News Release - July 6, 2006
SASKATCHEWAN-BASED PARTNERSHIP DEVELOPING WORLD-LEADING CLEAN COAL TECHNOLOGY
Hitachi Ltd., Marubeni Canada Ltd. and SaskPower officially announced a Memorandum of Understanding (MOU) today that will play a major role in advancing the corporation's feasibility work on a clean coal power plant. The agreement will provide design and engineering for a steam turbine generator and related systems for the world's first near-zero emissions pulverized coal plant of this scale.
The resulting operational and economic data will assist SaskPower in assessing whether to proceed to construction phase on a new facility, which is expected to greatly reduce greenhouse gas emissions by capturing at least 90 per cent of carbon dioxide (CO2) emissions. CO2 recovered from the clean coal power plant could be sold for enhanced oil recovery operations in southeast Saskatchewan or sequestered in deep saline aquifers.
"From the Clean Coal Project to the recently completed Centennial Wind Power Facility, SaskPower continues to demonstrate its willingness to aggressively pursue energy solutions that are both environmentally and economically beneficial for the province," Minister responsible for SaskPower John Nilson said. "The 35-year working relationship between SaskPower, Hitachi and Marubeni continues to pay dividends through the energizing of Saskatchewan's economy on many levels."
The SaskPower Clean Coal Project team is examining the viability of a $1.5 billion, 300-megawatt clean coal plant that would capture about 8,000 tonnes of CO2 a day. It would allow the corporation to meet emerging regulatory requirements while adding much-needed base-load generating capacity that continues to take advantage of Saskatchewan's 300-year supply of low-cost lignite coal.
With approximately two-thirds of Saskatchewan's electricity generated through coal, SaskPower is continually working to reduce emissions. Significant gains have been made in controlling particulate matter, sulphur dioxide (SO2), nitrogen oxides (NOX) and mercury. CO2 – thought to be the primary contributor to global warming – remains one of the most significant challenges for electrical utilities around the globe.
"The Clean Coal Project is allowing SaskPower to build upon its long history of ingenuity in supplying safe, reliable, cost-effect and environmentally responsible electricity to our customers," SaskPower President and Chief Executive Officer Pat Youzwa said. "We will carefully weigh the merits of a clean coal plant along with other potential supply options as we look to replace or refurbish our aging generation fleet through the next 20 to 30 years."
The Poplar River Power Station near Coronach and Shand Power Station near Estevan are the two potential sites for the location of a new clean coal power plant. It is anticipated a decision to proceed will be made by mid-2007, following a review of technical, regulatory, environmental and economic considerations.
SaskPower is the principal supplier of electricity in Saskatchewan, serving more than 441,000 customers. The Corporation operates with a total available capacity of approximately 3,655 megawatts, supplying customers through more than 154,000 kilometres of transmission and distribution lines. The focus of recent additions to our system is on environmentally sustainable and renewable energy sources. More information on SaskPower's clean coal initiative is available online at www.saskpower.com.
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