Alberta launches $30 million clean coal study project

Calgary (Platts)--13Sep2006

Alberta has launched a C$33 million ($30 million) clean coal study
project to develop ways of exploiting the province's coal reserves and to
produce environmentally friendly electricity, a provincial government release
said Tuesday.

The three-year project is the first project under Alberta's C$200
million Energy Innovation fund.

The study will be undertaken by the Alberta Energy Research Institute,
Canadian Clean Power Coalition and EPCOR Utilities Inc. The study will
research the best design for a power generation facility capable of removing
significant percentages of emissions including nitrous oxide, sulfur dioxide,
particulate matter, mercury and carbon dioxide, using Alberta coal as its
feedstock. EPCOR's coal-fired 1,270 MW Genesee site outside Edmonton will host
the study.

A demonstration plant may be built in 2015 if the outcome of the study
supports such a move.

Alberta holds about 33.6 billion mt of coal reserves and accounts for 70%
of Canada's reserves and 10% of global reserves. The province produces 25-30
million mt/year, with some exports to Japan and South Korea.

About 50% of Alberta's electricity is generated by using coal, 37%
from natural gas and the balance from hydro, wind and biomass. Fuel oil
accounts for 0.10%. Alberta generates a total of 11,557 MW of electricity.

--Esa Ramasamy, esa_ramasamy@platts.com

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