Why is SaskPower undertaking this project?

In the coming years decisions concerning the refurbishment or replacement of a substantial portion of our generating fleet will be required. For the short term, our Green Power Portfolio, which consists of the 150 MW Centennial Wind Power Facility; 40 MW run-of-the-river hydro; and 45 MW Environmentally Preferred Power (EPP) solicitation are expected to meet needs for new supply until 2010.

To have the necessary supply available to meet the generation needs for Saskatchewan in the long term (beyond 2014) we are currently pursuing a number of options, including clean coal. Advanced clean coal is an attractive option for SaskPower due to the cost efficiency of the fuel and its abundant supply in Saskatchewan.

What makes this project different from other "clean coal" initiatives?

The SaskPower Clean Coal™ Project will extend the corporation's pulverized coal technology expertise with the newly developed OxyFuel™ process or post-combustion clean up technologies. The result - capture of over 90% of carbon dioxide (CO2) as well as capture and control of sulphur dioxide, nitrogen oxides, mercury and particulate matter leading to near zero emission status. The CO2 will be used for enhanced oil recovery or sequestered in deep saline aquifers.

Does carbon storage and enhanced oil recovery work?

Yes. One of the world's first industrial scale projects is Norway's Sleipner Gas Field in the North Sea. Approximately 1 million tonnes per year of compressed liquid CO2 is injected into saline aquifers about one kilometre below the sea bed. In addition, a four-year study by Saskatchewan's Petroleum Technology Research Centre and a team of international researchers successfully monitored the injection of about five million tonnes of CO2 into the Weyburn Oil Field.

What is OxyFuel™?

The OxyFuel™ process involves removing nitrogen from all of the combustion air in order to operate the boiler in the absence of nitrogen. By using this process, gases leaving the boiler are relatively easy to purify, compress and deliver for enhanced oil recovery and geological sequestration. The technology nearly eliminates emissions of combustion by-products, including greenhouse gas emissions.

Why did SaskPower choose OxyFuel™ as the core process for this project?

SaskPower thoroughly examined and researched both the OxyFuel™ process and the post-combustion clean-up processes for this project. Based on the current state of both technologies, and project-specific parameters, the OxyFuel™ process is expected to provide the best environmental performance and lowest cost.

Why doesn't SaskPower pursue "proven" technologies?

When it comes to coal combustion and the effective capture and storage of CO2, there is no proven technology. SaskPower's Clean Coal™ Project is the first of its kind in the world.

Why doesn't SaskPower develop more renewable energy, like wind?

Wind or solar generation will never be able to provide all the electricity required by SaskPower's customers. Simply put, we cannot count on the wind to blow, or the sun to shine, all day, every day. Since the technology to store electricity generated by these renewable sources does not exist in a utility-grade format, if there was no wind or sun on any particular day, this approach would leave us without electricity. The advantage of fossil fuel electrical generation is that we have complete control over how much electricity we produce, and when we produce it - in response to the demand from our customers.

How much will this cost?

The estimated project cost is $1.5 billion, to be funded primarily by SaskPower along with potential government and industry support. Revenue earned from the sale of CO2 recovered as a result of this project will also help to offset project costs.

Is it certain that the project will proceed?

Because SaskPower is at the forefront of this technology, it has assembled an expert team to establish process criteria, project costs and expected production costs. A full risk assessment will be included in the initial feasibility work. Based on this work, the team will submit a project proposal, along with other feasible baseload options, for SaskPower's consideration. Supply options will be chosen that have acceptable service quality, are financially and environmentally responsible and socially acceptable.