Market Trends of Canada Project Logistics Industry
Increasing renewable energy projects boosts opportunities for project logistics companies
- In a bid to bolster climate goals and foster economic opportunities, the Government of Canada is backing clean electricity initiatives in collaboration with Indigenous communities. These efforts aim to ensure reliable energy access and create quality jobs.
- In July 2024, the Minister of Energy and Natural Resources unveiled a substantial investment exceeding USD 192 million. This funding, channeled through Natural Resources Canada's Smart Renewables and Electrification Pathways program (SREPs) and the Electricity Predevelopment Program, targets six clean electricity initiatives in Nova Scotia. These projects are poised to reduce energy costs for residents across the province.
- Nova Scotia Power Inc. received USD 117.6 million to install three battery energy storage systems, each with 50 megawatts (MW) capacity and 200 megawatt hours (MWh). These systems are being set up in Bridgewater, Spider Lake, and White Rock, Nova Scotia. The funding also covers other grid modernization upgrades aimed at replacing coal with wind generation throughout the province.
- Invested USD 25 million in Benjamin Mill Wind Limited Partnership for a 33.6-MW wind energy project near Windsor, Nova Scotia. This project, developed in collaboration with Natural Forces Developments and the Wskijnu’k Mtmo’taqnuow Agency (WMA), is backed by the 13 Mi'kmaq bands in Nova Scotia.
- Allocated USD 25 million to Higgins Mountain Wind Farm Limited Partnership for a 100-MW wind energy project on Higgins Mountain, Nova Scotia. This initiative is a collaboration with Elemental Energy Renewables Inc., Sipekne’katik First Nation, and Stevens Wind.
- Directed USD 25 million to Wedgeport Wind Farm Limited Partnership for an 84-MW wind energy project in the District of Argyle, Nova Scotia. This project is developed in partnership with Elemental Energy Renewables Inc., Sipekne’katik First Nation, and Stevens Wind.
- Government backing for renewable energy projects is revitalizing the industry and, in turn, boosting the demand for project logistics.
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Logistics demand from Oil and Gas Industry driving the market
- Canada includes the world's third-largest crude oil reserves, after Venezuela and Saudi Arabia, more than 95% of which consist of oil sand reserves in Alberta and Saskatchewan.
- Boasting estimated reserves of approximately 164 billion barrels, the Canadian oil sands stand as one of the world's largest oil deposits. Their vastness positions Canada as the third-largest holder of oil reserves globally, trailing only Venezuela and Saudi Arabia. The oil sands play a pivotal role in Canada's oil production, accounting for roughly 58% of the total output in 2023.
- Approximately 95% of Canada's oil production, encompassing oil sands, along with the entirety of its natural gas output, is concentrated in the Western Canadian Sedimentary Basin (WCSB). This basin extends across British Columbia, Alberta, Saskatchewan, and Manitoba. Additionally, oil extraction takes place offshore in Newfoundland and Labrador.
- The oil and natural gas industry is a vital driving force in the Canadian economy, accounting for approximately 7% of Canada's GDP and employing more than 500,000 people. The nation's oil and gas and mining sectors are premier export markets for the US providers of machinery, equipment, and related supply chain goods and services.
- In 2023, the inventory lists 344 energy projects, boasting a total capital value of USD 474 billion. This marks an increase from 2022, when there were 320 projects valued at USD 427 billion. Growing energy projects are driving a surge in demand for project logistics.
