Ontario Power Authority signs deals to buy 414 MW of cogen power

Ontario Power Authority signs deals to buy 414 MW of cogen power

Boston (Platts)--16Oct2006

The Ontario Power Authority Monday said it had signed long-term power
purchase agreements for the output of seven new, natural-gas fired
cogeneration projects totaling 414 MW.

The new plants, which OPA said will cost a total of C$800 million to
complete, will begin commercial operation between February 2008 and May 2010.

The projects were among the proposals OPA received in response to its
solicitation for 1,000 MW from cogeneration projects. Additional PPAs will be
signed in 2007, OPA said.

The seven projects selected include a 236-MW plant that Northland Power
will build at an Abitibi Consolidated paper mill in Thorold; an 84-MW plant
that a joint venture of Fort Chicago Energy Partners and Pristine Power will
build at a Ford Motor engine plant in Windsor; and a 63-MW plant Algoma Energy
will build at an Algoma Steel mill in Sault Ste. Marie.

Three others are district heating projects of between 2.3 and 12 MW in
London, Markham and Oshawa; the seventh project is an 11.5-MW project whose
excess heat will be used in greenhouses. Financial terms of the PPAs were not
released.

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