Alter NRG power plant east of Bruderheim put on ice

Alter NRG Project Development
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As a means to reduce Alter NRG’s capital requirements the Company has adopted a more stepwise approach for internally-led projects in development.

Based on a slowing economy that may affect the outlook for power development in Alberta, Alter NRG will be delaying the decision to proceed on phase one of the Bruderheim power facility until the spring of 2009. Development of the first phase of the project had already commenced with the intention of having the 120 MW natural gas combined cycle (”NGCC”) facility operational by early 2010.

In the spring of 2009, the Company will assess combining the two phases to complete the Bruderheim integrated gasification combined cycle (”IGCC”) project that will convert petroleum coke and oilfield waste into 120 MW of power - including design for carbon capture and storage (”CCS”). Delaying the development of phase one of the Bruderheim project is expected to reduce the near-term capital requirements for 2008 and 2009 to under $2 million. Using this reduced budget, the Company will continue to advance project engineering, government grant applications and a strategic partner selection process to advance the Bruderheim IGCC project with an expected completion date of the IGCC facility in late 2011.

Alter NRG is also reducing project development expenditures on the Fox Creek coal-to-liquids project which is expected to produce up to 40,000 barrels per day of diesel fuel and naphtha from Alter NRG’s existing coal reserves. The Company expects to spend less than $3 million in 2008 and 2009. The Company will continue to advance engineering work to further define the project scope, advance government grant applications and continue to seek strategic partners. The delayed timeline will impact the final completion of the development until late 2015, subject to successful partner selection by the end of 2009….(Full Story)

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Previous comment (Sept. 17, 2008) on the Alter NRG proposal that would put a power-generating plant into operation just half a mile east from the eastern boundary of Bruderheim.

This entry was posted on October 22, 2008 at 7:55 am and is filed under Town of Bruderheim, Community & Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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