Biomass plant planned for unused paper mill

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An unused paper mill is set to become Scotlands latest biomass project as the Brusselsheadquartered, European division of International Paper Company has announced plans to build a £60 million US $91 million greenenergy centre.

The energy project will entail construction of a 17megawatt MW biomassfired plant at the former Inverurie paper mill in Aberdeenshire, which was shut down by International Paper in March 2009, resulting in the loss of 371 jobs. The plant will also host an integrated woodpelleting plant that can process 250,000 tonnes of locally sourced timber every year.

The news comes as the UK government announced that it will not increase financial support under the Renewables Obligation Certificate ROC scheme for the cofiring of biomass and energy crops with combined heat and power CHP. Following a sixweek consultation, the Department of Energy and Climate Change DECC has concluded that the cofiring of biomass with CHP will remain at 1.5 ROCs per megawatthour.

International Paper will work with Integrated Energy Systems International, a consortium of companies that will be responsible for building the power and pelleting plants. Detailed plans will be submitted in the coming months, with the aim of getting full planning permission before the end of the year. The pelleting plant can be built within 10 months, while 24 months have been allocated for construction of the biomassfired plant.

We are pleased to have reached this important stage in the proposed reindustrialization of our former mill site that has the potential to create new manufacturing jobs in the locality, said Eric Chartrain, International Papers vice president of European papers. Our agreement suggests that detailed plans will be presented to the appropriate authorities, seeking a determination by the end of the year.

Scotlands First Minister Alex Salmond welcomed the development. It was a great pleasure to be able to sign this agreement. I pay tribute to the months of hard work which has gone on behind the scenes between International Paper and their partners in the reindustrialization project, which has taken us to this point.

The mill closure, coming as it did in the deepest recession for nearly 70 years, could hardly have come at a worse time. The aim has always been to put the mill site back to an industrial use, and today marks a key milestone in that journey. With the building of a woodpelleting plant and the commitment to install over 30 MW of multifuel biomass generating power, at least 50 permanent jobs will be created onsite, with a further 100 jobs created in support of the ventures offsite.

In February, RWE npower renewables, part of German energy company RWE AG awarded the key contracts for Scotlands largest proposed biomass power plant, the £200 million US $304 million CHP plant at Markinch in Fife. Metso and Norways Aker Solutions will be responsible for the 155MW facility, which will up and running by the end of 2012.

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EV Sales Still Behind Gas Cars

U.S. EV and Hybrid Sales 2024 show slower adoption versus gas-powered cars, as charging infrastructure gaps, range anxiety, higher upfront costs, and affordability concerns persist despite incentives, battery tech advances, and expanding fast-charging networks.

 

Key Points

They represent 10-15% of U.S. car sales, lagging gas models due to costs, charging gaps, range anxiety, and access.

✅ 10-15% of U.S. auto sales; gas cars dominate

✅ Barriers: upfront cost, limited charging, range anxiety

✅ Incentives, battery tech, and networks may boost adoption

 

Sales of hybrid and electric vehicles (EVs) in the U.S. are continuing to trail behind traditional gas-powered vehicles in 2024, despite significant advancements in automotive technology and growing public awareness of environmental concerns. While the electric vehicle market has seen steady growth and recent sales momentum over the past few years, the gap between EVs and gasoline-powered cars remains wide.

In 2024, hybrid and electric vehicles are projected to account for roughly 10-15% of total car sales in the U.S., a figure that, though significant, still lags far behind the sales of gas-powered vehicles and follows a Q1 2024 EV market share dip in the U.S., according to recent data. Analysts point to several factors contributing to this slower adoption rate, including higher upfront costs, limited charging infrastructure, and consumer concerns over range anxiety. Additionally, while EVs and hybrids offer lower lifetime operating costs, the initial price difference remains a hurdle for many prospective buyers.

One of the key challenges for EV sales continues to be the perception of cost, even as analyses show they can be better for the planet and often your budget over time. While federal and state incentives have made EVs more affordable, especially for lower-income buyers, the price tag for many electric models remains steep, particularly for higher-end vehicles. Even with government rebates, EVs can still be priced higher than their gasoline counterparts, making them less accessible for middle-class consumers. Many potential buyers are also hesitant to make the switch, unsure if the long-term savings will outweigh the initial investment.

Another critical factor is the limited charging infrastructure in many parts of the country. Though major cities have seen significant improvements in charging stations, rural areas and smaller towns still lack the necessary infrastructure to support widespread EV use. This uneven distribution of charging stations leads to concerns about being stranded in areas without access to fast-charging options. While automakers are working on expanding charging networks, the pace of this development is slow, and EVs won't go mainstream until key problems are fixed according to industry leaders.

Range anxiety is also a continuing issue, despite improvements in battery technology. Though newer electric vehicles can go further on a single charge than ever before, the range of many EVs still doesn't meet the expectations of some drivers, particularly those who regularly take long road trips or live in rural areas. The longer charging times and the necessity of planning routes around charging stations add to the hesitation, especially when gasoline-powered vehicles provide greater convenience and flexibility.

The shift toward EVs is further hindered by the continued dominance of gas-powered cars in the market. Gasoline vehicles benefit from decades of development, an extensive fueling infrastructure, and familiarity with the technology. For many consumers, the convenience, affordability, and ease of use of gas-powered vehicles still outweigh the benefits of switching to an electric alternative. Additionally, with fluctuating fuel prices, many drivers continue to find gas-powered cars relatively cost-effective in terms of daily commuting, especially when compared to the current costs of EV ownership.

Despite these challenges, there is hope for a future shift. The federal government’s push for stricter emissions regulations and tax incentives continues to fuel growth in the electric vehicle market. As automakers ramp up production and more affordable options become available, EV sales are expected to increase in the coming years. Companies like Tesla, Ford, whose hybrids are getting a boost, and General Motors are leading the charge, while new manufacturers like Rivian and Lucid Motors are offering alternatives to traditional gasoline vehicles.

Furthermore, the development of new technologies, such as solid-state batteries and faster charging systems, could help alleviate some of the current drawbacks of electric vehicles. If these advancements reach mass-market production in the next few years, they could help make EVs a more attractive and practical option for consumers, aligning with within-a-decade adoption forecasts from some industry observers.

In conclusion, while hybrid and electric vehicles are growing in popularity, gas-powered vehicles continue to dominate the U.S. car market in 2024. Challenges such as high upfront costs, limited charging infrastructure, and concerns about range persist, making it difficult for many consumers to make the switch to electric even as they ask if it's time to buy an EV in 2024. However, with continued investment in technology and infrastructure, the gap between EVs and gas-powered vehicles could narrow in the years to come.

 

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More red ink at Manitoba Hydro as need for new power generation looms

Manitoba NDP Energy Financing Strategy outlines public ownership of renewables, halts private wind farms, stabilizes hydroelectric rates, and addresses Manitoba Hydro deficits amid drought, export revenue declines, and rising demand for grid reliability.

 

Key Points

A plan to fund public renewables, pause private wind, and stabilize Manitoba Hydro rates, improving utility finances.

✅ Public ownership favored over private wind contracts

✅ Focus on rate freeze and Manitoba Hydro debt management

✅ Addresses drought impacts, export revenue declines, rising demand

 

Manitoba's NDP administration has declared its intention to formulate a strategy for financing new energy ventures, following a decision to halt the development of additional private-sector wind farms and to extend a pause on new cryptocurrency connections amid grid pressures. This plan will accompany efforts to stabilize hydroelectric rates and manage the financial obligations of the province's state-operated energy company.

Finance Minister Adrien Sala, overseeing Manitoba Hydro, shared these insights during a legislative committee meeting on Thursday, emphasizing the government's desire for future energy expansions to remain under public ownership, even as Ontario moves to reintroduce renewable energy projects after prior cancellations, and expressing trust in Manitoba Hydro's governance to realize these goals.

This announcement was concurrent with Manitoba Hydro unveiling increased financial losses in its latest quarterly report. The utility anticipates a $190-million deficit for the fiscal year ending in March, marking a $29 million increase from its previous forecast and a significant deviation from an initial $450 million profit expectation announced last spring. Contributing factors to this financial downturn include reduced hydroelectric power generation due to drought conditions, diminished export revenues, and a mild fall season impacting heating demand.

The recent financial update aligns with a period of significant changes at Manitoba Hydro, initiated by the NDP government's board overhaul following its victory over the former Progressive Conservative administration in the October 3 election, and comes as wind projects are scrapped in Alberta across the broader Canadian energy landscape.

Subsequently, the NDP-aligned board discharged CEO Jay Grewal, who had advocated for integrating wind energy from third-party sources, citing competitive wind power trends, to promptly address the province's escalating energy requirements. Grewal's approach, though not unprecedented, sought to offer a quicker, more cost-efficient alternative to constructing new Manitoba Hydro dams, highlighting an imminent energy production shortfall projected for as early as 2029.

The opposition Progressive Conservatives have criticized the NDP for dismissing the wind power initiative without presenting an alternate solution, warning about costly cancellation fees seen in Ontario when projects are halted, and emphasizing the urgency of addressing the predicted energy gap.

In response, Sala reassured that the government is in the early stages of policy formulation, reflecting broader electricity policy debates in Ontario about how to fix the power system, and criticized the previous administration for its inaction on enhancing generation capacity during its tenure.

Manitoba Hydro has named Hal Turner as the acting CEO while it searches for Grewal's successor, following controversies such as Solar Energy Program mismanagement raised by a private developer. Turner informed the committee that the utility is still deliberating on its approach to new energy production and is exploring ways to curb rising demand.

Expressing optimism about collaborating with the new board, Turner is confident in finding a viable strategy to fulfill Manitoba's energy needs in a safe and affordable manner.

Additionally, the NDP's campaign pledge to freeze consumer rates for a year remains a priority, with Sala committing to implement this freeze before the next provincial election slated for 2027.

 

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Hydro One stock has too much political risk to recommend, Industrial Alliance says

Hydro One Avista merger faces regulatory scrutiny in Washington, Oregon, and Idaho, as political risk outweighs defensive utilities fundamentals like stable cash flow, rate base growth, EPS outlook, and a near 5% dividend yield.

 

Key Points

A planned Hydro One-Avista acquisition awaiting key state approvals amid elevated political and regulatory risk.

✅ Hold rating, $24 price target, 28.1% implied return

✅ EPS forecast: $1.27 in 2018; $1.38 in 2019

✅ Defensive utility: stable cash flow, 4-6% rate base growth

 

A seemingly positive development for Hydro One is overshadowed by ongoing political and regulatory risk, as seen after the CEO and board ouster, Industrial Alliance Securities analyst Jeremy Rosenfield says.

On October 4, staff from the Washington Utilities and Transportation Commission filed updated testimony in support of the merger of Hydro One and natural gas distributor Avista, which had previously received U.S. antitrust clearance from federal authorities.

The merger, which was announced in July of 2017 has received the green light from federal and key states, with Washington, Oregon and Idaho being exceptions, though the companies would later seek reconsideration from U.S. regulators in the process.

But Rosenfield says even though decisions from Oregon and Idaho are expected by December, there are still too many unknowns about Hydro One to recommend investors jump into the stock.

 

Hydro One stock defensive but risky

“We continue to view Hydro One as a fundamentally defensive investment, underpinned by (1) stable earnings and cash flows from its regulated utility businesses (2) healthy organic rate base and earning growth (4-6%/year through 2022) and (3) an attractive dividend (~5% yield, 70-80% target payout),” the analyst says. “In the meantime, and ahead of key regulatory approvals in the AVA transaction, we continue to see heightened political/regulatory risk as an overhand on the stock, outweighing Hydro One’s fundamentals in the near term.”

In a research update to clients today, Rosenfield maintained his “Hold” rating and one year price target of $24.00 on Hydro One, implying a return of 28.1 per cent at the time of publication.

Rosenfield thinks Hydro One will generate EPS of $1.27 per share in fiscal 2018, even though its Q2 profit plunged 23% as electricity revenue fell. He expects that number will improve to EPS of $1.38 a share the following year.

 

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B.C. Hydro misled regulator: report

BC Hydro SAP Oversight Report assesses B.C. Utilities Commission findings on misleading testimony, governance failures, public funds oversight, IT project risk, compliance gaps, audit controls, ratepayer impacts, and regulatory accountability in major enterprise software decisions.

 

Key Points

A summary of BCUC findings on BC Hydro's SAP IT project oversight, governance lapses, and regulatory compliance.

✅ BCUC probed testimony, cost overruns, and governance failures

✅ Project split to avoid scrutiny; incomplete records and late corrections

✅ Reforms pledged: stronger business cases, compliance, audit controls

 

B.C. Hydro misled the province’s independent regulator about an expensive technology program, thereby avoiding scrutiny on how it spent millions of dollars in public money, according to a report by the B.C. Utilities Commission.

The Crown power corporation gave inaccurate testimony to regulators about the software it had chosen, called SAP, for an information technology project that has cost $197 million, said the report.

“The way the SAP decision was made prevented its appropriate scrutiny by B.C. Hydro’s board of directors and the BCUC, reflecting governance risks seen in Manitoba Hydro board changes in other jurisdictions,” the commission found.

“B.C. Hydro’s CEO and CFO and its (audit and risk management board committee) members did not exhibit good business judgment when reviewing and approving the SAP decision without an expenditure approval or business case, highlighting how board upheaval at Hydro One can carry market consequences.”

The report was the result of a complaint made in 2016 by then-opposition NDP MLA Adrian Dix, who alleged B.C. Hydro lied to the regulatory commission to try to get approval for a risky IT project in 2008 that then went over budget and resulted in the firing of Hydro’s chief information officer.

The commission spent two years investigating. Its report outlined how B.C. Hydro split the IT project into smaller components to avoid scrutiny, failed to produce the proper planning document when asked, didn’t disclose cost increases of up to $38 million, reflecting pressures seen at Manitoba Hydro's debt across the sector, gave incomplete testimony and did not quickly correct the record when it realized the mistakes.

“Essentially all of the things I asserted were substantiated, and so I’m pleased,” Dix, who is now minister of health, said on Monday. “I think ratepayers can be pleased with it, because even though it was an elaborate process, it involves hundreds of millions of spending by a public utility and it clearly required oversight.”

The BCUC stopped short of agreeing with Dix’s allegation that the errors were deliberate. Instead it pointed toward a culture at B.C. Hydro of confusion, misunderstanding and fear of dealing with the independent regulatory process.

“Therefore, the panel finds that there was a culture of reticence to inform the BCUC when there was doubt about something, even among individuals that understood or should have understood the role of the BCUC, a pattern that can fuel Hydro One investor concerns in comparable markets,” read the report.

“Because of this doubt and uncertainty among B.C. Hydro staff, the panel finds no evidence to support a finding that the BCUC was intentionally misled. The panel finds B.C. Hydro’s culture of reticence to be inappropriate.”

By law, B.C. Hydro is supposed to get approval by the commission for rate changes and major expenditures. Its officials are often put under oath when providing information.

B.C. Hydro apologized for its conduct in 2016. The Crown corporation said Monday it supports the commission’s findings and has made improvements to management of IT projects, including more rigorous business case analyses.

“We participated fully in the commission’s process and acknowledged throughout the inquiry that we could have performed better during the regulatory hearings in 2008,” said spokesperson Tanya Fish.

“Since then, we have taken steps to ensure we meet the highest standards of openness and transparency during regulatory proceedings, including implementing a (thorough) awareness program to support staff in providing transparent and accurate testimony at all times during a regulatory process.”

The Ministry of Energy, which is responsible for B.C. Hydro, said in a statement it accepts all of the BCUC recommendations and will include the findings as part of a review it is conducting into Hydro’s operations and finances, including its deferred operating costs for context, and regulatory oversight.

Dix, who is now grappling with complex IT project management in his Health Ministry, said the lessons learned by B.C. Hydro and outlined in the report are important.

“I think the report is useful reading on all those scores,” he said. “It’s a case study in what shouldn’t happen in a major IT project.”

 

 

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Trump declares end to 'war on coal,' but utilities aren't listening

US Utilities Shift From Coal as natural gas stays cheap, renewables like wind and solar scale, Clean Power Plan uncertainty lingers, and investors, state policies, and emissions targets drive generation choices and accelerate retirements.

 

Key Points

A long-term shift by utilities from coal to cheap natural gas, expanding renewables, and lower-emission generation.

✅ Cheap natural gas undercuts coal on price and flexibility.

✅ Renewables costs falling; wind and solar add competitive capacity.

✅ State policies and investors sustain emissions reductions.

 

When President Donald Trump signed an executive order last week to sweep away Obama-era climate change regulations, he said it would end America's "war on coal", usher in a new era of energy production and put miners back to work.

But the biggest consumers of U.S. coal - power generating companies - remain unconvinced about efforts to replace Obama's power plant overhaul with a lighter-touch approach.

Reuters surveyed 32 utilities with operations in the 26 states that sued former President Barack Obama's administration to block its Clean Power Plan, the main target of Trump's executive order. The bulk of them have no plans to alter their multi-billion dollar, years-long shift away from coal, suggesting demand for the fuel will keep falling despite Trump's efforts.

The utilities gave many reasons, mainly economic: Natural gas - coal’s top competitor - is cheap and abundant; solar and wind power costs are falling; state environmental laws remain in place; and Trump's regulatory rollback may not survive legal challenges, as rushed pricing changes draw warnings from energy groups.

Meanwhile, big investors aligned with the global push to fight climate change – such as the Norwegian Sovereign Wealth Fund – have been pressuring U.S. utilities in which they own stakes to cut coal use.

"I’m not going to build new coal plants in today’s environment," said Ben Fowke, CEO of Xcel Energy, which operates in eight states and uses coal for about 36 percent of its electricity production. "And if I’m not going to build new ones, eventually there won’t be any."

Of the 32 utilities contacted by Reuters, 20 said Trump's order would have no impact on their investment plans; five said they were reviewing the implications of the order; six gave no response. Just one said it would prolong the life of some of its older coal-fired power units.

North Dakota's Basin Electric Power Cooperative was the sole utility to identify an immediate positive impact of Trump's order on the outlook for coal.

"We're in the situation where the executive order takes a lot of pressure off the decisions we had to make in the near term, such as whether to retrofit and retire older coal plants," said Dale Niezwaag, a spokesman for Basin Electric. "But Trump can be a one-termer, so the reprieve out there is short."

Trump's executive order triggered a review aimed at killing the Clean Power Plan and paving the way for the EPA's Affordable Clean Energy rule to replace it, though litigation is ongoing. The Obama-era law would have required states, by 2030, to collectively cut carbon emissions from existing power plants by 30 percent from 2005 levels. It was designed as a primary strategy in U.S. efforts to fight global climate change.

The U.S. coal industry, without increases in domestic demand, would need to rely on export markets for growth. Shipments of U.S. metallurgical coal, used in the production of steel, have recently shown up in China following a two-year hiatus - in part to offset banned shipments from North Korea and temporary delays from cyclone-hit Australian producers.

 

RETIRING AND RETROFITTING

Coal had been the primary fuel source for U.S. power plants for the last century, but its use has fallen more than a third since 2008 after advancements in drilling technology unlocked new reserves of natural gas.

Hundreds of aging coal-fired power plants have been retired or retrofitted. Huge coal mining companies like Peabody Energy Corp and Arch Coal fell into bankruptcy, and production last year hit its lowest point since 1978.

The slide appears likely to continue: U.S. power companies now expect to retire or convert more than 8,000 megawatts of coal-fired plants in 2017 after shutting almost 13,000 MW last year, according to U.S. Energy Information Administration and Thomson Reuters data.

Luke Popovich, a spokesman for the National Mining Association, acknowledged Trump's efforts would not return the coal industry to its "glory days," but offered some hope.

"There may not be immediate plans for utilities to bring on more coal, but the future is always uncertain in this market," he said.

Many of the companies in the Reuters survey said they had been focused on reducing carbon emissions for a decade or more while tracking 2017 utility trends that reinforce long-term planning, and were hesitant to change direction based on shifting political winds in Washington D.C.

"Utility planning typically takes place over much longer periods than presidential terms of office," Berkshire Hathaway Inc-owned Pacificorp spokesman Tom Gauntt said.

Several utilities also cited falling costs for wind and solar power, which are now often as cheap as coal or natural gas, thanks in part to government subsidies for renewable energy and recent FERC decisions affecting the grid.

In the meantime, activist investors have increased pressure on U.S. utilities to shun coal.

In the last year, Norway's sovereign wealth fund, the world's largest, has excluded more than a dozen U.S. power companies - including Xcel, American Electric Power Co Inc and NRG Energy Inc - from its investments because of their reliance on coal-fired power.

Another eight companies, including Southern Co and NorthWestern Corp, are "under observation" by the fund.

Wyoming-based coal miner Cloud Peak Energy said it doesn't blame utilities for being lukewarm to Trump's order.

"For eight years, if you were a utility running coal, you got the hell kicked out of you," said Richard Reavey, a spokesman for the company. "Are you going to turn around tomorrow and say, 'Let's buy lots of coal plants'? Pretty unlikely."

 

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New York and New England Need More Clean Energy. Is Hydropower From Canada the Best Way to Get it?

Canadian Hydropower Transmission delivers HVDC clean energy via New England Clean Energy Connect and Champlain Hudson Power Express, linking HydroQuébec to Maine and New York grids for renewable energy, decarbonization, and lower wholesale electricity rates.

 

Key Points

HVDC delivery of HydroQuébec power to New England and New York via NECEC and CHPE, cutting emissions and costs.

✅ 1,200 MW via NECEC; 1,000 MW via CHPE.

✅ HVDC routes: 145-mile NECEC and 333-mile CHPE.

✅ Debates: land impacts, climate justice, wholesale rates.

 

As the sole residents of unorganized territory T5 R7 deep within Maine's North Woods, Duane Hanson and his wife, Sally Kwan, have watched the land around them—known for its natural beauty, diverse wildlife and recreational fishing—transformed by decades of development. 

But what troubles them most is what could happen in the next few months. State and corporate officials are pushing for construction of a 53-mile-long power line corridor cutting right through the woods and abutting the wild lands surrounding Hanson's property. 

If its proponents succeed, Hanson fears the corridor may represent the beginning of the end of his ability to live "off the land" away from the noise of technology-obsessed modern society. Soon, that noise may be in his backyard. 

"I moved here to be in the pristine wilderness," said Hanson.
 
With his life in what he considers the last "wild" place left on the East Coast on the line, the stakes have never felt higher to Hanson—and many across New England, as well.

The corridor is part of the New England Clean Energy Connect, one of two major and highly controversial transmission line projects meant to deliver Canadian hydropower from the government-owned utility HydroQuébec, in a province that has closed the door on nuclear power, to New England electricity consumers. 

As New England states rush to green their electric grids and combat the accelerating climate crisis, the simultaneous push from Canada to expand the market for hydroelectric power from its vast water resources, including Manitoba's clean energy, has offered these states a critical lifeline at just the right moment. 

The other big hydropower transmission line project will deliver 1,000 megawatts of power, or enough to serve approximately one million residential customers, to the New York City metropolitan area, which includes the city, Long Island, and parts of the Hudson Valley, New Jersey, Connecticut and Pennsylvania. 

The 333-mile-long Champlain Hudson Power Express project will consist of two high voltage direct current cables running underground and underwater from Canada, beneath Lake Champlain and the Hudson River, to Astoria, Queens. 

There, the Champlain Hudson project will interconnect to a sector of the New York electricity grid where city and corporate officials say the hydropower supplied can help reduce the fossil fuels that currently comprise significantly more of the base load than in other parts of the state. Though New York has yet to finalize a contract with HydroQuébec over its hydropower purchase, developers plan to start construction on the $2.2 billion project in 2021 and say it will be operational in 2025. 

The New England project consists of 145 miles of new HVDC transmission line that will run largely above ground from the Canadian border, through Maine to Massachusetts. The $1 billion project, funded by Massachusetts electricity consumers, is expected to deliver 1,200 megawatts of clean energy to the New England energy grid, becoming the region's largest clean energy source. 

Central Maine Power, which will construct the Maine transmission corridor, says the project will decrease wholesale electric rates and create thousands of jobs. Company officials expect to receive all necessary permits and begin construction by the year's end, with the project completed and in service by 2020. 

With only months until developers start making both projects on-the-ground realities, they have seized public attention within, and beyond, their regions. 

Hanson is one among many concerned New England and New York residents who've joined the ranks of environmental activists in a contentious battle with public and corporate officials over the place of Canadian hydropower in their states' clean energy futures. 

Officials and transmission line proponents say importing Canadian hydropower offers an immediate and feasible way to help decarbonize electricity portfolios in New York and New England and to address existing transmission constraints that limit cross-border flows today, supporting their broader efforts to combat climate change. 

But some environmental activists say hydropower has a significant carbon footprint of its own. They fear the projects will make states look "greener" at the expense of the local environment, Indigenous communities, and ultimately, the climate. 

"We're talking about the most environmentally and economically just pathway" to decarbonization, said Annel Hernandez, associate director of the NYC Environmental Justice Alliance. "Canadian hydro is not going to provide that." 

To that end, environmental groups opposing Canadian hydropower say New York and New England should seize the moment to expedite local development of wind and solar power. 

Paul Gallay, president of the nonprofit environmental organization Riverkeeper—which withdrew its initial support for the Champlain Hudson Power Express last November— believes New York has the capacity to develop enough in-state renewable energy sources to meet its clean energy goals, without the new transmission line. 

Yet New York City's analysis shows clearly that Canadian hydropower is critical for its clean energy strategy, said Dan Zarrilli, director of OneNYC and New York City's chief climate policy adviser. 

"We need every bit of clean energy we can get our hands on," he said, to meet the city's goal of carbon neutrality by 2050 and help achieve the state's clean energy mandates. 

Removing Canadian hydropower from the equation, said Zarilli, would commit the city to the "unacceptable outcome" of burning more gas. The city's marginalized communities would likely suffer most from the resulting air pollution and associated health impacts. 

While the two camps debate Canadian hydropower's carbon footprint and what climate justice requires, this much is clear: When it comes to pursuing a zero-carbon future, there are no easy answers. 

Hydropower's Carbon Footprint
Many people take for granted that because hydropower production doesn't involve burning fossil fuels, it's a carbon-neutral endeavor. But that's not always the case, depending on where hydropower is sourced. 

Large-scale hydropower projects often involve the creation of hydroelectric dams and reservoirs, and, in some cases, repowering existing dams to generate clean electricity. The release and flow of water from the reservoir through the dam provides the energy necessary to generate hydropower, which long-distance power lines, or transmission lines, carry to its intended destination—in this case, New England and New York. 

The initial process of flooding land to create a hydroelectric reservoir can have a sizable carbon footprint, especially in heavily vegetated areas. It causes the vegetation and soil underwater to decompose, releasing carbon dioxide and methane—a greenhouse gas 84 times more potent over a 20-year period than carbon dioxide. 

Hydropower accounts for 60 percent of Canada's electricity generation, and HydroQuébec has planned to increase capacity to 37,000 MW in 2021, with the nation second only to China in the percentage of the world's total hydroelectricity it generates. By contrast, hydropower only accounts for seven percent of U.S. utility-scale electricity generation, making it a foreign concept to many Americans. 

As New England works to introduce substantial amounts of Canadian hydropower to its electricity grid, hydropower proponents are promoting it as a prime source for clean electricity, and new NB Power agreements are expanding regional transfers within Canada as well. 

Last fall, Central Maine Power formed its own political action committee, Clean Energy Matters, to advance the New England hydropower project. Together with HydroQuébec, the Maine utility has spent nearly $17 million campaigning for the project this year. 

 

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