British Columbia just delivered a master class in clean energy deployment. Premier David Eby just announced nine new wind generating projects totaling 5,000 gigawatt hours of new capacity that will be 50 percent Indigenous-owned and generate up to $6 billion in private sector investment.
BC Hydro negotiated profitable power-buying agreements with independent proponents so public money is not needed to add the equivalent of another Site C of generation to the B.C. grid – enough to power 500,000 homes.
And since Eby’s government is prioritizing the urgent deployment of clean energy, particularly with First Nation partners, they are waiving the need for lengthy environmental assessments. This move has the blessing of environmental groups like the Pembina Institute and will potentially shave years off the permitting process. All of these projects are planned to be completed by 2031 or sooner.
Meanwhile in Alberta, things were decidedly more weird, less certain, and a lot more carbon intensive. Celebrity investor Kevin O’Leary released a surreal video to promote his proposed $70 billion natural gas-powered AI data center south of Grande Prairie in what Mr. Wonderful is modestly calling Wonder Valley, “where technology and nature come together in perfect harmony.”
Whether sought-after AI tech talent can be lured from San Francisco to an oil and gas town five hours northwest of Edmonton remains to be seen. What is clear is that Mr. O’Leary does not have $70 billion, nor were committed investors or data center customers included in AI video or press release.
The hopeful hype from O’Leary also comes just a week after the Alberta government said they want to attract $100 billion in AI data centres to the province in the next five years. DeSmog has previously documented how ballooning energy demand from AI is seen by the fossil fuel industry as the next big growth opportunity.
‘Sweet, Natural’ Emissions
In contrast to B.C.’s new wind projects, the “Wonder Valley” press release makes no mention of signed Indigenous equity partnerships, just a vague pledge to “engage with First Nations Indigenous communities to create a mutually beneficial relationship.” The only announceable aspect amidst the Wonder Valley hype was a presumably non-binding letter of intent signed with the Municipal District of Greenview, which has fewer than 9,000 residents in an area about the size of Maryland.
The fanfare announcement seems less about high tech and more about burning natural gas. O’Leary expounded to CBC News on why he is choosing to locate what he calls Canada’s biggest-ever real estate deal in the remote boreal forest at the same latitude as James Bay. “You can do that in Alberta for one singular reason, 200 trillion cubic feet of sweet natural gas that you can burn very efficiently with a two-cycle turbine, practically close to carbon neutral and create unlimited power.”
Really? Combined cycle natural gas turbines emit about 425 grams per kilowatt hour of energy. O’Leary’s planned 7.5 gigawatt of natural capacity would result in about 27 megatonnes of new emissions every year – the equivalent of putting over six million more cars on the road.
Despite few tangible details, Premier Danielle Smith was quick to chime in with her support, calling the project “fantastic news for Alberta.” What is less fantastic is O’Leary’s record of business success, or lack thereof. So spotty are his past business dealings that he garnered exposés in Maclean’s and the National Observer. Also enjoy the Observer’s Max Fawcett’s scathing take-down of the Wonder Valley scheme.
Renewables Kneecapped
While a natural gas-powered data center that may never be built has the full-throated support from Smith, her government last year kneecapped Alberta’s entire renewable energy sector with a surprise six-month moratorium on approvals for all clean energy projects over 1 MW.
With the stroke of the premier’s pen in August 2023, 118 wind, solar and battery storage projects totaling $33 billion in investment and 18 gigawatts of generating capacity were thrown into limbo while her government “studied the problem” of potential impacts on viewscapes, agricultural land and reclamation.
Try to imagine a universe where the Alberta oil patch received such punitive treatment, even though oil and gas wells impact 125 times more land than renewables and their operators have racked up at least $60 billion in unfunded liabilities.
Prior to this policy rug-pull Alberta was attracting three quarters of all renewable energy investment in Canada. This was due to excellent sites for wind and solar generation and a highly skilled labour force, many of whom have been purged from the oil patch due to automation.
The new rules for renewables were finally released this week, which took off the table about 70,000 square kilometers of some of the province’s best wind generation sites. “Our government will not apologize for putting Albertans ahead of corporate interests,” deadpanned Nathan Neudorf, minister of utilities.
Frustrated clean energy entrepreneurs were less enthusiastic. “Last year, there were about 1,000 megawatts of new wind farm projects announced in Alberta, compared to just 50 megawatts this year,” Jeff Fuchs, a senior vice-president with Vestas Wind Systems, told CBC News.
“It’s just like wave after wave of uncertainty and challenge in the [Alberta] market,” added Sol Hutson, general manager of foundation solutions with the solar tracker company Nextracker. “When businesses are faced with those types of uncertainties, they pull back a little bit and they look for other places to invest.”
B.C. is more than happy to fill the investment void created after Alberta succeeded in stymying a booming renewable sector. Speaking at the wind project roll out Premier Eby gloated, “we’re seeing major jurisdictions move away from clean energy…I couldn’t think of better timing for an announcement like today’s with $5 billion to $6 billion of private sector clean energy investment in B.C.”
While his government is also overseeing huge expansions in LNG infrastructure, they should be commended for this rapid and robust deployment of renewable technology – particularly with Indigenous equity partners. “Today … is about delivering, making sure that these projects get shovels in the ground,” said Eby. With more people, jobs and companies coming to B.C., “we need a lot more juice, and that’s what this announcement is about.”
Subscribe to our newsletter
Stay up to date with DeSmog news and alerts