Atikokan co-gen plant signs power purchase agreement
THUNDER BAY, ONTARIO - A plan to build a co-generation plant in Atikokan to feed two local forestry mills made another stride toward becoming a reality.
The plant's developer, Thunder Bay's Delta Energy Co. Ltd. signed a 20-year purchase agreement with the Ontario Power Authority recently.
The $50-million, 10-megawatt operation will be powered by wood waste to produce biogas. The gas will produce both electricity and heat. The deal almost means significant upgrades in area transmission lines.
It will be located next to local particleboard manufacturer, Fibratech and new Superior Laminated Lumber Corp.
The plant will create 60 construction jobs and 25 full-time positions when operational.
The facility will have zero sulphur dioxide emissions and reduced nitrous oxide and solid particle emissions.
Through the province's Renewable Energy Standard Offer Program, local industry will have a fixed power rate.
Provincial Energy Minister Dwight Duncan says the plant "helps make industry more competitive, prevents waste from ending up in a landfill and reduces greenhouse gas emissions."
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And this is surely a great and important thing: "Heat causes most weather-related deaths, National Weather Service says."
Generally, U.S. gas demand for power in summer is 35-40% higher than what it was five years ago, with so much more coming (see Figure).
The good news is regions across the country are expected to have plenty of reserves to keep up with power demand.
The only exception is ERCOT, covering 90%…
