The construction works of the Cascade power plant are expected to begin in the second quarter of the year.
KinetiCor CEO Andrew Plaunt said: “The Cascade Power Project shows how gas producers and power producers can work together in a mutually beneficial way.
“The project not only provides market diversification opportunities for gas producers and cost efficiencies for Cascade but will also generate efficient baseload power while providing a meaningful reduction in the carbon intensity of the Alberta power grid.”
During the construction phase, the project is expected to create over 500 job opportunities.
Following the completion, the power generated by the plant will be supplied to the Alberta power grid.
In addition to power generation, the combined cycle power plant is expected to produce approximately 62% less carbon per MWh compared to existing coal-fired generation.
To reduce gas transportation charges, Cascade will be directly connected to area gas processing facilities.
Peyto Exploration and Development CEO Darren Gee said: “Peyto is proud to be part of the transition to clean and reliable electric power generation for Albertans now and for decades to come.
“The close proximity of our gas producing properties and resulting in short transport distance to the Cascade site will minimise overall emissions and provide optimal energy efficiency to what will already be a very efficient power project.”