PARTNERSHIP FOR SASKPOWER'S CLEAN COAL PROJECT ANNOUNCED

SaskPower, Babcock & Wilcox Canada (B&W) and Air Liquide have come to an agreement to jointly develop carbon dioxide (CO2) separation technology as the core process for SaskPower's Clean Coal Project.

The technology, called Oxyfuel, nearly eliminates emissions of combustion by-products, including greenhouse gas emissions.

"The type of innovation displayed by all partners in this project is key to building a green and prosperous future for our province," Premier Lorne Calvert said. "This project will enhance the quality of life for all Saskatchewan residents. The environmental and economic implications of the project extend beyond our borders, to the national and international stages."

SaskPower is currently examining the feasibility of designing and implementing a 300-megawatt clean coal plant that would capture about 8,000 tonnes of CO2 a day. "This may be the world's first near zero emissions pulverized coal unit," Minister responsible for SaskPower John Nilson said. "This unit would help meet emerging regulatory requirements while adding much needed baseload generating capacity while effectively using our 300-year supply of low-cost lignite coal."

"Developing partnerships will be key to the success of our Clean Coal Project," SaskPower president and CEO Pat Youzwa said. "The agreements with B&W and Air Liquide build on the design supply partnership with B&W announced earlier, and with Marubeni Canada and Hitachi for the turbine generator set – which are considered the basic building blocks for a thermal generating station."

"We are very pleased to be working on this SaskPower-led coalition, in which collaboration, cooperation and commitment are the guiding principles," Babcock & Wilcox Company vice president and chief technology officer Don Langley said.

"Addressing climate change means preventing the release of CO2 emissions into the atmosphere by coal-fired power plants," Air Liquide Group executive vice president Pierre Dufour said. "SaskPower is to be commended for having the vision and will to show the way."

B&W serves North American electric utility and industrial markets and the global nuclear utility market, with manufacturing facilities in Mellville and Cambridge, Ontario. More information on the Babcock & Wilcox Company is available at www.babcock.com.

Present in 72 countries, Air Liquide is the world leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies.

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.

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For More Information, Contact:

Larry Christie SaskPower Regina Phone: (306) 566-3167 Cell: (306) 536-2886