Shell approved to delay 690-MW Carmon Creek project completion until 2020

The Alberta Utilities Commission on Dec. 15 agreed to give Shell Canada Ltd. a nearly four-year time extension to complete the Carmon Creek Power Plant Project, which consists of the construction of a 690-MW natural gas-fired plant and substation in Northern Sunrise County.

Said the Dec. 15 order: “After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the time extension is in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment.”

Shell has approvals to construct and operate the 690-MW plant and the Brock 232S Substation within the Shell Peace River in-situ oil sands expansion area. The project is located approximately 40 kilometers northeast of the town of Peace River.

Shell recently requested approval to extend the completion date of the project from Dec. 31, 2016, to Aug. 31, 2020. Shell stated that in October 2015, it suspended development of the Carmon Creek Peace River Oilsands Project, including the power plant and substation. Shell is currently in the process of divesting the partially constructed power plant, substation and associated infrastructure. Shell requested an extension to the construction completion date to allow for the completion of the divestment process and the construction of the project.

Shell pointed out the fact that the province of Alberta is looking to phase out coal-fired power by 2030 for greenhouse-gas-reduction purposes, which will allow the Carmon Creek power project to “play an important role in meeting the changing electricity supply of the Alberta market.”

This cogen plant would consist of three 230-MW natural gas turbine generators, each equipped with a heat-recovery steam generator, with a total generating capability of 690 MW.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.