Tidal power company tanks Bay of Fundy project over federal red tape

A lack of support from the federal government is hindering the growth of the tidal industry in Nova Scotia, claims a company that recently pulled its application to expand its tidal development in the Bay of Fundy.

Last month, Sustainable Marine Energy — a company with operations in Nova Scotia, Scotland and Germany — told the Department of Fisheries and Oceans (DFO) it wouldn’t be following through on its proposed tidal project following years of back and forth with the department. And some in the industry say it’s an issue that is hindering tidal power expansion as a whole.

Sustainable Marine’s project is a collaboration with the Fundy Ocean Research Centre for Energy (FORCE), a non-profit organization focused on tidal energy research in the Bay of Fundy, which has the highest tides in the world. Sustainable Marine has an existing tidal project in Grand Passage in the Bay of Fundy near Digby, which has been connected to Nova Scotia’s grid since 2022. The company had proposed to expand that project and move it to FORCE’s location in the Minas Passage, higher up in the Bay of Fundy where there are existing subsea cables for grid connection. In 2020, the project received almost $30 million from Natural Resources Canada — the largest government investment in tidal power.

Tidal works much like wind power: underwater turbines rotate to produce energy depending on the strength of the current. Projects are often situated on the seafloor. However, Sustainable Marine’s project has its turbines mounted on a barge in Grand Passage, and the eventual move to the Minas Passage would expand that same technology.

CEO Jason Hayman said the project was undermined by government red tape. Despite providing ample environmental monitoring data and trying to work with DFO, Hayman said the department categorized the project as high risk while “not providing any real justification” or path forward.

The company studied the marine environment extensively and monitored fish and marine life at the current site with the help of other organizations and experts, Hayman said, adding the monitoring showed there would be no harm to fish or other marine animals.

DFO responds

DFO says it has authorized four tidal projects in the Bay of Fundy for Sustainable Marine in the past. A statement from spokesperson Jeff Woodland said the department has “developed a clear regulatory pathway to guide proponents through the process.”

“We have a responsibility to make sure that good projects go ahead,” said Woodland, adding DFO must uphold the Fisheries and Species at Risk acts. Companies proposing tidal projects are required to submit a monitoring plan to help the department evaluate potential impacts on fish and their habitat, he added.

Two at-risk species — the white shark and inner Bay of Fundy Atlantic salmon — are present in the Minas Passage where Sustainable Marine’s new project is proposed, an area with especially low visibility, said DFO.

Nova Scotia Premier Tim Houston weighed in on the news last month, taking to Twitter to call out the federal government for its lack of support for tidal power.

In a statement to Canada’s National Observer, he called the news a “massive blow to the tidal industry in our region.”

“I’m incredibly disappointed in our federal government and their unconcerned attitude towards an opportunity to green our grid,” he said.

“... From a provincial perspective, there is nothing standing in the way of this project. Our government will continue to advocate for this project and hope common sense prevails.”

Industry-wide issue

Compared to other renewables like hydro, wind and solar, tidal power is less developed and there have been setbacks for the industry in Nova Scotia. While the immense energy potential of the Bay of Fundy presents an opportunity for tidal, the strength of the tide can also be a barrier.

A 1,300-tonne turbine has sat dormant on the ocean floor since 2018 after a company called OpenHydro filed for liquidation following the turbine breaking beyond repair two months after connecting to the province’s grid. In 2021, Nova Scotia Power shut down its tidal generating station after its generator failed and DFO stepped in, saying the project harmed fish. The fishing industry unsuccessfully went to court to overturn a tidal approval due to concerns around wildlife monitoring and has questioned the industry’s impacts on fish and other sea creatures as a whole.

The industry is well aware of the setbacks, said Lindsay Bennett, executive director at FORCE. She describes the state of tidal being where wind and solar were 10 to 15 years ago but stresses that it’s an energy source worth pursuing.

The Minas Passage has approximately 7,000 megawatts of energy potential, enough to power all two million homes in Atlantic Canada, and 2,400 MW could be extracted without having negative impacts on sea level, said Bennett.

“There's an understanding that [tidal devices] may pose some level of risk to marine life. And really, that risk needs to be considered against the very clear risk from the effects of climate change,” she said.

“In the last 10 years of initial research, there have been no observations of a marine mammal or seabird colliding with a turbine. The limited number of interactions with fish in close proximity to a turbine haven't resulted in any obvious harm.”

Tidal power presents tremendous potential in the Bay of Fundy, said Bennett, which is nestled between New Brunswick and Nova Scotia, provinces struggling to get renewables on board.

As of 2019, 51 per cent of Nova Scotia’s electricity generation was coal, 22 per cent was natural gas and three per cent came from biomass and geothermal energy. Last month, the provincial government handed the maximum possible fine to its privately owned electrical utility for missing a renewable energy target: $10 million. Meanwhile, greenhouse gas emissions grew in New Brunswick last year, where the energy mix is 38 per cent nuclear, 22 per cent hydropower, 15 per cent natural gas and 14 per cent coal. The remaining is a combination of wind, biomass and petroleum.

Giving up on tidal research is the wrong move, said Bennett, who worries Sustainable Marine’s experience will set a precedent going forward.

“If there's not change going forward, and greater predictability in what the regulatory process is, we're very concerned that they may not be the last,” said Bennett.

“And that could have very serious impacts and effects on our organization, but also … [on] this great opportunity to demonstrate and learn about tidal energy and, harnessing this resource that we have in the Bay of Fundy.”