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An ambitious offshore wind development aiming to be Canada’s first in operation has sealed a “relationship-building” deal with the Mi’kmaw First Nation. The memorandum of understanding (MoU) promises support for Indigenous rights and minimal environmental impact.
The MoU signed by developers DP Energy and SBM Offshore with the Assembly of Nova Scotia Mi’kmaw chiefs intends to help inform a mutual benefits agreement (MBA) focused on job creation and a potential equity stake in the up-to-400-megawatt Nova East Wind project being built off Goldboro.
“Nova East Wind is committed to developing this project in a sustainable and responsible manner,” Damian Bettles, DP Energy’s North America head of development, told Canada’s National Observer.
“Importantly, this MoU establishes a framework for continued dialogue to ensure the project respects the rights and views of the Mi’kmaw, while working toward an MBA that will establish meaningful Mi’kmaw participation throughout the project lifecycle.”
Mi’kmaw Chief Bob Gloade said: “This is the first offshore wind project in Nova Scotia and it is significant that we will be actively involved throughout its development and then operation.
“Beyond minimizing any environmental impacts from the project through this MoU, we want the MBA to focus on the employment opportunities for [the Mi’kmaw] in the region… as well as a revenue share or an equity stake,” he told Canada’s National Observer.
Gloade said the MoU would lay the groundwork for the Mi’kmaw to be development partners on renewable energy projects for the long term.
“Extensive dialogue” with chiefs
The developers noted that the Nova East MoU, finalized after extensive dialogue with the Mi’kmaw chiefs, was committed to building an Etuaptmumk, or Two-Eyed Seeing program, to build greater understanding and respect for the traditional knowledge of First Nations.
Glooscap Chief Sidney Peters, of the Assembly of First Nations Nova Scotia, said in a statement: “Any time work is being considered on the lands and waters of Mi’kma’ki, it is important that Mi’kmaw voices are part of those conversations to ensure any developments are carried out in a responsible and sustainable manner.”
The MBA, according to DP Energy development manager Sarah Thomas, would encompass social, economic, and environmental concerns around the sustainable development of Nova East, which will be located in 100 to 200 metres of water some 20 to 30 kilometres off the east coast of Nova Scotia.
Nova East, which will be built using giant 15-megawatt floating wind turbines because the project site’s waters are too deep for seabed-fixed foundations, faces a range of challenges. These include securing provincial regulatory approval and installing offshore technology that generates power at a higher cost than conventional offshore wind units.
Bettles acknowledged that developing a supply chain to build and install the turbines and their export cables would also present particular challenges.
“It will be important to understand existing and transferable skill sets, and just as importantly, to identify early on any training and educational opportunities that could maximize participation and benefit as the project progresses through development, construction, operation and eventual decommissioning,” he said.
“There is an opportunity for this relationship-building project to help set the standard for how to engage and work with First Nations for these types of agreements in the offshore wind sector.”
Nova Scotia was the first Canadian province to announce plans to develop its offshore wind resource at a scale that could deliver power to utilities, starting with a five-gigawatt auction, planned for 2025, where developers will bid on project sites in the Canadian Atlantic.
The Atlantic Economic Council calculated in a recent report that offshore wind could become a $7-billion market by 2030 in the Canadian Maritime provinces, generating a first wave of 5,000 jobs and delivering benefits to the regional economy.
Tory Rushton, Nova Scotia’s minister of Natural Resources and Renewables, said: “Offshore wind is Nova Scotia’s greatest opportunity since the Age of Sail. It’s going to help us fight climate change, create green jobs and grow our green economy for generations to come.
M’ikmaw “key” energy transition leaders
“Through wind, solar and battery projects and more, the Mi’kmaw are key leaders and partners in our province’s transition to clean energy.”
According to figures from research group Bloomberg New Energy Finance, global offshore wind investment reached a record $76.7 billion, up 79 per cent last year, with China continuing to be the largest offshore wind market, followed by the UK and the U.S.
The floating wind sector has not fared as well. Though some 250 gigawatts of deepwater developments are currently in the industry’s project pipeline, according to the International Renewable Energy Agency, many analysts have dramatically lowered their near-term expectations, with Rystad Energy forecasting as little as 7 gigawatts will be online by the end of the decade, up from 270 megawatts today.
The Global Wind Energy Council, an industry body, forecasts that the coming decade will see a total of 410 gigawatts of new fixed and floating wind capacity installed on top of the 75 gigawatts now in operation.
Darius Snieckus, Business Correspondent