Capital Power Corporation (TSX: CPX) ("Capital Power") and ENMAX Corporation ("ENMAX"), whose affiliates are joint venture partners on the proposed Genesee 4 & 5 facility ("the project"), today announced that the project has received all major regulatory approvals required from the Alberta Utilities Commission and Alberta Environment and Sustainable Resource Development and disclosed the turbine supplier.
The joint venture partners have executed agreements with Mitsubishi Hitachi Power Systems for the supply and maintenance of the world's most advanced J-Class natural gas turbine technology in commercial operation. The facility will have a nominal generation capacity of 1,060 megawatts consisting of two 530 megawatt units. The facility consists of two one-on-one, single shaft power islands, each incorporating a 501 J-class natural gas turbine, steam turbine, generator and heat recovery steam generator. This technology has a lower heat rate than previous technology resulting in higher efficiency and about a 4% reduction in CO2 and NOx emissions compared to the previous generation's technology. The J-Class technology also provides superior flexibility to respond to sudden fluctuations in supply and demand which makes it well suited for the Alberta power market.
"The Genesee 4 & 5 project promises to deliver superior efficiency and reliability due to its advanced J–Class turbine technology compared to other proposed projects utilizing combined cycle generation technology," said Brian Vaasjo, President and CEO of Capital Power. "With all major regulatory approvals granted, site preparation is set to begin in mid-2015."
The completion date of the first unit could be as early as late 2018 depending on market conditions. The commercial agreements include flexibility on the timing of the in-service date for the project, to coincide with the need for additional generation to meet growing demand and to replace generation from the retirement of some coal generating units in Alberta.
The capital cost for the project, excluding interest to fund construction and refundable transmission system contribution payments, is expected to be approximately $1.4 billion. ENMAX will seek required approvals to continue its 50% interest prior to full notice to proceed.
"Genesee 4 & 5 represents another step by ENMAX in continuing our strategy of investing in efficient and reliable gas-fueled generation to meet the electricity needs of Alberta," said ENMAX President and CEO, Gianna Manes.
The facility will be built at Capital Power's existing Genesee Generating Station located west of Edmonton, Alberta. Its location on a brownfield site at Genesee guarantees significant cost advantages compared to alternate sites. It is ideal for Alberta's next large scale generating facility because it will utilize the existing water intake/discharge structures and the existing transmission interconnection, which will connect to the new 500kV DC line and is within 500 metres of the project. There will also be operations savings from synergies with existing generation units at the site. Capital Power will lead the construction of the project and will be the operator of the facility.
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 2,700 megawatts of power generation capacity at 15 facilities across North America and owns 371 megawatts of capacity through a power purchase agreement. An additional 490 megawatts of owned generation capacity is under construction in Alberta and Ontario.
ENMAX Corporation, through its subsidiaries, makes, moves and sells electricity to residential, small business and large commercial customers and is headquartered in Calgary, Alberta, with offices in Edmonton. ENMAX Power Corporation owns and operates transmission and distribution infrastructure in Calgary and ENMAX Energy Corporation owns diverse electricity generation facilities throughout the province. Since 2007, ENMAX has been named one of Alberta's Top Employers. ENMAX Energy is currently the retailer of choice for both The City of Calgary and The City of Edmonton.
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