TransAlta begins construction on Canada's largest cogeneration plant

- "TransAlta is moving forward quickly on this project," said Steve Snyder, president and CEO of TransAlta. "It will be the largest cogeneration plant in Canada and will add 650 MW to Southern Ontario's power market. That's enough power for a city with a population of 600,000 people."

Full commercial operation of the new plant is expected by October 2002. It will supply Bayer, Dow Chemical Canada Inc. and NOVA Chemicals (Canada) Ltd. Sarnia operations with power and steam. Excess power will be sold into competitive electricity markets.

"We are pleased that TransAlta is moving ahead with this big investment in Ontario," said Minister Wilson. "This means jobs for Ontario. It shows confidence in Ontario. And it's a clear indication that our government's progress in bringing competition to Ontario's electricity market is working, and moving in the right direction."

"The TransAlta investment is a huge vote of confidence in the 'new Sarnia' economy," said Sarnia Mayor Mike Bradley. "This ground breaking endorses Sarnia's role as a key industrial location in this province."

Under the terms of the contract, TransAlta will build, own and operate a 440-MW cogeneration plant and acquire and operate existing utility plants representing 210 MW. The project demonstrates TransAlta's commitment to grow its gas-fired generation by 500 MW per year, and to own and operate 10,000 MW by 2002.

The new plant is expected to play a significant role in decreasing air emissions in the area. Through improved fuel usage and equipment upgrades, the Sarnia facility will reduce air emissions by approximately 66 per cent compared to the current joint venture facility.

"Protecting the environment is a driver in reshaping the electricity market place. Putting the shovel in the ground today is evidence of this," said Ontario Environment Minister Dan Newman.