SaskPower International has acquired a 30-per-cent ownership interest in ATCO’s Muskeg River Mine Cogeneration Project.
The 170-megawatt (MW) plant is currently under construction at the Athabasca Oil Sands Project’s (AOSP) Muskeg River Mine, located about 75 kilometres north of Fort McMurray, Alberta.
The cogeneration project, expected to be in service by late 2002, will provide steam and power to the mine. The mine will use all the steam output and about half the power output, with the remaining power sold into the Alberta power grid.
“This project is a solid example of how SaskPower can work together with the private sector to achieve business success,” SaskPower International’s president and CEO David Hughes said. “By partnering with ATCO . . . SaskPower International is developing its business potential, both within Saskatchewan and beyond its borders, providing an opportunity to generate new revenue for SaskPower (and) diversify our revenue stream.”
ATCO Power and SaskPower International are already partners in a 228 MW cogeneration project under construction at the Cory potash mine site near Saskatoon.
“We are pleased to have a second power project with SaskPower International and look forward to further joint investments in the future,” said ATCO Power president Gary Bauer. “The combined resources of two Western Canadian energy companies provide tremendous strength in pursuing new opportunities.”
Non-recourse financing of approximately $160 million has recently closed for the $225-million project.
The balance of the project will be funded by equity. SaskPower International’s 30-per-cent equity contribution is expected to be $20 million.
Albian Sands Energy Inc., a company established by the AOSP joint venture, is building and will operate the Muskeg River Mine.
ATCO Power has built, owns and operates power plants in Canada, the United Kingdom and Australia. In addition to the Muskeg River and the Cory Mine cogeneration projects, ATCO Power currently has under construction two other power plants at Oldman River Dam and AOSP’s Scotford Upgrader.
ATCO Power also operates 12 natural gas turbine plants worldwide and three coal-fired generating stations in Alberta.
ATCO Power is a member of the ATCO Group, an Alberta-based corporation with a worldwide organization of companies and more than 6,000 employees engaged in power generation, utilities, logistics and energy services, industrials and technologies.
SaskPower International is a wholly owned subsidiary and the development arm of SaskPower. SaskPower operates three coal-fired generating stations, seven hydro stations and four natural gas stations.
