Canada to get its first coal-to-liquid conversion plant in Alberta

24-Jul-08

A small alternative energy firm, Alter NRG has expressed interest to build plant worth C$4.5 bln which will convert coal to 40,000 bpd of diesel and naphtha. The project, Canada's first coal-to-liquid project, will be built in two 20,000 bpd phases and will be housed in Fox Creek, Alberta to the northwest of Edmonton. Alberta is an apt location for the plant as it has a proven coal reserves of 33.3 bln tons. Alter NRG is considering forming a JV or a partnership with mining, energy and gasification firms in order to capitalize the project which is slated to be operational by 2013. Besides, the company also plans to capture most of the carbon dioxide emitted by its plant which may be used to boost oil output from about 30 fields near its planned facility in Alberta.