NTL: Northwest Transmission Line gets critical subsidy

B.C. will build $404m power line now that Ottawa’s committed funding

Blair Lekstrom, B.C. minister of energy and mines. (Photograph by: CNS files)/b>

The province promised it will push ahead with construction of the $404-million transmission line through northwestern B.C. following Prime Minister Stephen Harper's announcement Wednesday that the federal government would cover up to $130 million of the cost.

Harper made the announcement during his visit to Washington, heralding the line as a step towards building "a more efficient electricity grid, [and] increasing our use of clean and renewable sources of energy generation."

Gavin Dirom, CEO of the Association for Mineral Exploration B.C., said the electricity provided by the line has the potential to unlock $15 billion in private investment for the region and thousands of jobs.

The funding, Harper said, would come out of the federal government's green infrastructure fund and serve as a possible first move in establishing a power link between Canada and Alaska.

Blair Lekstrom, provincial minister of energy and mines, said the federal government's $130-million promise was all B.C. has been waiting for to make a commitment to build the 335-kilometre, 287-kilovolt line, which will have the potential to serve several proposed mining projects in the region, one of which is edging towards approval for construction.

"We made a commitment to build the Northwest Transmission Line and we are going to to do that," Lekstrom said in an interview, "and this announcement ... allows us to move forward with that."

With the federal government funding commitment, the line's potential cost to the province is up to $274 million.

Lekstrom said his ministry is in discussion with possible private-sector partners in the project.

He said he couldn't name any at this point nor suggest how big their financial commitments would be, however Finance Minister Colin Hansen said there could be as much as $90 million in private-sector support for the line.

Initial plans to construct the northwest line collapsed when Teck Resources Ltd. shelved its plans to participate in construction of the Galore Creek mine in the region in conjunction with Vancouver company NovaGold.

That project was to contribute some $180 million to construction of the power line and plans were thrown into jeopardy without the contribution.

The line is proposed to stretch from Terrace to Meziadin Junction on Highway 37, then further north to the tiny community of Bob Quinn Lake, south of Dease Lake.

The B.C. Transmission Corp. is preparing an application for the project's environmental review. If that proceeds as planned, construction on the line could start in 2010 and the line could be in service by 2012.

Mining groups, independent power producers and industrial-development proponents applauded the federal commitment and provincial promise, though critics countered that the power line project will be anything but green.

Pierre Gratton, CEO of the Mining Association of B.C., said his group would like to see the power line stretched further, but that this will be a good step that boosts the potential for development.

"There's an estimated dozen or so [mining] projects that become much more viable with this line," he said in an interview.

Some of that investment may come from independent run-of-river power projects that could tap into the line, according to Harvey Campbell, chairman of the Independent Power Association.

"That wire coming in is going to open up potential on any number of fronts," Campbell said.

However, Tom Hackney, vice-president for policy of the B.C. Sustainable Energy Association, said there are more promising areas of the province for developing independent power projects than the northwest that are closer to big population centres.

Eric Swanson, corporate campaigner for the Dogwood Initiative, argued that the line will lead to a massive increase in energy consumption in Northern B.C. rather than tap new green energy sources.

"This transmission line is about electrifying coal and metal mines more than it is about clean, green energy," Swanson said in a news release.

depenner@vancouversun.com

Harper pledges $130-million for northern B.C. power line

Project could eventually connect with Alaska in bringing clean energy alternatives to communities and industry in the region (Getty Images)

The B.C. government is promising a new power transmission line will deliver an economic jolt for the province's remote northwest corner after the federal government pledged a share of the construction funds.

“We're going to build the Northwest Transmission Line,” said Blair Lekstrom, the province's minister of energy, mines and petroleum resources.

Prime Minister Stephen Harper announced Wednesday that the project will be eligible for up to $130-million in green infrastructure funds as part of “Canada's commitment to clean energy.”

But the project still faces significant hurdles: An environmental assessment process has not been completed, a share of private-sector financing has not been secured, and it appears that the project needs the approval of the B.C. Utilities Commission.

Buoyed by the cash commitment from Ottawa, Mr. Lekstrom brushed those details aside, saying the environmental assessment can be turned around in 180 days: “It would be my hope we could see shovels in the ground as early as next year.”

The 335-kilometre line would extend B.C. Hydro service to sparsely populated communities along Highway 37 from Terrace, but mostly, the project is geared to stimulating economic activity along the corridor.

Proponents say the project would unlock investment in a string of potential new mines, while promoting clean energy by reducing reliance on diesel generators.

Environmentalists scoffed at the notion that the project is green. “This transmission line is about electrifying coal and metal mines more than it is about clean, green energy,” said Eric Swanson, a campaigner for the environmental group the Dogwood Initiative.

“If everyone is unemployed, I don't think the air they breathe is going to matter much,” Mr. Lekstrom retorted. “The key is finding a balance that works for everyone.”

The B.C. Mining Association and other business interests praised the announcement.

“This particular project is paramount to the province's development,” said John Winter, president of the B.C. Chamber of Commerce.

Pierre Gratton, head of the B.C. Mining Association, said the transmission line could stimulate up to $15-billion worth of investment in the coming decade.

“The northwest is being held back by a lack of access to power,” he said. “There are a dozen or so mining projects that, without access to power, are much more expensive to bring into operation. This makes them much more viable.”

The line will cost an estimated $404-million to build.

Finance Minister Colin Hansen said he expects to land $90-million in private sector financing now that Ottawa has stepped up, and the project would not increase the government's deficit because the remaining costs will be paid for by a self-sustaining Crown corporation, BC Hydro.

“It is great news for all of us and we can move ahead with all due haste,” he said. “This is going to open up a whole quarter of the province.”

John Horgan, the New Democratic Party critic for energy, isn't sure the financial plan stands up.

“There's no business plan, there's no private sector partner and there is no environmental approval,” Mr. Horgan said.

The project has been to the altar before.

Two years ago, the province put the proposal on hold after private sector financing fell apart. At one point B.C. had a $158-million commitment from Teck Resources Ltd. and NovaGold Resources Inc.

The two companies want to build Galore Creek, which would be Canada's biggest copper mine, and the transmission line is a key component. However, the project is stalled as the companies wrestle with total development costs at more than $5-billion.

Red Chris, a copper and gold mine proposed by Imperial Metals Corp., also would require the power line. Red Chris still faces a legal challenge from environmental groups.

Brian Kynoch, president of Imperial, said the government's investment will help his company raise the money to build the project.

The two mines would emit several hundred thousands tonnes of carbon dioxide equivalent, which scientists link to global warming.

But Mr. Lekstrom said the power line would also open up potential small green hydro projects as well as eliminate the need for diesel power in small towns in the region.

About 3,000 tonnes of carbon dioxide equivalent would be eliminated in two towns, home to several hundred people.

Transmission line to power northwest B.C.

A transmission line in northwest B.C. will benefit mining projects, such as the Galore Creek copper-gold mine. (Photograph by: Handout, The Province)

Power to help residents, spur commercial run-of-river projects

B.C.'s Northwest is about to be electrified in a big way.

Prime Minister Stephen Harper announced Wednesday the federal government would help fund a new 287-kilovolt line extending 335 kilometres from Terrace to Cranberry Junction and north to Bob Quinn Lake.

The $400-million line will provide access to the electricity grid for customers while supporting the economic diversification of the area, long an argument of supporters of the project.

It is also a step in connecting Alaskan and Canadian power grids as the U.S. and Canada move toward cleaner sources of energy.

"Our government is supporting environmentally-sound infrastructure and initiatives that promote cleaner, greener energy," said the prime minister.

"The Northwest Transmission Line (NTL) will facilitate the development of green energy and help provide British Columbia's northern and remote communities with more sustainable and affordable power."

The NTL will also open up commercial opportunity for the development of green power by way of run-of-river projects and help to reduce the reliance on diesel in communities that do not have electric power.

Currently, remote communities and mining operations rely on diesel fuel for energy. Once the NTL is in place, it is projected to reduce greenhouse-gas emissions by 208,000 tonnes of CO2 a year -- the equivalent of almost 35,000 cars.

According to the Mining Association of British Columbia, the NTL is also expected to bring $15 billion in economic investment to the area and create 10,700 jobs.

It will also allow more development, including mining.

"We think this is a terrific step in the right direction and we are pleased to see this federal support come in and we think it can be meaningful in terms of both the run-of-river green-power projects, but also mining projects like our own Galore Creek with Teck [Resources],"
said Greg Johnson, vice-president of strategic development for NovaGold Resources.

Residents in communities up and down Highway 37 were also pleased.

"It will set the stage for development because it removes uncertainly for billion of dollars of potential capital investment, thousands of potential jobs, and it is focused on an area that obviously needs it," said Prince George Mayor Dan Rogers.

Said Terrace Mayor Dave Pernarowski: "We just feel this type of infrastructure development is absolutely imperative for Northwest B.C.'s continued success."

Byng Giraud, general-secretary of the Highway 37 Powerline Coalition, has waited for more than a decade to see the NTL get funded.

"This means there will be power to places in the province that have never even had electricity and that lack of power has also prevented any kind of industry coming."

The funding will be a shared effort with up to $130 million coming from the federal government. The province has committed up to $250 million and another $10 million toward an environmental assessment and First Nations consultation.

"Today's announcement brings a new power line in northern B.C. one step closer to reality, which is excellent news for northern British Columbia and B.C.'s mining industry," said Pierre Gratton, president and CEO of the Mining Association of B.C.

clareogilvie@telus.net

PROVINCIAL AND FEDERAL PARTNERSHIP TO ELECTRIFY THE NORTH

VICTORIA – The Northwest Transmission Line will now go ahead with the announcement of $130 million committed by the Government of Canada through the Green Infrastructure Fund, announced Blair Lekstrom, Minister of Energy, Mines and Petroleum Resources.

“We are pleased that the federal government has recognized the importance of the Northwest Transmission Line and we are pushing ahead with the $404 million NTL that will open mining and energy opportunities in the northern part of the province,” said Lekstrom. “NTL will help communities in the region transition away from diesel generation and reduce greenhouse gas emissions.”

This is an important step towards building a powerline that has the potential to generate billions of dollars in capital investment, create thousands of new jobs and open economic opportunities on a global scale in the Northwest.

The Province has already invested $10 million to support the environmental assessment and First Nations consultation process. The new 287-kilovolt line will extend 335 km from Terrace to Meziadin Junction and north to Bob Quinn Lake, providing access to the electricity grid for customers while supporting the economic diversification of the area.

The project could support the development of a number of new mines, take advantage of the vast mineral potential in that region and help realize the potential of the Prince Rupert Fairview Container Terminal. It will also support the development of clean, renewable electricity projects in the region. Expanding transmission along highway 37 could stimulate thousands of jobs and billions of dollars worth of economic activity for British Columbia.

B.C. is recognized as a clean energy powerhouse and this project will help British Columbia to reach its goal of curbing greenhouse gas emissions by 33 per cent by 2020.

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Contact:
Jake Jacobs
Ministry of Energy, Mines and Petroleum Resources
250 952-0628
250 213-6934 (cell)

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