The Steep Rock Energy…

The Steep Rock Energy Storage project is a major pump storage project located on the site of the abandoned Steep Rock mine, north of Atikokan, Ontario. A proposal was submitted to the IESO in June 2021, under the IESO’s unsolicited proposal process. The proposal is well aligned with P2D as it offered the following features:

1. 20-year contract
2. In-service date before 2027
3. Long duration service (840 MW for 10 hours)
4. Majority indigenous ownership
5. Local community and First Nations support.

Relative to P2D objectives, the project reduces requirements for natural gas-fired generation while reducing costs to the electricity system, rate payers and taxpayers. As well, it provides a key piece of infrastructure which supports additional renewable power imports/exports from/to both Minnesota and Manitoba. Finally, it is synergistic with co-development of green hydrogen production facilities, which facilitates the blending of green hydrogen into the natural gas system, further reducing natural gas requirements. All of this contributes to greenhouse gas reductions as well as significant local employment and economic development opportunities.

A key element of the proposal is the completion of the environmental restoration of the mine site in conjunction with development of the energy storage facility. Environmental restoration of the Steep Rock mine is currently being carried out by the Ontario Ministry of Natural Resources and Forestry (MNRF), with a reported cost >$750 million, and completion by 2065. Integrating the restoration with development of the pump storage facility expedites the mitigation of an environmental liability, at significant cost savings to taxpayers.

The project has been delayed by challenges obtaining a lease for the site, as MNRF policy dictates that lease negotiations cannot commence until a storage agreement with the IESO is in place. In addition to providing detailed comments on the P2D study, our comments offer suggestions on how to expedite this regulatory hurdle. They are provided in the attached letter.