* Gas-fired plant to replace coal-fired
* Would be TransAlta's largest gas-fired plant
* Costs not disclosed
CALGARY, Alberta, Nov 10 TransAlta Corp (TA.TO)
said on Wednesday it will build a gas-fired power plant at its
Sundance complex near Edmonton, Alberta, capable of producing
up to 800 megawatts of electricity.
The company, which runs coal, gas and renewable power
facilities in Canada, the United States and Australia, said it
taken initial steps towards regulatory approval for the
proposed Sundance 7 plant, filing an interconnection
application with the Alberta Electric System Operator.
The new plant will replace coal-fired facilities that the
Canadian government has ordered phased out to cut the country's
greenhouse gas emissions.
Dawn Farrell, the company's chief operating officer, said
during an investor presentation that she expects the government
will offer some compensation to coal-fired plant owners because
of the planned new rule and TransAlta would use the money to
build the new facility.
"TransAlta has begun preliminary engineering, design and
environmental work to allow TransAlta to reinvest these
recovered costs to build a state-of-the-art ... natural gas
Farrell said the new plant, which would be the largest
gas-fired facility owned by the company, could take advantage
of infrastructure already in place at the site 70 km (43 miles)
west of Edmonton, where its coal-fired facilities produce 2,100
megawatts of electricity.
The cost of the planned Sundance 7 plant was not
TransAlta shares rose 17 Canadian cents to C$20.77 by early
afternoon on the Toronto Stock Exchange.
(Reporting by Scott Haggett; editing by Rob Wilson)