NDP defends involvement of U.S. company in Hydro project

WINNIPEG — A U.S. company that donated to Donald Trump’s 2025 presidential inauguration could build Manitoba Hydro’s proposed $3-billion natural gas turbines in Brandon, which has drawn criticism from an environmental group amid the NDP government’s pushback to tariffs.

James Wilt, policy development manager with Climate Action Team Manitoba, said the Kinew government should apply its approach to U.S. alcohol, which was pulled off Liquor Mart shelves, to the turbine proposal.

“What we’re expecting is consistency between that position and the upcoming decision around what could ultimately be a $3-billion investment in U.S. technology manufactured deep in Trump country, and from a company that has donated to Trump’s inauguration itself,” Wilt said of Massachusetts-based GE (General Electric) Vernova.

GE Vernova donated US$500,000 to the Trump-Vance inaugural committee, according to U.S. Federal Election Commission records. The company has a gas turbine manufacturing plant in Greenville, S.C.

Hydro has said combustion turbines are necessary to help offset a projected energy shortfall by 2030. It said three turbines would produce 750 megawatts of power.

Manitoba’s independent energy regulator, the Public Utilities Board, is scheduled to conclude six weeks of hearings into Hydro’s 10-year integrated resource plan and proposed turbines on Friday. The board is expected to provide recommendations to the government later this year.

Climate Action Team Manitoba, which opposes Hydro’s turbine proposal, wants the province to find a different manufacturer.

Finance Minister Adrian Sala, who is responsible for Hydro, said only two vendors met the Crown corporation’s requirements — GE Vernova and Germany-based Siemens — and only GE Vernova submitted a final bid.

“Hydro has been clear that further delays in selecting a vendor here will prevent us from being able to ensure we have the reliability energy we need in those low 2030s, and ultimately we’re going to make sure we’re providing the energy that’s needed for Manitobans and our businesses,” he said.

Hydro and GE Vernova had signed a reservation agreement.

“Because of pressures around the world for these types of dispatchable sources or energy, there is a significant amount of pressure around procurements,” Sala said. “In order to make sure Manitoba could get access to these resources to meet our reliability needs in the low 2030s, we had to effectively put deposits in.

“Moving away from this proposed supplier, which again was the only final bidder in that procurement process, would also see some financial impacts to Manitoba Hydro.”

GE Vernova deferred comment to Hydro, which yielded to Sala.

Some estimates put gas turbine manufacturing and delivery wait times at up to seven years owing to a surge in global demand. Gas turbines are used to feed power-hungry AI data centres.

In addition to pulling U.S. liquor from shelves, the government changed the language of tenders to give preference to Canadian or non-U.S. firms in response to tariffs imposed by Trump.

Premier Wab Kinew, who has encouraged Manitobans to “buy Canadian,” commented on a possible turbine deal with General Electric on Aug. 25.

“I wouldn’t say it’s a done deal. We have a good relationship with GE Canada to be clear, and it’s a relationship with GE Canada, located in Mississauga (Ont.) interestingly enough of all places,” he said. “That is the reason why we’re able to procure these combustion turbines relatively quickly.”

The AI data centre boom means turbine supplies are “pretty much sewn up globally,” Kinew said.

“GE Canada is giving us some consideration, so it’s a bit of a balancing act,” he said.

Kinew described the turbine proposal as a major procurement opportunity.

“I wonder, if not just that decision, but the next $30 billion of Manitoba Hydro construction that’s on the books for the next 20 years, if all of a sudden firms in Trump’s America were not eligible for that,” he said. “I wonder how much attention that would get.”

Board chair Jamie Wilson wouldn’t get into specifics about potential turbine providers last week when he discussed Allan Danroth’s departure as Hydro CEO.

“I would say those are negotiations that we definitely can’t comment on because we’re in active negotiations with different providers,” he said.

MLA Lauren Stone, the Tory critic for Hydro, accused the NDP of threatening the stability of Hydro.

“Manitoba Hydro is critical infrastructure and the backbone of our energy sovereignty,” she said in a statement. “It’s time to stop playing politics with it and let Manitoba Hydro fulfil its mandate to deliver affordable, reliable energy to Manitobans.”

Hydro has done business with GE Vernova in the past. The firm was selected in 2023 for upgrades to the Grand Rapids hydroelectric generating station, a GE Vernova news release said at the time.

» Winnipeg Free Press