Maxim Power Corp. (TSX: MXG) announced Feb. 12 that the Alberta Utilities Commission has approved its application to construct and operate the Milner Expansion Project (M3), an 86-MW natural gas-fired cogeneration plant to be located adjacent to the existing HR Milner Generating Station (called M1).
This 150-MW, coal-fired plant is located about 20 kilometers north of the town of Grande Cache, Alberta. The M3 expansion will increase generating capacity at the Milner site while reducing total greenhouse gases and air emissions. Exhaust from M3’s gas turbines will be converted to steam and utilized to generate electricity in the existing M1 steam turbine, displacing coal-sourced steam in an effort to reduce CO2 emissions under Canadian greenhouse gas limits. The generating capacity at the site will increase by 86 MW to 236 MW. Total emissions of CO2, NOx, SOx and particulates at the Milner site will decrease compared to running M1 alone.
Maxim said it is proceeding with more detailed engineering design and construction timelines for M3. It anticipates that the construction of M3 would be initiated prior to the construction of its proposed M2 project, a 520-MW combined cycle gas-fired station also to be located on the Milner site.
Also, Maxim offered an update on the the ISO New England Forward Capacity Auction results as they relate to the company. Forward Capacity Auction No. 9 (FCA 9) occurred on Feb. 2, for the delivery period June 2018 -May 2019. Results for the auction were subsequently announced on Feb. 4. Auction clearing prices for the Rest-of-Pool (ROP) and Connecticut (CT) Capacity Zones, which encompass Maxim’s Pittsfield and CDECCA facilities, respectively, cleared at a price of $9.550/kW-month. Existing units in the Southeastern Massachusetts and Rhode Island (SEMA-RI) Capacity Zone, which encompasses Maxim’s Pawtucket facility, cleared at a premium administered price of $11.080/kW-month due to “Inadequate Supply.”
“Higher capacity rates will have a positive impact on MAXIM’s facilities in the ISO-NE region,” the company noted. “The FCA 9 clearing prices of $9.550/kW-month and $11.080/kW-month represent an increase of 198% and 245%, respectively, from the current price of $3.209/kW-month, and represent an increase over the FCA 8 administered price of $7.025/kW-month for existing units in the same Capacity Zones. Based on MAXIM’s forecasted claimed capability volumes, the Corporation anticipates that locked-in capacity revenue earned in the ISO-NE market, denominated in US dollars, will increase from $9.6 million for the twelve months ending May 31, 2015 to $29.6 million for the twelve months ending May 31, 2019.”
Based in Calgary, Alberta, Maxim is an independent power producer which acquires or develops, owns and operates innovative and environmentally responsible power and power related projects. It currently owns and operates 39 power plants in Alberta, the United States and France, having 775 MW of electric generating capacity.