Canadian power utility Kineticor Resource has signed long-term agreements with multiple oil and gas producers to build, own and operate the 100MW Peace River power project in Alberta, Canada.
The $100M project will use the associated gas produced as a result of heavy oil production near Peace River to create clean energy. The power generated will supply about 90,000 homes.
The development will reduce flaring emissions from oil and gas operations, contributing to Canada's commitment to reduce methane emissions from the sector by at least 40%.
Kineticor CEO Andrew Plaunt said: "The project is reducing both costs and emissions typically associated with natural gas processing and distribution to a power plant by producing power directly on-site.
"This reduces the emissions intensity and cost base required for clean, efficient and reliable power production in the province, while offering producers in the Peace River area an attractive and economic solution to conserve their associated gas."
The project will create up to 120 construction jobs and is expected to be operational by the second half of 2017, subject to regulatory and environmental approval.
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