On October 16, 2006, the Ontario Power Authority (OPA) signed contracts allowing C$800 million worth of investment in seven high-efficiency, combined heat and power projects across Ontario with a combined capacity of 414 MW. The contracts are the culmination of the first phase of the OPA's Request for Proposals for Combined Heat and Power Generation to secure 1,000 MW of energy.
The wholly owned limited partnership of Algoma Steel Inc. (TSX: AGA), Algoma Energy LP, was one of the successful bidders. It will construct and operate a new 70 MW cogeneration power facility at Algoma Steel's plant site in Sault Ste. Marie, Ontario, fueled by blast furnace and coke oven gases from Algoma's steel plant operations. The facility is expected to be operational by the end of 2008 and its capital cost is estimated at C$135 million.