Waterpower Development on the Vermilion River A Presentation to the City of Greater Sudbury September 23, 2010
By Mark Holmes, President Marlyn Consulting, in Association with Ontario 1713399 and 1713400 and in partnership with Xeneca Power Development Inc.
Building a greener Ontario through clean, renewable energy
Reason for Meeting
• To provide to City of Sudbury an overview of Vermilion River green energy projects and project proponents.
• To provide the City with an overview of Ontario’s green electricity development policies and objectives.
• To provide Project history and status updates.
• Outline next steps and timelines in Project development.
Xeneca Power Development
Patrick Gillette, BA, MES, MPA, President/COO
President & Owner - Xeneca Power Development Inc.
$400 million Energy Project Financing
1000 MW of Project Development experience
Co-founder Canadian Renewable Energy Corp. (CREC)
Uwe Roeper, M.Sc., P.Eng, CEO
President - Ortech Energy, Ortech Environmental
Co-founder of CREC
Xeneca Power Development
Mark Holmes, VP Corporate Affairs
Over 15 years resource use and management experience
Six years energy sector consulting
Extensive resource use experience in forestry, mining and wildlife conservation
25 years Regulatory, Government Relations, Communications background
Edmond Laratta, M.Eng., P.Eng., Manager , Environmental Affairs Over 35 years of diverse environmental assessment, regulation compliance and program implementation practice
Extensive background of training including: risk management, waterpower geology, groundwater contamination transport and hazardous waste management
Xeneca Power Development Well capitalized and experienced partners and investors in the renewable energy field. Business run by an experienced management team with a proven record of success.
Xeneca Structure Firelight Infrastructure Partners OP Trust Dundee Realty Corporation
Xeneca LP
Xeneca’s Senior Management Uwe Roeper Patrick Gillette Mark Holmes Arnold Chan
Directors / Executive Team Jason Lester, COO Dundee Realty Corporation / Director Xeneca Gavin Ingram, OPTrust / Director Xeneca Uwe Roeper, CEO / Director Xeneca Patrick Gillette, President / COO / Director Xeneca
XENECA Provincial Profile
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130 MW of Ontario projects submitted to the Ontario Power Authority’s Feed-In Tariff (FIT) program.
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72 MW representing 19 projects, including four projects on the Vermilion and one of the Wahnapitae near Kilarney, have been approved for FIT contracts. Another 14 projects are awaiting assessment for connection to the electricity grid.
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With FIT Contract there is a five year window for development. Projects need to move quickly and concurrently through several approval processes.
Why waterpower?
Currently, Ontario has a surplus of base load power, but lacks peaking power production, and, as such, efforts are being made to increase availability of “stored power.� Waterpower is an excellent means to balance the supply mix. Water can be stored behind dams in reservoirs, or simply redirected when needed to generate power, and, unlike fossil fuels and biomass, there are no emissions.
Current Public Policy
• Government and Power Authorities recognize need for local generation which is strongly encouraged via public policy. • Green Energy Act (GEA) dovetails with Ontario Power Authority power purchase agreements and MOE’s Environmental Approval process. • MNR revamping its site release policy to merge with GEA.
Current Public Policy – cont.
• Federal policy also strongly encourages the development of green, renewable energy. • Helps achieve goal of reducing atmospheric emissions. • Several Federal programs including Green Energy Fund in place to facilitate green energy development.
Why the Vermilion River?
Long distance transmission, and infrastructure is costly to build and maintain. Power produced and used locally is more economical and environmentally sound. Vermilion River has good flow regimes and adequate head‌ the two main factors in making waterpower development practical and economical.
Impacts on Sudbury and area? • Hydrology and topography show the Vermilion sites have good generation potential with a total installed capacity of about 11.8 MW. • Sites known as Wabageshik, At Soo Crossing, Cascade Falls and McPherson Falls and are upstream from existing Vale Inco developments at Wabageshik Lake. • Supports development of renewable energy. Vermilion River upstream projects
Economic Impacts
Approximate economic activity (direct) to build in Ontario is $5 million per MW. Direct job creation (construction only) 10,000 person hours per MW. Indirect jobs multiply by 1.5. Local/Regional economic boost of $2.5 million per MW.
Economic Impacts – cont.
Broad based economic stimulus (engineering, consulting, legal, goods & services). First Nations participation incentives. Revenue to Ontario (GRC) downloads to municipalities. City of Greater Sudbury may want to open discussion with Ministry of Municipal Affairs and Housing. Provincial and Federal Income taxes.
May assist mining companies by providing more reliable power with some potential cost savings.
The Vermilion River Projects
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Work progressing since 2008.
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Potential for about just over 11 MW.
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Transmission lines connecting at Larchwood and/or Espanola TS .
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More economic opportunity associated with construction of transmission.
Project Status
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Land ownership determined and agreements with mining companies, City of Greater Sudbury are being sought.
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Engineering review of hydrology.
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Environmental field studies have begun.
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LiDAR digital aerial survey completed and accurate within 2-4 cm.
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FIT Contract Awarded April 8, 2010.
Outlet Kap Lake
Project Status - cont.
• First Nations discussions initiated with some Communities. MNR identifies and provides notification, proponent duty to consult and work toward B 2 B arrangements. • Stakeholder consultation under way with newspaper advertisements of Notice of Commencement. • Public Information sessions being organized.
At Soo Crossing Project
• Existing rapids/falls on Vermilion River ±70 m upstream of existing railway bridge, ±2.6 km downstream of Highway 17. • Concrete spillway dam and fill embankments Penstock and powerhouse. • ±1.5 km new access road to existing Hwy 55. • Xeneca requests City input and support.
Cascade Falls Project
• Existing rapids/falls on Vermilion River ±400 m downstream of hydro corridor, ±4.4 km upstream of Highway 17. • Concrete spillway dam, intake channel and Powerhouse, transformer station. • ±1.5 km new access road to existing Hwy 55. • Xeneca requests City input and support.
McPherson Falls Project
• Existing rapids/falls on Vermilion River ±8 km upstream of Highway 17. • Concrete spillway dam Intake channel and Powerhouse, transformer station. • ±3.5 km new access road to existing local road. • Xeneca requests City input and support.
Wabageshik Project
• Existing rapids/falls on Vermilion River approximately ±400 m downstream of existing road, approximately ±600 m downstream of Wabageshik Lake. • Concrete spillway dam, Powerhouse, transformer station, ±500 m new access road to existing local road. • Xeneca requests City input and support.
Next Steps
• Agency coordination meetings,Q4, 2010 • Data collection Q2-Q4, 2010 and possible Q1 and Q2, 2011 • Public information centres Q4, 2010 • Addressing agency input Q1-Q2, 2011 • EA completion Q2-Q3, 2011 • Equipment order Q4, 2011 • Approvals and permitting Q3, 2011-Q3, 2012 • Detail design Q1–Q4, 2012 • Construction Q1, 2013–Q4, 2014 • Testing and commissioning 2015
Thank You Questions‌.. Discussion