N.L. government looking to sell idle Buchans energy plant

The Newfoundland and Labrador government is looking to offload a long-idle power plant in central Newfoundland, and says it's hearing interest from a renewable energy company that plans to double the plant's former output.

Industry, Energy and Technology Minister Andrew Parsons said the Buchans generation station, which hasn't been operational since 2014, can be put to better use.

"It's sitting there idle and the conversation we're about to have is what we intend, or hope to see, done with it," Parsons said.

Last week the province issued a non-binding letter of intent to a consortium, which includes Qalipu First Nation, Qalipu Holdings LP, Angler Solutions and St. John's-based renewable power company Growler Energy.

Growler Energy CEO Robert Woolgar says he's worked in the energy sector for 30 years and is familiar with many of the province's assets, but Buchans stands out in particular because it's the community where his wife is from.

"Growler — being a renewable energy company and this being a smaller plant — there could be a spot there for us to help support and basically get the plant back operational," said Woolgar.

Taking over a plant with existing infrastructure is enticing, he adds: these days, there's more interest in decarbonization and electrification, especially at a time when the public utility is looking to increase its energy capacity.

"Having these resources there that really just need somebody to come in and basically get them operational again, that adds value," said Woolgar.

Much of the necessary plant infrastructure is already in place, he said, including the dam and reservoir.

"You're not creating that new asset more than just basically getting an aging asset back to operations."

Woolgar said the company could double or even triple the plant's energy generating capabilities, which was previously 1.8 megawatts.

It will still take time before Growler Energy and the government make a deal, said Woolgar. Before they shake hands, they'll need to complete a feasibility study and carry out community engagement.

If they strike a deal, first energy could be produced in late 2028, which would be sold back to the province through a power purchase agreement.

'Big win here'

Parsons called the possible deal a "win-win," as Newfoundland and Labrador Hydro doesn't have plans for the Buchans plant.

The Buchans community is supportive of the plan, he said, adding that the Qalipu First Nation are involved in the proposal.

"What we're doing is allowing [Growler Energy] to start the feasibility study to figure out what this will entail. So again, I think it's a great move all around," Parsons said.

Parsons added the province is always going to be looking for more power for residential growth and commercial growth.

"This is a big win here. And the work itself will be undertaken by a private company using their funds, and then they'll work out to see if there's an affordable power-purchase agreement with Hydro. Hydro is not going to pay just anything for this. It has to be reasonably priced."

Parsons said if the Buchans plant sits there, the province will be responsible for its decommissioning, deconstruction and cleanup.

"That's why I'd like to see the site become operational again and bring all the benefits that these things do," he said.

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