‘Robust regime’ | Canada moves to bring offshore wind into energy regulatory fold

Legislation would amend existing agreements governing oil and gas development to include offshore wind as Nova Scotia sets 5GW target

Peggy's Cove, St. Margarets Bay, Nova Scotia . Nova Scotia.
Peggy's Cove, St. Margarets Bay, Nova Scotia . Nova Scotia.Foto: Shutterstock

Canada advanced its gigascale offshore wind ambitions with a bill that would expand its regulatory regime for oil and gas development to include at-sea renewables.

Natural Resources Minister Jonathan Wilkinson introduced the legislation yesterday (30 May) to the federal Parliament in Ottawa to amend the Atlantic Accords, longstanding agreements with the Maritime provinces on the joint management of petroleum resources, to integrate offshore wind.

The Atlantic Accords were signed between the federal government and Nova Scotia and Newfoundland and Labrador in the 1980s to govern offshore oil and gas.

These same provinces have some of the world's richest wind resources, with speeds ranging up to 13 meters per second, and extensive areas of shallow water that make fixed bottom foundations feasible.

Sector development faces significant hurdles, though, including a lack of enabling regulations.

Claire Seaborn, Wilkinson’s chief of staff, noted on LinkedIn that the move aims to position Canada for a piece of the global offshore wind industry that is expected to attract $1trn in investment by 2040.

“Creating a robust regime to regulate this sector will ensure we bring that investment home to Canada where it will enable incredible economic opportunities to drive growth and create good sustainable jobs,” she said.

The bill would streamline leasing approvals by creating a single “submerged land” licence to replace the exploration, significant discovery and production permits needed for petroleum development.

It would also rename the Atlantic offshore petroleum boards to ‘offshore energy regulators’ to reflect their new mandates and would ensure Marine Protected Area's (MPAs) standards apply in all areas covered by the Accord Acts.

MPAs are federally designated ocean reserves where economic activities, including fishing, are strictly limited.

Nova Scotia blazes trail

Nova Scotia is the first Canadian province to set offshore wind ambitions with Premier Tim Houston last autumn announcing a 5GW capacity target by end of the decade.
The province underpinned this goal with a multi-stage plan unveiled at the WindEurope 2023 conference in March that would see initial offshore leases awarded no later than 2026.

“Setting this target sends a clear signal to the world that Nova Scotia is open for business and becoming an international leader in offshore wind and green hydrogen development,” Houston said.

Sparse populations of less than two million combined for both provinces suggest that electricity generated at sea would need diverse routes to market.

Nova Scotia's plan includes two end-use scenarios: renewable power and low-carbon fuels, including green hydrogen or ammonia.

Last summer, Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz established the Canada-Germany Hydrogen Alliance, through which Canada would start exporting green H2 to Germany by 2025.
A consortium of developers and energy firms spearheaded by consultancy Groundwire Strategies released a white paper last month touting an at sea grid to connect Canadian offshore wind farms to load centres of southern New England.
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Published 31 May 2023, 15:49Updated 31 May 2023, 15:49
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