Versorium Energy defers proposal for peaker plant

The proposal to build a 31-megawatt natural gas peaker plant at Maureen Street and Central Avenue has been temporarily withdrawn.

The project was set to cost $50-80 million to construct.

As a “peaking” plant, the facility would have only operated when the electrical grid was experiencing high usage.

Thunder Bay’s City Council was set to vote on the proposed plant at their final meeting of the year on December 2.

In a note to council, Versorium stated that they have been modifying their plant proposal to “fit within a smaller footprint,” which may impact the plant’s ability to sell its waste heat to Canada Malting.

The sale of waste heat for use in Canada Malting’s production process was initially advertised as a way to offset about one-sixth of the plant’s greenhouse gas emissions.

Emissions were a major concern at a Growth Standing Committee meeting in late October, where climate advocates criticized the plant as a violation of the city’s commitment to achieving a net-zero carbon footprint.

Versorium Energy Ltd. states that it still intends to produce a proposal for a peaker plant next year.