DonÂ’t ask for increases, Ontario tells utilities

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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Ontario Industrial Electricity Pricing Reforms aim to cut regulatory burden for industrial ratepayers through an energy concierge service, IESO billing reviews, GA estimation enhancements, clearer peak demand data, and contract cost savings.

Key Points

Measures to reduce industrial power costs via an energy concierge, IESO and GA reviews, and better peak demand data.

✅ Energy concierge eases pricing and connection inquiries

✅ IESO to simplify bills and refine GA estimation

✅ Real-time peak data and contract savings under review

Ontario's government is pursuing burden reduction measures for industrial electricity ratepayers, including legislation to lower rates to help businesses compete, and stimulate growth and investment.

Over the next year, Ontario will help industrial electricity ratepayers focus on their businesses instead of their electricity management practices by establishing an energy concierge service to provide businesses with better customer service and easier access to information about electricity pricing and changes for electricity consumers as well as connection processes.

Ontario is also tasking the Independent Electricity System Operator (IESO) to review and report back on its billing, settlement and customer service processes, building on initiatives such as electricity auctions that aim to reduce costs.

Improve and simplify industrial electricity bills, including clarifying the recovery rate that affects charges;

Review how the monthly Global Adjustment (GA) charge is estimated and identify potential enhancements related to cost allocation across classes; and,

Improve peak demand data publication processes and assess the feasibility of using real-time data to determine the factors that allocate GA costs to consumers.

Further, as part of the government's continued effort to finding efficiencies in the electricity system, Ontario is also directing IESO to review generation contracts to find opportunities for cost savings.

These measures are based on industry feedback received during extensive industrial electricity price consultations held between April and July 2019, which underscored how high electricity rates have impacted factories across the province.

"Our government is focused on finding workable electricity pricing solutions that will provide the greatest benefit to Ontario," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Reducing regulatory burden on businesses can free up resources that can then be invested in areas such as training, new equipment and job creation."

The government is also in the process of developing further changes to industrial electricity pricing policy, amid planned rate increases announced by the OEB, informed by what was heard during the industrial electricity price consultations.

"It's important that we get this right the first time," said Minister Rickford. "That's why we're taking a thoughtful approach and listening carefully to what businesses in Ontario have to say."

Helping industrial ratepayers is part of the government's balanced and prudent plan to build Ontario together through ensuring our province is open for business and building a more transparent and accountable electricity system.

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BC Ferries Island Class hybrid ferries deliver quiet, battery-electric travel with shore power readiness, lower emissions, and larger capacity on northern routes, protecting marine wildlife while replacing older vessels on Powell River and Texada services.

Key Points

Hybrid-electric ferries using batteries and diesel for quiet, low-emission service, ready for shore power upgrades.

✅ Operate 20% electric at launch; future full-electric via shore power

✅ 300 passengers, 47 vehicles; replacing older, smaller vessels

✅ Quieter transits help protect West Coast whales and marine habitat

In a champagne celebration, BC Ferries welcomed two new, hybrid-electric ships into its fleet Wednesday. The ships arrived in Victoria last month, and are expected to be in service on northern routes by the summer.

The Island Aurora and Island Discovery have the ability to run on either diesel or electricity.

"The pressure on whales on the West Coast is very intense right now," said BC Ferries CEO Mark Collins. "Quiet operation is very important. These ships will be gliding out of the harbor quietly and electrically with no engines running, that will be really great for marine space."

BC Ferries says the ships will be running on electricity 20 per cent of the time when they enter service, but the company hopes they can run on electricity full-time in the future. That would require the installation of shoreline power, which the company hopes to have in place in the next five to 10 years. Each ship costs around $40-million, a price tag that the federal government partially subsidized through CIB support as part of the electrification push.

When the two ships begin running on the Powell River to Texada, and Port McNeill, Alert Bay, and Sointula routes, two older vessels will be retired.

On Kootenay Lake, an electric-ready ferry is slated to begin operations in 2023, reflecting the province's wider shift.

"They are replacing a 47-car ferry, but on some routes they will be replacing a 25-car ferry, so those routes will see a considerable increase in service," said Collins.

Although the ships will not be servicing Colwood, the municipality's mayor is hoping that one day, they will.

"We can look at an electric ferry when we look at a West Shore ferry that would move Colwood residents to Victoria," said Mayor Rob Martin, noting that across the province electric school buses are hitting the road as well. "Here is a great example of what BC Ferries can do for us."

BC Ferries says it will be adding four more hybrid ships to its fleet by 2022, and is working on adding hybrid ships that could run from Victoria to Tsawwassen, similar to Washington State Ferries' hybrid upgrade underway in the region. 

B.C’s first hybrid-electric ferries arrived in Victoria on Saturday morning ushering in a new era of travel for BC Ferries passengers, as electric seaplane flights are also on the horizon for the region.

“It’s a really exciting day for us,” said Tessa Humphries, spokesperson for BC Ferries.

It took the ferries 60 days to arrive at the Breakwater District at Ogden Point. They came all the way from Constanta, Romania.

“These are battery-equipped ships that are designed for fully electric operation; they are outfitted with hybrid technology that bridges the gap until the EV charging infrastructure and funding is available in British Columbia,” said Humphries.

The two new "Island Class" vessels arrived at about 9 a.m. to a handful of people eagerly wanting to witness history.

Sometime in the next few days, the transport ship that brought the new ferries to B.C. will go out into the harbor and partially submerge to allow them to be offloaded, Humphries said.

The transfer process could happen in four to five days from now. After the final preparations are finished at the Breakwater District, the ships will be re-commissioned in Point Hope Maritime and then BC Ferries will officially take ownership.

“We know a lot of people are interested in this so we will put out advisory once we have more information as to a viewing area to see the whole process,” said Humphries.

Both Island Class ferries can carry 300 passengers and 47 vehicles. They won’t be sailing until later this year, but Humphries tells CTV News they will be named by the end of February. 

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Hydro One CEO Salary shapes debate on Ontario electricity costs, executive compensation, sunshine list transparency, and public disclosure rules, as officials argue pay is not driving planned hydro rate cuts for consumers.

Key Points

Hydro One CEO pay disclosed in public filings, central to debates on Ontario electricity rates and transparency.

✅ 2016 compensation: $4.5M (salary + bonuses)

✅ Excluded from Ontario's sunshine list after privatization

✅ Government says pay won't affect planned hydro rate cuts

The $4.5 million in pay received by Hydro One's CEO is not a factor in the government's plan to cut electricity costs for consumers, an Ontario cabinet minister said Thursday amid opposition concerns about the executive's compensation and wider sector pressures such as Manitoba Hydro's rising debt in other provinces.

Treasury Board President Liz Sandals made her comments on the eve of the release of the province's so-called sunshine list.

The annual disclosure of public-sector salaries over $100,000 will be released Friday, but Hydro One salaries such as that of company boss Mayo Schmidt won't be on it.Though the government still owns most of Hydro One — 30 per cent has been sold — the company is required to follow the financial disclosure rules of publicly traded companies, which means disclosing the salaries of its CEO, CFO and next three highest-paid executives, and financial results such as a Q2 profit decline in filings.

New filings show that Schmidt was paid $4.5 million in 2016 — an $850,000 salary plus bonuses — and those top five executives were paid a total of about $11.7 million. 

"Clearly that's a very large amount," said Sandals. Sandals wouldn't say whether or not she thought the pay was appropriate at a time when the government is trying to reduce system costs and cut people's hydro bills.

Mayo Schmidt, President & CEO of Hydro One Limited and Hydro One Inc. (Hydro One )

But she suggested the CEO's salary was not a factor in efforts to bring down hydro prices, even as Hydro One shares fell after a leadership shakeup in a later period. "The CEO salary is not part of the equation of will 'we be able to make the cut,"' she said. "Regardless of what those salaries are, we will make a 25-per-cent-off cut." The cut coming this summer is actually an average of 17 per cent -- the 25-per-cent figure factors in an earlier eight-per-cent rebate.

NDP Leader Andrea Horwath, who has proposed to make hydro public again in Ontario, said the executive salaries are relevant to cutting hydro costs.

"All of this is cost of operating the electricity system, it's part of the operating of Hydro One and so of course those increased salaries are going to impact the cost of our electricity," she said.

Schmidt was appointed Aug. 31, 2015, and in the last four months of that year earned $1.3 million, but the former CEO was paid $745,000 in 2014. About 3,800 workers were paid over $100,000 that year, none of whom will be on the sunshine list this year.

Progressive Conservative energy critic Todd Smith has a private member's bill that would put Hydro One salaries back on the list, amid investor concerns about Hydro One that cite too many unknowns.

"The Wynne Liberals don't want the people of Ontario to know that their rates have helped create a new millionaire's club at Hydro One," Smith said. "Hydro One is still under the majority ownership of the public, but Premier Kathleen Wynne has removed these salaries from the public's watchful eye."

The previous sunshine list showed 115,431 people were earning more than $100,000 — an increase of nearly 4,000 people despite the fact 3,774 Hydro One workers were not on the list for the first time.

Tom Mitchell, the former CEO at Ontario Power Generation who resigned last summer, topped the 2015 list at $1.59 million.

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EU Energy Price Crisis drives soaring electricity bills as natural gas sets pay-as-clear power prices; leaders debate price caps, common gas purchasing, market reform, renewables, and ETS changes amid Ukraine war supply shocks.

Key Points

A surge in gas-driven power costs linked to pay-as-clear pricing, supply shocks, and policy rifts across the EU market.

✅ Gas sets marginal power price via pay-as-clear mechanism

✅ Spain pushes decoupling and temporary price caps

✅ EU weighs joint gas buying, efficiency, more renewables

Nothing grabs politicians' attention faster than angry voters, and they've had plenty to be furious about as natural gas and electricity bills have soared to stomach-churning levels in recent months, as this UK natural gas analysis illustrates across markets.

That's led to a scramble to figure out ways to get those costs down, with emergency price-limiting measures under discussion — but that's turning out to be very difficult, so the likeliest result is that EU leaders meeting later this week won't come up with any solutions.

“There is no single easy answer to tackle the high electricity prices given the diversity of situations among Member States. Some options are only suitable for specific national contexts,” the European Commission said on Wednesday. “They all carry costs and drawbacks.” 

The initial problem was a surge in gas demand in Asia last year coupled with lower-than-normal Russian gas deliveries that left European gas storage at unusually low levels. Now the war in Ukraine is making matters even worse, as pressure grows for the bloc to rapidly cut its imports of Russian oil, coal and natural gas — although some national leaders reject the economic costs that would entail.

"We will end this dependence as quickly as we can, but to do that from one day to the next would mean plunging our country and all of Europe into a recession," German Chancellor Olaf Scholz warned on Wednesday.

The problem for the bloc is that its liberalized electricity market is tightly tied to the price of natural gas; power prices are set by the final input needed to balance demand — called pay-as-clear — which in most cases is set by natural gas. That's led to countries with large amounts of cheaper renewable or nuclear energy seeing sharp spikes in power prices thanks to the cost of that final bit of gas-fired electricity.

A Spanish-led coalition that includes Portugal, Belgium and Italy wants deep reforms to the EU price model, fueling a broader electricity market revamp debate in Brussels.

Others, such as the Netherlands and Germany, strongly oppose such an approach, echoing how nine countries oppose reforms at the EU level, and want to focus on cushioning the effects of the high prices on consumers and businesses, while letting the market operate. 

A third group, largely in Central Europe, wants to use the price spike to revamp or scrap the bloc's Emissions Trading System and to rethink its Fit for 55 climate legislation.

The European Commission has been holding the middle ground — arguing that the current market model makes sense, but encouraging countries to boost the amount of renewable electricity, in a wake-up call to ditch fossil fuels for Europe, to cut energy use and increase efficiency.

In draft conclusions of this week's European Council summit, seen by POLITICO, EU leaders, amid a France-Germany tussle over reform, call for things like a common approach to buying gas, aimed at preventing countries from competing against each other. But there's no big movement on electricity prices.

“It does not seem realistic to expect a result on the energy discussion at this European Council,” one diplomat said, stressing that the governments will need to see more analysis before committing to any more steps.

Looking for action
Spain wanted a much more robust response. Madrid has been arguing since last summer for “decoupling” gas from the electricity market; together with Portugal, it also mulled limiting the wholesale price of electricity to €180 per megawatt-hour — a proposal that Spain abandoned under fire from industry and consumer groups. 

Now Madrid is pushing to get a specific permission in the summit's final conclusions that would allow countries to voluntarily apply certain short-term solutions such as gas price cap strategies, according to a draft with track changes seen by POLITICO.

The issue with a cap is if gas prices are higher than the cap, Spain might not be able to buy any gas.

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New England Clean Energy Connect advances despite court delays, installing steel poles on a Maine corridor for Canadian hydropower, while legal challenges seek environmental review; permits, jobs, and grid upgrades drive the renewable transmission project.

Key Points

An HV line in Maine delivering 1,200 MW of Canadian hydropower to New England to cut emissions and stabilize costs.

✅ Appeals court pauses 53-mile new section; upgrades continue

✅ 1,200 MW hydropower aims to cut emissions, stabilize rates

✅ Permits issued; environmental review litigation ongoing

Construction on part of a $1 billion electricity transmission corridor through sparsely populated woods in western Maine is on hold because of legal action, echoing Clean Line's Iowa withdrawal amid court uncertainty, but that doesn't mean all building has been halted.

Workers installed the first of 829 steel poles Tuesday on a widened portion of the existing corridor that is part of the project near The Forks, as the groundwork is laid for the 145-mile ( 230-kilometre ) New England Clean Energy Connect, a project central to Maine's debate over the 145-mile line moving forward.

The work is getting started even though the 1st U.S. Circuit Court of Appeals delayed construction of a new 53-mile ( 85-kilometre ) section.

Three conservation groups are seeking an injunction to delay the project while they sue to force the U.S. Army Corps of Engineers to conduct a more rigorous environmental review.

In western Maine, workers already have staged heavy equipment and timber “mats” that will be used to prevent the equipment from damaging the ground. About 275 Maine workers already have been hired, and more would be hired if not for the litigation, officials said.

“This project has always promised to provide an economic boost to Maine’s economy, and we are already seeing those benefits take shape," Thorn Dickinson, CEO of the New England Clean Energy Connect, said Tuesday.

The electricity transmission line would provide a conduit for up to 1,200 megawatts of Canadian hydropower, reducing greenhouse emissions and stabilizing energy costs in New England as states pursue Connecticut's market overhaul to improve market design, supporters say.

The project, which would be fully funded by Massachusetts ratepayers to meet the state's clean energy goals after New Hampshire rejected a Quebec-Massachusetts proposal elsewhere, calls for construction of a high-voltage power line from Mount Beattie Township on the Canadian border to the regional power grid in Lewiston, Maine.

Critics have been trying to stop the project, reflecting clashes over New Hampshire hydropower in the region, saying it would destroy wilderness in western Maine. They also say that the environmental benefits of the project have been overstated.

In addition to the lawsuit, opponents have submitted petitions seeking to have a statewide vote, even as a Maine court ruling on Hydro-Quebec exports has reshaped the legal landscape.

Sandi Howard, a leading opponent of the project, said the decision by the company to proceed showed “disdain for everyday Mainers” by ignoring permit appeals and ongoing litigation.

“For years, CMP has pushed the false narrative that their unpopular and destructive project is a ‘done deal’ to bully Mainers into submission on this for-profit project. But to be clear, we won’t stop until Maine voters (their customers), have the chance to vote,” said Howard, who led the referendum petition drive for the No CMP Corridor PAC.

The project has received permits from the Army Corps, Maine Department of Environmental Protection, Maine Land Use Planning Commission and Maine Public Utilities Commission.

The final approval came in the form of a presidential permit issued last month from the U.S. Department of Energy, providing green light for the interconnect at the Canadian border, even as customer backlash to utility acquisitions elsewhere underscores public scrutiny.

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