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Kineticor and Pembina Collaborate on Greenlight Electricity Centre Project

Kineticor Asset Management LP has recently joined forces with Pembina Pipeline Corporation in a groundbreaking joint venture, focusing on the development of the Greenlight Electricity Centre (GLEC) in Alberta. This strategic partnership marks a significant milestone in Alberta's ongoing pursuit to become a hub for renewable energy and data center operations.

Project Overview

The Greenlight project is set to comprise a multi-phased gas-fired combined cycle power generation facility, with an impressive capacity of up to 1,800 MW, alongside an option for carbon capture technology. This remarkable initiative will also include provisions for a complementary data center complex capable of hosting an additional 1,800 MW of energy demand.

Located in Alberta's Industrial Heartland, the facility is positioned for success, as it occupies land already designated for heavy industrial activity and is in proximity to crucial utility infrastructure, transmission lines, and carbon sequestration opportunities. The overall development promises to bolster Alberta's infrastructure while supporting the emerging data center sector exponentially.

Strategic Importance of Collaboration

Kineticor's experience in the power sector, demonstrated by its successful establishment of the 900 MW Cascade Power Plant, offers a solid foundation for the GLEC. Pembina’s Senior Vice President, Stu Taylor, expressed optimism regarding the partnership, noting the company’s strong asset base and existing infrastructure that will support the project’s energy needs. The potential linkage to Pembina’s Alliance Pipeline further improves the viability of providing natural gas for the new facility, enhancing operational efficiency and sustainability.

Andrew Plaunt, Kineticor’s CEO, emphasized the strategic advantages of working alongside Pembina in Alberta's well-equipped Industrial Heartland. He acknowledged Alberta’s vast land area and robust infrastructure, which present prime conditions for undertaking such large-scale projects. This collaboration aims to coalesce the strengths and experiences of both firms, paving the way for a world-class facility.

Addressing Alberta’s Power Needs

The Greenlight Electricity Centre stands as a promising solution to meet the rising electricity demand from Alberta’s rapidly expanding data center industry. It has been proposed that the facility will be constructed incrementally, phased at approximately 450 MW, eventually reaching the maximum capacity of 1,800 MW. Currently, the GLEC is navigating Stage 3 of the Alberta Electric System Operator’s (AESO) interconnection process, progressing through essential stages of permitting, design, and contracting.

Crucially, the GLEC is tailored to either supply power to the co-located data centers or feed energy directly into Alberta's power grid, thereby enhancing the overall power supply to multiple consumers across the province.

Engagement With Data Center Operators

Greenlight's definitive plans are well underway, with an active 1,800 MW load application submitted for the surrounding lands, and a targeted grid interconnection timeline set for early 2027. The project teams are actively reaching out to prospective clients interested in positioning their data centers within the GLEC vicinity or pursuing long-term agreements for power procurement.

By situating itself near Edmonton, Alberta's local resource expertise, both in terms of labor and technology, paves the way for efficient project execution, while also driving innovations and investments within the province.

Supporting Alberta’s Vision

The Alberta government has set an ambitious target to attract $100 billion in data center investments by 2030, fostering an environment conducive to innovative energy solutions. Pembina and Kineticor are profoundly committed to this vision through the provision of reliable and cost-efficient power tailored to meet the diverse needs of data centers.

Conclusion

In summary, the collaboration between Kineticor and Pembina to realize the Greenlight Electricity Centre is not merely a business venture; it represents a vital step towards a sustainable energy future in Alberta. The successful execution of this project could redefine the province's energy landscape while supporting its aspirations in the burgeoning data center industry.