Work Begins in Alberta on Gas-Fired Power Plant
Kineticor Resource Corp said August 28 it has closed financing on its C$1.5bn (US$1.15bn) Cascade Power Project near Edson, in west-central Alberta, and work on the 900-MW gas-fired combined cycle generating station will begin immediately, with commercial operations expected in 2023.
The project is being developed with joint development sponsors Macquarie Capital and Ontario-based pension fund OPTrust and project sponsors OPTrust, Axium Infrastructure and DIF Capital Partners.
“Cascade was initially conceived by a group of individuals looking to make a difference as Alberta begins to transition away from coal-fired power generation in the province,” Kineticor CEO Andrew Plaunt said. “Today represents the culmination of several years of close collaboration with our development partners at OPTrust and Macquarie, along with consultants, engineers, vendors, gas suppliers and local stakeholders.”
Strategically located close to significant natural gas production, TC Energy’s western Canadian gas transmission system and high voltage electrical transmission lines, the station will be powered by a pair of high-efficiency SCC6-8000H power trains supplied by Siemens Energy, which will also provide maintenance support under a long-term service agreement.
While many coal-fired power plants in Alberta – home to 50% of Canada’s electricity sector greenhouse gas emissions – are transitioning to coal, Cascade Power represents one of the largest investments in the province’s lower-carbon power generating future, and will supply about 8% of Alberta’s average electricity demand.
Cascade is expected to be the largest and most efficient combined cycle power plant in Alberta, producing approximately 62% less CO2equivalent/MWh than existing coal-fired generation, and at least 30% less CO2equivalent/MWh than a typical coal-to-gas conversion.
Several Canadian producers, including Peyto Exploration & Development and Mitsubishi’s Cutbank Dawson Gas Resources, have executed long-term gas supply arrangements to support Cascade Power.