Councillors to see what future holds for Plasco

By Ottawa Citizen


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The city's experiment with Plasco Energy technology could soon go beyond the pilot project stage, with full-sized plants helping the city solve its garbage problem.

Rod Bryden, chief executive of Plasco Energy Group, and city manager Kent Kirkpatrick was at a briefing for councillors to answer questions about a staff report on the technology, which breaks down garbage into a fuel gas that generates electricity.

The city is in a joint venture with Plasco to test the technology, with a plant that has been operating at the Trail Road landfill since January. The report deals with the next steps, including developing an agreement for a commercial-scale operation. Mr. Bryden said the Trail Road plant is going "very well."

There is considerable excitement about Plasco's technology at City Hall and in municipalities across Canada because expanding landfills, or building new ones, is such a difficult and expensive exercise. Toronto spent $220 million for a new landfill last year.

In Ottawa, garbage has become a huge issue as residents objected to the size, smell and possible environmental consequences of building huge landfill sites, such as Waste Management's site on Carp Road.

"Mr. Bryden's technology has the municipal world on the edge of its seat," said Alta Vista Councillor Peter Hume, who is chairman of council's planning and environment committee and heavily involved in municipal associations.

Mr. Hume said there have been some hurdles at the Plasco test site, but they have only led to "refinements." Municipal officials across Canada believe Plasco may have part of the solution to the garbage problem.

The Plasco gasification process produces three byproducts: an inert slag used as road aggregate or for paving stones, sulphur that can be used to condition soil, and a small amount of heavy metal that is taken to a landfill. The power generated is considered green energy, which will earn top dollar on the electricity market in Ontario.

"All eyes are on Ottawa. There's quite a buzz about the potential for this technology," said Mr. Hume.

In the past, Mr. Bryden has said the company would be interested in building small plants in Ottawa, the smallest taking 200 tonnes of garbage a day. In 2005, according to the city, residences alone produced about 585 tonnes of landfill garbage a day, filling 25,000 trucks a year. Having plants located through the city reduces trucking and eases the load on the power grid.

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Will Israeli power supply competition bring cheaper electricity?

Israel Electricity Reform Competition opens the supply segment to private suppliers, challenges IEC price controls, and promises consumer choice, marginal discounts, and market liberalization amid natural gas generation and infrastructure remaining with IEC.

 

Key Points

Policy opening 40% of supply to private vendors, enabling consumer choice and small discounts while IEC retains the grid.

✅ 40% of retail supply opened to private electricity suppliers

✅ IEC keeps meters, lines; tariffs still regulated by the authority

✅ Expected discounts near 7%, not dramatic price cuts initially

 

"See the pseudo-reform in the electricity sector: no lower prices, no opening the market to competition, and no choice of electricity suppliers, with a high rate for consumers despite natural gas." This is an advertisement by the Private Power Producers Forum that is appearing everywhere: Facebook, the Internet, billboards, and the press.

Is it possible that the biggest reform in the economy with a cost estimated by Israel Electric Corporation (IEC) (TASE: ELEC.B22) at NIS 7 billion is really a pseudo-reform? In contrast to the assertions by the private electricity producers, who are supposedly worried about our wallets and want to bring down the cost of electricity for us, the reform will open a segment of electricity supply to competition, as agreed in the final discussions about the reform. No less than 40% of this segment will be removed from IEC's exclusive responsibility and pass to private hands.

This means that in the not-too-distant future, one million households in Israel will be able to choose between different electricity suppliers. IEC will retain the infrastructure, with its meter and power lines, but for the first time, the supplier who sends the monthly bill to our home can be a private concern.

Up until now, the only regulatory agency determining the electricity rate in Israel was the Public Utilities Authority (electricity), i.e. the state. Now, in the framework of the reform, as a result of opening the supply segment to competition, private electricity producers will be able to offer a lower rate than IEC's, with mechanisms like electricity auctions shown to cut costs in some markets, while IEC's rate will still be controlled by the Public Utilities Authority (electricity).

This situation differs from the situation in almost all European countries, where the electricity market is fully open to competition and the EU is pursuing an electricity market revamp to address pricing challenges, with no electricity price controls and free switching by consumers between electricity producers, just as in the mobile phone market. This measure has not lowered electricity prices in Europe, where rates are higher than in Israel, which is in the bottom third of OECD countries in its electricity rate.

Regardless of reports, supply will be opened to competition and we will be able to choose between electricity suppliers in the future. Are the private electricity producers nevertheless right when they say that the electricity sector will not be opened to "real competition"?

 

What is obviously necessary is for the private producers to offer a substantially lower rate than IEC in order to attract as many new customers as possible and win their trust. Can the private producers offer a significantly lower rate than IEC? The answer is no, at least not in the near future. The teams handling the negotiations are aware of this. "The private supplier's price will not be significantly cheaper than IEC's controlled price; there will be marginal discounts," a senior government source explains. "What is involved here is another electricity intermediary, so it will not contribute to competition and lowering the price," he added.

There are already private electricity producers supplying electricity to large business customers - factories, shopping malls, and so forth - at a 7% discount. The rest of the electricity that they produce is sold to the system manager. When supply is opened to competition, it can be assumed that the private suppliers will also be able to offer a similar discount to private consumers.

Will a 7% discount cause a home consumer to leave reliable and familiar IEC for a private producer, given evidence from retail electricity competition in other markets? This is hard to know.

#google#

Why cannot private electricity producers offer a larger discount that will really break the monopoly, as their advertisement says they want to do? Chen Herzog, chief economist and partner at BDO Consulting, which is advising the Private Power Producers Forum, says, "Competition in supply requires the construction of competitive power plants that can compete and offer cheaper electricity.

"The power plants that IEC will sell in the reform, which will go on selling electricity to IEC, are outmoded, inefficient, and non-competitive. In addition, the producer will have to continue employing IEC workers in the purchased plants for at least five years. The producer will generate electricity in IEC power stations with IEC employees and additional overhead of a private producer, with factors such as cost allocation further shaping end-user rates. This amounts to being an IEC subcontractor in production. There is no saving on costs, so there will be no surplus to deduct from the consumer price," he adds.

The idea of opening supply to electricity market competition on such a large scale sounds promising, but saving on electricity for consumers still looks a long way off.

 

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B.C.'s Green Energy Ambitions Face Power Supply Challenges

British Columbia Green Grid Constraints underscore BC Hydro's rising imports, peak demand, electrification, hydroelectric variability, and transmission bottlenecks, challenging renewable energy expansion, energy security, and CleanBC targets across industry and zero-emission transportation.

 

Key Points

They are capacity and supply limits straining B.C.'s clean electrification, driving imports and risking reliability.

✅ Record 25% imports in FY2024 raise emissions and costs

✅ Peak demand and transmission limits delay new connections

✅ Drought reduces hydro output; diversified generation needed

 

British Columbia's ambitious green energy initiatives are encountering significant hurdles due to a strained electrical grid and increasing demand, with a EV demand bottleneck adding pressure. The province's commitment to reducing carbon emissions and transitioning to renewable energy sources is being tested by the limitations of its current power infrastructure.

Rising Demand and Dwindling Supply

In recent years, B.C. has experienced a surge in electricity demand, driven by factors such as population growth, increased use of electric vehicles, and the electrification of industrial processes. However, the province's power supply has struggled to keep pace, and one study projects B.C. would need to at least double its power output to electrify all road vehicles. In fiscal year 2024, BC Hydro imported a record 13,600 gigawatt hours of electricity, accounting for 25% of the province's total consumption. This reliance on external sources, particularly from fossil-fuel-generated power in the U.S. and Alberta, raises concerns about energy security and sustainability.

Infrastructure Limitations

The current electrical grid is facing capacity constraints, especially during peak demand periods, and regional interties such as a proposed Yukon connection are being discussed to improve reliability. A report from the North American Electric Reliability Corporation highlighted that B.C. could be classified as an "at-risk" area for power generation as early as 2026. This assessment underscores the urgency of addressing infrastructure deficiencies to ensure a reliable and resilient energy supply.

Government Initiatives and Investments

In response to these challenges, the provincial government has outlined plans to expand the electrical system. Premier David Eby announced a 10-year, $36-billion investment to enhance the grid's capacity, including grid development and job creation measures to support local economies. The initiative focuses on increasing electrification, upgrading high-voltage transmission lines, refurbishing existing generating facilities, and expanding substations. These efforts aim to meet the growing demand and support the transition to clean energy sources.

The Role of Renewable Energy

Renewable energy sources, particularly hydroelectric power, play a central role in B.C.'s energy strategy. However, the province's reliance on hydroelectricity has its challenges. Drought conditions in recent years have led to reduced water levels in reservoirs, impacting the generation capacity of hydroelectric plants. This variability underscores the need for a diversified energy mix, with options like a hydrogen project complementing hydro, to ensure a stable and reliable power supply.

Balancing Environmental Goals and Energy Needs

B.C.'s commitment to environmental sustainability is evident in its policies, such as the CleanBC initiative, which aims to phase out natural gas heating in new homes by 2030 and achieve 100% zero-emission vehicle sales by 2035, supported by networks like B.C.'s Electric Highway that expand charging access. While these goals are commendable, they place additional pressure on the electrical grid. The increased demand from electric vehicles and electrified heating systems necessitates a corresponding expansion in power generation and distribution infrastructure.

British Columbia's green energy ambitions are commendable and align with global efforts to combat climate change. However, achieving these goals requires a robust and resilient electrical grid capable of meeting the increasing demand for power. The province's reliance on external power sources and the challenges posed by climate variability highlight the need for strategic investments in infrastructure and a diversified energy portfolio, guided by BC Hydro review recommendations to keep electricity affordable. By addressing these challenges proactively, B.C. can pave the way for a sustainable and secure energy future.

 

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Russia suspected as hackers breach systems at power plants across US

US Power Grid Cyberattacks target utilities and nuclear plants, probing SCADA, ICS, and business networks at sites like Wolf Creek; suspected Russian actors, malware, and spear-phishing trigger DHS and FBI alerts on critical infrastructure resilience.

 

Key Points

Intrusions on energy networks probing ICS and SCADA, seeking persistence and elevating risks to critical infrastructure.

✅ Wolf Creek nuclear plant targeted; no operational systems breached

✅ Attackers leveraged stolen credentials, malware, and spear-phishing

✅ DHS and FBI issued alerts; utilities enhance cyber resilience

 

Hackers working for a foreign government recently breached at least a dozen US power plants, including the Wolf Creek nuclear facility in Kansas, according to current and former US officials, sparking concerns the attackers were searching for vulnerabilities in the electrical grid.

The rivals could be positioning themselves to eventually disrupt the nation’s power supply, warned the officials, who noted that a general alert, prompting a renewed focus on protecting the U.S. power grid, was distributed to utilities a week ago. Adding to those concerns, hackers recently infiltrated an unidentified company that makes control systems for equipment used in the power industry, an attack that officials believe may be related.

The chief suspect is Russia, according to three people familiar with the continuing effort to eject the hackers from the computer networks. One of those networks belongs to an ageing nuclear generating facility known as Wolf Creek -- owned by Westar Energy Inc, Great Plains Energy Inc, and Kansas Electric Power Cooperative Inc -- on a lake shore near Burlington, Kansas.

The possibility of a Russia connection is particularly worrying, former and current official s say, because Russian hackers have previously taken down parts of the electrical grid in Ukraine and appear to be testing increasingly advanced tools, including cyber weapons to disrupt power grids, to disrupt power supplies.

The hacks come as international tensions have flared over US intelligence agencies’ conclusion that Russia tried to influence the 2016 presidential election, and amid U.S. government condemnation of Russian power-grid hacking in recent advisories. The US, which has several continuing investigations into Russia’s activities, is known to possess digital weapons capable of disrupting the electricity grids of rival nations.

“We don’t pay attention to such anonymous fakes,” Kremlin spokesman Dmitry Peskov said, in response to a request to comment on alleged Russian involvement.

It was unclear whether President Donald Trump was planning to address the cyber attacks at his meeting on Friday with Russian President Vladimir Putin. In an earlier speech in Warsaw, Trump called out Russia’s “destabilising activities” and urged the country to join “the community of responsible nations.”

The Department of Homeland Security and Federal Bureau of Investigation said they are aware of a potential intrusion in the energy sector. The alert issued to utilities cited activities by hackers since May.

“There is no indication of a threat to public safety, as any potential impact appears to be limited to administrative and business networks,” the government agencies said in a joint statement.

The Department of Energy also said the impact appears limited to administrative and business networks and said it was working with utilities and grid operators to enhance security and resilience.

“Regardless of whether malicious actors attempt to exploit business networks or operational systems, we take any reports of malicious cyber activity potentially targeting our nation’s energy infrastructure seriously and respond accordingly,” the department said in an emailed statement.

Representatives of the National Security Council, the Director of National Intelligence and the Nuclear Regulatory Commission declined to comment. While Bloomberg News was waiting for responses from the government, the New York Times reported that hacks were targeting nuclear power stations.

The North American Electric Reliability Corp, a nonprofit that works to ensure the reliability of the continent’s power system, said it was aware of the incident and was exchanging information with the industry through a secure portal.

“At this time, there has been no bulk power system impact in North America,” the corporation said in an emailed statement.

In addition, the operational controls at Wolf Creek were not pierced, according to government officials, even as attackers accessed utility control rooms elsewhere in the U.S., according to separate reports. “There was absolutely no operational impact to Wolf Creek,” Jenny Hageman, a spokeswoman for the nuclear plant, said in a statement to Bloomberg News.

“The reason that is true is because the operational computer systems are completely separate from the corporate network.”

Determining who is behind an attack can be tricky. Government officials look at the sophistication of the tools, among other key markers, when gauging whether a foreign government is sponsoring cyber activities.

Several private security firms, including Symantec researchers, are studying data on the attacks, but none has linked the work to a particular hacking team or country.

“We don’t tie this to any known group at this point,” said Sean McBride, a lead analyst for FireEye Inc, a global cyber security firm. “It’s not to say it’s not related, but we don’t have the evidence at this point.”

US intelligence officials have long been concerned about the security of the country’s electrical grid. The recent attack, striking almost simultaneously at multiple locations, is testing the government’s ability to coordinate an effective response among several private utilities, state and local officials, and industry regulators.

Specialised teams from Homeland Security and the FBI have been scrambled to help extricate the hackers from the power stations, in some cases without informing local and state officials. Meanwhile, the US National Security Agency is working to confirm the identity of the hackers, who are said to be using computer servers in Germany, Italy, Malaysia and Turkey to cover their tracks.

Many of the power plants are conventional, but the targeting of a nuclear facility adds to the pressure. While the core of a nuclear generator is heavily protected, a sudden shutdown of the turbine can trigger safety systems. These safety devices are designed to disperse excess heat while the nuclear reaction is halted, but the safety systems themselves may be vulnerable to attack.

Homeland Security and the FBI sent out a general warning about the cyber attack to utilities and related parties on June 28, though it contained few details or the number of plants affected. The government said it was most concerned about the “persistence” of the attacks on choke points of the US power supply. That language suggests hackers are trying to establish backdoors on the plants’ systems for later use, according to a former senior DHS official who asked not to be identified.

Those backdoors can be used to insert software specifically designed to penetrate a facility’s operational controls and disrupt critical systems, according to Galina Antova, co-founder of Claroty, a New York firm that specialises in securing industrial control systems.

“We’re moving to a point where a major attack like this is very, very possible,” Antova said. “Once you’re into the control systems -- and you can get into the control systems by hacking into the plant’s regular computer network -- then the basic security mechanisms you’d expect are simply not there.”

The situation is a little different at nuclear facilities. Backup power supplies and other safeguards at nuclear sites are meant to ensure that “you can’t really cause a nuclear plant to melt down just by taking out the secondary systems that are connected to the grid,” Edwin Lyman, a nuclear expert with the Union of Concerned Scientists, said in a phone interview.

The operating systems at nuclear plants also tend to be legacy controls built decades ago and don’t have digital control systems that can be exploited by hackers. Wolf Creek, for example, began operations in 1985. “They’re relatively impervious to that kind of attack,” Lyman said.

The alert sent out last week inadvertently identified Wolf Creek as one of the victims of the attack. An analysis of one of the tools used by the hackers had the stolen credentials of a plant employee, a senior engineer. A US official acknowledged the error was not caught until after the alert was distributed.

According to a security researcher who has seen the report, the malware that activated the engineer’s username and password was designed to be used once the hackers were already inside the plant’s computer systems.

The tool tries to connect to non-public computers, and may have been intended to identify systems related to Wolf Creek’s generation plant, a part of the facility typically more modern than the nuclear reactor control room, according to a security expert who asked to note be identified because the alert is not public.

Even if there is no indication that the hackers gained access to those control systems, the design of the malware suggests they may have at least been looking for ways to do so, the expert said.

Stan Luke, the mayor of Burlington, the largest community near Wolf Creek, which is surrounded by corn fields and cattle pastures, said he learned about a cyber threat at the plant only recently, and then only through golfing buddies.

With a population of just 2,700, Burlington boasts a community pool with three water slides and a high school football stadium that would be the envy of any junior college. Luke said those amenities lead back to the tax dollars poured into the community by Wolf Creek, Coffey County’s largest employer with some 1,000 workers, 600 of whom live in the county.

E&E News first reported on digital attacks targeting US nuclear plants, adding it was code-named Nuclear 17. A senior US official told Bloomberg that there was a bigger breach of conventional plants, which could affect multiple regions.

Industry experts and US officials say the attack is being taken seriously, in part because of recent events in Ukraine. Antova said that the Ukrainian power grid has been disrupted at least twice, first in 2015, and then in a more automated attack last year, suggesting the hackers are testing methods.

Scott Aaronson, executive director for security and business continuity at the Edison Electric Institute, an industry trade group, said utilities, grid operators and federal officials were already dissecting the attack on Ukraine’s electric sector to apply lessons in North America before the US government issued the latest warning to “energy and critical manufacturing sectors”. The current threat is unrelated to recently publicised ransomware incidents or the CrashOverride malware, Mr Aaronson said in an emailed statement.

Neither attack in Ukraine caused long-term damage. But with each escalation, the hackers may be gauging the world’s willingness to push back.

“If you think about a typical war, some of the acts that have been taken against critical infrastructure in Ukraine and even in the US, those would be considered crossing red lines,” Antova said.

 

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Some old dams are being given a new power: generating clean electricity

Hydroelectric retrofits for unpowered dams leverage turbines to add renewable capacity, bolster grid reliability, and enable low-impact energy storage, supporting U.S. and Canada decarbonization goals with lower costs, minimal habitat disruption, and climate resilience.

 

Key Points

They add turbines to existing dams to make clean power, stabilize the grid, and offer low-impact storage at lower cost.

✅ Lower capex than new dams; minimal habitat disruption

✅ Adds firming and storage to support wind and solar

✅ New low-head turbines unlock more retrofit sites

 

As countries race to get their power grids off fossil fuels to fight climate change, there's a big push in the U.S. to upgrade dams built for purposes such as water management or navigation with a feature they never had before — hydroelectric turbines. 

And the strategy is being used in parts of Canada, too, with growing interest in hydropower from Canada supplying New York and New England.

The U.S. Energy Information Administration says only three per cent of 90,000 U.S. dams currently generate electricity. A 2012 report from the U.S. Department of Energy found that those dams have 12,000 megawatts (MW) of potential hydroelectric generation capacity. (According to the National Hydropower Association, 1 MW can power 750 to 1,000 homes. That means 12,000 MW should be able to power more than nine million homes.)

As of May 2019, there were projects planned to convert 32 unpowered dams to add 330 MW to the grid over the next several years.

One that was recently completed was the Red Rock Hydroelectric Project, a 60-year-old flood control dam on the Des Moines River in Iowa that was retrofitted in 2014 to generate 36.4 MW at normal reservoir levels, and up to 55 MW at high reservoir levels and flows. It started feeding power to the grid this spring, and is expected to generate enough annually to supply power to 18,000 homes.

It's an approach that advocates say can convert more of the grid from fossil fuels to clean energy, often with a lower cost and environmental impact than building new dams.

Hydroelectric facilities can also be used for energy storage, complementing intermittent clean energy sources such as wind and solar with pumped storage to help maintain a more reliable, resilient grid.

The Nature Conservancy and the World Wildlife Fund are two environmental groups that oppose new hydro dams because they can block fish migration, harm water quality, damage surrounding ecosystems and release methane and CO2, and in some regions, Western Canada drought has reduced hydropower output as reservoirs run low. But they say adding turbines to non-powered dams can be part of a shift toward low-impact hydro projects that can support expansion of solar and wind power.

Paul Norris, president of the Ontario Waterpower Association, said there's typically widespread community support for such projects in his province amid ongoing debate over whether Ontario is embracing clean power in its future plans. "Any time that you can better use existing assets, I think that's a good thing."

New turbine technology means water doesn't need to fall from as great a height to generate power, providing opportunities at sites that weren't commercially viable in the past, Norris said, with recent investments such as new turbines in Manitoba showing what is possible.

In Ontario, about 1,000 unpowered dams are owned by various levels of government. "With the appropriate policy framework, many of these assets have the potential to be retrofitted for small hydro," Norris wrote in a letter to Ontario's Independent Electricity System Operator this year as part of a discussion on small-scale local energy generation resources.

He told CBC that several such projects are already in operation, such as a 950 kW retrofit of the McLeod Dam at the Moira River in Belleville, Ont., in 2008. 

Four hydro stations were going to be added during dam refurbishment on the Trent-Severn Waterway, but they were among 758 renewable energy projects cancelled by Premier Doug Ford's government after his election in 2018, a move examined in an analysis of Ontario's dirtier electricity outlook and its implications.

Patrick Bateman, senior vice-president of Waterpower Canada, said such dam retrofit projects are uncommon in most provinces. "I don't see it being a large part of the future electricity generation capacity."

He said there has been less movement on retrofitting unpowered dams in Canada compared to the U.S., because:

There are a lot more opportunities in Canada to refurbish large, existing hydro-generating stations to boost capacity on a bigger scale.

There's less growth in demand for clean energy, because more of Canada's grid is already non-carbon-emitting (80 per cent) compared to the U.S. (40 per cent).

Even so, Norris thinks Canadians should be looking at all opportunities and options when it comes to transitioning the grid away from fossil fuels, including retrofitting non-powered dams, especially as a recent report highlights Canada's looming power problem over the coming decades.

"If we're going to be serious about addressing the inevitable challenges associated with climate change targets and net zero, it really is an all-of-the-above approach."

 

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Analysis: Out in the cold: how Japan's electricity grid came close to blackouts

Japan Electricity Crunch exposes vulnerabilities in a liberalised power market as LNG shortages, JEPX price spikes, snow-hit solar, and weak hedging strain energy security and retail providers amid cold snap demand and limited reserve capacity.

 

Key Points

A winter demand shock and LNG shortfalls sent JEPX to records, exposing gaps in hedging, data, and energy security.

✅ JEPX wholesale prices spiked to an all-time high

✅ LNG inventories and procurement proved insufficient

✅ Snow disabled solar; new entrants lacked hedging

 

Japan's worst electricity crunch since the aftermath of the Fukushima crisis has exposed vulnerabilities in the country's recently liberalised power market, although some of the problems appear self-inflicted.

Power prices in Japan hit record highs last month, mirroring UK peak power prices during tight conditions, as a cold snap across northeast Asia prompted a scramble for supplies of liquefied natural gas (LNG), a major fuel for the country's power plants. Power companies urged customers to ration electricity to prevent blackouts, although no outages occurred.

The crisis highlighted how many providers were unprepared for such high demand. Experts say LNG stocks were not topped up ahead of winter and snow disabled solar power farms, while China's power woes strained solar supply chains.

The hundreds of small power companies that sprang up after the market was opened in 2016 have struggled the most, saying the government does not disclose the market data they need to operate. The companies do not have their own generators, instead buying electricity on the wholesale market.

Prices on the Japan Electric Power Exchange (JEPX) hit a record high of 251 yen ($2.39) per kilowatt hour in January, equating to $2,390 per megawatt hour of electricity, above record European price surges seen recently and the highest on record anywhere in the world. One megawatt hour is roughly what an average home in the U.S. would consume over 35 days.

But the vast majority of the new, smaller companies are locked into low, fixed rates they set to lure customers from bigger players, crushing them financially during a price spike like the one in January.

More than 50 small power providers wrote on Jan. 18 to Japan's industry minister, Hiroshi Kajiyama, who oversees the power sector, asking for more accessible data on supply and demand, reserve capacity and fuel inventories.

"By organising and disclosing this information, retail electricity providers will be able to bid at more appropriate prices," said the companies, led by Looop Co.

They also called on Kajiyama to require transmission and distribution companies to pass on some of the unexpected profits from price spikes to smaller operators.

The industry ministry said it had started releasing more timely market data, and is reviewing the cause of the crunch and considering changes, echoing calls by Fatih Birol to keep electricity options open amid uncertainty.

Japan reworked its power markets after the Fukushima nuclear disaster in 2011, liberalizing the sector in 2016 while pushing for more renewables.

But Japan is still heavily reliant on LNG and coal, and only four of 33 nuclear reactors are operating. The power crisis has led to growing calls to restart more reactors.

Kazuno Power, a small retail provider controlled by a municipality of the same name in northern Japan, where abundant renewable energy is locally produced, buys electricity from hydropower stations and JEPX.

During the crunch, the company had to pay nearly 10 times the usual price, Kazuno Power president Takao Takeda said in an interview. Like most other new providers, it could not pass on the costs, lost money, and folded. The local utility has taken over its customers.

"There is a contradiction in the current system," Takeda said. "We are encouraged to locally produce power for local consumption as well as use more renewable energy, but prices for these power supplies are linked to wholesale prices, which depend on the overall power supply."

The big utilities, which receive most of their LNG on long-term contracts, blamed the power shortfall on a tight spot market and glitches at generation units.

"We were not able to buy as much supply as we wanted from the spot market because of higher demand from South Korea and China, where power cuts have tightened supply," Kazuhiro Ikebe, the head of the country's electricity federation, said recently.

Ikebe is also president of Kyushu Electric Power, which supplies the southern island of Kyushu.

Utilities took extreme measures - from burning polluting fuel oil in coal plants to scavenging the dregs from empty LNG tankers - to keep the grid from breaking down.

"There is too much dependence on JEPX for procurement," said Bob Takai, the local head of European Energy Exchange, where electricity pricing reforms are being discussed, and which started offering Japan power futures last year. He added that new entrants were not hedging against sharp price moves.

Three people, who requested anonymity because of the sensitivity of the matter, were more blunt. One called the utilities arrogant in assuming they could find LNG cargoes in a pinch. Prices were already rising as China snapped up supplies, the sources noted.

"You had volatility caused by people saying 'Oh, well, demand is going to be weak because of coronavirus impacts' and then saying 'we can rely more on solar than in the past,' but solar got snowed out," said a senior executive from one generator. "We have a problem of who is charge of energy security in Japan."

Inventories of LNG, generally about two weeks worth of supplies, were also not topped up enough to prepare for winter, a market analyst said.

The fallout from the crunch has become more apparent in recent days, with new power companies like Rakuten Inc suspending new sales and Tokyo Gas, along with traditional electricity utilities, issuing profit downgrades or withdrawing their forecasts.

Although prices have fallen sharply as temperatures warmed up slightly and more generation units have come back online, the power generator executive said, "we are not out of the woods yet."
 

 

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Blood Nickel and Canada's Role in Global Mining Sustainability

Blood Nickel spotlights ethical sourcing in the EV supply chain, linking nickel mining to human rights, environmental impact, ESG standards, and Canadian leadership in sustainable extraction, transparency, and community engagement across global battery materials markets.

 

Key Points

Blood Nickel is nickel mined under unethical or harmful conditions, raising ESG, human rights, and environmental risks.

✅ Links EV battery supply chains to social and environmental harm

✅ Calls for transparency, traceability, and ethical sourcing standards

✅ Highlights Canada's role in sustainable mining and community benefits

 

The rise of electric vehicles (EVs) has sparked a surge in demand for essential battery components, particularly nickel, and related cobalt market pressures essential for their batteries. This demand has ignited concerns about the environmental and social impacts of nickel mining, particularly in regions where standards may not meet global sustainability benchmarks. This article explores the concept of "blood nickel," its implications for the environment and communities, and Canada's potential role in promoting sustainable mining practices.

The Global Nickel Boom

As the automotive industry shifts towards electric vehicles, nickel has emerged as a critical component for lithium-ion batteries due to its ability to store energy efficiently. This surge in demand has led to a global scramble for nickel, with major producers ramping up extraction efforts to meet market needs amid EV shortages and wait times that underscore supply constraints. However, this rapid expansion has raised alarms about the environmental consequences of nickel mining, including deforestation, water pollution, and carbon emissions from energy-intensive extraction processes.

Social Impacts: The Issue of "Blood Nickel"

Beyond environmental concerns, the term "blood nickel" has emerged to describe nickel mined under conditions that exploit workers, disregard human rights, or fail to uphold ethical labor standards. In some regions, nickel mining has been linked to issues such as child labor, unsafe working conditions, and displacement of indigenous communities. This has prompted calls for greater transparency and accountability in global supply chains, with initiatives like U.S.-ally efforts to secure EV metals aiming to align sourcing standards, to ensure that the benefits of EV production do not come at the expense of vulnerable populations.

Canada's Position and Potential

Canada, home to significant nickel deposits, stands at a pivotal juncture in the global EV revolution, supported by EV assembly deals in Canada that strengthen domestic manufacturing. With its robust regulatory framework, commitment to environmental stewardship, and advanced mining technologies, Canada has the potential to lead by example in sustainable nickel mining practices. Canadian companies are already exploring innovations such as cleaner extraction methods, renewable energy integration, and community engagement initiatives to minimize the environmental footprint and enhance social benefits of nickel mining.

Challenges and Opportunities

Despite Canada's potential, the mining industry faces challenges in balancing economic growth with environmental and social responsibility and building integrated supply chains, including downstream investments like a battery plant in Niagara that can connect materials to markets. Achieving sustainable mining practices requires collaboration among governments, industry stakeholders, and local communities to establish clear guidelines, monitor compliance, and invest in responsible resource development. This approach not only mitigates environmental impacts but also fosters long-term economic stability and social well-being in mining regions.

Pathways to Sustainability

Moving forward, Canada can play a pivotal role in shaping the global nickel supply chain by promoting transparency, ethical sourcing, and environmental stewardship. This includes advocating for international standards that prioritize sustainable mining practices, supporting research and development of cleaner technologies, and leveraging adjacent resources such as Alberta lithium potential to diversify battery supply chains, while fostering partnerships with global stakeholders to ensure a fair and equitable transition to a low-carbon economy.

Conclusion

The rapid growth of electric vehicles has propelled nickel into the spotlight, highlighting both its strategic importance and the challenges associated with its extraction. As global demand for "green" metals intensifies, addressing the concept of "blood nickel" becomes increasingly urgent, even as trade measures like tariffs on Chinese EVs continue to reshape market incentives. Canada, with its rich nickel reserves and commitment to sustainability, has an opportunity to lead the charge towards ethical and responsible mining practices. By leveraging its strengths in innovation, regulation, and community engagement, Canada can help forge a path towards a more sustainable future where electric vehicles drive progress without compromising environmental integrity or social justice.

 

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