Government Approves $1.24 Billion Carbon Capture Project

SASKATOON, Saskatchewan, April 26, 2011 /PRNewswire/ -- The Government of Saskatchewan has approved construction of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project - among the first commercial-scale carbon capture and storage facilities in the world.

The $1.24 billion project will transform an aging generating unit at Boundary Dam Power Station near Estevan into a producer of reliable, clean electricity while reducing greenhouse gas emissions by approximately one million tonnes per year - the equivalent of taking more than 250,000 vehicles off Saskatchewan roads each year - in addition to capturing carbon dioxide (CO2) for enhanced oil recovery.

"SaskPower and its private-sector partners are leading the world in the development of a technology that will help to address climate change while ensuring that we can continue to use coal as an energy source for many years to come," Minister responsible for SaskPower Rob Norris said.

Norris also thanked the federal government for providing $240 million to assist in the development of the project.

"Saskatchewan has been at the forefront of innovation in the energy sector for years," Norris said. "Thanks to collaboration with Ottawa and private-sector partners, this SaskPower project builds upon our pioneering tradition."

According to Norris, the Boundary Dam project demonstrates SaskPower's commitment to the deployment of green technology as the company reinvests in infrastructure and expands its power production capacity.

"This project will forge an environmentally sustainable path for the production of coal-fired electricity in Saskatchewan," Norris said. "By proceeding with the carbon capture project at Boundary Dam, while continuing to add wind power and investigating other renewable energy options such as biomass, SaskPower is helping to build a greener future for Saskatchewan."

For SaskPower President Robert Watson, it's noteworthy the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project will provide a major economic stimulus for the Estevan area, in addition to benefits for the rest of the province.

"This will be one of the largest construction projects in the province's history, creating hundreds of jobs and substantial business for companies in the province," Watson said. "In particular, the continued operation of the Boundary Dam and Shand power stations, as well as related businesses servicing the coal industry, will provide long-term benefits to the Estevan region. The petroleum industry will also be a major beneficiary as it will use CO2 captured at Boundary Dam to extract oil from mature fields."

SaskPower has chosen SNC Lavalin, one of the leading engineering and construction companies in the world, to oversee detailed engineering, procurement and construction activities at the Boundary Dam project.

Cansolv, a wholly owned subsidiary of Shell Global Solutions, will supply the carbon capture process. Hitachi will supply a state-of-the-art steam turbine - the first in the world designed to fully integrate a coal-fired power plant with carbon capture technology.

Construction on the project will begin immediately, with operations commencing in 2014. The new generating unit at Boundary Dam will have the capacity to generate 110 megawatts (MW) of electricity.

In addition to capturing CO2 for enhanced oil recovery operations, the Boundary Dam project will also capture sulfur dioxide (SO2) to be used in the production of sulphuric acid.

Boundary Dam Power Station is SaskPower's largest generating facility, with six units and a combined generating capacity of 824 MW. The company's three coal-fired power plants account for approximately 50 per cent of its generating capacity of 3,513 MW. SaskPower has a total available generating capacity of 3,982 when the production of independent power producers is taken into account.

The Boundary Dam Integrated Carbon Capture and Storage Demonstration Project is part of a capital program that will see billions of dollars invested in SaskPower's power production and transmission and distribution systems over the next decade.

Quotes

"Saskatchewan has been at the forefront of innovation in the energy sector for years,"

"SaskPower and its private-sector partners are leading the world in the development of a technology that will help to address climate change while ensuring that we can continue to use coal as an energy source for many years to come,"

James Parker, SaskPower

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    For further information:

    James Parker, SaskPower
    Phone: +1(306)566-3167
    Cell: +1(306)536-2886
    email: jparker@saskpower.com