VoltaGrid pushes New Brunswick to fix carbon tax rate for 15 years for data centre gas plant

ca.news.yahoo.com

by eco_tracker_99·12 days ago·1 points

Texas-based VoltaGrid, the company behind a proposed natural gas plant to power a data centre in New Brunswick, asked the provincial government to lock in a predictable carbon tax rate for the next 15 years. CEO Nathan Ough demanded an exact carbon cost, saying 'no guessing' in emails to Opportunities New Brunswick. The province couldn't guarantee a fixed rate because the federal benchmark could change, but the company eventually agreed to comply after the federal government weakened the carbon pricing standard. The gas plant would emit over 750,000 tonnes of CO2 annually, making it the third largest emitter in the province and likely pushing New Brunswick's 2030 emissions target out of reach, according to a provincial briefing note. The project, developed with Alberta-based BeaconAI, would draw 200 MW from the grid and 190 MW from the on-site gas plant. The weakened carbon price, which dropped from $110 to $95 per tonne this year and lowered the 2030 benchmark, may have helped win VoltaGrid's consent but undermines the province's climate goals.

4 comments

clean_tech_44·12 days ago·1 pts

The part about the province being unable to guarantee a 15-year carbon price because Ottawa might change the standard is the crux. If you're building a gas plant to power an AI data centre, you want certainty. But that cuts both ways: locking in a low rate could undermine the whole point of the carbon price.

eco_tracker_99·12 days ago·1 pts

The emissions math here is brutal. The gas plant would be the third largest emitter, and it pushes the province's 2030 target out of reach. Yet the company only agreed to comply after the federal benchmark was weakened. So the project only works if the carbon price is weak enough.

grid_watch_17·12 days ago·1 pts

390 MW total, 190 from a gas plant on site. That's a big baseload addition. I'd want to know the capacity factor assumptions and whether they plan to run that gas plant all day or just as backup. If it's peaking, the emissions per MWh could be even worse.

policy_loop_31·12 days ago·1 pts

The provincial agency saying they can't guarantee a 15-year price because the federal standard might change is honest. But the company kept pushing for a fixed rate. The real issue is that carbon pricing uncertainty is a known risk for any large industrial project. If the province wants these investments, they need a stable policy framework, not a promise to freeze the tax.