Chatham-Kent Council has thrown its support behind a few proposed energy storage sites across the Municipality.
The municipal support is required before the sites can move forward in the approval process.
Kruger official J.J. Davis said the company has already engaged Chatham-Kent Fire and Rescue to develop an emergency response plan even though they don't have a contract yet.
"Our partnership with Innergex will leverage existing infrastructure reducing the needed footprint and the cost of construction relative to building a completely new facility. It will enhance and grow the relationship with the area farmers and residents in one of the most rural areas of Chatham-Kent," said Davis.
Cedarline's Chief Financial Officer Kevin Mills said one of the company's goals is to reduce its carbon footprint and harvesting the byproducts of energy generation for the benefit of greenhouse production achieves this mission.
Mills also noted that the company is planning a greenhouse expansion in Dresden in 2024 by adding an additional 30 acres and this proposal will help power that expansion.
"This expansion will support economic development for the municipality and for the additional 30 acre expansion, it will utilize the waste heat and CO2 from the 12 mega watt cogeneration unit expansion," Mills said.
Chatham-Kent's General Manager of Community Development Bruce McAllister noted this municipal support is to get the proposals to the next step and is not an approval of the projects.
McAllister added more details about the projects, such as design and setbacks for houses, should come out later this year once the approvals have been given.
The only deputations Monday evening were from Boralex Inc. in Lots 26 and 27 Concession 1, east of Communication Road, Chatham-Kent Battery Energy Storage System L.P (Kruger Energy and Innergex) at 4683 Finn Line, and Cedarline Greenhouses Cogeneration Unit at 11080 Baseline. Wheat Energy Storage at 13613 Spence Line did not appear before Council.
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Previous story below from February 11, 2023:
Chatham-Kent is getting ready to be a power player to help Ontario meet its hunger for energy.
Councillors will be discussing four proposed sites for energy storage across the Municipality at their meeting Monday night.
Three of the projects wanting municipal support are battery energy storage systems and one is a small natural cogeneration unit on an existing greenhouse property. One is located at 13613 Spence Line, another is at Concession 1, east of Communication Road, the third is at 4683 Finn Line, and the last is the cogeneration unit at 11080 Baseline.
The Independent Electricity System Operator (IESO) is forecasting that Ontario, and particularly, the area between Chatham and Windsor will be short on power starting in 2025 and wants to secure 3,500 megawatts (MW) of capacity through proposals. The region’s agricultural sector growth, additional industrial growth, and a shift to more electric vehicles have been identified by the IESO as concerns to be addressed.
A Battery Energy Storage System consists of an assembly of batteries that draws power from the electric grid when excess power congests transmission lines during periods of low electricity demand. This surplus energy is stored and discharged when electricity demand increases.
The IESO has identified the area “West of Chatham” as a preferred development area for new capacity and developers have been active in Chatham-Kent, along with Essex and Lambton Counties.
The Municipality said it has been actively negotiating with developers wishing to locate in the Municipality in order to secure a Municipal Support Resolution, something that is needed to rank the proposals in order of importance.
The Municipality said the facilities are being proposed on farmland because they need to be near existing Hydro One transmission corridors, which predominantly are in the rural areas of Chatham-Kent.
Chatham-Kent can also benefit financially from the battery energy storage projects.
"Over the course of their life, the project will provide significant and reliable contributions to the Municipality’s tax base," stated a report going before Council.
These projects will also create local jobs and help to reduce Ontario’s emissions by limiting the need to run natural gas generators during times of peak loads.
The IESO is looking for projects larger than 1 MW that can deliver a continuous amount of electricity for at least four consecutive hours.
Battery Energy Storage System Projects usually consist of containerized batteries, inverters, medium voltage transformers, gravel internal access roads, buried collector and communication cabling, a small transmission substation, and potentially a garage and operations and maintenance building.
The various projects have to jump through several hoops, including an environmental assessment. As part of the approval process, the battery energy storage companies will be required to develop comprehensive Emergency Response Plans. Zoning bylaws will also need to be changed for each specific project.
The IESO contracts will require the electricity services to be provided for a term of 22-years and after that it's possible that the contract may be renewed, or the facility may be decommissioned and the property returned to its existing condition or better.
Lithium-ion batteries are used in mobile phones and electric cars, but are also currently the dominant storage technology globally for large scale plants to help electricity grids ensure a reliable supply of renewable energy. Approximately 95 percent of a lithium-ion battery can be recycled.