TC Energy signs deal with DND to site massive energy-storage facility
North American energy giant TC Energy Corporation has announced that it has reached an agreement with the Department of National Defence (DND) to build what would be Ontario’s largest hydro-energy storage project on federal lands.
The Ontario Pumped Storage Project is proposed for construction on DND’s 4th Canadian Division Training Centre property, which is located in Meaford, near Owen Sound.
A 1,000 megawatts, the facility would become Ontario’s largest emissions-free energy storage system. It would optimize the province’s electricity system and generate more than $12 billion in energy cost benefits, while delivering more than $250 million in annual savings to consumers.
Once operating, it would provide emission-free electricity for the province, while reducing greenhouse gas emissions by an expected 490,000 tonnes – the equivalent of removing 150,000 cars from Ontario roads.
“Energy storage is key to unlocking Canada’s transition to a low-carbon economy, while reducing system costs and delivering private sector economic stimulus,” said TC Energy president and CEO François Poirier. “As a complement to TC Energy’s ownership in Bruce Power, this project provides a platform for future growth and diversification in our power and storage business.”
The project is estimated to create approximately 1,000 jobs during eight years of development and construction, and 2,800 spin-off jobs regionally.
That’s great news, say construction stakeholders.
“As Canada transitions towards net zero, projects like this will create job opportunities for journeypersons and apprentices alike, which is vital for our economic recovery,” said Sean Strickland, executive director of Canada’s Building Trades Unions.
“Infrastructure projects like this that provide long-term employment and strong middle-class wages are at the heart of the Canadian economy. With the current economic downturn as a result of the COVID-19 virus, support for infrastructure projects to begin repairing our economy has never been more important,” added LiUNA Local 183 business manager Jack Oliveira.
TC Energy has pledged to consult with the Saugeen Ojibway Nation and other Indigenous Rightsholders and communities, and engage with local communities and other interested stakeholders to assess potential impacts and economic benefits as it advances the next phase of project development, which includes provincial and federal environmental and impact assessments.
Construction is not assured. The project is yet to receive approval from TC Energy’s board of directors, nor regulatory approval, nor assurances from DND and the federal government that the location or its construction will not impact military activities and training.
The largest battery project under construction in Ontario at the moment is the 250MW/1,000MWh Onedia Energy Storage facility. That project is being led by a joint venture between developer NRStor and Six Nations of the Grand River Development Corporation, with construction set to start in the fall.
The Canada Infrastructure Bank invested $170 million in that project in May.
Featured image: TC Energy has a 48 percent ownership stake in Bruce Power, one of the world’s largest nuclear generating facilities. (TC Energy)