Calgary, Alberta, Canada, June 28, 2010 — TransAlta Corp. said Enbridge Inc. will participate in the development of Project Pioneer, a Canadian carbon capture and storage (CCS) project involving retrofitting a coal-fired electricity plant.
When complete, Project Pioneer is expected to be one of the largest CCS facilities in the world and among the first to have an integrated underground storage system.
The project will pilot Alstom Canada’s proprietary chilled ammonia process and will be designed to capture one megaton per year of carbon dioxide from Keephills 3, a coal-fired power plant west of Edmonton that is jointly owned by Project Pioneer partners TransAlta and Capital Power Corp.
The majority of the captured CO2 will be used for enhanced oil recovery (EOR), while the remainder is expected to be injected safely in deep underground storage for permanent storage.
“CCS provides Alberta and Canada a leadership opportunity to use new technology to reduce CO2 emissions,” said Steve Snyder, president and CEO of TransAlta. “We are very pleased to include the pipeline expertise and sequestration leadership from Enbridge, a world class sustainable energy leader.”
Enbridge brings to Project Pioneer expertise in the design and construction of pipeline infrastructure, as well as extensive knowledge in carbon sequestration.
“We’re excited to have the opportunity to play a key role in Project Pioneer,” said Patrick D. Daniel, president and CEO, Enbridge Inc. “We believe CCS has potential to positively impact our industry and our ability to continue to grow sustainably and in an environmentally responsible manner. One of the most pressing environmental issues facing us today is the impact of greenhouse gas emissions on climate change. By working with the Project Pioneer partners to advance CCS technology, we’re pleased to contribute to what may be one of our most significant solutions.”
Project Pioneer is expected to account for at least 20 per cent of the Government of Alberta’s target of reducing five Mt of CO2 emissions per year by 2015. In addition, the project’s technology has wide potential applications. It could be used by other coal-fired power plants in Alberta and throughout the world, as well as by other industrial sectors.
On October 14, 2009, Project Pioneer was awarded $778 million in federal and provincial funding to advance the project. “Project Pioneer is a unique approach to solving the CO2 emissions challenge,” said Mr. Snyder. “The public-private partnership of Project Pioneer will move us a step closer toward the maturation of a CCS technology, vital to the continued development of our energy resources in an environmentally-sustainable way.”
Project Pioneer is among the world’s largest fully-integrated CCS initiatives within the power sector. It will be a near commercial-scale demonstration of all elements of the CCS chain through a unique combination of partners, technology and integration. Project Pioneer brings together public and private partners who have been leaders on environmental issues for years. Current partners include:
* TransAlta: Project leader and operational partner. TransAlta brings extensive experience in power generation, construction and innovation to Project Pioneer. As the project leader and generation operator for Keephills 3, TransAlta will provide operational, technical, commercial and project management.
* Capital Power: Generation partner. Capital Power shares a long history with TransAlta, brings best-in-class power technology and is the joint venture partner with TransAlta for the Keephills 3 coal plant — the location for Project Pioneer.
* Enbridge: Transportation and storage leader. Enbridge, a North American leader in energy delivery, brings its pipeline expertise and sequestration knowledge.
* The Government of Canada will contribute $343 million through the Clean Energy Fund and the federal ecoENERGY Technology Initiative.
* The Government of Alberta will contribute $431 million through its $2 billion CCS Fund with an additional $5 million from the Alberta EcoTrust Grant program.