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SaskPower has signed a deal for a flare gas-to-power facility near Coleville that is expected to be the largest operation of its kind in Saskatchewan when it opens in 2023.
SaskPower, the Flying Dust First Nation and Genalta Power announced the signing of the 20-year Power Purchase Agreement (PPA) for the 15-megawatt (MW) facility on Tuesday.
The Kopahawakenum Flare to Power Facility will require an anticipated capital investment of $30 million.
“This new project, which will create some 50 jobs during construction and 20 into operation, will be the largest flare gas-to-power operation in the province, generate power for around 9,000 Saskatchewan homes, and reduce emissions,” Energy and Resources Minister Bronwyn Eyre said in a media release.
“As a methane capture and commercialization project, it is another example of Saskatchewan’s world-class innovation and another step to achieving our goals under the provincial Methane Action Plan.”
The goal of Saskatchewan’s Methane Action Plan, which was released in January of 2019, is to reduce methane-based gas emissions in the province by 40 to 45 per cent — a reduction of between 4 million and 4.5 million tonnes of carbon dioxide equivalent annually by 2025.
The new facility is to require about four million cubic feet of gas per day, resulting in the reduction of approximately 100,000 tonnes of carbon dioxide equivalent every year.
“This project will use flare gas that would otherwise have been emitted into the atmosphere to create low-carbon baseload electricity,” said Don Morgan, the provincial minister responsible for SaskPower.
“This is a win-win, as the oil and gas operation can generate revenue and reduce its exposure to the carbon tax, while contributing to the Province of Saskatchewan and SaskPower’s efforts to reduce greenhouse gas emissions.”
The PPA was developed through a partnership between SaskPower and the First Nations Power Authority, a not-for-profit organization that works to include Indigenous people in Saskatchewan’s power sector.
Coleville is about 30 kilometres north of Kindersley.