The tendering process for a new tidal energy project to replace the failed Cape Sharp turbine in the Bay of Fundy will begin next week.
John Dalton of the U.S.-based firm Power Advisory is leading the team assessing proposals. The two-month bidding process begins Wednesday.
The winning bidder must remove the massive Cape Sharp turbine that’s been abandoned in the water since the company's licences were revoked by the province earlier this year. Companies bidding for the project must have $4.5 million available to cover the costs of removing the turbine.
The project description and bidding guidelines are included in a 68-page document posted on the Department of Energy website Thursday.
Though companies are required to put up additional money to ensure the cost of removing the turbine is covered the exact amount isn’t listed in the document But Energy Minister Derek Mombourquette said Thursday that the amount would be significantly more than the insufficient million dollar reclamation bond that was paid by Cape Sharp's parent company Open-Hydro.
“At the time it was believed that that was what it would cost to retrieve it but we now know that is not,” said the minister. “I’m very optimistic. … We have a process in place with an independent representative that’s looking at companies that are very interested in that berth.”
The document sets Dec. 31, 2024 as the ultimate deadline to get the turbine out of the water.
The document calls for applicants “to establish and maintain financial security for the construction, installation, operation and decommissioning of a four megawatt in-stream tidal energy demonstration at Berth D throughout the term of the licence.” A licence with the province maxes out at 10 years but can be renewed by the minister.
Bidding companies are also required to meet several other criteria, including proof of public engagement, including consultation with the Mi’kmaq community, as well as a draft environmental monitoring plan and draft risk management plan.
The tendering process closes on Feb. 18 with the successful bidder being notified on March 18.