Construction of the 900MW Cascade Power Project in Alberta, Canada has begun. Kineticor Resource with joint development sponsors, Macquarie Capital and Ontario-based pension fund OPTrust and project sponsors OPTrust, Axium Infrastructure and DIF Capital Partners successfully closed financing on the US $1.2bn project. Macquarie acted as exclusive financial advisor and debt arranger to the partnership, securing non-recourse project financing.
Cascade Power Project
Cascade Power Project is a combined cycle natural gas-fired generating facility to be located near Edson, Alberta. Siemens Energy will provide two highly efficient single shaft SCC6-8000H power trains and provide maintenance support under a long-term service agreement. Cascade is strategically situated in proximity to significant gas production as well as the NGTL System and high voltage electrical transmission lines, an important competitive advantage for Cascade. Cascade is contracted and benefits from long-term gas netback agreements which provide cashflow stability and downside protection once the project is commissioned.
Cascade will lead the transition to a lower carbon intensive power grid in Alberta by supporting the province’s transition off coal-fired power, generating low emissions electricity that is expected to supply over 8% of the province’s average demand. With Alberta contributing over 50% of Canada’s greenhouse gas emissions from electricity generation, Cascade is expected to result in one of the largest emissions reduction opportunities in the country’s electricity sector. Commercial operations are expected to commence in 2023.
BPC, a joint venture between affiliates of PCL Construction and Overland Contracting Canada, Inc., a Black & Veatch Company, is constructing the facility under an Engineering, Procurement and Construction Services contract with Kineticor acting as construction and asset manager. Cascade will additionally benefit the local community with over 3 million work hours of labour required for construction, creating approximately 600 jobs during peak construction as well as 25 long-term jobs during operation.