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RAPAPORT... Stornoway Diamond Corporation determined that a Liquefied Natural Gas (LNG) fueled power plant at the Renard diamond project would reduce the company's annual operating costs and greenhouse gas emissions. The exploration firm conducted a feasibility study through SNC-Lavalin Inc. and AMEC America Ltd. to demonstrate the benefits of LNG compared with the currently planned diesel generator-set (gen-set) option. The study determined that Renard could reduce its annual operating costs between $8 million and $10 million using LNG for an incremental capital cost of $2.6 million over the cost of diesel gen-sets. Furthermore, the report estimated that LNG would reduce greenhouse gas emissions by 43 percent, compared with diesel, along with significant reductions of NO2 and SO2. Matt Manson, the CEO of Stornoway, said, ''A July 2012 Hydro-Quebec feasibility study into a powerline for the project demonstrated only a marginal economic benefit of using grid power owing to the high cost for powerline construction. The LNG option now provides us with a much more attractive way forward, with off-the-shelf technology, a positive long-term supply outlook, a much smaller environmental footprint and immediate economic benefits for the project through substantially reduced operating costs. This option is made possible to us because, with an all-season road, we are able to receive regular shipments of liquefied gas from the existing commercial distribution network in Quebec, without the need for expensive high-capacity on-site storage facilities. The LNG study has been completed in time to have it incorporated into the final project execution plan prior to the planned commencement of project construction in 2014." The Renard LNG power plant would have seven 2.1-megawatt-rated gas gen-sets, providing sufficient power generation capacity for the project's normal operating specification of 9.5 megawatts, which represents five gen-sets operating at a planned 92 percent efficiency rate. Onsite gas storage will be sufficient for 10 days of operation, with new supplies delivered daily by cryogenic tanker truck from the existing Gaz Metro Liquefaction plant and distribution center in Montreal. In addition to power generation, the LNG will be used for heating Renard's buildings and the underground mine, removing the requirement for onsite propane. A smaller quantity of diesel will continue to be used at site for construction activities and mobile mining equipment, according to Stornoway. The Renard diamond project is located approximately 250 kilometers north of the Cree community of Mistissini and 350 kilometers north of Chibougamau in the James Bay region of north-central Quebec.
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