Wind energy companies can now bid on nearly 1.7 million hectares of Crown land in Newfoundland
Bid process will have two main stages
Companies looking to build wind energy projects in Newfoundland are now able to bid for government-owned land.
Industry, Energy and Technology Minister Andrew Parsons said the provincial government is releasing about1.66 million hectares of land across the island for potential wind energy projects — an area about three times the size of Prince Edward Island.
"The department has completed a detailed assessment to determine which land packages will be made available for this first round of the competitive land bid process," he said.
The call for bids is the latest stage in a process that kicked off last July, when the provincial government launched a call for land nominations. That process closed in October, with 31 companies proposing 73 wind energy projects over 3.8 million hectares of land across Newfoundland.
"We removed areas identified where development may be problematic or prohibited such as endangered or sensitive wildlife habitat, protected areas and parks, protected and unprotected watersheds and supplies, mining finds of significance, active mining areas and active farming areas," Parsons said.
The focus of this round of bidding is on wind energy exports — most of which will be hydrogen, according to department officials.
The 'social licence' component
Parsons said the provincial government held public consultations during land nominations and will do more consultation during the bidding process.
"There is a social licence component to this," he said.
He said most communities he's spoken with have been in favour of potential wind projects, largely because of the economic benefits.
He said most public pushback has been focused on one particular project on Newfoundland's west coast. He didn't specify which project he was talking about, but World Energy GH2's proposed project on the Port au Port Peninsula has generated controversy.
"Some of the pushback I've heard, very viable, very realistic questions. People saying, 'You know, I have this concern or that.' I've also heard some that are absolutely ridiculous and not based on any semblance of reality," he said.
Energy N.L. CEO Charlene Johnson, who attended the announcement, said she's pleased with the level of consultation with her organization.
"One of the key pieces of input we had was that there has to be a benefits plan for local content for our members, and what work can be done in Newfoundland and Labrador should be," she said.
2-stage bidding process
Bids will go through a two-stage review process. The first phase, set for March, will look at financing and company experience. The second, which is set to begin in April, will be more in-depth and look at electricity grid connection requirements, community and Indigenous consultation and benefits to the province.
Successful bidders will then get the exclusive right to apply for the Crown land, as long as their project — if it's capable of generating more than one megawatt of energy — passes the environmental assessment process.
Parsons said he hopes to announce a fiscal framework for the projects in "the coming weeks" that will dictate how wind energy companies will pay for using natural resources like water and land.
"A new fiscal framework for wind energy projects will take a balanced approach to ensure that Newfoundlanders and Labradorians share in the financial value from wind and hydrogen projects," he said.
Parsons said he doesn't know how long the process will last.
"We are taking a balanced approach to this new industry. We need to act fast but we need to get it right at the same time," he said.
Parsons said he believes there will be further rounds of land nominations and bidding, and projects that aren't approved could be reworked in the future.
Opposition parties worry about 'rush' process
While speaking with reporters after the announcement, PC Opposition leader David Brazil said he's concerned the provincial government is acting too fast on wind energy.
"We don't know if it's another rush process," he said.
Brazil said he wants more information on the government's plan, including the fiscal framework, community benefits and engagement.
"Our criticism about this whole process — and this whole administration — is about being open and transparent," he said.
However, Brazil said his party is pleased that the provincial government has settled on a land lease process rather than a purchase process.
NDP MHA Jordan Brown said he's pleased the provincial government is moving forward with renewable energy but he questioned whether the provincial government is doing enough to prepare local workers for jobs in wind energy.
"We're looking at proponents that want to deliver in two years and we don't know who's going to build it," he said.
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