Synfuel acquires rail, port facility for plant.

A proposed new 120-megawatt cogeneration plant in Thunder Bay is slowly, but surely, making its way to becoming a reality.

Synfuel Technologies, a small U.S.-based company with 14 employees, has received a signed agreement from The Northwest Energy Association to take the power supplied by the proposed cogeneration plant. The pact is for 10 years with renewal options. Terms of the deal were not disclosed.

Synfuel Technologies is a private corporation formed for the purpose of constructing, operating and integrating gasification plants utilizing low-value fuels and upgrading to value-added syngas and/or hydrogen streams for use in producing anhydrous ammonia or other industrial products, as well as electrical power generation.

The first phase of the proposed project could be producing 120-megawatts within two years, and the plant could be expanded by 500 megawatts in four years. Another 500 megawatts in the third phase would bring the total to 1,120 megawatts. Cost of the three phases is estimated at $1.4 billion.

Synfuel Technologies is in final negotiations with a company to take the steam off-take.

Officials with Synfuel have been meeting with financial institutions to discuss the construction financing.

"There is a great deal of interest from several banks to participate in the project," says Robert Van Patten, president of Synfuel Technologies.

Synfuel now has an agreement with a company to supply the fuel required to produce energy. The name of the business was withheld because of a confidentiality agreement, but Van Patten assures the company is a leading Alberta oil producer.

A developer has not been named; however, Van Fatten is still targeting Jan. 1, 2003 as the date for construction to begin.

Synfuel is still waiting for the governmental review of the environmental impact study on the pilot plant. When the review of the study is complete Van Fatten says he will know what permits will be required and what Synfuel has to do to obtain them.

Van Fatten sees the potential plant as a boon for the community of Thunder Bay.

"I think what everybody involved is anticipating is with the additional power it will help attract other businesses," says Van Fatten.

Larry Hebert, general manager of Thunder Bay Hydro, echoes Van Patten's comments.

"It's been a small benefit now and we are hoping it will be a large benefit down the road," Hebert says. "To date it has been a positive benefit."

One of the major economic benefits so far has been Synfuel's purchase of Valley Camp, a port and railway facility, which was likely going to be closed down with assets sold off.

"The purchase basically saved 11 or 12 fulltime jobs," says Hebert.

The plant will take petroleum coke and convert it to energy with the same emissions as a natural gas plant, according to Van Fatten.

"We are looking forward to developing this cogeneration plant I think it is the first step towards maybe duplicating this in other locations so it can be beneficial to all of Canada."

The greatest challenge so far has been the selection of the technology required to adapt a biomass conversion to accommodate the petroleum coke and to make sure emission standards are met, Van Fatten says.

"These gasification plants have previously burned olive waste and other kinds of waste. They have never burned petroleum coke before," says Van Patten.

The progress has been a little slower than anticipated, but with numerous companies and different people involved it is time consuming, VanFatten says.