Capital Power, Enmax to jointly develop new gas-fired plant near Edmonton

EDMONTON – Capital Power Corp. (TSX:CPX) and Enmax Corp. plan to jointly develop a two-unit gas-fired power plant west of Edmonton, near the site of the existing Genesee coal-fired operation.

Construction of the gas-fired Genesee 4 and 5 facility is expected to be completed between 2018 and 2020, to meet growing demand and to replace retired coal-fired units, Capital Power said Thursday.

The Genesee 4 and 5 facility will make use of high-efficiency gas turbine technology and will have a generation capacity of up to 1,050 megawatts.

Capital Power will lead the construction of the project and will be the operator of the facility.

It already owns the Genesee 1 and 2 coal-fired units and operates the Genesee 3 coal-fired plant, which Capital Power partly owns through in a joint venutre with TransAlta Corp. (TSX:TA).

Capital Power and Enmax have already been collaborating on a Calgary-area gas-fired power plant, which Enmax will operate when construction is completed in 2015.

“This agreement builds on a similar partnership that we have on the Shepard Energy Centre and reinforces our leadership position in the attractive Alberta market,” said Capital Power CEO Brian Vaasjo.

In Ontario, Capital Power’s Port Dover and Nanticoke wind project began commercial operations last month. It reached a 20-year power purchase agreement in April 2010 with the Ontario Power Authority.

Capital Power shares opened Thursday at $20.48 on the Toronto Stock Exchange. The stock’s 52-week range is $19.75 to $23.53.