Authorities in Canada’s Alberta province have given the go-ahead for the construction of a new 900 MW combined cycle power project.
The Cascade project is being developed by Kineticor Resource in partnership with OPTrust and Macquarie Capital, with construction due to start later this year.
The partners have also secured a series of long-term gas supply agreements to support the project, the partners announced.
Once complete, Cascade is expected to be the largest and most efficient combined cycle power plant in Alberta, producing approximately 62 per cent less CO2-equivalent per MWh than existing coal-fired generation, and at least 30 per cent less CO2-equivalent per MWh than a typical coal-to-gas conversion.
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 minimise gas transportation charges which will provide both Cascade and the gas supply counterparties a relative cost advantage.
“The Cascade Power Project shows how gas producers and power producers can work together in a mutually beneficial way,” Kineticor CEO, Andrew Plaunt said. “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.”