Quebec let slip a major investment from Volkswagen, citing, for this, the impossibility of having an “electrical connection” for the project, and the “aggressive” schedule of the car manufacturer.
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“If we had had electricity, we would have been there, but we didn’t have it,” said Economy Minister Pierre Fitzgibbon after the announcement of a mega-battery factory. billions of dollars in Ontario last Monday.
“Last spring, we were unable to follow up on Volkswagen’s conditions, which requested significant land near Montreal, dezoned, and mainly the electrical connection that we did not have,” explained the minister in an interview with Gérald Fillion, at Radio Canada.
“Volkswagen requires about 800 megawatts over the next seven years. It was impossible for us to give it, so we unfortunately had to pass on the project, ”he added.
Volkswagen will therefore build its mega-factory on the Ontario side, in Saint Thomas. This will be the German company’s first battery factory outside Europe.
No more electricity in Ontario!
Photo archives, QMI Agency
The newspaper tried to find out how much electricity Ontario had, which managed to meet the needs of the German giant’s project.
Hydro One, Ontario’s largest electricity transmission and distribution service provider, passed the buck to the Independent Electricity System Operator (IESO), which did not provide an answer.
However, according to an analysis made for the Ontario Ministry of Energy, in 2022, by the IESO, Ontario would not currently have the required energy, but calls for proposals will make it possible to acquire up to to 4000 megawatts by 2025-2027.
Disappointment
The president of the Quebec Association of Industrial Electricity Consumers, Jocelyn B. Allard, said he was surprised and disappointed by the turn of events.
“It’s amazing that Hydro-Quebec cannot provide the electricity required for a major industrial establishment in Quebec, but that Ontario is able to do so when Quebec is supposed to be the battery of the American Northeast.
Mr. Allard also says he is “disappointed” that Hydro-Québec has invested hundreds of millions of dollars in recent years to build transmission lines aimed at exporting our clean electricity to the Americans, “but that it says it is unable to allow the establishment in Quebec itself of a major plant in an industry deemed strategic”.
Deadline not so aggressive?
Area of 1,400 football fields, need for approximately 700 megawatts, rapid completion of the project… Hydro-Québec explained to the Journal that many criteria weighed in the balance.
In addition, it would have been necessary to add or build transmission lines and add equipment in the electrical substations.
“These upgrades could not have been carried out in time given the promoter’s aggressive schedule,” commented Hydro spokesman Maxence Huard-Lefebvre.
Production should not begin until 2027, however, according to the Wall Street Journal.
Au JournalHydro has confirmed that it still has “energy surpluses”, but that demand is expected to skyrocket in the coming years.
“But it is important to distinguish between energy supply and transmission network capacity, two of the different factors to consider,” concluded Maxence Huard-Lefebvre.
Visit of the German Chancellor
In addition, François Legault met with the Chancellor of Germany Olaf Scholz last August.
Mr. Legault said on Twitter that he had discussions on possible partnerships in the green hydrogen and battery sectors, among others.
But the Prime Minister’s Office refused to confirm whether or not the specific Volkswagen file had been discussed.
A $177 billion green plan for Volkswagen
- Volkswagen plans to invest 122 billion euros (CA$177 billion) in its transition to the electric and connected car over the next 5 years.
- Until 2027, the group will devote 68% of its total investments of 180 billion euros (262 billion $ CA) to these key technologies.
- Its subsidiary dedicated to the production of batteries, PowerCo, should generate an annual turnover of more than 20 billion euros (29 billion $ CA) by 2030.
- With Monday’s announcement in Ontario, the German giant now has four factories in Canada.
Source : Agence France-Presse