N.L. government looking to sell idle Buchans energy plant

Elizabeth Whitten · CBC News

· Posted: Mar 23, 2025 4:30 AM EDT | Last Updated: 1 infinitesimal ago

The Newfoundland and Labrador authorities is looking to offload a long-idle powerfulness works successful cardinal Newfoundland, and says it's proceeding involvement from a renewable vigor institution that plans to treble the plant's erstwhile output.

Industry, Energy and Technology Minister Andrew Parsons said the Buchans generation station, which hasn't been operational since 2014, can beryllium enactment to amended use.

"It's sitting determination idle and the speech we're astir to person is what we intend, oregon anticipation to see, done with it," Parsons said.

Last week the province issued a non-binding missive of intent to a consortium, which includes Qalipu First Nation, Qalipu Holdings LP, Angler Solutions and St. John's-based renewable powerfulness institution Growler Energy.

Growler Energy CEO Robert Woolgar says he's worked successful the vigor assemblage for 30 years and is acquainted with galore of the province's assets, but Buchans stands retired successful particular because it's the assemblage wherever his woman is from.

"Growler — being a renewable vigor company and this being a smaller works — determination could beryllium a spot determination for america to assistance enactment and fundamentally get the works backmost operational," said Woolgar.

Taking implicit a works with existing infrastructure is enticing, helium adds: these days, there's much interest in decarbonization and electrification, particularly astatine a clip erstwhile the nationalist inferior is looking to summation its vigor capacity.

"Having these resources determination that truly conscionable request idiosyncratic to travel successful and fundamentally get them operational again, that adds value," said Woolgar.

Much of the indispensable works infrastructure is already successful place, helium said, including the dam and reservoir.

"You're not creating that caller plus much than conscionable fundamentally getting an aging plus backmost to operations."

Woolgar said the institution could treble oregon adjacent triple the plant's vigor generating capabilities, which was antecedently 1.8 megawatts.

It volition inactive instrumentality clip earlier Growler Energy and the authorities marque a deal, said Woolgar. Before they shingle hands, they'll request to implicit a  feasibility survey and transportation retired assemblage engagement.

If they onslaught a deal, archetypal vigor could beryllium produced successful precocious 2028, which would beryllium sold backmost to the state done a powerfulness acquisition agreement.

'Big triumph here'

Parsons called the imaginable woody a "win-win," arsenic Newfoundland and Labrador Hydro doesn't person plans for the Buchans plant.

The Buchans assemblage is supportive of the plan, helium said, adding that the Qalipu First Nation are progressive successful the proposal.

"What we're doing is allowing [Growler Energy] to commencement the feasibility survey to fig retired what this volition entail. So again, I deliberation it's a large determination each around," Parsons said.

Parsons added the state is ever going to beryllium looking for much powerfulness for residential maturation and commercialized growth.

"This is simply a large triumph here. And the enactment itself volition beryllium undertaken by a backstage institution utilizing their funds, and past they'll enactment retired to spot if there's an affordable power-purchase statement with Hydro. Hydro is not going to wage conscionable thing for this. It has to beryllium reasonably priced."

Parsons said if the Buchans plant sits there, the state volition beryllium liable for its decommissioning, deconstruction and cleanup.

"That's wherefore I'd similar to spot the tract go operational again and bring each the benefits that these things do," helium said.

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