October 15, 2007

TransCanada partnership proposes first polygeneration facility in Saskatchewan featuring CO2 recovery

CALGARY, ALTA-TransCanada Corporation has signed a project development agreement with GE Energy and Bechtel Overseas Power for Canada's first polygeneration facility. The facility, proposed for construction in Belle Plaine, Saskatchewan, would convert petroleum coke to a variety of useful products, while capturing and sequestering more than five million tonnes per year of carbon dioxide (CO2). The petroleum coke feedstock would be used to produce hydrogen, nitrogen, steam and carbon dioxide for fertilizer production and enhanced oil recovery (EOR), while generating approximately 300 megawatts (MW) of long-term electricity. The facility would use GE Energy's gasification and flexible-fuel technology to generate power and support local industrial processes. Under the agreement with TransCanada, GE and Bechtel have completed preliminary engineering work and will be advancing into the next engineering step in early 2008. If these studies indicate that the project is economically viable, detailed engineering design work will follow. If the project receives final approvals for construction, the facility is expected to be in service by 2013. John Lavelle, general manager of GE Energy's gasification business, said the project could help Saskatchewan meet its greenhouse gas emission reduction targets. "The project plans to sequester over five million metric tons of carbon dioxide annually to increase local oil production, resulting in a drastic decrease of carbon emissions. In addition, gasification allows the project owners to use a byproduct of the refining industry for fuel, instead of natural gas," he said.

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