Epcor signs MOU for power, water, wastewater services at CDP coal gasification project
EDMONTON, ALTA-Epcor Utilities has signed a Memorandum of Understanding (MOU) with the Carbon Development Partnership (CDP) for the construction, ownership and operation of facilities to provide power generation, water and wastewater treatment services for the CDP's Dodds-Roundhill coal gasification project near Ryley, Alberta. Details of Epcor's involvement in the project will be determined once development work, now in progress, has been completed (in 2008). This includes consulting with stakeholders, initiating regulatory processes, defining commercial and financial details, completing preliminary engineering and design work, and establishing contractual arrangements. If approved, Epcor's components of the project would include a combined-cycle power plant, water and wastewater treatment facilities, and a water transmission main. The combined-cycle power plant would have a net generation capacity of 380 megawatts (MW) and would be Canada's first plant capable of generating power by using coal-based synthesis gases and natural gas. Most of the power produced would be used to meet the load requirements of the site, with the surplus sold to Alberta's power market by Epcor. The company is also evaluating the feasibility of delivering re-use water from Edmonton to meet the project's water needs. The combined capital cost of these components is currently estimated to be approximately $1 billion. Provided the development work proceeds according to plan and the required approvals are obtained from regulatory authorities and from the boards of directors for Epcor and the CDP, the facility would likely be in operation by 2013. The CDP is a general partnership, indirectly and equally held by Sherritt International and the Ontario Teachers' Pension Plan.