Saskatchewan's electricity grid will get a boost thanks to 'flare' gas deal with Calgary company

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Steel Reef's Steelman gas plant near Steelman, Sask., is seen in an undated handout photo.

Saskatchewan's electricity grid will get a boost thanks to 'flare' gas deal with Calgary company | CBC News LoadedAs pressure grows on the oil and gas sector to reduce its emissions, one Calgary-based company is banking on the potential to convert waste gas from oil wells into valuable electricity for nearby communities.Steel Reef's Steelman gas plant near Steelman, Sask., is seen in an undated handout photo.

The electricity, expected to come onto the province's grid by late 2027, will be produced at five of Steel Reef's gas plants in Saskatchewan, using recovered gas that would otherwise be flared into the atmosphere at well sites. But its foray into the electricity space is new. Southward said in an interview that the company plans to invest $265 million to install new turbines and electrical substations at five of its Saskatchewan locations to convert the gas into electricity. The power produced at the sites will be "carbon efficient" in that it will put flare gas, a waste product, to productive use at a time when electricity demand is growing.

 

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