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Released March 20, 2014 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--A high level of industrial project activity in Alberta has driven up electric demand in the Canadian province. Because demand is projected to continue rising, a power-plant development partnership wants to build an 834-megawatt (MW), natural gas combined-cycle (NGCC) generator to meet future electric demand.
The Sundance 7 project will serve as a merchant plant, selling power into the market at market-based prices. The project's developers recently began a public outreach campaign to provide information about the project to communities and stakeholders. Sundance 7 is being developed by a partnership called TAMA Power, which comprises TransAlta Corporation (NYSE:TAC) (Calgary, Alberta) and MidAmerican Energy Holdings Company (Des Moines, Iowa), a unit of Berkshire Hathaway Incorporated (NYSE:BRKA) (Omaha, Nebraska).
Next quarter, TAMA Power plans to begin applying for environmental permits. The partnership also expects to issue a request for proposal (RFP) for an engineering, procurement and construction (EPC) firm during the second quarter. If the permits are granted, construction could kick off by the end of this year, and the plant could begin operating in late 2017. Sundance 7 is scheduled to be built in Parkland County, near Lake Wabamun, on the site of an existing coal-fired plant. The NGCC has a total investment value (TIV) of about $960 million.
The Sundance 7 project will consist of two gas turbine generators and two heat recovery steam generators. The gas turbines will be equipped with dry-low emissions technology to minimize emissions of carbon monoxide (CO) and oxides of nitrogen (NOx). The heat recovery steam generators will have a selective catalytic reduction (SCR) system designed to control NOx emissions.
About 417 industrial projects valued at approximately $106 billion are scheduled to kick off in Alberta between January 2014 and December 2015, according to Industrial Info's North American Project Database. While that sum reflects project activity across all 12 industries tracked by Industrial Info, the majority of project value is concentrated in Oil & Gas Production, Metals & Minerals, Power and Oil & Gas Transmission industries. There are 30 industrial projects valued at $1 billion or more scheduled to kick off in Alberta before the end of 2015, most of them tied to oil-sands development.
Click the image at right to see a chart showing the value of industrial projects kicking off in Alberta by the end of 2015.
Industrial Info doesn't expect all of those projects to begin according to schedule. How many projects move forward depends on various factors, including crude-oil prices; a projects' ability to secure financing; sufficient processing; and outbound transportation capacity and continued strong demand for crude oil.
Recent industrial activity has contributed to a 10% increase in peak electric demand in Alberta since 2008, TransAlta said. The increase works out to about 1,000 MW. Looking forward, peak electric demand is forecast to continue rising sharply. TransAlta said that electric grid operator projects in Alberta have average electric demand increases of 4.2% per year until 2017, and average increases of 3.6% per year from 2018-2022. These projected growth rates are three to four times the growth rates of most U.S. electric utilities. By 2032, Alberta's population is expected to rise to 5.1 million, an increase of about 25% from current population levels of 4 million.
As Alberta's electric demand is forecast to continue growing, some coal-fired generators in the province face closure by the end of 2019 due to stricter Canadian national environmental rules. Those plant retirements are expected to tighten the supply-demand balance for power in Alberta and Western Canada.
"It should be no secret to anybody that Alberta is really a growth engine of the economy for Canada," Dean Luciuk, TransAlta's vice-president for Business Development, told the Spruce Grove Examiner newspaper. "The province is growing, energy demand is growing, and we're growing along with that."
Alberta's electric grid operator "sees about 300 new MW of demand showing up every year," he continued. "But when you get to 2019, that's the first year when some of the (coal-fired) power plants start to retire. So in 2019, you have about 300 MW of normal growth ... but you also have about 850 MW retiring. We've designed Sundance 7 to meet that need."
TAMA Power is not the only power-plant developer that wants to help meet burgeoning electric demand in Alberta. By 2020, the company said, electric generation in that province is projected to rise by about 36%, to 19,000 MW from the current level of about 14,000 MW. Industrial Info's project activity database shows about $10.8 billion in power projects are scheduled to kick off between January 2014 and December 2015.
"We're building for the future with the Sundance 7 project, as this power plant will be an essential addition to the Alberta electricity market to meet the province's long-term supply needs," said Brett Gellner, TransAlta Chief Financial and Investment Officer, in a statement. He pledged Sundance would continue TransAlta's commitment to providing reputation for responsible, efficient and reliable power generation.
TransAlta said the plant's design, controls and procedures will be implemented to mitigate, reduce or eliminate the plant's unwanted environmental impacts. Sundance 7 will use about half the water that a comparably sized coal-fired generator would use, the company estimated.
On February 4, TransAlta held its first open house meeting where stakeholders, including individuals, local communities and First Nation groups, could learn about the project. About 100 people attended, according to TransAlta spokesperson Stacey Hatcher. She told Industrial Info the tone of the meeting was "very good. We have a great reputation in Alberta, and people are familiar with us."
"It's pretty significant when you can draw 100 people to an open house in a rural setting. The numbers tell the story," she said, adding that the attendees were "engaged." At least one more open house will be held for the Sundance 7 project, but the details are not yet known.
View Plant Profile - 2001398 1055530 1056997 1050564 1063938 1059422 1071769 3066221
View Project Report - 300023103 56000727 56001265 56001267 56000415 56000852 56001264 56001268 56000753 56001158 56001259 300105450
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The Sundance 7 project will serve as a merchant plant, selling power into the market at market-based prices. The project's developers recently began a public outreach campaign to provide information about the project to communities and stakeholders. Sundance 7 is being developed by a partnership called TAMA Power, which comprises TransAlta Corporation (NYSE:TAC) (Calgary, Alberta) and MidAmerican Energy Holdings Company (Des Moines, Iowa), a unit of Berkshire Hathaway Incorporated (NYSE:BRKA) (Omaha, Nebraska).
Next quarter, TAMA Power plans to begin applying for environmental permits. The partnership also expects to issue a request for proposal (RFP) for an engineering, procurement and construction (EPC) firm during the second quarter. If the permits are granted, construction could kick off by the end of this year, and the plant could begin operating in late 2017. Sundance 7 is scheduled to be built in Parkland County, near Lake Wabamun, on the site of an existing coal-fired plant. The NGCC has a total investment value (TIV) of about $960 million.
The Sundance 7 project will consist of two gas turbine generators and two heat recovery steam generators. The gas turbines will be equipped with dry-low emissions technology to minimize emissions of carbon monoxide (CO) and oxides of nitrogen (NOx). The heat recovery steam generators will have a selective catalytic reduction (SCR) system designed to control NOx emissions.
About 417 industrial projects valued at approximately $106 billion are scheduled to kick off in Alberta between January 2014 and December 2015, according to Industrial Info's North American Project Database. While that sum reflects project activity across all 12 industries tracked by Industrial Info, the majority of project value is concentrated in Oil & Gas Production, Metals & Minerals, Power and Oil & Gas Transmission industries. There are 30 industrial projects valued at $1 billion or more scheduled to kick off in Alberta before the end of 2015, most of them tied to oil-sands development.
Click the image at right to see a chart showing the value of industrial projects kicking off in Alberta by the end of 2015.Industrial Info doesn't expect all of those projects to begin according to schedule. How many projects move forward depends on various factors, including crude-oil prices; a projects' ability to secure financing; sufficient processing; and outbound transportation capacity and continued strong demand for crude oil.
Recent industrial activity has contributed to a 10% increase in peak electric demand in Alberta since 2008, TransAlta said. The increase works out to about 1,000 MW. Looking forward, peak electric demand is forecast to continue rising sharply. TransAlta said that electric grid operator projects in Alberta have average electric demand increases of 4.2% per year until 2017, and average increases of 3.6% per year from 2018-2022. These projected growth rates are three to four times the growth rates of most U.S. electric utilities. By 2032, Alberta's population is expected to rise to 5.1 million, an increase of about 25% from current population levels of 4 million.
As Alberta's electric demand is forecast to continue growing, some coal-fired generators in the province face closure by the end of 2019 due to stricter Canadian national environmental rules. Those plant retirements are expected to tighten the supply-demand balance for power in Alberta and Western Canada.
"It should be no secret to anybody that Alberta is really a growth engine of the economy for Canada," Dean Luciuk, TransAlta's vice-president for Business Development, told the Spruce Grove Examiner newspaper. "The province is growing, energy demand is growing, and we're growing along with that."
Alberta's electric grid operator "sees about 300 new MW of demand showing up every year," he continued. "But when you get to 2019, that's the first year when some of the (coal-fired) power plants start to retire. So in 2019, you have about 300 MW of normal growth ... but you also have about 850 MW retiring. We've designed Sundance 7 to meet that need."
TAMA Power is not the only power-plant developer that wants to help meet burgeoning electric demand in Alberta. By 2020, the company said, electric generation in that province is projected to rise by about 36%, to 19,000 MW from the current level of about 14,000 MW. Industrial Info's project activity database shows about $10.8 billion in power projects are scheduled to kick off between January 2014 and December 2015.
"We're building for the future with the Sundance 7 project, as this power plant will be an essential addition to the Alberta electricity market to meet the province's long-term supply needs," said Brett Gellner, TransAlta Chief Financial and Investment Officer, in a statement. He pledged Sundance would continue TransAlta's commitment to providing reputation for responsible, efficient and reliable power generation.
TransAlta said the plant's design, controls and procedures will be implemented to mitigate, reduce or eliminate the plant's unwanted environmental impacts. Sundance 7 will use about half the water that a comparably sized coal-fired generator would use, the company estimated.
On February 4, TransAlta held its first open house meeting where stakeholders, including individuals, local communities and First Nation groups, could learn about the project. About 100 people attended, according to TransAlta spokesperson Stacey Hatcher. She told Industrial Info the tone of the meeting was "very good. We have a great reputation in Alberta, and people are familiar with us."
"It's pretty significant when you can draw 100 people to an open house in a rural setting. The numbers tell the story," she said, adding that the attendees were "engaged." At least one more open house will be held for the Sundance 7 project, but the details are not yet known.
View Plant Profile - 2001398 1055530 1056997 1050564 1063938 1059422 1071769 3066221
View Project Report - 300023103 56000727 56001265 56001267 56000415 56000852 56001264 56001268 56000753 56001158 56001259 300105450
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
