Two massive gas fired power plants planned for New Brunswick will bypass new federal greenhouse gas emission limits. As CBC News reports, the federal government passed clean electricity regulations in 2024. These rules cap annual emissions for most fossil fuel power plants starting in 2035. Two controversial projects found ways around these limits. One of these projects sits right here in your backyard in west Saint John.

The Saint John Data Centre Loophole

VoltaGrid and Beacon AI proposed a 190 megawatt gas plant for a new data centre in west Saint John. Documents submitted for a provincial environmental impact assessment show the plant will run continuously. It will meet the data centre’s baseload electricity needs and produce over 750,000 tonnes of greenhouse gases every year.

If the new federal rules applied, the plant faces a strict limit of under 110,000 tonnes per year. The plant avoids this limit entirely by operating behind the meter. This means the electricity goes directly to the data centre and never touches the New Brunswick grid. Canada’s clean electricity regulations do not cover behind the meter projects.

The Tantramar Plant Exemption

N.B. Power plans to build a 500 megawatt gas and diesel plant in rural Tantramar. This plant connects to the grid to provide energy during peak demand. It avoids the new rules through a different loophole. The federal regulations allow a planned unit exemption. If companies sign agreements by the end of 2025 and start construction before the end of 2027, the plant operates without emission limits.

N.B. Power signed an expansion agreement for this plant in January 2026 but backdated the contract to December 31, 2025. Brad Coady, the chief commercial officer for N.B. Power, told the Energy and Utilities board that the deadline was not the main motivation. He noted that qualifying as a planned unit is incredibly valuable because it removes the cost of compliance. He added that this cost is just another burden that ratepayers would have to pay for.

A Rush for Fossil Fuels

Critics argue these loopholes undermine Canada’s climate goals. Stephen Thomas of the David Suzuki Foundation calls the behind the meter exemption a large loophole and major concern for gas fired electricity build out in Canada.

Moe Qureshi, climate policy director at the Conservation Council of New Brunswick, says these weaknesses created a dash to gas across the country. Qureshi notes that people are trying to rush and build out fossil fuel infrastructure. They want it out the door as soon as possible so it is not subject to the Clean Electricity Regulations.

Frequently Asked Questions

What are the new clean electricity regulations?

The federal government introduced rules in 2024 to limit greenhouse gas emissions from fossil fuel power plants starting in 2035.

How does the Saint John plant avoid the rules?

The VoltaGrid plant operates behind the meter. It supplies power directly to a data centre instead of the public grid. The federal regulations do not cover these types of private projects.

What is a planned unit exemption?

A planned unit exemption allows a power plant to operate without emission limits if the builders sign agreements by the end of 2025 and begin construction by the end of 2027.

Why are environmental groups concerned?

Advocates worry that companies are rushing to build fossil fuel infrastructure before deadlines pass. They believe these loopholes weaken Canada’s overall emission reduction targets.