The Stel Salaried
Pensioners Organization wishes to thank The Hamilton Spectator for permission
to post the following article by Reporter Tara Perkins published in the
December 9, 2004 edition
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Dec. 9, 2004. 12:42 AM |
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U.S. firm eyes Stelco for $125m
co-generation project |
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By Tara Perkins |
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A U.S. energy company is looking at building a $125 million co-generation station at Stelco. The station is part of a $465-million capital upgrade wish list that Stelco developed as part of its restructuring plan. After a couple months of research, Massachusetts-based Bay Shore Energy has submitted a proposal to Stelco and government officials. The project would take coke oven and blast furnace gases from the Hamilton plant and turn them into electricity and steam for the steelmaker. Bay Shore, a wholly owned subsidiary of GenPower LLC, is completing an assessment of the project for the Ministry of the Environment. The facility could generate up to 150 megawatts of electricity and steam. Duncan McEachern, director of project development, says the Bay Shore project would help Stelco "lower their costs so they can be a more competitive producer going forward." Stelco spends about $100 million a year on electricity. Rising energy costs have hurt the steelmaker over the past few years. Helen Reeves, spokesperson for Stelco, said the company is currently reviewing its options for a co-generation station, and no final decision has been made on the project. A report from the the monitor overseeing Stelco's bankruptcy, says that nearly two dozen parties are mulling a purchase of one or more subsidiaries of Stelco Inc. There are 23 parties that have moved to the so-called Phase 2 of the process, which gives them more financial data to formulate bids for Stelpipe, Stelwire, Stelfil, AltaSteel, Norambar and Stelco's 40 per cent interest in Camrose Pipe Co., monitor Ernst & Young said in its latest update on Stelco's restructuring. tperkins@thespec.com 905-526-4620 |