Algoma Steel subsidiary to build $135M CHP facility
SAULT STE MARIE, ONT-A proposal by Algoma Energy Limited Partnership (AELP, a wholly-owned subsidiary of Algoma Steel) for a 70-megawatt (MW) cogeneration power facility has been accepted by the Ontario Power Authority (OPA). AELP will construct and operate the new cogeneration power facility at Algoma Steel's plant site at an estimated cost of $135 million. The plant, fueled by blast furnace and coke oven gases from Algoma's steel plant operations, will generate electricity and process steam. The facility is expected to be operational by the end of 2008.
AELP's proposal was submitted in response to the OPA's request for proposals for combined heat and power (CHP) generation. The project will be supported by a 20-year power purchase agreement with the OPA. Algoma president and CEO Denis Turcotte noted that, "In addition to the direct economic benefits, the project will enhance the province's energy profile and the environment through the addition of new power capacity utilizing currently flared industrial by-product gases."