Saskatchewan Government and TransCanada move polygeneration project forward
October 5, 2007 – The Government of Saskatchewan and TransCanada Corporation (TSX, NYSE:TRP) (TransCanada) will each provide up to $26 million for the engineering design of a proposed polygeneration plant near Belle Plaine, Saskatchewan. The plant, which would be owned and operated by TransCanada, would represent more than $4 billion in direct capital expenditure, providing long-term environmental and economic development benefits for Saskatchewan.
“Through our Sustainable Energy and Climate Change Strategy, Saskatchewan has committed to the most aggressive schedule in Canada for reducing green house gas emissions,” Environment Minister John Nilson said. “This facility has the potential to help us meet this commitment by reducing greenhouse gas emissions and pollutants, while providing an additional source of affordable, safe and reliable electricity.”
The Belle Plaine facility would use advanced, proven technology to produce valuable products with very low emissions. The polygeneration facility would use petroleum coke as feedstock to produce hydrogen, nitrogen, steam and carbon dioxide for fertilizer production and enhanced oil recovery, and to generate approximately 300 megawatts of long-term electricity.
“This would be the first plant of its kind in Canada, and as a leader in the responsible development of large scale energy infrastructure, we’re well-positioned to develop the facility,” TransCanada president and CEO Hal Kvisle said. “Our regulatory, power generation and large project experience provide us with the tools to make this project a success. Our significant financial strength, combined with our strong knowledge of energy markets and existing relationships within key markets and with stakeholders, make us the developer of choice.”
Initially, the Government of Saskatchewan will provide up to $6 million for continued engineering design, which matches the $6 million TransCanada has spent over the past two years. If this work, estimated to be completed in mid 2008, indicates that the project is economically viable, the detailed engineering design phase will follow. TransCanada will immediately begin permitting work which will include environmental impact assessments and community consultation. TransCanada and the Government of Saskatchewan will each contribute up to $20 million for this phase, with the in-service date targeted for 2013. TransCanada would repay the $26 million in funding if the project proceeds. If the project does not proceed, the loan is not repayable.
“Saskatchewan’s total contribution of up to $26 million will come from the new Green Future Fund which we announced a month ago,” Crown Investments Corporation Minister Judy Junor said. “This project is a perfect fit for the Green Future Fund, which is intended to support projects that will help reduce our greenhouse gases and achieve the ambitious climate change targets we have set for our province.”
With more than 50 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines and LNG facilities. TransCanada’s network of wholly owned pipelines extends more than 59,000 kilometres (36,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 360 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, approximately 7,700 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
For more information, contact:
Crown Investments Corporation