Ottawa pitches Atlantic Loop as grand plan for clean energy, with few details

First, there was the Atlantic bubble. Now, there's movement to knit the region closer together with the "Atlantic Loop," a catchy phrase that the federal Liberals presentedin the speech from the throne Wednesday, promising grand ideas about a future of clean energy in Atlantic Canada.

The AtlanticLoop, however, earned just a one-line mention in the speech, as a plan"that will connect surplusclean power to regions transitioning away from coal."

Natural Resources Minister Seamus O'Regan, who is also the MP for St. John's South-Mount Pearl, clarified on Thursday the transmission projectis meant to replace the Maritimes' coal supply with hydroelectricity from Labrador and Quebec, an idea that requires a significant infrastructure investment.

"We would build transmission lines to tie the Labrador-Quebec grid into New Brunswick, and then into Nova Scotia," O'Regantold CBC News.

Nova Scotia is already set to receive a chunk of hydroelectricity from Labrador'sMuskrat Falls via the underwater Maritime Link, as part of the province'sefforts to lower its fossil fuel dependence.

But Labrador MP Yvonne Jones saysthe loop could carrythe excess 300 megawatts or so of Muskrat Falls power that has not yet been spoken for, and require more besides.

"It provides future opportunities for us to do other hydro development projects in Labrador, and I think that's the key here," Jones told CBC News.

While the Atlantic Loop may be new phrasing, the idea of aregional electric system is not, and was outlined in a federal government report in 2018 on regional electricity co-operation.

More power generation?

Jones saysthe big item for Labrador isthe possibility of another, new hydroelectricity generation project: Gull Island, which has long been floated as a potential dam on the Churchill River and which was set aside in favour of developing a smaller project at Muskrat Falls.

"The Atlantic Loop is going to require a lot of hydro power," said Jones, who in an interviewcould not put a figure on that power requirement.

"There will be a requirement for new projects and for new alternatives and that puts Labrador back in the driver's seat, in terms of whether we go forward with additional hydro developmentprojects or not."

Jones acknowledgedhydroelectric projects are a touchy subject in Newfoundland and Labrador.

"Iknow that in Labrador and in the province there will be tremendous apprehension toward future hydro development projects when you see what has happened from Muskrat Falls," she said.

Power flowed from the Muskrat Falls dam into the Labrador electricity grid Tuesday for the first time, a milestone in the project that has been marked by massive cost overruns, construction delays stretching into years,and a public inquiry into its sanctioning.

"Muskrat Falls was a very poorly executed project and very poorly managed project throughmost of its lifetime in construction. So if anything, hopefully we've learned some lessons," she said.

But Labrador isn't the only potential player in Atlantic Loop clean power. Jones says Quebec with its deep hydroelectric expertise would also be involved, and there would also be room for New Brunswick to harness the powerful tides of the Bay of Fundy.

"You're going to see a lot more research being done on tidal power," she said.

Both industry and the federal government havepoured time and money into potential Fundy projects in the past, with one failed turbine stranded on the bay's floor since 2018.

Out of the loop?

O'Regan said there has been behind-the-scenes work done on the Atlantic Loop already, including with Quebec, a province whose energy relations with Newfoundland and Labrador have been historically frosty and involved multiple court battles over hydroelectric power from Churchill Falls.

"We've been working with Quebec and with Maritimes energy ministers on this," said O'Regan. "There is a great deal of enthusiasm for the Atlantic Loop."

It appears Newfoundland and Labrador's premier and energy minister have not yet been brought into the loop. In a St. John's newsconference Thursday, Premier Andrew Furey said any details on the new planwere too premature to discuss.

"We ... heard the mention of it yesterday in the speech from the throne, but Iam excited that Newfoundlandand Labradorcan be that green battery that drives potentially though Quebec, potentially through our existing assets, potentially through upgrades. I'm speculating here about what this could look like," said Furey.

"This is very new," said Andrew Parsons, the minister of industry, energy and technology, adding that he like reporters heard about it in the speech from the throne.

The so-far vague idea has created a lot of questions, even for clean energy insiders.

• Ottawa commits $30M for tidal power project in Bay of Fundy
• Nova Scotia will not meet 2020 renewable energy target
• Scathing Muskrat Falls inquiry report lays blame on executives
• Barring any more disruptions, Muskrat Falls should be completed a year from now

"Is this investment for something that already exists? So, support for the Muskrat Fallsproject, which we of course need, or is it something additional to that? Does it open new doors?" said Kieran Hanley, the executive director of the Newfoundland and Labrador Environmental Industry Association.

"[There's] a lot of interest to what this is, but no answers."

Neither Jones nor O'Reganhad timelines attached to the Atlantic Loop project, and Jones said there would be details coming in the "next couple of months" as to who major players could be in the plan.

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