TransAlta partners with SemCAMS to build 40MW cogeneration plant in Canada


Canadian electricity generator and wholesale marketing company TransAlta has partnered with SemCAMS Midstream, a gathering and processing business and Canadian subsidiary of US-based SemGroup, to build a 40MW cogeneration facility in Alberta, Canada.

Estimated to cost $105m, the power plant will be built at the Kaybob South No. 3 sour gas processing plant in Western Canadian Sedimentary Basin.

All of the steam production at the power plant and about half of the electricity generated by the facility will be sold to SemCAMS under a 13-year fixed-price contract. TransAlta will sell the remainder of the electricity into Alberta power market.

SemCAMS president Dave Gosse said: “We are excited to partner with TransAlta on this highly strategic project which will enable SemCAMS to further reduce the annual carbon emissions from its facility while lowering operating expenses for the Kaybob 3 producers.

“The cogeneration facility is an important addition to SemCAMS’ growing midstream portfolio and furthers SemCAMS’ focus on providing reliable, low-cost processing solutions to our customers.”

TransAlta will be responsible for all capital costs during the construction of the plant.

Subject to the satisfaction of certain conditions, SemCAMS will acquire a 50% stake in the facility, which is scheduled to commence operations in late 2021.

TransAlta said that the development of the cogeneration facility will eliminate the use for traditional boilers and decrease annual carbon emissions by about 100,000 tonnes of CO2.

TransAlta president and CEO Dawn Farrell said: “We are very pleased to collaborate with SemCAMS on this project which will enhance their operational and energy efficiency through on-site cogeneration.

“This project represents an important addition to our on-site cogeneration business and we welcome SemCAMS as a valued new customer and partner.”

TransAlta is involved in providing clean, affordable, energy-efficient and reliable power to municipalities, medium and large industries, businesses and utility customers.

Image: The cogeneration facility has an installed capacity of 40MW. Photo: courtesy of MonikaP from Pixabay.

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