analysis of tidal energy market in canada

Analysis of tidal energy market in Canada

This DELIVERABLE is part of the project ELBE+ which has received funding from the European Union’s COSME Programme (2014-2020)

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Contents:

01. Ocean Energy Policy

02. Tidal Energy Market Outlook

03. Key Stakeholders

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• National strategies

• Market incentives

• Public funding programs

• Consenting process



European Strategic Cluster Partnership in Blue Energy

Good context for the development of wave energy, with national plans, market incentives, …

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Ocean Energy Policy

• The Bill C-69, passed by the Senate on June 2019, includes new legislation for the energy sector through the Canadian Energy Regulator Act, the Impact Assessment Act and the Canadian Navigable Waters Act

• Concerning ocean energy, the national strategy has been built upon the Marine Renewable Technology Roadmap

• Furthermore, some individual provinces, such as Nova Scotia and British Columbia have drawn up their own marine policies, including incentives and targets to encourage the use of marine renewable energy in the next years

• As electrical power generation in Canada is under provincial jurisdiction, each province has it’s own incentive scheme

• Nova Scotia and British Columbia have developed their own market incentives to support marine renewable energies

Canada has adapted the energy legislation in order to speed up energy transition and foster renewable energies

National strategies

Market incentives


… as well as funding opportunities, mainly from Natural Resource Canada

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Ocean Energy Policy

• The Federal Government invested CAN$ 2.3 billion in 2017 in order to support the Pan-Canadian Framework for Clean Growth and Climate Change and the Canada´s Innovation and Skills Plan

• Moreover, several funding programs from Natural Resource Canada have been opened to (but not exclusively dedicated to) help develop and support innovation for marine renewable energies

• As well as public funding programs, some government corporations offer programs to stimulate, among others, marine renewable projects

• At the federal level, there is no specified sequential process for marine energy project authorizations

• The federal rules dedicated to guide ocean management are more oriented to the protection of coastal environments and oceans

• At the provincial level, Nova Scotia is the only territory with a clearly defined consenting process, coordinated by a Federal / Provincial One Window Committee on In-Stream Tidal Energy projects

Public funding programs

Consenting process

Natural Resource Canada’s public funding programs are opened to a wide range of agents, such as research associations and private companies, which must be validly registered in Canada

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• Potential resource

• Installed and expected capacity

• Current projects and planned deployments

• Test sites

• Main R&D projects



Canada has some of the world’s best sites for tidal stream energy development, with 42,000 MW of mean potential

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Canada’s tidal energy resource potential

Source: Marine Renewables Canada, MHK Atlas

Tidal Energy Market Outlook – Potential Resource

In fact, 191 sites have been identified in Canada with a potential mean power greater than 1MW

Hudson Bay, Frobisher Bay and Labrador

British Columbia

• More than 80% of Canada´s potential tidal resource is in

Hudson bay, Frobisher bay, Labrador and other Artic zones

• However, these regions are constantly impacted by ice and

other harsh environmental conditions

• Furthermore, the delivery of tidal energy devices,

infrastructures and personnel to such remote

environments is complicated

• British Columbia is the province with the highest number

of potential sites* in Canada (89)

• Some of the highest velocity tidal current flows occur in

the passages between the Strait of Georgia and Johnstone

Strait

Nova Scotia • Bay of Fundy, located in Nova Scotia, is one of the most

interesting sites worldwide to test tidal energy devices

• Around 160 billion tones of water flow in and out of the

Bay of Fundy each tide, the estimated flow of all world’s

freshwater rivers combined

• FORCE test site is located in Bay of Fundy, one of the most

relevant tidal energy test sites in the world

*Potential site: sites with a tidal mean power greater than 1MW

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2

3

1

2

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ProvincePotential Tidal Energy (MW)

Number of Sites*

Average Size

(MW)

Northwest Territories

35 4 9

British Columbia 4,015 89 45

North Quebec 4,288 16 268

Nunavut 30,567 34 899

New Brunswick 636 14 45

PEI 33 4 8

Nova Scotia 2,122 15 141

Newfoundland 544 15 36

TOTAL 42,240 191 221

Nunavut and N. Quebec are the provinces with the most potential resource, but also with the hardest environmental conditions

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Canada’s tidal energy resource potential by province

Tidal Energy Market Outlook – Potential Resource

The Minas Channel, in Nova Scotia, is one of the most recognized locations for tidal energy devices testing and development

*Number of sites: sites with a tidal mean power greater than 1MW

Hudson Bay, Frobisher Bay and Labrador

Minas Channel2,009 MW

Digby Gut70 MW

Petit Passage9.5 MW

Grand Passage4.5 MW

Great Bras d’Or Channel1.1 MW

Nova Scotia’s most significant tidal energy sites

Source: Marine Renewables Canada, MHK Atlas

British Columbia’s most significant tidal energy sites


Actually, there are three operational tidal energy projects in Canada, with 10.8 MW of total capacity

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Tidal energy projects and total capacity (MW, 2021)

Tidal Energy Market Outlook – Installed and expected capacity

Five tidal energy projects have been cancelled since 2015, with more than 1,100 MW of total capacity

Source: GlobalData, OES, FORCE

Operational

Under development

Decommissioned

1,103.1

36.6

26.5

10.8

5

10

7

3

-1

1

3

5

7

9

11

0

5

10

15

20

25

30

35

40

45

50

Cancelled Decommissioned Under Development Operational

Total Capacity (MW) Number of Projects

Tidal energy projects location

• Dent Island Tidal Power Generation Project 0.5 MW4

• Canoe Pass Tidal Power Project 0.5 MW4

• Canoe Pass Tidal Power Project II 0.5 MW4

• Yourbrook Energy Systems Tidal Project 0.5 MW4

• Race Rocks Tidal Energy Project 0.065 MW4

• Annapolis Royal Tidal Power Plant 20 MW 4

• Halagonia Nova Scotia Tidal Power Plant 9 MW 4

• Black Rock-TRITON Tidal Power Plant 5 MW 4

• Blomidon Peninsula Tidal Energy Plant 5 MW 4

• Parrsboro Tidal Power Plant 4.5 MW 4

• MP Tocardo Tidal Power Plant 4.5 MW 4

• BigMoon Tidal Project 4 MW 4

• Cape Sharp Tidal Project 2 MW 4

• Bay of Fundy-Jupiter Tidal Project 2 MW 4

• Digby Gut Tidal Power Plant 1.95 MW 4

• Nova Petit Passage Tidal Power Project 1.5 MW 4

• Sustainable Marine Energy Tidal Project 1.26 MW 4

• Minas Passage Tidal Power Plant 1 MW 4

• Petit Passage Tidal Power Plant 0.5 MW 4

• Apqak Tidal Energy Project 10 MW 4

Nunavut Nova Scotia

British Columbia

Nova Scotia

British Columbia

Nunavut


Two out of three tidal energy operational projects are located in Nova Scotia and one in British Columbia

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Tidal energy projects detail (1/2)

Tidal Energy Market Outlook – Current projects and planned deployments

Moreover, three projects are scheduled to be deployed in Nova Scotia in 2021, while Apqak Tidal Energy Project is the first tidal energy project that will be developed in Nunavut


LocationProject NameCapacity

(MW)

Halagonia Nova Scotia Tidal Power

Plant9

Nova Scotia

Sustainable Marine Energy Tidal

Project1.3

Nova Scotia

Yourbrook Energy Systems Tidal

Project0.5

British Columbia

Apqak Tidal Energy Project

Nunavut 10

Parrsboro Tidal Power Plant

4.5Nova Scotia

Minas Passage Tocardo Tidal Power Plant

4.5Nova Scotia

Bay of Fundy-Jupiter Tidal

Project2

Nova Scotia

BigMoon Tidal Project

4Nova Scotia

Nova Petit Passage Tidal Power

Project1.5

Nova Scotia

Canoe Pass Tidal Power Project II

0.5British

Columbia

Operational

Under development

Decommissioned


(MW)


Most of the decommissioned projects were retired after completing open sea testing activities

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Tidal energy projects detail (2/2)

Tidal Energy Market Outlook – Current projects and planned deployments

Despite the fact that Annapolis Royal Tidal Plant was the third biggest tidal power plant in the world, it was closed due to an order of the Department of Fisheries and Oceans of Canada



(MW)

Annapolis Royal Tidal Power Plant

20Nova Scotia

Black Rock-TRITON Tidal Power Plant

Nova Scotia

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Blomidon Peninsula Tidal

Energy Plant5

Nova Scotia

Digby Gut Tidal Power Plant

2Nova Scotia

Cape Sharp Tidal Project

2Nova Scotia

Minas Passage Tidal Power Plant

1Nova Scotia

Dent Island Tidal Power Generation

Project0.5

British Columbia

Petit Passage Tidal Power Plant

0.5Nova Scotia

Canoe Pass Tidal Power Project

0.5British

Columbia

Race Rocks Tidal Energy Project

British Columbia

0.1

Operational

Under development

Decommissioned


(MW)


There are 4 tidal energy test facilities in Canada, with Nova Scotia as the province with the highest number of sites (2)

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Tidal energy test sites in Canada

Source: Ocean Energy Systems Annual Report 2019, Government of Canada, FORCE

Tidal Energy Market Outlook – Test Sites

There is just one open sea test site (FORCE), whereas the other testing facilities are located in onshore pavilions and laboratories

Aquatron LaboratoryHalifax, Nova Scotia

Fundy Ocean Research Center for Energy’s Test Site (FORCE)

Minas Passage, Bay of Fundy, Nova Scotia

Canadian Hydrokinetic Turbine Test Center

Winnipeg River, Manitoba

Ocean, Coastal and River Engineering Research Center

St. John, Newfoundland and Labrador

Ottawa, Ontario


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Tidal Energy Market Outlook – Test Sites

Fundy Ocean Research Center for Energy (FORCE) is Canada´s leading research facility for tidal stream technology

FORCE has received financial contributions from the Government of Canada, the Province of Nova Scotia, the Offshore Energy Research Association, as well as from other private developers

Fundy Ocean Research Center for Energy (FORCE) overview

• Funded in 2009, FORCE is a non-for-profit grid-connected in-

stream tidal energy test facility located in Minas Passage, Bay of

Fundy (Nova Scotia), intended to allow developers, regulators,

scientists and academics to study and demonstrate the

performance of in-stream tidal energy turbines and their

interactions with the environment

• FORCE collaborates with industry, government, community

stakeholders, right-holders and the scientific community to

explore tidal energy potential solutions carrying out the

following activities:

• Environmental Monitoring

• Applied Research

• Infrastructure and Permitting

• Engagement

E

ADCP: Acoustic Doppler Current Profilers


Canada has invested 9.5M CAD in four tidal R&D projects in 2020, for private companies, universities and research centers

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Canada’s federal government marine renewable energy R&D supporting projects in 2020

Source: Natural Resources Canada

Tidal Energy Market Outlook – Main R&D projects

These investments continue the Government of Canada’s effort to foster marine renewable energy, in order to lead the industry worldwide

Recipient Typology Project Description Funded Amount (CAN$ M) Funding Program

MRE Research Center / Association

MRE Research Center / Association

University

Private Company

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2

2

1.5Clean Growth in Natural

Resources Program

Emerging Renewable Power Program

Emerging Renewable Power Program

Energy Innovation Program

“Research and development of a tidal turbine array using sub-sea tidal technology in the Bay of Fundy”

“Advance in the research on river hydrokinetic and in-stream tidal energy technologies”

“Research the environmental effects monitoring solution for the instream tidal energy industry of Canada, including fishing and marine interactions with tidal devices”

“Outline a plan to assess the encounter risk for fish with tidal devices and create a tool to support the regulatory authorization process for tidal energy projects”

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• Industrial value chain

• R&D agents and capabilities

• Other relevant agents in the value chain

• Main events


The tidal energy value chain in Canada presents a complex ecosystem, with many TEC designers and manufacturers

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Tidal energy value chain in Canada

Source: Marine Renewables Canada, Canada’s Ocean Supercluster, GlobalData

Key Stakeholders – Industrial value chain

R&D AgentsDesign of

TEC DevicesEquipment

ManufacturersProject

DevelopersProject Owners

Government Institutions

• Natural Resources Canada

• National Research Council Canada

MRE Research Centers and Associations

• Fundy Ocean Research Center for Energy

• Acadia Tidal Energy Institute

• Institute for Ocean Research Enterprise

• Offshore Energy Research Association

• Sustainable Oceans Applied Research

Universities

• Dalhousie University

• University of Manitoba

• University of Victoria

• University of New Brunswick

• Memorial Univ. of Newfoundland

• Apqak Renewable Energy

• Big Moon Canada

• Canoe Pass Tidal Energy C.

• Digby Gut Ltd. Ptr.

• DP Energy

• Fundy Tidal

• Halagonia Tidal Energy

• Halcyon Tidal Power

• Jupiter Hydro

• Nova Innovation

• Nova Scotia Power

• Sustainable Marine Energy Canada

• WWTurbine

• Apqak Renewable Energy

• Big Moon Canada

• Digby Gut Ltd. Ptr.

• DP Energy

• Emera Inc.

• Fundy Tidal

• Halagonia Tidal Energy

• Halcyon Tidal Power

• Jupiter Hydro

• Nova Innovation Canada


• WWTurbine

• Yourbrook Energy Systems

• Allswater Marine

• AOE Accumulated Ocean Energy

• Bigmoon Power

• DP Energy

• Go With The Flow Technologies

• HydroQuest

• Instream Energy Systems

• Jupiter Hydro

• Mavi Innovations


• Orbital Marine Power

• Ocean Renewable Power Canada

Converters

• Andritz Hydro GmbH Canada

• Big Moon Canada Corp.

• Blue Energy

• GE Power

• InCurrent Turbines

• Instream Energy Systems Corporation

• Jupiter Hydro


• New Energy Corporation


• Ocean Renewable Power Canada


• Tribute Resources

• Water Wall Turbine

• Waterotor Energy Technologies

• Yourbrook Energy Systems

Other Equipment

• Allsawater Marine

• DOF Subsea Canada

• I.H. Mathers

• Lengkeek Vessel Engineering

• QS Atlantic

Energy Evacuation Infrastructure

• Allswater Marine

• Andritz Hydro GmbH Canada

• Big Moon Power

• Go With The Flow Technologies

• Jupiter Hydro


• ORPC

Support Agents

Federal Regulation

• Canada Energy Regulator

Energy Policy Supporting

Organizations

• Natural Resources Canada

• Impact Assessment Agency of Canada

• BC Hydro

• Nova Scotia Power

Other Agents (associations,

clusters)

• Marine Renewables Canada

• Canada’s Ocean Supercluster

• Innovate BC

• Fundy Energy Research Network

• Maritimes Energy Association


Regarding TEC manufacturers, Horizontal Axis Turbine is the most used technology (44% over total)

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TEC manufacturers in Canada by technology

Source: Marine Renewables Canada, Canada’s Ocean Supercluster, GlobalData


Blue Energy Canada, Ocean Renewable Power Canada (ORPC), Sustainable Marine Energy Canada (SME), Nova Innovation and Waterotor are the most developed TEC manufacturers in Canada

3

1

5

7

Other*

Oscillating Hydrofoil

Vertical Axis Turbine

Horizontal Axis Turbine

*Other: Enclosed Tips, Archimedes Screw, Tidal Kite

44%

19%

6%

% over total

31%

Horizontal Axis Turbine

Vertical Axis Turbine

Oscillating Hydrofoil

Other


Tidal energy companies could take advantage of mining companies and isolated communities looking for renewable solutions

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Potential niches for tidal energy companies

Source: Natural Resources Canada –The Atlas of Canada, CIRNAC/ISC


Mining companies and remote communities close to the river / sea may be interested in tidal energy solutions in order to reduce their carbon emissions

Mining Companies Remote and Isolated Communities

Minerals and Mining extraction points in Canada

Remote Communities in Canada

There are more than 1,200 Canadian mining and exploration companies, seeking to add renewable sources for their energy supply, due to the introduction of the Canadian Carbon Tax in 2018

Top 10 Mining Companies in Canada by Revenue (CAN$, 2020)

First Quantum Minerals Ltd.

6.9B

Teck Resources Ltd.8.9B

Barrick Gold Corp.16.9B

Nutrien Ltd.28.2B

Kinross Gold Corp.5.6B

B2Gold Corp.2.4B

Lundin Mining Corp.2.7B

Kirkland Lake Gold Ltd.

3.3B

Agnico Eagle Mines Ltd.

4.2B

Centerra Gold Inc.2.3B

Over 280 communities in Canada – home to approximately 200,000 people – are not connected to the North American electrical grid and natural gas distribution pipeline systems. These remote, or off-grid, communities primarily rely on expensive diesel fired generation, while others rely on smaller local or regional electricity grids based on trucked-in liquefied natural gas (LNG).

In spite of the challenges, many remote communities in Canada are exploring opportunities in renewable energies to improve electricity reliability and reduce carbon emissions.


5 universities and 5 MRE research centers are the main marine renewable energy R&D agents in Canada

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Main marine renewable energy R&D agents in Canada

Source: NRCan, NRCC, Ocean Energy Systems

Key Stakeholders – R&D agents and capabilities

While Acadia Tidal Energy Institute (ATEI), Institute for Ocean Research Enterprise (IORE) and Offshore Energy Research Association (OERA) are recognized marine energy research centers in Canada,

Fundy Ocean Research Center for Energy (FORCE) is one of the leading tidal research facilities worldwide

Government Institutions

MRE Research Centers and Associations

Universities


Besides R&D, other agents are focused on fostering collaboration and information exchange

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Other tidal energy relevant agents in Canada

Source: MRC, OERA, FERN, COS, MEA

Key Stakeholders – Other relevant agents in the value chain

Some of the agents above, such as Marine Renewables Canada, organize national events in order to connect governments, industry and academia

The Fundy Energy Research Network is anindependent non-profit organization createdas a forum to coordinate and fostercollaboration, capacities and informationexchange to advance knowledge,understanding and technical solutionsrelated to the tidal energy development

The Maritimes Energy Association works tohelp enable sustainable growth anddevelopment within the energy sector,supporting companies, research institutesand government in the transition to newrenewable energies, marine energy amongothers

Innovate BC is a crown agency of BritishColumbia, which funds entrepreneurialsupport programs in the province. Theagency is focused on the support oftechnology startups, in which oceantechnologies are included

Marine Renewables Canada (MRC) is thenational industry association for wave, tidal,offshore wind and river current energy,representing technology and projectdevelopers, utilities, researchers, as well asbusinesses in the marine and energy supplychain

Canada’s Ocean Supercluster is an industry-led transformative cluster model that isdriving cross-sectoral collaboration,accelerating innovation, and growingCanada’s ocean economy, including waveand tidal energy


Canada will host several renewable energy related events in 2021, some of them virtual due to the COVID-19 restrictions

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Tidal energy related upcoming events in Canada 2021

Source: Marine Renewables Canada, ICMEMCP

Key Stakeholders – Main Events

Some of the conferences and events may not have a specific focus on tidal energy, but tidal energy will have a significant importance in panel discussions and exhibitions

Event & Location

Marine Renewables

Canada Virtual

Mission to ICOE 2021

H2O Home to Overseas

Conference

April 28-30, 2021

June 7-10, 2021

Virtual

Virtual

International Conference on Marine Energy

and Marine Current Power

June 15-16, 2021

Toronto, Ontario

9th

International Conference & Exhibition on Clean Energy

International Conference

on Green and Renewable

Energy

August 9-11, 2021

October 4-6,

2021

Ottawa, Ontario

Vancouver, British Columbia

Marine Renewables Canada 2021

Annual Conference

November 24-25, 2021

Halifax, Nova Scotia

Event & Location

analysis of tidal energy market in canada

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