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FREDERICTON — The New Brunswick government on Friday granted conditional approval for a 500-megawatt natural gas plant that officials say is crucial to avoid rolling electricity blackouts within the next two years.
The green light comes after the province completed an environmental impact assessment on the project. The government said U.S.-based ProEnergy would need to meet a series of 45 conditions before building and while running the facility.
The province’s public utility, NB Power, has a 25-year contract with ProEnergy to set up 10 refurbished jet turbines in a rural area of Tantramar, N.B. It would burn natural gas primarily shipped in from the U.S. via the Maritimes and Northeast pipeline.
The proposed plant, known as the Renewables Integration Grid Security project, would have the ability to switch to diesel when gas isn’t available, according to NB Power.
The government has limited the plant to burning gas only 17 per cent of the time.
When not using gas, the turbines will operate in a so-called condensing mode that officials say will help stabilize the grid without generating additional power.
Environment Minister Gilles LePage said the conditions ProEnergy must meet in building and running the plant addresses all the concerns his department heard from residents and environmental groups.
“It is now the responsibility of ProEnergy to determine how they will proceed and to ensure it is carried out in accordance with the approved requirements,” LePage told reporters in Fredericton.
The company will be required to regularly monitor nearby air and water quality, prepare an emergency management plan and track the impact on plants and animals, among other requirements.
In the case ProEnergy doesn’t meet the various conditions, LePage said his department could impose timelines for fixes or even shut the project down entirely.
NB Power has previously said the proposed plant would help serve as a backstop when weather-dependent renewable power sources are not available.
And Nova Scotia’s energy operator has signed a 10-year agreement to purchase 100 megawatts of power from the future plant.
Premier Susan Holt has said that a secure, reliable energy supply is crucial for New Brunswick’s autonomy amid Canada’s ongoing trade war with the United States.
Green Party legislator Megan Mitton, who represents the area where ProEnergy plans to build the gas plant, said she was concerned the province would approve a project by a U.S. company.
“This does the opposite of ensuring energy security, this is very risky,” Mitton said by phone on Friday.
“It’s shameful to be partnering with this American company … it flies in the face of elbows up and of protecting our energy security and protecting New Brunswickers.”
Mitton was also concerned the plant — which will ship in natural gas from the U.S. — could be used as an excuse for Holt to lift New Brunswick’s long-standing ban on hydraulic fracturing.
During a news conference, LePage said the project approval wasn’t related to an announcement earlier in the week that the province would review its fracking moratorium.
In May, the province’s energy regulator, known as the Energy and Utilities Board, granted NB Power’s application for the project.
The Conservation Council of New Brunswick said at the time the gas and diesel plant was “not the future New Brunswickers need or deserve.”
“This decision will expose residents to higher power bills, more pollution and decades of dependence on fossil fuels,” the organization’s climate researcher Moe Qureshi said in a statement.
The government approval and conditions announced Friday was the final major box on the checklist before ProEnergy could start getting the plant built.
The facility is scheduled to be in operation by 2028. Provincial officials were unable to say when construction could begin.
ProEnergy declined a request for an interview on Friday.
In response to questions sent by The Canadian Press, the company said in a statement that “another important regulatory decision has been received,” but it did not confirm any dates for the start of construction.
Nova Scotia’s Department of Energy said it was pleased to see the project receive approval.
“As our system shifts away from coal and expands renewable sources like wind and solar, our grid will need more firm energy capacity to provide reliable, affordable power to Nova Scotians,” the department said in a statement.
“This new fast-acting gas generation facility will supply 100 MW, and there is additional work to secure even more, which is aligned with our Clean Power Plan.”
This report by The Canadian Press was first published Aug. 28. 2026.
Eli Ridder, The Canadian Press
