Ontario Announces Five-Year Contract for Atikokan Generating Station
September 24, 2024
The Ontario government is protecting 400 well-paying jobs in the North through a new five-year contract to enable the largest biomass-fuelled plant in North America. The Atikokan Generating Station will continue to provide affordable, reliable energy as Ontario expands its clean energy network to attract new investments and support its growing population.
The new five-year contract with Ontario Power Generation (OPG) and the Independent Electricity System Operator (IESO) will help support jobs and economic growth for the local community, local mills and forestry operations that supply the facility, while also providing affordable and reliable clean energy to Ontario families. Additionally, this agreement will work to protect the environment by utilizing wood waste that could have otherwise been diverted to landfills.
“I’m pleased to see our government supporting the residents of Atikokan through the re-contracting of the Atikokan Generating Facility. By securing 400 well-paying jobs and supporting local forestry operations, we’re not only contributing to Ontario’s clean energy future but also providing economic stability for families in Atikokan,” said Kevin Holland, Associate Minister of Forestry and Forest Products. “This agreement ensures our community will continue to play a key role in powering Ontario while utilizing sustainable resources and protecting our environment.”
As part of Ontario’s commitment to phasing-out coal, OPG successfully converted the Atikokan Generating Station from coal to biomass. As Ontario continues to be a global leader in clean energy, this facility is now the largest 100 per cent biomass facility in North America and the largest consumer of industrial wood pellets in Canada.
“Today’s announcement reaffirms our government’s commitment to supporting meaningful economic opportunities for families and businesses in the North,” said Greg Rickford, Minister of Northern Development and Minister of Indigenous Affairs and First Nations Economic Reconciliation. “Under Premier Ford’s leadership, we are not only preserving 400 well-paying jobs for families in the Northwest, we are also advancing Ontario’s forest sector and clean electricity system for future generations.”
Supporting jobs in the North is just one part of Powering Ontario’s Growth, the government’s pragmatic plan outlining the actions the province is taking to meet growing energy demand and reduce emissions by expanding Ontario’s reliable, affordable and clean grid, including:
- Nuclear Energy – Advancing reliable, affordable and clean nuclear power through pre-development work at Bruce Power, four small modular reactors at Darlington and supporting OPG’s plan for refurbishing the Pickering Nuclear Generation Station.
- Competitive Procurements – Acquiring 4,000 MW of electricity generation and storage and launching more competitive procurements for non-emitting electricity resources including wind, solar, hydroelectric, batteries and biogas.
- New Transmission Infrastructure – Designating and prioritizing transmission lines in Southwestern, Northeastern and Eastern Ontario that will power job creators including EV and EV battery manufacturing and clean steel production.
- Keeping Costs Down – Launching new energy efficiency programs on January 1, 2025, building on the government’s $342 million expansion of existing energy efficiency programs which are helping families and businesses reduce their electricity use so they can save money on their energy bills.
Quick Facts
- The Atikokan Generation Station is now the largest 100 per cent biomass facility in North America and the largest consumer of industrial wood pellets in Canada.
- After more than a decade of strong electricity supply, IESO’s 2024 Annual Planning Outlook forecasts that Ontario’s total electricity demand will increase by 60 per cent over the next 25 years.
- To meet these needs, the Ontario government is procuring electricity products and services from both existing and new resources.
- Biomass electricity generation facilities serve an important role in supporting Ontario’s clean electricity system and its forestry sector. Ontario biomass facilities also provide additional value as the industry considers a longer-term transition for alternative uses of waste biomass.
- In the 2021 Fall Economic Statement, the government announced it would fund a portion of the costs of re-contracting northern Ontario biomass electricity generators through the Comprehensive Electricity Plan.
- Ontario’s grid is one of the cleanest in the world with a diverse supply mix made up of nuclear, hydroelectric, natural gas, wind, solar and bioenergy.
