Nova Scotia to get tidal energy centre

Nova Scotia is setting up a $10-million research facility to test underwater turbines toconvert tidal energy into electricity.

Three Canadian companies have been selected to field test their experimental technologies in the Bay of Fundy, home of the highest tides in the world.

Premier Rodney MacDonald made the announcement Tuesday in Parrsboro.

"It's said that harnessing this made-in-Nova Scotia green energysourcecould power a minimum of 100,000 homes," he said.

That's about10 per centof the electrical grid. However, thatvision will only become a reality if these demonstration projects arefollowed by a commercial development of 200 turbines.

The first step a strategicenvironmental assessment of the Minas Channel is underway.

Energy MinisterRichard Hurlburt said ice, fishing activity and sediment could all affectcompanies investing inunderwater turbines.

"We need to understand the possible effects these machines may have on theenvironment. We maynot find the best design for some time, but we must move quicklyto meetthe challenges of climate change," Hurlburt said.

The three companies chosen for the project are Minas Basin Pulp and Power, Nova Scotia Power and B.C.-based Clean Current.

Minas Basin Pulp and Paper is partnering with UEK Hydrokinetic Turbine, while Nova Scotia Power isaligned with OpenHydro Turbine of Ireland.

The companieswill spend between $10 million and $15 million on their test turbines, the first three of whichare expected to hitthe water in the fall of 2009.

Positive results from one design could create jobs in Cumberland County in maintaining and even manufacturing components of underwater turbines.

The provincehas earmarked$4.7 million for the tidal energy centre, while EnCana isputting forwarda $3-million interest-free loan.