B.C. Hydro executive Doug Little said Friday northern B.C. is critically important as a prospective power generator through the proposed $7.9-billion Site C dam and bioenergy, but also as a user of power through emerging natural gas and mining projects.
"The load growth up here in mining and oil and gas is potentially huge. And then the Site-C project is a very good project for the province," Little said in an interview following a luncheon presentation in Prince George.
"You put that all together and the North is of critical importance to B.C. Hydro," said Little, vice-president of business and economic development for B.C. Hydro.
Little noted that B.C. Hydro has undertaken a preliminary review of a transmission line to Fort Nelson to provide power to the booming natural gas sector, a project which would have a price tag of more than $1 billion.
Little said that discussions needs to take place with communities and First Nations, as well as natural gas companies that might share in the cost of the transmission line.
Little did not provide a timeline on the project.
The natural gas sector in Northeastern B.C., which is already booming, has huge reserves. Three of the major players there - Apache, OEG Resources and Encana - are joint partners in a planned $4-billion liquefied natural gas terminal in Kitimat and supporting 463-kilometre pipeline in Northern B.C.
B.C. Hydro recently announced it was pushing ahead with the Site C dam, a megaproject in Northeastern B.C. The Site C dam and the potential northeast transmission line are independent of each other, noted Little.
Site C would add a third dam on the Peace River to produce enough electricity to power 450,000 homes a year, creating about 7,000 jobs over a seven-year period.
The project is controversial because it would flood high-grade agricultural and wilderness land, and is being opposed by some residents, First Nations and environmental groups. Recently, the Treaty 8 Nations lodged a complaint with the United Nations over the project.
During a question and answer session at the luncheon, Peace River Regional District chair Karen Gooding wanted to know whether the Site C dam's power was required for use in British Columbia or would be exported to generate cash.
Little stressed that even though B.C. Hydro does export power to trade when its hydro resources are more valuable, the province is a net importer of power. The power from Site C is needed for domestic use and to meet new demands for power, including from the natural resource sector in Northern B.C., he answered.
B.C. Hydro is about to start construction on another transmission line in Northern B.C., the $404-million Northwest Transmission Line. The 344-kilometre power line is viewed as a catalyst to opening up mining and independent power projects in Northwest B.C.
Imperial Metals has already said it will time the opening of its $443-million Red Chris mine to the start-up of the transmission line.
Closer to Prince George, the Thompson Creek Metals' $1.3-billion Mount Milligan gold and copper mine has just begun construction. There are several other mining projects in the planning stages in North-central B.C.
On the bioenergy front, B.C. Hydro just inked a power deal with Conifex, which is going to build a $50-million power plant in Mackenzie which will be fueled by waste from its sawmills and logging debris.
B.C. Hydro also is in the midst of reviewing several other bioenergy projects in northern B.C., including a major proposal from Canfor Pulp in Prince George.
