CALGARY – Privately owned Genalta Power Inc. has struck a deal to generate electricity from gas being flared at a Husky Energy well (TSX:HSE) in western Alberta.
Financial terms of the deal, announced Tuesday, were not revealed.
The Cadotte waste fuel to power project will generate three Megawatts of power, enough for nearly every home in the nearby town of Peace River, Genalta said.
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The project is expected to cut flaring at the site by more than 80 per cent and is slated for startup by mid-2012.
Flared gas is waste gas and is usually burned through a stack into the atmosphere.
“Genalta Power and Husky have been developing this project for over a year,” said Graham Illingworth, Genalta;s CEO. “We are very excited to be developing a model for environmental performance and sustainable development that can be adopted across the industry.”
Genalta will design, build, own and operate the power plant.
Genalta is a private company developing a range of alternative energy projects with a focus on the oil and gas industry.
Husky is a Calgary-based integrated oil and gas company with oilsands and heavy oil operations, a refining and gasoline station network, offshore East Coast energy production and a growing business in South East Asia.
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