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The Lower Churchill Project

I thought a thread on the Lower Churchill project would be appropriate in the Atlantic Canadian section seeing it is becoming an Atlantic Canadian project and not just a Newfoundland and Labrador project

Quote:

N.L., Emera reach Lower Churchill hydro deal

Newfoundland and Labrador has finalized a deal to develop the Lower Churchill hydroelectric project with Emera Energy of Nova Scotia, CBC News has learned.

Details are expected to be announced at a news conference in St. John's on Thursday.

Nalcor, Newfoundland and Labrador's Crown-owned energy corporation, has been in discussion with Emera and the Maritime provinces about a plan to funnel hydroelectric power from the Churchill River in Labrador through Newfoundland and then into Nova Scotia.

Premier Danny Williams is expected to disclose details of the deal on Thursday in St. John's, CBC has been told, and is scheduled to be joined by Nova Scotia Premier Darrell Dexter.

Asked to respond by CBC News, Williams's office said it had no comment.

Later, however, the government announced that a technical briefing on an unnamed topic would be held Thursday morning at the Sheraton Hotel in downtown St. John's, to be followed by a "special announcement" involving Williams.

The deal involves developing about 800 megawatts of power at Muskrat Falls, one of two long-proposed sites in the Lower Churchill project. A much larger site, at Gull Island, is being shelved for now.

Nalcor believes a smaller approach is still viable because there is an immediately available market.

In Newfoundland and Labrador, the project would provide energy to mothball the Holyrood generating station, which burns bunker fuel for power. In Nova Scotia, the power could be used to replace the use of coal.

However, power could also be exported to New Brunswick and possibly to the United States.

Williams and Nalcor have focused on a Maritime route for moving Labrador power after failing to win favour — at least on terms that Newfoundland and Labrador will accept — with Quebec.

Williams said earlier this year that Quebec "shafted" attempts to transfer Lower Churchill power across Quebec and into markets in Ontario and the U.S.

The federal government has been asked for $375 million in support for an underwater hydro link to Nova Scotia through an existing infrastructure program.

Prime Minister Stephen Harper has said the proposal, which drew criticism from the government of Quebec, will be judged on its merits.

Source: http://www.cbc.ca/canada/newfoundlan...#ixzz15agc451p

Quote:

Lower Churchill deal would boost Atlantic economy, Nova Scotia premier saysHALIFAX - A deal to develop the proposed Lower Churchill hydroelectric project in Labrador would be a vital boost to Atlantic Canada's economy, Nova Scotia Premier Darrell Dexter said Wednesday amid reports an agreement has been reached.

Dexter said there was still work to do before he could confirm reports that Emera Inc. (TSX: EMA.TO), the owner of Nova Scotia Power, has signed a deal with the government of Newfoundland and Labrador to develop 800 megawatts of power at Muskrat Falls and transmit it to his province.

But if finalized, the deal could herald major economic change for the East Coast, Dexter said.

"We are in a position where we have the opportunity to make an historic change in the economic fundamentals of our region and I would like to allow that to come to an orderly conclusion," Dexter said.

"I rely on many years of experience in negotiations, which tells me that you may believe that you have agreement right up to the last minute and then something goes south."

In recent weeks, Premier Danny Williams has publicly mused that a deal was near completion that would see the construction of subsea cables. Those cables would carry hydroelectricity from Muskrat Falls to Newfoundland and Nova Scotia.

On Wednesday, Williams reiterated his past comments that both provinces were working towards a deal.

"That was the truth then, that is the truth now," he said in St. John's, N.L. "The truth, the whole truth and nothing but the truth, so help me God."

Emera and Nalcor Energy — the Crown-owned utility for Newfoundland and Labrador — also declined comment. But Williams and Dexter have scheduled a news conference for Thursday in St. John's to announce what Dexter's office is calling a "significant energy partnership."

In June, both provinces made a joint request for $375 million from Ottawa for a subsea power cable connecting the two provinces.

"We have not heard from them with respect to that application, I suspect, in part, because they would want to see what the final agreement looks like," said Dexter.

The cost of the cable project isn't known but a SNC-Lavalin study has estimated it would be between $800 million to $1.2 billion.

Emera has been in negotiations to develop Lower Churchill power since a memorandum of understanding was signed in January 2008. Nalcor officials have said it would take about five years to get energy flowing to Nova Scotia once a deal is signed.

Dexter said such a deal would guarantee access to clean, renewable power and be a potential revenue generator if the electricity is sold elsewhere, such as the lucrative and energy-hungry markets of the northeastern United States.

"These kinds of projects cover generations," he said. "You can imagine having some component of your energy portfolio that is stable for many, many years."

Last month, Williams announced he was pursuing the Lower Churchill project in two phases. He said his plan was to build a generating station at Muskrat Falls, followed by a larger facility upriver at Gull Island.

The multibillion-dollar project has been on the drawing board in one form or another for decades. In 1980, it passed an environmental assessment but was set aside due to concerns over market access and financing.

Concerns over the loss of habitat that would result from the development of the project have also stalled its progress. But Nalcor has promised to develop a compensation plan to make up for that.

The desire to build more power plants on the Churchill River in central Labrador can be traced back to 1972, when the Churchill Falls hydroelectric dam was finished with Quebec's help.

Under that deal, which doesn't expire until 2041 and is often criticized by Williams, Quebec has reaped more than $19 billion in profits while Newfoundland has pocketed only $1 billion, according to the Newfoundland and Labrador government. As a result of that deal, Newfoundland and Labrador has sought an alternate route for Lower Churchill power that bypasses Quebec.

In February 2009, Nalcor said the overall project would cost about $10 billion to build and transmit 3,074 megawatts of energy — enough capacity to supply the energy needs of about 1.5 million homes.

Source: http://ca.news.finance.yahoo.com/s/1...va-scotia.html

This would be great for Nova Scotia. I hope that it proceeds.

Logically, it shouldn't have to go by that route, but I say, whatever it takes....but what kind of excuse for a country makes this necessary? Would this happen anywhere else in the world ?

Quote:

Originally Posted by Architype (Post 5059801)

Logically, it shouldn't have to go by that route, but I say, whatever it takes....but what kind of excuse for a country makes this necessary? Would this happen anywhere else in the world ?

Africa maybe or the Middle East.

Not to derail this thread but I often wonder what other countries must think about Canadian internal affairs. In allot of countries this project would be considered a benefit to the nation, while here it's seen as benefitting a couple provinces, and making sure others are left in the cold. The provinces act like sovereign states only concerned with their own interests, and not as members of a unified nation.

Does anyone have an image showing the proposed transmission route? Or can someone provide a description of the route?

^ Across the straits, down the west coast of NL, across the strait, thru Cape Breton, a more exact route may not be finalized yet, but it will circumvent Gros Morne nat park.

The existing Nl grid (just imagine more red lines):

http://www.hatch.ca/energy/Energy_In...ddist_B-lg.jpg

Source:
http://www.hatch.ca/energy/Energy_In...tribution.html

The following link can provide a slightly better clue (but not much better):

http://www.nalcorenergy.com/assets/l...re%20(web).pdf

Some more interesting commentary here:

Quote:

Contrast this mess to the situation in Europe, where the European Union has stepped in to remove barriers to cross-border exchanges in electricity. New regulations mean transmission system operators are obliged to take new generation and compensation is paid by the operators of the national systems from which cross-border flows originate.

If 27 sovereign states can reach agreement on a system that forgoes protectionism and monopolistic market dominance, in exchange for more competition and lower consumer prices, why can't Canada? Quebecers should be embarrassed.

Quote:

Originally Posted by Architype (Post 5059981)

^ Across the straits, down the west coast of NL, across the strait, thru Cape Breton, a more exact route may not be finalized yet, but it will circumvent Gros Morne nat park.

Thanks for the information. I guess major upgrades will be necessary for the land-based grids in Nova Scotia and Newfoundland. Hopefully the grid will then go into the US east coast market and Nova Scotia Fundy tidal power could also be utilized plus additional NFLD hydroelectric. If there is a surplus then it can be used to produce hydrogen as a fuel source for cars and airplanes (once cheap oil become scarce).

this is a great project. atlantic canada to me has definitely started to change over to green energy. there are 3 new wind farm's within 30 mins of where i live in westville along with the new wind turbine plant in trenton, the tidal projects got funding this week from the government of canada, and now this project. keep it up:tup:

http://www.cbc.ca/gfx/images/news/to...rchill-map.jpg

this image shows the power grid that will be used in this deal.

image is from: http://www.cbc.ca/canada/nova-scotia...deal-1118.html

Quote:

Historic hydro pact signed between N.L., N.S.

The premiers of Newfoundland and Labrador and Nova Scotia on Thursday announced a $6.2-billion deal to develop the Lower Churchill hydroelectric megaproject, bypassing a historical roadblock at the Quebec border.

"It's a huge milestone," Premier Danny Williams told reporters in St. John's, as he and Nova Scotia's Darrell Dexter revealed a complex deal that will generate power on the Churchill River, and supply energy to both provinces and possibly beyond.

"We think this is absolutely huge," said Williams. "This project is a go."

The premiers agreed on a 35-year partnership involving Nalcor, Newfoundland and Labrador's Crown-owned energy corporation, and Halifax-based Emera Inc., parent company of Nova Scotia Power.

At its peak, about 2,700 people are expected to work on the project, which is expected to deliver power by 2016. Nalcor CEO Ed Smith said a contract for engineering and construction management is expected to be let in December.

The deal effectively allows Nalcor to generate energy for Newfoundland and sell surplus energy to new markets, and provides a consistent source of energy to Emera, which already has commercial stakes in the Maritimes and the northeastern U.S.

Both parties stand to profit from potential sales to other markets.

The deal will see a 834-megawatt plant built at Muskrat Falls in central Labrador, with a power supply of about 4.9 terawatt hours per year.

Emera will receive about 20 per cent of that energy, and in return is paying for the construction of the link.

The deal, though, leaves undeveloped the 2,200-megawatt potential of the Gull Island site on the Churchill River, which has been on blueprints — and a dream of every Newfoundland and Labrador premier — since the 1970s.

Even though only the smaller component of the megaproject is now being built, Williams described it as monumental, and the fact that it is bypassing Quebec is of historic significance.

He said residents of his province "can let it go," referring to decades of ill feeling over a 65-year contract signed with Quebec in 1969 on the Upper Churchill megaproject, in which Quebec reaps the vast majority of revenues.

'Historic day for ... all of Atlantic Canada'
Under the deal, Nalcor would develop Muskrat Falls and the companies would jointly develop subsea power lines from Labrador to Newfoundland. Emera would cover the cost of continuing the lines to Nova Scotia.

Dexter predicted the province will benefit from 35 years of clean energy and more stable prices because of the agreement.

"This is a historic day for Nova Scotia, and all of Atlantic Canada," Dexter said in a statement. "Through this partnership, Nova Scotia is taking a major step forward as an international leader in renewable energy."

Under the terms of the deal, Emera will invest $1.2 billion in exchange for otherwise free access to 20 per cent of the electricity generated by the project.

Dexter plans to meet with New Brunswick Premier David Alward to discuss how the agreement would enable New Brunswick and Nova Scotia to strengthen the electricity system in the Maritimes and create jobs in Atlantic Canada.

Further details of the deal are being negotiated between Nova Scotia Power and Nalcor, and will be subject to public review and approval by the Nova Scotia Utility and Review Board, said the statement from Nova Scotia.

Read more: http://www.cbc.ca/canada/nova-scotia...#ixzz15eNyOrVR

This is truly great news, I'm glad that our project will help the whole Atlantic region prosper instead of going through Quebec. Not just because Quebec is Quebec but because our region should be helping each other out to prosper. It's also great that both our governments are working together to better the region even though they stand on different sides of the political spectrum, good for them to not bring politics into this!

One thing I had been wondering about was if Emera would setup a regional office in St. John's like they have in the Maritime cities but it seems as though their attention will actually be focused on Nova Scotia.

All in all great deal, lets hope Danny Williams gets re-elected next year so that this deal doesn't go down the toilet.

The Muskrat project is about the same size as the one planned in BC, and at a similar cost -

Quote:

The Site C megaproject near Fort St. John would cost an estimated $6 billion, but would produce enough electricity to power 460,000 homes. . .

Site C, providing about 900 megawatts of power, would create an 83-kilometre long reservoir and flood more than 5,340 hectares of land in the Peace River Valley.

PEI wants in on potential Lower Churchill deal

Quote:

Published on November 18th, 2010
Wayne Thibodeau

Topics : The Guardian , Canadian Press , Prince Edward Island , Nova Scotia , Newfoundland and Labrador Prince Edward Island is actively engaged in talks to plug into a blockbuster power deal set to be announced today that will see Lower Churchill hydroelectric power pumped into Nova Scotia.

Energy Minister Richard Brown spent much of Wednesday on the phone with his Newfoundland counterpart before boarding a plane to Ottawa to push forward P.E.I.’s proposal for another power cable to New Brunswick.

Media reports on Wednesday confirmed that Newfoundland and Labrador had finalized a deal to develop the Lower Churchill hydroelectric project with Emera Energy of Nova Scotia. The details are expected to be announced today in St. John’s but the proposal is expected to see the power funneled through Nova Scotia and New Brunswick and then into the U.S.

With cheap, renewable, and clean power on the Island’s doorsteps, Brown said he’s doing everything he can to ensure the province can plug in.

Quote:

Churchill hydro deal signals era of Atlantic co-operation

Newfoundland and Labrador Premier Danny Williams is celebrating his government’s $6.2-billion deal to develop Labrador hydroelectric power as a declaration of independence from Quebec’s domination in an economically critical, historically controversial industry.

http://www.pbase.com/image/130455292/original.jpg

Read more at Source:
http://www.theglobeandmail.com/globe...rticle1804039/

http://www.theglobeandmail.com/repor.../?from=1804039

Edit: I think the undersea cable will go from Cape Ray and not Bottom Brook.

There has been the hope of adding Fundy tidal power to this electric power transmission grid. There is certainly a lot of potential for hydroelectric power in the Atlantic Provinces. Here are a couple links on Fundy Tidal power
http://www.cbc.ca/news/background/en...dal-power.html
http://www.cbc.ca/canada/nova-scotia...al-blades.html

Considering NL is so pissed at Quebec about how much Quebec has leeched off of them since the first deal, (as shown in the graphic above), I wonder if NL would be able to start redirecting Churchhills Falls power over the new grid (doesn't look like a big distance to run some lines to), and profit that way while sending less down through Quebec.

It all depends on how the Quebec deal was set up of course, so they probably can't do that. But I'm sure someone's thinking this somewhere up there.

On the other hand, NL could just start undercutting Quebec's profits from Churchhill Falls once the connections are made for the new projects.

Quote:

Originally Posted by Taeolas (Post 5061758)

The Churchill Falls contract runs until 2041, also the new lines would have to be built to take all that capacity, or some of it, plus the new projects.
A total of over 8000 mw, or enough to power 4 million homes, would be generated from the three projects in Labrador.

Here is another way to generate small amounts of hydroelectricity. This might be applicable to St. John's, NFLD also - http://thechronicleherald.ca/Business/1213017.html . It isn't directly related to this thread but is related to hydroelectricity.

^ What a cool idea and it's very cheap to set-up.

Should the name of this thread change to be about green energy or something?