As such, construction began in 1975 on the second phase of the plant which opened in 1978 when the larger Dalhousie #2 boiler went on line; at 215 MW, it was designed to burn coal mined in Minto, NB and Sydney, NS.

[7] This decision threw a wrench in plans by NB Power which was in the process of a $1 billion upgrade to the Coleson Cove Generating Station, converting that plant from heavy fuel oil to Orimulsion based on a signed MoU with PdVSA.

The sale was not completed, however, the initial memorandum of understanding would have seen NB Power transfer all of its generating assets except for the thermal stations at Dalhousie, Belledune and Coleson Cove.

After the sale of NB Power to Hydro Quebec was cancelled, the provincial government announced that it was placing the Dalhousie Generating Station under a strategic review, since the initial long-term supply contract for Orimulsion with PdVSA expired in June 2010 and was not expected to be renewed.

After a two-year review of the facility by NB Power, which included consideration of other fuel sources, the provincial government announced on 27 September 2012 that the Dalhousie Generating Station would be decommissioned and permanently closed.