Released on February 27, 2008
New funding for Saskatchewan announced in yesterday's federal budget means SaskPower can proceed with plans to develop one of the first and largest clean coal/carbon capture demonstration projects in the world.
The 2008 federal budget includes $240 million in new federal funding for a major carbon capture project in Saskatchewan.
"This is a good day for Saskatchewan - for our economy and the environment," Crown Corporations Minister Ken Cheveldayoff said. "Premier Wall has been working with Prime Minister Harper to move this important environmental project forward, and yesterday's federal funding announcement means that major planning work can begin."
The proposed SaskPower demonstration project is a seven-year, $1.4 billion dollar government-industry partnership that rebuilds and then re-powers a major coal-fired power generation unit at Boundary Dam. SaskPower's share of the project would be approximately $758 million.
SaskPower's proposed demonstration project would produce 100 megawatts (MW) of clean, base load power while reducing SaskPower's greenhouse gas emissions by about one million tonnes per year. The carbon dioxide captured by the project would be used in enhanced oil recovery.
SaskPower has been assessing the viability of a major carbon capture project for some months but concluded the federal government needed to come to the table with significant financial support to make further progress possible.
SaskPower recently cancelled plans for construction of a 300 MW near-zero emissions pulverized coal unit because the estimated project cost of $3.8 billion made the project economically unviable.
"We are encouraged by yesterday's significant financial commitment from the federal government," Cheveldayoff said. "The successful demonstration of carbon capture technology at SaskPower will lead to cleaner air for Saskatchewan families and a more secure energy future for our province."
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For more information, contact:
Larry Christie
SaskPower
Regina
Phone: 306-566-3167