TC Energy’s Pumped Storage Project moving to final evaluation
July 10 2023 - 1:41PM
News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or
the Company) welcomes today’s announcement from the Government
of Ontario, which outlines a sustainable road map towards achieving
an emission-free electricity sector. As part of the
announcement, the Ministry of Energy will now commence a final
evaluation on the proposed Ontario Pumped Storage Project (the
Project) and render a decision by the end of the year.
Ontario Pumped Storage is a made-in-Ontario solution that would
keep jobs at home and rely on safe domestic supply chains.
Proposed for development by TC Energy and its prospective partner
Saugeen Ojibway Nation, Ontario Pumped Storage would be Ontario’s
largest energy storage project, storing enough clean electricity to
power one million homes for 11 hours. As Ontario transitions
to a cleaner electricity grid, it will need a portfolio of new
emission-free power that will rely heavily on long duration
storage. Ontario Pumped Storage would deliver clean energy
during times of peak demand while providing ratepayers with an
affordable solution to drive Ontario’s clean energy transition and
accelerate economic growth in the province.
The Project is subject to the approval of TC Energy’s board of
directors and a successful partnership agreement with the Saugeen
Ojibway Nation. TC Energy is targeting a final investment decision
in 2024. It is expected to be in-service in the early 2030s,
subject to receipt of regulatory and corporate approvals.
Quotes“Ontario Pumped Storage will be a
critical component of Ontario’s growing clean economy and will
deliver significant benefits and savings to consumers. Ontario
continues to attract major investments that will have large power
needs - many of which are seeking zero-emission energy before they
invest. We are pleased the government is advancing efforts to
recognize the significant role that long duration storage plays –
firming resources will become increasingly valuable in supporting a
future emission-free electricity system,” Corey Hessen, Executive
Vice-President and President, TC Energy, Power and Energy
Solutions.
“Ontario Pumped Storage represents a significant partnership
opportunity for the people of Saugeen Ojibway Nation. TC Energy has
been working with us to establish a relationship based on trust and
collaboration. Should the partnership proceed, Saugeen Ojibway
Nation will jointly develop, construct, operate and own the
Project, and would be entitled to a significant share of the
Project’s revenues that would provide lasting economic benefits to
both Nations for years to come,” Conrad Ritchie, Chief, Saugeen
First Nation and Veronica Smith, Chief, Chippewas of Nawash Unceded
First Nation.
“The Municipality of Meaford recognizes the significant stimulus
a project like this would have on the local economy, and the
benefits it would bring as a whole to Ontario’s electricity
system. We look forward to continuing to work with TC Energy
to develop a community benefits agreement that will ensure we move
into the future stronger and better for years to come,” Ross
Kentner, Mayor, Municipality of Meaford.
“We believe the Ontario Pumped Storage Project presents a unique
opportunity to provide training and employment opportunities in the
province, in support of well paying, middle class skilled jobs to
help our economy grow, while addressing important climate concerns
through the storage of clean energy,” Jack Oliveira, Business
Manager, LiUNA OPDC and LiUNA Local 183.
“Maintaining resilient and reliable energy infrastructure is
essential for a vibrant economy in Ontario. Planning for assets
like the Ontario Pumped Storage Project will help ensure that the
province stays on track to produce low carbon energy that will
power our economy, when we need it,” Rocco Rossi, President and
CEO, Ontario Chamber of Commerce.
Anticipated Timeline
- The Ministry of Energy has directed the Independent Electricity
System Operator (IESO) to conduct a final analysis of Ontario
Pumped Storage to validate its role as part of Ontario’s
electricity system. The IESO will provide their analysis to
the Ministry by Sept. 30, 2023.
- In parallel, the Ministry of Energy will launch consultations
on Ontario’s Regulatory Registry and the Environmental Registry of
Ontario on the potential to rate regulate Ontario Pumped Storage
via the Ontario Energy Board.
- By Nov. 30, 2023, the Minister of Energy will make a final
determination on Ontario Pumped Storage.
Quick Facts
- Ontario Pumped Storage is a development project, proposed for
construction on the Department of National Defence’s 4th Canadian
Division Training Centre in Meaford, Ontario in the territory of
the Saugeen Ojibway Nation.
- The project would stimulate the economy and maximize the value
of Ontario’s electricity, generating approximately $12.1 billion in
energy system cost benefits, while creating more than 1,000 direct
jobs regionally and in Ontario.
- Once operational, the project would pay approximately $8.5
million annually in income to workers employed at the facility,
off-site employees and direct contract workers.
- The Municipality of Meaford passed a conditional motion of
support for Ontario Pumped Storage in February.
About TC EnergyWe’re a team of 7,000+ energy
problem solvers working to move, generate and store the energy
North America relies on. Today, we’re taking action to make that
energy more sustainable and more secure. We’re innovating and
modernizing to reduce emissions from our business. And, we’re
delivering new energy solutions – from natural gas and renewables
to carbon capture and hydrogen – to help other businesses and
industries decarbonize too. Along the way, we invest in communities
and partner with our neighbours, customers and governments to build
the energy system of the future.
TC Energy’s common shares trade on the Toronto (TSX) and New
York (NYSE) stock exchanges under the symbol TRP. To learn more,
visit us at TCEnergy.com.
FORWARD-LOOKING INFORMATIONThis release
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TC Energy security holders and potential investors with
information regarding TC Energy and its subsidiaries, including
management's assessment of TC Energy's and its subsidiaries' future
plans and financial outlook. All forward-looking statements reflect
TC Energy's beliefs and assumptions based on information available
at the time the statements were made and as such are not guarantees
of future performance. As actual results could vary significantly
from the forward-looking information, you should not put undue
reliance on forward-looking information and should not use
future-oriented information or financial outlooks for anything
other than their intended purpose. We do not update our
forward-looking information due to new information or future
events, unless we are required to by law. For additional
information on the assumptions made, and the risks and
uncertainties which could cause actual results to differ from the
anticipated results, refer to the most recent Quarterly Report to
Shareholders and Annual Report filed under TC Energy’s profile on
SEDAR at www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov.
Media Inquiries:Media
Relationsmedia@tcenergy.com403-920-7859 or 800-608-7859
Investor & Analyst Inquiries:Gavin Wylie /
Hunter Mauinvestor_relations@tcenergy.com403-920-7911 or
800-361-6522
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