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Offshore renewables could ‘definitely’ power a $220B Canadian ocean economy by 2035

Kendra MacDonald, CEO of Canada's Ocean Supercluster, speaking in Ottawa on May 27, 2024. Photo by: Darius Snieckus for Canada's National Observer

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Offshore renewable energy could surge into a $100 billion industry in Canada in the next ten years, powering a domestic "blue economy" of more than twice that market value, the head of Canada’s Ocean Supercluster (OSC), a maritime industry-led group, said on Monday.

Kendra MacDonald, speaking in Ottawa at the launch of three new OSC-backed projects, said the "significant opportunity of scaled offshore renewable energy" would drive the future industrial transformation of ocean areas off both coasts through more sustainable use of ocean resources for economic growth, improved livelihoods and the health of ocean ecosystems — in other words, a "blue economy."

On the back of recent progress in Nova Scotia, however, she says it needs acceleration.

"Offshore wind and other marine renewables represent a significant opportunity — you can see the strides Nova Scotia is already making in this space," MacDonald told Canada’s National Observer.

"We think this will make our target of growing our ocean economy to $220 billion by 2035 possible,” she said, adding that offshore renewables need a boost as the world recognizes the potential for offshore wind in the energy transition.

Offshore renewables could "definitely" power a $220B Canadian ocean economy by 2035, says marine industry group. #climate #energy #renewables #offshorewind

“We mustn't underestimate the speed at which we need to move to capitalize on this,” she added.

According to OSC figures, the ocean economy currently employs more than 425,000 Canadians. The transition of energy, shipping, maritime transport and fisheries sectors to blue economy markets would generate "tens of thousands of new, well-skilled jobs,” MacDonald said.

Nova Scotia is aiming to advance five gigawatts of offshore wind leases off its coastline by 2030 under a process that could begin later this year. Newfoundland & Labrador, meanwhile, reached a deal with Ottawa late last year that empowers the province to take the regulatory lead on offshore wind projects within its inland bays.

Many offshore projects actually start onshore, MacDonald noted, citing as one example World Energy GH2's $12 billion Nujio’qonik hydrogen project in Newfoundland, which in later phases will move from being run from land-based wind farms to offshore developments.

Everwind Fuels has a similar multi-phase project underway in Nova Scotia.

MacDonald said offshore renewables are at the heart of a wider blue economy bonanza taking shape globally. The OECD suggests ocean economies will double in size between 2016 and 2030 to $4 trillion globally.

Canada's ocean industries already contribute $52 billion a year to the country's gross domestic product, and growth into a $220 billion ocean economy is "definitely achievable," she said.

"Growth of the world's ocean economy is set to outpace the broader global economy by 20 per cent by 2030. We believe that this is an enormous opportunity for Canada and for us to sell 'Made in Canada' ocean technologies to the world," said MacDonald.

The OSC is focusing on "supply chain, infrastructure and regulatory environments" to support this expansion through its "Ambition 2035" initiative, unveiled in 2022.

"These are the key pieces — and these are all cross-cutting areas for development in advancing Canada's offshore energy transition,” MacDonald said, adding that Canada needs to be quick to take full advantage of "the speed around the world with which some of these [industries], including energy, are changing, and new technologies are being introduced."

On Monday, the OSC launched its latest tranche of industry acceleration funding, totalling more than $14 million and expanding its portfolio to include more than 100 projects.

The Canadian Electric Propulsion Acceleration Coalition secured $7 million to help commercialize a domestic electric boat manufacturing supply chain in Atlantic Canada.

The Verifying Ocean Climate Impacts Project landed $5 million to explore the impact of large-scale kelp farming on "carbon fixation, biodiversity, and ocean health," while the Optimizing Maritime Supply Chain Operations Project won $2.2 million to study maritime sector efficiency and sustainability.

"Domestic opportunities will bolster SMEs like the ones supported by projects such as those announced today to help them achieve international market success," said MacDonald.

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