Offshore Energy Development in Atlantic Canada

The New Era of Atlantic Canada's Offshore Energy Sector

Atlantic Canada stands at a pivotal moment in its energy history. With decades of established offshore oil and gas expertise and emerging opportunities in offshore wind, tidal energy, and hydrogen production, the region is positioning itself as a global leader in diversified marine energy development. For engineering professionals and technical managers across Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island, understanding these developments is essential for navigating the opportunities ahead.

The offshore energy landscape in 2025 represents a convergence of traditional hydrocarbon extraction knowledge with cutting-edge renewable technologies. This transformation demands sophisticated engineering solutions that address unique maritime conditions, environmental considerations, and regulatory frameworks specific to Canadian waters. From the Scotian Shelf to the Bay of Fundy, Atlantic Canada's offshore resources require technical expertise that balances operational efficiency with environmental stewardship.

Current State of Offshore Oil and Gas Development

Atlantic Canada's offshore petroleum industry continues to evolve, with significant developments occurring across multiple basins. The Scotian Basin, located approximately 200 kilometres off Nova Scotia's coast, remains a focal point for exploration activities. Recent geological surveys have identified prospective resources exceeding 8 billion barrels of oil equivalent, attracting renewed interest from international energy companies.

The technical challenges associated with deepwater extraction in Atlantic Canadian waters are substantial. Water depths in active exploration areas range from 500 metres to over 2,500 metres, requiring specialized drilling equipment, dynamic positioning systems, and subsea infrastructure capable of withstanding extreme pressure differentials. Engineering considerations include:

• Subsea production systems rated for depths exceeding 2,000 metres with operating pressures up to 15,000 psi

• Flowline and riser systems designed for temperatures ranging from -2°C at the seabed to 150°C at the wellhead

• Mooring systems capable of maintaining station in significant wave heights exceeding 15 metres

• Ice management protocols for operations in areas affected by seasonal pack ice and icebergs

• Corrosion protection systems accounting for the unique chemistry of Atlantic Canadian reservoirs

Newfoundland and Labrador's offshore operations, including the Hibernia, Terra Nova, and White Rose fields, have produced over 2 billion barrels of oil since production began. These mature assets require ongoing engineering support for enhanced oil recovery techniques, facility life extensions, and eventual decommissioning planning. The West White Rose project, despite facing delays, represents continued investment in the region's hydrocarbon resources with an estimated capital expenditure exceeding $3.5 billion.

Regulatory Framework and Environmental Considerations

The Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board jointly administer offshore activities with the federal government. Recent regulatory updates have introduced more stringent environmental assessment requirements, including mandatory strategic environmental assessments for new exploration licences and enhanced monitoring protocols for marine mammal interactions.

Engineering firms supporting offshore operations must demonstrate compliance with updated emissions reduction targets, which mandate a 40% reduction in offshore facility greenhouse gas emissions by 2030 compared to 2019 levels. This requirement drives demand for electrification studies, flare gas recovery systems, and energy efficiency optimisation across existing and planned facilities.

Offshore Wind Energy: A Transformative Opportunity

Nova Scotia's offshore wind potential represents one of the most significant renewable energy opportunities in North America. The provincial government's commitment to developing up to 5 gigawatts of offshore wind capacity by 2035 has catalysed substantial industry interest and planning activity. Wind resource assessments indicate average wind speeds of 9 to 11 metres per second at hub height across prospective development zones, translating to capacity factors potentially exceeding 50%.

The technical requirements for offshore wind development in Atlantic Canadian waters present unique engineering challenges. Unlike the relatively calm conditions found in European developments such as the North Sea, Nova Scotia's offshore environment combines strong winds with significant wave action, requiring robust foundation and turbine designs. Key engineering considerations include:

• Foundation systems capable of installation in water depths ranging from 30 to 60 metres, with jacket and monopile designs predominating

• Turbine specifications accommodating Class IB wind conditions with extreme gusts exceeding 70 metres per second

• Marine cable systems rated for burial depths of 1 to 2 metres in varied seabed conditions including bedrock, sand, and clay

• Offshore substation platforms designed for unmanned operation with helicopter and vessel access capabilities

• Scour protection systems accounting for strong tidal currents and storm surge events

Grid Integration and Transmission Infrastructure

Connecting offshore wind resources to Nova Scotia's electrical grid requires substantial transmission infrastructure investment. Nova Scotia Power's integrated resource plan identifies the need for new high-voltage direct current transmission systems to efficiently transport power from offshore generation sites to onshore substations. Engineering studies indicate that optimal connection points include locations near existing 345 kV transmission corridors in the Halifax Regional Municipality and along the South Shore.

The technical specifications for offshore-to-onshore transmission typically involve 320 kV or 525 kV HVDC submarine cables with transmission capacities ranging from 800 MW to 1,200 MW per circuit. Cable landing site selection requires detailed geotechnical assessment, environmental impact evaluation, and coordination with existing marine infrastructure including fibre optic cables and pipelines.

Tidal Energy Development in the Bay of Fundy

The Bay of Fundy's extraordinary tidal range, reaching 16 metres at the head of the bay, creates one of the world's most concentrated marine energy resources. The Fundy Ocean Research Centre for Energy (FORCE) test site near Parrsboro, Nova Scotia, continues to serve as a proving ground for tidal turbine technologies, with berth permits allowing deployment of devices up to 22 MW capacity.

Engineering challenges in tidal energy development stem from the extreme flow velocities and sediment loads characteristic of the Bay of Fundy environment. Current speeds at prospective development sites reach 5 metres per second during peak flow, subjecting turbine components to dynamic loading conditions that exceed those encountered in most other marine energy applications. Critical engineering parameters include:

• Turbine rotor designs optimised for bidirectional flow with blade pitch control systems responding to flow reversals every 6.2 hours

• Structural designs accounting for fatigue loading from approximately 705 tidal cycles annually

• Biofouling management systems addressing the nutrient-rich waters that support rapid marine growth

• Gravity-based foundations weighing 400 to 1,000 tonnes to resist overturning moments from current drag

• Electrical connection systems with wet-mate connectors rated for multiple deployment and retrieval cycles

Recent advances in turbine reliability have demonstrated capacity factors approaching 35% with availability exceeding 90%, marking significant progress toward commercial viability. The predictable nature of tidal flows offers valuable grid integration benefits, enabling accurate generation forecasting days in advance.

Green Hydrogen Production and Export

Atlantic Canada's abundant renewable energy resources position the region as a potential major producer and exporter of green hydrogen. Several projects currently in development phases aim to leverage offshore wind electricity to produce hydrogen through electrolysis for export to European markets, where demand projections indicate requirements exceeding 20 million tonnes annually by 2030.

The engineering requirements for hydrogen production facilities integrated with offshore energy sources encompass multiple disciplines. Electrolyser systems at commercial scale utilise either proton exchange membrane or alkaline technologies, with current projects specifying capacities ranging from 200 MW to over 1 GW. Water treatment systems must produce ultrapure water meeting conductivity specifications below 0.1 microsiemens per centimetre to protect electrolyser membranes.

Export Infrastructure and Ammonia Conversion

Transporting hydrogen to overseas markets requires conversion to carrier molecules that enable efficient shipping. Ammonia synthesis, combining hydrogen with nitrogen from air separation units, produces a liquid product at -33°C that can be transported in conventional liquefied gas carriers. Engineering specifications for ammonia synthesis plants include:

• Haber-Bosch process reactors operating at pressures between 150 and 300 bar and temperatures of 400°C to 500°C

• Air separation units producing nitrogen at purities exceeding 99.99%

• Refrigeration systems for ammonia liquefaction with duties of 50 to 100 MW for large-scale facilities

• Storage tank systems with capacities of 50,000 to 100,000 cubic metres providing buffer capacity for shipping schedules

• Marine terminal infrastructure capable of loading carriers at rates exceeding 5,000 cubic metres per hour

Port facilities in Nova Scotia, including the Strait of Canso and Halifax Harbour, offer deepwater access and existing industrial infrastructure that could support ammonia export operations. Engineering assessments must address integration with existing port activities, environmental permitting requirements, and safety zones for ammonia handling operations.

Engineering Services Supporting Offshore Development

The complexity of offshore energy projects demands comprehensive engineering support spanning feasibility studies through construction, commissioning, and operations. Professional engineering services critical to project success include structural analysis of offshore foundations, electrical system design for marine environments, and process engineering for production facilities.

Geotechnical engineering plays a particularly important role in Atlantic Canadian offshore developments. Seabed conditions vary significantly across prospective development areas, from the glacial till deposits common on the Scotian Shelf to the bedrock formations encountered in the Bay of Fundy. Cone penetration testing, vibrocoring, and geophysical surveys provide essential data for foundation design, while specialised analyses address issues including:

• Cyclic loading response of marine soils under wave and current action

• Scour potential assessment and protection system design

• Slope stability analysis for subsea pipelines and cables

• Settlement predictions for gravity-based structures

• Pile driveability studies accounting for soil resistance and hammer specifications

Project Management and Regulatory Compliance

Successful offshore energy projects require rigorous project management disciplines integrated with technical engineering activities. Schedule and cost control systems must account for the weather-sensitive nature of marine operations, where installation windows may be limited to specific seasonal periods. Risk management frameworks address both technical uncertainties and external factors including supply chain disruptions, regulatory changes, and stakeholder engagement requirements.

Environmental assessment and regulatory compliance services represent essential engineering support functions. Impact assessments must evaluate effects on marine mammals, fish species, seabirds, and benthic communities, with particular attention to species at risk including the North Atlantic right whale. Mitigation measures, monitoring programmes, and adaptive management frameworks require ongoing engineering input throughout project lifecycles.

Workforce Development and Regional Economic Impact

The offshore energy sector offers substantial economic development opportunities for Atlantic Canada, with job creation potential spanning construction, operations, and supply chain activities. Industry estimates suggest that achieving provincial offshore wind targets could generate over 30,000 direct and indirect jobs during peak construction periods, with several thousand permanent positions for ongoing operations and maintenance.

Engineering workforce requirements span multiple disciplines including civil, structural, mechanical, electrical, and ocean engineering specialisations. Regional educational institutions including Dalhousie University, Memorial University, and the Nova Scotia Community College system are expanding programmes to address anticipated skills demands. Professional development opportunities for practicing engineers include specialised training in offshore regulations, marine operations, and renewable energy technologies.

Supply chain development represents a significant opportunity for regional businesses. Fabrication facilities, vessel operators, and professional services firms can capture substantial portions of project expenditures through strategic positioning and capability development. Engineering firms with established regional presence and understanding of local conditions are well positioned to support both project developers and supply chain participants.

Partner with Atlantic Canada's Engineering Experts

The transformation of Atlantic Canada's energy sector creates unprecedented demand for engineering expertise that combines technical excellence with regional knowledge. From preliminary feasibility assessments through detailed design, construction support, and operational optimisation, professional engineering services are essential to project success.

Sangster Engineering Ltd. brings decades of professional engineering experience to projects across Nova Scotia and Atlantic Canada. Our team understands the unique challenges of working in maritime environments and the regulatory frameworks governing development in Canadian waters. Whether your project involves traditional hydrocarbon extraction, offshore renewable energy, or emerging hydrogen opportunities, we offer the technical capabilities and local expertise your project requires.

Contact Sangster Engineering Ltd. in Amherst, Nova Scotia, to discuss how our professional engineering services can support your offshore energy development objectives. Our commitment to technical excellence and client service makes us an ideal partner for navigating the opportunities presented by Atlantic Canada's evolving energy landscape.

Partner with Sangster Engineering

At Sangster Engineering Ltd. in Amherst, Nova Scotia, we bring decades of engineering experience to every project. Serving clients across Atlantic Canada and beyond.

Contact us today to discuss your engineering needs.