Natural Resources Committee on Feb. 5th, 2024

[Steven Schumann]

We haven't had any discussions with officials. We've had some brief conversations with the minister's office. If there's a will, there's a way. We always want to work with anyone who wants to work with us to find solutions. We'll be more than happy to sit with officials to see how we can put proper wording in there.

[The Chair, Liberal, George Chahal]

Thank you, Mr. Schumann.

We'll now go to Mr. Simard for one minute.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Mousseau, I'd like you to give me a short answer.

The costs associated with offshore wind projects have to be pretty high. The disaster at Muskrat Falls and the significant cost overruns come to mind. If I recall correctly, the project cost was around $13 billion.

Do provinces like Newfoundland and Labrador have deep enough pockets to introduce these types of projects?

I assume that private companies won't want to go it alone in the face of high project costs.

Does the federal government have to provide a significant share of the funding in order for companies to get the job done?

[Normand Mousseau]

It depends on the price of electricity.

Usually, the request for proposals specifies that the government is prepared to put in so much.

Offshore electricity is a bit more expensive than land-based wind power. We saw prices drop and rebound recently because of significant demand.

There is no doubt, however, that experienced private companies will be the ones setting up the wind facilities. These kinds of projects present tremendous technical challenges, so they require a lot of expertise. We heard that earlier.

It's important to train people in Canada, but the first ones who undertake these projects will be the ones who have done it before elsewhere.

[The Chair, Liberal, George Chahal]

Thank you.

Now we have Mr. Angus for one minute to finish us off.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you, Mr. Chair. Thank you for your excellent work as our chair.

Mr. Nicholson, I'm sorry we didn't get to you earlier because so much of what you said is so interesting. I would have thought just a few years ago that offshore wind was a hypothetical. Could it work? Could it not work? However, we see these projects that are happening in the United States: the New Jersey project, which will power 700,000 homes; one off Martha's Vineyard, which will power 450,000 homes; one off Rhode Island, which will power 200,000 homes. These are staggering amounts of clean energy.

Where are we on the cusp of this transformative revolution? What's it going to mean for low costs, for clean energy and for being able to transform our economy?

[Peter Nicholson]

Clearly, the advance so far in this field has been largely concentrated in Europe around the North Sea and in China. There is extensive experience there. They've already installed amounts that are far beyond the discussions that we've been having here. The plans in Europe, in particular, are to employ about 300 gigawatts of new electrical energy over the next 10, 15 or 20 years.

The bottom line is that this is an opportunity of historic proportions. If this country is really serious about its net-zero objectives—I know we are and we have to be—I cannot see this country meeting that without some very extensive development of offshore wind energy. The figures put forward in the Canada Energy Regulator scenarios virtually state that. The amounts of wind are quoted without saying precisely whether they are onshore or offshore. The greatest opportunity is clearly offshore. It's just a question of the detailed economics, the extent to which that wind will fulfill Canada's need.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you.

[The Chair, Liberal, George Chahal]

Thank you for that.

Colleagues, that brings us to the end of today's meeting.

Before we leave, I want to thank all of our witnesses for providing testimony. If there's something you missed or if you would like to provide a brief, please do so by 5 p.m. on February 16. Thank you once again.

This concludes our meeting for today. Is it the will of the committee to adjourn the meeting?

[Some hon. members]

Agreed.

[The Chair, Liberal, George Chahal]

The meeting is adjourned.