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SASKPOWER SELECTS CARBON CAPTURE TECHNOLOGY FOR BOUNDARY DAM PROJECT

Released on March 3, 2010

SaskPower has chosen SNC Lavalin-Cansolv to provide the carbon dioxide (CO2) capture system for the Boundary Dam Integrated Carbon Capture and Sequestration Demonstration Project.

SNC Lavalin-Cansolv's proposal was selected after a rigorous evaluation of three proposals shortlisted by SaskPower in February 2009. The evaluation was undertaken by SaskPower and an independent consultant, Stantec Engineering.

Should it proceed, the carbon capture and sequestration (CCS) project would transform an aging unit at Boundary Dam Power Station near Estevan into a reliable, long-term producer of 115 megawatts of clean baseload electricity, while enhancing provincial oil production and reducing greenhouse gas emissions.

"SaskPower determined that SNC Lavalin-Cansolv was best able to deliver a carbon capture system with the lowest cost and acceptable risk, on time and on budget," Minister responsible for SaskPower Bill Boyd said.

The two companies involved in the partnership bring a significant amount of experience and skill to this project. With the innovative technology developed by Cansolv and the project management prowess of SNC Lavalin, SaskPower can take the next step in developing an innovative project that would ensure Saskatchewan has a reliable, affordable and clean supply of electricity for many years to come.

"The Government of Canada is pleased to be a partner in this project with a $240-million investment that will advance Canada's leadership in CCS technology, creating high-quality jobs for Canadians and helping to protect the environment," said David Anderson, Member of Parliament for Cypress Hills-Grasslands.

SaskPower will make a final decision on whether to proceed with the Boundary Dam Integrated Carbon Capture and Sequestration Demonstration Project later this year. There remains important work to do in the areas of finalizing project cost estimates, securing customers for the captured CO2, and making an assessment of the timing and extent of CO2 emissions regulations.

SNC Lavalin is one of the leading engineering and construction companies in the world, with more than 20,000 employees and annual gross revenues exceeding $5 billion. The company has long experience in the power industry, which includes owning and operating generation and transmission facilities. SNC Lavalin will oversee the detailed engineering, procurement and construction activities for the Boundary Dam project.

Cansolv, a wholly-owned subsidiary of Shell Global Solutions, will supply the carbon capture process design for the project. Cansolv has developed an innovative system of capturing sulphur dioxide at coal-fired power plants, which has been adopted by three facilities in China.

If the business case indicates that the project should proceed, this technology would be used to meet two requirements of the demonstration project - the capture of both carbon dioxide and sulphur dioxide. A key aspect of this unique system is the recovery of waste energy between the two processes, which will reduce the operating cost of the project.

Plans call for the carbon dioxide captured at Boundary Dam to be sold to the oil and gas industry for enhanced oil recovery. The system also has the potential to produce a marketable byproduct - sulphuric acid.

"The Cansolv system would enable SaskPower to produce more electricity at Boundary Dam's Unit 3 than first projected when the project was conceived, and at a lower cost," SaskPower Integrated Carbon Capture & Sequestration vice-president Mike Monea said. "The original estimate for power production was 100 megawatts, but this has now risen to 115 megawatts. The efficiency of the system would assist in our efforts to ensure Saskatchewan residents have access to electricity that is both clean and affordable."

SNC Lavalin-Cansolv will begin its work immediately and will be paid for work completed if the project does not proceed.

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For more information, contact:

Paul Spasoff
SaskPower
Regina
Phone: 306-566-3179
Email: pspasoff@saskpower.com

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