Calgary, AB /PRNewswire/ - Kineticor Resource Corp. ("Kineticor") is pleased to announce that they have received all major approvals from the Alberta Utilities Commission and Alberta Environment and Parks for the 900 MW Cascade Power Project ("Cascade"). 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% subsidiary, Cutbank Dawson Gas Resources Ltd.
Once complete, Cascade is expected 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 is anticipated to begin in Q2 2020, creating over 3 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 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.
Darren Gee, CEO of Peyto Exploration and Development Corp, noted, "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."
"The Cascade Power Project shows how gas producers and power producers can work together in a mutually beneficial way" Kineticor CEO, Andrew Plaunt explains. "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."
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.
Kineticor is a developer of efficient power projects across Canada with a focus on projects that have an environmental and economic advantage vs the current marketplace. Headquartered in Calgary, AB, Kineticor has numerous projects in various stages of development and operations.
With net assets of almost $20 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with almost 95,000 members and retirees. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.
About Macquarie Capital
Macquarie Capital's capabilities encompass corporate advisory and a full spectrum of capital solutions, including capital raising services from equity, debt and private capital markets and principal investments from Macquarie Capital's balance sheet. Macquarie Capital has invested in and delivered over 22GW of power generation globally and continues to be the number one global infrastructure advisor1.
1: Inframation by volume and value