Alberta: The Natural Choice for ISCG

Why is Alberta a natural choice for ISCG development?

Alberta, with its deep coal resource, represents one of the best locations globally to develop commercial ISCG projects, through an ideal convergence of technical and economic factors.

Improved horizontal drilling technology and European test projects in the 1990s demonstrating the technical, economic and environmental benefits resulting from deep coal ISCG have advanced the industry.

Economic factors in recent times, including energy prices and the ability to secure value for CO₂ produced in the ISCG process, are encouraging development in this field.

Alberta offers great potential for ISCG:

• Deep, thick coal seams
• Access to the coal for ISCG development
• Support for energy innovation
• Proximity to oil development provides opportunity to sell CO₂ for EOR
• CO₂ sequestration capabilities
• Access to energy transmission infrastructure and markets
• Experienced well-drilling service providers
• Provincial and industry initiatives to produce clean energy

What will the successful implementation of the Swan Hills ISCG/Sagitawah Power Project mean to Albertans?

The base technologies used in the Swan Hills ISCG/Sagitawah Power Project are well established. This technology, together with the Province’s tremendous resources of deep unmineable ISCG-suitable coal, allows for efficient development of ISCG projects on a competitive basis for the benefit of all Albertans. Together, these various projects will benefit Albertans by providing a steady stream of clean energy, new royalties, and employment opportunities.

How is it possible that the unmineable coal resources in Alberta could potentially generate more energy than all of the Province’s oil sands and conventional oil and gas reserves combined?

Alberta has an abundance of deep coal, too deep to do much else with because it would be cost prohibitive and technically difficult to mine. The environmental attractiveness of the ISCG process could facilitate multiple ISCG projects across Alberta without significant cumulative environmental effects.

The project includes a power plant with a projected capacity of 300 MW. What does this capacity mean to Alberta’s power supply?

The 300 MW power plant will be capable of providing clean electricity for up to about 300,000 homes. This would be enough electricity to power all of Calgary’s residential properties. (Based on Calgary Real Estate Board 2009 statistics)

Alberta and the Environment

The Swan Hills ISCG/Sagitawah Power Project plans to capture and sequester 1.3 million tonnes of CO₂ each year. What does this mean to our environment?

1.3 million tonnes of CO₂ sequestered each year would be the equivalent to the volume of CO₂ that would be eliminated each year by taking off the road approximately 400,000 cars off the road.

What is the primary benefit to Albertans of capturing CO₂ and reducing air emissions?

The main benefit is cleaner air and reduced emissions of CO₂, a greenhouse gas that has been associated with climate change.

Why is a clean baseload electricity supply good for Albertans?

As the existing fleet of coal generation plants in Alberta nears retirement in the next decade, projects such as the Swan Hills ISCG/Sagitawah Power Project will offer much cleaner alternatives for the generation of the baseload electricity required to meet the needs of Albertans.

What footprint is required for the project?

One significant benefit of ISCG and its associated power generation is that no coal mine or coal handling infrastructure is required; as a result, the project will use a small fraction of the land area typically required for a coal mine and associated power generation station. The ISCG facilities will be situated on conventional-sized well pads versus a coal mine that disturbs many sections of land. The ISCG-power generation facilities will be constructed at the optimal location accounting for both environmental and market considerations.