Operations

H.R. Milner Expansion FAQ

  1. Who will operate the Milner Expansion?
  2. What is a Base-load Power Station?
  3. Why was the proposed site selected?
  4. What employment and business opportunities will be available?
  5. How much water will the facility use?
  6. What about wastewater?
  7. What about emissions?
  8. Where will you dispose of ash produced by the plant?
  9. Where will the electricity generated be used?
  10. How will the electricity generated be sold?
  11. What new transmission facilities will be required?
  12. When will the Milner Expansion begin generation?
  13. What is the current status of the Project?
  14. What is the Regulatory Process for this Project?
  15. How do I participate?

Who will operate the Milner Expansion?

MAXIM will own and operate the facility. Based in Calgary, Alberta, MAXIM is an Independent Power Producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM now owns and operates 35 power plants in Western Canada, United States and France, having 757 MW of electric and 135 MW of thermal generating capacity. In Alberta, MAXIM owns and operates the 150 MW H.R. Milner Generating Station near Grande Cache and four separate natural gas-fueled generating facilities in Taber, Burdett, Coaldale and Fort Macleod, and operate the Gold Creek waste heat recovery generation facility near Grande Prairie.

What is a Base-load Power Station?

A base-load station is designed to operate on a continuous basis except for maintenance and scheduled or unscheduled outages. MAXIM expects the facility will operate approximately 90% of the year.

Why was the proposed site selected?

MAXIM believes that an expansion at the existing site is ideal for the following reasons:

  • It is consistent with existing land use
  • It is located near suitable fuel sources
  • It has access to infrastructure including natural gas pipelines, water and rail
  • It provides key support for Alberta’s electrical infrastructure by injecting power in a generation deficient part of the province
  • New electrical transmission facilities can be accommodated on Crown land

What employment and business opportunities will be available?

The new facility will require up to 40 new employee including both skilled and non-skilled workers. In addition to operations employment, the project, if approved, will create significant construction employment opportunities over a 3.5 year period.

How much water will the facility use?

The proposed facility will require approximately 16,000 cubic meters per day (on average). The actual amount required is dependent on temperature and the facility will typically use less water in the winter and more water in the summer.

Water required for the project will be withdrawn from the Smoky River and will be well within our existing water license volumes. A new intake structure along the Smoky River adjacent to the plant is contemplated. This new intake will be the subject of separate applications to provincial and federal regulators.

What about wastewater?

Wastewater from the facility will consist of the water treatment wastewater, industrial wastewater, cooling water and sanitary sewage. Water treatment wastewater consists of the constituent minerals of the water withdrawn from the Smoky River.

Water suitable for return to the river system will be diverted to a process water management pond where it will be tested for compliance with surface water quality guidelines before it is discharged into an on-site wetland. The on-site wetland, which is hydrologically connected to the Smoky River, acts to further improve water quality prior to it re-entering the Smoky River.

Wastewater that may contain impurities not consistent with surface water quality discharge requirements will be collected on-site and trucked to an appropriate facility for disposal.

What about emissions?

Air emissions from the Milner Expansion that are regulated by Alberta Environment include Oxides of Nitrogen (NOx), Sulfur Dioxide (SO2), Carbon Monoxide (CO), Mercury (Hg) and Particulate Matter (PM). The technology proposed for the facility will be among the cleanest and most efficient in the world and will achieve Alberta’s stringent new guidelines for these emissions.

NOx is created when fuel is burned at a high temperature. The combustion system proposed for the Milner Expansion uses state of the art burners that minimize NOx that is created. In addition, a Selective Catalytic Reduction (SCR) system will be added to ensure that concentrations of NOx meet Alberta’s Ambient Air Quality Objectives.

Sulphur contained in the coal is converted to SO2 during the combustion process. The Milner Expansion project will utilize a de-sulphurization process that will remove a high proportion of the SO2 contained in the exhaust gas.

Carbon monoxide is a product of any burning of organic material and is a result of incomplete combustion. The combustion system proposed for the Milner Expansion project will burn coal at a very high temperature, resulting in efficient, complete combustion, thus minimizing the creation of CO.

Particulate matter is created by burning solid impurities in fuel. Fabric filters are used to capture particulate material in the exhaust gas before release to the atmosphere.

Mercury contained in the coal is released during the combustion process. Activated carbon is injected into the exhaust gas stream to precipitate Mercury and allow it to be collected as particulate material by the fabric filters.

Where will you dispose of ash produced by the plant?

The disposal of ash is a common element of coal-fired power plants. The incombustible material contained in the source coal either falls out as heavier bottom ash or is captured by the exhaust gas clean-up equipment as synthetic gypsum and fly ash.

The most common disposal method for ash is landfill although the fly ash material can sometimes be used as an aggregate in concrete and synthetic gypsum can sometimes be used in the manufacture of wallboard.

In addition to maximizing opportunities to use fly ash and synthetic gypsum commercially, MAXIM considers the reclamation of one or more abandoned open mine pits in the area to be a viable option. Reclamation would return the non-combustible material to a depleted coal seam and re-contour the area to facilitate greater access and use.

Where will the electricity generated be used?

The proposed facility will deliver its output directly into the Alberta grid.

How will the electricity generated be sold?

Electricity generated at the proposed facility will be sold into the Alberta wholesale electric market. Electricity prices in the wholesale market are set by the forces of supply and demand to ensure that the lowest available cost electricity is being produced at any given time.

What new transmission facilities will be required?

The Alberta Electric System Operator (AESO) has determined that the Milner Expansion project will require a new 240 kV transmission line to be constructed from the plant site to the existing 240 kV transmission lines south of Valleyview, Alberta. The AESO has identified areas of consideration for this new line which is expected to parallel existing lines located on Crown land.

The new transmission line will be the subject of a separate application to be brought forward by ATCO Electric, the transmission facility owner in the area.

When will the Milner Expansion begin generation?

If successful in obtaining the required approvals, MAXIM expects commercial operation to begin in late 2012.

What is the current status of the Project?

The Project is in the planning, permitting and public consultation stages. MAXIM expects to file the necessary applications in the fall of 2008.

What is the Regulatory Process for this Project?

The regulatory process for the Milner Expansion Project was initiated with the distribution of our Public Disclosure Document and the proposed Terms of Reference for our Environmental Impact Assessment. The Terms of Reference were finalized by Alberta Environment on April 9, 2008 following a period of public notification and input.

The next steps in the process involve completing our environmental studies, sharing that information with the community and refining our plans prior to submitting our regulatory applications. We are currently expecting to file these applications in the fourth quarter of 2008.

Once submitted, we expect the processing of these applications to take about 12 months. During this time, MAXIM will continue to consult with stakeholders. Prior to issuing a decision, each of the affected regulatory agencies, the Alberta Utilities Commission and Alberta Environment will issue public notices providing stakeholders with an additional opportunity to provide comment.

How do I participate?

MAXIM plans to provide stakeholders and the public with an opportunity for open communication and dialogue, which should result in thoroughly informed decisions and a plant development that reflects the values of interested and affected parties. MAXIM will consult with and listen to directly-affected and interested stakeholders before submitting applications to the Alberta Utilities Commission (AUC) and Alberta Environment (AENV). MAXIM will respond to all concerns, questions and requests for additional information, indicating what action has been or will be taken, if required, addressing any identified concerns.

MAXIM is committed to a thorough consultation process which provides numerous opportunities for you to learn more about the project and share your views with us. You are encouraged to share your ideas and ask questions during our open house or in writing so your thoughts can be investigated and addressed.

We have planned numerous opportunities for participation including:

Personal consultation for any interested stakeholder.
Any stakeholder requesting a personal visit will be contacted by a project representatives who will share project information and discuss any questions or concerns you may have.

Open House.
MAXIM will be hosting open house events during which area residents can find out more about the project and discuss their views directly with project representatives.

Public Consultation Line.
Our public consultation team would be happy to answer questions or to find the answers you need.

As the project advances we will undertake on-going consultation to provide additional information related to the project and address any additional community and stakeholder concerns. MAXIM will continue with a personal one-on-one program with directly-impacted stakeholders throughout the life of the project. This will ensure that local community issues and concerns are addressed in project planning and operations.

If you require additional information or have ideas to share, please call our H.R. Milner Generating Station at 780-827-7100 and ask to speak to our local consultation representative.