Power Workers' Union Report Shows Economic and Environmental Benefits of Extending Operation at the Atikokan Biomass Generating Station
TORONTO, March 31, 2022 /CNW/ - Today, the Power Worker's Union (PWU) released an independent analysis of the economic and environmental benefits that would result from the continued operation of Northwest Ontario's, 205 MW, renewable biomass-fueled Atikokan Generating Station (AGS). The station's contract with Ontario's Independent Electricity Operator, the agency responsible for ensuring the reliability of the province's electricity system, expires in 2024.
The analysis, "Extending Atikokan Biomass Generating Station (AGS) Operations: A Need and Benefits Impact Assessment", prepared by Strategic Policy Economics, recommends that Ontario take immediate steps to extend and enhance the operations of the station. The assessment established a clear need for additional, low-carbon electricity to meet the growing demands in the Northwest over the coming decades and the Station's ability to cost-effectively meet it.
The station, fueled by locally manufactured wood pellets, supports over 250 jobs in the electricity, forestry, and transportation sectors; bioeconomy research at nearby academic institutions; and, the production of low-carbon peak, intermediate, and baseload electricity.
Key findings include: The station is a major contributor to the NW economy providing 20% of the Town of Atikokan's employment and 45% of its tax base; Its continued operation would also deliver greater economic benefits to the region and the province compared to a new gas-fired station and additional transmission – reduced ratepayer costs, avoided natural gas imports, more jobs, and an additional $46M/year in GDP. The assessment also demonstrated that tripling the station's production would deliver even more benefits.
Reliability in the NW is deteriorating due to growing local demand-more development, new mines and electrification, retiring supply, and the region's increasing dependence on the E-W tie line and the provincial grid. While the 650 MW E-W tie line may be sufficient to marginally meet the Independent Electricity System Operator's (IESO) 2026 forecast demand for the NW, there is little reserve capacity available to meet the IESO's reference case for naturally occurring demand after 2026. With over 350 MW of demand originating north and west of Atikokan, extending AGS's operations can help offset some of this need while reducing planning risks for the entire region. The cost of extending operations at the AGS is estimated to be 20% less than the total system cost to commission and operate a new combined cycle gas turbine (CCGT) station.
For the past two decades, the Power Workers Union (PWU) has advocated for the ongoing operation of the AGS and expanded support for the local biomass supply chain. Recently, the Common Voice Northwest (CVNW) Energy Task Force (ETF) stated that the IESO's plan did not adequately consider the region's energy and economic needs. Other local stakeholders, such as the Town of Atikokan and the members of the biomass supply chain have expressed similar concerns.
"Northwest Ontario's renewable, low-carbon biomass resources represent major economic and environmental opportunities for the region and province." stated Jeff Parnell, President of the Power Workers', "We can't afford to overlook the resulting jobs, new innovations, and clean power."
Follow this link to learn more: "Extending Atikokan Biomass Generating Station (AGS) Operations: A Need and Benefits Impact Assessment" Report.
The Power Workers' Union (PWU) is a proud Canadian Union, representing over 17,000 highly skilled and dedicated men and women in Ontario's electricity sector. PWU Members work in generating stations, the transmission and distribution system, and in control and telecommunication facilities. PWU Members produce and deliver the reliable and safe electricity required to fuel Ontario's homes and businesses. The PWU are the People Who Help Keep the Lights ON.
SOURCE Power Workers' Union
PWU Spokesperson: John Ives -- (416) 322-2457
Share this article