CALGARY—Kineticor Resource Corp., in partnership with OPTrust, has acquired a partially constructed 690 megawatt cogeneration plant located near Peace River, Alta., from Shell Canada.
Kineticor, an Alberta-based gas power producer, intends to repurpose this facility, designed to work in conjunction with Shell’s large-scale bitumen extraction operation in Peace River, as a standalone power plant, called the Three Creeks Power Plant.
The acquisition also includes an agreement between Kineticor and Shell for the future development of the plant.
Cogeneration plants use natural gas and steam to generate both electricity and useful heat that can be used as a heating supply for nearby industries and residential zones.
OPTrust, manager of the OPSEU Pension Plan, has committed a $125 million investment in Kineticor, which will help support the Three Creeks Power Plant.
“The Alberta power market is going through significant changes over the next decade, and this acquisition, coupled with the OPTrust capital commitment, significantly strengthens Kineticor’s ability to capitalize on the opportunities that will be presented in this changing marketplace,” said Andrew Plaunt, Kineticor’s CEO.