Kineticor Resource Corp. announced July 20 hat it has entered into long-term agreements with multiple oil and gas producers to construct, own and operate the 100-MW Peace River Power Project.
The project will utilize associated natural gas produced as a result of heavy oil production near Peace River, Alberta, to create clean energy while significantly reducing flaring in the area.
“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,” said Kineticor CEO Andrew Plaunt.
The project will significantly reduce flaring emissions from oil and gas operations, contributing to Canada’s commitment to reduce methane emissions from the sector by at least 40%. The clean energy generated from the project will be able to displace grid electricity generated from coal plants, helping the Alberta provincial government to reach its target to replace one-third of coal generating capacity with natural gas.
The project has an expected capital cost of over C$100 million and will create up to 120 construction jobs plus additional long term employment in the Peace River area for more than 20 years. Subject to regulatory and environmental approval, Kineticor anticipates bringing the project into commercial operation in the second half of 2017.
Kineticor is an Alberta-based power producer providing customized and reliable on-site power generation solutions.
Peace River Power Project LP, a wholly-owned subsidiary of Kineticor, on July 7 applied at the Alberta Utilities Commission for approval of a 98-MW, gas-fired plant known as the Peace River Power Project. It will consist of two simple-cycle General Electric LM6000 gas turbine generators and associated equipment (i.e. air compressors and fuel gas compressor). The project site is located approximately 40 kilometers northeast of the town of Peace River. The project will utilize both conventional sales gas and associated gas from an existing Baytex Energy Corp. production well, which is adjacent to the project site.