Saskatchewan has approved a $1.24-billion project to build one of the world’s first commercial-scale, clean-coal power plants, with plans to capture the carbon dioxide before it goes into the atmosphere and use it to recover more crude from nearby oil fields.
Backed with $240-million from the federal government, SaskPower, the provincially owned utility, will rebuild an aging coal-fired unit at its Boundary Dam site in southern Saskatchewan and capture the CO2 from flue gas using solvents.
The decision to proceed is a major step forward in Canada’s strategy of pursuing carbon capture and storage (CCS) to reduce greenhouse gas emissions from power plants and oil sands facilities. While many environmental groups oppose clean-coal technology, others see it as a critical technology that will help Canada – and coal-dependent countries like China and the United States – meet their emission reduction targets.
While CCS technology may help reduce greenhouse gases in the power sector, it has limited potential in the oil industry, which is facing a growing backlash in the United States and Europe over its heavy emissions of greenhouse gases. Two projects in Alberta propose to capture CO2 from upgraders near Edmonton, but no company is proposing to deploy it at the mines or in-situ production sites due to its prohibitive cost.
As well, both the power and oil industry face major questions about the technology, including the lack of regulations governing the injection of CO2 underground, and skepticism about whether it will remain trapped.
The biggest hurdle to wide-scale adoption is the price tag. It can cost at least $80 a tonne to remove and sequester the carbon dioxide at power plants, and even more when the technology is used at upgraders. In the absence of more onerous carbon prices or regulations, companies have little incentive to spend the money, unless they are heavily subsidized.
But SaskPower president Robert Watson said that, with the federal contribution and the revenue from the CO2 sale, the cost per kilowatt hour of the electricity will be comparable to the new natural-gas-fired plant.
The Saskatchewan unit – one of six at the site – will generate 110 megawatts of electricity and yield some one million tonnes a year of CO2, which will be sold to oil companies. SaskPower said construction will begin immediately, with first the power expected in 2014.
Backed with $240-million from the federal government, SaskPower, the provincially owned utility, will rebuild an aging coal-fired unit at its Boundary Dam site in southern Saskatchewan and capture the CO2 from flue gas using solvents.
The decision to proceed is a major step forward in Canada’s strategy of pursuing carbon capture and storage (CCS) to reduce greenhouse gas emissions from power plants and oil sands facilities. While many environmental groups oppose clean-coal technology, others see it as a critical technology that will help Canada – and coal-dependent countries like China and the United States – meet their emission reduction targets.
While CCS technology may help reduce greenhouse gases in the power sector, it has limited potential in the oil industry, which is facing a growing backlash in the United States and Europe over its heavy emissions of greenhouse gases. Two projects in Alberta propose to capture CO2 from upgraders near Edmonton, but no company is proposing to deploy it at the mines or in-situ production sites due to its prohibitive cost.
As well, both the power and oil industry face major questions about the technology, including the lack of regulations governing the injection of CO2 underground, and skepticism about whether it will remain trapped.
The biggest hurdle to wide-scale adoption is the price tag. It can cost at least $80 a tonne to remove and sequester the carbon dioxide at power plants, and even more when the technology is used at upgraders. In the absence of more onerous carbon prices or regulations, companies have little incentive to spend the money, unless they are heavily subsidized.
But SaskPower president Robert Watson said that, with the federal contribution and the revenue from the CO2 sale, the cost per kilowatt hour of the electricity will be comparable to the new natural-gas-fired plant.
The Saskatchewan unit – one of six at the site – will generate 110 megawatts of electricity and yield some one million tonnes a year of CO2, which will be sold to oil companies. SaskPower said construction will begin immediately, with first the power expected in 2014.