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Weekly UpdatesFrom a $1.5 billion hydroelectric project to biomass possibilities, officials at the Town of Kapuskasing believe the community has what it takes to maybe one day become the "energy capital of the North."
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"We have all the ingredients, all the attributes to position us well to take advantage of economic opportunities," says Mayor Alan Spacek.
"Kap might seem like a small town to some, but we've got big potential."
Front and centre among Spacers hopes and on the tip of his tongue is Ontario Power Generation's (OPG) impending Lower Mattagami Project. Consisting of four existing hydroelectric generating, stations 70 kilometres northeast of town, the project will involve spending $1.5 billion to refurbish, improve and add onto these stations.
The move will add 450 megawatts (MW) of capacity to the provincial system in what Spacek refers to as "the biggest project of a lifetime."
The Lower Mattagami project has already received the provincial environmental assessment approvals, and work is underway to receive federal approval under the Canadian Environmental Assessment Act.
If OPG receives the thumbs-up, construction will begin as soon as April 2010. This phase is expected to last from five to seven years, and will employ between 500 and 700 people.
Meanwhile, Hydromega, a Quebec-based firm, is also looking at establishing four hydroelectric stations in the area to generate 20 MW The $70 million project would also create, 50 construction jobs, and equity sharing partnerships are already in discussion with both the municipality and local First Nations. Currently, the company is finalizing its project funding.
The community has even begun fielding international interest, with one German energy producer tentatively extending a few feelers into Ka-puskasing City Hall to determine the potential for a 10 MW solar panel project in the area.
Overall, Spacek expects all these sprawling, "substantial" projects will bring a number of new contractor firms and spin-off support companies to the town, which sits within driving distance of the various project areas.
Louise Gingras, the town's vice-president of economic development, is equally optimistic about the future of the area, and highlights biomass as an item of particularly strong interest.
In recent weeks, OPG issued a public letter of interest to determine the possibility of providing it with biomass.
While OPG officials have assured Gingras that the use of biomass pellets as a replacement in some of its coal-fired plants has been successful, they're currently sourcing biomass from Prince George, British Columbia.
She says estimates have shown that, if OPG converts all its coal-fired plants to pellets, the market would support as many as 50 new pellet-producing businesses in Ontario.
"You could potentially have a few pellet plants in every town in Northern Ontario. With one stroke of a pen, OPG could dramatically boost the economic development of the North."
Gingras, who also serves as the director of College Boreal's Kapuskasing campus, says various biomass research projects conducted in the region in recent years should help the town's future prospects. As an example, she points to testing done in nearby Opasatika, which in 2008 revealed that up to three million green metric tonnes are produced within a 200-kilometre radius of the small town every year.
With a rail line, an airport with scheduled commercial air service, and access to the TransCanada Highway, Kapuskasing could also handle whatever transportation needs the industry would also require, Gingras adds.
The glimmer of economic potential has already sparked interest from a variety of businesses, ranging from a call centre expected to create 50 to 100 jobs Over time, to a series of commercial developments- These include the recent addition of a new A&W Restaurant, a Fields department store as well as a Buck or Two, and a $3 million Flying J Truckstop, which employs 30 people. A $5 million Super 8 Motel is currently under construction.
In response, the municipality has committed to a capital infrastructure improvement program to the tune of more than $11 million for this year, with an eye on improving water capacity and related facilities.
As a three-bedroom bungalow can go for as little as $80,000 in town, Spacek hopes more and more people will soon begin to see the value of relocating to Kapuskasing.
"We hit the bottom of the economic cycle, and we're working very hard to position ourselves well for when the cycle starts to come back up."
www.town.kapuskasing.on.ca
www.lowermattagami.com
www.hydromega.com
By NICK STEWART
Northern Ontario Business
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