TransAlta speeding transition from coal to gas at Edmonton-area power plants

TransAlta is accelerating plans to convert its coal-fired power plants to gas.

"The company is taking steps today that will position us as a leader in clean power generation and improve our competitive position as we consider a future where carbon is a high cost input to power generation," said Dawn Farrell, president and chief executive officer, in a news release Thursday.

The plan moves ahead conversion dates for the company's Sundance and Keephillselectricity generating units near Wabamun Lake west of Edmonton.

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Sundance Units 3 to 6 and Keephills Units 1 and 2 will be converted from coal-fired generation to gas-fired generation between 2021 and 2023.

Converting the units willextendtheir lives from the 2020s to the mid-2030s, the company said.

TransAlta will begin immediately taking steps tosecurethe gas supply required for the converted units and the construction of the required pipeline.

The strategy will also see SundanceUnit 1 retired by Jan. 1, 2018,instead of at the end of 2019.

Sundance Unit 2 will be mothballed for up to 2 years, effective Jan. 1, 2018.

TransAlta said it is retiring Sundance Unit 1 early and mothballing Sundance Unit 2 because of the "oversupplied Alberta power market and low power price environment."

Converting units to gas-fired generation will lower carbon emissions, reduce operating costs, increase operating flexibility, and add five to 10 years of economic life to each converted unit, TransAlta said.

Sundance Units 1 and 2 together generate560 megawatts of the 2,141 MW at the Sundance power plant, which serves as a baseload provider for the Alberta electricity system.

TransAlta said the 2,400 MW capacity of Sundance Units 3 to 6 and Keephills 1 and 2 will not change following conversion, but will reduce carbon emissions by 40 per cent.

The coal-to-gas conversions is expected tocost $300 million.

The release does not mentionKeephills Unit 3 which began commercial operations in September, 2011. It is touted as oneof Canada's largest and cleanest coal-fired facilities

The Alberta government intends to phase out all coal pollution by 2030.