Wednesday, February 27, 2008

NATURAL GAS PROJECT WILL HELP POWER A GROWING ECONOMY

To meet Saskatchewan's growing need for electricity, SaskPower plans to add about 100 megawatts of natural gas-fired generation to the provincial grid by 2010 at an estimated cost of $150 million.

"The Saskatchewan Party government is dedicated to turning our province's current economic boom into long-term prosperity and growth for all Saskatchewan people," Crown Corporations Minister Ken Cheveldayoff said. "This project will help us ensure a safe, reliable supply of electricity is available to meet our province's growing needs and manage greenhouse gas emissions at the same time."

Natural gas produces up to 50 per cent less carbon dioxide (CO2) per megawatt hour than conventional coal-fired generation.

GE Energy will supply the required generating units - simple cycle gas turbines. SaskPower plans to install the units at its Ermine Switching Station, which is about 8.5 km southeast of Kerrobert.

Ermine is the preferred location for these units, as this area of the province is experiencing an increasing demand for electricity - mostly due to growth in the oilfield sector - and is close to an existing switching station, which will reduce the need for new power lines and lower project costs.

"In addition to the simple cycle gas turbines, we'll need other materials and labour for this project," SaskPower president and CEO, Pat Youzwa said. "We are working with Saskatchewan contractors and vendors to find ways to maximize Saskatchewan content for the remainder of the project."

SaskPower is now seeking environmental approval for the project. If approval is obtained construction will begin in the fall of 2008 and the turbines will be supplying power to the grid by the end of 2009.

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