The Energy Hub  Foundational Energy Hub Investments can serve as a Beacon for Future Investments By John Herron, Director, Communications & Business Development, Atlantica Centre for Energy There is a sense in our region that our economy has been somewhat insulated from the economic downturn that has affected most regions and sectors around the globe. This collective confidence comes from the recent influx of investment in a series of world class energy projects being hosted in our communities. These include nearly $1.0 Billion from Canaport LNG, Canada’s first-to-market liquefied natural gas terminal, $465 million from the Brunswick Pipeline project and the $1.4 billion dollar refurbishment of the Point Lepreau Nuclear Generation  Station. These projects, together with the $1.7 Billion potash mine expansion in the Sussex area, have served as catalysts to growth throughout our local economy, as we have all watched new restaurants, new hotels and new retail establishments materialize. Energy investment has fueled the momentum in our region. Foundational Energy Investments are the Nucleus of the Energy Hub Our region boasts a uniquely diverse portfolio of energy solutions that include nuclear, hydroelectric, wind, biomass and natural gas as well as refined petroleum products. In addition we are blessed with a geographic location that allows us to serve the energy-hungry international northeast. Canaport LNG, Brunswick Pipeline and the Point Lepreau refurbishment project will now complement a chain of foundational energy investments that serve as the nucleus of our emerging energy hub. These new projects join an energy cluster that is anchored by NB Power’s robust electrical transmission system and its diverse generation mix, particularly its non-emitting nuclear and hydroelectric facilities, the Maritimes and Northeast Pipeline and Saint John’s Irving Oil Refinery - Canada’s largest and most modern, producing some of the cleanest transportation fuels in North America. At its heart, the energy hub is an investment attraction strategy. There exist many opportunities for energy sector investment, such as the proposed energy corridor. This pathway will not only enable $2 Billion worth of investments in electrical transmission and pipelines, bringing economic benefit to citizens on both sides of the international border, but will also unlock the potential for additional billions of dollars of investment in renewable energy projects throughout the international northeast. Planning for Success in an uncertain Investment Climate Although our region is apt to continue to progress throughout the remainder of 2009, we will not have the same level of energy project activity and investment as we begin 2010. It is improbable that we will be able to continue to ‘out-row’ the effects of the economic headwinds affecting our world. There are no guarantees in any economy, there is still more work to be done and decisions to be made, but we are better situated than before and more prepared than most regions with the emergence of the Energy Hub. Let's not forget that the world is a competitive place - others are working hard to win the business that we seek to attract. Our strategic advantage, beyond our geographical location adjacent to the American Northeast, has been our willingness to create an investment climate to move our communities forward. However, in order to continue our momentum we need to learn aggressively from regions around the world that have succeeded in turning their regional assets into world-class examples of productive excellence. This is vital to attracting further investment and having an impact on moving the decision needle on the larger proposed energy hub projects. Adding Value to the Energy Hub We have the opportunity right now to take a series of initiatives that will prepare us to further succeed as the world’s investment climate begins to recover. · Let’s further develop our relationship with our neighbours in Maine and throughout New England. The scale of investment from the larger energy projects, such as the proposed energy corridor, second refinery and second nuclear reactor, presents both challenges and opportunities on both sides of the border. Let’s continue to reach out to our neighbours to ensure that the full promise of these projects is realized. - Let’s recognize that low cost energy has the potential to drive economic development; let’s use energy as a competitive advantage to attract and retain non-energy-related industry as well as further expansion of hub assets.
- Let's continue with our improvements to education and workforce development, and drive hard to improve the productivity of our people and our local firms. Customized training programs, robust apprenticeship programs and world-class training and research facilities are all part of the support infrastructure surrounding the Energy Hub.
- Let’s encourage senior levels of government to co-invest in enabling infrastructure - principally, docking, road, rail and materials-handling facilities that are pre-planned and built to 'industrial strength' specifications - thus enabling cost-competitive truck, rail and sea transport options for raw materials and finished goods to existing and future investors.
- We need to ensure that we have a rigorous environmental permitting process and still be mindful of the need to maintain a regulatory process that is predictable, less uncertain and expeditious. Eliminating duplication, ensuring accountability and improving the efficiency of regulatory processes will ultimately reduce costs and improve effectiveness for all stakeholders – governments and citizenry included. Let's also ensure that additional industrial land is zoned, permitted and ready for development where synergies of location can best be achieved.
Our region is beginning to appreciate what it means to be part of a growth story. Our communities are now home to a series of foundational energy investments that have the potential to serve as a magnet for further investment to expand this existing energy cluster. The economic expansion of the energy sector has the potential to further grow many sectors within our economy and allow us to rebuild our population, revitalize our communities, and provide the tax revenues we need to sustain and improve our quality of life. |
