fei canada national conference conference st_ john's/09… · fei canada national conference...
TRANSCRIPT
FEI Canada National ConferenceDerrick Sturge, VP‐Finance & CFO
June 7, 2012
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Presentation Outline
1. Nalcor Energy Corporate Profile2. NL Energy Plan3. Muskrat Falls Project
Nalcor Energy – Corporate Profile
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Nalcor Energy
Newfoundland and Labrador Hydro
Oil & Gas
Churchill Falls
Bull Arm Fabrication
Lower Churchill Project
Energy Marketing
NL Energy Plan
• Long‐term vision for developing NL’s Energy Warehouse• Creation of Nalcor Energy• Relevant Energy Plan objectives:
– Meeting island electricity needs with least‐cost alternative
– Re‐investing wealth from non‐renewable oil resources into renewable projects
– Replacing 490 MW Holyrood oil‐fired plant with non‐emitting alternative
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NL Energy Warehouse
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Project overview• Project Components:
– 824 MW Muskrat Falls hydro‐electric generation facility– Transmission connection back to Churchill Falls– 1,100 km Labrador‐Island Transmission Link – 500 MW Maritime Link connecting NL to NS
• Least cost solution to meet NL electricity requirements– Stabilize NL electricity rates – No future dependence on oil‐fired generation
• Provides Nalcor with access to Maritime and NE markets• Contribute to achievement of renewable energy targets in NS• Displace 2.5 M tonnes/year of GHG in NL & NS
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Muskrat Falls Project
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Muskrat Falls, Labrador Island Link and Maritime Link
Maritime Transmission Link • 500 MW capacity• Includes 180 km undersea link from Cape Ray NL to Cape Breton NS
• Construction cost $1.2 billion• Ownership 100% Emera
Muskrat Falls Generation• 824 Megawatt hydro‐electric facility• Two dams, one powerhouse• 60 km reservoir• Construction cost $2.9 billion• Ownership 100% Nalcor
Labrador‐Island Transmission Link• 900 MW capacity• Muskrat Falls to St. John’s area• 1,100 km, including 30 km under Strait of Belle Isle• Construction cost $2.1 billion• Ownership 71% Nalcor, 29% Emera
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National Benefits• Interprovincial electricity grid integration • Unlock the energy potential of the region• Significant contribution to lower GHG emissions • Enables development of other renewable generation• Labour and business income of $3.5 billion• Taxes to federal government $535 million• 47,000+ person years of employment
– 21,000+ in Atlantic Canada (9,100 in Direct Employment)– 12,000+ in Quebec– 11,000+ in Ontario
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Current Project Status
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• Approaching Decision Gate 3 / Sanction • SNC‐Lavalin engaged as EPCM Consultant
Engineering proceeding• Environmental processes under way
EA release for generationEIS submitted for transmission
• Innu Nation IBA and land claims agreements executed• RFP’s for several key project contracts issued• Water Management Agreement with Churchill Falls• Commitment from Canada to provide a Loan Guarantee• Early works in Labrador commenced April 2012
Thank You
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