Boston, Massachusetts and Halifax, Nova Scotia--(Newsfile Corp. - May 4, 2023) - A cross-border coalition of seven developers of offshore wind, green hydrogen, and power transmission solutions has formed to call for greater offshore wind collaboration between the United States and Canada. The New England - Maritimes Offshore Energy Corridor (NEMOEC) Coalition has issued a study exploring the potential for a shared offshore transmission corridor that will enable the broad decarbonization goals of the region while also serving as an essential grid reliability asset on both sides of the border.
The new white paper is titled "A New England - Maritimes Offshore Energy Corridor Builds Regional Resilience for a Clean Energy Future." The paper, authored by energy system experts at Power Advisory LLC and DNV, concludes that building a 2,000 megawatts HVDC subsea transmission corridor to link Nova Scotia with population centers in New England would support up to $780 million USD in annual benefits to ratepayers across both regions if it is used to interconnect offshore wind resources in Canadian and US waters. This Can-Am corridor yields material cost savings to consumers and promises positive returns for investors. There is strong potential for those benefits to scale with more energy transfer capability.
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The Market Opportunity
Offshore wind is an abundant and renewable energy source that has the potential to power millions of homes and businesses. New England states have already procured nearly 5,000 megawatts of offshore wind, projects that are expected to come online in the next 2-4 years. However, the continued deployment of offshore wind projects on both sides of the border will be severely limited by transmission constraints without a more coordinated approach. The Massachusetts Energy Pathways to Deep Decarbonization report identifies at least 30,000 megawatts of offshore wind will be needed to meet the region's decarbonization goals, with new wind energy areas expected to be leased by the US Federal Government in the Gulf of Maine in 2024. North of the border, Nova Scotia officials have announced a goal to lease offshore areas to support up to 5,000 megawatts of offshore wind development beginning in 2025. Connecting these two energy resources offers a mutual value proposition to consumers in eastern Canada as well as the northeastern states by providing enhanced capacity benefits, streamlined and shared investments that reduce costs, and reduced reliance on price- volatile fossil fuel generation.
The Proposal
The white paper highlights the benefits of deploying a modular, multiterminal high voltage direct current (HVDC) subsea transmission solution with the capability of supporting bidirectional energy flows over roughly 1,000 kilometers between the two regions. This proposed solution is scalable and can be expanded incrementally in 2,000 megawatt blocks as deployment in the region grows in the future. Typically, offshore wind projects connect to shore using individual, or radial, lead lines. This can result in multiple cable corridors that disrupt the ecosystem and fishing activities, as well as suboptimal use of existing Points of Interconnection (POIs), forcing subsequent developments to carry the burden of high onshore upgrade costs. By streamlining transmission infrastructure in the offshore environment, disruption and stakeholder impacts due to cable corridors are significantly reduced. Onshore interconnection facilities can be better optimized, and upgrade costs can be shared across multiple projects or substantially reduced. The application of HVDC transmission technology unlocks cost-effective development in areas further from shore while also providing essential grid support services and reducing the width of cable corridors relative to alternating current (AC) cable technology.
"When you take a step back and look at the big picture, it's difficult to see how the region meets its 2050 goals without employing this solution, and others like it," said coalition spokesperson, Abby Watson. "Our white paper clearly demonstrates the benefits and the feasibility of this interregional approach. We look forward to working with policymakers, regulators, and other stakeholders to advance these technical solutions."
What Comes Next
The NEMOEC Coalition's white paper outlines the need for policy and regulatory reforms to support Can-Am interjurisdictional transmission planning and offshore wind development. These reforms should include new ways of valuing the benefits of interregional transmission and associated changes to cost allocation rules, the development of coordinated transmission planning processes that consider cross-border cooperation, and the establishment of technical standards for HVDC offshore transmission networks.
The Coalition plans to continue its stakeholder-first approach to developing workable solutions to these challenges, refine the corridor scope based on forthcoming details of proposed lease areas in the Gulf of Maine and Nova Scotia, and conduct additional technical and economic studies. Alignment between regulators and policymakers around a long-term vision for the future of the region will be essential to the success of the NEMOEC project.
About the Coalition
The Founding Members of the NEMOEC Coalition include US and Canadian developers committed to driving the sustainable development of offshore wind, green hydrogen, and the transmission resources they require in the New England - Maritimes region.
The Founding Members are:
Atlantic Canada Offshore Development - ACOD is a Joint Venture between CIP and Shell Canada formed to explore the potential for commercial-scale offshore wind development in Atlantic Canada.
Bear Head Energy - Bear Head Energy, a wholly-owned subsidiary of BAES Infrastructure, is developing a large-scale green hydrogen and ammonia production, storage and loading facility that expects to source the majority of its renewable energy from onshore and offshore wind power. Backed by BAES Infrastructure, the facility is located in the Point Tupper Industrial Park on the Strait of Canso on Cape Breton Island, Nova Scotia.
DP Energy - DP Energy has over 30 years' experience in the development, construction, and operation of renewable energy assets globally. With 1GW of energy projects already built and operational, DP Energy has an pipeline of over 7GW of wind and solar energy projects across Ireland, the UK, Australia and Canada, with 750MW due to enter construction in 2023.
Grid United - Grid United has a mission to do just what our name implies - unite the North American electric grid by building new long-distance, interregional transmission lines to ensure access to low-cost power when and where it is needed. We are focused solely on accelerating the much-needed expansion and modernization of North America's transmission infrastructure to build a more reliable grid, create good-paying jobs, and deliver low-cost, clean energy to businesses and communities across the continent.
Hexicon - Hexicon is an early-stage project developer in floating wind, opening new markets in deep water areas, and a technology provider with a patented floating wind design - TwinWind. Floating wind can quickly be deployed at scale, to support the electrification of society at large. Hexicon operates in several markets across Europe, Africa, Asia, and North America.
Northland Power - Northland Power is a Canadian global power producer dedicated to accelerating the clean energy transition by producing electricity from renewable resources. Founded in 1987, Northland owns and manages a diversified generation mix including offshore and onshore renewables, and efficient natural gas, as well as supplying energy through a regulated utility.
TotalEnergies SBE US - TotalEnergies SBE US is a partnership between TotalEnergies and the Simply Blue Group to develop floating offshore wind projects in the United States. The joint venture combines TotalEnergies' deep experience with floating structures and large project management, with Simply Blue's unique and specific experience with floating wind development. The partnership emphasizes robust engagement with stakeholders and first in class technical experience.
To download a copy of the white paper, visit www.nemoec.com.
Media and other inquiries should be sent to info@nemoec.com.
Contact:
Contact Name: Abby L. Watson
Email: info@nemoec.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/164856
