Nova Scotia’s tidal energy partners fall through

HALIFAX — Nova Scotia’s bid to become a world leader in tidal energy has been dealt a major setback, but industry experts say a French firm’s decision to pull out of a pioneering Bay of Fundy project may ultimately be good for the emerging industry.

Stephen Dempsey, executive director of the Offshore Energy Research Association, says the renewable energy industry has been hurt by Paris-based Naval Energies’ decision to pull funding from its Dublin-based subsidiary OpenHydro, the key backer of Nova Scotia’s Cape Sharp Tidal.

“When the leading technology developer exits the field, it’s a concern,” Dempsey said Monday. “There’s no way to diminish that. It will have immediate negative consequences. The question is whether it is short-term or longterm.”

Last week, Cape Sharp Tidal successfully connected a massive, two megawatt in-stream tidal turbine to Nova Scotia’s electricity grid. It was the second time that Cape Sharp has installed a turbine on the floor of the Bay of Fundy to generate electricity from the world’s highest tides.

In a historic first, Cape Sharp’s first turbine was hooked up to the grid in November 2016, but it was later removed for inspections and servicing in June 2017.

In 2009, an in-stream prototype was torn apart by the bay’s powerful currents, which can move at 18 kilometres per hour.

Naval Energies, considered a leader in the field of renewable energy, issued a statement last week saying it had stopped investing in tidal energy in Canada, and was instead focusing on floating wind turbines and ocean thermal technology.

“The deterioration of the market, in France and around the world throughout the recent months, has been reflected in a lack of commercial prospects over the long term,” company CEO Laurent Schneider-Maunoury said in a statement.

The company also complained that in Canada “there is also great sensitivity to the cost of the technology.”

Cape Sharp is a joint venture between OpenHydro and Halifaxbased Emera Inc.

Amanda White, acting executive director for Marine Renewables Canada, said her nonprofit group was disappointed with Naval Energies’ move.

However, she said such setbacks are to be expected in an emerging industry.

“It has happened before in this industry and other innovative sectors, and is a natural part of industry development,” she said in a statement. “The association feels strongly that there is great opportunity in this industry with many promising projects on the horizon. Tidal energy is on the cusp of becoming a viable industry.”

With OpenHydro now in the midst of bankruptcy protection, it will be up to the receiver, Grant Thornton in Ireland, to determine if a new owner can be found for the project.

Dempsey said this is not the end of research and development in the Bay of Fundy.

“The big ones sometime start up and fail, and then others come forth.”