Syn-fuel project on hold

Alter NRG, an ambitious Calgary-based technology company, is stalling until next spring a decision on a possible C$450 million power plant in Alberta that would rely on synthetic fuel derived from petroleum coke.

It said the state of the economy may “affect the outlook for power development in Alberta.”

The plant, 40 miles northeast of Edmonton, is designed to produce electricity using a blend of natural gas and synthetic gas, using the company’s proprietary technology.

The facility is also intended for use in carbon capture and storage, with almost 600,000 metric tons a year of captured carbon dioxide expected to be injected into nearby geological formations or sold for enhanced oil recovery.

As well, Alter NRG said the deepening credit crunch will make it more difficult to raise funds for its C$4.5 billion coal-to-liquids project, but has yet to shelve the undertaking.

It proposes turning coal reserves in northwestern Alberta into diesel fuel and naphtha using processes that have been in commercial operation worldwide for more than 30 years.

—Gary Park