Tidal power, LNG
floated for Cutler
May 3, 2006 - Bangor Daily News
Author(s): Bill Trotter; Of The News Staff
CUTLER - If a rising tide raises all ships, it one day could generate
electricity in a local bay and float liquefied natural gas tankers as
they come and go from a terminal adjacent to a local Navy- owned
property.
An entity called Tidewalker Associates, headed by a Trescott man who
works at the Navy site, has applied to Federal Energy Regulatory
Commission for a permit to conduct a study of Little Machias Bay for a
possible tidal power development.
Because tidal power projects are incapable of generating continuous
power, Normand Laberge of Trescott wrote in an April 29 letter to FERC,
"the project also will include provisions for the construction of a
liquefied natural gas (LNG) terminal on Navy property to complement
generation from the tidal power plant."
Laberge's LNG proposal would be the fourth one considered for coastal
Washington County but the only one that would not be situated on
Passamaquoddy Bay, which large ships can reach only through Canadian
waters. The border separating the United States from Canada runs through
Passamaquoddy Bay, with most of the bay lying on the Canadian side.
"The prime objective is to build a tidal power project," Laberge, an
environmental compliance officer at the Navy facility, said Monday
evening. The tidal power project would be in Little Machias Bay, just
east of the Navy's antenna array, and the LNG terminal would be on the
western side of the military-owned peninsula, facing larger Machias Bay,
he said.
In 2000, the Navy removed its military personnel from the base and
transferred control of the military communications facility to a Navy
base in Norfolk, Va., which now operates the equipment remotely. About
80 federal civilian employees continue to maintain the 45 antenna towers
on the property while other portions of the former military facility are
being redeveloped as condominiums and commercial space.
Tamara Young-Allen, FERC's spokeswoman for LNG projects, said Tuesday
that the agency has yet to receive the Tidewalker application. She said
she is unaware of any precedent for an LNG terminal being developed on
military property.
"I've never heard of a proposal using an actual Navy facility for
that purpose," she said.
Laberge said the Navy used to barge in fuel to generate electricity,
but it now trucks in about 1.5 million gallons of diesel fuel each year
to power the antenna towers. Importation of LNG would guarantee a
continuous power supply for whoever buys electricity from the proposed
power plant, be it the Navy or another customer. Natural gas not used to
supplement power generated by the proposed tidal project would be fed
into the Maritimes & Northeast Pipeline by a connector pipe that would
be built between Cutler and Wesley, he said. The two locations are about
25 miles apart.
The LNG terminal likely would have a daily capacity of 500 million
cubic feet, according to Laberge. He estimated that the proposed tidal
power pool in Little Machias Bay would cover 3,000 acres. The entire
power generating project, between the tidal pool and natural gas, would
generate approximately 13.5 megawatts, or enough to supply Washington
County with half of its power needs, he said.
According to The Associated Press, the price of natural gas on the
New York Mercantile Exchange settled Tuesday at $6.746 per 1,000 cubic
feet. At that price, a 500 million-cubic-foot facility could handle as
much as $3.37 million worth of natural gas each day or $1.2 billion
worth of natural gas each year.
There are two other partners in Tidewalker Associates, according to
Laberge, but he declined to identify them. In his letter to FERC,
however, he indicates that the Passamaquoddy Tribe at Pleasant Point has
claimed ownership of Sprague Neck, a small peninsula that juts westward
into Machias Bay from the Navy property.
"Preliminary discussions have been held with tribal leaders to join
Tidewalker Associates in this cooperative endeavor," Laberge wrote.
The Passamaquoddy Tribe at Pleasant Point already is partnering with
Quoddy Bay LNG, an Oklahoma-based firm headed by father-and- son team
Don and Brian Smith, to develop tribal property at Split Rock into an
LNG terminal. Last year, Laberge was named to a citizen advisory panel
organized by Quoddy Bay LNG.
Brian Smith said Tuesday, however, that he and his father are not
Laberge's partners.
"In no way are we affiliated with any development at the Navy base,"
Smith said.
Smith said Quoddy Bay considered other sites in coastal Washington
County, including Cutler, but settled on the Split Rock site as the best
location. He said he hopes Laberge will continue to sit on Quoddy Bay's
advisory panel.
"He's been very valuable with his input," Smith said.
State Rep. Ian Emery, who lives in Cutler and is connected with an
LNG project proposed for the Calais village of Red Beach, said Tuesday
that he is not associated with Laberge's proposal.
"I don't know anything about it," Emery said.
Laberge estimated that the tidal pool project would cost $50 million
to $100 million to build and that construction of an LNG terminal would
cost $500 million to $1 billion.
Laberge said Tidewalker has not yet gone about raising outside
capital to fund its efforts.
"We're committed to do the studies," he said. "We're waiting to see
what happens with the FERC application."
The Cutler facility is better suited for LNG importation, Laberge
said, because tankers would not have to navigate the Canadian waters
that separate Passamaquoddy Bay from the Bay of Fundy - a scenario many
Passamaquoddy Bay-area residents and some Canadian government officials
have said they oppose. The Cutler site is adequately sheltered from the
open ocean, he said, and already is part of an industrial setting
because of the 45 antenna towers, the tallest of which sticks 980 feet
into the air.
"We feel the Cutler site has a number of advantages," Laberge said.
If the Navy indicates it is not interested in having an LNG terminal
on its Cutler property, he said, there are other nearby locations
Tidewalker could pursue.
"The most logical [site] is the Navy base," Laberge said.
Navy officials at the Pentagon did not return a call Tuesday seeking
comment on Laberge's proposal.
Quoddy Bay's proposal for Split Rock and Perry, where storage tanks
would be located, and a terminal proposed in Robbinston by Downeast LNG
both have been submitted formally for public comment and for review by
federal regulators. The Calais LNG project, proposed by the
Passamaquoddy Tribe at Indian Township, has yet to submit a formal
application to the federal agency, which has ultimate jurisdiction over
the permitting of LNG terminals.
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