SHIP CEO, Membertou defend Novaporte offshore wind energy project bid

The co-founder and chief executive of Sydney Harbour Investment Partners (SHIP) and Novaporte says he is readying the company for an opportunity for its offshore wind energy project to be part of Atlantic Canada’s potential in developing an offshore wind industry.

It’s now just a matter of convincing those who might be skeptical of the project and how it could possibly help be a boon for Cape Breton.

For years, SHIP — led by Montreal businessman Albert Barbusci — long held an exclusivity agreement with the Cape Breton Regional Municipality to develop a container terminal and logistics park on a 431-acre (174-hectare) greenfield site within Sydport Industrial Park.

But without access to the long-been dormant railway — previously under ownership by U.S. firm Genesee & Wyoming — that development never materialized.

In March 2023, Barbusci, joined by Membertou Chief Terry Paul, announced the Novaporte project was pivoting toward starting up an offshore wind marshalling hub in the Edwardsville area. That also has yet to materialize.

When SHIP’s exclusivity contract with the municipality to develop a container terminal expired in late 2024, CBRM council on a few occasions voted whether to continue further negotiations with SHIP. But this past January, council reached a 6-6 vote on the issue — which translated to a defeated motion, and meaning further talks between CBRM’s legal team and SHIP would be halted.

In the ensuing months, council voted to request the services of a port consultant to find out who else might be interested in developing the greenfield site. Then during an August meeting at city hall in Sydney, councillors and Mayor Cecil Clarke narrowly passed a motion 7-6 to allow negotiations with SHIP to be restarted, but on the provision that the firm not bring exclusivity mentions into their talks.

“If SHIP wants to negotiate, they’re welcome to reach out through the consultant,” District 2 Coun. Earlene MacMullin told council at that meeting, and who was one of six councillors against the motion.

“I have been at this table for 10 years and I have yet to see any plan, I have to yet to get any information or anything viable other than meetings that are promised but never took place.”

Added District 1’s Gordon MacDonald, who also voted against the motion, “We need an open and transparent process. We never had a chance to talk to other proponents because there was this exclusivity agreement with SHIP.”

Barbusci and Paul said they understand these councillors’ concerns.

“People naturally measure development by what they can see. They want to see construction, cranes and jobs. So do we,” Barbusci told the Post.

“Our goal has always been to work with our partners at the Cape Breton Regional Municipality to realize the opportunity that is in front of our community,” said Paul.

“I understand that when developments take time, it can create doubt. But projects of this magnitude take a lot of time. We’re starting from a greenfield site, so there’s trial and error involved.”

Over the past several months, Barbusci said discussions have been ramping up on offshore wind energy development. Novaporte Wind Canada LP, Barbusci and Paul’s offshore wind entity, already has received notice of prequalifying through the Canada-Nova Scotia Offshore Energy Regulator’s (CNSOER) bidding process.

More recently, its proposed US$1 billion-plus Phase One infrastructure program was included in the Canada Investment Summit Deal Book and presented to major Canadian and international investors during a gathering last month in Toronto, hosted by Prime Minister Mark Carney.

According to SHIP, one investment partner, Toronto-based Fengate Asset Management, has now partnered with Novaporte to provide indicative support for up to C$300 million in equity investment across the company’s infrastructure platform in Sydney.

Barbusci added that the Novaporte Wind Canada LP project will also be part of an upcoming Marine Renewables Canada conference happening Nov. 17-19 in Ottawa.

And following Thursday’s announcement in Halifax, where federal Minister of Energy and Natural Resources Tim Hodgson announced a government commitment of $100 million to advance offshore wind development in Nova Scotia, a formal call for bids from CNSOER is anticipated to take place sometime during the winter of 2027.

Skeptics within CBRM council and others within the municipality are concerned whether this will come to fruition, largely based on seeing nothing touched on the properties SHIP owns or the past exclusivity agreement.

Responding to this growing skepticism, Barbusci and Paul agreed to answer several queries from the Cape Breton Post regarding the Novaporte Wind Canada LP entry, its mention in a Canada Investment Summit Deal Book, and what’s been occurring behind the scenes. This question-and-answer session has been edited for length and clarity.

CAPE BRETON POST:  How did Novaporte become part of the Canada Investment Summit prospectus, and what was the pitch?

ALBERT BARBUSCI: We have been briefing both Invest in Canada and Invest Nova Scotia for approximately four years, dating back to our pivot toward offshore wind. Initially, we were positioning Sydney harbour as a marshalling and staging location for U.S. offshore wind projects in New England and New York. We were already working with offshore wind developers, Blue Water Shipping (in Denmark) and international industry participants, and we were attending conferences internationally to market Novaporte and Sydney harbour.

When Nova Scotia announced its five-gigawatt (GW) offshore wind ambition, the opportunity expanded significantly. We were no longer looking only at servicing projects south of the border; we began looking at how Cape Breton could participate in building an offshore wind industry and supply chain here at home.

That led to continued engagement with provincial and federal departments and agencies, and ultimately to Novaporte Wind Canada LP — our wind development vehicle with Membertou — becoming prequalified for Nova Scotia’s offshore wind process. Fengate was also participating alongside us as we advanced the broader platform.

We were subsequently advised the Novaporte platform had been selected for inclusion in the Canada Investment Summit Deal Book and invited to participate in Toronto. The proposition was broader than a port project: deep-water marine infrastructure, offshore wind, Indigenous ownership and participation, rail and marine connectivity, international operating expertise and a pathway to long-term institutional investment.

POST:  What did you discuss at the summit regarding Novaporte Wind Canada LP and the broader platform?

BARBUSCI: Novaporte Wind Canada LP was important because it connects the infrastructure we are developing with Nova Scotia’s emerging offshore wind industry. (Membertou) Chief Terry Paul, Jennifer Deleskie and Mike McIntyre participated in most of our meetings with Canadian and global investment organizations over the two days, including meetings held at Fengate’s Toronto offices.

We presented the broader seven-pillar Novaporte platform, while concentrating the Phase One discussion on three opportunities: dual-purpose marine infrastructure with potential defence applications; liquid and dry bulk infrastructure; and an offshore wind marshalling and operations-and-maintenance base serving the Sydney Bight and the broader industry. Rehabilitation of the Cape Breton rail line is an enabling piece that can support all three.

Novaporte Wind Canada LP is the wind-development vehicle jointly owned by SHIP and Membertou. Its objective is to participate in offshore wind generation while the broader Novaporte platform develops the port, manufacturing, marshalling, logistics and O&M (Operations and Maintenance) infrastructure that can serve the industry more widely.

Membertou ownership is not an add-on to that strategy. It has been embedded in the development from the beginning.

POST:  The summit prospectus referred to the Coast Guard (Academy), marine infrastructure, liquid bulk and other elements. Where would these projects be located, and how does the Point Edward Marine property fit into this?

BARBUSCI: The Summit submission described a broader, phased Novaporte infrastructure platform in and around Sydney harbour. Different components will advance on different timelines and through different approval, procurement and financing processes.

The Coast Guard homeport is a federal process. No final site within Sydney harbour has been publicly announced, and it would not be appropriate for us to speculate about that decision.

Membertou owns lands within Sydport and elsewhere around the harbour, and I would leave specific discussions concerning Membertou’s lands to Chief Terry and his team.

CHIEF TERRY PAUL: Membertou owns two major properties on Sydney harbour currently, the land adjacent to the Coast Guard Academy, and lands next to the current Atlantic Bulk Terminal. Our partners at SHIP also have lands at the former PEM (Point Edward Marine) site.

Membertou has been working with the Canadian Coast Guard in co-operation with the Polar Ice Breaker project that was announced (in January). The federal government is undertaking studies now to determine which lands will be utilized at Sydney harbour.

As for the Novaporte project, our lands near the (Coast Guard) Academy are not currently part of that plan in Phase One, but certainly we have capacity for growth if needed onto that site.

POST:  How do you intend to finance the platform? Are you seeking government financing, and what happens if one source of capital does not proceed?

BARBUSCI: Novaporte is not looking for a single investor or lender to finance the entire platform. These are distinct infrastructure verticals, and each will have its own capital structure.

Fengate’s indicative support of up to $300 million across the Novaporte platform can potentially provide catalytic equity. Around that, individual projects can include senior bank debt, subordinated or private credit, additional institutional equity, strategic partners and applicable government infrastructure programs or grants. Canadian banks are expected to participate in the debt structures as projects mature.

We see government’s role primarily around appropriate enabling infrastructure – including rail, port, energy and other strategic infrastructure programs. Our business model is not based on government financing the entire platform.

POST:  How did the relationship with Fengate come about? What does the potential $300 million mean, and have other investors expressed interest?

BARBUSCI: Our relationship with Fengate goes back to 2017, and Membertou and Chief Terry have been part of that story from the beginning.

I first made contact with two senior Fengate executives, and they subsequently came to Cape Breton to visit Sydney harbour and understand our long-term development vision. During that visit, we introduced them to Chief Terry and Membertou, and we met together to discuss what we believed could ultimately be built in Sydney harbour.

At that time, we were deeply engaged with China Communications Construction Company and other Chinese interests around development of the harbour. Fengate expressed an interest in the opportunity. Although that development strategy ultimately did not proceed, we maintained the Fengate relationship over the years.

There was a meaningful moment during the Canada Investment Summit when Chief Terry and I were together with the Fengate team in their Toronto offices and we found ourselves talking about that first visit to Sydney nearly a decade earlier. It put into perspective how long these relationships have been developing.

POST:  Premier Tim Houston was also at the summit pitching his Wind West project. Did you have a chance to speak with the premier, and what was his take on the proposed Novaporte project?

PAUL: Premier Houston has been very supportive.

His work pushing forward the offshore wind opportunities of Nova Scotia will have a big impact on the future of the industry in our province.

POST:  The Novaporte website identified Eskasoni as a partner. Is Eskasoni actually a partner or investor in Novaporte?

BARBUSCI: We should be precise about the terminology. Eskasoni is not an equity partner or investor in Novaporte, and neither Eskasoni nor Steve Parsons (chief executive of Eskasoni Corporate Services and the Eskasoni Corporate Division, as well as CBRM District 7 councillor) is involved in the day-to-day management of Novaporte.

Membertou is our Indigenous equity partner.

Our website previously grouped a number of different organizations under the general heading ‘Partners.’ That terminology was too broad because it did not distinguish between equity partners, commercial relationships and longstanding Indigenous and community relationships. We are correcting that so the nature of each relationship is clear.

That should not diminish the history of our relationship with Eskasoni and Chief Leroy Denny, which goes back more than a decade. In 2015, an Aboriginal Consultation Agreement established a framework involving the 13 Mi’kmaq communities, and we have maintained relationships with Mi’kmaq leadership throughout the development of Novaporte.

In 2017, Chief Leroy and representatives of Eskasoni were part of the Cape Breton delegation in Beijing when we were working toward the proposed Sydney harbour development with China Communications Construction Company. Chief Terry, Membertou and Eskasoni were all part of that journey.

Our relationship with Eskasoni has continued over the years, but it is best described as a longstanding community relationship built around shared interests in creating economic opportunity and prosperity in Cape Breton.

So Steve Parsons is correct when he said (in a recent CBC interview) Eskasoni is not presently an investor or equity partner in Novaporte. The additional context is that the relationship between Novaporte and Eskasoni is longstanding and very real; it simply should not have appeared under a website heading that could be interpreted as meaning equity ownership.

POST:  What are your thoughts on the CBRM pursuing a port consultant to determine the value of the greenfield site lands?

BARBUSCI: Some important history has been lost in the discussion about the greenfield site, and this is a good opportunity to clarify it.

The greenfield site is currently held by CBRM. Our 2017 agreement provided SHIP with an option that, once properly exercised and the applicable conditions were satisfied, would lead to a 99-year lease of the port site.

There was a reason that structure was negotiated. Under the agreement, SHIP and Membertou assumed the development risk.

We spent the years, money and effort required to market Sydney harbour internationally, attract developers and operators, undertake engineering and development work, pursue financing and ultimately bring a viable project to the point where the contractual conditions could be satisfied. In exchange for assuming that risk and expense, SHIP received exclusive development and option rights.

For years, CBRM did not have to finance that development effort. If we failed, that risk was ours. If we succeeded and satisfied the contractual requirements, the agreement provided the mechanism through which the project could proceed.

SHIP’s position is that the 2017 Option and Development Agreement remains in force and that SHIP validly exercised the port site option on Nov. 19, 2024. Our legal counsel has formally communicated that position to CBRM. CBRM has taken a different position, and the agreement contains a contractual process for resolving that disagreement if the parties cannot resolve it themselves.

What we would much rather do is resolve it commercially.

Since the offshore wind opportunity emerged, we have been prepared to revisit the commercial terms with CBRM. We understood that council wanted to look again at aspects of an agreement negotiated in 2017, and rather than simply standing on our contractual position, we were prepared to put forward a substantially updated proposal reflecting where the project and offshore wind industry are today.

POST:  Is the CBRM greenfield site still under consideration, or will the project be developed elsewhere within Sydport Industrial Park?

BARBUSCI: The greenfield site absolutely remains part of our longer-term vision, but our strategy has evolved considerably.

When we began this journey, the development concept was largely centred around one major greenfield site. Offshore wind is different. If we want to build a true manufacturing and supply-chain industry in Cape Breton, we are going to need multiple sites serving different functions. That is why we are now pursuing a multi-site Sydney harbour strategy.

Point Edward Marine is privately owned through a separate corporate structure under my ownership and is part of the broader Novaporte platform. Membertou also has significant landholdings within the Sydport Industrial Park and elsewhere around Sydney harbour.

Those properties provide additional opportunities around the harbour to support Novaporte Phase One while we continue to pursue a commercial resolution concerning the CBRM greenfield site.

“Major infrastructure begins years earlier with land, engineering, environmental approvals, customers, operators, Indigenous relationships, regulatory processes, financing and, ultimately, investment decisions.” — Albert Barbusci, CEO of SHIP/Novaporte

POST:  How do you assure skeptical councillors and members of the community that the project is real despite limited visible activity on the ground?

BARBUSCI: Major infrastructure begins years earlier with land, engineering, environmental approvals, customers, operators, Indigenous relationships, regulatory processes, financing and, ultimately, investment decisions.

For 13 years, SHIP and our partners have assumed that development risk and funded that work. CBRM did not have to finance our development effort. If we failed, the financial risk was ours.

What began with Chief Terry and me more than a decade ago has developed into an ownership partnership with Membertou. We have brought international port and offshore wind expertise to Cape Breton, completed years of engineering and development work, participated in the regulatory processes required to advance offshore wind, and built relationships with Canadian and international capital.

None of that guarantees success. Throughout that process, we’ve continued to put our own money and time at risk. (And) until projects reach final investment decision and construction begins, development risk remains.

But there is a very big difference between saying a project is not guaranteed and saying a project is not real. Thirteen years without a shovel in the ground does not mean 13 years of inactivity; it means 13 years of taking the risk required to get a project of this scale to the point where a shovel can go in the ground.

Council recently voted to re-engage with us, and we welcomed that decision. We have a revised commercial proposal ready to present. Staff have been mandated to return to the table. We remain prepared to sit down with them and explain exactly what we are proposing.

PAUL: Our Novaporte/Membertou team has taken a lot of time to learn and understand the industry we’re entering into. It’s important that we do for the sake of the viability and sustainability of what we’re trying to build.

We have options, but our preferred route would be to work together, fully aligned on benefits reaching everyone throughout the CBRM.