SaskPower and Kineticor Launch New Flare Gas Power Project

March 03, 2016

Innovative technology uses waste flare gas at oil and gas operations to create electricity for Saskatchewan, while significantly reducing emissions

Today near Shaunavon, Kineticor brought a new flare gas power generation process into commercial operation, providing one megawatt of electricity to the Saskatchewan power grid. The power produced will be purchased by SaskPower under a 20-year agreement. The project was initiated when SaskPower's Flare Gas Power Generation Program was launched — a program designed to help oil and gas operations reduce their environmental footprint by turning waste flare gas into usable electricity.

"We're very pleased to have Kineticor take part in this program and we applaud them for their willingness to innovate," SaskPower President and CEO Mike Marsh said. "We hope to see more projects like this being developed in the future by oil and gas producers and their partners, in collaboration with SaskPower. We can help them reduce their greenhouse gas emissions, while we buy the electricity produced to meet Saskatchewan's growing demand for more environmentally sustainable electricity."

"We are grateful for the opportunity to work with SaskPower to bring this project into commercial operation," Kineticor CEO Andrew Plaunt said. "This project signifies one of the many opportunities for Kineticor to provide oil and gas producers an economical solution to reduce and eliminate flaring. We offer an innovative model to capture and convert energy that would otherwise be flared while significantly reducing the operation's carbon footprint."

Saskatchewan has taken steps to reduce flaring, incinerating and venting of waste gas with new regulations. SaskPower's Flare Gas Power Generation Project allows oil and gas operations to convert waste flare gas into usable electricity for the residents of Saskatchewan. It also represents a small additional revenue source for the operations. In addition, this project will allow further research and development into the emerging technology.

Flare gas power generation is a part of Saskatchewan's diverse generation mix. The development of cleaner electricity generation options is essential to power Saskatchewan's future. SaskPower will also significantly increase the amount of renewable electricity in Saskatchewan's generation mix — from 25% today to as much as 50% by 2030.

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