CALGARY, July 20, 2016 /CNW/ - Kineticor Resource Corp. ("Kineticor") announced today that it has entered into long term agreements with multiple oil and gas producers to construct, own and operate the 100 MW Peace River Power Project (the "Project"). The Project will utilize associated gas produced as a result of heavy oil production near Peace River, Alberta to create clean energy while significantly reducing flaring in the area.
"The Project is reducing both costs and emissions typically associated with natural gas processing and distribution to a power plant by producing power directly on-site. This reduces the emissions intensity and cost base required for clean, efficient and reliable power production in the province, while offering producers in the Peace River area an attractive and economic solution to conserve their associated gas," Kineticor CEO, Andrew Plaunt said. "We are fortunate to partner with these forward thinking oil and gas producers, who are determined to think outside the box for solutions that benefit our environment in today's economy."
The Project will significantly reduce flaring emissions from oil and gas operations, contributing to Canada's commitment to reduce methane emissions from the sector by at least 40 per cent. The clean energy generated from the Project will be able to displace grid electricity generated from coal plants, helping the Alberta Government reach their target to replace one-third of coal generating capacity with natural gas. Electricity generated from the Project will be sufficient to power nearly 90,000 homes while reducing emissions from Alberta's grid by more than 3.1 million tonnes CO2e over the life of the Project.
The Project has an expected capital cost of over $100 million and will create up to 120 construction jobs plus additional long term employment in the Peace River area for more than 20 years. Subject to regulatory and environmental approval, Kineticor anticipates bringing the Project into commercial operation in the second half of 2017.
About Kineticor Resource Corp.
Kineticor is an Alberta-based power producer providing customized and reliable on-site power generation solutions. Kineticor partners with companies throughout Canada to optimize energy resources, creating economic and environmental benefits for its partners.
SOURCE Kineticor Resource Corp
For further information: Kate Nesbitt, Business Development Manager, Carbon Markets, [email protected], (403) 703 - 8772