Stelco gets wind back in its sails, but does it have a destination?
Stelco, the Hamilton-based steel giant that’s legally insolvent and under bankruptcy protection, is a bizarre creature sometimes. First, it partners to develop a massive wind farm around its brownfield properties in Nanticoke — not so far from the Ontario government’s dirtiest and largest coal-burning plant. Then it backs out of the ambitious project in April giving zero explanation to its partner Georgian Windpower, who by the way has launched a $350 million breach-of-contract suit against Stelco. Now the steel giant is saying it wants to build a 60-megawatt, 40-turbine wind farm on its own and it has started doing an environmental assessment of the area and economic analysis.
I’ve got to say, it’s hard not to be sympathetic to the folks at Georgian Windpower, who are worried that all the early work they did on the project — including the collection of wind and economic data — is now going to be used by Stelco, either alone or with another partner such as GE Wind. These are just allegations, of course, and none have been proven in court, but it seems a rather bold move for Stelco to move ahead with its own wind-development plans given the lawsuit sitting in front of it.
Now, I will say that it’s always good news when I hear about plans to build wind farms, particularly in brownfield locations in areas that suffer from pollution. But is Stelco going to stop at a 60-megawatt wind farm, or does it have grander plans for attracting a wind-turbine manufacturer to the area and stimulating local jobs?
There are two approaches: simply building more clean energy, or doing so in a way that builds an industry around it. Georgian Windpower envisioned the latter, but it’s unclear whether Stelco has a vision at all.
Now would be a good time for the steel maker to show its cards.


Tyler Hamilton is senior energy reporter and columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the cleantech market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper. Tyler can be reached at tyler@cleanbreak.ca