All major approvals are now in place for the 900 MW Cascade Power Project near Edson, Alberta, it was announced on Monday by Kineticor Resource Corp.
Approvals have come from the Alberta Utilities Commission and Alberta Environment and Parks.
“In addition to this significant milestone, Cascade has executed a series of long-term gas supply agreements to support the construction of Cascade, resulting in a highly contracted, construction ready project. The gas supply agreements represent long-term partnerships with high-credit quality, best-in-class gas producers including, but not limited to, Peyto Exploration and Development Corp. and Mitsubishi Corporation’s 100 per cent subsidiary, Cutbank Dawson Gas Resources Ltd,” said the company.
“Once complete, Cascade is expected to be the largest and most efficient combined cycle power plant in Alberta, producing approximately 62 per cent less CO2equivalent per MWh than existing coal-fired generation, and at least 30 per cent less CO2equivalent per MWh than a typical coal-to-gas conversion. Construction is anticipated to begin in Q2 2020, creating over three million man-hours of work, with peak onsite employment of over 500 personnel. Once operational, power generated from Cascade will be transmitted through the Alberta power grid creating efficient, reliable and economical electricity for the benefit of present and future generations of Albertans.”
Cascade is being developed by Kineticor Resource Corp. in partnership with OPTrust and Macquarie Capital, which is also acting as debt arranger and sole financial advisor.
“The Cascade Power Project shows how gas producers and power producers can work together in a mutually beneficial way,” said Kineticor CEO Andrew Plaunt in a news release. “The project not only provides market diversification opportunities for gas producers and cost efficiencies for Cascade, but will also generate efficient baseload power while providing a meaningful reduction in the carbon intensity of the Alberta power grid.”
Darren Gee, CEO of Peyto Exploration and Development Corp, said: “Peyto is proud to be part of the transition to clean and reliable electric power generation for Albertans now and for decades to come. The close proximity of our gas producing properties and resulting short transport distance to the Cascade site will minimize overall emissions and provide optimal energy efficiency to what will already be a very efficient power project. We are excited and pleased to work with Kineticor to bring this project forward.”
Kineticor said Cascade is strategically located in the centre of a prolific gas producing area near Edson, AB and will provide a long-term diversification opportunity for gas producers via a direct end market for their gas. Cascade will connect directly to area gas processing facilities, allowing the facility to minimize gas transportation charges which will provide both Cascade and the gas supply counterparties a relative cost advantage, it added.
Mario Toneguzzi is a business reporter in Calgary.
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