As Alberta transitions off coal-fired generation, the province will need new supplies of clean electricity to meet the growing demand for power. Combined cycle power generation facilities, such as Cascade, will provide efficient, reliable on-demand power for Albertans. .
Local Economic Activity
The construction and operations of the Project will play an important role in the local economy by providing jobs during construction that will benefit the local and Indigenous communities, businesses and suppliers, as well as provide a base of additional tax revenue to Yellowhead County.
It is anticipated the facility will take three years to construct, employing approximately 600 workers at the peak of construction. The anticipated work effort is expected to require 3,000,000 work-hours in the local area. Once operations commence, 25 direct, long-term skilled jobs will be created in the community.
The total capital investment associated for the Project is approximately $1.5 Billion.
The Cascade Power Project will lead the transition to clean electricity generation in Alberta as the province transitions off coal-fired power. Once complete, Cascade is expected to be the largest and most efficient combined cycle power plant in the province, producing approximately 62% less CO2 equivalent per MWh than existing coal-fired generation, and at least 30% less CO2equivalent per MWh than a typical coal-to-gas conversion. With Alberta contributing over 50% of Canada’s GHG emissions from electricity generation, the Project is expected to result in the largest emissions reduction opportunity in the country’s electricity sector.
Cascade has quick-ramping technology, meaning it can turn on and off quickly, supporting the integration of renewable energy projects in Alberta.
How They Work
Natural gas combined cycle power generation facilities are a high efficiency, environmentally attractive form of power generation necessary to meet the growing demand for electricity in Alberta.
A combined cycle power facility uses both a gas and a steam turbine simultaneously to produce up to 50 per cent more electricity from the same amount of fuel than a traditional simple cycle facility. This is because all of the wasted heat from the gas turbine is recovered and converted into high-pressure steam, which drives the steam turbine and generates additional electricity.
Cascade is owned by a consortium of global infrastructure investors and local First Nations.
With net assets of almost $22 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 96,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.
About Indigenous Communities Syndicate LP
The Indigenous Communities Syndicate LP (ICS) is a consortium of six First Nations, owned by Alexis Nakota Sioux Nation, Enoch Cree Nation, Kehewin Cree Nation, O’Chiese First Nation, Paul First Nation and Whitefish Lake First Nation. The ICS was formed to make a meaningful investment in the Cascade Power Project.
About Axium Infrastructure Inc.
Axium Infrastructure (comprised of Axium Infrastructure Inc. and its affiliated entities) is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure had C$5.1 billion in assets under management as of June 30, 2020, as well as C$1.7 billion in co-investments. The firm benefits from the capabilities of a group of specialists with decades of experience acquiring, developing, financing, operating and managing infrastructure assets. Focus is placed on assets that are supported by robust market demand and under long-term contract with creditworthy counterparties. Since 2010, the firm has invested in a diversified portfolio of over 145 North American infrastructure assets.
About DIF Capital Partners
DIF Capital Partners is a leading global independent infrastructure fund manager, with €7.6 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:
DIF Infrastructure funds target equity investments in projects with long-term contracted or regulated income streams including public-private partnerships (PPP/PFI/P3), concessions, utilities, and (renewable) energy projects.
DIF CIF funds target equity investments in small to mid-sized infrastructure assets in the telecom, energy and transportation sectors.
DIF has a team of over 145 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto.