February 19, 2013 – Genalta Power Inc. will build a 4MW power generating facility for Shell Canada that will use the gas associated with Shell’s Peace River bitumen cold production. Shell is constructing a pipeline to transport the gas from pads on the west side of its Cliffdale development (located on a portion of its Peace River oil sands leases) to the Genalta facility.
The resulting electricity will be sold on the power grid over the life of the 10-year agreement.
“Genalta is excited to be working together with Shell to create a produced-gas-to-power project,” said Graham Illingworth, Genalta Power’s CEO. “The cost of power is on the rise, and the opportunity for Genalta and Shell to create environmentally friendly power using produced gas is mutually beneficial.”
Peace River operations manager, Bob Blachford, says this project “will allow a portion of our Cliffdale gas to be used for a regional benefit, and is consistent with our goal of not flaring as part of routine operations”. Genalta will design, construct, own and operate the power generation facility. It is forecast to be operational this quarter.