Dofasco’s decision to drop its plan to build a clean and efficient “co-generation” plant shows that the McGuinty government is not really serious about expanding renewable energy, says NDP Energy and Environment Critic Peter Tabuns.

Co-generation plants use waste heat from electricity generation to heat local facilities.

“Something is seriously wrong when companies are withdrawing their proposals to produce green energy in Ontario,” said Tabuns.

Dofasco and Sithe Global Energy have decided not to proceed with a proposal to build a 500-megawatt co-generation plant that would be partly run on recycled heat from Dofasco’s Hamilton steel plant. Enbridge Energy has also withdrawn a proposal for a new high efficiency co-generation plant.

“Co-generation plants are win, win, win scenarios: efficient and clean power, lower energy costs for industry, and reduced greenhouse gas emissions,” said Tabuns. “But the McGuinty government is making it too costly and cumbersome to get projects like this going.”

Last week the McGuinty government turned down 30 of 38 proposed wind farm projects that were submitted for government approval.

“Why is the McGuinty government willing to build new nuclear plants at a cost of $6,000 per kilowatt, but only willing to offer one-third of that price to builders of green and efficient co-generation plants?,” asked Tabuns

Only seven co-generation projects – producing a modest 414 megawatts – have been supported by the government, he noted.

“The fact that Sithe has withdrawn their green co-generation plant proposal, but continues to pursue an inefficient and dirty $1-billion natural gas peaker plant funded by the province speaks volumes about the real energy priorities of the McGuinty government,” said Tabuns.