Alberta-based Versorium Energy Ltd. has proposed the development of a natural gas-fired power-generating facility at the intersection of Central Avenue and Maureen Street in Thunder Bay.
The Central Avenue Generating Facility project is being proposed in response to the Independent Electricity System Operator’s (IESO) Long-Term 2 capacity procurement program, which seeks to procure up to 400 megawatts (MW) of dispatchable generation.
It will also store and supply heat to Canada Malting’s facility in Thunder Bay and the electricity could be used to serve demand growth within both northwestern and northeastern Ontario.
Jeff Trynchy, Versorium’s manager, stakeholder, and community engagement spokesperson, said the facility would have a capacity of up to 31 MW and would utilize reciprocating engines, similar to car engines, to generate electricity from natural gas.
The engines used for the plant will be able to transition to renewable natural gas and green hydrogen if those fuels become economic.
“The plant will operate as a peaking cogeneration plant that provides flexibility to the electricity system to back up renewable power generation without creating surplus baseload generation,” Trynchy said.
“The power plant will also have safety equipment in place to detect and prevent hazardous conditions from arising.”
Trynchy added that if the project moves forward, Versorium will be working closely with the City of Thunder Bay emergency services to develop appropriate emergency response plans.
Versorium began in late 2020 with a focus on supporting energy transition by developing small, flexible power plants in Alberta. It currently has five operating plants, totalling 25 MW, and approval to build another six plants in Alberta, totalling 30 MW .
“We have selected Thunder Bay as the site for a power plant based on the opportunity to work with Canada Malting and the preference in the IESO’s procurement for resources located in Northern Ontario,” Trynchy said.
“The proposed site is also well situated to use existing electricity and natural gas infrastructure, which lowers the cost of the development compared to other sites.”
Canada Malting, Canada’s largest malting business, currently operates three malthouses located in Calgary, Montreal, and in Thunder Bay, as well as nine Country Elevators. The Thunder Bay plant has a capacity of 125,000 metric tonnes and is well situated to handle malting barley from the Eastern Canadian prairies.
Trynchy says there are economic benefits of having this power plant in Thunder Bay, beginning with the investment and jobs associated with the plant’s construction and operations.
“This includes contributing to the City of Thunder Bay’s tax base and supporting the local community through Versorium’s community investment strategy once the plant is operational,” he said.
“The indirect benefits include making Canada Malting’s operations more competitive and sustainable, and the power plant would also serve growth demand in Northwestern Ontario with local electricity resources.”
Before the plant can be built, Trynchy explained that there are three stages through which the project will first need to pass through.
“The first stage is to complete the requirements of the IESO’s procurement program,” he said. “One of the major requirements is obtaining a municipal support resolution, and we are appearing at the City of Thunder Bay’s Growth Standing Committee to start that process.”
He added that Versorium will be holding an open house to introduce the project to the public on Sept. 24, from 11 a.m. to 8 p.m. at the Slovak Legion.
The second stage will be successfully competing in IESO’s procurement to obtain a contract. Successful proponents will be notified by IESO in June of 2026.
“The third stage is to apply for several approvals from various regulators to ensure it complies with requirements for power plants in Ontario,” he said.
“After completing all three stages, Versorium and its engineering, procurement and construction partner, Enerflex, will start construction and bring the facility into operation.”
