Half Moon Cove considered by competitors

Half Moon Cove in Cobscook Bay could be the focus of two competing Federal Energy Regulatory Commission (FERC) applications for tidal energy generation projects.
FERC has issued a public notice of the successive preliminary permit application filed by Tidewalker Associates for a tidal barrage project. Celeste Miller, FERC spokesperson, says that a preliminary permit allows for two separate actions: the first allows for three years of feasibility studies, during which time the permit holder receives priority for the site, although no actual development is allowed; the second is a license to develop the project. "It looks like Tidewalker already had a preliminary permit, so they are re‑filing to extend that priority" for the site, Miller explains.
FERC's public notice allows a 60‑day timeframe for public comment and for another company or entity to file a competing application. The Eastport City Council has been approached by Ramez Atiya of Halcyon Marine Hydroelectric regarding his patented tidal wing technology and the building of a working demonstration model at Half Moon Cove.
Atiya had initially been in favor of the city forming a limited liability public benefit company to implement the project, but at the June 14 Eastport City Council meeting, Council President Bob Peacock shared a letter from Atiya that addressed a number of concerns the council had raised about such a structure. In that letter Halcyon proposed the formation of Halcyon Development Corporation. Its purpose "would be to secure an operating license from FERC, and then to build and operate a tidal wing in the mouth of Half Moon Cove." In addition Atiya proposed that the corporation would retain "a sufficient portion of the revenues to operate the plant as a demonstration facility and to seek out grants and funding for research," but that a "major portion" of the revenue would go to Eastport and possibly other municipalities.
Miller says that, if FERC were to receive competing applications, a number of different factors would be looked at. "If all things were equal, we would go by the time filed," she says, but she cautions that many factors are taken into consideration by the commissioners. One consideration is "municipal preference," which the commissioners would also factor into their decision.
Peacock was aware of FERC's municipal preference category and was working on behalf of the councillors to gather information about Halcyon's project and the LLC structure. Prior to the June 14 meeting he said of the LLC question, "We have talked to our attorney. What's the benefit? what's the liability?" By the June meeting, the council had decided against the LLC formation and instead voted in favor of adopting a resolution of support for the formation of the Halcyon Development Corporation.
In a separate interview held before the June 14 meeting, Peacock said about the tidal wing technology, "What I do know, if this ever gets built, it will be a showcase for environmentalists around the world, especially if we can make it work with the fishermen.... I want the public to know that we are seriously considering this."
According to Normand Laberge of Tidewalker Associates and Atiya, their respective proposals are structured to benefit the local communities. Laberge says, "With regards to sharing the revenues with local communities, Tidewalker has always been interested in this concept, as I expressed to Eastport's city manager and also with the Passamaquoddy Tribe. As private developers, we realize that the project will not be constructed unless economic feasibility is assured by a responsive financial plan. Tidewalker would be willing to share the revenues with the local communities and also work with local groups to ensure the realization of indirect benefits; e.g., tourism. We have always considered the use of generated electricity locally as a way to make the project responsive to local needs and to gain independence and accountability."
He notes that the timing of discussing community involvement and financial benefits is a delicate process. "I am not sure on the proper methodology for working out these details without infringing on other investor interests while raising possibly unrealistic expectations."
Atiya says of his proposal, "I'm really committed to doing this in Eastport. I've been there, met people, felt welcomed. It's the right place to do this. It's an environmentally sound project. Eastport is in a situation where it could benefit greatly."
The tidal wing construction is expected to cost about $62 million and have a life of 120 years. According to Atiya, the tidal wing project would be a working demonstration model of Halcyon's technology, allowing the company to develop much larger projects elsewhere.
Tidal project spin‑off industries
In response to some questions raised in a letter published in The Quoddy Tides, Atiya says that there are research and business development possibilities connected to the tidal wing project. "There are numerous spin‑off possibilities." Hydrogen, he says, has real potential, but not until the cost of electrolysers comes down. The cost of an electrolyser is currently at $1,000 but would need to come down to about $100 for the numbers to work. "Eventually the cost of hydrogen will be closely linked to electricity. It is one of the fundamental components of industrial processes. Right now most of it is generated from natural gas rather than water C it takes less energy." He explains that its most important current use is as a fertilizer.
If and when the cost of electrolysers comes down, Atiya believes that opening a fertilizer plant in the area could become a spin‑off business that would benefit the area. The demand is there, he notes. "The high cost of natural gas has eliminated at least 30% of fertilizer production in North America." He allays concerns about storage of hydrogen. "Storage methods are totally understood" and utilize high‑pressure tanks, he says.
Meanwhile, Laberge has been researching additional technologies for his proposal. "We have made some interesting progress during the past few weeks during discussions with Dr. Alexander Gorlov, Northeastern University, and renowned tidal power expert... which explored the concept of a flexible dam. The use of the Gorlov Helical Turbine (GHT) is also being considered as a way to reduce project, increase efficiency under an 'environmental' mode of operation, and to optimize generator/electrical production. We are quite excited with this approach, which is consistent with information presented to FERC in our preliminary permit application."