Ontario is not proceeding with proposed offshore wind projects while further scientific research is conducted. No Renewable Energy Approvals for offshore have been issued and no offshore projects will proceed at this time. Applications for offshore wind projects in the Feed-In-Tariff program will no longer be accepted and current applications will be suspended. Offshore wind in freshwater lakes is early in development and there are no projects operating in North America. The recently installed Lake Vanern pilot project in Sweden is one of the only operational freshwater offshore projects in the world and a pilot project has been proposed in Ohio. Ontario will monitor these projects and the resulting scientific knowledge. Ontario will work with our U.S. neighbours on research to ensure any future proposed projects protect the environment on both sides of the Great Lakes.

It was three years ago when McGuinty confidently lifted a moratorium on offshore wind projects and declared that such projects, after extensive study and consultation with authorities on the U.S. side of the Great Lakes, could be done responsibly without impact to lake ecosystems. Then came the feed-in-tariff (FIT) program less than two years later, which broke new ground in North America by including a FIT rate for offshore wind – 19 cents per kilowatt-hour compared to 42 cents for large-scale solar projects.

The government has regularly trumpeted its commitment to offshore wind development, and Ontario was well positioned to lead North America in terms of attracting manufacturers and a supporting supply chain that could serve Ontario and the U.S. northeast. One project, to be developed by Windstream Energy, was actually offered a contract under the FIT program, while developer Trillium Power was quite advanced with its project development and preliminary studies and had worked hard to attract foreign manufacturers to Ontario. These companies and others must be furious, having invested millions of dollars already only to have the province do an about-face. I mean, is McGuinty admitting that the consultations and study done three years ago were bogus?

This sends a horrible message to the market. If the government can so easily backtrack on previous commitments, what’s next? What other projects will have their plugs pulled?

Offshore wind was the one truly new opportunity in green energy where Ontario had the opportunity to lead and capture the economic development that would come with it, as this Conference Board of Canada report recently pointed out. Companies such as Siemens and Vestas were seriously eyeing Ontario as a place to lay down their North American anchors. That opportunity is now gone. What’s odd is that it’s apparently okay to have a company like Talisman drill for natural gas in the middle of Lake Erie or to ship radioactive material from a nuclear plant through the Great Lakes, but we can’t erect wind turbines with proper setbacks from shore?

Meanwhile, the U.S. is picking up steam on offshore wind. Just as Ontario is backing away, Maryland is moving forward with legislation that would require its utilities to purchase offshore wind capacity. Virginia is getting its act together, as is New Jersey. The Obama administration has pledged to fast-track offshore wind projects in the mid-Atlantic. New York, Ohio, Michigan and others are all moving forward. Ontario, which had the lead, has decided to disqualify itself from the race and watch from the sidelines.

A truly shocking and disappointing development. There’s no reason why the government couldn’t have honoured its FIT commitments but put in place regulations that made sure only the best sited projects got built. At least this would have got the ball rolling, even if it was just one or two projects that qualified. Environmental concerns can be addressed without having to outright derail the train.

I agree that a setback is necessary. I haven’t decided yet whether I think five kilometres it too far or not. I think three kilometers would have been a better compromise. The proposed rules could still change after public consultation, but for now, there are many angry offshore wind developers out there who face the prospects of seeing their projects killed. Toronto Hydro, for example, just spent $1 million or so to put an anonometer in the lake to measure wind speeds for two years. That now looks like wasted dollars.

On the acquisition front, two more promising Ontario cleantech ventures have been plucked up by U.S. firms. On Tuesday Toronto-based biogas maker Stormfisher Biogas announced it had been acquired by Virginia-based Greenhouse Gas Services. Despite having one of the most boring and uninspiring names, Greenhouse Gas Services is a venture of GE Energy Financial Services and AES Corp., so it has some serious backing. The company invests in and develops projects that reduce greenhouse-gas emissions, and it then sells the carbon credits. So here’s my question: If some of the biggest Stormfisher projects are expected to be in Ontario, and since the Ontario Power Authority doesn’t appear to be letting biogas projects keep carbon credits, then what’s in it for Greenhouse Gas Services? I can only speculate that the power authority has quietly decided to let developers keep credits from methane destruction. Something I’ll have to follow up on.

And just today, Sunnyvale, Calif.-based Calisolar announced it had acquired Vaughan, Ontario-based 6N Silicon, a maker of solar-grade silicon that will operate as a wholly owned subsidiary. “In addition, $22.5 million in funding was raised from existing Calisolar and 6N investors,” the companies said in a statement. “The new funds will be used to increase capacity at the Sunnyvale, California cell manufacturing facility and expand silicon purification operations in Vaughan, Ontario.” It’s sad to see 6N fall under foreign ownership so early in its life, but the good news is that Calisolar is likely to set up some module assembly in Ontario to take advantage of the feed-in-tariff program here. Given that its solar cells will contain 6N’s silicon, the company will be well positioned to meet Ontario’s local content requirements and even supply other cell/module makers.

Finally, I have a follow to my story about Vestas and the possibility it will lay roots in Ontario. I spoke Wednesday to the company’s head of global offshore markets, who spoke highly of the Trillium projects and called the opportunity to develop offshore wind in the Great Lakes “fantastic.” He wouldn’t say if Vestas plans to establish manufacturing in Ontario — which isn’t surprising — but given the potential in the Great Lakes, the liklihood of Trillium’s projects moving forward first, and the positive policy and regulatory environment in Ontario (including the feed-in-tariff program, which offers 19 cents per kilowatt-hour for offshore wind power), all the stars are aligned and it’s only a matter of time before Vestas makes its move.

Some signs that Vestas wants to come to Ontario? Last fall Vestas Offshore opened an office in Toronto that is serving as its North American headquarters for offshore wind sales. Last week company officials flew in to tour a number of potential sites in Hamilton, Niagara, Kingston and Belleville, among others, as possible sites for manufacturing facilities. The officials, according to sources, were also here to size up the local supply chain and supporting infrastructure. And this morning, Trillium announced that it has chosen Vestas as supplier of up to 740 offshore wind turbines for its four projects.

Laying roots in southern Ontario makes sense for Vestas, which is looking at long term growth. The feed-in-tariff program in Ontario provides certainty that demand will be there for both onshore and offshore projects, plus Ontario can serve as a great launchpad into the U.S. market, where states such as New York, Ohio, Michigan and Wisconsin also plan to develop in the Great Lakes. Of course, this is potential business on top of planned offshore projects on the east coast. Ontario simply makes more sense as a location for serving those markets.

If Vestas did commit to Ontario, it would be another major win for the province, which last month confirmed a $7 billion deal with a Korean consortium, led by Samsung, which plans to manufacture and develop 2,500 megawatts worth of wind and solar projects in the province.

Seems strange that Toronto is hosting an offshore wind conference, but I suppose it’s an endorsement of the potential Lake Ontario and the other Great Lakes offer as a home for offshore wind projects. I hope to attend some of this conference, which takes place Wednesday Oct. 21 and Thursday Oct. 22, because hopefully I’ll get some more insight into where Ontario and other jurisdictions are heading. Donna Cansfield, Minister of Natural Resources, is giving the first day morning keynote address, and she’s expected to provide an update on the status of Ontario projects. Click here for the program and information on venue.

Ontario, so it seems, is leading the charge for offshore wind development in North America. Never mind that we’re not a coastal jurisdiction. This isn’t about the ocean, this is about the lakes. On Monday, Canada’s largest independent wind developer, Canadian Hydro Developers, announced that it was purchasing the rights to an “Offshore Wind Prospect” that has the potential to be a massive 4,400 megawatt, multi-phase wind project. That would  make it the largest offshore wind project in the world. Located along an 80-kilometre stretch in the middle of Lake Erie (on the Ontario side), the first phase of the planned developed — between 400 and 500 megawatts in size — is expected to be operational by the end of 2014.

Canadian Hydro purchased the rights from Wasatch Wind Inc. of Utah, and said it decided to get into offshore wind because of the feed-in tariff program in Ontario that pays 19 cents for every kilowatt-hour of power that comes from an offshore turbine. Kent Brown, CEO of Canadian Hydro — which is the subject of a hostile takeover bid from Calgary-based utility TransAlta Corp. — said his company’s offshore plans, on their own, should be enough to convince a foreign manufacturer to set up shop in Ontario. While it’s unlikely Canadian Hydro will be able to develop the full 4,400 megawatts, its entry into the field certainly brings momentum to the Great Lakes offshore wind energy rush.

Toronto-based developer Trillium Power is leading the pack. Its first project would be a 710 MW offshore wind farm in Lake Ontario, called the Trillium Power Wind 1, followed by three more projects that add nearly 2,900 MW to its pipeline. Trillium Power Wind 1 is likely to be the first major offshore wind project in the Great Lakes, and possibly North America. In fact, New Energy Finance says there’s nearer-term potential for development in the Great Lakes than on the coasts, and that Ontario is clearly shaping up to be a leader in offshore wind.

Just a few days ago, I reported that the Ontario government is in serious talks with Samsung C&T about bringing wind and solar manufacturing to Ontario. Samsung is also on record saying it’s interested in entering the offshore market, so perhaps there’s an opportunity there. And who knows, GE, since its purchase of offshore turbine maker ScanWind, may be tempted to chase this market as well. The Great Lakes are an interesting place to develop. It’s shallower, less turbulent, and there’s no salt water to play havoc with turbine machinery. All of this reduces wear and tear on gear, and allows for quicker construction because, unlike ocean-based projects, you don’t have to contend with often violent weather that causes costly delays. Now, one potential problem is ice flow, and that’s something developers will have to deal with. But certainly the opportunity is there for developers of offshore wind in the Great Lakes to put up projects at lower cost than the big ocean-based projects we’re seeing in Europe. They now have to prove it.