CORP / TransAlta Wins $400 Million Sarnia Electric Project
Opportunity
TSE, ME, ASE SYMBOL: TA
JUNE 5, 1998
SARNIA, ONTARIO--The major power consuming industries in the
Sarnia area, working with the Sarnia-Lambton Office of Economic
Development, selected TransAlta Energy Corporation to pursue
developing a $400 million cogeneration opportunity. If the project
proceeds, it would be the largest cogeneration project in Canada.
TransAlta was selected by a committee of representatives from
Bayer, Dow Chemical, Imperial Oil, Montell, NOVA, Shell and
Sunoco. The Sarnia regional cogeneration project was proposed by
TransAlta as a way to provide economical power to the Sarnia area.
If the project goes ahead, it would fit with the move towards
restructuring of the Ontario electricity industry.
"TransAlta is pleased to have been selected to work with this
forward-thinking group from Sarnia," said Dawn Farrell, executive
vice president of Independent Power Projects with TransAlta. "In
order for this project to proceed, it must be a win-win for all
involved. It will provide low-cost thermal and electrical power to
the region, fit within the government's plans to restructure the
electricity industry and give TransAlta the opportunity to expand
our presence in Ontario."
Since early February, Sarnia Hydro and large industrial operators
in the area have been working with the Office of Economic
Development to further the idea of a regional cogeneration
project. The start-up date for the proposed project would be early
2001, the year after the government plans for full competition in
the province's electricity system.
"TransAlta was able to come up with the best proposal to help
Sarnia take advantage of competition coming to Ontario's electric
industry," said Mike Ireland, senior business development officer
with the Office of Economic Development. "We believe the area
provides great potential for cogeneration, which would result in
low-cost power and make the region a better place to do business
by creating a unique competitive advantage for energy-intensive
industry."
Sarnia industries are looking for reasonable power rates to
compete with their U.S. counterparts on the U.S. Gulf Coast and in
Alberta. This competitiveness will ensure greater job security for
the people working in Sarnia, and may attract new industries or
expansions. The Ontario government has indicated it wants to
restructure the electricity industry to ensure the province's
economy continues to grow.
Cogeneration is the process where both power and useful steam are
produced from a single fuel source, natural gas, which results in
efficient and environmentally-sound energy generation. Power is
generated locally, which means high-voltage transmission lines are
not required to bring power from other generating sources in the
province.
TransAlta is an energy company with $5 billion in assets and is
the leading producer of independent power in Canada. The company
operates three cogeneration facilities in Ontario; in Ottawa,
Mississauga and Windsor. TransAlta is the major supplier of
electricity within Alberta and operates in New Zealand, Australia,
Argentina and the United States. The company has interests in
electricity generation, gas and electricity distribution, energy
services and energy marketing. TransAlta is focused on providing
its customers with innovative energy solutions in an increasingly
deregulated market.
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