Enbridge to join TransAlta on Pioneer carbon capture project

By The Canadian Press

CALGARY - TransAlta Corporation says pipeline operator Enbridge Inc. plans to help develop Canada's first fully integrated carbon capture and storage project at the Alberta power producer's coal-fired plant near Edmonton.

TransAlta (TSX:TA) said Monday the development involves retro-fitting Keephills 3, a coal-fired plant west of Edmonton that's jointly owned by the Calgary company and its partner Capital Power Corp.

When complete, so-called Project Pioneer is expected to be one of the largest carbon capture and storage systems in the world and among the first to have an integrated underground storage system.

Most of the captured CO2 is intended to be shipped via pipeline and used to help pressurize old oil wells for added output. The rest will be permanently stored underground and prevented from entering the atmosphere.

Enbridge (TSX:ENB), Canada's largest oil pipeline operator and natural gas distributor, brings expertise in the design and construction of pipeline infrastructure, as well as extensive knowledge of CO2 sequestration.

"We believe CCS has potential to positively impact our industry and our ability to continue to grow sustainably and in an environmentally responsible manner," Enbridge president and CEO Pat Daniel said in a release.

"One of the most pressing environmental issues facing us today is the impact of greenhouse gas emissions on climate change. By working with the Project Pioneer partners to advance CCS technology, we're pleased to contribute to what may be one of our most significant solutions."

Project Pioneer is expected to account for at least 20 per cent of the Alberta government's target of reducing CO2 emissions in the province five million tonnes a year by 2015.

The project was awarded $778 million in federal and provincial funding last year. Another key partner is Alstom Canada, a global leader in energy technology and developer of a chilled ammonia carbon capture process.

TransAlta has long been a major industrial polluter from its coal-fired power plants in Western Canada.