Magma Energy to buy Plutonic Power

By Toronto Star


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Magma Energy Corp. plans to acquire Plutonic Power Corp. to create a more diversified alternative energy producer worth about $575 million.

MagmaÂ’s current focus is on geothermal power and Plutonic is mainly involved with hydroelectric and wind power as well as some solar-electric projects.

After acquiring Plutonic, Magma would change its name to Alterra Power Corp.

“This merger will strengthen both companies and will create a larger, more diversified renewable energy company with assets across a broader spectrum of the clean energy industry,” Magma chairman and CEO Ross Beaty said.

Beaty said the deal has the potential to lower each companyÂ’s cost of capital and enable them to develop their growth assets more quickly.

PlutonicÂ’s principal operating facilities are the Toba Montrose hydroelectric project and the Dokie wind farm, which are held in partnership with GE Energy Financial Services.

Magma has a portfolio of properties in the western United States, Iceland and Latin America that have the potential to harness the power of geothermal hot spots, the type associated with volcanoes and geysers.

Magma has one operating power plant in Nevada and two in Iceland.

“Geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be solid business platforms for future growth,” Beaty said in a statement.

“In the renewable energy business, bigger is better and this combination will achieve that while enhancing returns to each company’s shareholders.”

Under the agreement, Plutonic shareholders would receive 2.38 shares of Magma.

In a related transaction, Magma has subscribed for a $10-million unsecured convertible debenture from Plutonic.

Plutonic will use proceeds from the debenture to repay an $8 million promissory note held by GE Energy Financial Services Holding Co.

Beaty will be executive chairman and chief executive of Alterra Power and Don McInnes, the vice-chairman and CEO of Plutonic, will be AlterraÂ’s executive vice-chairman.

TheyÂ’ll head a seven-member board of directors.

McInnes said 2010 was “a breakout year” for Plutonic.

“To continue to build on the success of our history as a project developer, a merger with Magma will provide our shareholders with the best path to further value creation achieved through a larger market size, greater liquidity, better access to capital, and diversity of geography and technology with a healthy development pipeline that provides significant growth opportunities.”

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Alberta gives $40M to help workers transition from coal power jobs

Alberta Coal Transition Support offers EI top-ups, 75% wage replacement, retraining, tuition vouchers, and on-site advice for workers leaving thermal coal mines and coal-fired power plants during the provincial phase-out.

 

Key Points

Alberta Coal Transition Support is a $40M program providing EI top-ups, retraining, and tuition vouchers to coal workers.

✅ 75% EI top-up; province requests federal alignment

✅ Tuition vouchers and retraining for displaced workers

✅ On-site transition services; about 2,000 workers affected

 

Alberta is putting aside $40 million to help workers losing their jobs as the province transitions away from thermal coal mines and coal-fired power plants, a shift connected to the future of work in the electricity sector over the next decade.

Labour Minister Christina Gray says the money will top up benefits to 75 per cent of a worker’s previous earnings during the time they collect employment insurance, amid regional shifts such as how COVID-19 reshaped Saskatchewan in recent months.

Alberta is asking the federal government to not claw back existing benefits as the province tops up those EI benefits, as utilities face pressures like Manitoba Hydro cost-cutting during the pandemic, while also extending EI benefits for retiring coal workers.

Gray says even if the federal government does not step up, the province will provide the funds to match that 75 per cent threshold, a contrast to problems such as Kentucky miners' cold checks seen elsewhere.

There will also be help for workers in the form of tuition vouchers, retraining programs like the Nova Scotia energy training program that connects youth to the sector, and on-site transitioning advice.

The province estimates there are 2,000 workers affected.

 

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Manitoba Hydro scales back rate increase next year

Manitoba Hydro 3.5 Percent Rate Increase proposes a smaller electricity rate hike under Public Utilities Board oversight to bolster financial reserves, address debt and Bipole III costs, amid shifting export sales and water flow conditions.

 

Key Points

It is Manitoba Hydro's proposed 3.5% electricity rate hike for 2019-20 to shore up finances under PUB oversight.

✅ PUB review sought without lengthy hearing

✅ Revenue boost forecast at 59 million dollars

✅ Natural gas rates flat; class shifts adjust bills

 

Manitoba Hydro is scaling back its rate hike request for next year, instead of the annual 7.9 per cent hikes the Crown corporation previously said it would need until 2023-24 to address debt. 

Hydro is asking the Public Utilities Board for a 3.5 per cent rate increase next year, which would take effect on April 1.

In last week's application, Hydro said its new board is reviewing the corporation's financial picture. Once that is complete, the utility expects to submit a new multi-year rate plan in late 2019 that addresses the organization's long-term future.

"It's too speculative at this point to discuss any possible future rate increases," spokesperson Bruce Owen said in an email.

The proposed increase next year is similar to other jurisdictions and nearly in line with the Public Utilities Board's decision to allow an average 3.6 per cent jump in electricity rates in 2018-19, which began this summer.

"The requested 3.5 per cent rate increase … generates a modest level of net income under average water flow conditions that will assist in gradually building the revenue base and reduce the risk of the corporation incurring a loss" in 2019-20, the rate application said.

If approved, consumers would face their second rate increase from Hydro in under a year.

Crown Services Minister Colleen Mayer said she's sympathetic to customers bracing for another rate increase amid NL rate hike concerns that far exceeds the rate of inflation.

"I hear that, very clearly," she said. "The NDP left us with an insurmountable problem — we're trying to fix that."

Hydro goes to court over special rate class for First Nations residents in Manitoba

National Energy Board OK's Manitoba-Minnesota Transmission Project

Next year's rate increase is projected to bring in $59 million of revenue, boosting the Crown corporation's financial reserves by $31 million.

Without it, the utility would deal with a net loss, it said.

This time, Hydro officials are asking PUB to forgo a rate hearing, suggesting neither itself nor the board has the resources for a lengthy six- to nine-month process to review an application where not much has changed financially and would generate a "minimum level of net income," Hydro said in a letter to the board.

The short-term rate relief, the letter recommends, should be "awarded in a timely and cost-effective manner, recognizing that the corporation's long-term financial forecasts will be finalized and available for review" in late 2019.

Hydro's net income next year will be lower than projected, the rate application said, due to a reduction in export sales and increases in depreciation and financing costs from Bipole III.

"Even though they had a total implosion of their previous board, on this very issue, they haven't learned lessons and they continue to be cheerleaders for these rapid rate increases," Kinew said, referring to the exodus of every board member but one earlier this year.

Manitoba Hydro's burgeoning debt surpasses $19 billion

On natural gas, Manitoba Hydro is asking PUB for no rate increase for the next two years.

There will, however, be some changes in rates in different customer classes, Owen said, resulting in modest rate reductions for mainly residential customers and increases for customers who use a lot of natural gas.

The corporation also wants to stop collecting fees to support the furnace replacement program. The initiative will continue with existing fees.

 

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Wyoming wind boost for US utility

Black Hills Energy Corriedale Wind Farm Expansion earns regulatory approval in Wyoming, boosting capacity to over 52MW near Cheyenne with five turbines, supporting Renewable Ready customers and wind power goals under PUC and PSC oversight.

 

Key Points

An approved Wyoming wind project upgrade to over 52MW, adding five turbines to serve Renewable Ready customers.

✅ Adds 12.5MW via five new wind turbines near Cheyenne

✅ Cost increases to $79m; prior estimate $57m

✅ Approved by SD PUC after Wyoming PSC review

 

US company Black Hills Energy has received regulatory approval to increase the size of its Corriedale wind farm in Wyoming, where Wyoming wind exports to California are advancing, to over 52MW from 40MW previously.

The South Dakota Public Utilities Commission approved the additional 12.5MW capacity after the Wyoming Public Service Commission determined the boost was within commission rules, as federal initiatives like DOE wind energy awards continue to support the sector.

Black Hills Energy will install five additional turbines, raising the project cost to $79m from $57m, amid growing heartland wind investment across the region.
Corriedale will be built near Cheyenne and is expected to be placed in service in late 2020.

Similar market momentum is seen in Canada, where a Warren Buffett-linked Alberta wind farm is planned to expand capacity across the region.

Black Hills said that during the initial subscription period for its Renewable Ready program, applications of interest from eligible commercial, industrial and governmental agency customers were received in excess of the program's 40MW, underscoring the view that more energy sources can make stronger projects.

Black Hills Corporations chief executive and president Linden Evans said: “We are pleased with the opportunity to expand our Renewable Ready program, allowing us to meet our customers’ interest in renewable wind energy, which co-op members increasingly support.

“This innovative program expands our clean energy portfolio while meeting our customers’ evolving needs, particularly around cleaner and more sustainable energy, as projects like new energy generation coming online demonstrate.”

 

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Idaho gets vast majority of electricity from renewables, almost half from hydropower

Idaho Renewable Energy 2018 saw over 80% in-state utility-scale power from hydropower, wind, solar, biomass, and geothermal, per EIA, with imports declining as Snake River Plain resources and Hells Canyon hydro lead.

 

Key Points

Idaho produced over 80% in-state power from renewables in 2018, led by hydropower, wind, solar, and biomass.

✅ Hydropower supplies about half of capacity; Hells Canyon leads.

✅ Wind provides nearly 20% of capacity along the Snake River Plain.

✅ Utility-scale solar surged since 2016; biomass and geothermal add output.

 

More than 80% of Idaho’s in-state utility-scale electricity generation came from renewable resources in 2018, behind only Vermont, according to recently released data from the U.S. Energy Information Administration’s Electric Power Monthly and broader trends showing that solar and wind reached about 10% of U.S. generation in the first half of 2018.

Idaho generated 17.4 million MWh of electricity in 2018, of which 14.2 million MWh came from renewable sources, while nationally January power generation jumped 9.3% year over year according to EIA. Idaho uses a variety of renewable resources to generate electricity:

Hydroelectricity. Idaho ranked seventh in the U.S. in electricity generation from hydropower in 2018. About half of Idaho’s electricity generating capacity is at hydroelectric power plants, and utility actions such as the Idaho Power settlement could influence future resource choices, and seven of the state’s 10 largest power plants (in terms of electricity generation) are hydroelectric facilities. The largest privately owned hydroelectric generating facility in the U.S. is a three-dam complex on the Snake River in Hells Canyon, the deepest river gorge in North America.

Wind. Nearly one-fifth of Idaho’s electricity generating capacity and one-sixth of its generation comes from wind turbines. Idaho has substantial wind energy potential, and nationally the EIA expects solar and wind to be larger sources this summer, although only a small percentage of the state's land area is well-suited for wind development. All of the state’s wind farms are located in the southern half of the state along the Snake River Plain.

Solar. Almost 5% of Idaho’s electricity generating capacity and 3% of its generation come from utility-scale solar facilities, and nationally over half of new capacity in 2023 will be solar according to projections. The state had no utility-scale solar generation as recently as 2015. Between 2016 and 2017, Idaho’s utility-scale capacity doubled and generation increased from 30,000 MWh to more than 450,000 MWh. Idaho’s small-scale solar capacity also doubled since 2017, generating 33,000 MWh in 2018.

Biomass. Biomass-fueled power plants account for about 2% of the state’s utility-scale electricity generating capacity and 3% of its generation, contributing to a broader U.S. shift where 40% of electricity came from non-fossil sources in 2021. Wood waste from the state’s forests is the primary fuel for these plants.

Geothermal. Idaho is one of seven states with utility-scale geothermal electricity generation. Idaho has one 18-MW geothermal facility, located near the state’s southern border with Utah.

EIA says Idaho requires significant electricity imports, totaling about one-third of demand, to meet its electricity needs. However, Idaho’s electricity imports have decreased over time, and Georgia's recent import levels illustrate how regional dynamics can vary. Almost all of these imports are from neighboring states, as electricity imports from Canada accounted for less than 0.1% of Idaho’s total electricity supply in 2017.

 

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How Alberta’s lithium-laced oil fields can fuel the electric vehicle revolution

Alberta Lithium Brine can power EV batteries via direct lithium extraction, leveraging oilfield infrastructure and critical minerals policy to build a low-carbon supply chain with clean energy, lower emissions, and domestic manufacturing advantages.

 

Key Points

Alberta lithium brine is subsurface saline water rich in lithium, extracted via DLE to supply EV batteries.

✅ Uses direct lithium extraction from oilfield brines

✅ Leverages Alberta infrastructure and skilled workforce

✅ Supports EV battery supply chain with lower emissions

 

After a most difficult several months, Canadians are cautiously emerging from their COVID-19 isolation and confronting a struggling economy.
There’s a growing consensus that we need to build back better from COVID-19, and to position for the U.S. auto sector’s pivot to electric vehicles as supply chains evolve. Instead of shoring up the old economy as we did following the 2008 financial crisis, we need to make strategic investments today that will prepare Canada for tomorrow’s economy.

Tomorrow’s energy system will look very different from today’s — and that tomorrow is coming quickly. The assets of today’s energy economy can help build and launch the new industries required for a low-carbon future. And few opportunities are more intriguing than the growing lithium market.

The world needs lithium – and Alberta has plenty

It’s estimated that three billion tonnes of metals will be required to generate clean energy by 2050. One of those key metals – lithium, a light, highly conductive metal – is critical to the construction of battery electric vehicles (BEV). As global automobile manufacturers design hundreds of new BEVs, demand for lithium is expected to triple in the next five years alone, a trend sharpened by pandemic-related supply risks for automakers.

Most lithium today originates from either hard rock or salt flats in Australia and South America. Alberta’s oil fields hold abundant deposits of lithium in subsurface brine, but so far it’s been overlooked as industrial waste. With new processing technologies and growing concerns about the security of global supplies, this is set to change. In January, Canada and the U.S. finalized a Joint Action Plan on Critical Minerals to ensure supply security for critical minerals such as lithium and to promote supply chains closer to home, aligning with U.S. efforts to secure EV metals among allies worldwide.

This presents a major opportunity for Canada and Alberta. Lithium brine will be produced much like the oil that came before it. This lithium originates from many of the same reservoirs responsible for driving both Alberta’s economy and the broader transportation fuel sector for decades. The province now has extensive geological data and abundant infrastructure, including roads, power lines, rail and well sites. Most importantly, Alberta has a highly trained workforce. With very little retooling, the province could deliver significant volumes of newly strategic lithium.

Specialized technologies known as direct lithium extraction, or DLE, are being developed to unlock lithium-brine resources like those in Canada. In Alberta, E3 Metals* has formed a development partnership with U.S. lithium heavyweight Livent Corporation to advance and pilot its DLE technology. Prairie Lithium and LiEP Energy formed a joint venture to pilot lithium extraction in Saskatchewan. And Vancouver’s Standard Lithium is already piloting its own DLE process in southern Arkansas, where the geology is very similar to Alberta and Saskatchewan.

Heavy on quality, light on emissions

All lithium produced today has a carbon footprint, most of which can be tied back to energy-intensive processing. The purity of lithium is essential to battery safety and performance, but this comes at a cost when lithium is mined with trucks and shovels and then refined in coal-heavy China.

As automakers look to source more sustainable raw materials, battery recycling will complement responsible extraction, and Alberta’s experience with green technologies such as renewable electricity and carbon capture and storage can make it one of the world’s largest suppliers of zero-carbon lithium.

Beyond raw materials

The rewards would be considerable. E3 Metals’ Alberta project alone could generate annual revenues of US$1.8 billion by 2030, based on projected production and price forecasts. This would create thousands of direct jobs, as initiatives like a lithium-battery workforce initiative expand training, and many more indirectly.

To truly grow this industry, however, Canada needs to move beyond its comfort zone. Rather than produce lithium as yet another raw-commodity export, Canadians should be manufacturing end products, such as batteries, for the electrified economy, with recent EV assembly deals underscoring Canada’s momentum. With nickel and cobalt refining, graphite resources and abundant petrochemical infrastructure already in place, Canada must aim for a larger piece of the supply chain.

By 2030, the global battery market is expected to be worth $116 billion annually. The timing is right to invest in a strategic commodity and grow our manufacturing sector. This is why the Alberta-based Energy Futures Lab has called lithium one of the ‘Five big ideas for Alberta’s economic recovery.’  The assets of today’s energy economy can be used to help build and launch new resource industries like lithium, required for the low-carbon energy system of the future.

Industry needs support

To do this, however, governments will have to step up the way they did a generation ago. In 1975, the Alberta government kick-started oil-sands development by funding the Alberta Oil Sands Technology and Research Authority. AOSTRA developed a technology called SAGD (steam-assisted gravity drainage) that now accounts for 80% of Alberta’s in situ oil-sands production.

Canada’s lithium industry needs similar support. Despite the compelling long-term economics of lithium, some industry investors need help to balance the risks of pioneering such a new industry in Canada. The U.S. government has recognized a similar need, with the Department of Energy’s recent US$30 million earmarked for innovation in critical minerals processing and the California Energy Commission’s recent grants of US$7.8 million for geothermal-related lithium extraction.

To accelerate lithium development in Canada, this kind of leadership is needed. Government-assisted financing could help early-stage lithium-extraction technologies kick-start a whole new industry.

Aspiring lithium producers are also looking for government’s help to repurpose inactive oil and gas wells. The federal government has earmarked $1 billion for cleaning up inactive Alberta oil wells. Allocating a small percentage of that total for repurposing wells could help transform environmental liabilities into valuable clean-energy assets.

The North American lithium-battery supply chain will soon be looking for local sources of supply, and there is room for Canada-U.S. collaboration as companies turn to electric cars, strengthening regional resilience.
 

 

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Indian government takes steps to get nuclear back on track

India Nuclear Generation Shortfall highlights missed five-year plan targets due to uranium fuel scarcity, commissioning delays at Kudankulam, PFBR slippage, and PHWR equipment bottlenecks under IAEA safeguards and domestic supply constraints.

 

Key Points

A gap between planned and actual nuclear output due to fuel shortages, reactor delays, and first-of-a-kind hurdles.

✅ Fuel scarcity pre-2009-10 constrained unsafeguarded reactors.

✅ Kudankulam delays from protests, litigation, and remobilisation.

✅ FOAK PHWR equipment bottlenecks and PFBR slippage.

 

A lack of available domestically produced nuclear fuel and delays in constructing and commissioning nuclear power plants, including first-of-a-kind plants and the Prototype Fast Breeder Reactor (PFBR), meant that India failed to meet its nuclear generation targets under the governmental plans over the decade to 2017, even as global project milestones were being recorded elsewhere.

India's nuclear generation target under its 11th five-year plan, covering the period 2007-2012, was 163,395 million units (MUs) and the 12th five-year Plan (2012-17) was 241,748 MUs, Minister of state for the Department of Atomic Energy and the Prime Minister's Office Jitendra Singh told parliament on 6 February. Actual nuclear generation in those periods was 109,642 MUs and 183,488 MUs respectively, Singh said in a written answer to questions in the Lok Sabah.

Singh attributed the shortfall in generation to a lack of availability of the necessary quantities of domestically produced fuel during the three years before 2009-2010; delays to the commissioning of two 1000 MWe nuclear power plants at Kudankulam due to local protests and legal challenges; and delays in the completion of two indigenously designed pressurised heavy water reactors and the PFBR.

Kudankulam 1 and 2 are VVER-1000 pressurised water reactors (PWRs) supplied by Russia's Atomstroyexport under a Russian-financed contract. The units were built by Nuclear Power Corporation of India Ltd (NPCIL) and were commissioned and are operated by NPCIL under International Atomic Energy Agency (IAEA) safeguards, with supervision from Russian specialists, while China's nuclear program advanced on a steady development track in the same period. Construction of the units - the first PWRs to enter operation in India - began in 2002.

Singh said local protests resulted in the halt of commissioning work at Kudankulam for nine months from September 2011 to March 2012, when he said project commissioning had been at its peak. As a consequence, additional time was needed to remobilise the workforce and contractors, he said. Litigation by anti-nuclear groups, and compliance with supreme court directives, impacted commissioning in 2013, he said. Unit 1 entered commercial operation in December 2014 and unit 2 in April 2017.

Delays in the manufacture and supply by domestic industry of critical equipment for first-of-a-kind 700 MWe pressurised heavy water reactors -  Kakrapar units 3 and 4, and Rajasthan units 7 and 8 - has led to delays in the completion of those units, the minister said, as well as noting the delay in completion of the PFBR, which is being built at Kalpakkam by Bhavini. In answer to a separate question, Singh said the PFBR is in an "advance stage of integrated commissioning" and is "expected to approach first criticality by the year 2020."

Eight of India's operating nuclear power plants are not under IAEA safeguards and can therefore only use indigenously-sourced uranium. The other 14 units operate under IAEA safeguards and can use imported uranium. The Indian government has taken several measures to secure fuel supplies for reactors in operation and under construction, amid coal supply rationing pressures elsewhere in the power sector, concluding fuel supply contracts with several countries for existing and future reactors under IAEA Safeguards and by "augmentation" of fuel supplies from domestic sources, Singh said.

Kakrapar 3 and 4, with Kakrapar 3 criticality already reported, and Rajasthan 7 and 8 are all currently expected to enter service in 2022, according to World Nuclear Association information.

 

Joint venture discussions

In February 2016 the government amended the Atomic Energy Act to allow NPCIL to form joint venture companies with other public sector undertakings (PSUs) for involvement in nuclear power generation and possibly other aspects of the fuel cycle, reflecting green industrial strategies shaping future reactor waves globally. In answer to another question, Singh confirmed that NPCIL has entered into joint ventures with NTPC Limited (National Thermal Power Corporation, India's largest power company) and Indian Oil Corporation Limited. Two joint venture companies - Anushakti Vidhyut Nigam Limited and NPCIL-Indian Oil Nuclear Energy Corporation Limited - have been incorporated, and discussions on possible projects to be set up by the joint venture companies are in progress.

An exploratory discussion had also been held with Oil & Natural Gas Corporation, Singh said. Indian Railways - which has in the past been identified as a potential joint venture partner for NPCIL - had "conveyed that they were not contemplating entering into an MoU for setting up of nuclear power plants," Singh said.

 

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