EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power” or “the Company”) continues to advance its Genesee Carbon Capture and Storage (CCS) project with the Board of Directors approval of a limited notice to proceed (LNTP) for the project.
“Our decision to move to LNTP reflects the positive interim results from the front-end engineering design (FEED) study and continued progress on the programs the Alberta and Federal governments have taken to encourage and accelerate deployment of CCS technology,” said Brian Vaasjo, President and CEO of Capital Power. “These include the Alberta CCS Hub initiative and Emissions Reduction Alberta support for the FEED study, the Federal CCUS Investment Tax Credit, the Canadian Infrastructure Bank, the Canada Growth Fund and the Strategic Innovation Fund. We are very pleased our Genesee CCS project was selected to advance to the next stage of evaluation in the Strategic Innovation Fund Net-Zero Accelerator process.”
“CCS is an essential part of the pathway to accelerating and achieving decarbonization of Alberta’s power sector while maintaining reliability and affordability. Our Genesee CCS Project is the most advanced in the sector and would position our Genesee Generating Station to be a near-zero emitting source of reliability and other services to support increasing levels of renewable generation and an evolving Alberta power grid,” continued Mr. Vaasjo.
“Proceeding with LNTP reflects the progress we have made to date and our continued confidence in the Project. It allows us to move into the next stage of final due diligence and commercial, financing and technical assessment in advance of a final investment decision. There continues to be very significant technical assessments during the completion of the FEED study unique to our facilities such as cycling while at the same time completing negotiations with a number of Government entities” stated Mr. Vaasjo.
“As Canada transitions to the low carbon economy of the 21st century, companies like Capital Power in Alberta will play a key role in ensuring we meet our net zero goals. We look forward to continuing our discussions with Capital Power as we work together to create more jobs and more growth on the path to a cleaner, greener, and more resilient economy.” – The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.
“Alberta is a global leader in CCS thanks to the efforts of government and industry to develop innovative and practical commercial-scale projects that can help reduce industrial emissions,” stated Pete Guthrie, Minister of Energy. “Capital Power’s Genesee CCS Project is a testament to the energy sector’s expertise and innovative spirit. The implementation of clean technologies will benefit Albertans, help keep energy affordable and grow our responsible energy sector for decades to come.”
“Capital Power’s investments into CCS will help bolster electricity generation in Alberta to the benefit of consumers and the environment,” stated Matt Jones, Minister of Affordability and Utilities. “The Genesee project is a clear indication of how Alberta has become the most attractive jurisdiction in Canada for companies investing in clean energy and innovation.”
The Genesee CCS Project is positioned for a final investment decision by the third quarter of 2023 with commercial operations as early as 2027. This project is anticipated to provide around $5.4 million in local property taxes annually ($151 million over the project life), retain about 50 full-time jobs (including employment from our repowering to natural gas project) and provide roughly 580 full-time jobs on average during the 3.3 year construction period, and up to 1,000 during peak construction. Once operational, it is expected to capture up to 3 million tonnes of CO2 per year from the repowered Genesee 1 and 2 units, which would be transported and stored through Enbridge’s Open Access Wabamun Carbon Hub. This will position Genesee 1 and 2 amongst the cleanest baseload thermal generation facilities in the world.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own, and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns approximately 7,400 MW of power generation capacity at 28 facilities across North America. Projects in advanced development include approximately 385 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.