EPCOR to offer innovative power and water solutions for proposed Dodds-Roundhill coal gasification project

    EDMONTON, Nov. 29 /CNW/ - EPCOR Utilities Inc. ("EPCOR") has entered into
a Memorandum of Understanding ("MOU") with the Carbon Development Partnership
("CDP"), a general partnership, indirectly and equally held by Sherritt
International Corporation and the Ontario Teachers' Pension Plan, that could
see EPCOR construct, own and operate facilities to provide power generation,
water and wastewater treatment services to CDP's Dodds-Roundhill coal
gasification project ("the project") near Ryley, Alberta.
    EPCOR's involvement in the project will be determined following the
completion of development work being conducted in 2007 and 2008, including
stakeholder consultations, initiating regulatory processes, defining
commercial and financial details, completing preliminary engineering and
design work, and establishing contractual arrangements. Construction of the
facilities would be subject to such conditions as approval from the boards of
directors for the three companies, regulatory approvals, economic and
engineering assessments.
    "EPCOR has a track record of applying innovative technologies and
approaches in power generation and water treatment," said Jim Oosterbaan,
Senior Vice President, EPCOR. "The power and water projects we are evaluating
for the Dodds-Roundhill project further demonstrate our leadership and
commitment to innovation by incorporating clean coal technologies as well as
delivery and treatment of reuse water."
    If approved, EPCOR's components of the project would include a
combined-cycle power plant, water and wastewater treatment facilities, and a
water transmission main. The combined-cycle power plant would be Canada's
first plant capable of generating power by using coal-based synthesis gases
and natural gas. The power plant would have a net generation capacity of
380 megawatts ("MW"), the majority of which would be used to meet the load
requirements of the site, and EPCOR would sell surplus power to Alberta's
power market. EPCOR is also evaluating the feasibility of delivering reuse
water from Edmonton to meet the project's water needs. The combined capital
cost of these components is currently estimated to be approximately
$1 billion.
    If the development work proceeds according to plan, the required
regulatory approvals are obtained and final project approvals are received
from the boards of directors for the three companies, the facility would be
expected to be in operation by 2013.

    About EPCOR

    EPCOR Utilities Inc. builds, owns and operates power plants, electrical
transmission and distribution networks, water and wastewater treatment
facilities and infrastructure in Canada and the United States. EPCOR has been
named one of Canada's Top 100 employers for eight consecutive years, and is
headquartered in Edmonton, Alberta.

    About Carbon Development Partnership

    Carbon Development Partnership is a general partnership, indirectly and
equally held by Sherritt International Corporation and the Ontario Teachers'
Pension Plan. CDP controls the rights to more than 11 billion tonnes of
near-surface coal resources in western Canada and is leading the proposed
Dodds-Roundhill coal gasification project. Sherritt International provides
management, administrative and operational expertises to CDP.

    Sherritt International Corporation is a leading diversified resource
company involved in the production of thermal coal, nickel, cobalt, oil, gas
and electricity. It also licenses its proprietary technologies to other mining
companies. Sherritt's success is built on utilizing innovative technologies
and the breadth of its financial and operational expertise to increase
productivity and profitability. Sherritt continues to explore opportunities to
grow its $3.8 billion asset base through expansion of its existing businesses,
capital projects and strategic acquisitions.

    Forward-looking Information

    EPCOR: 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 and
uncertainties, which could cause EPCOR's actual results and experience to be
materially different than the anticipated results. Such risks and
uncertainties include, but are not limited to, operating performance,
commodity prices and volumes, load settlement, regulatory and government
decisions, weather and economic conditions, competitive pressures,
construction risks, obtaining financing and the performance of partners,
contractors and suppliers. 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 reason.

    Carbon Development Partnership: This news release contains
forward-looking statements. Forward-looking statements generally can be
identified by the use of statements that include words such as "believe",
"expect", "anticipate", "intend", "plan", "likely" or other similar words or
phrases. These forward-looking statements are not based on historic facts, but
rather on current expectations, assumptions and projections about future
events. These forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that are beyond Sherritt's or CDP's
ability to control or predict. Actual results and developments may differ
materially from those contemplated by this news release depending on, among
others, such key factors as business and economic conditions in Canada and the
principal market for the project's product.
    Key factors that may result in material differences between actual
results and developments and those contemplated by this news release also
include timely receipt of regulatory and corporate approvals; the entering
into of commercial agreements between CDP and EPCOR; negotiations for off-take
agreements; prices for the materials and services required for the project;
levels of coal production; energy costs; interest rates; rates of inflation;
changes in applicable laws; the timing, capital costs and financing
arrangements associated with developing the project; risks associated with
mining and processing activities; potential imprecision of reserve estimates;
market competition; developments affecting labour relations; and environmental
    Neither Sherritt nor CDP intends or assumes any obligations to update
these forward-looking statements.

For further information:

For further information: Mike Long, EPCOR, (780) 969-8246, www.epcor.ca;
Mark Sitter, Sherritt International Corporation, (416) 935-2404,

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