A proposal for an industrial plant on Nova Scotia’s Eastern Shore that would produce a low-carbon alternative to traditional jet fuel has passed its first regulatory hurdle, acquiring environmental approval from the province.

In a news release, Nova Sustainable Fuels — a company backed by European energy giant Octopus Energy Generation — called it “one of Eastern Canada’s most ambitious energy projects,” and said the approval is an important step forward.

The plan is to use solar and wind farms as well as biomass to produce sustainable aviation fuel and renewable methanol. The company describes the products as “two critical low-carbon fuels for decarbonizing the transportation sector.”

Nova Scotia Environment Minister Tim Halman signed off on the project Thursday, with some conditions.

Halman’s conditions include that the project has to get underway within two years (although it can apply for extensions), the company has to submit additional information to support conservation and it has to develop a plan for engaging with the Mi’kmaq.

The approval deals with the first phase of Nova Sustainable Fuels’ plans: a production facility near the mouth of Isaacs Harbour, N.S.

The second phase of Nova Sustainable Fuels’ plan is to build wind and solar farms that would connect to the plant. That will require another environmental assessment, which the company said it plans to submit in 2027.

The facility would require 60 truckloads of biomass — that is, woody byproducts from the forestry industry — per day and 586 cubic metres of fresh water per hour. The plan is to pull the water from two nearby lakes, Meadow Lake and Ocean Lake, through pipelines.

The project will require industrial approval and water withdrawal approval before it can proceed.

The company has estimated the project will cost $4 billion to $6 billion to launch. It’s expected to take about three years to construct and have a 50-year lifespan.

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