 2012

Agrisoma Biosciences to evaluate biojet fuel derived from Saskatchewan-grown crops

Working in collaboration with Agrisoma Biosciences Inc., the National Research Council of Canada (NRC) is validating biofuels in the world’s first comprehensive flight program using biojet fuel.

The Canadian firm Agrisoma Biosciences has developed the Resonance™ oilseed crop; a non-food feedstock crop derived from Brassica carinata, commonly known as Ethiopian mustard, which has an oil profile optimized for use in the biofuel industry, specifically for biojet fuel. The crop is extremely well suited to production in semi-arid areas such as Saskatchewan and offers good resistance to biotic stressors, such as insects and disease, as well as abiotic stressors, such as heat and drought. Carinata is a vigorous crop with a highly branching growth pattern and large seed size. It also has excellent harvestability, with good lodging and shatter resistance.

Test flights took place in Ottawa, Canada, in May and June 2012, where the biojet fuel was tested in the NRC Falcon 20 twin-engine jet at a 50/50 ratio blend with Jet A1 fuel, and then at a 60/40 ratio blend – a first ever flight with higher than certified fuel blend. A second aircraft, NRC’s T33 jet, flew behind the Falcon 20 to measure the engine emissions during both biofuel and conventional fossil fuel operation of the aircraft engines. Systems onboard the Falcon 20 allowed the team to switch back and forth between the two fuel types throughout the flight series.

Preliminary results are positive and indicate that particulate emissions, including aerosols of black carbon, sulphates and by-products of the combustion of aromatic compounds, are significantly lower from biofuels than from Jet A1 fuel.

The crop for the test flights  was grown in Saskatchewan, Canada, in the summer of 2011 and commercial production of Resonance™ is now underway in Saskatchewan and across Western Canada, providing a secure and scalable source of feedstock for biojet manufacturing.

Source: National Research Council of Canada Press Release, Agrisoma website

Friday, July 13, 2012

Mining giant Vale SA embracing renewable energy to power mines: investment in 2 wind farms and biodiesel production move forward

Vale SA, the world’s biggest iron- ore producer, is turning to palm-tree oil and wind turbines to insulate earnings from surging energy costs.

The company plans to produce 420,000 tons of fuel from palm oil annually by 2019 and will build two wind farms with Australia’s Pacific Hydro Pty by 2014, Giane Zimmer, Vale’s director of sustainable development, said in a telephone interview with Bloomberg from the company’s headquarters in Rio de Janeiro.

Rising power prices have pared margins for Vale, whose fuel and energy expenses accounted for 13 percent of costs of goods sold in 2011, or about $3.15 billion USD. Electricity prices for industrial users in Brazil have risen 89 percent since 2003, the nation’s power regulator estimates. That compares with a 35 percent gain in electricity prices in the U.S.

“Our big challenge is to align sustainability with lower costs,” Zimmer said. “We have an obligation to our shareholders to give results.”

Vale fell 1 percent, to 39.48 reais at 11:16 a.m. in Sao Paulo. The shares had gained 5.4 percent this year before today, compared with 8.5 percent and 2.9 percent drops for BHP Billiton Ltd. and Rio Tinto Group, the world’s biggest and third-biggest miners by market value, respectively.

Power Investments

Vale has invested more than $1.3 billion USD in power generation in Brazil since 1995, about 2 percent of its revenue last year. While 49 percent of its power comes from hydroelectric plants, it also owns natural-gas reservoirs. The palm-oil and wind-farm programs represent an effort to diversify energy supplies.

Producing fuel and power on site is especially important for mining companies, which need to shift large quantities of material in remote areas, said Laurence Balter, a money manager at Oracle Investment, which is based in Fox Island, Washington, and oversees $100 million USD.

The company will produce palm-oil fuel known as biodiesel in the Amazon state of Para where it has mining operations and use the fuel to power its trains and heavy vehicles. The wind farms will be in Rio Grande do Norte state.

“It’s nice to see a company like Vale embarking on these forward-thinking projects,” Balter said in a telephone interview on July 5. “They’re going to come out smelling like a rose.”

Vale is seeking to replace a fifth of its Brazilian diesel with biodiesel by 2015, the company said in its 2011 sustainability report. All diesel sold at the pump in Brazil must contain 5 percent biodiesel.

Curtailing Production

“If we are unable to secure reliable access to electricity at acceptable prices, we may be forced to curtail production or may experience higher production costs,” Vale said April 17 in a filing with the U.S. Securities and Exchange Commission.

Vale is planting palm crops on cleared land in an area in the Amazon the size of Barcelona and will turn the fruit into fuel, Zimmer said. Last year, the company bought a controlling stake in Biopalma, which built an oil extraction plant in the city of Moju and planted 50,000 hectares of palm, the company said in a statement. A biodiesel refinery will come online in 2015.

Biodiesel made from palm oil is more expensive than diesel in countries that blend the two fuels and the same may apply to Brazil, Roberto Rodriguez Labastida, an analyst at Bloomberg New Energy Finance’s London office, said by telephone.

Biodiesel produced in Brazil’s north sold for 2.28 reais. or $1.12 USD, a liter before transport costs in a May auction for supply contracts, the nation’s oil regulator said. Brazilian diesel sold for an average 2.05 reais a liter at the pump in June.

Price Comparison

“A comparison of the prices of diesel and palm oil biodiesel can’t be done without considering other factors” like social and environmental benefits, Joao Coral, global energy director for Vale, said in an e-mail.

Diesel sells for 1.40 euros ($1.72 USD) in Germany and 143.90 Japanese yen ($1.81 USD) a liter in Japan, according to data compiled by Bloomberg. About 77 percent of biodiesel sold in auctions is made from soybean oil, according to fuel regulator Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis.

Vale is interested in wind energy because it’s low-cost, Marcos Severine, an analyst at Sao Paulo-based Itau Unibanco Holding SA, said in a telephone interview. Wind farms were the cheapest form of energy in an August government-organized auction for contracts to supply energy that included natural gas-fired thermoelectric plants and a large hydroelectric dam project.

“There’s a definite economic advantage to using wind energy,” especially because those projects get 50 percent exemptions on fees to use transmission and distribution lines, Severine said.
Vale has a target to cut its greenhouse gas emissions by 1.7 million metric tons of carbon dioxide equivalent by 2020, or 5 percent of the total projected that year, the company said June 28 in a statement.

“We’re going to have rising energy demand,” Zimmer said. “We need further projects to fulfill this need.”

Source: Bloomberg

Thursday, July 5, 2012

1350 MW wind farm spanning 111,200 acres in Argentina to be financed with $3 billion loan from China Development Bank

An Argentinean renewable-energy developer is planning Latin America's biggest wind-power project, saying it expects to obtain $3 billion in financing from China Development Bank Corp. Generadora Eolica Argentina del Sur said it will receive the funds to install 1350 megawatts of Chinese turbines across 45,000 hectares (111,200 acres) in the Chubut province in the nation's south, Eduardo Restuccia, executive vice president of the Buenos Aires-based company known as Geassa, said in a telephone interview Thursday.

Latin American developers are buying Chinese wind turbines that are packaged with financing that's less expensive and easier to arrange than loans from local banks, which aren't familiar with the economics of wind farms. Such deal are especially attractive in Argentina, which has been blocked from international bond markets since it defaulted on $95 billion of debt during a financial crisis in 2001 and 2002.

"Argentina can't get finance from Europe or the U.S.," Restuccia said. "That gives the Chinese a unique exclusivity tool" for financing energy projects in the region.

The 12-year loan will have an annual interest rate of 6.25 percent above Libor, the London Interbank Offer Rate, and a two- year grace period, he said. Other than some government credit programs for housing, long-term debt loans are rarely offered in Argentina and commercial rates for short-term debt exceed 20 percent.

"We not only hope, but have good grounds to believe that the financial closing will be around December this year," Restuccia said in an email Wednesday.

China's Beijing Construction Engineering Group, which will build the project, and the Chinese turbine supplier, which hasn't been identified, will jointly own 25 percent.

"There are very few financing lines for large infrastructure projects" in the region, Eduardo Tabbush, an analyst at Bloomberg New Energy Finance in London, said in a telephone interview. Lenders including the Washington-based Inter-American Development Bank and International Finance Corp. are still reluctant to lend to Argentina following the default.

The $3.5 billion wind project will furnish 4 percent of the nation's power once fully operational in 2017, Restuccia said. The first 150 megawatts is expected to start producing power in February 2015, he said. It will be larger than a 306-megawatt cluster of wind farms in Mexico that's currently Latin America's biggest wind-energy cluster, according to New Energy Finance.

Geassa expects to receive an initial $1 billion tranche in January 2013 to build the first 300 megawatts and a 295- kilometer (183-mile) transmission line linking it to the grid, he said. Corporacion Andina de Fomento, the Caracas-based development lender, is helping to structure the debt, which will be guaranteed by China's state-owned export credit insurance owner Sinosure.

Geassa expects to sign this month a 15-year contract to sell power from the project to the wholesale energy administrator Cia. Administradora del Mercado Mayorista Electrico, he said. The company was created in 2008 to develop the project and then shelved it after the global banking crisis.

Located 400 kilometers from the nearest port, it will be a "tremendous project," Restuccia said. "There's no infrastructure nearby. A city will have to be built at the site" to cater for the workers.

Source: Bloomberg