ATCO Opens $175 Million Cogeneration Plant in South Australia

Thursday, February 18, 1999

CALGARY – ATCO Group opened Australia's largest co-generation plant in Adelaide today in a trans-Pacific development that has significantly increased South Australia's electricity supply. The 180 megawatt plant is jointly owned and operated by CU Power, an ATCO company, and Australia's Boral Energy, and will provide about 10 per cent of South Australia's electricity requirements.

Senior representatives of the partners parent companies, ATCO Group and Boral Ltd. attended today's official opening by South Australian Premier Mr. John Olsen.

Alberta-based ATCO Group President and Chief Operating Officer, Mr. Craighton Twa said CU Power and Boral Energy formed a long term strategic alliance in 1994 to develop, own and operate power projects in Australia. "By pooling our resources and making full use of the natural synergies between our two companies, we have created a solid partnership in the Australian power industry," he said. "Our intention is to jointly pursue other projects, with an emphasis on power generation that is fuel efficient and environmentally friendly."

Cogeneration plants are more efficient because they make use of heat that is wasted in conventional power stations. At Osborne, the heat is used to produce steam for neighbour company Penrice Soda Products and also for additional power generation. Penrice, Australia's sole producer of soda ash, will purchase 1.2 million tonnes of low cost steam each year from the plant. A long term purchase agreement has been reached with ETSA Corporation for the supply for base power direct to the State grid.

CU Power managed the construction of the Osborne plant, which incorporates many state-of-the-art features for optimum performance. The Osborne Cogeneration plant consists of a 120 megawatt gas turbine and a 60 megawatt steam turbine, fuelled by natural gas from South Australia's Cooper Basin and uses 50 per cent less fuel to achieve the same megawatt output as a conventional power station. This advanced technology reduces nitrous oxide emissions by at least 300 per cent and carbon dioxide emissions by a third.

At the Opening of the Osborne Cogeneration Plant, ATCO and Boral also announced their joint venture company would proceed with a Development Application for a second stage 440 megawatt power station project adjacent to the Osborne plant site.

Boral Energy, a subsidiary of Australia's Boral Ltd. holds significant interests in electricity, natural gas, oil and liquefied petroleum gas.

CU Power owns and operates independent power projects in Canada, the UK and Australia - including the 1000 megawatt combined cycle Barking power station in London, England and a cogeneration plant at Heathrow Airport. CU Power jointly owns the 120 megawatt McMahon cogeneration plant in British Columbia, and most recently commissioned the 85 megawatt Primrose cogeneration station in Northeast Alberta and a 45 megawatt power plant near Grande Prairie. As well, they announced a joint venture agreement to develop a 550 megawatt combined cycle power plant in Mississauga, Ontario. Several other projects are under construction, including a 440 megawatt plant at Joffre, Alberta.

ATCO Group is Alberta-based, with a world-wide organization of energy, technical services and manufacturing companies.

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For further information, please contact:

Mr. Grant Lake
Vice President, Commercial
CU Power International, an ATCO company
Phone: (403) 209-6905