the
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CANADIAN EDITION
VOL. 1 • JANUARY 2016
BC Hydro
Site C & John Hart Generating Station
Manitoba Hydro
A unique utility, with some powerful projects
NALCOR ENERGY Energy for the Future
JANUARY 16 VOL 1 • ISSUE 4
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he Economic Review covers the ever “Evolving” trends of the mining industry within Canada. It features a range of aspects, from geologists, to prospector’s producers and equipment suppliers. In this issue of The Economic Review
“At the moment we are in the construction phase and this year we have had more than 5,000 people working on the project. In the short-term, we have seen injections into the local economy through the wages paid out to workers and significant business investment. Once Muskrat Falls is in operation, we will be selling energy that is surplus to our provincial needs into markets in northeastern North America. We estimate that the project will return value and savings of some $60 billion to the province over the next 50 years.” With the beginning of the New Year, many of us will be thinking of what 2016 will bring, on both a personal and business level. This coincides with the current topics we have discussed within the hydro-electric industry. We have a plethora of large-scale hydro-electric projects from Nalcor Energy’s Muskrat Falls, BC Hydro’s Site C Clean Energy project and the John Hart generating station along with Manitoba Hydro’s Keeyask project. These companies, along with the communities that the dams will serve, will be to be looking not just at the year to come, but what the approaching future decades will bring in regards to employment opportunities, whilst under construction and beyond. But, overarchingly, a prominent focus will be on the clean, sustainable and renewable energy that these project’s will provide the communities for generations to come.
the
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CANADIAN EDITION
VOL. 1 • OCTOBER 2015
ReBUILD CANADA
Masters of public infrastructure
Manitoba Hydro
A unique utility, with some powerful projects
Anaconda Mining
Anaconda: Safety. Integrity. Reliability.
OCTOBER 15 VOL 1 • ISSUE 3
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GLOBAL ECONO MY
GLOBAL ECONOMY Infrastructure: Grow the economy, create jobs and make the country more sustainable.
G
row the economy, create jobs and make the country more sustainable. Canada’s new infrastructure minister says projects that are shovel-ready and meet the Liberal government’s national objectives will get some of the billions in new federal cash being made available. Infrastructure Minister Amarjeet Sohi says those big objectives are threefold: grow the economy, create jobs and make the country more sustainable. Sohi says shovel ready projects mean a municipality has done all the relevant studies, public consultation and planning — to qualify for financial help from the federal government. He accused the Harper Conservatives of announcing money for projects that weren’t ready to begin so they could reap some political capital. “We want to create a process where I don’t go out and make announcements without even consulting with my departmental staff or getting their input or not even having an application in for that project,” Sohi said in an interview with The Canadian Press.
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“We will develop some processes that bring in more accountability and also more transparency.” That will include better explanations to cities about why a project proposal was rejected, and set new service standards like speeding up application processing times. “If we make a commitment to a project, and if a project has been sitting on our staff’s table for six months, that’s unacceptable,” Sohi said. The Liberals have promised to increase infrastructure spending by an average of $6 billion a year over the next 10 years, raising the federal investment to $125 billion during that time. The extra money is supposed to be spread equally to public transit projects, green infrastructure, such as wastewater facilities, and social infrastructure like affordable housing. Sohi said the government plans to refocus the government’s marquee infrastructure program, the New Building Canada Fund, to focus on more cross-country projects like highways, ports, and border crossings to help speed up the flow of commercial goods and trade. Sohi didn’t say whether the new money the Liberals are promising would top up a suite of existing funding programs at Infrastructure Canada, or add a new program on top of what is already there to pay for upgrades
to water and wastewater systems, social housing, seniors’ facilities, and infrastructure in aboriginal communities. “You can’t fit all of those in one policy,” Sohi said. “You have to design your program in a way that it acknowledges the uniqueness and then we have to adapt different approaches to meet those unique needs.” The Liberals made running deficits of up to $10 billion a year to pay for the infrastructure program a key election promise. They hope the money will jolt the economy and raise federal revenues, helping to pay for their spending promises and balance the budget in four years. Prime Minister Justin Trudeau turned to Sohi, a former Edmonton city councillor, to oversee the program. Sohi defeated former Conservative cabinet minister Tim Uppal in the Alberta riding of Edmonton-Mill Woods by 92 votes in the Oct. 19 election. Sohi takes a broad definition of infrastructure: It is anything, he said, “that allows you to be part of your community.” That includes public transit to get to a job or school; a shelter for a woman escaping domestic violence; affordable housing for someone living on the street. “You can’t talk about infrastructure without talking about the community aspect of it. It is a means of building
G LO BA L E CO NOM Y
strong, sustainable, livable communities that we all want to be part of,” he said. The reason for that definition lies in his personal background: After Sohi immigrated to Canada from India in 1981 at age 17, he took the bus in Edmonton to the library and then later classes to learn English. He later worked for the city’s disabled transportation system and drove a bus for a time. “Infrastructure is a way to opportunities,” he said.
Infrastructure for economic and social development, and a more sustainable world The need for infrastructure development is the great global challenges of our time. For a better, greener, safer and more sustainable world the infrastructure community must unite, says ACE vice chairman Gavin English. The need for infrastructure development is the great global challenges of our time. There is an essential and growing demand for infrastructure to address critical global issues such as climate change, energy demands, water and food shortages, mass urbanisation and economic and social development. To satisfy this need effectively and deliver lasting economic and social development the world needs the collective leadership, experience and creativity of the infrastructure community. There is clear evidence that Investment in infrastructure leads to the growth of a countries
economy and the improved wellbeing of its people. The McKinsey Global Institute recently estimated that over the next fifteen year the world needs to spend $57 trillion on infrastructure to realise global economic growth ambitions. In the UK alone infrastructure spending may need to run at £40bn to £50bn each year up to 2030 to meet demand. “For a better, greener, safer and more sustainable world the infrastructure community must unite at national, regional and global level to deliver the global sustainable infrastructure we need.” Around the world Investment in infrastructure has always played a leading role in economic development, from the roads and aqueducts of ancient Rome to the railway boom in Britain in the mid 19th century. Basic infrastructure – roads, railways, airports, for energy generation and supply, water supply, sanitation, etc. underpins sustainable development and economic transformation of emerging economies. A few months ago KPMG published a list that showcased 100 of the most ambitious and exciting infrastructure projects from around the world. All the projects listed will contribute to the economic growth in the countries in which they are based and improve the lives of millions of people. Infrastructure investment is needed in developing countries to expand: transport systems (road, rail, airports, ports, waterways, etc.); energy generation, supply and transmission; water collection and supply; sanitation systems; communications systems
(telecommunications, internet, etc.). Such investments will lead to very rapid economic and social development. In developed countries the economic and social improvements are not quite so pronounced because they are starting from a higher position in terms of the national economy and social conditions but there are still clear improvements. In particular at times of recession or economic downturn when investment in infrastructure is often used to create jobs and stimulate the economy. “The human suffering and financial costs of the impacts of climate change are enormous, affecting both rich and poor countries alike.” Climate change is a reality and the consequences are devastating – rising sea levels, decreasing fresh water resources, extreme droughts, storms and flooding, etc. The human suffering and financial costs of the impacts of climate change are enormous, affecting both rich and poor countries alike. In 2005 Hurricane Katrina destroyed New Orleans causing over $125 billion of damage, killing over 1000 people and displacing whole communities. But it is developing countries that lack the infrastructure and resources to mitigate and adapt to the impacts of climate change and it is the world’s poorest people that suffer more than others when disasters hit such as the earthquakes in Nepal in 2015, Haiti earthquake in 2010, the Indian Ocean Tsunami of 2004, Bhola cyclone 1970, Huang He floods of 1930, etc.
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GLOBAL ECONO MY
Mining:
In Canada’s far north, warm weather threatens vital ice road
Contributing to climate change are the critical levels of atmospheric CO2 levels which will continue to grow with increasing global energy demand unless action is taken. Appropriate sustainable infrastructure is needed to: mitigate and adapt to the consequences of climate change; and to develop and deploy clean energy technologies to energy efficiency to make substantial and long term reductions in global greenhouse gas emission. “Infrastructure investments can also help improve peace and security by enabling, sustaining and enhancing societal living conditions” Infrastructure investments can also help improve peace and security by enabling, sustaining and enhancing societal living conditions and the welfare of people in developing countries.
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Infrastructure connects communities and countries with market, health and education facilities, gives access to clean water, sanitation and power, and improves livelihoods and generates employment creating the conditions for lasting peace. For a better, greener, safer and more sustainable world the infrastructure community must unite at national, regional and global level to deliver the global sustainable infrastructure we need. We must all collaborate and take a lead in the financing, planning, designing, construction, operating, managing and maintenance of major future global infrastructure programmes
Each winter, in the far reaches of Canada’s north, a highway of ice built atop frozen lakes and tundra acts as a supply lifeline to remote diamond mines, bustling with traffic for a couple of months before melting away in the spring. This year, the world’s busiest ice road is running late. Unseasonably warm weather has set back ice formation on the Tibbitt to Contwoyto Winter Road, named after the first and last of hundreds of lakes on the route. The road is still expected to open on schedule in late January, but if current weather patterns continue that could mean more work for crews trying to build the ice or cut the road’s already short period of operation. Since its first season in 1982, the road has been vital to a handful of mines scattered across Canada’s Northwest Territories (NWT), cut off by a maze of water and spongy tundra, otherwise only reachable by air. Running 400 kilometers (248 miles), it links to three diamond mines, stretching as far as 600 km when it supplied a nowshuttered gold mine. A shorter season could mean extra costs and inconvenience for moving what amounted last year to 9,000 truckloads of diesel, machines and mining supplies from the NWT’s capital city, Yellowknife. To climate scientists, this year’s late freeze could be a harbinger of winters to come. It also raises the alarming prospect of thawing
G LO BA L E CO NOM Y
permafrost - the frozen layer of soil covering nearly half of Canada’s landmass - which traps methane, a greenhouse gas, which would only hasten warming. This year’s warmer temperatures may be connected to the El Nino climate phenomenon, a periodic warming of Pacific Ocean waters that has far-reaching effects. It is Yellowknife’s second warmest December on record, said David Phillips, a senior climatologist at Environment Canada, Canada’s national weather service. So far, the average temperature for this December is just above -15 Celsius, marginally cooler than the -13 Celsius for December 2005, but well above the mean of around -22 Celsius. The NWT falls largely within the Mackenzie River Basin, an area where winter temperatures have warmed by 4.5 degrees Celsius over the last 68 years. “That’s a sea change,” said Phillips. “It is just runaway warming.” For Ron Near, a retired Royal Canadian Mounted Police officer who manages the road for a group of mining companies, slow ice formation is a transportation problem. Despite the warmer weather, he said it is not “panic time,” and said he expects the road to start operating by the end of January, with the heaviest loads waiting until a harder pack of ice at the beginning of March. “It has affected us some, but we’re still within guidelines of previous warmer years,”he said.“It’s just going to take considerably more management this year to have success.” ALTERNATE ROUTES Ice roads cross eight Arctic countries, and Canada alone has 5,400 km of them, critical to unlocking mineral wealth from remote, harsh regions. In the NWT, a vast land covering more than 1.3 million square km
with just 43,000 residents, diamonds were the biggest contributor to the economy last year. It is no surprise that the territorial government has been pushing a partial all-season road on the southern end of the mine supply route, which could extend the ice road’s duration to three months. The C$170 million project may find favor with Canada’s recently elected Liberal government, which has pledged to spend about C$10 billion annually on infrastructure for the next three years. But it is a long way from the ambitious idea first mooted in the late 1950s by then-Prime Minister John Diefenbaker, who campaigned for a “road to resources” running through NWT’s Mackenzie Valley and connecting to the Arctic coast. More than a half century later, that vision for a Mackenzie Valley Highway remains elusive. There is a road in the south that extends as far as the town of Wrigley, and a C$300 million road is being constructed to connect the far north town of Inuvik with Tuktoyaktuk on the Arctic coast. But there is no road connecting those two ends, a highway that proponents say would assert Canada’s Arctic sovereignty, but would likely cost more than C$1.7 billion to build. And advances on the Inuvik to Tuktoyaktuk project are slow because construction occurs only in winter to minimize permafrost damage. More than half the NWT permafrost is sporadic, or discontinuous. It is easily disturbed, which in turn produces ground thaw and instability. Some 1,700 gigatonnes of carbon are held in permafrost soils globally in the form of frozen organic matter, researchers from the universities of Cambridge and Colorado said in September. If that methane and carbon
dioxide were released, it would increase the risk of catastrophic weather, or loss of agricultural land, causing up to $43 trillion in economic damage globally by 2200, the study calculated. By mid-century, rising temperatures may reduce the land in Canada suitable for ice roads by 13 percent, or 400,000 square km, concluded researchers at the University of California, Los Angeles in a 2011 study published in Nature Climate Change. RISKY FUTURE The consequences of those warming temperatures pose an additional risk to mining companies in the NWT, where a half dozen planned mines are on hold due to multi-year low prices for gold, rare earths and other metals. A taste of the trouble warm winters cause came in 2006, when the road closed after just 36 days. Miners spent more than C$100 million to charter flights for fuel and began talking seriously about options like hovercraft and blimps. To make the most of winter’s cold, lightweight groomers are now clearing snow that insulates and slows ice growth. Later, amphibious tracked vehicles, called Hagglunds, will tow ground-penetrating radar to measure ice thickness. Crews may need to flood more of the road than normal to quicken the freezing process this winter to overcome the warmer weather, Near said. The road, tracked by global positioning system technology, now allows longer trailers that haul heavier loads and even has‘express’lanes, so returning trucks with empty loads can exceed the 25 km per hour speed limit. “We think about climate change all the time,” said Near. But he said he “learned a long time ago you can’t control the weather. You just have to be able to plan for it.”
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MANITOBA HYD R O
MANITOBA HYDRO
A unique utility, with some powerful projects
B
ack in the 20th century, when the Manitoba Power Commission and Manitoba Hydro Electric Board united to form Manitoba Hydro, pushing out into far reaches of the Canadian province was no easy business. Now, says public affairs manager Scott Powell, the world has opened up somewhat but the ingenuity, expertise and sheer determination required to see the corporation’s current projects through to fruition still necessitates an equal measure of drive. “Like Quebec, parts of northern Manitoba are extremely remote
By: Abigail Saltmarsh and we face a number of huge challenges even today,” he points out. “There are the extreme climates: the very hot summers and the long, cold winters, and then the access to the sites in order to be able to break ground. “When we began working on our first major northern projects back in the 1950s, there were no roads and there was very little infrastructure. But, even today, we are working in locations that are really quite unique - and we still require critical infrastructure for our current projects, such as Keeyask and Bipole III.” “Unique” is a term that is frequently applied to Manitoba Hydro, one of the largest and longest-standing energy utilities in Canada. The history of the
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electrical industry in the region goes back to the late 19th century, with the formation of the Winnipeg Electric Railway Company and the Manitoba Electric and Gas Light Company. Over the decades these and other companies evolved until Manitoba Hydro became the sole supplier of electricity. Today it remains a crown corporation, a publicly owned utility that is responsible to the provincial government, but operates as a separate entity. It is one of the largest energy utilities in Canada, with capital assets-inservice of more than $17 billion at original cost. Vertically integrated, it is involved in the planning, design, construction, operation and
MA N I TO BA HYDRO
maintenance of all elements of electricity and natural gas infrastructure, serving almost 562,000 electricity customers and nearly 275,000 natural gas customers in Manitoba. “What is unique for us as a utility is that over 95 per cent of our electrical energy comes from renewables,” Mr Powell continues. “We do have some natural gas generation as a back-up and purchase some wind power from independently-owned wind farms, but nearly all our electricity comes from reliable, self-renewing water power.” Manitoba Hydro’s energy is generated at 15 hydroelectric stations, most of which are on the Winnipeg, Saskatchewan and Nelson rivers. It is among the lowest cost providers of domestic electricity rates in
Canada and exports surplus electricity to utilities through its participation in three wholesale markets in Canada and US. It is also the major distributor of natural gas in the province, taking it out to nearly 100 communities in the province. Among the corporation’s current pioneering projects are Keeyask and Bipole III. The Keeyask Project will see the creation of Manitoba’s fourth largest generating station. It will be situated at Gull Rapids, some 725 km north-east of Winnipeg, on the lower Nelson River, and will be a source of renewable energy, providing approximately 695 megawatts of capacity and producing an average of 4,400 gigawatt hours of electricity each year, explains project manager Dave Bowen. “One of the things we are
particularly proud of is that Keeyask is a collaborative effort between Manitoba Hydro and four Manitoba First Nations: Tataskweyak Cree Nation, War Lake First Nation, York Factory First Nation and Fox Lake Cree Nation, working together as the Keeyask Hydropower Limited Partnership (KHLP),” he says. “Manitoba Hydro is responsible for project management during construction, and will own at least 75 per cent of the equity of the partnership. The four First Nations, known collectively as the Keeyask Cree Nations, together have the right to own up to 25 per cent of the partnership.” The $6.5 billion Keeyask Project has three major components: the Keeyask Infrastructure Project, Keeyask Transmission Project, and the Keeyask Generation
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MANITOBA HYD R O
Project. Construction on the infrastructure project began in early 2012 and was substantially completed in July 2014. Work began on the generation project following that, and the first generator is expected to come online in 2019, with all units online by 2020. “The infrastructure project saw work on access road construction and camp development: the site is remote and we basically had to construct a town. Along with the weather, one of our greatest challenges is attracting and retaining the labour we need to build Keeyask – our on-site workforce will peak at approximately 2,000 people. We are competing against other remote Canadian projects and our best in class camp provides workers a safe and comfortable home away from home,” Mr Bowen stresses. “We also have to ensure we maintain our focus on minimising environmental impacts throughout this project. It is about working in ways that minimise any environmental impact at every stage.” The Bipole III Project faces many of the same challenges as Keeyask – rugged terrain, severe climate, attracting and retaining skilled workers, as well as environmental considerations. And here again, the creation of high quality staff facilities is a priority. Bipole III, explains deputy project manager Alastair Fogg, is a $4.6 billion transmission reliability project with a projected in-service date of 2018. “What is unique again about Manitoba Hydro is that 75 per cent of the electricity used in Manitoba is generated at our northern generating stations. This energy travels south, through the Interlake region, down two high-voltage direct
current (HVDC) transmission lines known as Bipole I and II, which run side-by-side,” he explains. “The idea behind Bipole III was to provide an alternative path.” Being in such close proximity to each other, he continues, the Bipole I and II lines are susceptible to being impacted by a single weather incident, such as a major ice storm or tornado, or forest fire event, causing major power outages. They also rely on a single converter station in the south to convert the direct current power back into alternating current for distribution into the provincial power grid. The Bipole III Reliability Project includes two new converter stations. One of these, the Riel Converter Station, would be in the south to provide another major point of power injection into the transmission and distribution system. The other would be in northern Manitoba, northeast of Gillam (the Keewatinohk Converter Station).
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As with Keeyask, Mr Fogg insists, the traditional knowledge of the people living in the area was incorporated into project planning. “Aboriginal Traditional Knowledge (ATK) is valued for the contribution it made to providing complementary understanding about the environment and people” says Mr Fogg. “We recognise the value of ATK and that this knowledge was incorporated during the planning and environmental assessment process”. Angie Adams, vice-president of major capital projects at the corporation, stresses Manitoba Hydro’s continued success as a whole is linked to the economic and social sustainability of the communities in which it operates. The aim with both Keeyask and Bipole III is to provide early business opportunities for northern Aboriginal people, and other northern and Manitoba workers, and that - as the projects progress - there will be continued training and
MA N I TO BA HYDRO
long-term prospects for career development. “Our corporate social responsibility philosophy is to ensure best practices
“ŞA-RA Group “ŞA-RA Group has been providing Manitoba Hydro with its products since 2014. The products include electricity transmission line towers, transmission line accessories (hardware) and tower bolts. ŞA-RA Group has been assisting Manitoba Hydro in several projects including Bipole 3. ŞARA Group is proud to be part of Manitoba Hydro’s projects which uses hydro power to generate clean energy and preserve a clean environment.”
and to work closely with all communities where we operate,” she says. “And moving forward our aim is to ensure that we continue to conduct our business in this way. “I do believe that we have built a strong relationship between Manitoba Hydro and its partners, and this will serve to put everyone involved in these projects in a good position for the future.” As Manitoba Hydro heads towards fruition on its current projects, Mr Powell concludes, there are also other lessons to be learned from Keeyask and Bipole III. Not only is environmental and social best practice at the corporation evolving but the process of planning and constructing the projects is resulting in invaluable knowledge, know-
how and experience at every level within the utility. “A lot of the other infrastructure Manitoba Hydro relies on was installed after the second world war, when the first major rural electrification programmes took place,” he points out. “Much of this will need to be renewed over the next 10 to 20 years and we will also have to add new capacity to meet the growing needs of our customers. “The experience we gain on projects such as Keeyask and Bipole III will serve us well in the long-term as we move full speed into renewing, rebuilding and expanding our existing assets as they come to the end of their service lives. Being able to continue to provide our customers with reliable service at affordable rates is always our goal.”
“Our best reference is the satisfaction of our clients.” For 30 years, ŞA-RA Group has established a truly global presence in energy transmission, distribution and infrastructure. ŞA-RA’s reputation is based on its timely execution, high quality and state-of-the-art technical capabilities and its investment in its people.
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N ALCOR EN E RG Y
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N A LCO R ENERGY
NALCOR ENERGY
D
By: Abigail Saltmarsh
eveloping Muskrat Falls to power homes and businesses with clean, renewable energy and bring income to the region After decades of discussion the hydroelectric development of Muskrat Falls in Newfoundland and Labrador, Canada is now well underway, with a completion date set for 2018.
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N ALCOR EN E RG Y
With Nalcor Energy leading the project on the lower Churchill River, in Labrador, the culmination of the extensive consultation, planning and construction, will see homes and businesses in Newfoundland and Labrador as well as Atlantic Canada and Unites States powered with clean, renewable energy for generations to come. Furthermore, says Gilbert Bennett, Vice President, Nalcor Energy - Lower Churchill Project, the economic advantages to the province are boundless and immeasurable. The project is already creating significant employment, income and taxation benefits for Newfoundland and Labrador, as well as elsewhere in Canada, and both direct and indirect benefits will continue well into the future. “At the moment we are in the construction phase and this year we have had more than 5,000 people working on the project. In the short-term, we have seen injections into the local economy through the wages paid out to workers and significant business investment. Once Muskrat Falls is in operation, we will be selling energy that is surplus to our provincial needs into markets in northeastern North America. We estimate that the project will return value and savings of some $60 billion to the province over the next 50 years.” The earliest concept for the Lower Churchill Project goes right back to the 1960s, Mr. Bennett explains, when the maximisation of the potential of the whole river was under discussion. The 5,428 megawatt (MW) Churchill Falls Generating Station, with joint ownership between Nalcor Energy (65.8 per cent) and Hydro-Québec (34.2 per cent), opened in 1972 and since then development of Gull Island and Muskrat Falls further
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N A LCO R ENERGY
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NALCOR EN E RG Y
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downstream on the Churchill River has been in constant review. “It was really only in the last few years that the situation progressed significantly, with an agreement to move forward with Phase One of the Lower Churchill Project (the Muskrat Falls Project) announced in 2010 and then the sanctioning of the development coming in 2012,” he says. “Construction then began in 2013 and we now expect to be generating power by 2018.” Phase One of the project is seeing Nalcor Energy constructing an 824 MW hydroelectric generating facility at Muskrat Falls, approximately 30km west of Happy Valley-Goose Bay, Labrador. The facility consists of two dams and a powerhouse, and will be the secondlargest hydroelectric facility in the province when complete. There will also be a Labrador-Island Link (LIL) and various transmission assets. The link will carry electricity from the generating facility at Muskrat Falls across to the island of Newfoundland. It is an 1,100km high voltage direct current (HVdc) transmission system running from central Labrador, crossing the Strait of Belle Isle connecting Labrador and the island of Newfoundland, and extending to Newfoundland’s Avalon Peninsula. Once constructed, it will be one of the most robust transmission systems in the province, engineered to withstand the
N A LCO R ENERGY
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NALCOR EN E R G Y
harsh environmental and weather conditions experienced in this corner of the world. A 480km high voltage direct current marine transmission link is also being constructed as part of the overall Muskrat Falls Project. This will run between the island of Newfoundland and Nova Scotia and is being financed and constructed by Nova Scotia’s energy operator Emera Inc. For the first time in history, Mr. Bennett points out, this will create a new connection from the island of Newfoundland across to the North American power grid, not only improving the reliability of the province’s electricity system but also providing a channel for the exporting of surplus power and creating a valuable stream of income. Phase Two of the Lower Churchill Project, to be given full consideration after the completion of the Muskrat Falls Project, proposes to see the development of Gull Island and the creation of a generation station with the capacity to produce a further 2,250 MW. Following the development of Muskrat Falls, almost all of Newfoundland and Labrador’s domestic energy needs will be met through a clean, renewable energy source and will provide the province with a valuable powerproducing asset for more than a 100 years,
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N A LCO R ENERGY
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NALCOR EN E R G Y
“ŞA-RA Group “ŞA-RA Group had been awarded, has executed and delivered the “315kV HVAC Steel Supply” contract by Nalcor Energy for the Lower Churchill Project in early 2013. The scope included design, testing and manufacturing of five types of transmission line towers for two parallel transmission lines for Muskrat Falls facility and Churchill Falls. Clean energy is the key to leaving a clean world for future generations. The Lower Churchill project is a major project in the region featuring hydro power, a clear indication of Nalcor Energy’s dedication to preserving a clean environment. ŞA-RA is proud to assist Nalcor Energy by providing engineering and products within Nalcor’s scope of transmission of electricity.”
Mr. Bennett continues. “A large-scale project like brings significant economic as well as environmental benefits,”
he says. “In addition to those currently employed in the construction of the project and the training opportunities it has
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provided, there will also be some full-time jobs for the operational lifetime of the project. Employment and training has been given to those from the local community, including those from Aboriginal groups, and in terms of infrastructure building, while materials have been procured globally, we have also been acquiring services within the community – we have a supply chain that reaches from Canada to China and back.” Estimates are, in fact, that Phase One of the Lower Churchill Project will see a total $1.9 billion coming into Newfoundland and Labrador through various labour and business routes; on average, there will be around 1,500 direct jobs per year across more than 70 different occupations and the equivalent of 9,100 “person years” of direct employment, with a total of 23,300 “person years” of employment generated
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NALCOR EN E R G Y
by either direct, indirect or induced means. Direct means are defined as those including employment through engineering and construction activities, such as erecting transmission lines or operating heavy equipment on site, while indirect means are associated with materials, services and equipment purchased by the project (for
example, workers involved with fabrication of equipment at supplier locations). Induced means are those that occur in the services sector throughout the whole economy when direct and indirect income is spent. But, insists Mr Bennett, the benefits for Newfoundland and Labrador reach far beyond even these: “The key for us is that the Lower Churchill Project means
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long-term stable electricity rates for those living in our province and energy that is 98 per cent renewable for the foreseeable future,” he says. “We will be able to provide this not only for ourselves here in Newfoundland and Labrador but also for those in Nova Scotia. What we are doing here really is changing the energy landscape in Eastern Canada.”
N A LCO R ENERGY
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C AMECO
CAMECO
Environmental Preservation and Communal Progression
I
By: Sarah Louise Brooks
n 2009 Kazakhstan achieved the title of the world’s largest uranium producer, surpassing Canada. Still boasting the largest mine however, the McArthur River mine in Northern Saskatchewan, Canada is beginning a fight back. Significant increases in production are taking place with the opening this year of the new Cigar Lake mine. As a company, Cameco owns 50% of this huge new project. The company’s vision is one of clarity: ‘to bring multiple benefits of nuclear energy to the world.’ Their production is centred on Uranium. Founded in 1989 by merging both Saskatchewan Mining Development and Eldorado Nuclear Limited, Cameco today, now one of the world’s largest uranium producers. It boasts figures such as providing about 16% of the world’s total production of this material from mines mainly in Canada, as well as the US and Kazakhstan. Further than this, Cameco is a leading provider of nuclear fuel processing services, outlining a clear focus on providing the cleanest sources of modern electricity as it supplies much of the world’s reactor fleet with this fuel.
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C AM ECO
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PETERSEN PRODUCTS COMPANY Petersen Inflatable plugging solutions goes back before 1916 when George Petersen was asked to make an inflatable to block large diameter sewers in Milwaukee. Many decades of refinement to specialized systems allow our engineers and skilled technicians to develop unique systems for blocking ever-increasing sizes and pressures in pressurized pipelines. Petersen has incorporated advancements in material technology into products and manufacturing processes using a variety of advanced materials for specific chemical, temperature, and pressure requirements. The Cigar Lake Uranium Mine in Saskatchewan ultimately became a major beneficiary of Petersen expertise after witnessing a catastrophic flooding of a major mine chamber.
Pinnacle to Cameco’s successful production of mass uranium is the McArthur RiverKey Lake tandem operation. Cameco owns controlling portions of the world’s largest producing uranium mine, with a 70% share of the operation of McArthur River and 83% of the Key Lake production. Since the McArthur River production commenced, 269million lbs have been
produced, using mining techniques relevant to the ground conditions presented. These include the currently used raiseboring method and other mining methods that are in development, such as blasthole stoping and Boxhole boring. Further than this, projects such as the McArthur River Mine and Key Lake Mill and rated amongst the safest of mining operations in Canada. Cameco
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C AME CO
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C AM ECO
ensures that each operation has a systematic programme in place to help identify and alleviate potential risks. All of these programmes adhere to the international OHSAS 18001 model and have produced exceptional performances in regard to safety. In addition to rigorous safety procedures in place, Cameco also manages radiation risks. All facilities are physically designed to minimise the risk of exposure, and systematic monitoring of radiation in work areas aides in tracking of exposures of individual workers using a combination of monitoring devices and health testing. As a consequence, radiation exposures at McArthur River and Key Lake are far below the regulated limits. Versatility in an ever changing climate, both economically and in terms of landscape, is essential. One example of how Cameco evidences this quality is the Cigar Lake Project, which is where many of the company’s most recent accolades stem from. This particular venture boasts the world’s highest grade uranium mine. Located in northern Saskatchewan, the project has most recently made headlines for a rare production milestone; the surpassing of the 10 million mark for production pounds of uranium concentrate. Strides in innovation were necessary to make this milestone possible. Cameco, as the operator, developed a jetboring technique, which was specifically designed to tackle this challenging deposit with. This revolutionary process involves freezing the ore and adjacent rock in order to ensure that mining can proceed safely at Cigar Lake. The brine is then piped underground whilst being
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C AMECO
chilled at -40C as it reaches the deposit. Once the rock is ready, after approximately a year of circulating through large pipes at freezing temperatures, a mining machines creates the production tunnel by boring through the frozen rock. The tunnel is then entered, utilising the jet boring system as it drills a pilot hole through the orebody. Subsequently, inserted into the pilot hole is the jet boring nozzle and the process of boring through the rock using a highpressure jet of water commences. Finally, after further processes,
ore in a slurry form is pumped to the surface. Using this advanced method of mining, The Cigar Lake Project, which commenced in May this year, has ore processed 70km northeast at the McClean Lake mill. This mill utilises sulphuric acid and hydrogen peroxide leaching and a solvent extraction recovery process to extract and recover the uranium product from the ore. The mill’s facilities are currently under expansion, with a predicted completion for 2016. The progress includes some feed grades exceeding 25% uranium
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and output substantially higher than mill production levels. This growth indicates Cameco’s continual pursuit of progression, with The McClean Lake mill evidencing this further, now having achieved production of over 52 million pounds of uranium concentrate since it commenced in 1999. Upon completion, 24 million pounds of uranium per year are expected to be produced. As a result, 1,500 people are employed by the McArthur River-Key Lake tandem and over half of them are from northern Saskatchewan. To add, the Cigar
C AM ECO
Lake project employs 700 people, and over half of those employees are from Northern Saskatchewan, showing a direct impact these programmes have on the surrounding communities. Figures such as the one above, evidence Cameco’s clear devotion to positive communal impact. On the company’s website, they are quoted saying: ‘Working with northern communities and businesses creates collective successes.’ The company’s ethos therefore has a clear focus upon the community in which it operates. Cameco’s charitable
presence within the Northern Canadian communities can be seen to extend to its own employees. This year saw records broken in regards to employee giving campaigns, as employees’ generosity, matched by the company, saw $1.42 million raised for several charities across North America. Additionally, for the second consecutive year, the Cameco Cares Concert Series raised over $220,000 for a Saskatoon City Hospital Foundation. 100% of ticket proceedings went directly to supporting the local hospital.
Not only does Cameco take responsibility for the local communities but moreover, environmental conservation is integral to the company’s ethos. An example of this is the way Cameco monitors the surrounding environment to its projects. The McArthur River and Key Lake operations sample water, air, soil, plants and fish from numerous locations around the sites and test them to confirm that environmental protection systems are consistently efficient. Additionally, with particular focus on Saskatchewan, Cameco
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C AMECO
monitors the downstream of its operations to ensure there are no cumulative effects on the regional watershed; no significant impact on the surrounding environment has been found. Employees and environmental concerns have also coincided this year with nearly 200 Cameco employees taking part in Saskatoon this April with the annual Earth Day Clean up. This clean-up was
however overshadowed by Cameco’s efforts during the summer’s wildfires. The company implemented additional measures to protect the health and safety of people and the environment at its facilities by assisting northern communities in fighting the fires and supporting evacuees. As well as preserving the present, Cameco is a company with a forward thinking attitude.
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Engaging youth is pinnacle to the future success of the mining industry. Cameco takes the responsibility for inspiring young minds seriously; bringing Canadian Olympians Christine Sinclair and Kaylyn Kyle to the Northern Sask to speak to over 400 students as recently as October. In addition, Cameco contributes to the community through investment programmes. Created from elders and northern
C AM ECO
leaders, in which the focal aim is placed upon youth and their relationship to education, health and sport. It again denotes the close linked Cameco has with the surrounding community. Economically, the company has effected the community in an extremely positive direction. As previously mentioned, Cameco employs a high number of locals. This success can be partially held responsible of the scholarships it offers. For example, a five-year scholarship agreement between Cameco and Gabriel Dumont Institute will provide $65,000 worth of scholarships to Metis students from northern Saskatchewan studying subjects in relation to business administration, trades, commerce and computer
science. This implies strongly that Cameco undertakes a hands on approach when engaging future generations in taking an active role in community progression. Utilising education, Cameco has committed a further $50,000 over five years, emphasising the company’s continual devotion to developing the lives of those in effected communities. The company contributes economically in further substantial ways. In the previous year, the uranium mining industry spent approximately $382 million on wages and employee benefits; of this $119 was paid to residents of northern Saskatchewan. Additionally, the value of goods and services purchased in 2014 was $1.12 billion. Approximately 76% ($847 million) of this amount
went to businesses based in Saskatchewan and 39% ($439 million) went to businesses based in northern Saskatchewan. Taxes and royalties in this area also benefitted as $83.2 million were paid to the province of Saskatchewan. With the hard work of Canadian mining companies, Canada’s economy looks to gain strength with new projects in the pipeline; proving Canada is still an exciting proposition in the ever uncertain mining industry. With regards to uranium, Cameco’s contribution to the current increases in production will no doubt result in them regaining the accolade of the world’s largest uranium producer once more. Canadian communities nevertheless benefit from the presence of Cameco.
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BC HYDRO
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B C HYDRO
BC HYDRO Site C & John Hart Generating Station By: Djamil Benmehidi
T
he recent conclusion of UN climate talks in Paris, where world leaders from 196 countries, including Presidents Obama, Putin and Jinping, united to denounce climate change as the 21st century’s greatest existential challenge, has been lauded as a “historic turning point,” in the battle against global warming.
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IN MEMORY OF PAUL VELTMEYER Subject: How it all started
With a walk in the woods. Note “Shayne focused on the spruce….. and Paul noting that it was the only nice one…. “Paul Veltmeyer” - November 5th, 2015
R.I.P 1964-2015 A visionary man with a dream to build a dam that future generations would proudly remember
I felt Paul liked to walk in the bush a lot because that was where he found peace, especially where the phone didn’t ring and he could enjoy what the people that were doing the job had to say. “Paul Paquette” Paul Paquette and sons Contracting Ltd. The man who gave a dam.
“Rudy Paquette” Paul Paquette and sons Contracting Ltd..
“A Gentleman of his word” - A man that spent his time to find excellent and quality in a project that has his passion. The little things he would always remind us of “Building a legacy something we can talk with our children and grandchildren”. He would always joke with me every time we spotted a spruce tree. “Did you see all that nice spruce there must be at least ten loads there” “Shayne Waldie” Hi-Sky Enterprises Ltd. I met a man who was proud of what he was trying to accomplish, to help build a dam using local people along the way. Treating them with the utmost respect and fairness. That man was Paul Veltmeyer; who I am proud to have met and helped in the building of the site C dam. To Paul’s family: The last email I received from Paul was condolences of the passing of my Father, he told me “Family is everything, the rest of it is not” From, “The Chetwynd Maia” as he jokingly like to call us. “Dwan Young and the site C crew” Young’s Mills (1980) Ltd. Paul was a man who’s dream was to be a part of building a legacy project . A down to earth, Sugarloaf Cowboy that joking sill liked to rival my own father’s days as a cowboy from Hook’s ranch, who became a forester with a dream to build a dam. His vision was intoxicating, his commitment was unshakable ad his ability to include his teams opinions, experiences and local knowledge to find efficient and effective solutions to project problems were unparalleled. He was both a consummate professional and a genuine, caring person . Referred to as site C — always remembered as site V. “T.W. (Todd Powell)” Construction Manager Paul Paquette and sons Contracting Ltd.. Paul orchestrated the opportunities for us to shine as a group and as individuals. Encouraging us and challenging us, and humbly standing in the background when recognition or praise was given. He was a man of his word, honourable, and loyal. Proud of his family, his friends and his crew. Paul, will be missed, but he will forever be the foundation on which site C is built. “Kelly Wilson” Onsite safety Coordinator, Hi-Sky Eterprises Ltd.
A visionary man with a dream “A very proud Contract Manager watching the Chetwynd Mafioso make History” - Paul Veltmeyer – July 27th, 2015
2008 Chetwynd Business of the Year
Paul Paquette & Son’s Contracting PO Box 951, Chetwynd, BC V0C 1J0 • PH: (250) 788-1845 FX: (250) 788-1877 2008 BC Aboriginal Outstanding Achievement Award
BC HYDRO
Of course the rousing rhetoric and back slapping by world leaders and summit delegates was the easy bit; now comes the challenge of actually implementing the changes necessary to meet the highly ambitious emissions over the coming century. But while the effort will be a herculean one, to the tune of $US16.5 trillion over the coming 15 years, the shift towards cleaner industry and energy production will be easier to stomach for some than others. In particular, some nations, like Canada – a country which is already a renewable energy world leader – the transition will be less grievous. Canada’s geography and climate, particularly in the mountainous hinterland of British Columbia and Newfoundland & Labrador, has proved perfect for the development of what is now only the second-largest and most advanced hydropower system in the world behind that of China. But for all Canada’s impressive 100-year hydropower credentials, a lack of investment and new development since the latter stages of the 20th century means that many of its dams, generating stations and other infrastructure are now somewhat outdated and inefficient – something which the country’s hydro sector is now taking grand steps to address. And there are no greater, grander steps being taken than those of British Columbia’s BC Hydro, which is currently embarking on a number of vast projects, including the immense $CDA8.335 billion Site C mega dam; a feat of construction which will be one of the larger infrastructure projects built in British Columbia, and the dismantling and replacement of the 70-year old John Hart Generating Station; a $US1.1 billion project which yet again is one of
the largest projects to have been undertaken in the province since the 1980’s. Quite simply, the sheer magnitude of the Site C Project is, to say the least, immense. Once completed, it will be the third large hydroelectric generating station and dam on the Peace River, in northeast BC, based just 7km from the community of Fort St. John. For the sake of scale, the earth filled dam will be approximately 60m high and 1050m wide, which would create a long, narrow reservoir that will stretch back approximately 83km, and it is anticipated that the new reservoir will on average double to triple the present width of the Peace River. “Yes, it’s a big, big project,” Dave Conway, Community Relations Manager for the Site C Project with BC Hydro told us. “The dam and generating station will have 6 generators and turbines, each of which will generate 183MW, for 1,100MW of instantaneous capacity; in total this would produce approximately 5,100GWh of energy per year – enough to power the equivalent of 450,000 homes. It’ll also have a dualpowered spillway and a passive auxiliary spillway.” While Site C is lesser in size than the W.A.C Bennett dam, which sits 100km upstream, it will more than hold its own in terms of its energy generation capabilities. A big part of the reason behind the placement of Site C is down to the fact that the project will utilise the water from the Williston Reservoir, which is impounded by the W.A.C Bennett dam for a third time, meaning that whilst Site C will have a reservoir that is 5% of the reservoir area of the Williston Reservoir, it will generate approximately 35% of the energy produced by the far larger W.A.C
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Quite simply, the sheer magnitude of the Site C Project is, to say the least, immense
B C HYDRO
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Bennett dam. Or in Conway’s words, “the reservoir is about 1/20th of the size of the W.A.C reservoir but you get 1/3 of the electrical generating capacity and energy that you get from the W.A.C Bennett dam. It’s a big facility.” As is to be expected for a project of such scale, construction of the Site C Project – which began this summer – will be an arduous 9-year task, although Conway is thus far satisfied with the work so far. “Things are progressing well, most of the work at the moment is focused on the dam site location - we’re putting out procurements as we go along at the moment. We began construction on the 27th July and have now passed the 100 day mark, and now most of the
work that’s going on is site prep work. We’ve been doing clearing on the north bank of the river, which is the side the city of Fort St. John is on. Primarily, there has been lots of tree clearing, earth removal and earth stabilisation – so far we’ve removed around 13,000 cubic metres of timber, and 1million cubic metres of material related to the site preparation. And there’s a workers site accommodation lodge that’s in the process of being constructed. That lodge will be available to accommodate 1,600 to 2,000 workers during the peak construction period in years 5 and 6 of the project. We’ve also been doing work on public access roads leading to the site, which are being
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upgraded and widened, and they’re being paved. The construction of a temporary construction bridge to get from north to south bank has also been necessary. In short, it’s been a busy 6-months, but that isn’t to say that the Site C venture hasn’t been without its hiccups. Again, as far as infrastructure building projects go, Site C is a big one; in light of this it’s inevitable that BC Hydro has had to negotiate numerous regulatory hurdles. There has also been some opposition to the project from various quarters by those who feel that the $CDA 8.335 billion Site C to be an unnecessary project, bearing in mind that BC Hydro’s existing energy capacity is already buoyant; something which Dave
B C HYDRO
Conway refutes: “There’s always these costs and need for rejuvenation because otherwise you just don’t have the capacity. Site C is a project which will add new capacity, and will allow us to add other intermittent sources of energy, like wind and micro-hydro sources, and solar, but it will also help us meet an expected growing load demand of approximately 40% in BC in the next 20 years, due to an anticipated 1 million rise in population over the next 20 years, according to Statistics Canada and economic development. At the present time the company has a limited amount of surplus capacity and energy. Depending on what the load demand is like over the next 20 years it will probably take us to the time that Site C is completed and operational. But it might be a shorter period, depending on if that load demand picks up. While the extra capacity isn’t needed now, it’ll be needed according to our 20 year load forecast, so it’s being built with that 20 year load demand forecast in mind. This is all with the future in mind, that’s what the Site C Project is being built for.” Similarly, BC Hydro’s second large-scale hydropower infrastructure project, while not as vast as the Site C, is also one of the largest undertakings in British Columbia in recent times. The replacement of the 68-year old John Hart Generating Station, based within the City of Campbell River, unlike Site C, is geared less towards boosting hydropower capacity; rather, it is, instead, a project which will not only use modern infrastructure to give the site a much-needed longer lease of life, but also help improve Elk Falls Provincial Park; an area renowned for its natural beauty.
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B C HYDRO
seeing as the site is based near the Cascadia Subduction zone, which makes the area susceptible to - Innovation earthquakes, reliability; its 68 years - Dedication old, and is now in poor condition, and the third is protecting - Excellence downstream fish habitat. About 95% of the Campbell River flow comes from the generating station, and there are six turbines in there, so if you have multiple problems Through continuous with the turbines, the river flow innovation and dedication will decrease quickly; this can have to excellence, our work has potential impacts on downstream become a global reference fish habitat, particularly salmon.” for the construction of all After weighing up its types of complex civil and options for the John Hart industrial projects. facility, BC Hydro opted for ACCIONA Infrastructure replacement over rehabilitation Canada Inc. is a whollyor decommissioning. With the owned Canadian understanding that the existing subsidiary of ACCIONA station needs to continue to S.A., which stands as operate, BC Hydro awarded a leader and trusted the contract in early 2014 to partner in the fields SNC-Lavalin and their team to design, construct and maintain of infrastructure the facility for 15 years. There development, renewable was a requirement for a new energy (including partner.hydroelectric dams), water, water conveyance tunnel to be underground, though SNC-Lavalin and services. ACCCIONA went further with their innovative Canada w's top Infrastructure design by putting the generating has been operating station underground as well. in Canada since 2001 s. The old 1.8km penstocks and and headquartered in above ground powerhouse are Vancouver since 2006, with in the process of being replaced offices in Calgary, Toronto, by a tunnel that leads to the and Montreal. underground generating station, www.acciona.ca where a water bypass facility will Twitter: @acciona_CA also be housed. Stephen continued: “It’s all being and acclaimed infrastructure projects. built in bedrock, so seismically “It’s a facility which was built we face them with confidence its very strong, and obviously in the 1940s and is nearly 70 capacity forold, innovation. it’s a new powerhouse so it’ll years so it was necessary be very reliable. With the new to take steps to extend the life water bypass facility as part of of the facility,” Stephen Watson, the powerhouse, should one of BC Hydro’s communication units go off-line, water flows can lead for the project, told us. He be quickly redirected through the continued: “Regarding the John bypass and provide downstream Hart Generating Station project, BC Hydro had three project drivers: river flow continuity.” O N to help • mitigate E X Cany E seismic L L Erisk, N C E “In short, it’s seismically strong,
ACCIONA:
environmentally beneficial, and reliable. It’s expected to cost BC Hydro in the region of $US1.1 billion, and with work having started about 18 months ago, it will be completed around the end of 2018. It’s a very different project compared to Site C, which is more about boosting power generation capacity. The John Hart project is about safety and the environment, although we will receive a 9.5% boost in annual power output because we’re using modern equipment, without changing the water flows at all. So we go from powering about 74,000 homes to about 80,000 homes with a 132MW capacity; again, it’s quite small comparatively to the Site C Project.” An unexpected but not insignificant outcome from the John Hart project is that it will carry benefits for the local community too. Stephen Watson said: “We’ve constructed a new paved access road and 80-spot parking lot on our property, and a new wheel-chair accessible trail, that will be the gateway into the park. Between this significant infrastructure, a $150,000 donation to the Campbell River Rotary Club, and sharing our geotechnical research on rock in the area and our environmental assessment information with the Rotary Club, we enabled them to build the Elk Falls suspension bridge, which opened in May. It is projected that there will be up to 200,000 users of the bridge each year, which is huge. It’s huge economically, but also from a local community point of view too. The suspension bridge across the canyon and 25 metre high falls is a big attraction and it’s good for tourism; we’re delighted that we were able to work with the local community and find these win-wins.”
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