Calgary: Kineticor Resource Corp. announced February 10 that they had received all major approvals from the Alberta Utilities Commission and Alberta Environment and Parks for the 900 MW Cascade Power Project.
Cascade has executed a series of long-term gas supply agreements to support the construction of the project, resulting in what the company calls a “highly contracted, construction ready project.” The gas supply agreements include Peyto Exploration and Development Corp. and Mitsubishi Corporation’s 100% subsidiary, Cutbank Dawson Gas Resources Ltd.
Once complete, the company expects Cascade to be the largest and most efficient combined cycle power plant in Alberta, producing approximately 62% less CO2equivalent per MWh than existing coal-fired generation, and at least 30% less CO2equivalent per MWh than a typical coal-to-gas conversion. Construction was anticipated to begin in Q2 2020. Once operational, power generated from Cascade will be transmitted through the Alberta power grid.
Cascade is located in the centre of a prolific gas producing area near Edson, AB and should 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.