There is a staggering degree of government regulation with any projects of significance. This creates competitive barriers to entry for would-be entrants.
The most public of these projects are oil pipelines, but even operating power plants are subject to a ton of public scrutiny and the wrath of the public.
Atlantic Power operates a biomass power plant in the northwestern outskirts of Williams Lake, BC, generating up to 66 megawatts of power.
They had applied in 2016 to amend their permit to accept the chipping and burning of used railroad ties. The BC Ministry of Environment approved this, but it was appealed on behalf of certain residents of Williams Lake, BC. The BC Environmental Appeals board ruled on April 11, 2019 that Atlantic Power could burn an average of 35% rail ties as its biomass each year, up to 50% on a daily basis. The community group that effectively lost the appeal took it to City Council, but council denied their request (which, in any respect, would be non-binding).
In 2018, Williams Lake generated $8 million in EBITDA. The main power purchase agreement expired on April 1, 2018 and has been extended on less favourable terms on a short-term basis.
Finally, for those that are willing to get into the nitty-gritty of the technical assessment of Atlantic Power’s biomass power plant in Williams Lake, you can read the 2016 technical assessment concerning their request to burn rail ties.