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Genalta Power Inc. recently announced an agreement with Shell Canada to build a power generating facility that will use the gas associated with Shell’s Peace River bitumen cold production. Shell is constructing a pipeline to transport the gas from pads on the west side of its Cliffdale development (located on a portion of its Peace River oil sands leases) to the Genalta facility.
The project will combust the produced gas in turbines to generate electricity and will be capable of generating up to 4 MW of power, which is enough to meet the needs of more than 4,800 residential homes in Alberta. The resulting electricity will be sold on the power grid over the life of the 10-year agreement.
Genalta Power will design, construct, own and operate this power generation facility, which is expected to be completely operational within the first quarter of 2013.