Thursday, May 25, 2023

Construction Begins in Sweden on Europe’s Largest E-Methanol Project

e-methanol production Europe
Building in Sweden, the plant will use natural energy and forest products to produce e-methanol (Orsted)

PUBLISHED MAY 24, 2023 7:16 PM BY THE MARITIME EXECUTIVE

 

Construction began with a ceremonial groundbreaking for what is being called Europe’s largest e-methanol project. Due to begin production in 2025 producing around 50,000 tonnes annually, the facility is being developed by Ørsted as one of the first steps to support the large-scale use of methanol in the shipping industry.

Originally developed by the Swedish e-fuels company Liquid Wind, FlagshipONE will be located next to Övik Energi’s combined heat and power plant Hörneborgsverket in Örnsköldsvik, in Northern Sweden. According to the companies, the site is well suited to support the production with ample supply of wind energy and located near Sweden’s world-leading forest industry. The biogenic carbon needed to produce the e-methanol will come for the forest industry.

The e-methanol from FlagshipONE will be produced using renewable electricity and biogenic carbon dioxide captured from Hörneborgsverket. In addition, FlagshipONE will use steam, process water, and cooling water from Hörneborgsverket. Excess heat from the e-methanol production process will be delivered back to Övik Energi and integrated in their district heating supply.

“FlagshipONE is a pioneering project that will open a new era for green shipping, said Anders Nordstrøm, COO of Ørsted P2X during the ceremony. “FlagshipONE will be the first project in a new green industry in Sweden, which Ørsted intends to spearhead.”

The companies involved in the project point to the rapid growth in the orderbook for methanol-fueled ships. DNV currently calculates the total orderbook at 89 methanol dual-fuel vessels due for delivery by 2028. DNV has predicted that methanol will overtake LNG and become a leading alternative fuel candidate in part due to its early availability and the easy in handling versus the toxic nature of ammonia. The introduction of the EU’s Fuel EU Maritime regulations and other emission standards is expected to further strip the adoption of methanol by the shipping industry.

The project was initially developed by a Swedish startup Liquid Wind which is in strategic partnership with companies including Alfa Laval, Carbon Clean, Siemens Energy, Topsoe and Uniper as it works to develop electrofuel. Ørsted initially acquired a 45 percent stake in the project and coordinated with the decision to proceed to construction purchased the remaining 55 percent from Liquid Wind.

Klimatklivet, a part of the Swedish Environmental Protection Agency, supported FlagshipONE with $14 million during the planning phase. Liquid Wind’s strategy is to compelte plans such as FlagshipONE and attract partners to take over the projects and see them to completion.

FlagshipONE is the first e-methanol project in Ørsted’s ambitious green fuel pipeline. The company is also developing the Green Fuels for Denmark project in Copenhagen and the 300,000 tonnes per year Project Star in the U.S. Gulf Coast area. The concept for the U.S. facility calls for Ørsted to develop a 675 MW Power-to-X facility. The facility will be powered by approx. 1.2GW of renewable energy from new onshore wind and solar PV farms. The biogenic carbon needed to produce e-methanol will be extracted through carbon capture at one or more large point sources. They also have an offtake agreement with Maersk to become part of the network the Danish shipping company is building to fuel its pioneering fleet of methanol-fueled containerships.

PREVENTABLE INCIDENT

NTSB: Wrong Bearing Led to Engine Fire on OSV

NTSB
Courtesy NTSB

PUBLISHED MAY 24, 2023 9:02 PM BY THE MARITIME EXECUTIVE

 

The NTSB has released its investigation into a catastrophic engine failure aboard the OSV Ocean Guardian during sea trials off Seattle last year, and has determined that service technicians had installed an improperly-sized main bearing in one of the engines. 

In late 2021, Ocean Guardian arrived at a yard in Seattle to begin an overhaul for a new, unspecified mission in the Western Pacific. She received a shelter deck over her aft deck, two cranes, an A-frame and extra accommodations spaces. In January and February 2022, local technicians overhauled the top ends of all four of her diesel-electric main engines and replaced bearings as needed on the bottom ends. 

In May, with modifications and repairs completed, the vessel conducted a sea trial to prepare for departure. On May 27, two tugs brought Ocean Guardian out through the Ballard Locks to Shilshole Bay. At about 1400, the crew began to test the ship's propulsion. At 1435, with the No. 3 engine at 30 percent load, the engineers in the control room heard a loud bang and saw smoke in the engine room. 

Flames burst out next to the No. 3 engine, and the chief engineer activated an emergency stop to shut it down. The engineering crew evacuated the engine room and the captain remotely shut down ventilation, closed dampers, shut off fuel supply valves and closed the watertight doors to the compartment. Shortly after, the chief engineer activated the fixed firefighting system and effectively put out most of the blaze. The crew mopped up a few small residual fires on and under the engine room deckplates, and two tugs brought the stricken vessel back to port. (The captain did not report the incident to VTS or the local fire department, according to NTSB, as he believed it was under control.)

The damage to the No. 3 main engine was not repairable. A conn rod had gone through the side of the block, and there was extensive damage throughout the inside of the engine. The No. 3 had to be pulled out and replaced with a spare. 

A forensic analysis determined that something had gone wrong during the maintenance period on the main engines. 

During the overhaul, a service tech had pulled the No. 6 main bearing on the No. 3 main engine for an inspection. The bearing was within tolerances, so the rest of the main bearings on the engine did not have to be replaced. However, it was company policy to replace any bearing removed during inspection with a new one, no matter its condition, in order to prevent any alignment or torque issues with reinstalling a used part. The conn rod bearings were all standard size on inspection, so the tech believed that the main bearing journals were also standard size, as would be normal practice. He did not record the part number printed on the main bearing he removed, and he ordered a replacement in standard size. Another technician installed it. 

Unfortunately, the crankshaft main bearing journals on the No. 3 engine had been ground undersized by 0.025 inches at some point in the past. No record had been kept of this service, which was nonstandard: normally all the conn rod journals and main bearing journals would be milled down at the same time during a repair. 

When the No. 3 engine started up, the wrong-sized bearing shell on the No. 6 main bearing leaked out so much oil that the oil supply to the adjacent No. 9 and 10 conn rod journal bearings fell by about 80 percent. Without lubrication, the No. 9 and 10 conn rod bearings overheated until the cap bolts fractured, sending the rods, bearing caps and bolts flying about the inside of the engine.  

"Vessel crews and equipment manufacturer technicians should carefully identify and document part numbers of all components removed from shipboard equipment. Tracking systems are an effective form of recordkeeping that can be used to ensure proper replacement part selection for reinstallation," advised NTSB. 

After repairs, in August 2022, Ocean Guardian departed for the Western Pacific on an unspecified charter. AIS data provided by Pole Star shows that she spent long periods in strategic locations like the Strait of Luzon near Dalupiri Island; South China Sea near Manila; and East China Sea off Okinawa, where the U.S. maintains a naval base. She carried out several survey trackline patterns, one off Okinawa and another south of Chuuk, in Micronesia. 

Canada Plans $1.8 Billion Investment for New Coast Guard Small Vessels

Canadian Coast Guard
Next phase of the national strategy focuses on the Coast Guard's small vessels (CCG file photo)

PUBLISHED MAY 25, 2023 7:38 PM BY THE MARITIME EXECUTIVE

 

The next phase of Canada’s National Shipbuilding Strategy was announced today focusing on the Canadian Coast Guard's small vessels fleet. The federal government reports it will invest nearly C$2.5 billion (US$1.8 billion) for the renewal of its small ship fleet through the acquisition of up to 61 vessels. It is part of a strategy that was first launched over a decade ago investing in science and fisheries vessels, mid-size multi-purpose vessels, and ultimately two Polar icebreakers.

The new program focuses on small craft, barges, and work boats providing new equipment to the Canadian Coast Guard. The small vessels provide search and rescue services, assist disabled vessels, and support aid to navigation programs. So far, under the National Shipbuilding Strategy, 16 small vessels, including 14 search and rescue lifeboats and two channel survey and sounding vessels have been delivered to the Canadian Coast Guard.

The next phase calls for an investment to complete the renewal of the Canadian Coast Guard’s small vessels fleet, which plays a critical role, especially in shallow coastal waters and inland lakes and rivers. It will enable them to acquire six mid-shore multi-mission vessels and one near-shore fishery research vessel. It will also consist of 16 specialty vessels, ranging from shallow draft buoy tenders to science and enforcement vessels, air cushion boats, and search rescue lifeboats. The work will be specifically designated to smaller shipyards and suppliers across Canada to support the marine industry.

"This is a critical investment that will help modernize the Canadian Coast Guard's small vessel fleet,” said Joyce Murray, Minister of Fisheries, Oceans and the Canadian Coast Guard. “We are making sure the Canadian Coast Guard has the equipment it needs to keep Canadians and Canada's waterways safe, while also creating good-paying jobs across the country."

It is the latest piece of the government's long-term, multi-billion-dollar program focused on renewing the Canadian Coast Guard and Royal Canadian Navy fleets. Since the program was launched in 2012, the federal government reports contracts under the strategy are estimated to have contributed approximately C$25 billion to Canada's gross domestic product.

The first newly built vessel commissioned on the program came in 2019, CCGS Sir John Franklin, the first of three Offshore Fisheries Science Vessels (OFSVs). The other two OFSVs – the CCGS Jacques Cartier and CCGS John Cabot – were delivered in November 2019 and October 2020. The 16 multi-purpose vessels were also provided and they carry out multiple missions, including icebreaking in moderate ice conditions and assisting in shipping and springtime flood control in the St. Lawrence waterway and Great Lakes region. They also perform search and rescue, emergency response, and security and protection missions, and maintain Canada's aids to navigation.

Two Arctic and Offshore Patrol Ships are also planned and they will serve missions including North Atlantic Fisheries Organization (NAFO) patrols, operating as the primary conservation and protection enforcement vessels on Canada's east coast, and expanding its patrol capability into the low Arctic. In August 2019, the government also announced the planned procurement of six new program icebreakers to support year-round marine trade in Eastern Canada, the St. Lawrence Waterway, and the Great Lakes. Finally, the government plans two Polar icebreakers.

In addition to the shipbuilding efforts, the government has said it would invest C$2 billion for repairs, refits, and vessel life extension work on the existing fleet until new ships are delivered.

 

Vancouver Increases Container Throughput at DP World Terminal

Vancouver container terminal
DP World invested in expanded capacity at its downtown Vancouver terminal (Vancouver Fraser Port Authority)

PUBLISHED MAY 23, 2023 7:27 PM BY THE MARITIME EXECUTIVE

 

Vancouver Fraser Port Authority joined with terminal operator DP World to mark the completion of a major expansion project at one of the port’s terminals. The increased capacity is considered critical to the near-term growth of the port while Vancouver continues a long-term process to add a third terminal and operator to the port.

Port executives noted that DP World has operated for over 20 years in British Columbia handling over 20 million loaded TEU at the Centerm Container Terminal. It is also the 100th anniversary of terminal operations overall in Vancouver. The port is a critical part of Canada’s trade handling a third of Canada’s trade in goods outside of North America.

The expansion project was designed to increase throughput at the terminal by 60 percent. Construction on the US$260 million project was completed in February 2023 and with the facilities now in operation capacity has been increased to 1.5 million TEU a year, 40 percent over the previous capacity of 600,000 TEU annually. The terminal’s footprint was increased by 15 percent. 

As part of the investment, DP World also used the project to reduce the terminal’s environmental impact. Shore power connections were installed for containerships on dock. They also converted the existing diesel yard cranes to electric. The design of the expanded facility also eliminates wait times for vehicles at train crossings and used LEED standards in the construction.

Vancouver Fraser Port Authority also completed the South Shore Access Project earlier this month in partnership with the Government of Canada and with funding from the National Trade Corridors Fund. The final part of the South Shore Access Project, including upgrades to Waterfront Road and the removal of road and rail conflicts in the area to connect terminals directly to the Trans-Canada Highway are now complete. 

“Expanding the footprint of the Centerm container terminal and improving road and rail links in the area will increase container trade capacity and resiliency at the Port of Vancouver in the near term,” said Robin Silvester, President and Chief Executive Officer, Vancouver Fraser Port Authority. “As recent years have shown, a robust container sector is critical for Canadian exports and for reliable access to the goods Canadians depend on every day.” 

Port officials highlight Canada’s west coast marine container terminals are forecast to hit capacity by the mid- to late-2020s, following a decade of five percent average annual growth.  In 2022, the port handled an actual count of just under two million containers (3.55 million TEU).

In April the port received government consent for a controversial plan to add the third terminal to the port. They have been planning and lobbying for the terminal for a decade and still need to win critical approvals. Opposition continues based on the potential impact of the site both on natural habitats of fish and wildlife as well as the potential environmental issues. Port executives highlight the design features to limit the impact while continuing to point out that Vancouver must expand its container capacity.

Deputy finance minister tapped as next Hydro-Quebec CEO: Sources

Quebec’s government has chosen former pension fund head Michael Sabia as the next chief executive officer of Hydro-Quebec, according to people familiar with the matter. 

Sabia has been tapped to succeed Sophie Brochu, who left as head of the electrical utility in April. The appointment could be made official as soon as Wednesday after formal approval from Quebec’s cabinet, the people said, speaking on condition they not be named because the matter is still private.

Sabia, 69, is Canada’s deputy minister of finance, serving as the top bureaucrat to Finance Minister Chrystia Freeland. Earlier this year, he helped craft the Canadian government’s $491 billion (US$364 billion) budget for the 2023-24 fiscal year, laden with incentives for low-carbon technology, including clean electricity. 

Hydro-Quebec is an important producer and exporter of hydroelectric power, pumping $6 billion (US$4.4 billion) into provincial government coffers last year. But it has major challenges ahead. After spending years working to convince US states to buy its abundant clean energy, the government-owned firm faces the prospect of future power shortfalls as the province lures more manufacturers. One of the projects Hydro-Quebec has committed to is the Champlain Hudson Power Express, Blackstone Inc.’s US$6-billion transmission line to feed New York City.

The utility is also one of the province’s largest bond issuers, with $5 billion (US$3.7 billion) in long-term debt financing in 2022, according to last year’s annual report. 

Sabia was CEO of the Caisse de Depot et Placement du Quebec, Canada’s second-largest public pension manager, from 2009 to 2020, leading the institution into an investment of more than $7 billion in a light rail system in Montreal, the Reseau Express Metropolitain. Prior to his time at the Caisse, he was CEO of BCE Inc., the country’s largest telecommunications company. 

“It’s nice to see someone here who understands how the business works and what needs to be done to ensure a climate of confidence in the economic sector,” said Jocelyn Allard, president of a Quebec lobbying group that represents industrial users including Glencore Plc and Rio Tinto Plc. In the past, Allard has criticized the uncertainty surrounding the price and quantity of future power supplies.

Normand Mousseau, a Université de Montreal professor and energy expert, said he wonders if Sabia is the right fit for what Hydro-Quebec needs. “The issue right now is not financial, but technological, technical, of transformation and of demand response,” he said. “We could have had someone with a background in technology, someone who has mastered in-depth technological transformations, who is capable of bringing the necessary innovation to Hydro-Quebec.”

WORKERS CAPITAL

CPPIB CEO says global growth to be

 'challenging' over long-term

The head of Canada’s largest pension fund said there are still “outstanding questions” about how the global economy will grow over the long-term and cautioned his fund is unlikely to record the same double-digit returns it booked over the past decade.

John Graham, president and chief executive officer of the Canada Pension Plan (CPP) Investment Board, told BNN Bloomberg in an interview that he expects the U.S. to resolve its debt ceiling debacle and is looking to raise liquidity to take advantage of “opportunities” the fund sees in equity and fixed-income markets.

“What is going to drive global growth over the next 10 years? That’s one of the things that keeps us up at night,” Graham said.

Graham’s comments come in the wake of CPP Investments releasing its latest annual report for fiscal 2023 on Wednesday, in which the pension fund reported a 1.3 per cent return. That was the lowest return over the past 10 years but above the 0.1-per-cent benchmark tied to its reference portfolio measures.

Funds under CPP Investments’ management increased by a total return of 10 per cent over the past 10 years, it reported, which Graham acknowledged “would be challenging over the next 10 years to repeat that.”

Canada’s largest money manager said it has $570 billion in assets under management, up about $31 billion due to a profit of $8 billion and net transfers of $23 billion from Canadians in its last fiscal year.

The fund’s return for the year recorded a shortfall in its fixed-income and real estate investments as long-duration government bonds and higher interest rates led to a drag on those asset classes. Those declines were offset by strong gains from its private equity, infrastructure and credit investments, CPP Investments said.

Meanwhile, Graham described the fixed income markets as “interesting” as central banks around the world lifted interest rates to help combat rapidly rising inflation. CPP Investments’ booked a 0.8-per-cent decline among its fixed-income assets that it attributed to exposure to longer-dated government bonds. He noted that CPP Investments will continue to be “constructive” in its energy portfolio investments.

“The path to get here was painful with discount rates rising,” said Graham. “But we’re in a better place in terms of fixed income than we were a year ago.” 

A weaker Canadian dollar served as a tailwind to CPP Investments as 78 per cent of its net assets were derived in foreign currencies. CPP Investments recorded a $25 billion gain, or an annual increase of 5.1 per cent, thanks to its foreign exchange investments.

CPP Investments also said that Graham’s compensation rose slightly higher to $5.38 million last year – $4.6 million of which was tied to various annual incentives.  


CPP Investments reports 1.3 per cent return 

for its latest fiscal year

The Canada Pension Plan Investment Board is bracing for headwinds in the event of a recession but said a wide range of investments makes it well-positioned for uncertain economic conditions.

The CPPIB reported Wednesday it earned a net return of 1.3 per cent in its latest fiscal year as inflation and rising interest rates weighed on both stock and fixed-income markets.

The board said the investment gains combined with net transfers from the Canada Pension Plan brought its net assets to $570 billion on March 31, up from $539 billion a year earlier.

"I think we've been trying to be very clear and share the investing market has gotten more competitive and more challenging," said CPP Investments chief executive John Graham in an interview.

"We expect forward-looking returns to be down compared to where they've been historically, but we're also in a position where we're really benefiting from active management and benefiting from diversification."

Graham said geopolitical events and a potential recession could be difficult to forecast, but CPP Investments is well-prepared.

"The key is for us to build a resilient portfolio — a portfolio that will perform through a wide range of macroeconomic and geopolitical scenarios," he said. "The way we do that is diversification."

CPP Investments said the gain for its latest fiscal year reflected returns on investments in infrastructure and certain U.S.-dollar-denominated private equity and credit assets, which benefited from foreign exchange. External investment managers using quantitative, equity, and fixed-income trading strategies also contributed positively to results, the firm said. 

A weaker loonie against the U.S. dollar and other major currencies also helped boost investment returns.

The increase included $8 billion in net income and $23 billion in net transfers from the Canada Pension Plan.

But its performance was partially offset by declines in both equities and fixed income across major markets as high inflation and rising interest rates weighed heavily on both asset classes. 

"We had headwinds in certain parts of the portfolio and tailwinds in other parts of the portfolio," said Graham, who highlighted challenges in office real estate, retail and the technology space over the past year.

"Certain asset classes continue to be pretty robust, like renewable had a pretty robust year, conventional energy had a robust year," he said. 

As of March 31, CPP Investments' portfolio included 33 per cent in private equities, 24 per cent in public equities, 12 per cent in fixed come, 13 per cent in credit investments, nine per cent in real estate and nine per cent in infrastructure.

In addition to investing across various asset classes, Graham said global diversification is key to CPP Investments' strategy for navigating a possible recession.

But amid Canada's ongoing political tensions with China, Graham said CPP Investments remains "surgical" and "selective" in determining which companies in that country to invest in.

He said CPPIB has invested around nine per cent of its funds in China and "we constantly debate whether that's the right amount."

"The right amount is really based on whether we think we're going to get compensated on a going forward basis for the risk," he said.

"We do believe that we should have exposure to China because it is the world's second largest economy. It is a fast-growing economy and it's very connected right now to the broader world. We certainly are aware and alive to some of the challenges and we spend a lot of time thinking about how one should invest in China."

On a relative basis, the fund’s net return of 1.3 per cent for the year beat the 0.1 per cent return by its aggregated reference portfolios over the same period.

The fund's 10-year annualized net return stood at 10.0 per cent.

This report by The Canadian Press was first published May 24, 2023.

Danielle Smith's gaffes put Alberta up for grabs

If it’s always the economy, Alberta Premier Danielle Smith and her United Conservative Party should be cruising toward reelection on Monday.

The energy-producing province’s unemployment rate is lower than it’s been for most of the past decade. Inflation is running cooler than the Canadian average. And oil prices are higher than those the last three premiers enjoyed, keeping Alberta’s producers profitable and helping balance the budget with the spending taps still open.

But a trove of Trumpian comments from Smith’s former career as a radio talk-show host — plus a few during her time as premier — and policies that push Alberta toward Quebec-style autonomy have put control of a province that produces about as much oil as Iran within the reach of her center-left challenger. 

Polls have consistently shown New Democratic Party Leader Rachel Notley, herself a former premier, neck-and-neck with Smith. “The election should not be close,” said Duane Bratt, a political science professor at Calgary’s Mount Royal University, “because conservative voting is the default option in this province and the economy is rebounding.”


A victory for Notley — whose party leans left on most issues but has adapted to the political necessities of a province that relies on oil and gas revenues — would be a boon for Justin Trudeau. While she argues federal targets for cleaning up the energy sector need to be scaled back, Notley would be a more reliable partner for the prime minister on climate policy and beyond. Still, she has distanced herself from Trudeau and her federal counterpart, NDP Leader Jagmeet Singh, due to their unpopularity in Alberta. 

A poll by Abacus Data released May 22 showed Smith’s United Conservative Party leading with 40% of eligible voters, compared with 37% for Notley’s New Democrats. A poll by the same firm a week earlier had those figures reversed.

Smith has found herself in a competitive race in part because of comments that appeal to her base’s more extreme elements while alienating mainstream conservatives. 

For example, on a 2021 podcast, she likened Albertans who were vaccinated against COVID-19 to followers of Adolf Hitler. As a candidate for her party’s leadership in 2022, she implied on a Twitter broadcast that cancer is largely preventable up until stage four. And just hours after taking office, she said unvaccinated people were “the most discriminated against group that I’ve ever witnessed in my lifetime,” drawing the ire of Indigenous communities in Canada. She walked back that statement the next day, saying she didn’t “intend to trivialize in any way the discrimination faced by minority communities and other persecuted groups.”

Smith has faced criticism for her actions as premier, too. An ethics watchdog found she broke the rules by involving herself in the case of a street preacher facing pandemic-related charges. And the first bill her government introduced was the Alberta Sovereignty Within a United Canada Act. It took effect in December, with Smith saying it gives the province a framework to resist federal laws or policies that hurt Alberta.

The move added “another layer of uncertainty” for businesses that want to move to or invest in Alberta, Deborah Yedlin, president of the Calgary Chamber of Commerce, told BNN Bloomberg Television at the time. Similar measures taken by separatist parties in Quebec prompted many businesses to scale down or leave the province, Yedlin added. 

Smith has also floated the ideas of pulling Alberta out of Canada’s main pension plan and replacing the Royal Canadian Mounted Police with a provincial police force.

The sovereignty bill is at the center of Notley’s critique of the premier.   

“It is a really damaging piece of legislation, and it’s one that was crafted in a fit of pique by a bunch of extremists in the UCP, most of whom seem to have taken over the party, much to the chagrin of many reasonable conservatives all across this province,” Notley said in an interview earlier this month.

Smith’s team hasn’t responded to emails and phone calls from Bloomberg requesting an interview. The premier has almost entirely refrained from campaigning on her marquee legislation. Instead, she has focused on tax cuts and job growth, pointing to Notley’s largest vulnerability.

The NDP leader was elected in 2015 among dissatisfaction with the conservatives that had ruled the province for decades, and with a boost from a splinter faction that sapped votes from the main incumbent party. 

However, Notley’s government was hampered by low oil prices that sent Alberta’s budget into years of deficit, a departure for the fiscally conservative province. She also came under fire from many in the energy industry who saw moves such as introducing a carbon tax and raising corporate levies as hurting the province’s main economic engine.

Amid the dissatisfaction, former federal cabinet minister Jason Kenney reunited the province’s conservatives and marched to a victory in 2019. His time in office was cut short in 2022, as he took flak from a far-right caucus faction and faced broader criticism of his pandemic management.

It was in that environment that Smith’s criticism of Covid policies helped her win the UCP’s leadership contest against members of Kenney’s government, including Finance Minister Travis Toews, who has declined to run for reelection this year. Kenney’s energy minister, Sonya Savage, also isn’t seeking reelection.

Notley is attempting a rare comeback in Canadian politics. No former Alberta premier has ever won reelection after losing it, and the last time it happened in any Canadian province was in Quebec in 1985.

While she has a rich target in Smith and a relatively scandal-free four years as premier to hold up as an alternative, the weak economy of her tenure may foil her chances. 

“People remember what the bad times were like and who was in charge,” said Bratt, the Mount Royal political scientist. “They remember when the good times were there and who was in charge, regardless of whether that was due to the global price of oil.”

With assistance from Robert Tuttle and Brian Platt.

Alberta, British Columbia and Quebec join Ottawa in investigating ChatGPT

The governments of Alberta, British Columbia and Quebec are joining the federal privacy commissioner in investigating the company behind the artificial intelligence-powered chatbot, ChatGPT.

Alberta's privacy authority says the joint investigation would see if OpenAI, which is the parent company of ChatGPT, obtained valid consent from Canadians to collect, use and disclose their personal information via its chatbot.

ChatGPT, which was launched in November, uses already existing information on the internet and responds to questions from users in a conversational manner. 

The privacy authorities say they will also investigate if the U.S.-based company followed its obligation to transparency, access, accuracy and accountability.

Privacy Commissioner of Canada Philippe Dufresne has said artificial intelligence and its effects on privacy are a top priority. 

The federal authority launched its investigation in April.

This report by The Canadian Press was first published May 25, 2023.

Police lay no charges against former Unifor head Jerry Dias in alleged bribery case

Unifor National President Jerry Dias speaks in Toronto on November 5, 2020. , 
THE CANADIAN PRESS/Carlos Osorio

Former Unifor president Jerry Dias was not charged as the result of an investigation launched last year into allegations that the longtime union leader accepted a bribe, Toronto police said Thursday. 

The police's financial crimes unit began investigating the former president of Canada’s largest private sector union last spring after the union handed over money Dias allegedly accepted from a supplier of COVID-19 rapid test kits he promoted to members. Police said Thursday that the investigation has been concluded. 

Unifor at the time charged Dias with violating the code of ethics and democratic practices of the union's constitution, and said a hearing would be held before the national executive board.

Dias said in a statement that he reached a "satisfactory legal settlement" with Unifor.

Unifor’s director of legal and constitutional matters Anthony Dale said in a statement Thursday that the union’s own matters relating to Dias have been concluded to its satisfaction and he will no longer be subject to a hearing process under the union’s constitution. 

Dale said the union was informed by police at the end of 2022 that no criminal charge would be laid, but the union’s own conclusion was unrelated to the police investigation. 

Dias said that these developments “reinforce what I have always known to be true: that over my 45-year career, I have consistently acted with integrity and in the best interests of Unifor members.”

Dias said the allegations against him were not true. 

“I have never made a dime outside of my salary with Unifor, and I have always lived by the union’s Code of Conduct,” he said.

“In saying this, it is time to move on with my life.” 

The union had said Dias allegedly gave a Unifor employee $25,000, which he said was half of the money from the supplier, and the employee subsequently filed a complaint under the Unifor code of ethics and delivered the money to the union.

Dias committed to entering a rehabilitation facility in the wake of the incident, saying his use of painkillers, sleeping pills and alcohol to deal with a sciatic nerve issue had impaired his judgment. 

Dias began a medical leave on Feb. 6, 2022, around a week after being notified about the union's independent investigation into the matter. He was already set to retire that year, but did so early.

Dias said Thursday that he has received medical attention to deal with “serious health issues including debilitating sciatica,” and has also received assistance to eliminate his dependence on opioids to deal with pain. He said he regrets the distraction to members, and thanked those who reached out to him.

Dias had been the president of Unifor since 2013 when it was created as a merger between two unions. He was an outspoken figure of the labour movement in Canada, playing an key role during the negotiation of the United States-Mexico-Canada Agreement and the successful fight to reopen the General Motors plant in Oshawa, Ontario. 

In an election in August 2022, former national secretary-treasurer Lana Payne was elected the new president of Unifor, running against Dias’ former executive assistant Scott Doherty, as well as Dave Cassidy, president of Unifor Local 444.

Dias said in the statement that he is proud of his work as Unifor’s first president.

“While I will no longer be leading the actions on the picket lines and at the bargaining table, I will always be Unifor’s number one supporter.”

Can beer convince people to drink recycled wastewater?

Earlier this year, a new beer appeared on the menu at Fox City Brewing Company in Forsyth, Georgia. Opened three years ago in a former ice house an hour south of Atlanta, Fox City serves pale ales, stouts and other microbrews. The new addition, called Revival Lager, stands apart from anything it’s made before — and from nearly every other beer on tap in the U.S. Fox City’s menu calls it a “light, crisp, eco-friendly lager made from highly repurposed and recycled water.” This is a delicate way of saying that it’s made from treated sewage. 

“We flower up the verbiage a little bit, to make sure people try it,” says Chris Bump, the brewer at Fox City, sitting in the taproom on a Tuesday afternoon in March. When a waitress brings over two pints of Revival, Bump, a 35-year-old Georgia native with tattooed arms, a full beard and floppy baseball cap, raises a toast before we both take a sip. It is, as advertised, a refreshing, easy-drinking beer.

Bump did not wake up one morning and decide to try brewing a beer with recycled wastewater. The idea came to him via the Canadian water technology company H2O Innovation, which operates a sewage treatment plant in Forsyth and wanted a beer to serve at the annual symposium of the WaterReuse Association. Held this year in Atlanta, the event brings together hundreds of utility leaders, engineers and scientists to discuss the state-of-the-art in recycling water. A few hours after I shared a pint with Bump, cans of Revival would be served at a symposium party at the Georgia Aquarium, where self-professed “water nerds” mingled while manta rays and beluga whales swam behind glass walls.

Fox City is not the first microbrewery to be enlisted in the cause of “potable reuse,” the industry term for reintroducing treated wastewater into a drinking-water supply. Utilities have spent decades trying to convince US cities and towns that drinking recycled water is safe, but proposals for so-called “toilet-to-tap” systems have stirred up resistance and backlash. In response, advocates are increasingly turning to beer as a go-to strategy for helping consumers overcome the yuck factor. And as more cities find themselves squeezed between growing populations and drought-stressed water supplies — making potable reuse a more attractive, if not inescapable, option — wastewater beers are likely to proliferate in the years ahead. 

“If you give somebody a glass of water and tell them that it's been purified from wastewater, more than likely one person out of two will not drink it,” says Guillaume Clairet, chief operating officer at H2O Innovation. “But if you convert that same water to beer, then all of a sudden nine out of 10 will.” 


IN TREATMENT

The water Bump used to make Revival came from the northwestern edge of Los Angeles, where the Las Virgenes Municipal Water District recently opened a small demo facility as a showcase for the public to learn about potable reuse. Las Virgenes depends entirely on water from the California State Water Project, a 700-mile system of canals, dams and pumps that transports fresh water from the northern part of the state. After that water passes through toilets and drains in the district, it goes to a traditional waste treatment plant; from there, it’s either discharged into a local creek (and eventually into the Pacific Ocean) or sent through specially designated purple pipes to irrigate parks and golf courses. 

Three years ago, Las Virgenes began piping a small fraction of the plant’s outflow — about 1 million gallons a day — into the demo facility, where it is put through the additional steps of ultrafiltration (UF), reverse osmosis (RO) and an ultraviolet-advanced oxidation process (UV AOP) to be brought up to state’s standards for recycled drinking water. Each step in this alphabet soup of water tech removes increasingly small contaminants, from bacteria to viruses to salts and hormones.  

“The reuse industry is about belts and suspenders,” says Clairet at H2O Innovation, which makes the UF and RO equipment used in Las Virgenes. 

When the WaterReuse Association suggested brewing a beer for its symposium, Clairet, who sits on the planning committee, took on the job of figuring out how to do it. He had hoped to get the water from the onsite treatment system at a hospital in Atlanta, which uses H2O equipment to recycle wastewater for heating and cooling, but Georgia state law lacked a framework to allow it to be used for drinking. So once Fox City was on board, Clairet called his contacts at Las Virgenes, who agreed to supply the water. 

In January, Las Virgenes put a half dozen 55-gallon drums of purified water on a truck to Forsyth, where Bump pumped it into his hot liquor tank — the first step in the beer-making process — and got to work. He had wanted to brew something more exotic than lager, but Clairet and the symposium’s organizers insisted on a straightforward beer that highlighted the water’s purity. (Hazy and funky are not necessarily desirable traits for a brew meant to counter people’s associations with sewage.) 

“I really enjoy making sour beers,” says Bump. “But the more I thought about it, that's probably not the best thing. So I think they made a good call there.”

PITCHING POTABLE RESUSE

The idea of making beer with recycled water originates with a brewer in Oregon named Art Larrance. Now retired, Larrance is co-founder of Cascade Brewing and a pioneer of the state’s craft beer industry. For years, he sat on the advisory committee for Clean Water Services, a utility in suburban Portland that treats about 70 million gallons of wastewater per day, most of which gets discharged into the Tualatin River. At a meeting in 2014, the utility’s management asked the committee to help think of ways to demonstrate that this water was safe to drink. “I said, ‘Well, let's just go make some beer with it, if it's that good,’” recalls Larrance.

Clean Water Services decided to host a competition among local homebrewers to make beer with its effluent. When the state’s department of environmental quality called a public meeting about the idea, it immediately drew national attention. “I probably got 100 media phone calls in the first 30 days,” says Mark Jockers, then public affairs manager and now chief of staff at the utility. By the time the competition happened in the summer of 2015, more than 400 news outlets had covered it. 

That coverage included plenty of wisecracks about sewage and toilets, but it was also, by and large, the kind Clean Water Services had been aiming for. Most stories, according to an analysis commissioned by the utility, presented potable reuse in a favorable light. Jockers says the stunt successfully delivered the message that water-recycling technology is well-established. 

Last fall, a study by researchers at Stanford and the University of Illinois at Urbana-Champaign found that recycled wastewater was as clean, if not cleaner, than the surface-water sources that supply many cities. Recycled water’s recent history as sewage, paradoxically, means that utilities and regulators tend to put it through more rigorous treatment and testing than water from rivers and lakes, which, more often than not, includes the outflow of wastewater treatment plants. This reflexive bias makes recycled water some of the safest you can drink. 

Namibia, one the most arid countries in sub-Saharan Africa, has been recycling water for more than 50 years. (Lucas Van Vuuran, one of the scientists who helped develop the first plant there, also coined a favorite slogan of potable reuse advocates: “Water should not be judged by its history, but by its quality.”) Singapore, a similarly water-stressed country that depends on neighboring Malaysia for its supply, has also been recycling water for decades; its water agency collaborated with a local brewer to sell beer made with treated water. Both countries employ so-called direct potable reuse (DPR) systems, where treated water is piped directly back into the drinking supply. 

In the US.., such systems have proven to be a hard to sell. The largest water recycling plant in the world is in Southern California. Opened in 2008, the Orange County Water District’s Groundwater Replenishment System can treat up to 130 million gallons of wastewater per day, enough to meet the needs of nearly 1 million people. For now, that water is used to help refill the aquifers that supply the region.

This type of system, known as indirect reuse, puts an environmental buffer between treated water and drinking pipes. It serves as both quality control check and psychological crutch, allowing consumers to imagine pristine mountain brooks instead of bubbling tanks of sewage. For Clean Water Services’ first beer competition in 2014 — before the utility had Oregon’s permission to provide treated water to brewers directly — it took water from the Tualatin River, just below where its treatment plant discharges, in a deliberate attempt to illustrate the flimsiness of the environmental buffer.

“We call that the waters of amnesia,” says Jockers. “You put the effluent in the river, and then you take it out, and magically, it's [drinking] water.” 

In 2013, the drought-prone West Texas town of Big Spring began running the first DPR system in the US. But even there, the water flows into pipes where it mixes with the supply from local reservoirs and is then treated again before being delivered to homes. El Paso, about 300 miles west of Big Spring, is planning to skip this final redundancy with a DPR system, set to begin operating in 2026, that can provide up to 10 million gallons a day of drinking water. The city hasn’t made a beer yet from its pilot plant, but it plans to, says Gilbert Trejo, vice president of operations and technical services for the local water utility, El Paso Water. 

'ACTIVATED SLUDGE'

Since Clean Water Services’ success in Oregon, recycled water brewing projects have spread to cities in California, Colorado, Arizona, Idaho and elsewhere. Beers with names such as Activated Sludge and One More Time Around have become a regular fixture at water engineering conferences and craft brewing festivals. Nearly 100 breweries have made recycled beers, according to Travis Loop, organizer of the Pure Water Brewing Alliance, a group of utilities, brewers, engineers and tech companies involved in these projects. “People always love to sit down and share a beer and talk,” says Loop. “And about 90% of any beer is going to be water, so it just makes a lot of sense.” 

Ironically, it was a macro-brewer that helped create the taboo against recycled water. After a particularly bad drought in the late 1980s, a utility in Southern California’s San Gabriel Valley put forward a plan to replenish its underground aquifers with recycled water. Miller Brewing Company (now part of Molson Coors) at the time drew 1 billion gallons of water per year from the same reservoir for a local plant. Afraid of what customers might think, the beermaker joined public opposition to the plan — helping coin the term “toilet-to-tap” and suing regulators, who shelved the project.

That fight — and the term that sprang from it — has created an ongoing headache for cities looking to adopt water recycling plans. In El Paso, says Trejo, residents often take “toilet-to-tap” literally, imagining a pipe from their toilet to their sink with maybe a charcoal filter in between.

For most Americans, water simply appears when they turn on the tap and disappears down the drain as if by magic. They don’t think too much about what happens before or after because they don’t have to. “I call it the flush-and-forget society,” says Aaron Tartakovsky, co-founder and CEO of Epic Cleantec, a San Francisco startup that designs, installs, and runs on-site water-recycling systems for apartment buildings and businesses. “This entire infrastructure is very literally out of sight out of mind. And that's a problem.”

In Tampa, Florida, where city leaders have been searching for ways to meet growing demand for water without draining local rivers, plans to replenish reservoirs with recycled water instead of letting it flow into the Bay have repeatedly run aground due to lack of public support. The most recent proposal last year came under attack as part of a failed effort to unseat the city’s Democratic mayor, Jane Castor, who supported it. The Tampa Bay Young Republicans produced an ad that used the “toilet-to-tap” label and showed a mother and daughter who pretended to be excited to drink glasses of brown “potty water.” 

This weaponization of potable reuse has been a setback in efforts to educate the public about recycled water, Brian Armstrong, executive director at the Southwest Florida Water Management District, told the audience during the WateReuse Symposium in March. “Right now, the only way to get people to drink this is when we put it in beer,” he said, only half-joking. 

In San Francisco, Tartakovsky has also found beer to be a useful conversation starter. Last year, Epic Cleantec took more than 2,000 gallons of water from its on-site purification system at a 40-story apartment building in the city’s Mission District and delivered it to Devil’s Canyon Brewing Company in nearby San Carlos, which used it to make a Kolsch-style ale called Epic OneWater Brew. The idea was to show regulators and industry folks that the company’s technology produces water clean enough to drink. 

In 2015, San Francisco became the first city to require new large buildings to have on-site water reuse systems, but for now, those systems are limited to non-potable uses such as flushing toilets. Tartakovsky hopes the city — and others — will clear the way for on-site potable reuse. 

At the United Nations Water Conference in New York in March, Tartakovsky made the rounds passing out cans of OneWater Brew, including to executives at AB InBev and other global beer brands. “I can tell you right now that we are already having conversations with some of the biggest brewers in the world about doing water reuse within their existing operations,” he says.

Back in Forsyth, Revival Lager sold out in April. Fox City set the price at $4 per pint, the cheapest on the menu, in part because the water was free. “Everybody seemed pretty willing to accept it and try it,” says Bump. “You can’t beat four bucks.”