Enmax, the City of Calgary’s energy utility arm, has decided to get into the gas business. It recently acquired Cordero Energy Inc. for $160 million plus debt. Enmax has also received shareholder approval to build two new gas-fired power plants at a cost of $1.6 billion. The moves are designed to feed the needs of the city’s rapidly growing population and expanding energy demands.

The two new facilities will provide an additional 1,200 megawatts of electricity; enough power to meet about two-thirds of Calgary’s current requirements. Meanwhile, the Cordero acquisition will lock in a stable supply of natural gas for the city’s power stations.

Though Enmax asserts that the new plants will use clean technologies and produce less than half the C02 per megawatt of its current coal plants, some environmentalists are less than keen on the plan. Mike Hudema of the Alberta branch of Greenpeace questions whether the city is doing enough in areas like energy conservation and renewable sources. “We should do an assessment first on whether the energy needs can be met through renewable means before we start building more and more infrastructure to keep us just as addicted [to fossil fuels],” says Hudema.

Peter Hunt, the vice-president of media relations for Enmax, indicates that the Cordero acquisition and new power plants "should enable Enmax to offer better electricity prices to Calgarians." On the topic of renewable energy, Hunt says that the quick-fire natural gas plants will stabilize the power grid, allowing for more wind farms. (AM)