Atlantic Power finalizes 5-year contract for Ontario biomass plant

Atlantic Power Corp. finalized a new contract for the 35-MW Calstock biomass generating facility in Ontario.

The contract runs from April 1 to March 31, 2027, and would help support the waste biomass supply chain in northern Ontario while the forestry sector transitions to an alternative use for waste biomass over the long term, the Ontario Independent Electricity System Operator, or IESO, said in a March 31 news release.

In January, Ontario's Ministry of Energy ordered the IESO to contract with the Calstock plant as part of a government transition plan for the forestry sector. The ministry's order included a directive for the IESO to contract for up to 10 years for the output of the 250-MW/1,000-MWh Oneida Energy Storage Project in Haldimand County in southwestern Ontario. The project is owned by storage developer NRStor Inc. and Six Nations of the Grand River Development Corp.

The directive also calls for the IESO to establish new contracts for the output of small hydroelectric facilities of 10 MW or less that have contracts expiring by the end of 2030.

The Calstock facility, operated by Atlantic Power subsidiary Atlantic Power LP, previously had a one-year power purchase agreement with the Ontario Electricity Financial Corp. that ended in December 2021, according to S&P Global Market Intelligence data. Atlantic Power is owned by I Squared Capital Advisors LLC.

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