Agreement advances development of cleaner power technology

    EDMONTON, May 12 /CNW/ - The design of Canada's first fully integrated
gasification power facility is advancing with EPCOR Utilities Inc. (EPCOR)
reaching an agreement with Siemens Energy Inc. (Siemens) to provide power
generation technology for EPCOR's Genesee Integrated Gasification Combined
Cycle (IGCC) power facility.
    This agreement is part of the continuing work being done in the EPCOR-led
Front End Engineering and Design (FEED) project into the feasibility of an
IGCC power plant that is designed to deliver improved air quality and capture
carbon emissions for permanent storage.
    "This selection marks our continued progress in finding technology
solutions that can lead to low-emission power from coal," said EPCOR Senior
Vice President, Dr. David Lewin. "By selecting Siemens we will be able to have
a seamless integration of the gasification and power plant technologies which
will be invaluable in helping to determine the viability of the project."
    In August 2008 Siemens was selected to license its SFG-500 coal gasifier
technology to the FEED project. If subsequent investment and construction
decisions go as planned, a 270-megawatt (net) generating station using the new
technology would be targeted to commence operations in 2015.
    "As the key technology provider for this project, Siemens is looking
forward to continuing to strengthen its collaboration with EPCOR on the
Genesee IGCC Facility. IGCC power plants with carbon capture and storage make
a significant contribution toward a more reliable and environmentally friendly
coal-based energy supply, and Genesee will demonstrate that," stated Randy
Zwirn, president and CEO of Siemens Energy, Inc.
    The Alberta Energy Research Institute, Natural Resources Canada and EPCOR
have each contributed $11 million to the $33 million FEED project, which is
located at EPCOR's Genesee Generating Station, 70 kilometres southwest of
Edmonton, Alberta. The FEED project is being conducted in conjunction with the
Canadian Clean Power Coalition, which is chaired by Dr. David Lewin.
    The FEED project is currently in its final phase, which is scheduled for
completion later this year. Following completion of the technology design work
and financing decisions, EPCOR will enter into an agreement with Siemens to
supply the components for the gasification and power facilities.
    EPCOR's Genesee CCS IGCC project is also being evaluated to qualify for
funding under the Province of Alberta's $2 billion program for large-scale
carbon capture and storage projects.

    About EPCOR Utilities; EPCOR's wholly-owned subsidiaries build, own and
operate power plants, electrical transmission and distribution networks, water
and wastewater treatment facilities and infrastructure in Canada and the
United States. EPCOR, headquartered in Edmonton, Alberta, has been named one
of Canada's Top 100 employers for nine consecutive years, and was selected one
of Canada's 10 Most Earth-Friendly Employers in 2008. EPCOR's website is

    The Siemens Energy Sector is the world's leading supplier of a complete
spectrum of products, services and solutions for the generation, transmission
and distribution of power and for the extraction, conversion and transport of
oil and gas. In fiscal 2008 (ended September 30), the Energy Sector had
revenues of approximately EUR22.6 billion and received new orders totaling
approximately EUR33.4 billion and posted a profit of EUR1.4 billion. On
September 30, 2008, the Energy Sector had a work force of approximately
83,500. Further information is available at:

    Forward-looking statements

    Certain information in this News Release is forward-looking and related
to anticipated financial performance, events and strategies. When used in this
context, words such as "will", "anticipate", "believe", "plan", "intend",
"target", and "expect" or similar words suggest future outcomes. By their
nature, such statements are subject to significant risks, assumptions and
uncertainties, which could cause EPCOR's actual results and experience to be
materially different than the anticipated results. Such risks, assumptions and
uncertainties include, but are not limited to, operating performance,
commodity prices and volumes, load settlement, regulatory and government
decisions including changes to environmental and tax legislation, weather and
economic conditions, competitive pressures, construction risks, availability
and cost of financing, foreign exchange risks, availability of labour and
management resources and the performance of partners, contractors and
    Readers are cautioned not to place undue reliance on forward-looking
statements as actual results could differ materially from the plans,
expectations, estimates or intentions expressed in the forward-looking
statements. Except as required by law, EPCOR disclaims any intention and
assumes no obligation to update any forward-looking statement even if new
information becomes available, as a result of future events or for any other

For further information:

For further information: Media Contacts: EPCOR, Mike Long, Corporate
Relations, (780) 969-8246,; Siemens Energy, Monika Wood, Press
Relations, (407) 736-4197,

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