Clean Coal Technology Projects
Capital Power is currently developing two separate projects aimed at significantly reducing greenhouse gas (GHG) emissions from coal-fired power generation. Capital Power, on behalf of and in collaboration with the Canadian Clean Power Coalition, the Alberta Energy Research Institute and NRCan, is working towards developing a low-emission IGCC power plant located at the Genesee site, west of Edmonton, Alberta, by 2015. The proposed plant is to be in the 270 MW net output range, utilizing sub-bituminous coal from the Genesee coal mine. The proposed plant will be configured for CO2 capture and utilization for enhanced oil recovery or sequestration. Siemens Fuel Gasification Technology GmbH and Co. KG has been selected as the coal gasifier technology supplier for the project. The project is currently in the first phase of the front-end engineering design.
Capital Power is also working on the potential commercialization of amine scrubbing technology to capture post-combustion CO2 emissions from coal-fired generation plants. Capital Power is assessing the feasibility of comparing the cost for a coal plant with post-combustion CO2 capture versus pre-combustion CO2 reduction. If the opportunity for CO2 capture is found to be viable, Capital Power plans to proceed with a full-scale project. A service agreement has been executed for the feasibility study. The configuration for the study is for a 200 MW facility.
Both projects have been selected by the Government of Alberta as potential candidates for participation in its $2 billion carbon capture storage funding program under its climate change action plan. The Alberta Government’s final selection of projects is expected at the end of the second quarter of 2009. Both projects require government support to make them economically feasible and, if either project proceeds, Capital Power would intend to have one or more third-party partners participate in the ownership of the facility.
Quality Wind
Capital Power has submitted a comprehensive bid in response to BC Hydro’s 2008 Clean Power Call. The project, Quality Wind, is proposed as a 142 MW wind farm located near Tumbler Ridge, British Columbia. Favourable wind conditions, nearby road access and available transmission capacity in the area make it a good candidate for development. Capital Power has secured rights to Crown land to develop the wind farm. A complete environmental assessment is expected to be completed by the third quarter of 2009. BC Hydro is expected to announce the selection of projects under its 2008 Clean Power Call in the second quarter of 2009. Construction of Quality Wind will be subject to successful participation in BC Hydro’s bid process, regulatory approvals, final economic and engineering assessments and negotiation of an EPA with BC Hydro.
British Columbia Biomass
The Government of British Columbia, in conjunction with BC Hydro, has identified the need to develop biomass-based power in the province as a response to the mountain pine beetle kill and the provincial government’s commitment to be electricity self-sufficient by 2016. BC Hydro is planning to release Phase II of the Bioenergy Call (a competitive call for larger scale biomass projects) in the third quarter of 2009, with results expected to be announced in early 2010.
Capital Power and West Fraser Timber Co. Ltd. are working jointly to review development opportunities for a 50 MW to 70 MW biomass facility in either the Quesnel or Houston areas of British Columbia. A project predevelopment agreement has been executed between Capital Power and West Fraser Timber Co. Ltd., and initial cost estimates for a boiler and its associated emission control equipment have been received from a third-party manufacturer. The initial fuel supply studies have been prepared and are currently being reviewed by an independent consultant.
British Columbia Wind Projects
Capital Power entered into a joint development agreement with Chinook Power Corp. to develop four wind project properties in British Columbia. Capital Power is actively evaluating a site, Klo, near Houston, British Columbia, and has identified two others for possible future evaluation.
Capital Power currently holds 50% of the rights to the Klo site under its joint venture agreement with Chinook Power Corp. Capital Power expects to evaluate further and possibly develop this project in anticipation of the next BC Hydro call for power.
Cambridge Energy Centre
The Ontario Power Authority (OPA) has identified a number of locations for natural gas-fired peaking plants within its proposed Integrated Power System Plan (IPSP), including the Kitchener-Waterloo-Cambridge-Guelph area.
Capital Power anticipates that the OPA will receive a directive from the Minister of Energy and Infrastructure to conduct a Request for Proposal (RFP) process for peaking capacity in 2011 or 2012 . The timing of the RFP is likely to be affected by the impact of the economic downturn on Ontario’s manufacturing sector and the conclusion of the OPA’s filing of a revised IPSP with the Ontario Energy Board in response to a directive from the Minister of Energy and Infrastructure for the OPA to consider the number and diversity of renewable energy sources in the proposed power supply mix, and the Province of Ontario’s subsequent introduction of the Green Energy and Green Economy Act, 2009 (GEA).
In anticipation of a natural gas generation facility being needed to support the power system in the Cambridge area, Capital Power has secured a site for construction and operation of a natural gas peaking generation facility in Cambridge, Ontario. The selected site has several positive attributes including close proximity to the high-pressure natural gas pipeline of Union Gas Limited, reasonable proximity to transmission station interconnection, favourable zoning, and positive stakeholder support. Capital Power is currently evaluating technology alternatives for meeting a requirement of 450 MW to 500 MW of capacity.
On November 16, 2009, Capital Power submitted a Statement of Completion to the Ministry of the Environment for the Environmental Screening and Review conducted under Ontario Regulation 116/01 for the proposed Cambridge Energy Centre.
Development of the Cambridge Energy Centre will be subject to a number of factors, including the OPA initiating an RFP process for the Kitchener-Waterloo-Cambridge-Guelph area pursuant to a directive of the Minister of Energy and Infrastructure, the company’s satisfaction with the OPA’s final form of peaking energy supply contract, selection of the company as the successful proponent in the OPA’s competitive procurement process and receipt of regulatory approvals and final economic and engineering assessments.
Kingsbridge II Wind Power Project
In late November 2009, Capital Power submitted an application into the Ontario Power Authority’s (OPA) Feed-In Tariff (FIT) program for the Kingsbridge II Wind Power Project. Kingsbridge II is proposed for the Township of Ashfield-Colborne-Wawanosh (ACW) would have the potential to generate up to 270 megawatts (MW) of renewable energy for the province of Ontario.
The countryside of ACW represents one of Ontario’s best areas for wind power generation. Capital Power plans to build upon the success of its existing 40 MW Kingsbridge I Wind Power Project which is also located in ACW.
Capital Power has continued to develop and maintain strong relationships with our neighbours throughout the Project area. We will be undertaking extensive discussions with these and other stakeholders beginning with the detailed design work for the Project. Our goal is to develop a Project that is both environmentally sound and respects the values and interests of the local community.
In 2009 the Province of Ontario introduced the Green Energy Act (GEA) is expected to facilitate the construction of renewable energy projects, such as Kingsbridge II. As part of the GEA, the Government of Ontario introduced the Renewable Energy Approval (REA) process. Capital Power will undertake an environmental assessment and public consultation process for Kingsbridge II within the REA process. For more information on the Ontario REA please visit http://www.ene.gov.on.ca/en/business/green-energy/.
Port Dover and Nanticoke Wind Project
In late November 2009, Capital Power acquired the Port Dover and Nanticoke (PDN) Wind Project from Tribute Resources Inc. The Project, proposed for Haldimand County and Norfolk County, would have the potential to generate between 100 to 110 megawatts (MW) of renewable energy and would be developed through the Ontario Power Authority’s (OPA) recently launched Feed-in-Tariff (FIT) program.
Capital Power is looking forward to building upon existing stakeholder and community relations for the Project. Our goal is to develop a project that is both environmentally sound and respects the values and interests of the local community.
In September 2009, the Government of Ontario introduced the Renewable Energy Approval (REA) process. Capital Power will undertake an environmental assessment and public consultation process within the REA process.