Aiden Gonsalves – July 28, 2023
Canada’s Renewable Future: Interview with Nikos Papapetrou, Executive Director of Renewables at MYTILINEOS
MYTILINEOS is a Greece-based multinational energy and materials conglomerate. The firm’s revenue in 2021 was approximately $3.9 billion and it employs over 5000 people around the world. MYTILINEOS’ operations are focussed mainly on energy – both renewables and fossil fuels – and metallurgy.
Last month, MYTILINEOS bought a group of solar projects in southern Alberta from Westbridge Renewable Energy for $1.7 billion. The five projects – two almost complete and three on the way – will provide jobs and power to communities in southern Alberta as soon as 2024.
Together, these projects will produce approximately 2.1 terawatt-hours (TWh) of clean, renewable electricity – enough to power 200,000 homes – each year.
Aiden Gonsalves from YCR caught up with Nikos Papapetrou, the Executive Director of Renewables at MYTILINEOS and a key facilitator of what is the firm’s first massive Canadian investment, to talk about the Canadian and global renewable energy future.
Mr. Papapetrou is based in Athens, Greece.
Can you tell me about what MYTILINEOS does? What does the firm envision the global energy future to look like?
“MYTILINEOS is a very high-growth, high-potential integrated developer and energy company. Altogether, we’re active on five continents now, and 31 countries. We have experience in the energy transition over the last 17 years. Beginning in Greece, we’ve expanded gradually in Europe but have also expanded outside of Europe for the last eight years. We have significant global experience.
We’re very much into the energy transition. First of all, we believe in it. We believe it’s good for the next generations – with an “s” – not just the next generation. And it for certain makes sense from a business point of view. But we have invested a lot not only as a capital, but also as an effort to our people and to our team.
We’re really glad and really proud that we have the chance now and we have selected to enter Alberta – to enter Canada. So, for us, this is definitely a huge step in our efforts.”
Can you tell me about the recently announced $1.7 billion project in southern Alberta? Why did MYTILINEOS choose Canada to invest in? Why Alberta?
“For the countries – and specifically the areas within the countries – that we’re going to enter, be sure that we do a lot of homework and proper preparation. We’ve had Canada and the United States on our minds in the last two to three years. We’ve been looking into different scenarios and approaches. Specifically in Canada, we’ve concluded within the last year – through our US-based team – that Canada possibly makes more sense than the US for a number of reasons. To avoid any misunderstanding, this is positive for Canada but not necessarily negative for the US.
Specifically, Alberta is a province that has all the aspects that make sense for a global renewable company – with the know-how and economic scale we consider we have – to enter and be competitive. It’s attractive as a business environment and it’s attractive as part of Canada with the new investment tax credit (ITC) that’s coming up.
In fact, there are a number of reasons as to why we hope this is going to be one of the most successful solar investments for us. For all those reasons – including that it’s early days for decarbonization in the countries we follow and that we’re an early mover in Alberta’s renewable space – we took this significant decision about making such an important investment.”
The power plants to be built will be located across the southern part of Alberta, including within the counties of Vulcan, Stettler, and Wainwright. How will these projects affect the local communities (especially in terms of job creation, economic opportunity, electricity, and environmental impact)?
“What we do – and what we intend to do in an even more sensitive way in Canada – is we become quite knowledgeable, considering the special situation of Canada. First, we will do for communities in Canada what we generally do for communities globally. Then, we will adapt to the local needs.
We respect the local communities because we are there in order to live together with them for a long time. We want them to be happy, educated, and knowledgeable about what will be doing because this (MYTILINEOS’ operations) will be for good.
Of course, we will be creating jobs. We will be reducing carbon emissions in the area which means a better quality of life. We have a whole process globally that we adjust to local needs. And when I say, “local needs,” I don’t mean Canada or Alberta, necessarily, it might be an individual town, per se. We’ve done this in communities in Australia, Italy, and the UK, for example, and we’re going to do the same thing in Alberta.
Adjusting to local needs is what we intend to do. This is in our DNA. We will be successful in respecting local communities.”
From MYTILINEOS’ perspective – considering the progressive, innovative nature of Greek and European energy solutions – what does the future of Alberta’s energy look like? Does the move towards solar/renewable energy signal the conclusion of fossil fuel production, or can we have it “both ways”?
“I think sustainable energy is absolutely necessary now due to the sustainability of our world; of our kids; of how we live. What we have is a duty to protect the future of this planet.
However, of course, in Alberta, we definitely know their relationship with oil and gas and we definitely respect all that has been made around these industries, don’t get me wrong. It’s a long journey in order to reach to a fully decarbonised society and where this has happened, we always try to respect existing labor and investment.
In any case, I assume we (MYTILINEOS) are not the only ones who are trying to absorb and create more jobs. This is a dilemma that will be for the future because it’s too early days now in Alberta. Local leadership needs to be respected and will be respected, as well as the people. But it’s still such a long journey until it will be any kind of threat, so I’m not sure it’s the proper time to discuss about this.
Don’t forget that natural gas is the transition fuel of the energy transition. So this is why I say I’m not sure if the question is the correct one and definitely not for a place like Alberta that it is so early into decarbonization steps.”
What future plans, if any, does MYTILINEOS have in Canada?
“As our Chairman and CEO explained recently, there is a strong connection between MYTILINEOS and Canada. I’m not the one that can answer about the biggest picture plans. What I can tell you, though, is that there’s a huge appetite about doing (business) in Canada as much as possible, subject to our plan and attraction on the market. But the appetite is overwhelming there.”
As per your firm’s press release, the completion of this deal rests on a few conditions. One of those conditions is that the share purchase receives regulatory approval from the Alberta Utilities Commission. Could you speak to where MYTILINEOS is in that process right now? And could you also speak to the overall experience the firm has had with regulatory bodies and government in Alberta and Canada?
“So far, I don’t have much to say about this. There is nothing strange and things are going the proper way.”
A common qualm some people have about solar energy is that solar panels – like wind turbines – have a limited lifespan. Once they have reached the end of their lifespan, they must be disposed of, and the practice of disposal has been a challenge for the renewables industry. Could you speak to this challenge in the cycle of producing clean, renewable energy? And maybe share what MYTILINEOS is doing to innovate in this regard?
“Look, indeed, the recycling of the solar panels at the end of the lifetime, as well as the wind turbines as you correctly measure, is something that it is now the time to see how it applies. Because there are technologies but there are not investments because simply there were not enough solar modules or wind turbines that had to be recycled. What I can tell you is that since now there will be more and more modules and wind turbines to be recycled – and since the technology is there – the capital investment will exist. And, of course, the social responsibility is very well perceived by the industry.
I don’t find any reason why this won’t be eventually work after you know, initial start-up and set ups and all the typical things that happen with a “new need.” Of course, what we commit is that we will recycle our equipment. I hear this debate about recycling problems with renewables – not only in this case but everywhere – but there is the technology, the appetite for the investment and the capital. I cannot find the reason why eventually this won’t be successful.”
