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Calpine and Mitsui Enter Clean Energy Supply Contract With OPA

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Calpine and Mitsui have jointly entered into a 20-year Clean Energy Supply Contract with the Ontario Power Authority (OPA) to provide clean energy from a new 1,005-megawatt natural gas-fired power plant.

The plant, called the Greenfield Energy Centre, will be located in Courtright, St. Clair Township, near Sarnia, Ontario. The project will be owned by Greenfield Energy Centre, L.P., a partnership between Calpine and Mitsui, and will use modern, combined-cycle technology.

The Clean Energy Contract was awarded to Calpine/Mitsui through the Ontario Ministry of Energy’s recent open and competitive request for proposals for 2,500 megawatts of new, clean energy. This new energy centre supports the provincial government’s efforts to replace older coal-fired plants with clean, efficient gas-fired generation that will minimize greenhouse gas and other emissions. Energy and capacity from the Greenfield Energy Centre will be delivered to the Independent Electricity System Operator of Ontario with the contract guaranteed by the OPA.

“We are very excited to be awarded this contract and to have this opportunity to deliver essential electricity to the Province of Ontario in a clean and cost-competitive manner,” said Calpine chairman, president and chief executive officer, Peter Cartwright. “Calpine looks forward to being part of the community in the Courtright area and to being a part of Ontario’s long-term energy solution.”

Fueled by natural gas, the Greenfield Energy Centre will include three combustion turbines and one steam turbine. The facility will deliver electricity directly to Ontario’s transmission grid, at a time when the province is in great need of additional clean generating resources to meet its rapidly growing electricity requirements. The Greenfield Energy Centre will be highly fuel-efficient, which, along with its modern emission-control technology, will result in low emissions-intensity and assist the province in meeting its clean air objectives.

Under the terms of the 20-year Clean Energy Contract, the OPA will guarantee revenue equivalent to a fixed monthly payment plus a payment for variable operations and maintenance costs based on actual electricity generation. The OPA is a newly established organization responsible for ensuring adequate, long-term supply of electricity to Ontario.

Calpine and Mitsui are each 50% partners in the project. Calpine’s equity in the project will be in the form of equipment. Calpine will supply the three combustion turbines and one steam turbine for the project from its existing pool of equipment. The Calpine/Mitsui partnership expects to use non-recourse project debt to finance the construction costs for the $500 million project. Calpine will construct, operate, and maintain the facility. Mitsui is a leading trading firm, providing a full range of trade and industrial development services.

Construction of the Greenfield Energy Centre is expected to begin in December 2005, after the completion of on-going environmental studies and permitting and other required approvals. The contracted commercial operation date of the facility is February 2008. It is currently anticipated that the project will create up to 800 jobs during the construction period, and approximately 25-30 full-time permanent jobs during facility operations.

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Calpine and Mitsui Enter Clean Energy Supply Contract With OPA


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  • http://www.generator-turbine-powerplant.com R.Pelrine

    It is good to hear that Ontario is making a step forward in clean energy which will pave the way for the other provinces. Who is the manufactures of the three combustion turbines and the one steam turbine ? What is the power output of each unit.

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