FAQ & Knowledge Base

A quick due-diligence checklist. Get answers in writing and verify independently.

Gas sites: gas source (single well, multi-well, gas plant, pipeline)? Composition and heating value (CH4 %, C2+, CO2, N2, H2S)? Available and firm volume (MCF/d)? Is a meter provided and who pays for it? Is the producer in good standing with the AER and are royalties/measurement handled? Permits and surface lease status? Neighbours within 1.5 km and setback distances? Grid power, fibre, fencing, security? Timeline to connection, deposit, and contract term (firm vs. interruptible)?

Generators: year/make/model and rated kW? Hours and maintenance history? Fuel type and required gas quality? Voltage, tap settings, breaker specs? Alternator, controller, AFR, AVR, governor, turbo models? Emissions (EGR/SCR, NOx) and efficiency? Recent inspection/borescope reports and spark-plug details? Enclosure type? Warranty and who backs it? Is the seller the owner or a broker?

Datacenter opportunities: total vs. currently-available MW and power status (energized vs. application stage)? Utility/interconnection or behind-the-meter? Substation on site and service voltage? Redundancy (N/N+1/2N), cooling, and power density? Land/building size, zoning, and permits? Water and fibre availability? For sale, lease, hosting, or JV?

The economics of a gas-to-power site hinge on a few fundamentals:

• Gas quality: reciprocating gensets want consistent, reasonably clean gas. Watch heating value (BTU/scf), higher hydrocarbons (C2+) that affect knock, inert gases (CO2/N2) that dilute energy, and especially H2S (sour gas), which drives treating and materials requirements.
• Volume & firmness: match sustained MCF/d to the engine fleet, and understand whether supply is firm or interruptible and how it declines over time.
• Source type: single stranded well vs. multi-well, gas plant tie-in, or pipeline tap — each has different reliability, metering, and contractual implications.
• Site logistics: grid power for controls, fibre/connectivity and distance, road access, fencing and security, and neighbour setbacks (e.g., within 1.5 km).
• Regulatory standing: confirm the producer's AER standing, that gas is measured and royalties are handled, and that flaring/venting reduction is documented — Alberta flared >900 million m³ in 2024, so stranded/flare gas is common but must be handled correctly.

Two agreements commonly underpin these deals:

Gas Supply Agreement (GSA): governs the fuel. Key terms: price mechanism (fixed, index, or cost-plus), firm vs. interruptible volume, minimum/maximum takes, gas quality specs and remedies if off-spec, metering and measurement responsibility, term and renewal, force majeure, and who bears royalties and shut-in risk.

Power Purchase Agreement (PPA): governs the electricity where power is sold or hosted. Key terms: price ($/MWh or hosting $/kW), uptime/availability commitments, curtailment rights, term, security/deposit, and termination. For behind-the-meter builds, a hosting or tolling agreement may replace a traditional PPA.

Cross-cutting: align the GSA and PPA terms and durations, define who owns/permits the generation, and paper deposits, security, and default remedies clearly. Get counsel to review before signing.

Jurisdiction is split and worth understanding early:

• The Alberta Utilities Commission (AUC) generally has primary jurisdiction over power plants and their construction/operation.
• The Alberta Energy Regulator (AER) regulates the upstream oil & gas activity. Per AER Bulletin 2022-12, operators must report crypto/mining loads on AER-regulated sites, ensure gas is measured and reported as sales gas with royalties paid, meet spacing/setback rules for flame-type equipment and ignition sources, and notify the AER of incidents affecting regulated activities.
• Alberta's bring-your-own-generation (BYOG) framework enables behind-the-meter power for loads like data centres.

Unauthorized operation carries real risk — Alberta has ordered gas-plant shutdowns for non-compliant crypto operations. Verify approvals and standing before you commit.

Typical approvals and steps for a site build:

• Land & zoning: confirm ownership/surface lease, municipal zoning and development permits, and any setback/noise bylaws.
• Energy approvals: AUC power plant approval (or applicable exemption), AER requirements for the gas side, and interconnection agreements if grid-tied.
• Construction: building/electrical/gas permits, foundation and containment for gensets, emissions and noise controls, and fire/spacing compliance.
• Commissioning: metering, protection settings, environmental monitoring, and as-built documentation.

Lead times vary widely — start permitting conversations before you finalize equipment and supply.

Gas-to-power sites combine flammable fuel, high voltage, rotating equipment, and exhaust:

• Gas hazards: leak detection, ventilation, and special care with H2S; maintain spacing between ignition sources and gas equipment per AER rules.
• Electrical: proper grounding, breaker/protection coordination, lockout-tagout, and arc-flash precautions.
• Mechanical & exhaust: guarding, hearing protection, and CO/exhaust management for enclosures.
• Site: fencing, signage, access control, fire suppression, and an emergency response plan; log inspections and incidents.