The Mosaic Co. and Saskferco Products Inc. could benefit from a proposed $4 billion polygeneration plant in Saskatchewan proposed by TransCanada Corp., one of North America’s largest energy companies. The plant would use petroleum coke as feedstock and produce 300 megawatts of electricity, as well as chemicals or other products that could be used in fertilizer production. Downstream specifics have not been released. TransCanada said it would be one of the largest ?Çô if not the largest ?Çô gasification undertakings in North America.
TransCanada has GE Energy and Bechtel Overseas Power Corp. under a project development agreement to initiate the engineering design phase after already completing the first preliminary engineering step. If this work indicates the project is economically viable, the detailed engineering design phase will follow. If the project receives final approvals for construction, the facility would have an in-service date targeted for 2013. TransCanada has been working with both companies since early this year and will be using GE Energy’s gasification and flexible-fuel technology to generate power and support local industrial processes. Last summer, GE Energy signed its 30th gasification technology licensing agreement with Eastman Chemical Co. for a new facility in Texas.
John Jenkins, commercial manager for the project in Belle Plaine, Sask., told Green Markets that plans are to provide hydrogen and nitrogen to the adjacent potash solution mine operated by The Mosaic Co. and the Saskferco nitrogen plant. “We are not now and do not plan to be in the fertilizer business,” Jenkins reported. “But a key component of the project is being able to sell product to them.” He said steam generated by the plant would be another component that could be sold to Mosaic for use in its potash mine.
Both the Mosaic and Saskferco facilities are located near the proposed facility. A Saskferco spokesperson last week said the company is still awaiting more information about the project. Mosaic had not responded at press time.
Jenkins said another important element is access to the oil production areas for transporting CO2 for enhanced oil recovery by what he described as a “relatively short pipeline.” Jenkins was not able to talk about the amount of hydrogen or nitrogen that would be produced as a co-product at the plant because “everything is still in the early phase.” Neither would he estimate the amount of petroleum coke that would be needed to keep Belle Plaine running. “We’re getting close to being able to put out a number,” he offered. “You can say that it will be a very large and significant quantity.” Petcoke, a byproduct of upgrading heavy oil, would come from the oil sands fields in Alberta where there are a number of sources, he reported, and would have to be transported by rail because of the distance. He agreed that growth of gasification could eventually mean tighter petcoke supplies and would need to be handled with long-term contracts.
Jenkins said TransCanada prefers to stay away from comparisons, but with other petcoke or coal-based gasification projects pegged at costing $1.6 billion, Belle Plaine, with its larger, complex nature, would “be in the top tier.” It has also attracted financial support from the government of Saskatchewan because of its potential for reducing greenhouse gases. Initially, the government is putting up to $6 million for engineering design, matching the $6 million TransCanada has spent over the past two years. Each will contribute up to $20 million for permitting, including environmental assessment and community consultation. TransCanada would repay the $26 million if the project proceeds; if not, the funding does not have to be repaid.