Province OKs conversion of coal plant to natural gas

Four years after putting the kibosh on a plan to convert the city’s coal-fired generating station to natural gas, the province has given it the go-ahead once again.

On Tuesday the Ontario government confirmed the Mission Island plant’s two remaining coal-burning units will begin the conversion process in 2011, with the work expected to be completed within three years, ahead of the province’s self-imposed deadline to wean itself off coal-produced power.

Gary Shchepanik, chief steward for the Power Workers Union, said the move is a welcome one, a decision that should save up to 120 jobs at the plant.

"We’ve had a lot of turnover, about 50 per cent over the last five years. So we’ve got a lot of young people at our plant and this will secure their future so they can stay in Thunder Bay and retire," Shchepanik said.

When the current Liberal government was first elected in 2003, one of its first mandates was to shutter Ontario’s five coal-fired generation station, part of its clean-energy policy. The decision threatened both the plant in Thunder Bay and one in Atikokan.

Earlier this year the province announced the latter facility would be converted to biomass, but though rumours persisted, there was no confirmation the Thunder Bay plant would survive.

It was a worrisome time, Shchepanik said, adding those concerns seem now to be permanently in the past.

"As you know, three or four years ago we had the gas line on the ground. But the dynamics were different back then. We were still trying to save coal from a provincial point of view. But (natural gas) has come back. It’s a great fuel, it’s easily convertible at our station, it’s relatively cheap and it will certainly protect the assets that we’ve spent money on already."

The Thunder Bay Generating Station has been in operation since 1963, and cost $27.3 million. It had an original capacity of 100 megawatts. By 1982 two more units were in place, each capable of generating 163 megawatts of electricity, allowing the original unit to be retired in 1984. All told they’ve invested more than $600 million in the facility.

Chris Fralick, who takes over as TBGS plant manager on Dec. 1, said the conversion will produce power that’s 50 per cent cleaner than the station’s current capability, removing most of the sulfur dioxide emissions that come with coal.
 
Fralick, who said the Thunder Bay conversion should create 100 construction jobs, said the timing of the conversion of each burner will be done carefully.

The plants are used to supplement energy needs in Northwestern Ontario, he reminded, not be the sole producer of power.

"We’ll be timing the conversion at times of the year when hydroelectric would be in peak demand, so that our generation wouldn’t be called upon as often," he said, adding that with three burners in the region – two in Thunder Bay and one in Atikokan – there shouldn’t be a shortage should the plants be called upon.

"The combined three burners provide a back-up peak energy supply, so we can manage our outages within those three units to provide energy when needed and get the conversion projects done."

MPP Bill Mauro (Lib., Thunder Bay-Atikokan) said he’s spent six to seven years pushing to keep both plants in his riding open.

It was never a slam dunk, he said, but called it a good move for several reasons.

"The plant is staying open, it’s a major asset. It maintains a tax base in the community, keeps jobs and creates construction jobs within the plant and the bigger piece is the potential to attract more industry, more investment and more jobs," he said.

Energy Minister Brad Duguid called it a major milestone in the province’s electricity history, but his quote, issued in a release, suggests a decided lack of awareness of the situation.

"By replacing dirty coal with cleaner, renewable sources of power, we are bringing clean energy jobs to Ontario and giving future generations cleaner air to breathe."

Natural gas is not a renewable source of energy.