Tourmaline’s Malachite Project Turns Alberta Gas Into AI Power

Alberta Tribune
Alberta Tribune is an independent Alberta new media and opinion publication based in Calgary. This is the editorial desk byline, used for reporting and commentary produced...
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Tourmaline Oil’s subsidiary, Emerald Energy Technologies, wants to burn Alberta natural gas to power an AI data centre, and it has filed a project to do it.

Key facts

  • Tourmaline’s subsidiary Emerald Energy Technologies has filed Malachite One, beside the Banshee Gas Plant about 40 kilometres southwest of Edson.
  • The concept lists up to 150 million cubic feet of gas a day feeding close to one gigawatt of power for a data centre campus.
  • The power facility is estimated at up to $5 billion, with data centre infrastructure up to $15 billion more.
  • The proposed build-out runs 2027 to 2030, with 300 to 500 long-term data centre jobs and 40 to 60 at the power plant.
  • The project is at proposal stage, and approvals, customers and investment decisions are still outstanding.

The Numbers Behind Malachite One

Malachite One would sit on Crown land next to Tourmaline’s existing Banshee Gas Plant, roughly 40 kilometres southwest of Edson in Yellowhead County. Alberta’s major projects database lists the concept at up to 150 million cubic feet of natural gas a day, feeding a facility that could generate close to one gigawatt of electricity for a dedicated data centre campus.

The dollar figures are large even by data centre standards. The power generation facility alone is estimated at up to $5 billion. Data centre infrastructure on top of that could reach $15 billion. The proponent is also considering an optional carbon capture component, compressing and liquefying CO2 for injection roughly 3,700 metres underground. Projected employment runs 300 to 500 long-term data centre jobs plus 40 to 60 permanent positions at the power plant, with a proposed build-out window from 2027 to 2030.

None of that is committed yet. The project remains at the proposal stage, and final approvals, customers and investment decisions are still outstanding.

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Why A Gas Producer Wants Into Computing

Tourmaline already owns the gas, the pipeline connections and a working plant next door. Building a power facility beside existing infrastructure is cheaper and faster than starting from empty ground, and it turns a commodity Alberta already produces in volume into a second product, electricity sold directly to a computing customer instead of gas sold into a pipeline network.

That model is different from the AESO grid-connection approach other data centre proponents have pursued, and different again from the AUC-rejected plan for a gas plant near Olds. Malachite One is built around Tourmaline’s own supply, which changes the risk profile without eliminating the regulatory process the project still has to clear.

What Still Has To Be Decided

The bigger argument should happen now, before the project reaches a hearing. Converting Alberta gas directly into computing power could be a smart new market for a resource the province already produces in volume. It could also be a poorer use than exporting that gas, refining it or keeping it in the pipeline system that serves customers today.

It is too early to judge a project that has not been built. But Yellowhead County residents deserve the same straight answers on water, land and long-term local benefit that communities near Sturgeon County and Indus are currently demanding, before construction, not after.

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Alberta Tribune is an independent Alberta new media and opinion publication based in Calgary. This is the editorial desk byline, used for reporting and commentary produced by the newsroom on Alberta politics, energy and pipelines, business, infrastructure, agriculture, artificial intelligence and provincial public policy.