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Despite such a favourable climate for new energy transmission, it’s not the first time such mega-projects have been proposed – or stalled. Plans for a second nuclear reactor, Point Lepreau II, haven’t progressed much since the idea was first voiced three years ago. Nor did calls for a coal-fired plant in Belledune ever kick-start that project. So despite political efforts to seemingly shout new sources of energy into being, the market has so far resisted. Another issue is the American “forward capacity” market that encourages the construction of power plants through the use of incentives. Already several new plants are underway; whether they will supply enough electricity to the region to negate the need for a transmission corridor – especially one carrying green fuel – remains to be seen.
Perhaps the most contentious challenge to the corridor comes from the issue of LNG transport. It is a sore point with the Americans that the Canadian federal and provincial governments have protested the passage of LNG tankers in Passamaquoddy Bay. The main issue is that the governments – with pressure from a number of different local groups – insist that the Bay isn’t suitable for the “heavy industry” of the LNG tankers. The Bay, of which two-thirds is in Canadian waters, includes everything from significant marine historic sites to large aquaculture operations. According to Kerry, Americans view the Canadian actions as protectionism and argue it causes a “chilling effect” among some project proponents, such as LNG producers.
The result is the state’s LNG producers and developers have become involved in the corridor legislation, Kerry said. They’re worried that if the corridor is developed, but not directed to their locations, that it could become a threat to their economic viability if the corridor skips past them, carrying only New Brunswick-produced energy to the larger American markets. This has caused the industry to oppose the corridor without some additional studies first and to lobby even harder for passage through Passamaquoddy Bay. Curry agrees some “resentment” exists from industry over the LNG issue and that groups on both sides of the Bay have concerns about how tanker passage through the bay would impact tourism and fishing. “That’s a discussion that has to be had,” Curry said, adding it won’t be helpful if that side issue snarls up the newer project, which is meant to benefit both sides of the border.
Kerry argues, however, that concern over competition with American LNG facilities and renewable resources remains one of the barriers that must be overcome. “Where they are really apprehensive is that someone will come in and exact too low a price for the corridor we are proposing and then have a hegemony on an energy corridor for multiple uses.” Specifically, Kerry noted, Maine’s producers grew worried when they realized the Irvings’ involvement in the corridor might prevent the development of a Maine LNG facility because of the opposition of the federal and provincial governments.
At least one energy analyst said the construction of the Irving-Repsol LNG facility has already pretty much quashed demand for further facilities. Indeed, the addition of a third LNG tank to the facility is meant to show other potential gas producers that before they could complete a full-blown facility, the Canaport one could simply add more capacity. Coupled with an excess of natural gas in the U.S. market right now, it’s unlikely that many of the current LNG projects on the books will go ahead.
The other concern for Maine is if a highvoltage direct-current transmission line runs from Northern Maine through to Massachusetts, that it will be of limited benefit to Maine rate-payers and may, in fact, even discourage the development of renewable wind power in the area. The latter might not happen because of concerns they’d have no where to sell the energy. Goodwin said he’s aware that people have a lot of concerns and questions, but is looking forward to a healthy debate that will sift through the information and allow for informed decisions.
According to Hastings, the proposed energy corridor is a “very good thing, a real change of pace. There’s barriers to everything in business. I think we’re going to need to be creative and engaged.” And Goodwin concurs: “With each successful project we’re able to do in Atlantic Canada helps to make the next project even easier because we become an even brighter circle on the global energy map.”
