TransAlta has broken ground on the site of its $400-million, 650-megawatt (MW) power project in Sarnia, Ontario, which will make it the largest cogeneration plant in Canada and will add 650MW of electricity to the southern Ontario electricity market.
Full commercial operation of the new plant is expected by October 2002. It will supply Bayer, Dow Chemical Canada Inc. and NOVA Chemicals (Canada) Ltd. Sarnia operations with power and steam. Excess power will be sold into competitive electricity markets.
Ontario Minister of Energy, Science and Technology, Jim Wilson; Ontario Minister of the Environment, Dan Newman; and Sarnia Mayor, Mike Bradley joined Steve Snyder, President of TransAlta at the plant site where they dug the first spade into the ground for the Sarnia Regional Cogeneration Project (SRCP).
"We are pleased that TransAlta is moving ahead with this big investment in Ontario. This means jobs for Ontario. It shows confidence in Ontario. And it's a clear indication that our government's progress in bringing competition to Ontario's electricity market is working, and moving in the right direction," said Wilson.
Under the terms of the contract, TransAlta will build, own and operate a 440-MW cogeneration plant and acquire and operate existing utility plants representing 210 MW. The project demonstrates TransAlta's commitment to grow its gas-fired generation by 500 MW per year, and to own and operate 10,000 MW by 2002.
The new plant is expected to play a significant role in decreasing air emissions in the area. Through improved fuel usage and equipment upgrades, the Sarnia facility will reduce air emissions by approximately 66 per cent compared to the current joint venture facility.
"Protecting the environment is a driver in reshaping the electricity market place. Putting the shovel in the ground today is evidence of this," said Newman
Having three customers at one site means TransAlta can design the project specifically to meet their needs, which allows for outstanding economics and synergies.
Sarnia is widely considered one of the premier locations in Canada for an efficient cogeneration project. It has the two key elements required for cogeneration: large demands for both electricity and steam.
The Sarnia Regional Cogeneration Project will supply steam and power to the joint venture made up of Bayer Inc, Dow Chemical Company and NOVA Chemicals.
Bayer Inc., the Canadian subsidiary of the international group Bayer AG (Germany), is research-based with major businesses in life sciences, polymers and specialty chemicals. Headquartered in Toronto, Ontario, with a major manufacturing site in Sarnia, Ontario, Bayer Inc. employs more than 2,200 people. Sales in 1999 exceeded Cdn. $1.2 billion.
The Dow Chemical Company is a leading global science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $19 billion, Dow serves customers in 162 companies and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others.
Dow Canada is a wholly owned subsidiary of The Dow Chemical Company employing about 2,000 people. Headquartered in Calgary, Alberta, Dow Canada has manufacturing locations in Sarnia, Ontario; Fort Saskatchewan, Alberta; Varennes, Quebec; and Weston, Ontario.
NOVA Chemicals is a focused commodity chemical company, producing olefins/ polyolefins and styrenics at 18 locations in Canada, the United States, France, the Netherlands and the United Kingdom.
TransAlta will lead the design, engineering and construction of the new facilities. TransAlta will also acquire and upgrade existing utility plants at Bayer and Dow. TransAlta will operate both the new and existing plants as an integrated facility.
TransAtla already operates a number of cogeneration plants throughout Ontario.
Ottawa Health Science Cogeneration Plant
In 1992, TransAlta's Ottawa Health Sciences Centre Cogeneration Plant became the first cogeneration plant in the world to use the high-efficiency LM6000 gas turbine. The LM6000 is derived from a General Electric jet engine, modified to burn natural gas instead of liquid fuel.
The 70-megawatt plant is configured around one LM6000 gas generator. Electricity is sold to the provincial grid under a long-term contract with Ontario Electricity Financial Corporation. Thermal energy -- in the form of steam, hot water and chilled water -- is supplied to the member institutions of the Ottawa Health Sciences Centre and the National Defence Medical Centre. In total, this project has allowed six hospitals to reduce their energy costs by over 20 per cent.
With a plant located near a residential area, TransAlta has made a commitment to address community issues related to the plant's operations. A Community Advisory Panel was formed to represent a broad cross-section of local residents.
Mississauga Cogeneration Plant
TransAlta's Mississauga Cogeneration Plant has close ties to the aviation industry. The 110-megawatt facility is located adjacent to Pearson International Airport in Toronto, Ontario, on the site of a Boeing Canada plant that manufactures wings for jetliners. The Mississauga facility was one of the first cogeneration plants in the world to use the high-efficiency LM6000 gas turbine. The plant is configured around two LM6000 gas turbine generators.
The plant supplies electricity to the provincial grid under a long-term contract with Ontario Electricity Financial Corporation and thermal energy, in the form of steam, to the Boeing plant. The combined cycle cogeneration plant, which began commercial operation in 1992, uses waste water from the manufacturing plant in its cooling towers, significantly reducing the waste water discharge from the complex.
Windsor-Essex Cogeneration Plant
The Windsor-Essex Cogeneration Plant was completed in December 1996 and is supplying thermal energy - in the form of steam -- to Chrysler Canada's minivan assembly plant in Windsor, Ontario. Electricity generated by the plant is sold to the provincial grid under a long-term contract with Ontario Electricity Financial Corporation.
The steam supplied to Chrysler provides space and process heating and reduces heating expenses at the minivan plant by 35 per cent.The Windsor plant uses the same technology as TransAlta's cogeneration plants in Mississauga and Ottawa, and has been built to accommodate expansion. The 70-megawatt facility is configured around one LM6000 gas turbine.
The plant was built in 18 months, on budget and on schedule, creating 175,000 man-hours of employment during construction and providing 19 long-term jobs. ET