THUNDER BAY — Ontario Power Generation is looking for parties interested in buying its decommissioned generating station and property on Mission Island.
OPG stopped operating the plant at the end of 2018, citing boiler corrosion that would have cost $5 million to fix.
It said the station–built in 1963 but relegated to infrequent use by 2015–was no longer required to meet the region's power demands in any case.
OPG has hired global real estate services broker Cushman & Wakefield to market the 54 hectare site and the 19,400 square metre power plant.
Neal Kelly, a spokesperson for OPG, told Tbnewswatch that Cushman & Wakefield will assess the proposals that come in and "make a recommendation."
The process is expected to be completed by late this year or early 2021.
Although the broker's promotional material indicates the objective is "to maximize upfront cash sale proceeds," Kelly said OPG is "looking at all options."
He added "The feeling was that maybe somebody wants to come in and do something with the site."
Kelly said OPG believes it has an obligation to the city to consider ways to repurpose the property as an economic development tool.
"I know there's been interest. We'll look at those options and make a decision that is the best decision for OPG and the best decision for Thunder Bay," Kelly said.
The city's Community Economic Development Commission is in regular contact with OPG about the process.
CEO Eric Zakrewski said he's confident OPG intends to exercise its social responsibility by weighing the potential for prospective purchasers to generate new jobs in Thunder Bay.
"They've been very transparent in this process. They've been an excellent partner for the CEDC to work with," Zakrewski said.
He said the commission has provided not just data, but also perspectives "on what would be the highest and best use and value to Thunder Bay and the citizens of Thunder Bay."
Zakrewski said he's aware that a number of different parties with a diversity of ideas are interested in the site.
These include a district steam-heating operation–possibly to support a new industrial park or greenhouses–and what he described as a "high-value" use connected to mining.
"For example, iron ore could be mined somewhere in northwestern Ontario, shipped by rail to that property, and then slightly refined or processed in a furnace-type situation," Zakrewski said.
After processing, the material would be shipped out of the nearby marine terminal to world markets.
"Something like that would create a lot of well-paying jobs," Zakrewski said.
He said he's encouraged by the fact OPG has emphasized it's not interested in seeing the plant stripped of copper and other valuables, then torn down or abandoned.
"They are very much against that, as part of their commitment to Thunder Bay...they don't want to leave the site orphaned," Zakrewski said.
Last year, a group of community residents proposed repurposing the generating station as a combined heat and power plant, creating spinoff jobs in greenhouse operations as well as the manufacturing of wood pellets for residential use and advanced pellets for industrial use.
The Power Workers Union, which represents OPG staff, also argued that preserving the plant would help Thunder Bay become a biomass hub for North America.
Some OPG workers remain on site as the decommissioning process continues.
