Important Note Regarding Project Pioneer - April 2012

On April 26, 2012, TransAlta, along with partners Capital Power and Enbridge, announced the decision not to proceed with the carbon capture and storage (CCS) project called Project Pioneer.

The Pioneer partners concluded that the technology works and that capital costs were in line with expectations. However, the market for CO2 sales and the value of emissions reductions in Alberta and Canada are not sufficient, at this time, to allow the project to proceed.

While it is disappointing to be unable to achieve the result hoped for, it is important to remember that the purpose of Project Pioneer was to 'prove out' the technical and economic feasibility of CCS before going down the major capital investment path. That purpose was achieved: the two years of hard work by the Project Pioneer team was a major success.

The Pioneer partners come out of this with a much deeper understanding of CCS in an Alberta setting. And of course, it is the intention to share this understanding with the federal and provincial governments and the global scientific community so others can benefit from what was learned.

This decision isn't a reflection on the long-term viability of CCS or the future of coal-fired generation. Coal is a critical fuel for power generation in Alberta and world-wide, and TransAlta believes it will continue to be a vital part of the global fuel mix.

TransAlta, Project Lead, Project Pioneer